TCRAP_Public/061013.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Friday, October 13, 2006, Vol. 9, No. 204

                            Headlines

A U S T R A L I A

BURNS PHILP: Rank Group Offer Period Extended to November 3
CREDIT SUISSE: Members' Final Meeting Slated for October 19
CREDIT SUISSE DISCOUNT: Final Meeting Scheduled on October 19
CREDIT SUISSE FINANCIAL: Members to Meet on October 19
CREDIT SUISSE PACIFIC: Members to Receive Wind-Up Report

CREDIT SUISSE REGISTERED: Members' Final Meeting Set on Oct. 19
CREDIT SUISSE RESTRUCTURING: Members to Hold Final Meeting
CSFB AUSTRALIA: Liquidator to Present Wind-Up Report
ELAN TECHNOLOGY: To Declare First and Final Dividend on Oct. 17
FIMISTER PTY: Members Opt for Voluntary Wind-Up

HENLEY LODGE: Enters Wind-Up Proceedings
HLB (AUSTRALIA): Final Meeting Slated for October 19
HOME OF BRIDES: Creditors Must Prove Debts by October 24
INDUSTRIAL TRADE: To Declare First Priority Dividend on Oct. 20
L K WINES: Faces Wind-Up Proceedings

OMEGA AVIATION: Prepares to Declare Priority Dividend on Oct. 30
PLT ENGINEERING: To Distribute First and Final Dividend
PSU HOLDINGS: To Declare First Dividend on October 25
RICAND PTY: Inability to Pay Debts Prompts Wind-Up
RIVET GROUP: Members Decide to Wind Up Operations

SALT INVESTMENTS NO2: Sole Member Resolve to Wind-Up Operations
SCC 546: Commences Wind-Up Proceedings
SCC 620: Members Opt to Wind Up Operations
SCC 737: Members Resolve to Close Business
SCW 165: Members Pass Resolution to Wind Up Operations

SMART LANDSCAPES: Members Agree on Voluntary Liquidation
SOUTHCORP WINES: Commences Wind-Up of Operations
STEINER HOLDINGS: Members Agree to Liquidate Business
SUN CM PTY: Will Declare Final Dividend on November 6
TEMPLAR CORPORATION: Courts Order Wind-Up of Business

TERRA ENTERPRISES: Creditors to Prove Claims on October 31
WYCHWODE INVESTMENTS: Courts Issue Wind-Up Order


C H I N A   &   H O N G  K O N G

ATOLL EQUITY: Members to Meet on November 10
BALLY TOTAL: Moody's Assigns Loss-Given-Default Ratings
BIO-RAD LABORATORIES: Moody's Assigns Loss-Given-Default Ratings
BIOPHARM GLOBAL: Members' Final Meeting Fixed on November 6
CHEER LONG: Falls into Wind-Up

DADE BEHRING: Moody's Confirms Ba1 Corporate Family Rating
FIRST FORTRESS: Creditors' Proofs of Claim Due on November 6
FORTIS INVESTMENT: Members' Meeting Slated for November 6
INVERNESS MEDICAL: Moody's Confirms B3 Corporate Family Rating
JIANGXI COPPER: To Take Part in Canada Mine Development

KELLY CONSTRUCTION: Court Favors Wind-Up
KUKAN INTERIORS: Creditors to Prove Claims on November 6
KWONG YUEN: Intends to Declare Dividend
NEW ZEALAND FIRE: Court Appoints Liquidators and Inspectors
OCEAN JET: Court Names Joint Liquidators

PACIFIC SECURITIES: Fitch Assigns Individual D/E Rating
PALMERSTON CONFECTIONERY: Members & Creditors to Meet on Nov. 7
PETROLEOS DE VENEZUELA: Cuts Back Oil Production to Stem Prices
PETROLEOS DE VENEZUELA: Spends More on Social Programs
SECURE COMPUTING: Moody's Assigns Loss-Given-Default Rating

SHANGHAI OFFSHORE: Names Liquidators and Committee of Inspection
TECHANCES DEVELOPMENT: First Meetings Scheduled on October 19
TECHNOCITY INTERNATIONAL: Final Members' Meeting Set on Nov. 7
UGS CORP: Moody's Assigns Loss-Given-Default Rating
YING KONG: Creditors Must Prove Debts by November 5

YIP FUNG: Court Issues Wind-Up Order


I N D I A

EMCO LTD: Allocates 3,00,000 Equity Shares to Director S. Jain
FEDERAL BANK: To Convert Defunct FBFS to Marketing Arm
FEDERAL BANK: To Find Bank for Acquisition This Year
FEDERAL BANK: BoD To Meet on Oct. 20 to Consider 2nd Qtr Results
* Blue Chips Lead Market Recovery, CRISIL Observes


I N D O N E S I A

ALCATEL SA: Signs Converge Network Project with Golden Telecom
ALCATEL SA: Inks EUR25 Million Next-Generation Network Contract
ANIXTER INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating
ANIXTER INT'L: Settling Income Tax Liabilities with the IRS
AVNET INC: Awaits NYSDEC Final Approval to N.Y. Remediation Plan

BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch
BEARINGPOINT: Moody's Cuts Ratings on US$450 Million Bonds to B3
CANWEST MEDIAWORKS: Selling Two Radio Stations for US$15 Million
CORUS GROUP: Tata Steel to Launch a GBP5-Bln Takeover Bid
DIRECTED ELECTRONICS: Omega's Patent Violation Suit in Discovery

DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings
INCO LTD: CVRD Obtains European Clearance for Inco Offer
INCO LTD: Union Steelworkers Ratify Agreement With Voisey's Bay
GNC CORP: Reports Strong Same-Store Sales for Third Quarter 2006
MARSH & MCLENNAN: CEO Responds to Putnam Purchase Inquiries


J A P A N

ADVANCED MEDICAL: Moody's Assigns Loss-Given-Default Ratings
AMAZON.COM: Moody's Assigns Loss-Given-Default Ratings
BCBG MAX: Moody's Assigns Loss-Given-Default Ratings
BRADLEY PHARMA: Costa Brava Seeks Support for Board Nominees
JDA SOFTWARE: Moody's Assigns Loss-Given-Default Rating

MILLIPORE CORPORATION: Moody's Assigns Loss-Given-Default Rtgs.
NUANCE COMMS: Moody's Assigns Loss-Given-Default Rating
SHAW GROUP: Prices JPY128.98 Billion Limited-Recourse Bonds
SOFTBANK CORP: S&P Affirms BB- Rating on EUR500-Million Notes
SOFTBANK CORP: Announces Terms For Issue of Senior Notes

SOFTBANK MOBILE: Says Mobile Phone Users Rise 23,400 in Sept.
SUMITOMO MITSUI BANKING: Parent Cancels JPY195B Pref. Stock
SUMITOMO REALTY: Profit More Than Doubles Year Ending March
TAIHEIYO CEMENT: Posted Net Income of JPY616M for First Qtr
TAIHEIYO CEMENT: Targest JPY23 Billion for Fiscal Year 2007

TOCHIGI BANK: Posts JPY4-Billion Income for Full Year 2005-2006


K O R E A

CONMED CORPORATION: Moody's Assigns Loss-Given-Default Ratings
HYNIX SEMICONDUCTOR: Completes Construction of US$2-Bil. Plant
WOORI BANK: Most Profitable Lender in 2007, President Says


M A L A Y S I A

AKTIF LIFESTYLE: Appeals Committee to Rule on Extension Request
CYGAL BERHAD: Given Five Days to Show Cause Over Delisting Issue
LITYAN HOLDINGS: Appeal Defers Delisting to November 23, 2006
PAN MALAYSIA CAPITAL: Regularizes Financial Condition
PAN MALAYSIA HOLDINGS: Regularizes Financial Conditions


N E W   Z E A L A N D

AIR NEW ZEALAND: Airport Services Division Jobs at Risk
AM PM CALLING: Court Appoints Joint Liquidators
ARCHEFECTS LTD: Creditors' Proofs of Debt Due on October 16
CLINTON TAXATION: Appoints Joint and Several Liquidators
DSN HOLDINGS: Creditors' Proofs of Claim Due on October 31

HOWLING LTD: Creditors Must Prove Debts by December 11
INFINITY BAR: Creditors Must Prove Debts by October 16
MOUNTAIN ROAD: Creditors' Proofs of Debt Due on October 20
PILCHERS WATERPROOFING: Creditors' Proofs of Claim Due Oct. 20
RAMJET CONTRACTORS: Creditors' Proofs of Claim Due on Dec. 18

* New Zealand Insolvency Practitioners Rules Up for Discussion


P H I L I P P I N E S

METROPOLITAN BANK: To Sell 173.62 Million Primary Shares
METROPOLITAN BANK: Grants US$40 Million Term Loan to IMI
RIZAL COMMERCIAL BANKING: Fitch Gives B- Rating to Hybrid Issue
SECURITY BANK: BSP Approves Cash Dividend Declaration
STENIEL MANUFACTURING: Chinatrust Offer was Exploratory

* ING Bank Expects 2006 Inflation to Hit 6.5%


S I N G A P O R E

AAR CORP: Settlement Amount For Mich. Plant Violations Pending
ADVANCED MICRO: Planned ATI Merger Gets Clearance in Taiwan
SERENA SOFTWARE: Moody's Assigns Loss-Given-Default Rating
SYNIVERSE TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg.
TARGUS GROUP: S&P Affirms 'B' Corporate Credit Rating

TELCORDIA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg.


T H A I L A N D

KASIKORN BANK: Expects Drop in Bad Loans by Year End
KRUNG THAI: Former Head to Receive Verdict Next Month
TANAYONG PCL: Issues 4.2 Billion Shares for Capital Increase


* Large Companies With Insolvent Balance Sheets

     - - - - - - - -

=================
A U S T R A L I A
=================

BURNS PHILP: Rank Group Offer Period Extended to November 3
-----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
October 3, 2006, Rank Group Limited extended its offer period
for shareholders to submit their acceptances to October 20,
2006, at 7:00 p.m.

The TCR-AP previously reported that the Foreign Investment
Review Board in Australia and the Overseas Investment Office in
New Zealand have approved the proposed offer of Burns Philp &
Company Limited's major shareholder, Rank Group, for all of
Burns Philp's shares it does not already hold.

In an update, Rank Group advises the Australian Stock Exchange
that it has further extended its offer period.  Rank Group's
offer is now extended to close November 3, 2006, at 7:00 p.m.
(Sydney Time).

Pursuant to the Corporations Act 2001, the date for giving
notice of the status of the conditions of the Offer is
October 26, 2006.

Rank Group explains that the extension allows sufficient time
for the remaining shareholders to accept since a significant
number of shareholders have accepted the Offer.

Rank Group assures the shareholders that the offer price of
AU$1.10 will not be increased.

Rank Group also notes that if it does not reach a 90% relevant
interest in Burns Philp, the offer will lapse.

As of October 12, 2006, Rank Group notes that:

   (a) it has not freed the Offer from any of the conditions;

   (b) the Offer has been satisfied with respect to the Foreign
       Investment and Overseas Investment's approval; and

   (c) none of the other conditions to the Offer has been
       fulfilled.

Questions regarding the takeover offer should be directed to the
Rank Offer Information Line:

   * 1300-657-039 -- for callers within Australia,

   * 0800-555-039 -- for callers within New Zealand, or

   * +613-9415-4353 -- for callers from outside Australia and
                       New Zealand

                        About Burns Philp

Burns Philp & Company Limited -- http://www.burnsphilp.com/--  
is an Australian based company involved in the production and
distribution of food ingredients and consumer branded food,
beverage and related products.  The Group operates
internationally with products including snack foods, breakfast
cereals and meal components.

Burns Philp has a 20% interest in Goodman Fielder Limited.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Aug. 24, 2006, that Standard & Poor's Ratings Services placed
its 'BB-' long-term corporate credit rating on Burns Philp on
CreditWatch with negative implications after the company
announced that its major shareholder, Rank Group Ltd., proposed
to make an offer for all Burns Philp shares that it does not
already hold.  Rank Group currently owns 57.6% of Burns Philp.


CREDIT SUISSE: Members' Final Meeting Slated for October 19
-----------------------------------------------------------
A final meeting will be held for the members of Credit Suisse
First Boston Australia Stockbrokers Ltd, on October 19, 2006, at
12:30 p.m.

During the meeting, Liquidators Hutchison and Gibbons will
report the company's wind-up proceedings and property disposal
exercises.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


CREDIT SUISSE DISCOUNT: Final Meeting Scheduled on October 19
-------------------------------------------------------------
The members of Credit Suisse First Boston Australia Discount
Ltd, which is in liquidation, will hold their final meeting on
October 19, 2006, at 9:30 a.m.

At the meeting, Liquidators Hutchison and Gibbons will show the
accounts on the company's wind-up and property disposal
exercises.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


CREDIT SUISSE FINANCIAL: Members to Meet on October 19
------------------------------------------------------
A final meeting of the members of Credit Suisse First Boston
Australia Financial Products Ltd, which is in liquidation, will
be held on October 19, 2006, at 11:30 a.m.

At the meeting, Liquidators Hutchison and Gibbons will report on
the final accounts of the wind-up proceedings.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


CREDIT SUISSE PACIFIC: Members to Receive Wind-Up Report
--------------------------------------------------------
Members of Credit Suisse First Boston Pacific Capital Markets
Ltd, which is in liquidation, will hold a final meeting on
October 19, 2006, at 11:00 a.m.

Liquidators Hutchison and Gibbons will present an account on the
company's wind-up proceedings and property disposal exercises.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


CREDIT SUISSE REGISTERED: Members' Final Meeting Set on Oct. 19
---------------------------------------------------------------
A final meeting will be held for the members of Credit Suisse
First Boston Australia Registered Traders Pty Ltd on October 19,
2006, at 10:30 a.m.

During the meeting, Liquidators Hutchison and Gibbons will
present the report on the company's wind-up proceedings and
property disposal exercises.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


CREDIT SUISSE RESTRUCTURING: Members to Hold Final Meeting
----------------------------------------------------------
The members of Credit Suisse First Boston Australia
Restructuring No. 2 Pty Ltd will hold a final meeting on
October 19, 2006, at 12:00 p.m., to receive wind-up accounts
from Liquidators Keiran Hutchison and John Gibbons.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


CSFB AUSTRALIA: Liquidator to Present Wind-Up Report
----------------------------------------------------
Members of CSFB Australia Administration Pty Ltd will convene on
October 19, 2006, at 10:00 a.m., to hear the accounts of the
company's wind-up proceedings from Liquidators Keiran Hutchison
and John Gibbons.

According to the Troubled Company Reporter - Asia Pacific, the
Company declared a final dividend to creditors on September 26,
2006.

The Liquidators can be reached at:

         Keiran Hutchison
         John Gibbons
         Ernst & Young
         Level 37 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9248 5864


ELAN TECHNOLOGY: To Declare First and Final Dividend on Oct. 17
---------------------------------------------------------------
Elan Technology Pty Ltd will declare a first and final dividend
for its creditors on October 17, 2006.

Creditors who failed to submit their proofs of claim on
September 26, 2006, are excluded in the dividend distribution.

According to the Troubled Company Reporter - Asia Pacific, the
Company declared its first and final dividend to creditors on
April 26, 2006.

The Liquidator can be reached at:

         Dean R. Mcveigh
         Foremans Business Advisors (Southern) Pty Ltd
         Suite 8, 56-60 Bay Road
         Sandringham, Victoria 3191
         Australia


FIMISTER PTY: Members Opt for Voluntary Wind-Up
-----------------------------------------------
Members of Fimister Pty Ltd met on September 27, 2006, and
decided to voluntarily wind up the company's operations.

In this regard, S. J. Hundy was appointed as liquidator.

The Liquidator can be reached at:

         S. J. Hundy
         Rangott Slaven Hundy
         Level 3, Engineering House
         11 National Circuit, Barton ACT
         Australia


HENLEY LODGE: Enters Wind-Up Proceedings
----------------------------------------
At an extraordinary general meeting held on September 18, 2006,
the members of Henley Lodge Pty Ltd formerly trading as MTR
Building Services resolved to voluntarily wind up the company's
operations.

Stan Traianedes was subsequently appointed liquidator at the
creditors' meeting held that same day.

The Liquidator can be reached at:

         Stan Traianedes
         Hall Chadwick
         Chartered Accountants
         Level 12, 459 Collins Street
         Melbourne, Victoria 3000
         Australia


HLB (AUSTRALIA): Final Meeting Slated for October 19
----------------------------------------------------
The members of HLB (Australia) Pty Ltd will hold a final meeting
on October 19, 2006, at 10:00 a.m.

At the meeting, Liquidators David Clement Pratt and Stephen
Graham Longley will present a report and give explanations on
the company's wind-up proceedings and property disposal
exercises.

The Liquidators can be reached at:

         David Clement Pratt
         Stephen Graham Longley
         PricewaterhouseCoopers
         Freshwater Place, 2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia


HOME OF BRIDES: Creditors Must Prove Debts by October 24
--------------------------------------------------------
Home of Brides Pty Ltd formerly known as Paddington Hill
NewsAgency Pty Ltd will declare the first and final dividend for
its creditors.

Creditors are required to prove their debts by October 24, 2006,
or be excluded from sharing in the distribution.

The Troubled Company Reporter - Asia Pacific reported that on
May 25, 2006, members of the Company decided to wind up the
company's operations due to its inability to pay debts.

The Liquidator can be reached at:

         Daniel Civil
         Rodgers Reidy
         Level 8, 333 George Street
         Sydney, New South Wales 2000
         Australia


INDUSTRIAL TRADE: To Declare First Priority Dividend on Oct. 20
---------------------------------------------------------------
Industrial Trade Supplies Pty Ltd, which is in liquidation, will
declare a first priority dividend to employees on October 20,
2006.

Former employees and other priority creditors who were able to
admit their debts on September 21, 2006, will share in the
dividend distribution.

The Official Liquidator can be reached at:

         I. D. Jessup
         Jessup & Partners
         Level 1, 488 Mulgrave Road
         Earlville, Queensland 4870
         Australia


L K WINES: Faces Wind-Up Proceedings
------------------------------------
At a general meeting on September 27, 2006, members of L K Wines
Pty Ltd decided to voluntarily wind up the company's operations.

In this regard, Anthony Wayne Elkerton was appointed as
liquidator.

The Liquidator can be reached at:

         Anthony Wayne Elkerton
         Pitcher Partners
         Level 3, 60 Castlereagh Street
         Sydney, New South Wales 2000
         Australia


OMEGA AVIATION: Prepares to Declare Priority Dividend on Oct. 30
----------------------------------------------------------------
Omega Aviation Pty Ltd, which is subject to a deed of company
arrangement, will declare the first and final priority dividend
for its creditors on October 30, 2006.

Only those creditors who were able to prove their debts on
September 25, 2006, are included from sharing in the dividend
distribution.

The Joint and Several Deed Administrators can be reached at:

         J. R. Park
         L. S. Mcintosh
         Ramsay Clout
         Chartered Accountants
         Suite 2, 63 The Esplanade
         Maroochydore, Queensland 4558
         Australia
         Telephone:(07) 5479 6411
         Facsimile:(07) 5479 6350


PLT ENGINEERING: To Distribute First and Final Dividend
-------------------------------------------------------
PLT Engineering Pty Ltd will distribute a first and final
dividend for its creditors on October 28, 2006.

Creditors who were unable to prove their claims on September 20,
2006, are excluded from the benefit of the dividend.

According to the Troubled Company Reporter - Asia Pacific, the
Company declared a first and final dividend on June 16, 2006.

The Liquidator can be reached at:

         Adrian Brown
         Ferrier Hodgson
         Level 29, 600 Bourke Street
         Melbourne, Victoria 3000
         Australia


PSU HOLDINGS: To Declare First Dividend on October 25
-----------------------------------------------------
PSU Holdings Pty Ltd, which is subject to a deed of company
arrangement, will declare its first dividend for priority
creditors on October 25, 2006.

Creditors who were unable to prove their debts on October 10,
2006, are excluded from sharing in the dividend distribution.

The Deed Administrator can be reached at:

         Jack James
         KordaMentha
         Level 11, 37 St George Terrace
         Perth, Western Australia 6000
         Australia


RICAND PTY: Inability to Pay Debts Prompts Wind-Up
--------------------------------------------------
On September 18, 2006, members and creditors of Ricand Pty Ltd
passed a special resolution to voluntarily wind up the company's
operations due to its inability to pay debts when they fall due.

Accordingly, Andrew James Heard & Timothy James Clifton were
appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Andrew James Heard
         Timothy James Clifton
         PPB
         Level 10, 26 Flinders Street
         Adelaide, South Australia 5000
         Australia
         Telephone:(08) 8211 7800
         Facsimile:(08) 8211 8922


RIVET GROUP: Members Decide to Wind Up Operations
-------------------------------------------------
On September 27, 2006, members of Rivet Group Pty Ltd decided to
close the company's operations.

Subsequently, Michael Edward Slaven was appointed as liquidator.

The Liquidator can be reached at:

         Michael Edward Slaven
         Rangott Slaven Hundy
         Unit 12, Level 3, Engineering House
         11 National Circuit, Barton ACT 2600
         Australia


SALT INVESTMENTS NO2: Sole Member Resolve to Wind-Up Operations
---------------------------------------------------------------
On September 15, 2006, the sole member of Salt Investments No 2
Pty Ltd resolved to voluntarily wind up the company's operations
and appointed Brian McMaster and Jack James as liquidators.

The Liquidators can be reached at:

         Brian McMaster
         Jack James
         KordaMentha
         Level 11, 35 St Georges Terrace
         Perth, Western Australia
         Australia


SCC 546: Commences Wind-Up Proceedings
--------------------------------------
On September 15, 2006, members of SCC 546 Pty Ltd decided to
voluntarily wind up the company's operations.

The Liquidator can be reached at:

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


SCC 620: Members Opt to Wind Up Operations
------------------------------------------
On September 15, 2006, members of SCC 620 Pty Ltd resolved by
way of special resolution to voluntarily wind up the company's
operations.

The Liquidator can be reached at:

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


SCC 737: Members Resolve to Close Business
------------------------------------------
On September 15, 2006, members of SCC 737 Pty Ltd passed a
special resolution to voluntarily wind up the company's
operations.

The Liquidator can be reached at:

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


SCW 165: Members Pass Resolution to Wind Up Operations
------------------------------------------------------
On September 15, 2006, members of SCW 165 Pty Ltd passed a
special resolution to voluntarily wind up the company's
operations.

The Liquidator can be reached at:

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


SMART LANDSCAPES: Members Agree on Voluntary Liquidation
--------------------------------------------------------
After an extraordinary general meeting on September 25, 2006,
the members of Smart Landscapes Pty Ltd decided to voluntarily
wind up the company's operations.

Consequently, Brent Kijurina was named liquidator at the
creditors' meeting held that same day.

The Liquidator can be reached at:

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


SOUTHCORP WINES: Commences Wind-Up of Operations
------------------------------------------------
On September 15, 2006, members of Southcorp Wines Superannuation
Fund Pty Ltd passed a special resolution to voluntarily wind up
the company's operations.

The Liquidator can be reached at:

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


STEINER HOLDINGS: Members Agree to Liquidate Business
-----------------------------------------------------
On September 20, 2006, members of Steiner Holdings Pty Ltd
resolved to voluntarily liquidate the company's business
operations and appointed Eran Weiner as liquidator.

The Liquidator can be reached at:

         Eran Weiner
         c/o Fulepp & Co
         PO Box 698, Bondi Junction New South Wales 1355
         Australia
         Telephone: 02 9387 3300
         Facsimile: 02 9369 4164


SUN CM PTY: Will Declare Final Dividend on November 6
-----------------------------------------------------
Sun CM Pty Ltd formerly Sunrise Cleaning and Maintenance Pty
Ltd, which is in liquidation, will declare the final dividend
for priority and ordinary unsecured creditors on November 6,
2006.

Creditors who were able to file their proofs of debt on
September 29, 2006, are included in the company's distribution
of dividend.

The Liquidator can be reached at:

         M. G. Mccann
         Grant Thornton
         Level 1, Grant Thornton House
         102 Adelaide Street, Brisbane Queensland 4000
         Australia     
         Telephone:(07) 3222 0200
         Facsimile:(07) 3222 0446


TEMPLAR CORPORATION: Courts Order Wind-Up of Business
-----------------------------------------------------
On September 21, 2006, the Supreme Court of New South Wales
issued an order to wind up Templar Corporation Pty Ltd.  The
next day, the Federal Court of Australia also ordered.

For that reason, Steven Nicols was appointed as liquidator.

The Liquidator can be reached at:

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


TERRA ENTERPRISES: Creditors to Prove Claims on October 31
----------------------------------------------------------
On September 6, 2006, Bryan George Pocock was appointed
liquidator of Terra Enterprises Ltd.

Accordingly, the company's creditors are required to prove their
claims by October 31, 2006, or be excluded from participating in
any distribution the company will make.

The Liquidator can be reached at:

         Bryan George Pocock
         Level Seven, 44 Victoria Street
         (P.O. Box 10-788), Wellington
         Australia
         Telephone:(04) 472 3560
         Facsimile:(04) 472 3564


WYCHWODE INVESTMENTS: Courts Issue Wind-Up Order
------------------------------------------------
On September 21, 2006, the Supreme Court of New South Wales
issued an order to wind up Wychwode Investments Pty Ltd.

On September 22, 2006, the Federal Court of Australia also
issued an order to wind up the company.

Accordingly, Steven Nicols was appointed as liquidator.

The Liquidator can be reached at:

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

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

ATOLL EQUITY: Members to Meet on November 10
--------------------------------------------
Members of Atoll Equity Ventures (Asia Pacific) Ltd will hold a
final general meeting on November 10, 2006, at 10:35 a.m., to
receive Liquidator Gregg Hugh Hutchison's account on the wind-up
proceedings and property disposal exercises.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up process on April 7, 2006.

The Liquidator can be reached at:

         Gregg Hugh Hutchison
         59 Renfield Drive
         Princeton, New Jersey 08540
         U.S.A.


BALLY TOTAL: 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 Consumer Services sector, the rating agency
confirmed its Caa1 Corporate Family Rating for Bally Total
Fitness Holding Corp.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

                                                   
                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100 million
   Secured Revolver
   due 2008               B3       B1     LGD1        8%

   US$136 million
   Secured Term Loan
   due 2009               B3       B1     LGD1        8%

   US$235 million
   10.5% Senior
   Unsecured Notes
   due 2011              Caa1     Caa1    LGD3       48%

   US$300 million
   9.875% Senior
   Subordinated
   Notes due 2007         Ca      Caa3    LGD5       87%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that 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%).  

Bally Total Fitness Holding Corp. --
http://www.Ballyfitness.com/-- is a commercial operator of  
fitness centers, with over 400 facilities located in 29 states,
Mexico, Canada, Korea, the Caribbean, and China under the Bally
Total Fitness, Bally Sports Clubs and Sports Clubs of Canada
brands.


BIO-RAD LABORATORIES: 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, the rating agency confirmed its Ba2 Corporate
Family Rating for Bio-Rad Laboratories Inc.  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
   ----------           -------  -------  ------   ----------
   6.125% Senior
   Unsecured
   Subordinated Notes      Ba3      Ba3     LGD4       67%

   7.5% Senior
   Unsecured Subor.
   Notes                   Ba3      Ba3     LGD4       67%

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%).

Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb) --
http://www.bio-rad.com/-- manufactures and distributes life  
science research products and clinical diagnostics.  Based in
Hercules, California, Bio-Rad serves more than 70,000 research
and industry customers worldwide through a network of more than
30 wholly owned subsidiary offices.  The company has operations
in Australia, Austria, Belgium, Brazil, China, among others.


BIOPHARM GLOBAL: Members' Final Meeting Fixed on November 6
-----------------------------------------------------------
A final general meeting of the members of Biopharm Global (BPG)
Ltd will be conducted on November 6, 2006, at 11:00 a.m., to
receive Liquidator Lau Hak Lap's final accounts on the company's
wind-up proceedings and property disposal activities.

The Liquidator can be reached at:

         Lau Hak Lap
         Units 1001-4 10/F
         China Merchants Steam Navigation Building
         152-155 Connaught Road Central
         Hong Kong


CHEER LONG: Falls into Wind-Up
------------------------------
On September 27, 2006, the High Court of Hong Kong ordered that
Cheer Long Holdings Ltd operations be wound up.

According to the Troubled Company Reporter - Asia Pacific, Leung
Fung Luen Hing filed the wind-up petition against the Company on
July 28, 2006.


DADE BEHRING: Moody's Confirms Ba1 Corporate Family Rating
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba1 Corporate
Family Rating for Dade Behring Inc., and its Ba1 rating on the
company's Senior Unsecured First Lien Revolver due 2010.  
Moody's assigned those debentures an LGD4 rating suggesting
noteholders will experience a 52% 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 Deerfield, Illinois, Dade Behring Holdings Inc.
-- http://www.dadebehring.com/-- engages in the manufacture and  
distribution of diagnostics products and services to clinical
laboratories worldwide, including those in Australia, Austria,
Belgium, Brazil, China, France, Hong Kong, Indonesia, Mexico,
Portugal, Taiwan, among others.


FIRST FORTRESS: Creditors' Proofs of Claim Due on November 6
------------------------------------------------------------
Liquidator Lam Ying Sui require creditors of First Fortress
Technologies Ltd to submit their proofs of claim by November 6,
2006, to be included in the company's distribution.

According to the Troubled Company Reporter - Asia Pacific,
shareholders of the Company appointed Liquidator Sui on
September 28, 2006.

The Liquidator can be reached at:

         Lam Ying Sui
         Room 1004-1005, Allied Kajima Building
         138 Gloucester Road, Wanchai
         Hong Kong


FORTIS INVESTMENT: Members' Meeting Slated for November 6
---------------------------------------------------------
A final meeting of the members of Fortis Investment Management
Asia Ltd will be held on November 6, 2006, at 10:00 a.m.

During the meeting, members will receive Liquidator Suen Pui
Yee's accounts of the company's wind-up and property disposal
exercises.

The Liquidator can be reached at:

         Suen Pui Yee
         8/F, Gloucester Tower
         The Landmark, 11 Pedder Street
         Central, Hong Kong


INVERNESS MEDICAL: Moody's Confirms B3 Corporate Family Rating
--------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its B3 Corporate Family
Rating on Inverness Medical Innovations Inc. and upgraded the
company's Caa3 Rating on Senior Unsecured First Lien Revolver
due 2010 to Caa2.  Moody's assigned those debentures an LGD5
rating suggesting noteholders will experience a 82% 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%).

Based in Waltham, Massachusetts, Inverness Medical Innovations,
Inc. -- http://www.invernessmedical.com/-- makes diagnostic  
products including home pregnancy tests and fertility monitors.
The company also manufactures consumer vitamins and nutritional
products.

The company has offices in Australia, Canada, China, Germany,
Japan, and the United Kingdom, among others.


JIANGXI COPPER: To Take Part in Canada Mine Development
-------------------------------------------------------
Jiangxi Copper Co. Ltd will take part in an investment of US$105
million to develop a copper-gold mine in Canada, Reuters reports
citing a company's senior executive as saying.

According to the executive, the investment, which is awaiting
approval from the Chinese government, would help secure supply
of raw materials for the company's expansion.

"Jiangxi Copper will obtain 50,000 tons of copper in ore from
the mine a year.  We expect the mine could go into production in
three years, as we need resources for more smelting capacities,"
the executive adds.

Reuters recounts that Jiangxi's executive director Wang Chiwei
said last month that the firm would produce as much as 33% more
refined copper, or 600,000 tons, in 2007 on the back of new
capacity, boosting demand for imported concentrate, the raw
material.

To meet this target, Jiangxi's 49% owned Global International
Jiangxi Copper Mining Co. Ltd., agreed to form a joint venture
with bcMetals Corp. to develop a mine at Red Chris in
northwestern British Columbia, Reuters relates.

The Canadian firm now owns the property while Hong Kong-based
Global International will own 75% of the venture.  It will
contribute US$105 million in cash to the venture, which together
with a US$110 million project debt facility -- previously
arranged with Investec Bank Ltd. -- would fund development of
the US$215 million mine, Reuters adds citing bcMetals statement.

Meanwhile, Jiangxi Copper's investment as shareholder in the
Global International joint venture would total US$51.45 million.

Under the agreement, Global International would enter into a
offtake contract for the purchase -- at prevailing prices -- of
all concentrates produced by the Red Chris project during the
mine's life, Reuters says, noting that officials are still
waiting for shareholders to approve the agreement.

Reuters relates that Jiangxi preferred to invest in the mine
through Global International, which was owned 51% by Shanghai
Shenxin Investments Ltd., because the Chinese partner had
experience in overseas metals markets.

"The project is the first mining project for Global
International and Jiangxi Copper," Reuters reveals citing
another Jiangxi official, as saying.

                          *     *     *

Jiangxi Copper is China's largest copper producer.  In 2005, it
produced 422 thousand tons of copper, about 16.8% of the total
national output.  The Company also realized a turnover growth
rate of 25.5% and net profit growth rate of 61.9% in 2005.  
Jiangxi Copper is a constituent of the Xinhua/ FTSE China 200
Index.  As of market close on April 28, 2006, its total market
capitalization and investable capitalization were CNY17.5
billion and CNY3.5 billion respectively.

On July 18, 2006, Xinhua Far East China Ratings has commented
that the likelihood of downward surprises on the issuer rating
for Jiangxi Copper Co., Ltd. was increasing and changed the
Company's rating outlook to negative from stable.  Its issuer
credit rating remains BB+.


KELLY CONSTRUCTION: Court Favors Wind-Up
----------------------------------------
On September 27, 2006, the High Court of Hong Kong issued a
wind-up order against Kelly Construction Engineering Ltd.

As reported by the Troubled Company Reporter - Asia Pacific,
Leung Shiu Ming filed the petition on July 28, 2006.


KUKAN INTERIORS: Creditors to Prove Claims on November 6
--------------------------------------------------------
Liquidator Chan Kai Kit require the creditors of Kukan Interiors
Ltd to submit their proofs of claim by November 6, 2006, or be
excluded from sharing in any distribution the company will make.

The Troubled Company Reporter - Asia Pacific reported that on
September 29, 2006, shareholders of the Company resolved to
voluntarily wind up the company's operations.

The Liquidator can be reached at:

         Chan Kai Kit
         Unit 1602, 16/F
         Malaysia Building
         50 Gloucester Road
         Wanchai, Hong Kong


KWONG YUEN: Intends to Declare Dividend
---------------------------------------
Kwong Yuen Construction Company Ltd, which is in compulsory
liquidation, requires its creditors to prove their debts by
October 27, 2006, in preparation for its dividend declaration.

The Liquidators can be reached at:

         Nicholas Timothy Cornforth Hill
         Fan Wai Kuen
         5/F, Allied Kajima Building
         138 Gloucester Road, Wanchai
         Hong Kong


NEW ZEALAND FIRE: Court Appoints Liquidators and Inspectors
-----------------------------------------------------------
The High Court of Hong Kong on September 12, 2006, appointed Ho
Kwan Yiu, Junius and Ho Wai Fung as joint and several
liquidators of New Zealand Fire Service Engineer Company Ltd.

In addition, members of the Committee of Inspection were also
appointed:

       -- Shui On Building Contractors Ltd;
       -- Sing Lee Fire Engineering Work;
       -- Shun Shing Electric Co. Ltd;
       -- Henry Engineering & Supplies; and
       -- Jumbo Rich Building Supplies Ltd.

The Joint Liquidators can be reached at:

         Ho Kwan Yiu, Junius
         Ho Wai Fung
         K. C. Ho & Fong
         18/F Henley Building 5
         Queen's Road Central
         Hong Kong


OCEAN JET: Court Names Joint Liquidators
----------------------------------------
The High Court of Hong Kong appointed James Wardell and Chan Chi
Yuen on September 14, 2006, as joint and several liquidators of
Ocean Jet Development Ltd.

The Joint Liquidators can be reached at:

         James Wardell
         Chan Chi Yuen
         Room 1601-2, 16/F
         One Hysan Avenue, Causeway Bay
         Hong Kong


PACIFIC SECURITIES: Fitch Assigns Individual D/E Rating
-------------------------------------------------------
Fitch Ratings assigned on October 11, 2006, National ratings to
Taiwan-based Pacific Securities Corporation.  

The ratings are as follows:

    -- National Long-term BBB-(twn);
    -- National Short-term F3(twn);
    -- Individual D/E; and
    -- Support 5.

The Outlook on the ratings is Stable.

PSC's ratings reflect its small market presence as well as weak
balance sheet and profitability.  The ratings also take into
account its satisfactory capitalization and an enhanced risk
management system.

PSC's consecutive years of losses since 2004 were mainly driven
by a combination of trading losses and the poor trading volumes
of the Taiwanese equity market.  The company strived to improve
profitability by promoting its on-line brokerage business and by
increasing research support to its trading department.

Nevertheless, challenges remain for PSC to break even given
intense industry competition.  PSC is actively involved in
trading corporate bonds and reverse repo investments, which may
raise credit risk and liquidity concerns particularly as these
assets are primarily funded by short-term repos.

Following the establishment of a risk control unit and
committee, PSC's risk management displayed a noticeable
improvement especially in risk control.  More advanced
measurements such as VaR (Value at Risk) have also been adopted
to monitor the overall risk exposure more effectively.

While Fitch notes PSC's reported capital adequacy ratio was a
still-satisfactory 281% as at H106, the agency remains concerned
that any further significant losses may erode its capital
position.  A failure to maintain capitalization above 200% could
trigger downward pressure on its ratings.

PSC was established in 1988 after the deregulation of Taiwan's
securities industry. The company experienced a major ownership
reshuffle in June 2004 and a local entrepreneur Alex Ho emerged
to become the key shareholder with a controlling share of 30%.
PSC has brokerage market shares of 0.4% and its core operations
are brokerage and proprietary trading.


PALMERSTON CONFECTIONERY: Members & Creditors to Meet on Nov. 7
---------------------------------------------------------------
Palmerston Confectionery Company Ltd, which is in liquidation,
will hold a meeting for its members and creditors on November 7,
2006, 3:00 p.m., at 35th Floor, One Pacific Place, 88 Queensway,
Hong Kong.

During the meeting, Liquidators Lai Kar Yan Derek and Darach E.
Haughey will present an account regarding the company's wind-up
and property disposal exercises.


PETROLEOS DE VENEZUELA: Cuts Back Oil Production to Stem Prices
---------------------------------------------------------------
Venezuela confirmed that state-oil company Petroleos de
Venezuela SA's daily oil production would be reduced by 50,000
barrels in order to help curb falling oil prices.

The Latin American nation is also encouraging other members of
the Organization of Petroleum Exporting Countries to do the
same.  Nigeria was the first to cut oil output by 120,000
barrels per day.

"Venezuela has formally informed the OPEC secretariat of its
voluntary decision to cut production by 50,000 barrels per day
with effect from Oct. 1, 2006," OPEC spokesman Omar Farouk
Ibrahim told Reuters.

Oil was selling at a peak of US$78.40 but is now falling below
US$60.  This has triggered enough warning bells for Venezuela
and Nigeria to cut output in order to stem the fall.  

But despite its drop, the price of oil -- which has trebled
since 2002 and is still at historically high levels -- remains
of concern to consumer nations, Reuters says.

Reuters says that investors brushed off the news and oil fell
more than US$1.

"People are waiting for evidence that the market is beginning to
tighten or that actual cuts are being instigated, rather than
just talk before prices can be bid up again," Geoff Pyne, a
London-based oil analyst, was quoted by Reuters as saying.  
"There is still plenty of oil around at the moment."

An OPEC official told Reuters that there was no shift in OPEC's
policy.

"There is definitely no agreement -- whether formal or informal
-- within OPEC to cut current production," the unnamed source
said.

Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad. The company has a commercial
office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


PETROLEOS DE VENEZUELA: Spends More on Social Programs
------------------------------------------------------
Petroleos de Venezuela SA, the state-run oil company of
Venezuela, told Bloomberg that its investments on social
programs surpassed its expenses on oil and natural gas
businesses in 2005.

Petroleos de Venezuela said in a statement that it spent about
US$6.9 billion on social programs in 2005.  Investments on its
domestic oil and natural gas operations totaled US$3.9 billion.  
The company's profit for the year was US$6.5 billion.

According to Bloomberg, Petroleos de Venezuela said that the
situation is a continuing a trend that began in 2004.

Alberto Quiros, an oil analyst in Caracas and a former head of
the Venezuelan operations of Royal Dutch Shell Plc, told
Bloomberg, "This is pure craziness, social spending is greater
than investments, greater than profit.  The impact is already
apparent.  Production is falling and there is a lack of
professionalism in the company."

Bloomberg notes that Venezuela's President Hugo Chavez is using
Petroleos de Venezuela to finance the nation's social programs.  
President Chavez is seeking to avoid the mistakes of former
government leaders who neglected social development during past
oil booms.

The lack of investment caused a string of deadly accidents at
Petroleos de Venezuela's refineries and stalled production at
about 2.6 million barrels daily, Bloomberg says, citing the
critics of President Chavez.

Mr. Quiros told Bloomberg, "They aren't investing enough in
their energy operations to maintain, let alone grow output.  To
do that, they need to invest at least US$5 billion to US$6
billion a year."

Petroleos de Venezuela said in a filing with the United States
Securities and Exchange Commission that it invested about
US$4.35 billion on social programs and some US$2.99 billion on
operating assets in 2004.

Petroleos de Venezuela told Bloomberg that 73% of its
investments in 2005 were on exploration and production.

Venezuela's total average production in 2005 was 3.27 million
barrels per day.  Most agencies as well as the Organization of
Petroleum Exporting Countries disputed that figure, Bloomberg
states, citing Petroleos de Venezuela.

Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad. The company has a commercial
office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


SECURE COMPUTING: 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 U.S. Technology Software sectors this week,
the rating agency confirmed its B3 Corporate Family Rating for
Secure Computing Corporation.

Additionally, Moody's revised or held 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$20 Million
   Senior Secured
   Revolving Credit
   Facility due 2012      B2       B2      LGD3       31%

   US$90 Million
   Senior Secured
   First Lien
   due 2013               B2       B2      LGD3       31%

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 San Jose, California, Secure Computing
Corporation -- http://www.securecomputing.com/-- is a provider  
of enterprise security products.  The company has its
international headquarters in Hong Kong, and the United Kingdom.


SHANGHAI OFFSHORE: Names Liquidators and Committee of Inspection
----------------------------------------------------------------
The High Court of Hong Kong on February 6, 2006, appointed Jacky
Chung Wing Muk and Edward Simon Middleton as joint and several
liquidators of Shanghai Offshore Oil Group (HK) Co., Ltd.

Subsequently, China Everbright Holdings Company Ltd, China
Everbright Holdings (Nominee) Ltd, and Everbright Real Estate
Ltd were named members of the Committee of Inspection.

The Joint Liquidators can be reached at:

         Jacky Chung Wing Muk
         Edward Simon Middleton
         27/F, Alexandra House
         16-20 Chater Road, Central
         Hong Kong


TECHANCES DEVELOPMENT: First Meetings Scheduled on October 19
-------------------------------------------------------------
The first meetings of creditors and contributories of Techances
Development Ltd will be held at Room 1037, 10/F, One Grand
Tower, 639 Nathan Road, Kowloon, Hong Kong on October 19, 2006,
at 2:30 p.m. and 3:30 p.m., respectively.

The Troubled Company Reporter - Asia Pacific reported that the
company received a wind-up order from the High Court of Hong
Kong on October 2, 2005.

The Joint Liquidators can be reached at:

         Ng Kwok Wai
         David Nip
         Eric Ng C.P.A. Limited
         Unit A, 14/F, JCG Building
         16 Mongkok Road, Mongkok
         Kowloon, Hong Kong
         Tel: 3582 5933
         Fax: 3188 9669


TECHNOCITY INTERNATIONAL: Final Members' Meeting Set on Nov. 7
--------------------------------------------------------------
Members of Technocity International Ltd, which is in
liquidation, will convene for their final meeting on November 7,
2006, at 10:00 a.m.

At the meeting, Liquidator Julie Siu Shan Edwards will present a
report regarding the company's wind-up and the manner its
properties were disposed of.

The Liquidator can be reached at:

         Julie Siu Shan Edwards
         Suite C, 16/F, On Hing Building
         1-9 On Hing Terrace, Central
         Hong Kong


UGS CORP: 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 U.S. Technology Software sectors this week,
the rating agency confirmed its B2 Corporate Family Rating for
UGS Corporation.

Additionally, Moody's revised or held 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$125 Million
   Senior Secured
   Revolving Credit
   Facility due 2010      B1       Ba2     LGD2       18%

   US$725 Million
   Senior Secured
   First Lien
   due 2011               B1       Ba2     LGD2       18%

   US$550 Million
   Senior Subordinated
   Notes due 2012         B3       B3      LGD4       66%

   US$330 Million
   Senior Unsecured
   Bonds due 2011        Caa1     Caa1     LGD6       92%

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 Plano, Texas, UGS Corp. - http://www.ugs.com--  
is a provider of product lifecycle management software.  The
company has offices in Hong Kong and the United Kingdom.


YING KONG: Creditors Must Prove Debts by November 5
---------------------------------------------------
Joint Liquidators Wong Man Chung Francis and Leung Lok Ming
require creditors of Ying Kong Industrial Group (H.K.) Ltd,
which is in liquidation, to submit their proofs of debts by
November 5, 2006.

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

The Liquidator can be reached at:

         Wong Man Chung Francis
         Leung Lok Ming
         19/F., No. 3 Lockhart Road
         Wanchai, Hong Kong


YIP FUNG: Court Issues Wind-Up Order
------------------------------------
On September 27, 2006, the High Court of Hong Kong issued an
order to wind up Yip Fung Textiles Company Ltd's operations.

The Troubled Company Reporter - Asia Pacific reported that
Elitak Machinery Ltd filed the petition with the Court on
July 26, 2006.


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

EMCO LTD: Allocates 3,00,000 Equity Shares to Director S. Jain
--------------------------------------------------------------
Emco Ltd.'s Preferential Issue Committee of Board of Directors
allotted 3,00,000 equity shares to Promoter and Managing
Director Shailesh Jain during an October 9, 2006 meeting.

The shares, at INR10 each at a premium of INR275 per share, were
issued upon exercise of option attached to warrants previously
allotted to Mr. Jain on preferential allotment basis.

The equity-share allotment was pursuant to a special resolution
passed by members of the company at their Extra-ordinary General
Meeting held on March 29, 2005.

                       About EMCO Ltd.

Headquartered in Jalgaon, India, Emco Ltd. --
http://www.emcoindia.com/-- offers transmission and   
distribution solutions within the power sector in India.
Through its Transformer Division, Emco offers power
transformers, specialized rectifier transformers, furnace
transformers, and locomotive and traction transformers.  Through
its Meters Division, the Company offers metering solutions like
tamper-proof electronic energy meters, automatic meter reading
solutions like drive by, walk by or fixed network, pre-payment
metering solutions and high-end metering like trivector meters.
It also offers energy and revenue management solutions.  Through
its Projects Division, Emco offers turnkey solutions from
concept to commissioning for electrical substation projects.  It
also undertakes entire industrial electrification work from
designing to execution.  Emco offers information technology
solutions for power distribution management.  Through its
International Division, EMCO offers transformers and energy
meters confirming to international specifications.

Credit Analysis and Research Limited downgraded Emco's senior
unsecured debt from A to BB on April 1, 2004.


FEDERAL BANK: To Convert Defunct FBFS to Marketing Arm
------------------------------------------------------
Federal Bank intends to convert its former unit, Federal Bank
Financial Services, into its marketing arm, CRISIL Marketwire
says, citing the Bank's chief financial officer, George John.

FBFS is currently non-operational with the Federal Bank's
surrender of its license in 1999.

Duplication of work led to the surrender of the license, Mr.
John explained.

According to CRISIL Marketwire, Federal Bank had sought the
Reserve Bank of India's permission in September 2006 to the
conversion of FBFS as its direct selling agent.

                       About Federal Bank

Headquartered in Aluva, India, the Federal Bank Limited --
http://www.federal-bank.com/-- is engaged in the banking   
business, offering a number of deposit products to its retail
customers, including non-resident Indians, such as savings bank
account, current deposits, time deposits and recurring deposits
with suitable variations for customized products targeting
different groups, including students, salaried employees and
senior citizens.

Fitch Ratings gave Federal Bank a support rating of '5' on
July 22, 2003.


FEDERAL BANK: To Find Bank for Acquisition This Year
----------------------------------------------------
Federal Bank is reportedly in the lookout for a bank that they
could acquire in 2006.

According to Business Line, citing Federal Bank Executive
Director K.S. Harshan, the Bank hoped to pick up a majority
stake in at least one bank this year.  The Bank might need to
increase capital if the cash needs of the candidate bank it will
acquire would require such, Mr. Harshan pointed out.

The Bank has recently merged with The Ganesh Bank of Kurundwad
Ltd.  As reported by the Troubled Company Reporter - Asia
Pacific, the merger took effect on January 25, 2006, pursuant to
a scheme of amalgamation.

                       About Federal Bank

Headquartered in Aluva, India, the Federal Bank Limited --
http://www.federal-bank.com/-- is engaged in the banking   
business, offering a number of deposit products to its retail
customers, including non-resident Indians, such as savings bank
account, current deposits, time deposits and recurring deposits
with suitable variations for customized products targeting
different groups, including students, salaried employees and
senior citizens.

Fitch Ratings gave Federal Bank a support rating of 5 on
July 22, 2003.


FEDERAL BANK: BoD To Meet on Oct. 20 to Consider 2nd Qtr Results
----------------------------------------------------------------
The Board of Directors of Federal Bank Ltd will hold a meeting
on October 23, 2006, inter alia, to consider and take on record
the Bank's unaudited financial results for the second quarter
for the fiscal year 2006-2007 (period ended September 30, 2006).

As previously reported by the Troubled Company Reporter - Asia
Pacific, the Bank posted a net profit of INR401.80 million for
the quarter ended June 30, 2006.

                       About Federal Bank

Headquartered in Aluva, India, the Federal Bank Limited --
http://www.federal-bank.com/-- is engaged in the banking   
business, offering a number of deposit products to its retail
customers, including non-resident Indians, such as savings bank
account, current deposits, time deposits and recurring deposits
with suitable variations for customized products targeting
different groups, including students, salaried employees and
senior citizens.

Fitch Ratings gave Federal Bank a support rating of 5 on
July 22, 2003.


* Blue Chips Lead Market Recovery, CRISIL Observes
--------------------------------------------------
The equity markets continued to advance with the BSE Sensex
crossing the 12,000 barrier for the first time since May 17,
2006.  The BSE Sensex gained 6.46% during September 2006, while
the S&P CNX Nifty gained 5.11%.  The NSE benchmark index has now
recovered over 35% from the levels in May and June of 2006, when
the markets had crashed.  Blue chip stocks have led the recovery
while midcaps and smallcaps have also benefited.  Foreign
institutional investors have been the prime movers in the
markets.  Mutual funds too have increased their equity exposure
from a net seller position in July to a net buyer position of
INR13.40 billion in September.  The mutual funds' net equity
investments in the secondary market during the period between
April and September of 2006 have far exceeded FII investments
during the period: the mutual funds invested INR107.21 billion
whereas FIIs invested INR61.08 billion in equities.  The major
reason for the trend was the large-scale FII selling during the
market melt down in May, when mutual funds were net buyers.
Mutual fund cash holdings have also reduced over the six-month
period as equity markets recovered.

These observations were part of the CRISIL FundServices' monthly
Risk Adjusted Return Ranking of mutual fund schemes.  The
rankings covered 12 asset classes and 256 schemes representing
almost 62% of the assets managed by domestic mutual funds for
the period ended September 2006.  The CRISIL-RRR measures the
return performance of the schemes over the period of the
analysis, adjusted for the risks they took to get those returns.

The mutual funds' assets under management fell by over 5%
(approx INR160 billion) during the month to INR2.91 trillion
after reaching a record INR3.07 trillion in August.  The reduced
AUM may be linked to the outflow of over INR200 billion on
account of corporate advance taxes that were due in September.  
Money market liquidity was also affected, raising call money
rates above the reverse repo rates.  New Fund Offers collected
INR50.28 billion in 15 schemes including 14 debt schemes during
the month. Fixed Maturity Plans continued to lead with a mop up
of Rs.45.98 billion or 90% of total collections.

In the Equity Diversified category, Sundaram BNP Paribas Select
Midcap - Growth continued to top the category at CRISIL-RRR 1.
HDFC Growth Fund - Growth moved up 2 notches to CRISIL-RRR 2;
UTI Infrastructure Fund - Dividend moved up 3 notches to CRISIL-
RRR 3.  The benchmark for the Diversified Equity Funds category,
CRISIL Fund-eX, generated a return of 29.23% for the year ended
September 2006.

The Income Funds returns as measured by the CRISIL Fund-dX, were
a modest 3.98% for the year ended September 2006. Reliance
Income Fund - Growth continued to top the category at CRISIL-RRR
1; Birla Income Plus Plan B - Growth moved up 2 notches to
CRISIL-RRR 2; Birla Sun Life Income Fund - Growth was at CRISIL-
RRR 3.

In the Debt Short-Term category, Reliance Short Term Fund -
Growth continued to top the charts at CRISIL-RRR 1; Birla Sun
Life Short Term Fund - Growth was at CRISIL-RRR 2; Kotak Bond
Short Term Plan - Growth was at CRISIL-RRR 3 position.  The
CRISIL STBEX, the benchmark for short-term income funds,
generated returns of 4.78% for the year ended September 2006.

The benchmark for Balanced Fund category, the CRISIL Fund-bX,
generated returns of 27.81% for the year-ended September 2006.
Sundaram BNP Paribas Balanced Fund - Growth moved up 1 notch to
CRISIL-RRR 1; Birla Balanced Fund - Growth moved up 4 notches to
CRISIL-RRR 2; while CAN Balanced II was at CRISIL-RRR 3
position.


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

ALCATEL SA: Signs Converge Network Project with Golden Telecom
--------------------------------------------------------------
Alcatel S.A. signed a contract with Golden Telecom, subsidiary
of Golden Telecom Inc., to deploy a fixed/mobile converged
network with a next generation network core and Unlicensed
Mobile Access capability.  The project is expected to be in
commercial operation by end of 2006.

"Our intention is to facilitate the access to our services with
a single subscription to mobile, fixed and data services, a
single access through any device, a selection of access media,
personalized services and many other innovative
functionalities," Andrii Droniuk, Golden Telecom Ukraine general
director disclosed.

"This first fixed/mobile convergence network deployment in
Ukraine is proof of Alcatel's commitment to fixed-mobile
convergence in the telecom industry.  Ukraine is an important
step toward strengthening our leading position in mobile NGN in
the fast developing Eastern Europe market," Johan Vanderplaetse,
Vice-president for Alcatel activities in the Commonwealth of
Independent States.

In the framework of this contract, Alcatel will deliver its
mobile NGN core network based on an innovative, standard-based
mobile switching solution, the Alcatel 5020 Wireless Call Server
that controls distributed media gateways and manages voice and
data services.

Alcatel will also deliver the Alcatel 8640 Corporate Mobility
Manager that will enable to offer advanced fixed/mobile
converged services, enhanced voice/multimedia virtual private
network services and virtual PBX services for the corporate
segment and SOHO users.

The company will also supply UMA trial equipment for a GSM/WiFi
hybrid phone solution and the Alcatel 1430 Unified HSS equipment
to obtain a single repository of all subscriber information
coming from any type of network.

                      About Golden Telecom

Golden Telecom, Inc. (NASDAQ: GLDN) --
http://www.goldentelecom.com/-- is a leading facilities- based  
provider of integrated telecommunications and Internet services
in major population centers throughout Russia and other
countries of the Commonwealth of Independent States.  The
company offers voice, data and Internet services to
corporations, operators and consumers using its overlay network
in major cities including Moscow, Kiev, St. Petersburg, Nizhniy
Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and
Tashkent, and via intercity fiber optic and satellite-based
networks, including approximately 287 combined access points in
Russia and other countries of the CIS.  The company offers
cellular communication services in Kiev and Odessa.

                          About Alcatel

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

                          *     *     *

Moody's Investors Service has placed the Ba1 long-term debt
ratings of Alcatel SA on review for possible downgrade following
its definitive agreement to merge with Lucent Technologies
(rated B1).  The ratings placed on review include Alcatel's
senior, unsecured Eurobonds, convertible bonds, Euro-medium term
notes, its EUR1.0 billion revolving credit facility and its
corporate family rating, all at Ba1 currently.  Alcatel's rating
for short-term debt was affirmed at Not-Prime.

In March 2006, Standard & Poor's Services placed its 'BB' long-
term corporate credit rating on France-based telecommunications
equipment maker Alcatel on CreditWatch with negative
implications.


ALCATEL SA: Inks EUR25 Million Next-Generation Network Contract
---------------------------------------------------------------
Alcatel S.A. has been selected by Maroc Connect, a Moroccan
supplier of fixed and mobile telecommunications services, for
the deployment of a next-generation network.

The first phase of this agreement, which is worth more than
EUR25 million, foresees a network deployment in five major
Moroccan areas.  The services will be commercially deployed in
early 2007.

The resulting network will help Maroc Connect lower costs,
reduce customer churn and generate additional revenue from new
services like voice over IP and virtual private networks.

Under the terms of the agreement, Alcatel is the systems
integrator and primary contractor and will assist the operator
in the development, operation and maintenance of the network.

"Alcatel is our partner of choice, from its innovative
technologies and broad portfolio leadership (WiMAX, NGN, IP and
IN) to its extensive experience in integrating and deploying
complex solutions", Mr. Karim Zaz, CEO of Maroc Connect, said.  
"Alcatel's solution will bring us a competitive advantage, with
a network that offers better overall performance".

"I am glad to see that the major alternative operator in
Morocco, with a strategy built on technological leadership, has
chosen to partner with Alcatel," said Olivier Picard, President
of Alcatel for France, Africa, the Middle East, the South and
Central Asia.  "This contract further reinforces Alcatel's
position as a leader in integrating complex and state-of the art
technologies.  Furthermore it confirms our major position as a
trusted partner with NGN and IP expertise and leadership."

Alcatel's complete turnkey solution includes its 7515 Media
Gateway (MG) and 5020 Softswitch.  These products, which are
part of Alcatel's extensive IP Multimedia Subsystem (IMS)-
compliant NGN portfolio, provide end-to-end quality of service
(QoS) and security functionality that enables service providers
to bring innovative, value-added services to their customers.  
Leveraging the power of IMS, the Alcatel solution enables
service providers to quickly develop, test, and launch
innovative new user-centric applications - independent of the
access technology used.

                       About Maroc Connect

ONA (Omnium of North Africa) subsidiary Maroc Connect has won
Morocco's third fixed-line licence, paying around MAD 306
million (EUR 27.5 million), reports the country's telecom
regulator, ANRT. Maroc Connect is one of Morocco's main ISPs and
IP VPN operators. Its new licence includes limited mobility
services within an up to 35 km diameter. Maroc Connect must
invest MDH 1 billion in the first year. ANRT plans to liberalise
the telecoms sector entirely by 2008. The body expects there to
be over three million fixed lines, seven million new mobile
phone accounts and 500,000 new internet users by 2015. It
expects mobile and fixed networks to generate MAD 20 billion and
MAD 15 billion of revenue in the same period.

                          About Alcatel

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

                          *     *     *

Moody's Investors Service has placed the Ba1 long-term debt
ratings of Alcatel SA on review for possible downgrade following
its definitive agreement to merge with Lucent Technologies
(rated B1).  The ratings placed on review include Alcatel's
senior, unsecured Eurobonds, convertible bonds, Euro-medium term
notes, its EUR1.0 billion revolving credit facility and its
corporate family rating, all at Ba1 currently.  Alcatel's rating
for short-term debt was affirmed at Not-Prime.

In March 2006, Standard & Poor's Services placed its 'BB' long-
term corporate credit rating on France-based telecommunications
equipment maker Alcatel on CreditWatch with negative
implications.


ANIXTER INTERNATIONAL: 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 Wholesale Distribution (Excluding
Healthcare) sector, the rating agency confirmed its Ba1
Corporate Family Rating for Anixter International Inc.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$200 million
   5.95% Unsecured
   Notes                  Ba1     Baa3    LGD2        28%

   US$155 million
   Subordinated
   LYON's notes           Ba3     Ba2     LGD6        94%

   US$100 million
   Shelf                P(Ba1)  P(Baa3)   LGD2        28%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that 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%).

Anixter International Inc. -- http://www.anixter.com/-- is the  
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.  The
company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5.0 million square feet of space, and our presence in 220
cities in 45 countries, including Indonesia, Australia, China,
Hong Kong, India, Malaysia, New Zealand, the Philippines,
Singapore, Taiwan, and Thailand.


ANIXTER INT'L: Settling Income Tax Liabilities with the IRS
-----------------------------------------------------------
Anixter International Inc. has entered into a settlement with
the U.S. Internal Revenue Service as to the federal income tax
liabilities of Anixter and its subsidiaries for the tax years
1996 through 1998.

Under the terms of this settlement, the company will be able to
deduct certain losses on its U.S. tax return arising from
changes in the IRS regulations that became effective in 1996.  
The refund associated with this tax issue will be approximately
US$13.7 million, plus applicable interest, and will be recorded
in the company's third quarter results.

As a result of this settlement and the completion of the 2005
federal tax return, the company will also be adjusting its
income tax reserves and payables during the third quarter of
2006 (currently expected to be approximately US$4.4 million of
additional income tax benefit).  The total estimated effect on
the third quarter tax provision will be approximately US$18.1
million or 41 cents per diluted share.  At the same time Anixter
will record as income, net of applicable tax thereon,
approximately US$4.8 million or 11 cents per diluted share as
the estimated amount of interest to be received on the
settlement.

The 1996-1998 refund has been approved by the Joint Committee on
Taxation of the U.S. Congress and is expected to be received in
the next few weeks.

                  About Anixter International

Anixter International Inc. -- http://www.anixter.com/-- is the  
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.

The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5.0 million square feet of space, and our presence in 220
cities in 45 countries, including Australia, China, Hong Kong,
India, Malaysia, New Zealand, the Philippines, Singapore,
Taiwan, Thailand and Indonesia.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Wholesale Distribution (Excluding
Healthcare) sector, the rating agency confirmed its Ba1
Corporate Family Rating for Anixter International Inc.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$200 million
   5.95% Unsecured
   Notes                  Ba1     Baa3    LGD2        28%

   US$155 million
   Subordinated
   LYON's notes           Ba3     Ba2     LGD6        94%

   US$100 million
   Shelf                P(Ba1)  P(Baa3)   LGD2        28%

Fitch Ratings affirmed these ratings for Anixter International
Inc. and its wholly owned operating subsidiary, Anixter Inc.:

  Anixter:

    -- Issuer Default Rating 'BB+'
    -- Senior unsecured debt 'BB-'

  AI:

    -- Issuer Default Rating 'BB+'
    -- Senior unsecured notes 'BB+'
    -- Senior unsecured bank credit facility at 'BB+'

Fitch's action affects approximately US$700 million of public
debt securities.  The Rating Outlook is Stable.


AVNET INC: Awaits NYSDEC Final Approval to N.Y. Remediation Plan  
----------------------------------------------------------------
Avnet Inc. has yet to receive the final approval of the New York
State Department of Environmental Conservation for its soil
remediation plan for a formerly owned manufacturing site in
Huguenot, N.Y.

The company was named a potentially responsible party by the
NYSDEC for the site, which it owned from the mid-1960s until the
early 1970s.

The company reached a settlement in litigation to apportion the
estimated cleanup costs among it and the current and former
owners and operators of the site.

In accordance with this agreement, the company has paid a
portion of past costs incurred by NYSDEC and the current owner
of the site.  The company will also pay a percentage of the cost
of the environmental clean up of the site; the first phase of
which has been estimated to cost a total of US$2.4 million for
all parties to remediate contaminated soils.

Avnet, Inc., headquartered in Phoenix, Arizona, is one of the
largest worldwide distributors of electronic components and
computer products, primarily for industrial customers.  Revenues
for the fiscal year ended July 1, 2006 were US$14.3 billion.

It has operations in the following Asia-Pacific countries:
Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia,
New Zealand, Philippines and Singapore.

Moody's Investors Service upgraded the corporate family and
senior unsecured debt ratings of Avnet, Inc. to Ba1 from Ba2 and
assigned a Ba1 rating to the proposed offering of up to
US$250 million senior notes due 2016.  The new issue proceeds
together with cash-on-hand and other financial resources will be
used to repurchase not less than US$250 million of the
outstanding US$361.4 million 9.75% senior notes due February
2008.  The ratings outlook is stable.


BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services' ratings on McLean, Virginia-
based BearingPoint Inc., remained on CreditWatch with developing
implications, where they were placed on March 18, 2005,
reflecting concerns regarding continued financial reporting
problems and a recently announced order entered by the New York
State Supreme Court for New York County finding BearingPoint in
default under the indenture governing the company's 2.75% Series
B Convertible Subordinated Debentures because of a failure to
file timely regulatory reports.

"This court ruling also introduces the possibility that holders
of BearingPoint's other indebtedness could pursue a similar
notice of default or acceleration," said Standard & Poor's
credit analyst Philip Schrank.

Acceleration of the US$200 million Series B debentures has not
been sought by the trustee, nor ordered by the court and the
company had almost US$300 million in cash at Sept. 25, 2006.  

While indemnity agreements relating to surety bonds and certain
other customer contracts could also be impacted, no other class
of bond holder has yet filed a notice of default.

Furthermore, senior debt holders can exercise blocking rights on
payments, including acceleration, under certain terms of all
series of BearingPoint's subordinated debentures.

Although the company intends to appeal this ruling, and seek
waivers from a majority of each series of debentures, barring
either of these outcomes, BearingPoint would also face the
possibility that its debt obligations would be classified as
current, if it were to file its 10-k currently.

Standard & Poor's will continue to monitor BearingPoint's
progress toward completing its delayed filings and its
discussions with representatives of the holders of all of its
debentures and its banks.  

If progress is not made over the next few weeks in coming to
agreements with all creditor groups regarding waivers and
forbearance, the ratings will be lowered to the 'CCC' category.

Conversely, the ratings could be reviewed for a possible upgrade
following the resolution of all financial reporting issues and
agreements with all the creditors.

Ratings on CreditWatch:

  BearingPoint Inc.:

     * Corporate credit rating: B-/Watch Dev./--
     * Senior secured: B-/Watch Dev.
     * Senior unsecured: B-/Watch Dev.
     * Subordinated debt: CCC+/Watch Dev.

Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management  
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide.  The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.

BearingPoint has global locations in Australia, Austria, Brazil,
China, France, India and Indonesia, among others.


BEARINGPOINT: Moody's Cuts Ratings on US$450 Million Bonds to B3
----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of
BearingPoint, Inc., and has placed the company's ratings on
review for further possible downgrade.  The rating actions
reflect the company's YTD September 2006 cash outflows, which
have largely been driven by higher than expected finance and
accounting systems costs, delays in filing its annual financial
reports with the SEC, and increased Q2 2006 voluntary employee  
turnover.

The review will focus on the company's prospects for reducing
costs to operate its accounting and financial systems, prospects
for becoming current on the filing of its SEC periodic reports,
reducing its voluntary turnover, and generating free cash flow.  
As part of the review, Moody's will also assess the company's
prospects for either achieving bondholder consents or appealing
litigation (or disputing damage claims) stemming from a
September 2006 New York State Supreme Court Order, which grants
summary judgment to plaintiffs and finds the company in breach
under the indenture governing the company's 2.75% Series B
convertible subordinated debentures.

On Sept. 26, 2006, the company announced it has further delayed
the filing of its FY 2005 10-K as a direct consequence of the
September 2006 Order and does not expect to be current on the
filing of its SEC financial statements until the spring of 2007
at the earliest.  The company also announced that it expects
2006 cash will be negatively impacted by unanticipated, unusual,
and ongoing costs to operate its accounting and financial
systems and by unanticipated and unusual costs to retain its
employees.

Ratings downgraded and placed on review for further possible
downgrade:

   * Corporate Family Rating --downgraded to B2 from B1

   * US$250 million series A subordinated convertible bonds due
     2024 --downgraded to B3 from B2

   * US$200 million series B subordinated convertible bonds due
     2024 --downgraded to B3 from B2

Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management  
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide.  The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.

BearingPoint has global locations in Australia, Austria, Brazil,
China, France, India, Japan, Mexico, Portugal, Singapore and
Indonesia, among others.


CANWEST MEDIAWORKS: Selling Two Radio Stations for US$15 Million
--------------------------------------------------------------
CanWest MediaWorks Inc has entered into an agreement with Corus
Entertainment Inc. for the sale of its two existing radio
stations in Canada -- 99.1 Cool FM in Winnipeg, Manitoba and
91.5 The Beat FM in Kitchener, Ontario -- for an aggregate cash
price of approximately US$15 million, subject to certain
customary price adjustments based upon the stations' financial
position at the completion date.  Completion of the transaction
is conditional upon the purchaser obtaining CRTC and any other
necessary regulatory approvals.

Peter Viner, President and Chief Executive Officer of the
company's Canadian operations, noted, "Despite considerable
efforts, the company has not established, either through the
award of additional radio licences by the CRTC or by
acquisition, a sufficient presence in the Canadian radio market
to achieve the economies of scale necessary for success in this
highly competitive business.  In light of that, the company
determined that its capital would be better deployed in higher
growth opportunities and in supporting its core business
requirements."

CanWest MediaWorks Inc. -- http://www.canwestmediaworks.com/--  
is  a wholly owned subsidiary of CanWest Global Communications
Corp, Canada's largest media company.  In addition to owning the
Global Television Network, CanWest is Canada's largest publisher
of daily newspapers, and also owns, operates and/or holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, Web sites and radio
networks in Indonesia, Canada, New Zealand, Australia,
Singapore, Malaysia, Turkey, the United States and the United
Kingdom.

                          *     *     *

Dominion Bond Rating Service placed the ratings of CanWest
MediaWorks Inc. under review with negative implications due to
weakness in more of the company's operating segments, which may
lead to a breach in the company's financial covenants under its
senior secured bank facilities in the upcoming quarter and year-
end.  Ratings places under review include the Negative BB Issuer
Rating and the Negative B (high) rating on the company's Senior
Subordinated Notes.

Moody's Investors Service placed Canwest MediaWorks Inc.'s Ba3
corporate family and B2 senior subordinate ratings under review
for possible downgrade.  At the same time, Moody's lowered
CanWest's speculative grade liquidity rating to SGL-3 from SGL-
2.


CORUS GROUP: Tata Steel to Launch a GBP5-Bln Takeover Bid
---------------------------------------------------------
India's Tata Steel is set to launch a GBP5 billion takeover bid
for Corus Group PLC, BBC News reports.

According to The Times, speculations on the possible takeover
bid rose after Tata told the Stock Exchange that it was
considering a number of takeover opportunities, including Corus.  
It is also believed that Tata may choose Corus's option of a
joint venture rather than a full takeover.

Tata had prepared a GBP3.5 billion financing deal to make the
acquisition, BBC cited Sunday Telegraph.

Corus did not comment on Tata's statement of interest, but the
Takeover Panel has put the company in an offer period because of
the specified interest by the Indian company.  Corus is expected
to make a definitive statement if it receives a formal offer by
Tata.

                        About Tata Steel

Headquartered in Mumbai, India, Tata Steel --
http://www.tatasteel.com/-- is Asia's first and India's largest   
private sector steel company.  Tata Steel is among the lowest
cost producers of steel in the world and one of the few select
steel companies in the world that is EVA+ (Economic Value
Added).  It is a small steel producer by global standards, but
has the backing of the giant Tata Group, one of India's largest
companies with interests as diverse as carmaking,
communications, tea and oil.

                        About Corus Group

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

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

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

                        *     *     *

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

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

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

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

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

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

Moody's Investors Service upgraded Corus Group plc's corporate
family rating to Ba2, upgraded its senior unsecured and
supported unsecured obligations to B1 and raised senior secured
bank facility to Ba1.


DIRECTED ELECTRONICS: Omega's Patent Violation Suit in Discovery  
----------------------------------------------------------------
Discovery is proceeding for Omega Patents LLC's patent
infringement suit against Directed Electronics Inc. in the U.S.
District Court for the Middle District of Florida.

The company did not specify Omega's asserted patents in its
latest report with the United States Securities and Exchange
Commission.

On March 31, 2004, Omega filed suit against Fortin Auto Radio
Inc. for breaching a license agreement. On Nov. 11, 2005, Omega
amended its complaint and added the company as a defendant for
patent infringement. This complaint seeks injunctive relief and
damages, as well as exemplary damages, attorneys' fees and
costs.

On Jan. 17, 2006, the company moved to dismiss or transfer this
case to the U.S. District Court for the Southern District of
California. On April 27, 2006, the Court denied the company's
motion. On May 25, 2006, the company filed an answer to the
amended complaint.

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 award-winning Definitive
Technology(R) and a/d/s/(R) premium loudspeakers. Directed's
mobile audio products include speakers, subwoofers, and
amplifiers sold under its Orion(R), Precision Power(R), Directed
Audio(R), a/d/s/(R), and Xtreme(R) brand names. 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 in Indonesia, India, Japan,
Malaysia, Singapore, Korea and Thailand.

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.


DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
consumer electronics maker Directed Electronics Inc. following
its acquisition of Polk Audio Inc., a provider of loudspeakers
and audio equipment for homes and cars, for US$136 million in
cash.  The corporate credit rating was lowered to 'B+' from 'BB-
', and was removed from CreditWatch negative where it was placed
on Aug. 25.
     
The ratings outlook on Vista, Calif.-based DEI is stable.  Pro
forma balance sheet debt at June 30, 2006, including the
acquisition debt, totaled about US$307 million.
      
"The downgrade reflects DEI's weaker financial position after
the Polk acquisition," said Standard & Poor's credit analyst
Nancy C. Messer.
     
To fund the acquisition, the company increased the size of its
term loan by US$141 million under an amended and restated senior
secured credit facility.  This amount was 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 in 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.  Following the acquisition,
DEI is highly leveraged, with lease-adjusted total debt to
EBITDA of about 4.4x.
     
Standard & Poor's expects DEI's lease-adjusted leverage to
remain at 4x or higher over the intermediate term, as the
company expands and diversifies sales through new product
introductions and possible periodic acquisitions.  The Polk
acquisition, which will increase DEI's revenues by a material
25%, adds integration risk to the credit, although mitigating
this concern is DEI's successful track record of integrating
prior acquisitions.  At the 'B+' rating, the rating agency
expects funds from operations to total debt in the range of 10%-
15% and lease-adjusted total debt to EBITDA in the range of 4x-
4.5x.
     
The Polk acquisition is consistent with DEI's strategy of
growing both organically and through acquisitions in home
electronics, mobile electronics, and adjacent product categories
to leverage DEI's existing distribution network, customer
relationships, and sales force, since the markets are highly
fragmented.

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 award-winning Definitive
Technology(R) and a/d/s/(R) premium loudspeakers. Directed's
mobile audio products include speakers, subwoofers, and
amplifiers sold under its Orion(R), Precision Power(R), Directed
Audio(R), a/d/s/(R), and Xtreme(R) brand names. 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 in Indonesia, India, Japan,
Malaysia, Singapore, Korea and Thailand.


INCO LTD: CVRD Obtains European Clearance for Inco Offer
--------------------------------------------------------
Companhia Vale do Rio Doce disclosed that it has obtained an
unconditional clearance from the European Commission under the
EC Merger Regulation with respect to its offer to acquire all of
the outstanding common shares of Inco Limited.

As previously reported in the Troubled Company Reporter on Sept.
26, The Board of Directors of Inco Limited has recommended that
Inco shareholders tender their shares to the offer made by
Companhia Vale do Rio Doce to purchase all of the outstanding
common shares of Inco at a price of CDN$86 in cash per share.

The expiry date of CVRD's offer to purchase all of the
outstanding common shares of Inco at a price of CDN$86 in cash
per share is Oct. 16, Monday, at 8:00 p.m. (Toronto time).

                          About CVRD

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining  
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                       About Inco Ltd.

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

                          *     *     *

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


INCO LTD: Union Steelworkers Ratify Agreement With Voisey's Bay
---------------------------------------------------------------
Members of the United Steelworkers Local 6480 have said yes to a
tentative agreement reached on October 7, 2006, with Inco Ltd.
subsidiary Voisey's Bay Nickel Company.

Not only does the ratification mean an end to a two-month strike
and an immediate return to work, but it also means workers have
accepted a settlement that guarantees parity with other Inco
sites in Ontario and Manitoba.

This first contract for the 120 workers at the remote Labrador
mine site provides a 15.5-per-cent increase in wages over three
years, a nickel bonus, improved Earnings Compensation Bonus, a
cost-of-living allowance, a US$6,000 back-to-work retention
bonus, and doubled employer pension contributions.

The union also negotiated improved vacation, overtime,
bereavement and sick leave, health benefits and a statutory
holiday recognizing National Aboriginal Day on June 21.

"This agreement is an important milestone for these members and
their communities," said USW Ontario/Atlantic Director Wayne
Fraser.  "Their commitment to gaining parity with other Inco
employees was unwavering.  Their solidarity, coupled with
support from USW members in Sudbury, Port Colborne and Thompson,
MB, was able to overcome the isolation of maintaining a picket
line in a remote area of Labrador.  "It was an amazing struggle
with a great outcome."

                         About Inco Ltd.

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

                          *     *     *

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


GNC CORP: Reports Strong Same-Store Sales for Third Quarter 2006
----------------------------------------------------------------
GNC Corp., reported strong same store sales results for the
third quarter of 2006.

Domestic same store sales for the third quarter of 2006
increased 11.7% for corporate stores and 7.0 percent for
franchise stores.  Corporate store sales include Internet sales,
which added 1.5% to corporate same store sales growth.

"I am extremely pleased with the continued strong sales
performance we are seeing across every major category and in all
of our store formats.  This quarter is especially encouraging
since it not only represents the fourth consecutive quarter of
strong single- to double-digit same store sales growth, but also
double-digit same store sales growth against positive growth
from last year in the third quarter," said President and Chief
Executive Officer Joseph Fortunato.

Headquartered in Pittsburgh, Pa., GNC -- http://www.gnc.com/--  
is the largest global specialty retailer of nutritional
supplements, which includes vitamin, mineral and herbal
supplements, sports nutrition products, diet and energy products
and specialty supplements.  GNC has more than 4,800 retail
locations throughout the United States, including more than
1,000 domestic franchise locations, and locations in 43
international markets.

GNC's Asian operations are in Indonesia, Hong Kong, India,
Japan, Philippines, and Thailand, among others.

                        *    *    *

Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' corporate credit rating, on Pittsburgh,
Pennsylvania-based General Nutrition Centers Inc.The ratings are
removed from CreditWatch, where they were placed with positive
implications on June 19, 2006.  S&P said the outlook is stable.


MARSH & MCLENNAN: CEO Responds to Putnam Purchase Inquiries
-----------------------------------------------------------
Marsh & McLennan Companies, Inc.'s President and Chief Executive
Officer Michael G. Cherkasky disclosed last week that the
company has commenced a market check to determine the value
others would put on MMC's subsidiary, Putnam Investments.

Mr. Cherkasky's statement came in response to repeated inquiries
over the last few months from parties interested in either
acquiring or partnering with Putnam.

Mr. Cherkasky said that the company's Board of Directors has not
decided to take any specific action in regard to Putnam at this
time.

Founded in 1937, Putnam Investments -- http://www.putnam.com/--  
is one of the nation's oldest and largest money management
firms.  As of June 30, 2006, Putnam managed US$180 billion in
assets, of which US$119 billion is for mutual fund investors and
US$61 billion is for institutional accounts.  Putnam has offices
in Boston, London and Tokyo.

                    About Marsh & McLennan

Marsh & McLennan Companies, Inc. -- http://www.marshmac.com/--  
is a New York-based global professional services firm with
subsidiaries offering risk management, insurance brokerage,
consulting and investment management services to clients in more
than 100 countries, including Australia, China, India,
Indonesia, Japan, Korea and Singapore.  MMC owns the world's
largest insurance brokerage and consulting operation.  MMC
reported total revenues of US$6.0 billion and net income of
US$588 million for the first six months of 2006.  Shareholders'
equity was US$6.0 billion as of June 30, 2006.

Moody's Investors Service has affirmed the Baa2 senior unsecured
debt rating and the Prime-2 short-term debt rating of Marsh &
McLennan Companies, Inc.  The rating agency has also assigned
provisional ratings to MMC's new universal shelf registration.
The rating outlook for MMC remains negative.


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

ADVANCED MEDICAL: 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, the rating agency confirmed its B1 Corporate
Family Rating for Advanced Medical Optics Inc.  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
   ----------           -------  -------  ------   ----------
  
   Senior secured
   revolving credit
   facility                B1      Ba1      LGD1        7%

   2.5% convertible
   senior subordinated
   notes                   B3       B2      LGD4       66%

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 Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- develops, manufactures and markets  
ophthalmic surgical and contact lens care products.  Sales for
the twelve months ended June 24, 2005 were approximately US$921
million.

The company has operations in Japan, Germany and Ireland.


AMAZON.COM: 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 US and Canadian Retail sector, the rating
agency confirmed its BA3 Corporate Family Rating for Amazon.com,
Inc.

Additionally, Moody's revised and held 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$900 million
   4.75% Convertible
   Subordinated Notes   B2       B2       LGD5     82%

   US$306 million
   6.75% Premium Adj.
   Convertible Sec.     B2       B2       LGD5     82%

   Senior Unsecured
   Shelf Registration   (P)B1    (P)Ba2   LGD3     35%

   Subordinated
   Shelf Registration   (P)B2    (P)B2    LGD5     82%

   Preferred Stock
   Shelf Registration   (P)B3    (P)B2    LGD6     97%    

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%).

Based in Seattle, Wash., Amazon.com, Inc. (Nasdaq: AMZN) a
Fortune 500 company, opened on the World Wide Web in July 1995
and offers Earth's Biggest Selection.  Amazon.com seeks to be
Earth's most customer-centric company, where customers can find
and discover anything they might want to buy online, and
endeavors to offer its customers the lowest possible prices.  
Amazon.com and other sellers offer millions of unique new,
refurbished and used items in categories such as health and
personal care, jewelry and watches, gourmet food, sports and
outdoors, apparel and accessories, books, music, DVDs,
electronics and office, toys and baby, and home and garden.  
Amazon.com and its affiliates operate retail sites
http://www.amazon.com/ http://www.amazon.co.uk/
http://www.amazon.de/ http://www.amazon.co.jp/    
http://www.amazon.fr/ http://www.amazon.ca/and   
http://www.joyo.com/

The company has fulfillment centers in Japan and China.  Other
office locations include Germany, India, and the United Kingdom.


BCBG MAX: 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 the US and Canadian Retail sector, the
rating agency confirmed its B1 Corporate Family Rating for BCBG
Max Azria Group, Inc.

Additionally, Moody's revised and held 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$150 million
   Asset-Based
   Revolver             Ba3      Ba2      LGD2     20%

   US$199.5 million
   Term Loan            B1       B1       LGD3     48%

   US$80 million
   Third Lien
   Term Loan            B3       B3       LGD5     76%

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 Vernon, California, BCBG Max Azria Group, Inc.
- http://www.bcbg.com/-- is an apparel retailer and wholesaler.   
It operates 80 retail stores, 57 factory stores, and 102 partner
shops in the United States.  In addition, it distributes to over
400 wholesale doors under the BCBGMaxAzria, TO THE MAX, maxime,
dorothee bis, Herve Leger, BCBGirls, Parallel, and maxandcleo
brand names.  The Max Rave acquisition will add a minimum of 450
stores currently under the G+G, Rave, and RaveGirl name plates
which will all be converted to the Max Rave name plate.

The company has international offices in Japan, Canada and
France.


BRADLEY PHARMA: Costa Brava Seeks Support for Board Nominees
------------------------------------------------------------
Costa Brava Partnership III L.P. has released an open letter
addressed to shareholders of Bradley Pharmaceuticals, Inc.,
soliciting support for its nominees to the company's Board of
Directors.

Costa Brava Partnership III L.P. says that it is the largest
holder of the outstanding common stock of the company and that a
pattern of poor corporate governance at the company led it to
nominate three candidates for the company's Board of Directors.  
Costa Brava tells the company's shareholders that it is not
asking for control but for a voice for all public shareholders
to insist on change and help the company maximize shareholder
value.

Costa Brava also tells the company's shareholders that its
nominees are Douglas E. Linton, John S. Ross and Seth W. Hamot,
are truly independent and have no financial interest in the
company other than holdings of the company's shares.

Costa Brava also says that it has mailed the company's
stockholders a copy of its Definitive Proxy Statement filed with
the Securities and Exchange Commission on Sept. 29, 2006 and a
blue proxy card that can be used to elect its independent
director nominees.

Shareholders with questions about Costa Brava's campaign may
call its proxy solicitors, MacKenzie Partners, Inc., Toll-Free
at 800-322-2885 or 212-929-5500 (call collect) or may e-mail
questions to savebradley@mackenziepartners.com/

A full text-copy of Costa Brava's open letter may be viewed at
no charge at http://ResearchArchives.com/t/s?133e

                        About Costa Brava

Costa Brava Partnership III L.P., which often invests in the
debt and equity of companies with troubled capital structures,
is managed by Roark, Rearden & Hamot Capital Management, LLC, an
Institutional Investment Manager.

                 About Bradley Pharmaceuticals

Based in Fairfield, New Jersey, Bradley Pharmaceuticals, Inc.
(NYSE: BDY) -- http://www.bradpharm.com/-- was founded in 1985  
as a specialty pharmaceutical company marketing to niche
physician specialties in the U.S. and 38 international markets.  
Bradley's success is based on the strategy of Acquire, Enhance
and Grow. Bradley Acquires non-strategic brands, Enhances these
brands with line extensions and improved formulations and Grows
the products through promotion, advertising and selling
activities to optimize life cycle management.  Bradley
Pharmaceuticals is comprised of Doak Dermatologics, specializing
in topical therapies for dermatology and podiatry, and Kenwood
Therapeutics, providing gastroenterology, respiratory and other
internal medicine brands.

The company has operations in Australia and Japan.


JDA SOFTWARE: 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 U.S. Technology Software sectors this week,
the rating agency confirmed its B2 Corporate Family Rating for
JDA Software Group, Inc.

Additionally, Moody's revised or held 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$50 Million
   Senior Secured
   Revolving Credit
   Facility due 2012      B1       B1      LGD3       30%

   US$175 Million
   Senior Secured
   First Lien
   due 2012               B2       B1      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-
umeric 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 Scottsdale, Arizona, JDA Software Group, Inc.,
-- http://www.jda.com/-- provides software solutions tailored  
to the retail industry and their suppliers.  The company has
offices in Japan, Australia, Singapore and the United Kingdom.


MILLIPORE CORPORATION: Moody's Assigns Loss-Given-Default Rtgs.
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba1 Corporate
Family Rating for Millipore Corporation.  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
   ----------           -------  -------  ------   ----------

   Unsecured Notes
   due 2007               Ba2      Ba2     LGD5       72%

   Senior Unsecured
   EURO-Denominated
   Notes due 2016         Ba2      Ba2     LGD5       72%

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 Billerica, Massachusetts, Millipore Corporation
-- http://www.millipore.com/-- is a bioprocess and bioscience  
products and services company.  The Bioprocess division offers
solutions that optimize development and manufacturing of
biologics.  The Bioscience division provides high performance
products and application insights that improve laboratory
productivity.  The company has worldwide offices, including in
Japan, Austria, and Argentina.


NUANCE COMMS: 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 U.S. Technology Software sectors this week,
the rating agency confirmed its B2 Corporate Family Rating for
Nuance Communications, Inc.

Additionally, Moody's revised or held 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$75 Million
   Senior Secured
   Revolving Credit
   Facility due 2012      B1       B1      LGD3       30%

   US$355 Million
   Senior Secured
   First Lien
   due 2013               B1       B1      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-
umeric 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%).

Nuance Communications, Inc., formerly ScanSoft, Inc., is a
provider of speech and imaging solutions for business and
consumers around the world.  Its technologies, applications and
services seek to improve user experiences by changing the way
people access, share, manage and use information.

The company has offices in Japan, Australia, Belgium, Korea,
Hong Kong, India, Mexico and the United Kingdom, among others.


SHAW GROUP: Prices JPY128.98 Billion Limited-Recourse Bonds
-----------------------------------------------------------
The Shaw Group Inc. disclosed that its wholly-owned subsidiary,
Nuclear Energy Holdings, L.L.C., has priced its private offering
of yen-denominated JPY128.98 billion face amount of limited-
recourse bonds being marketed to investors in Japan and
elsewhere outside the United States, to be used to finance its
acquisition of 20% of the Westinghouse Acquisition Companies.

The bonds are to be issued in two tranches, a floating-rate
tranche and a fixed-rate tranche; and will mature March 15,
2013. The JPY78 billion (equivalent to approximately US$653
million) floating-rate tranche is to be issued with a floating
coupon rate of 0.70% above the six-month Yen LIBOR rate.  NEH
has entered into a separate hedging transaction that fixes the
interest cost on the floating-rate bonds.  The JPY50.98 billion
(equivalent to approximately US$427 million) fixed-rate tranche
is to be issued with a coupon rate of 2.20%. T he bond
transaction is expected to close on Friday, October 13, 2006,
subject to customary closing conditions.

The limited-recourse bonds will be secured by the assets of and
100% of the membership interests in NEH, its shares in the
Westinghouse Acquisition Companies, along with the corresponding
Toshiba option, a US$36 million letter of credit established by
Shaw for the benefit of NEH and a letter of credit to secure the
payment of bond interest.  The initial Interest LC (previously
estimated to be approximately US$91 million) will be established
at approximately US$113 million, which now includes an
approximately US$14 million withholding tax reserve.

NEH will use the proceeds from the bond offering plus
approximately US$30 million of cash for the purchase of the 20%
interest in the Westinghouse Acquisition Companies.  Because of
market conditions, the effective interest rate on the bonds is
slightly higher than previously estimated.  Shaw expects the
Westinghouse Acquisition Companies transaction to occur in
October, 2006, subject to customary closing conditions.  Shaw
estimates its fees and expenses for the acquisition transaction,
including the bond offering, to approximate US$20 million.  In
the event the acquisition were not to occur, NEH would repay the
proceeds to the bondholders and cancel the related transactions,
and would incur certain additional expenses.

Headquartered in Baton Rouge, LA, The Shaw Group Inc. --
http://www.shawgrp.com/-- is a global provider of services to  
the environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers.  It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries.  The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution.  In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Japan, Chile, China, Malaysia, the
United Kingdom and, Venezuela, among others.

Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating and other ratings for The Shaw Group Inc. on
CreditWatch with negative implications.


SOFTBANK CORP: S&P Affirms BB- Rating on EUR500-Million Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' rating on
Softbank Corp.'s EUR500 million euro-denominated senior
unsecured notes due Oct. 15, 2013.  The coupon rate is 7.75%.
The rating on the bonds was assigned on Sep. 27 and the terms
and conditions of the subordinated bonds were confirmed
[Tues]day.

The rating on Softbank reflects the company's weak capital
structure, which deteriorated after the company's debt-financed
purchase of Vodafone K.K. (now Softbank Mobile Corp.).  However,
the company's overall earnings are improving, and this should
lower the chances of further deterioration in its capital
structure.  Given the company's relationship with its lender
financial institutions and its latent profits on securities, its
refinancing and liquidity risks should be limited.


SOFTBANK CORP: Announces Terms For Issue of Senior Notes
--------------------------------------------------------
Softbank Corporation disclosed that it has determined the terms
of issue of its euro-denominated Senior Notes due year 2013,
issuance of which was resolved by the company's board of
directors on September 26, 2006, according to a company press
release.

In sum, the terms are:

   1. Aggregate amount of issue: EUR500 million (Yen equivalent:
      approximately JPY74.8 billion, exchange rate: EUR1 =
      JPY149.69)

   2. Price at issue: 99.335% of par

   3. Coupon rate: 7.75%  (Yen equivalent: approximately 5.2%)

   4. Closing date:  October 12, 2006.

   5. Credit rating:
      BB  - Standard & Poor's
      Ba2 - Moody's Investors Service

The notes will not be registered under the Securities and
Exchange Law of Japan, as amended, and will not be offered or
sold, directly or indirectly, in Japan or to, or for the benefit
of, any resident of Japan (including Japanese corporations),
except as permitted under any applicable laws of Japan.

The notes will not be registered under the United States federal
securities laws or the securities laws of any other
jurisdiction.  The Notes will be offered and sold only to
persons outside the U.S. in accordance with Regulation S under
the U.S. Securities Act of 1933, as amended (the "U.S.
Securities Act").  Notes may not be offered or sold in the U.S.
absent registration or an exemption from registration under the
U.S. Securities Act.  This announcement is not an offer of
securities for sale in the United States.

This disclosure announcement is directed only at persons who:

   i. are outside the United Kingdom or

  ii. have professional experience in matters relating to
      investments or

iii. are persons falling within Article 49(2)(a) to (d) of the
      Financial Services and Markets Act 2000 (Financial
      Promotion) Order 2005.

                   About Softbank Corporation

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

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


SOFTBANK MOBILE: Says Mobile Phone Users Rise 23,400 in Sept.
-------------------------------------------------------------
Softbank Mobile Corp., the cellular phone unit of Softbank
Corp., has said that it gained a net 23,400 subscribers to its
mobile phone service in September 2006.

The service, which changed its name from Vodafone on October 1,
2006, had about 15.3 million users as of the end of September,
the company said.

Subscribers to its third-generation cellular phone service rose
a net 227,400 to about 4.56 million.

                   About Softbank Corporation

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.

                     About Softbank Mobile

Headquartered in Tokyo, Japan, Softbank Mobile Corp. --
http://www.softbankmobile.co.jp/-- offers mobile voice, data,  
and wireless Internet services throughout Japan.  Formerly known
as Vodafone K.K. and operated as Vodafone Japan, the island
country's #3 wireless carrier (behind giants NTT Docomo and
KDDI) has more than 15 million subscribers with more than 85%
also subscribing to Vodafone live!, the company's interactive
mobile service. The company also offers innovative "movie sha-
mail," its popular photo-messaging service using mobile
handsets.  UK-based Vodafone Group sold its 98% stake in
Vodafone K.K. to SOFTBANK in a deal valued at nearly US$16
billion.

The Troubled Company Reporter - Asia Pacific reported on Oct. 4,
2006, that Standard & Poor's Ratings Services said that its
'BB+' long-term ratings on Softbank Mobile Corp., which was
renamed from Vodafone K.K. on Oct. 1, 2006, remain on
CreditWatch with negative implications.


SUMITOMO MITSUI BANKING: Parent Cancels JPY195B Pref. Stock
-----------------------------------------------------------
Sumitomo Mitsui Banking Corporation's parent, Sumitomo Mitsui
Financial Group, Inc., has announced that SMFG's board of
directors decided to acquire and cancel its Type 3 preferred
stock, the company said in a press release.

The JPY 195-billion preferred stocks are owned by the Resolution
and Collection Corporation.  RCC holds 195,000 shares of Type 3
Preferred Stock, and the total amount of acquisition is set at
JPY222.24 billion.

The acquisition of the preferred stock is to be executed within
SMFG's own stock acquisition limit approved at its annual
general shareholders' meeting held in June 2006.

SMFG intends to cancel those shares of the preferred stock upon
acquisition.

In addition to the preferred stock above, 60,466 shares of SMFG
common stock are held by RCC.  Those common shares were
delivered to RCC as a result of the exercise of its right to
request acquisition with respect to part of the Type 3 preferred
stock (total issue price: JPY50 billion).  

Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui
Banking Corporation -- http://www.smbc.co.jp/-- provides   
commercial banking services including deposits, loans, foreign
exchange transactions, and correspondents banking services
around the world.  The bank also provides leasing, securities
brokerages, credit cards, consumer loans, venture capital, and
mortgage securitization services.

The Troubled Company Reporter - Asia Pacific reported on
July 17, 2006, that Moody's Investors Service has upgraded the
bank financial strength rating of Sumitomo Mitsui Banking
Corporation to D+ from D.

A subsequent TCR-AP report on Oct. 3, 2006, stated that Fitch
Ratings has affirmed Sumitomo Mitsui's Individual Rating at C/D.


SUMITOMO REALTY: Profit More Than Doubles Year Ending March
-----------------------------------------------------------
Sumitomo Realty & Development Co., Ltd., posted a
JPY646.5-billion revenue from operations in the fiscal year
ending March 31, 2006, up 4.9% from the year before, the company
said in its annual report.

The cost of revenue from operations rose 3.6% to
JPY487.8 billion and gross profit increased 9.1% to
JPY158.7 billion.

Net income more than doubled, rising 109.1% to JPY32.5 billion.

As of March 31, 2006, total assets amounted to JPY2.46 trillion,
increasing 15.2% from the previous fiscal year-end.  Total
liabilities amounted to JPY2.07 billion as of March 31, 2006

Headquartered in Tokyo, Sumitomo Realty & Development Co., Ltd.
-- http://www.sumitomo-rd.co.jp/-- is a Japan-based real estate  
company.  The company operates in five business segments.  The
Real Estate Leasing segment is engaged in the leasing of office
buildings and condominiums, as well as providing leasing
services for special purpose companies (SPCs). The Real Estate
Sales segment is engaged in the sale of condominiums, buildings,
detached houses and other properties.  This segment also
provides real estate maintenance services.  The Complete
Construction segment is engaged in the construction work of
residential homes, as well as refurbishment work.  The Real
Estate Distribution segment is involved in the provision of real
estate brokerage services.  The Others segment is engaged in the
operation of fitness clubs and restaurants, as well as the
finance business.

On February 14, 2006, Moody's Investor Service assigned a Ba1
rating on Sumitomo Realty & Development Co Ltd's senior
unsecured debt.


TAIHEIYO CEMENT: Posted Net Income of JPY616M for First Qtr
-----------------------------------------------------------
Taiheiyo Cement Corporation posted a net income of
JPY616 million for the first quarter of the fiscal year ending
March 31, 2006, a turnaround from the net loss of
JPY19.65 billion the company recorded a year before.

Net sales went up 2.9% for the quarter in review, from
JPY211.06 billion to JPY214.15 billion.  Operating income
amounted to JPY11.54 billion, an improvement of 17.9%, while
ordinary income improved 12.4% to JPY8.20 billion for the first
quarter of the fiscal year ending March 31, 2006.

As of March 31, 2006, the company had total assets amounting to
JPY1.25 trillion, while its shareholders' equity amounted to
JPY300.62 billion.

                     About Taiheiyo Cement

Headquartered in Tokyo, Japan, Taiheiyo Cement Corporation --
http://www.taiheiyo-cement.co.jp/-- formed by the 1998  merger  
of Chichibu Onoda Cement and Nihon Cement, is Japan's leading
cement manufacturer.  Taiheiyo's other interests include
minerals and aggregates, construction materials (ready-mix  
concrete and concrete products), and real estate.  The company
also operates materials recycling businesses that include the  
conversion of sewage sludge from power plants.  Taiheiyo  
provides real estate management services in the Tokyo area.    

The Troubled Company Reporter - Asia Pacific reported on
February 9, 2006, that Standard & Poor's Rating Services
assigned its 'BB' long-term corporate credit and senior
unsecured debt ratings to Taiheiyo Cement Corporation.  The
outlook on the long-term corporate credit rating on the company
is stable.  The outlook on the long-term corporate credit rating
is stable.  


TAIHEIYO CEMENT: Targest JPY23 Billion for Fiscal Year 2007
-----------------------------------------------------------
Taiheiyo Cement Corporation forecasts a JPY915.00-billion
consolidated sales for the fiscal year ending March 31, 2007,
the company announces on its Web site.

The company consequently expects operating income of
JPY68.84 billion and a net income of JPY23.00 billion for the
fiscal year ending March 31, 2007.

                     About Taiheiyo Cement

Headquartered in Tokyo, Japan, Taiheiyo Cement Corporation --
http://www.taiheiyo-cement.co.jp/-- formed by the 1998  merger  
of Chichibu Onoda Cement and Nihon Cement, is Japan's leading
cement manufacturer.  Taiheiyo's other interests include
minerals and aggregates, construction materials (ready-mix  
concrete and concrete products), and real estate.  The company
also operates materials recycling businesses that include the  
conversion of sewage sludge from power plants.  Taiheiyo  
provides real estate management services in the Tokyo area.    

The Troubled Company Reporter - Asia Pacific reported on
February 9, 2006, that Standard & Poor's Rating Services
assigned its 'BB' long-term corporate credit and senior
unsecured debt ratings to Taiheiyo Cement Corporation.  The
outlook on the long-term corporate credit rating on the company
is stable.  The outlook on the long-term corporate credit rating
is stable.  


TOCHIGI BANK: Posts JPY4-Billion Income for Full Year 2005-2006
---------------------------------------------------------------
The Tochigi Bank, Ltd., posted a net income of JPY4.35 billion
for the fiscal year ended March 31, 2006, up from the
JPY2.43 billion it posted a year before, according to the
company's financials.

Total income amounted to JPY57.20 billion, while total expenses
amounted to JPY49.65 billion.

As of March 31,2006, the bank had total assets of
JPY2.2 trillion, and total stockholders' equity amounted
JPY115.40 billion.  The bank had JPY2.09 trillion in deposits,
JPY1.36 trillion in loans and bills discounted, and
JPY670.22 million in securities as of March 31, 2006.

Headquartered in Tochigi Prefecture, The Tochigi Bank, Ltd. --
http://www.tochigibank.co.jp/-- is a regional bank, which  
mainly provides financial products and services for corporate
and individual clients.  The bank operates in four business
segments.  The Banking segment is engaged in the provision of
deposit services, fund transfer services, foreign exchange
services, loan services, securities investment services, bonds
services and other banking services.  The Credit Guarantee
segment is engaged in the provision of housing loan services.  
The Leasing segment is engaged in equipment leasing services.  
The Card segment is engaged in the provision of credit card
services.

Fitch Ratings gave Tochigi Bank a 'C' individual rating on
January 31, 2006.


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

CONMED CORPORATION: 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, the rating agency confirmed its Ba3 Corporate

Family Rating for ConMed Corporation.  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
   ----------           -------  -------  ------   ----------
   
   Senior Secured
   Revolving Credit
   Facility due 2011      Ba2      Ba2      LGD2       30%

   Senior Secured
   Term Loan B
   due 2013               Ba2      Ba2      LGD2       30%

   Senior Subordinated
   Convertible Notes
   due 2024                B2       B2      LGD5       85%

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 Utica, New York, Conmed Corp. (Nasdaq: CNMD) --
http://www.conmed.com/-- is a medical technology company with  
an emphasis on surgical devices and equipment for minimally
invasive procedures and monitoring.  The company's products
serve the clinical areas of arthroscopy, powered surgical
instruments, electrosurgery, cardiac monitoring disposables,
endosurgery and endoscopic technologies. They are used by
surgeons and physicians in a variety of specialties including
orthopedics, general surgery, gynecology, neurosurgery, and
gastroenterology.  The company's 3,100 employees distribute its
products worldwide from several manufacturing locations.

The company has operations in Australia, Canada, Deutschland,
France, Europe, Belgium, Spain, the United Kingdom and Korea,
among others.


HYNIX SEMICONDUCTOR: Completes Construction of US$2-Bil. Plant
--------------------------------------------------------------
Hynix Semiconductor Inc. and STMicroelectronics NV completed the
construction of their US$2-bilion front-end memory-manufacturing
facility at Wuxi City, in Jiangsu Province, China.

The chip-making facility is a joint venture of Hynix and
STMicro, which agreement they entered into in November 2004.  
Under the pact, Hynix will contribute US$500 million for a 67%
equity interest and STMicro will contribute US$250 million for
the remaining 33% interest.

The plant's construction started in April 2005 right after the
companies were granted business license for the venture.

Citing a construction project manager, Semiconductor Fabtech Web
portal describes the plant as having "the size of 22 American
football fields and over 700,000 square feet of built and
planned manufacturing facilities."  The facility is believed to
be the largest in China.

According to the Korea government's Web site, the companies
entered into the deal to grab a bigger slice of the memory chip
market in China.

"For Hynix, the Wuxi plant was a desperate choice to avoid
countervailing tariffs from the United States and Japan,"
Korean.net points out.

Hynix may consider investing more to upgrade the plant's
facilities earlier than scheduled, depending on market
situations, the Korean site adds.

The Troubled Company Reporter - Asia Pacific reported on
Aug. 16, 2006, that the joint venture raised US$750 million in
syndicated loans to finance the construction of a new memory
chip line in the Wuxi plant.

                   About STMicroelectronics

STMicroelectronics N.V., headquartered in Geneva, is a global
independent semiconductor company that designs, develops,
manufactures and markets a range of semiconductor products.  It
operates through three product segments: Application Specific
Product Group, Memory Products Group, and Micro, Linear and
Discrete Group.

                   About Hynix Semiconductor

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.


WOORI BANK: Most Profitable Lender in 2007, President Says
----------------------------------------------------------
Woori Bank will be the most profitable lender in 2007 with the
successful programs it conducted to improve its profitability,
The Korea Times reports, citing the Bank's president, Hwang
Young-key.

In the fourth quarter this year, the Bank will continue to
engage in aggressive expansion, Mr. Hwang continued.

Mr. Hwang pointed out to the Times how very well the Bank
performed in September this year -- having KRW177 trillion in
assets by the end of that month, an increase of KRW37 trillion
from the end of last year.  The Bank president also boasted of
its market share in the credit card segment in September --
gaining 80,000 new customers, twice the monthly customer rise.

"Our growth will continue through next year," The Times quoted
Mr. Hwang as saying.  "I will focus more on improving
profitability to make Woori a bigger and stronger bank.  If
plans succeed, Woori will be the most profitable bank."

                        About Woori Bank

Woori Bank -- http://www.wooribank.com/-- is a government-owned     
bank headquartered in Seoul, Korea.  The bank was established in
2002, and includes the former Hanbit Bank, Sangup Bank and Hanil
Bank.  It is a part of the Woori Financial Group.  It has
branches all over the world, including in New York, Los Angeles,
Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore,
Moscow, London, and Dhaka.

                          *     *     *

Fitch Ratings gave Woori Bank an individual rating of 'B/C'
effective July 20, 2005.

Moody's Investors Service gave Woori a 'D+' Bank Financial
Strength Rating effective March 14, 2006.


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

AKTIF LIFESTYLE: Appeals Committee to Rule on Extension Request
---------------------------------------------------------------
As previously reported by the Troubled Company Reporter - Asia
Pacific, Aktif Lifestyle Corporation Bhd sought to extend to
December 30, 2006, the deadline for the company to submit
necessary applications to regularize its financial conditions to
relevant authorities.  The company applied for the extension to
identify a new suitable white knight.

In an earlier report, the TCR-AP recounted that on June 15,
2006, Aktif Lifestyle and the promoters of Strandcom MSC Berhad
executed a restructuring deal to regularize the financial
condition of Aktif and its subsidiaries.  Strandcom is the white
knight in the restructuring exercise.

However, the promoters of Strandcom later decided to withdraw
from the Restructuring Scheme asserting it was no longer in line
with their business plans.  Hence, Aktif Lifestyle's search for
a new white knight and its extension application continues.

Through a letter dated October 6, 2006, Bursa Malaysia
Securities Berhad informed the company that the request for
extension will be scheduled for consideration by the Bourse's
Appeals Committee.

The removal of Aktif Lifestyle's securities from the Bourse's
Official List will be deferred pending the decision of the
Committee, the Bourse said.

                     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.


CYGAL BERHAD: Given Five Days to Show Cause Over Delisting Issue
----------------------------------------------------------------
The Securities Commission gave Cygal Berhad five market days,
starting on October 9, 2006, to make written representations as
to why its securities should not be delisted.

In the event Bursa Securities decides to delist Cygal, its
securities will be removed from the Official List of Bursa
Securities upon expiry of seven market days from the date of
notification of the delisting decision or on another date as may
be specified by the Bourse.

If Bursa Securities decides not to delist the company, other
appropriate action or penalty may be imposed pursuant to the
Listing Requirements of Bursa Securities.

As reported by the Troubled Company Reporter - Asia Pacific on
September 20, 2006, the SC denied Cygal's application for a
final extension of time to implement the company's restructuring
plan.  Cygal appealed for another extension.  The SC's decision
on the appeal is currently pending.

                       About Cygal Berhad

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

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

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


LITYAN HOLDINGS: Appeal Defers Delisting to November 23, 2006
-------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported that the
securities of Lityan Holdings Berhad will be removed from the
official list of the Securities Commission on October 13, 2006.

In an update, Lityan Holdings informed Bursa Malaysia Securities
Berhad that the company has sought judicial review of the
Security Commission's delisting decision.  The company also
asked for an interim order to stay the SC decision.

In view of the appeal, the removal of the securities will be
deferred until November 23, 2006.

                    About Lityan Holdings

Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides     
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding.  The Group carries out its operations in
Malaysia and the Philippines.   

On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category.  On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring the Company onto stronger financial footing via an
injection of new viable businesses.  

Lityan's consolidated balance sheet as of June 30, 2006,
revealed current assets of MYR38,695,000 available to pay total
liabilities of MYR142,144,000 coming due within the next 12
months.  The company has total assets of MYR70,551,000 and total
liabilities of MYR145,676,000, resulting into a stockholders'
deficit of MYR78,839,000.  


PAN MALAYSIA CAPITAL: Regularizes Financial Condition
-----------------------------------------------------
Pan Malaysia Capital Berhad on October 10, 2006, has regularized
its financial conditions, pursuant to Practice Note 17.  

The TCR-AP recounts that the Company completed the Par Value
Reduction exercises on September 29, 2006, as part of its
efforts to regularize its financial condition.  

Accordingly, upon the completion of the Proposed Par Value
Reduction, the Company's present issued and paid-up share
capital would be reduced from MYR815.31 million to approximately
MYR326.12 million.  Based on the reduced share capital, the
Company would need to achieve revenue on a consolidated basis of
not less than approximately MYR16.34 million per annum, which
represents more than 5% of the Reduced Share Capital to
regularize its level of operations pursuant to Practice Note 17
of Bursa Malaysia Securities Berhad's Listing Requirements.

           About Pan Malaysia Capital Berhad

Pan Malaysia Capital Berhad is involved in stock and share
broking.  Its other activities include provision of corporate
advisory, research and fund management and nominee and custodian
services, options and financial futures broking, property and
investment holding and share registration.  Operations of the
Group are principally carried out in Malaysia.  The Company's
existing ordinary shares of MYR1.00 each have been trading on
the stock exchange substantially below par for a long period of
time.  The last traded price of PM Cap shares on March 1, 2006,
was MYR0.095 per share.  The Company has proposed to reduce
capital to erase its accumulated losses. Pan Malaysia Capital
was categorized by Bursa Malaysia Securities Berhad as a
Practice Note 17/2005 company due to its insignificant business
operations for the financial year ended December 31, 2005.


PAN MALAYSIA HOLDINGS: Regularizes Financial Conditions
-------------------------------------------------------
Pan Malaysia Holdings Berhad has regularized its financial
condition and no longer triggers any of the criteria under
Paragraph 2.0 of Practice Note 17/2005, the company said in a
filing with the Bursa Malaysia Securities Berhad.

As reported by the TCR-AP, the company has concluded its Capital
Reconstruction Exercise on September 29, 2006.

The Capital Reconstruction created a credit amounting to
approximately MYR870.71 million, which has been utilized to set
off the accumulated losses of the Company.  Accordingly, the
Company's audited accumulated losses of MYR872.86 million as at
December 31, 2005, have been reduced to MYR2.15 million.

Moreover, the company's financial report for the first quarter
ended March 31, 2006, reveals that it has already achieved the
requisite revenue of MYR4.66 million in the current quarter as
its revenue on a consolidated basis for the current quarter is
MYR13.75 million.  Thus, the company ceased to be an Affected
Listed Issuer under Bursa Malaysia's Practice Note 17.

             About Pan Malaysia Holdings Berhad

Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia Holdings
Berhad engaged in the provision of financial services, property
and leisure, investment holding and dealing and manufacturing
and selling of self-adhesive sticker labels.  The Group also
manufactures carton boxes and general packaging products.  Other
activities relating to financial services are stockbroking,
options and financial futures broker, research fund management
services and money lending.

As reported by Troubled Company Reporter - Asia Pacific on
March 14, 2006, Pan Malaysia Holdings has drafted a capital
reorganization plan following its admission to Bursa Malaysia's
Practice Note 17.  Pan Malaysia Holdings proposed to cancel 90
sen of the par value of each existing share of MYR1.00 each.  On
completion of the capital reconstruction, it is expected that
the Company's accumulated losses of MYR872.5 million at end-2005
would be reduced to MYR1.8 million.


=====================
N E W   Z E A L A N D
=====================

AIR NEW ZEALAND: Airport Services Division Jobs at Risk
-------------------------------------------------------
Nearly 1,700 Air New Zealand jobs are under threat, with the
company considering the outsourcing of staff in its Airport
Services Division, Newswire.co.nz reports.

Unions have advised Air New Zealand that they want to enter a
58-day consultation process over the future direction of its
Airport Services Division.

Airport Services is the part of Air New Zealand that manages
processes ranging from check-in to tarmac operations and loading
luggage for Air New Zealand and many other airlines in New
Zealand.  It employs 1,675 full-time and part-time staff based
at Auckland, Wellington, and Christchurch airports.

Group General Manager People Vanessa Stoddart says the Airport
Services business is currently facing severe challenges.

"We have been working with staff representatives for many months
to explore ways of improving the competitiveness of Airport
Services and to reduce the loss of third-party work as other
airlines operating in New Zealand move to other suppliers.  To
date the speed of progress made has not been sufficient," Ms.
Stoddart says.

"In the past two weeks, our second largest airline customer here
in New Zealand has terminated their contract, because they
perceive that Air New Zealand can no longer provide a
competitive service.  The loss of that contract could jeopardize
approximately 160 Airport Services jobs," Ms. Stoddart reveals.

On October 5, 2006, the airline met with union leaders to
outline the scale and urgency of the problem.

According to Ms. Stoddart, the meeting was an opportunity to
impress on them that if we can't rapidly address the
uncompetitive issues in our business, Airport Services will
continue to lose customers and scale, and will struggle to
remain viable.

"A key issue for Airport Services remains its current lack of
flexibility to meet customer needs due to restrictive work
practices," Ms Stoddart notes.

The union leaders were offered the opportunity to assist Air New
Zealand in finding an urgent solution to the problem.  Their
response has been to advise the airline that it should commence
a formal 58-day consultation process to resolve the future
direction of Airport Services.

"In the event that we can't develop a market competitive in-
house solution, which is our strong preference, Air New Zealand
will be forced to look to a third party airport services
provider to deliver this service, just as all other airlines
flying into and out of New Zealand do," Ms. Stoddart says.

The Engineering, Printing and Manufacturing Union represents
about 1,400 of the Air Services jobs, Newswire.co.nz says,
noting that EPMU has been working with the airline for months to
address its concerns about becoming more competitive.

Newswire.co.nz cites the union's national secretary, Andrew
Little, as saying Air New Zealand believes contractors could do
the work for about NZ$20 million less, although he disputes
that.

If Air New Zealand proceeds with an outsource of Airport
Services, it would expect the new provider to employ most of the
existing staff with more flexible terms and conditions.

                      About Air New Zealand

Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.

As reported in the Troubled Company Reporter - Asia Pacific on
September 2, 2005, Moody's Investors Service affirmed its Ba1
issuer rating on Air New Zealand Limited after the airline
announced its annual results for FY2005.  Air NZ's rating
reflected its dominant position in the New Zealand domestic
market, with around 80% market share, and the profitability of
domestic operations following their restructuring to a low-cost
network model.  Also supporting Air NZ's rating was its solid
liquidity position, with cash balances of NZ$1.071 billion held
as at June 30, 2005.

However, while Air NZ has a solid position in New Zealand and
other parts of the international network are performing well,
intense competition on trans-Tasman routes has resulted in it
being unprofitable for Air NZ.  International competition also
limits Air NZ's ability to expand.  Its management is also aware
of the airline's vulnerability to external shocks and the
actions of key competitors.


AM PM CALLING: Court Appoints Joint Liquidators
-----------------------------------------------
On September 18, 2006, the High Court at Wellington appointed
David Stuart Vance and Barry Phillip Jordan as joint and several
liquidators of AM PM Calling Ltd.

Subsequently, the Joint Liquidators require the company's
creditors to file their proofs of claims by October 16, 2006.
Failure to prove debts by the due date will exclude a creditor
from sharing in any distribution the company will make.

The Joint Liquidators can be reached at:

         David Stuart Vance
         Barry Phillip Jordan
         McCallum Petterson
         Level Eight, The Todd Building
         95 Customhouse Quay (P.O. Box 3156)
         Wellington, New Zealand
         Telephone:(04) 499 7796
         Facsimile:(04) 499 7784


ARCHEFECTS LTD: Creditors' Proofs of Debt Due on October 16
-----------------------------------------------------------
Liquidators David Stuart Vance and Barry Phillip Jordan require
creditors of Archefects Ltd, which is in liquidation, to submit
their proofs of debts by October 16, 2006.

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

The Joint Liquidators can be reached at:

         David Stuart Vance
         Barry Phillip Jordan
         McCallum Petterson
         Level Eight, The Todd Building
         95 Customhouse Quay (P.O. Box 3156)
         Wellington, New Zealand
         Telephone:(04) 499 7796
         Facsimile:(04) 499 7784


CLINTON TAXATION: Appoints Joint and Several Liquidators
--------------------------------------------------------
On September 11, 2006, shareholders of Clinton Taxation Services
Ltd appointed Dennis Clifford Parsons and Katherine Louise
Kenealy as the company's Joint and Several Liquidators.

The Joint Liquidators can be reached at:

         Dennis Clifford Parsons
         Katherine Louise Kenealy
         Indepth Forensic Limited
         Insolvency Practitioners
         P.O. Box 278, Hamilton
         New Zealand
         Telephone:(07) 957 8674
         Facsimile:(07) 957 8677


DSN HOLDINGS: Creditors' Proofs of Claim Due on October 31
----------------------------------------------------------
On September 6, 2006, shareholders of DSN Holdings Ltd appointed
Bryan George Pocock as liquidator.

Accordingly, Mr. Pockok fixed October 31, 2006, as the last day
for the company's creditors to prove their claims.

The Liquidator can be reached at:

         Bryan George Pocock
         Level Seven, 44 Victoria Street
         (P.O. Box 10-788), Wellington
         Australia
         Telephone:(04) 472 3560
         Facsimile:(04) 472 3564


HOWLING LTD: Creditors Must Prove Debts by December 11
------------------------------------------------------
On September 11, 2006, Vivian Judith Fatupaito and Richard Dale
Agnew were appointed to act as joint and several liquidators of
Howling Ltd.

Creditors are required to prove their debts to the liquidators
by December 11, 2006, or be excluded from the benefit of any
distribution the company will make.

The Troubled Company Reporter - Asia Pacific previously reported
that on September 11, 2006, the High Court of Rotorua heard the
liquidation petition filed by Hirepool Ltd against the Company.

The Joint Liquidators can be reached at:

         Vivian Judith Fatupaito
         Richard Dale Agnew
         PricewaterhouseCoopers
         Level Eight, PricewaterhouseCoopers Tower
         188 Quay Street, (Private Bag 92-162)
         Auckland, New Zealand
         Telephone:(09) 355 8000
         Facsimile:(09) 355 8013


INFINITY BAR: Creditors Must Prove Debts by October 16
------------------------------------------------------
Creditors of Infinity Bar & Niteclub Ltd are required to submit
their proofs of debts by October 16, 2006, to Liquidators Vance
and Jordan, for them to share in the company's distribution.

On September 18, 2006, the High Court at Wellington appointed
David Stuart Vance and Barry Phillip Jordan as joint and several
liquidators.

The Joint Liquidators can be reached at:

         David Stuart Vance
         Barry Phillip Jordan
         McCallum Petterson
         Level Eight, The Todd Building
         95 Customhouse Quay (P.O. Box 3156)
         Wellington, New Zealand
         Telephone:(04) 499 7796
         Facsimile:(04) 499 7784


MOUNTAIN ROAD: Creditors' Proofs of Debt Due on October 20
----------------------------------------------------------
On September 15, 2006, Arron Leslie Heath and Michael Lamacraft
were appointed as joint and several liquidators of Mountain Road
Development Company Ltd.

The Joint Liquidators, therefore, required the company's
creditors to prove their debts by October 20, 2006, or be
excluded from sharing in any distribution the company will make.

The Troubled Company Reporter - Asia Pacific reported that on
June 20, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against the company.

The Joint Liquidators can be reached at:

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


PILCHERS WATERPROOFING: Creditors' Proofs of Claim Due Oct. 20
--------------------------------------------------------------
On September 19, 2006, shareholders of Pilchers Waterproofing
Ltd appointed Arron Leslie Heath and Michael Lamacraft as joint
and several liquidators.

Consequently, the liquidators required the creditors to file
proofs of claim by October 20, 2006.  Failure to prove their
claims will exclude a creditor from sharing in any distribution
the company will make.

The Joint Liquidators can be reached at:

         Arron Leslie Heath
         Michael Lamacraft
         Meltzer Mason Heath
         Chartered Accountants
         P.O. Box 6302, Wellesley Street
         Auckland 1141
         New Zealand
         Telephone:(09) 357 6150
         Facsimile:(09) 357 6152


RAMJET CONTRACTORS: Creditors' Proofs of Claim Due on Dec. 18
-------------------------------------------------------------
Ramjet Contractors Ltd, which is in liquidation, appointed
Vivian Judith Fatupaito and Richard Dale Agnew as joint and
several liquidators on September 18, 2006.

The liquidators then required creditors of the Company to submit
their proofs of claim by December 18, 2006, or be excluded from
sharing in any distribution the company will make.

The Joint Liquidators can be reached at:

         Vivian Judith Fatupaito
         Richard Dale Agnew
         PricewaterhouseCoopers
         Level Eight, PricewaterhouseCoopers Tower
         188 Quay Street, (Private Bag 92-162)
         Auckland, New Zealand
         Telephone:(09) 355 8000
         Facsimile:(09) 355 8013


* New Zealand Insolvency Practitioners Rules Up for Discussion
--------------------------------------------------------------
On October 13, 2006, Commerce Minister Lianne Dalziel released
proposals for the regulation of insolvency practitioners,
company liquidators, and administrators after earlier
submissions on insolvency law reform overwhelmingly supported
the establishment of a regulatory framework.

"While submitters felt the great bulk of liquidations are
carried out by capable and honest practitioners, concerns were
expressed about the competence and professionalism of a minority
of practitioners," Ms. Dalziel said.

Ms. Dalziel said concerns about the lack of a regulatory
framework for insolvency practitioners had also been expressed
in submissions on the Insolvency Law Reform Bill currently
before Parliament, particularly in the proposal to introduce a
Voluntary Administration regime.

Ms. Dalziel further said that while insolvency practitioners are
a relatively small industry in New Zealand, they carried out a
specialized task which is crucial to protecting and promoting
the integrity of the corporate insolvency system, involving the
liquidation of insolvent companies, or the rehabilitation of a
company or the viable parts of a business.

"Despite undertaking such a crucial role in New Zealand
commerce, insolvency practitioners are not required to be
licensed or registered by a regulatory body with powers to
investigate possible misconduct," Ms. Dalziel clarified.  There
are some statutory requirements, but practitioners are not
required to have particular qualifications or levels of
education, nor do they have to belong to any professional
organization, Ms. Dalziel noted.

"Because of this, there is no official record of the number of
insolvency practitioners or their qualifications.  This
information gap has the potential to create problems as those
appointing practitioners may not always know whether
practitioners are competent to liquidate or rehabilitate
companies," Ms. Dalziel added.

Ms. Dalziel also also noted that the government has not decided
to introduce a regulatory framework for this small but important
profession, but "we have been persuaded to take further advice
on the matter."

The discussion document is available at http://www.med.govt.nz.

A copy of the Insolvency Law Reform Bill as reported back from
the Commerce Select Committee is available at:

http://www.parliament.govt.nz/


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

METROPOLITAN BANK: To Sell 173.62 Million Primary Shares
--------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
September 18, 2006, Metropolitan Bank & Trust Co. planned to
sell primary shares, the proceeds of which will be used to boost
its capital adequacy ratio.

The TCR-AP noted that the planned sale was postponed earlier
this year due to unfavorable market conditions, but may be
revived within the year.

A follow-up report from ABS-CBN News relates that Metrobank
plans to issue up to PHP7.1 billion (US$142 million) worth of
shares this week, ABS-CBN News reports.

Metrobank now has a market capitalization of nearly
US$1.4 billion, the report notes.

Metrobank wants to sell up to 173.62 million primary common
shares, about a tenth of its existing 1.63 billion shares,
mostly to foreign investors.  The shares would be taken from the
bank's unissued capital stock, ABS-CBN reveals.

Pricing of the share offer will be between October 12 and 14,
2006.  The price would be within plus or minus 10% of the 10-day
weighted average price of the stock, ABS-CBN cites Metrobank as
saying.

According to Manila Bulletin, Metrobank's international offer
will be held between October 18 and 20, 2006, while the domestic
sale starts on October 16, and closes on October 20.

UBS AG is the sole international underwriter, bookrunner, and
stabilizing agent of Metrobank's share offer, while First Metro
Investment Corp. is the underwriter for the domestic offering,
Manila Bulletin reveals.

                      PSE Suspends Trading

As the bank undertakes its share-offering program, the
Philippine Stock Exchange suspended trading in Metrobank from
October 11, until October 26, 2006, The Manila Bulletin reports.

                        About Metrobank

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

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

                          *     *     *

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

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

On September 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'.  All
the bank's other ratings were affirmed:

   * Long-term Issuer Default rating 'BB-' -- with a stable
     Outlook,

   * Short-term rating 'B,'

   * Support rating '3.


METROPOLITAN BANK: Grants US$40 Million Term Loan to IMI
--------------------------------------------------------
In a statement, Metropolitan Bank & Trust Co. disclosed that it
has granted a US$40-million term loan to Integrated
Microelectronics Inc., a unit of Philippine conglomerate Ayala
Corp., ABS-CBN News reports.

The report says IMI will use the proceeds from the loan for
general operations.

According to ABS-CBN News, IMI is an electronics manufacturing
solutions provider for equipment manufacturers in Asia, Europe,
and the United States.

                        About Metrobank

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

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

                          *     *     *

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

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

On September 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'.  All
the bank's other ratings were affirmed:

   * Long-term Issuer Default rating 'BB-' -- with a stable
     Outlook,

   * Short-term rating 'B,'

   * Support rating '3.


RIZAL COMMERCIAL BANKING: Fitch Gives B- Rating to Hybrid Issue
---------------------------------------------------------------
On October 12, 2006, Fitch Ratings assigned an expected rating
of 'B-' to Rizal Commercial Banking Corporation's planned hybrid
issue of up to US$100 million.  The final rating is contingent
on the receipt of final documents conforming to information
already received.

All the bank's other ratings are affirmed:

   * Long-term Issuer Default rating at 'BB-' (BB minus); and

   * Individual 'D/E' and Support '3'

The Outlook on the IDR rating is stable.

The hybrid securities will rank junior to all deposits and other
debt obligations including the bank's subordinated debt, pari
passu with the most senior class of the bank's preference shares
and other hybrid Tier-1 capital instruments of RCBC on a
consolidated basis, and senior to other classes of preference
shares and ordinary share capital.

While potentially perpetual in nature, the securities are
redeemable at the option of the bank on the 10th anniversary of
their issue.  They may also be redeemed under certain
circumstances like changes to Philippine tax laws or if the
securities no longer qualify as Tier 1 capital of RCBC due to
changes in regulatory standards.  Nevertheless, any redemption
will require prior written consent from the Philippines' central
bank, which may insist on the bank issuing new capital for
funding the redemption of the above securities, if, in its
opinion, the redemption could potentially result in the bank's
capital ratios declining below the regulatory minimum.

Interest will accrue on the securities at a fixed rate with a
step-up margin after 10 years.  At that time, interest will
change to a floating rate basis pegged to the three-month LIBOR.
Interest on the issue can be halted on a non-cumulative basis
under certain circumstances, notably if the bank's capital
adequacy ratio falls below the regulatory minimum or if its
distributable reserves -- from which the interest is to be paid
-- becomes insufficient.

The bank's CAR stood at 14.98% as of July 2006 (vs an equity-to-
assets ratio of c. 7%).  It will rise to 18.55% with the
hybrids, but then probably decline as the bank adopts more
internationally acceptable accounting criteria.  However, it is
unlikely to decline to the 10% regulatory minimum.  
Distributable reserves (PHP1,572 million as at June 2006) appear
adequate given that the annual servicing requirement.  
Furthermore, there is an additional incentive for RCBC to
service the interest payments in a timely fashion; should a
dividend on the issue be missed, RCBC would be precluded from
making any cash dividend payments on its common shares.

The rating for the issue reflects the risks of non-cumulative
interest deferral and its junior legal status in the event of
the bank's liquidation.  The purpose of the issue is to bolster
RCBC's capital base in preparation for Basel II.

Established in 1960 and listed on the Philippine stock exchange
in 1986, RCBC maintains a network of 294 branches and 252 ATMs.
Its majority shareholder is the Yuchengco group (controlled by
the Yuchengco family), a Philippine conglomerate with an
extensive portfolio of other interests.


SECURITY BANK: BSP Approves Cash Dividend Declaration
-----------------------------------------------------
On October 10, 2006, the Bangko Sentral ng Pilipinas approved
Security Bank Corporation's declaration of a regular semestral
cash dividend of PHP0.25 per share and a special cash dividend
of PHP0.50 per share.

The record date for Security Bank's PHP0.75 per share cash
dividend is on October 25, 2006, while the payment date is on
November 21, 2006.

                        About Security Bank

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

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


STENIEL MANUFACTURING: Chinatrust Offer was Exploratory
-------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
September 21, 2006, in a response to the request of the
Philippine Stock Exchange for the disclosure of the status of
Steniel Manufacturing Corporation's rehabilitation proceedings,
the company disclosed that it was still contemplating whether or
not it:

   (a) will pursue corporate rehabilitation; and

   (b) is in the best interest of Steniel and its shareholders.

However, a letter from Chinatrust (Phils.) Commercial Bank
Corporation to the Securities and Exchange Commission dated
October 10, 2006, alleged that Steniel's disclosure is false.

According to the letter, Steniel has informed Chinatrust on
July 18, 2006, that it had already decided not to seek
restructuring of the company's outstanding debts.  The letter
disclosed that through its president and chief executive
officer, Genesis Goldi D. Golingan, the company offered instead
to buy out its debts from Chinatrust at 35% of the loan value.

In its response to Chinatrust, Steniel reiterates that its
disclosure was a response to the PSE's request for an update on
its rehabilitation proceedings.  There is no falsehood in that
statement, the company says, noting that the option to enter
into rehabilitation is still a viable option.

Steniel explains that its offer to Chinatrust was exploratory
and if accepted, would have been one of the factors that it
would have considered in deciding whether or not to pursue
rehabilitation through the courts.

Steniel relates that one of the options it is considering is
extra-judicial and entails the buy-out of the company's existing
debts at a discount from its creditors.  However, given
Chinatrust's rejection to its offer, Steniel's buy-out plan
cannot be implemented and therefore the company continues to
consider all its options, including judicial rehabilitation,
should the circumstances warrant.

Steniel further explains that because the offer to Chinatrust
was merely exploratory, it was not disclosed to the PSE since it
did not constitute a perfected agreement.

                     About Steniel Manufacturing

Steniel Manufacturing Corporation -- http://www.steniel.com/--  
was incorporated in 1963 primarily to engage in manufacturing,
processing, and selling all kinds of paper products, paper board
and corrugated carton containers, and all other allied products
and processes.  The Company and its subsidiaries have
established a strong foothold in the packaging industry by
offering a broad line of packaging products from corrugated
carton boxes to paper, plastic containers, and flexible
packaging.  STN stands as the single largest independent
manufacturer of corrugated fibreboard containers in the
Philippines.  About 99% of its revenues come from the corrugated
packaging business while the remaining 1% is from rigid
plastics.

On October 30, 2000, Metro Pacific Corporation and Philippine
International Paper Corporation entered into a Sale and Purchase
Agreement with Steniel (Netherlands) Holdings B.V. whereby all
the 636,193,025 common shares collectively owned by MPC and PIPC
representing approximately 72.6% of the issued and outstanding
capital stock of the company were sold to Steniel (Netherlands)
in accordance with the terms and conditions provided for in the
SPA.

                          *     *     *

Steniel Manufacturing did not meet its maturing obligations due
as of December 31, 2005, to certain lender banks.  Management
has submitted its proposed plans and programs for the repayment
of the loans, which include, among others, the disposal of idle
assets of subsidiary companies, proceeds of which will be used
to pay off the loans, and extension of the repayment term of the
loans.


* ING Bank Expects 2006 Inflation to Hit 6.5%
---------------------------------------------
ING Bank has cut its inflation forecast for the Philippines on
continued easing of oil prices, Malaya reports.

Malaya relates that in its latest outlook for the country, ING
said the Bangko Sentral ng Pilipinas may cut its rates sooner
than expected as inflation sustains its downtrend.

According to the paper, ING expects inflation to hit 6.5% for
2006, which is lower than the BSP's forecast of 6.9%-7%.

For 2007, ING cut its forecast to 4.7% from 5% on "softer crude
prices," the paper adds, noting that the BSP is expecting a
4.3%-4.8% average in 2007, within its 4%-5% target.

ING said the drop in inflation hikes the chance of the central
bank "easing sooner than our December expectation," Malaya
relates.

"The likelihood of monetary easing rises further if external
interest rate environment becomes more favorable," ING further
said.

Malaya notes that ING expects the U.S. Fed to cut its policy
rate by 25 basis points before the year ends.  But ING said the
peso will continue to remain strong despite a rate cut because
of inflows.

"The threat of a significant rate cut on the peso would be
partially offset with the onset of the seasonally high OFW
remittance inflows.  These inflows would likely match a gradual
reversal of portfolio inflows," Malaya cites ING, as saying.

                         *     *     *

"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
=================

AAR CORP: Settlement Amount For Mich. Plant Violations Pending  
--------------------------------------------------------------
AAR Corp. and its subsidiary, AAR Manufacturing Inc., are
waiting for the Michigan Department of Environmental Quality to
finalize a settlement amount in settlement of violations at the
subsidiary's Cadillac, Michigan, plant.

AAR Manufacturing earlier received an "Administrative Order for
Response Activity," dated August 7, 2003, from the MDEQ relating
to environmental conditions at the Cadillac plant.  The order
requires AAR Manufacturing to perform environmental
investigatory work, prepare a feasibility study and a remedial
action plan, and perform interim response actions.

A letter dated June 14, 2002 from the MDEQ further demands
payment of its environmental response costs of US$525,000 plus
interest, and reimbursement of its future unspecified costs. The
order and the letter accompanying it threaten the imposition of
civil fines up to US$25,000 for each day of violation, plus
exemplary damages up to three times the costs incurred by the
MDEQ if the subsidiary does not comply with the order.

On March 31, 2005, the MDEQ field a complaint in Cadillac,
Michigan with the Wexford County Circuit Court.  The case,
styled "Michigan Department of Environmental Quality v. AAR
Cadillac Manufacturing, a division of AAR Manufacturing Group,
Inc., an Illinois corporation, and AAR Corp., a Delaware
corporation, File No. 05-18853-CE," sought to enforce the order
against the subsidiary and to have the Court impose civil fines
andexemplary damages on the subsidiary for the alleged failure
to comply with the order.

The MDEQ sought:

-- To recover US$2,200,000 in costs incurred in performing
   response activities from both AAR Manufacturing and the
   Company;

-- A declaratory judgment that the Company and AAR Manufacturing
   are liable for all future costs incurred by the State at the
   facility; and

-- Civil fines from AAR Manufacturing for alleged violations of
   a particular section of a Michigan environmental law.

On June 17, 2005, AAR Manufacturing also sought reimbursement of
its costs for US$200,000 incurred in complying with the order
from the State cleanup and redevelopment fund established under
Michigan law, plus costs and attorney fees.  As of May 31, 2006,
the subsidiary has charged to operations about US$1,275,000
related to this matter.

On Jan. 31, 2006, the MDEQ issued a letter of violation to AAR
Manufacturing for allegedly failing to timely complete testing
of capture and destruction efficiency of emissions at the
Cadillac plant.  AAR Manufacturing later negotiated a proposed
administrative consent order with the MDEQ Air Quality Division
to resolve the matter.

AAR Manufacturing and the MDEQ subsequently obtained additional
testing data indicating possible additional violations.  Because
of that newly discovered additional data, the MDEQ withdrew the
proposed administrative consent order.

Meanwhile, the MDEQ has stated that it will demand a larger
settlement amount from AAR Manufacturing compared to the
US$15,000 under the proposed administrative consent order.  
However, it has not yet specified how much larger that amount
will be.

AAR Corp., (NYSE: AIR) -- http://www.aarcorp.com/-- provides  
products and value-added services to the worldwide
aviation/aerospace industry.  With facilities and sales
locations around the world, AAR uses its close-to-the-customer
business model to serve airline and defense customers through
Aviation Supply Chain; Maintenance, Repair and Overhaul;
Structures and Systems and Aircraft Sales and Leasing.  In Asia
Pacific, the company has offices in Singapore, China, Japan and
Australia.

                          *     *     *

Standard & Poor's Ratings Services assigned its 'BB-' rating to
AAR Corp.'s 1.75% US$125 million convertible senior notes due
2026 sold via SEC Rule 144A with registration rights.  At the
same time, Standard & Poor's affirmed its ratings, including the
'BB-' corporate credit rating, assigned effective June 16, 2003,
on the aviation support services provider.  S&P said the rating
outlook is stable.


ADVANCED MICRO: Planned ATI Merger Gets Clearance in Taiwan
-----------------------------------------------------------
Advanced Micro Devices, Inc., and ATI Technologies Inc.,
disclosed that the Fair Trade Commission of Taiwan has cleared
the proposed acquisition of ATI by AMD.

The proposed acquisition, announced on July 24, 2006, still
remains subject to the approval of ATI shareholders, court
approval of the plan of arrangement, approval by the Minister of
Industry under the Investment Canada Act and other customary
closing conditions.  Subject to satisfaction or waiver of these
conditions, the transaction is expected to be completed prior to
the end of October 2006.

                          About ATI

ATI Technologies Inc. designs and manufactures 3D graphics, PC
platform technologies and digital media silicon solutions.  With
fiscal 2005 revenues of US$2.2 billion, ATI has approximately
4,000 employees in the Americas, Europe and Asia.

                          About AMD

Headquartered in Sunnyvale, California, Advanced Micro Devices,
Inc. -- http://www.amd.com/-- designs and manufactures  
microprocessors and other semiconductor products.

The company has a facility in Singapore.  It has sales offices
in Belgium, France, Germany, the United Kingdom, Mexico and
Brazil.

Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on Sunnyvale, California-based Advanced Micro
Devices Inc.

Standard & Poor's removed the rating from CreditWatch negative
where it had been placed on July 24, 2006, following the
announced acquisition of unrated ATI Technologies Inc.  The
ratings outlook is negative.

At the same time, the rating agency assigned its 'BB-' bank loan
rating, one notch above the corporate credit rating, and a '1'
recovery rating to the company's proposed US$2.5 billion senior
secured term loan, to be used as partial funding of the
acquisition.

The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's also raised its rating on the company's
US$600 million (US$390 million outstanding) senior notes to 'B+'
from 'B', because the company plans to withdraw its shelf
registration which structurally subordinated the notes.  
Concurrent with the closing of the new bank loan and pursuant to
a debt incurrence test in the indenture for the notes, the notes
will become pari passu to the bank loan and the note rating will
become 'BB-' with a '1' recovery rating.

Moody's Investors Service assigned a Ba3 rating to Advanced
Micro Device's US$2.5 billion senior secured bank facility while
confirming the Ba3 corporate family rating and Ba3 rating on the
company's US$390 million senior notes due 2012.  The ratings
reflect both the overall probability of default of the company,
to which Moody's assigns a PDR of Ba3, and a loss given default
of LGD3 for both the new bank facility and the US$390 million
senior notes both of which will share the same collateral and
security package.  The rating outlook is stable.


SERENA SOFTWARE: 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 U.S. Technology Software sectors this week,
the rating agency confirmed its B2 Corporate Family Rating for
Serena Software, Inc.

Additionally, Moody's revised or held 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$75 Million
   Senior Secured
   Revolving Credit
   Facility due 2012      B1       B1      LGD3       33%
   US$400 Million
   Senior Secured
   First Lien
   due 2013               B1       B1      LGD3       33%

   US$200 Million
   Senior Subordinated
   Note due 2016         Caa1     Caa1     LGD5       87%

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 San Mateo, California, Serena Software, Inc. --
http://www.serena.com/-- is a software provider focused solely  
on the design, development, marketing and support of software
used to manage and control change in organizations.

The company has its international headquarters in Singapore, and
the United Kingdom.


SYNIVERSE TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg.
---------------------------------------------------------------
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. Technology Software sectors this week,
the rating agency confirmed its Ba3 Corporate Family Rating for
Syniverse Technologies, Inc.

Additionally, Moody's revised or held 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$42 Million
   Senior Secured
   Revolving Credit
   Facility due 2011      Ba3      Ba1     LGD2       24%

   US$240 Million
   Senior Secured
   First Lien             Ba3      Ba1     LGD2       24%

   US$175 Million
   Senior Subordinated
   Note due 2013          B2       B1      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%).

Based in Tampa, Florida, Syniverse Technologies, Inc. --
http://www.syniverse.com/-- provides technology outsourcing to  
wireless telecommunications carriers.

The company has its international offices in the Netherlands,
China, Japan and Singapore, among others.


TARGUS GROUP: S&P Affirms 'B' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
laptop case and computer accessory provider Targus Group
International Inc. to negative from stable.

Ratings on the company, including the 'B' corporate credit
rating, were affirmed.

As of June 30, 2006, Anaheim, California-based Targus Group had
about US$290.2 million of total debt outstanding, which excludes
pay-in-kind notes and operating lease obligations.

"The revised outlook reflects weaker-than-expected profitability
and free cash flow resulting from challenging operating
conditions, including an unfavorable working capital environment
and higher commodity and fuel costs, in addition to a less
favorable product mix -- all of which have contributed to a
decline in credit protection measures," explained Standard &
Poor's credit analyst Mark Salierno.

The 'B' rating on the company reflects Targus' highly leveraged
pro forma capital structure.  It also reflects:

   * the highly competitive operating environment and price-
     sensitive nature of the laptop computer case and accessory
     business;

   * technology risk within the accessories product line;

   * some customer concentration across the three distribution
     channels; and

   * vulnerability to weak economic and retail environments.

These risks are somewhat mitigated by the company's leading
market share in laptop cases and certain computer accessories,
existing customer relationships, and favorable trends relating
to growth in laptop sales.

Targus has operations in the Asia Pacific, specifically in
Australia & New Zealand, China, Hong Kong, Japan, Korea, and
Singapore.


TELCORDIA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg.
---------------------------------------------------------------
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. Technology Software sectors this week,
the rating agency confirmed its B1 Corporate Family Rating for
Telcordia Technologies, Inc.

Additionally, Moody's revised or held 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$100 Million
   Senior Secured
   Revolving Credit
   Facility due 2011      B1       Ba3     LGD3       31%

   US$570 Million
   Senior Secured
   First Lien
   due 2012               B1       Ba3     LGD3       31%

   US$300 Million
   Senior
   Subordinated
   Notes due 2013         B3       B3      LGD5       86%

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 Piscataway, New Jersey, Telcordia Technologies,
Inc. -- http://www.telcordia.com/-- provides operations systems  
support software and network systems products for
telecommunications providers.  The company has sales offices in
Singapore, Mexico, Brazil, and the United Kingdom, among others.


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

KASIKORN BANK: Expects Drop in Bad Loans by Year End
----------------------------------------------------
Kasikornbank expect its non-performing loan ratio to fall to 6%
or down to THB40 billion by the end of this year, The Bangkok
Post reports, citing the bank's president, Prasarn
Trairatvorakul.

"New-entry NPLs are rising due to high oil prices and business
activities dropping," Mr. Prasarn said, adding that they will
pull it down.

Kasikorn's NPL ratio was 6.7% at the end of June 2006, down from
6.89% at the end of March, The Post notes.

The paper also recounts that Mr. Prasarn said last month that
the improved lending in the third quarter should make full-year
targets achievable after a weak first half during the long
political crisis.

The bank aimed for loan growth of 6% to 9% this year, he added.

Kasikorn Bank Public Company Limited --
http://www.kasikornbank.com/-- otherwise known as the Thai  
Farmers Bank, was established in 1945 with registered capital of
THB5 million and has been listed on the Stock Exchange of
Thailand since 1976.  It is Thailand's fourth largest bank, with
total assets of THB844 billion (US$22 billion) as at end June
2006.

The bank currently carries Moody's Bank financial strength
rating of D+.

Fitch Ratings Services placed on September 19, 2006, the ratings
of Kasikorn on Rating Watch Negative pending a resolution of the
political crisis that triggered the coup in Thailand.

Ratings affected are:

    * Long-term foreign currency IDR BBB+;
    * Short-term foreign currency F2;
    * Individual C;
    * Support 2; and
    * Subordinated debt BBB


KRUNG THAI: Former Head to Receive Verdict Next Month
-----------------------------------------------------
The Administrative Court of Thailand will deliver its verdict
regarding the high-profile dispute between Krung Thai Bank's
former president, Viroj Nualkhair, and the Bank of Thailand on
November 29, 2006, The Bangkok Post reports.

In October 2004, The Post recounts, the central bank blacklisted
Mr. Viroj from working at any local financial institutions or
listed companies due to allegations of improper lending.

The order, according to The Nation, came after Mr. Viroj and
other KTB executives were implicated in unscrupulous lending of
THB9.9 billion to a number of companies whose ability to repay
was low.  The criminal case, involving loans to property
developer Krisdamahanakorn and auto manufacturer, Thonburi
Assembly, remains pending with the National Counter Corruption
Commission.

Subsequently, Mr. Viroj then filed a lawsuit seeking damages of
THB201 million against the central bank and then-governor M.R.
Pridiyathorn Devakula, charging them with abuse of authority.

However, in a court reading held on October 11, 2006, Court
Justice Prasak Siripanich said that the central bank's blacklist
should be voided as a violation of Mr. Viroj's personal rights.  
Justice Prasak also said the court would not rule on Mr. Viroj's
claim that the Bank of Thailand must pay him compensation of
about THB200 million by saying that KTB was the one who caused
the damage and not the central bank.

Justice Prasak, however, explains that under Administrative
Court rules, the court reading is a procedural motion that does
not necessarily indicate the verdict.

Asked by reporters, Mr. Viroj said that over the past two years,
the central bank's order had cost him income of THB7 million a
month.

"I have been unemployed and reluctant to meet people.  Still,
I'm confident I will receive justice," Mr. Viroj said, adding
that he would not appeal if the ruling on November 29 went
against him.  "At 59, I'm tired," he said.

Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/
-- began its operation on March 14, 1966, through the merger of
business between the Agricultural Bank Limited and the
Provincial Bank Limited with the Ministry of Finance as its
major shareholder.

The Bank provides financial assistance to large and small
business, it also renders financial assistance to other state
enterprises, both business-oriented and public utility types.  
Currently the bank is operating 511 domestic and 12 foreign
branches and representative offices.

Fitch Ratings, on September 12, 2006, affirmed the individual
C/D rating of Krung Thai Bank Public Company Limited.

The bank currently carries Moody's Investors Service's bank
financial strength rating of D.


TANAYONG PCL: Issues 4.2 Billion Shares for Capital Increase
------------------------------------------------------------
Tanayong Pcl informed the Stock Exchange of Thailand on Oct. 10,
2006, regarding its capital increase proceedings as part of its
rehabilitation program.

The company issued 4.8 billion new shares where 4.27 billion of
them were sold.  Each share was priced at THB0.50 and sold
mainly to Crossventure Holdings and K2J Holding.  The rest were
allocated to 43 creditors through a debt-to-equity swap scheme
as part of the company's business rehabilitation plan.

Tanayong expects to gain THB2.1 billion in the share sale where
the proceeds will be used to pay off the company's debts within
the next 60 days.

As a result of the capital increase activities, Keeree
Kanjanapas, executive chairman of Tanayong Plc, and his partners
directly and indirectly now hold a 38% stake in the property
development company.

The company's existing shareholders' ownership in the company
was diluted to 10% and Mr. Keeree's direct stake in the firm he
founded was reduced to a mere 0.75% after the share allocation.

Headquartered in Bangkok, Thailand, Tanayong Public Company
Limited -- http://www.tanayong.co.th/-- manages, develops and  
invests in property for both residential and commercial
purposes; investment in various infrastructure projects such as
investment in Electric Train Bangkok Mass Transit System;
ownership and operation of hotels, apartments, restaurants and
clubs; and provision of financial services and investment
holding.

The Company had been listed under the Rehabco sector --
Companies under rehabilitation -- until July 3, 2006, when the
Thailand Stock Exchange reclassified the whole sector.  
Currently, SET categorized the Company under the "non-performing
group."  Companies under the group will retain their listing
status and will be obligated to comply with certain SET
requirements.

As reported in the Troubled Company Reporter - Asia Pacific on
October 6, 2006, Tanayong has total assets of US$178.27 million
and total shareholders' equity deficit of US$734.30 million.


* Large Companies With Insolvent Balance Sheets
-----------------------------------------------

                                                      Total
                                           Total   Shareholders
                                          Assets      Equity
Company                        Ticker      ($MM)      ($MM)
------                         ------     ------   ------------

AUSTRALIA

Acma Engineering & Const.
   Group Limited                  ACX      21.39       -2.24
Allstate Explorations NL          ALX      12.65      -51.62
Austar United Communications Ltd. AUN     231.54      -52.58
Global Wine Ventures Limited      GWV      22.04       -0.84
Hutchison Telecommunications
   (Aust) Ltd.                    HTA    1696.65     -786.31
Indophil Resources NL             IRN      37.79      -69.96
Intellect Holdings Limited        IHG      23.98      -11.13
KH Foods Ltd                      KHF      62.30       -1.71
Namberry Limited                  NMB      15.12       -4.26
Orbital Corporation Limited       OEC      14.01       -4.86
RMG Limited                       RMG      22.33       -2.16
Stadium Australia Group           SAX     135.23      -41.84
Tooth & Company Limited           TTH      99.25      -74.39
Tourism, Hotels & Leisure Ltd.    TLC      15.76       -0.66


CHINA AND HONG KONG

Artel Solutions Group
  Holdings Limited                931      29.19      -18.65
Asia Telemedia Limited            376      10.89       -5.50
Anhui Feicai Vehicle Co. Ltd.     887     129.80       -7.00
Bestway International             718      25.00       -0.67
Chang Ling Group                  561      77.48      -76.83
Chengdu Book - A               600083      21.50       -3.07
China Liaoning International
  Cooperation Holdings Ltd.       638      25.79      -43.45
China Kejian Co. Ltd.              35      54.71     -179.23
Datasys Technology Holdings      8057      14.10       -2.07
Eforce Holdings Limited           943      10.31       -0.51
Everpride Biopharmaceutical
   Company Limited               8019      10.16       -2.16
Fujian Changyuan Investment
   Holdings Limited               592      31.36      -54.04
Gold-Face Holdings Limited        396      40.60      -63.11
Guangdong Meiya Group
   Company Ltd.                   529     107.16      -49.54  
Guangdong Sunrise Group
   Company Ltd-A                   30      35.98     -182.94
Guangdong Sunrise Group
   Co. Ltd-B                   200030      35.98     -182.94
Guangxi Wuzhou Zhongheng
   Group Co Ltd.                  557      62.19     -115.50
Hainan Dadonghai Tourism          613      19.74       -5.81
Hainan Dadongh-A               200613      19.74       -5.81
Hainan Overseas Chinese
   Investment Co. Ltd.         600759      32.70      -15.28
Hans Energy Company Limited       554      94.75      -10.76
Heilong Jiang Long Di Co. Ltd.    832     134.62      -61.22
Heilongjiang Sun & Field
   Science & Tech.                620      29.96      -49.18
Heilongjiang Black Dragon
   Co. Ltd.                    600187     121.30      -74.45
Hualing Holdings Limited          382     242.26      -28.15
Huda Technology & Education
   Development Co. Ltd.        600892      17.29       -0.19
Hunan Anplas Co., Ltd.            156      94.17      -65.04
Hunan GuoGuang Ceramic
   Co., Ltd.                   600286      87.44      -68.55
Innovo Leisure Recreation
   Holdings Ltd.                  703      13.68       -2.01
Jiangsu Chinese.com Co. Ltd.      805      15.86      -34.56
Jiangxi Paper Industry
   Co. Ltd                     600053      19.58      -12.80
Loulan Holdings Limited          8039      13.01       -1.04
Magnum International Holdings
   Limited                        305      10.35       -5.83
Mindong Electric Group Co., Ltd.  536      21.63       -1.50
New City (Beijing) Development
   Limited                        456     151.61      -19.15
New World Mobile Holdings Ltd     862     215.47     -126.57
Orient Power Holdings Ltd.        615     176.86      -64.20
Plus Holdings Ltd                1013      24.00       -3.15
Prosperity International
   Holdings (HK) Limited         8139      10.73       -2.45
Shandong Jintai Group Co. Ltd.  600385     19.58      -12.18
Shanghai Xingye Housing
   Company Ltd                 600603      14.90      -72.98
Shenyang Hejin Holding
   Company Ltd.                   633      83.18      -20.87
Shenz China Bi-A                   17      39.13     -224.64
Shenz China Bi-B                   17      39.13     -224.64
Shenzhen Dawncom Business Tech
   And Service Co., Ltd           863      79.84      -37.30
Shenzhen Shenxin Taifeng Group
   Co. Ltd.                        34      95.27      -44.65
Shenzen Techo Telecom Co., Ltd.   555      14.84       -6.25  
Sichuan Changjiang Packaging
   Holding Co. Ltd.            600137      13.11      -72.76
Sichuan Topsoft Investment
   Company Limited                583     113.12     -148.61
SMI Publishing Group Ltd.        8010      10.48       -7.83
Songliao Automobile Co. Ltd.   600715      49.56       -3.76
Sun's Group Manufacturing
   Company Limited                988     103.02      -72.80
Taiyuan Tianlong Group Co.
   Ltd                         600234      13.47      -87.63
Theme International
   Holdings Limited               990      22.46       -0.77
UDL Holdings Limited              620      12.48       -7.15
Wealthmark International
   (Holdings) Limited              39      11.32       -2.43
Winowner Group Co. Ltd.        600681      38.03      -62.88
Xinjiang Hops Co. Ltd          600090     101.34     -135.99
Yantai Hualian Development
   Group Co. Ltd.              600766      59.99       -7.66
Yueyang Hengli Air-Cooling
   Equipment Inc.                 622      49.89      -17.71
Zarva Technology Co. Ltd.         688     101.76     -102.01


INDIA

PT Dharmala Intiland             DILD     197.91       -6.62


INDONESIA

Ades Waters Indonesia Tbk        ADES      21.35       -8.93
Bukaka Teknik Utama Tbk          BUKK      44.45     -107.00
Hotel Sahid Jaya                 SHID      71.05       -4.26
Jakarta Kyoei Ste                JKSW      44.72      -38.57
Mulialand Tbk                    MLND     160.45      -19.82
Multibreeder Adirama Indonesia   MBAI      64.54       -2.31
Pakuwon Jati Tbk                 PWON     188.41      -50.78
Panca Wiratama Sakti Tbk         PWSI      39.72      -18.82
PT Toba Pulp Lestrari Tbk        INRU     403.58     -198.86
PT Voksel Electric Tbk           VOKS      44.01      -11.74
PT Wicaksana Overseas
   International Tbk             WICO      84.36      -32.88
Sekar Bumi Tbk                   SKBM      23.07      -41.95
Steady Safe Tbk                  SAFE      19.65       -2.43
Suba Indah Tbk                   SUBA      85.17       -9.18
Surya Dumai Industri Tbk         SUDI     105.06      -30.49
Unitex Tbk                       UNTX      29.08       -5.87


JAPAN

Hanaten Co., Ltd.                9870     167.79       -1.63
Mamiya-OP Co., Ltd.              7991     152.37      -67.11
Montecarlo Co. Ltd.              7569      66.29       -3.05
Nihon Seimitsu Sokki Co., Ltd.   7771      23.82       -1.10
Sumiya Co., Ltd.                 9939      89.32      -11.57
Tenryu Lumber Co., Ltd.          7904     187.75      -44.48
Tokai Aluminum Foil Co., Ltd.    5756     106.49      -12.55
Yakinikuya Sakai Co., Ltd.       7622      79.44      -11.14


MALAYSIA

Antah Holdings Bhd                ANT     184.65      -98.29
Ark Resources Berhad              ARK      25.91      -28.35
CHG Industries Bhd                CHG      25.95      -41.38
Cygal Bhd                         CYG      58.47      -69.79
Comsa Farms Bhd                   CFB      63.60       -5.00
Consolidated Farms Berhad       CFARM      36.32      -17.21
Emico Holdings Bhd                EMI      42.56       -1.92
Jin Lin Wood Industries Berhad    JLW      21.68       -1.74
Kig Glass Industrial Berhad       KIG      15.76      -24.61
Lankhorst Bhd                    LKHT      25.91      -28.35
Mentiga Corporation Berhad       MENT      22.13      -18.25
Metroplex Bhd                     MEX     323.51      -49.28
Mycom Bhd                         MYC     227.68     -114.64
Lityan Holdings Bhd               LIT      22.22      -19.11
Olympia Industries Bhd           OLYM     255.84     -227.85
Pan Malay Industries             PMRI     199.08       -6.30
Panglobal Bhd                     PGL     189.92      -50.36
Park May Bhd                      PMY      11.04      -13.58
PSC Industries Bhd                PSC      62.80     -116.18
Polymate Holdings Bhd            PYMT      64.73       -7.28
Setegap Berhad                    STG      19.92      -26.88
Tru-Tech Holdings Berhad          TRU      15.86      -16.71
Wembley Industries Holdings Bhd   WMY     111.72     -204.61


PHILIPPINES

APC Group Inc.                    APC      67.04     -163.14
Atlas Consolidated Mining and
   Development Corp.               AT      33.59      -57.17
Cyber Bay Corporation            CYBR      11.54      -58.06
East Asia Power Resources Corp.   PWR      92.55      -64.61
Fil-Estate Corporation             FC      33.30       -5.80
Filsyn Corporation                FYN      19.20       -8.83
Filsyn Corporation               FYNB      19.20       -8.83
Global Equities Inc.              GEI      24.18       -1.81
Gotesco Land, Inc.                 GO      17.34       -9.59
Gotesco Land, Inc.                GOB      17.34       -9.59
Prime Media Holdings Inc.        PRIM      11.12      -15.52
Prime Orion Philippines Inc.     POPI      98.36      -74.34
Swift Foods Inc.                  SFI      26.95       -8.23
Unioil Resources & Holdings             
   Company Inc.                   UNI      10.64       -9.86
United Paragon Mining Corp.       UPM      21.19      -21.52
Universal Rightfield Property
   Holdings Inc.                   UP      45.12      -13.48
Uniwide Holdings Inc.              UW      61.45      -30.31
Victorias Milling Company Inc.    VMC     127.83      -32.21
Vitarich Corporation             VITA      75.04       -4.27


SINGAPORE

China Aviation Oil (Singapore)
   Corporation                    CAO     211.96     -390.07
Compact Metal Industries Ltd.     CMI      54.36      -25.64
Digiland Intl.                   DIGI      31.32      -11.94
Falmac Limited                    FAL      10.90       -0.73
Gul Technologies Singapore
   Limited                        GUL     152.80      -27.74
Informatics Holdings Ltd         INFO      22.30       -9.14
L&M Group of Companies            LNM      56.91      -10.59
Liang Huat Aluminium Ltd.         LHA      19.30      -76.43
Lindeteves-Jacoberg Limited        LJ     225.52      -53.23
LKN-Primefield Limited            LKN     150.70      -12.72
Mae Engineering Ltd               MAE      11.42       -7.79
PDC Corporation Limited           PDC       0.72      -12.07
Pacific Century Regional          PAC    1381.26     -107.11
See Hup Seng Ltd.                 SHS      17.36       -0.09


SOUTH KOREA

BHK Inc                          3990      24.36      -17.38
C & C Enterprise Co. Ltd.       38420      28.05      -14.50
Cenicone Co. Ltd.               56060      36.82       -1.46
Cheil Entech Co. Ltd.           53330      37.25       -0.31
Dewell Elecom Inc.              32590      10.93       -6.92
Everex Inc.                     47600      23.15       -5.10
EG Greentech Co.                55250     186.00       -1.50
EG Semicon Co. Ltd.             38720     166.70      -12.34
Inno Metal Inc.                 70080      25.61        1.41
KP&L Company Limited             9810      15.03       -3.81
Radix Co. Ltd.                  16160      53.78      -17.69
Quality & Tech                  15260      32.33       -1.14
Shinil Industrial Co., Ltd.      2700      41.51       -3.44
SungKwang Co., Ltd.             41140      19.06       -1.60
Tong Yang Major                  1520    2332.81      -86.95
TriGem Computer Inc             14900     629.32     -292.96  


THAILAND

Bangkok Rubber PCL                BRC      70.19      -56.98
Central Paper Industry PCL      CPICO      40.41      -37.02
Circuit Electronic
   Industries PCL              CIRKIT      20.37      -64.80
Circuit Electronic
Daidomon Group Pcl              DAIDO      12.92       -8.51
Datamat PCL                       DTM      17.55       -1.72
Diana Department Store Pcl      DIANA      12.71       -1.71
Everland Public Company Ltd      EVER      56.71     -311.47
Hantex PCl                        HTX       7.51       -7.88
Kuang Pei San Food Products
   Public Co.                  POMPUI      12.51       -9.87
Sahamitr Pressure Container
   Public Co. Ltd.               SMPC      20.77      -28.13
Sri Thai Food & Beverage Public
   Company Ltd                    SRI      18.29      -43.37
Tanayong PCL                    TYONG     178.27     -734.30
Thai-Denmark PCL                DMARK      21.37      -18.88
Thai-Wah PCL                      TWC      91.56      -41.24



                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  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
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is $575 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***