TCRAP_Public/061023.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Monday, October 23, 2006, Vol. 9, No. 210

                            Headlines

A U S T R A L I A

ABI AUSTRALIA: Appoints Daniel Civil as Liquidator
ABI-BSM PTY: Members Resolve to Wind Up Firm
BAR RISTRETTO: Members Want Voluntary Wind Up of Operations
BARKER HOLDINGS: Wind-Up Process Commenced
BEROWRA RSL: Creditors Required to Prove Debts by November 1

BILL GILMOUR: Members' Final Meeting Set on October 26
BRIGHTPOINT INC: Unit Completes Acquisition of Tri Teknologies
CHC HELICOPTER: Moody's Assigns Loss-Given-Default Rating
COEUR D'ALENE: Starts Construction of US$29MM Tailings Facility
CREATIVE SCOPE: Members Decide to Wind Up Firm

FU-2 & ASSOCIATES: To Hold Final Meeting on October 26
GATEWAVE PTY: Enters Liquidation Proceedings
GLOUCESTER HOLDINGS: Members Opt for Voluntary Wind-Up
HILLS COMPLETE: Placed Under Voluntary Liquidation
IVNO PTY: Inability to Pay Debts Prompts Wind-Up

JANOPE PTY: Members Decide to Close Operations
JLG INDUSTRIES: Acquisition Prompts S&P's Negative Watch
JOHN A GARRETT: Members' Final Meeting Slated for October 26
KENDLE INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings
MICHAEL O'LEARY: Liquidator to Present Final Wind-Up Account

MILLEN GROUP: Creditors' Proofs of Claim Due on November 1
MOOKI MEDIA: Members and Creditors to Meet on October 26
PAUL SEGAERT: To Declare First and Final Dividend on Nov. 1
PAUL SEGAERT (ACT): Will Declare First and Final Dividend
PAUL SEGAERT ALUMINUM: To Declare First and Final Dividend

PAUL SEGAERT PRODUCTS: Prepares to Declare Dividend on Nov. 1
PENTON MEDIA: Members to Receive Wind-Up Report on Oct. 26
PRANA BIOTECHNOLOGY: Deloitte Touche Raises Going Concern Doubt
PRANA BIOTECHNOLOGY: To Hold Annual General Meeting on Nov. 30
RALSON HOLDINGS: Court Issues Wind-Up Order

RECYCLED PLASTIC: To Distribute Dividend on November 24
RETRAC ENGINEERING: Final Meeting Scheduled on October 26
SAVERS INC: Moody's Assigns Loss-Given-Default Ratings
SIRIUS RETAIL: Liquidator to Present Wind-Up Report
SMS FLOOR: Members Decide to Shut Down Business Operations

TEAM NEVEREST: Creditors Must Prove Debts by October 31
TWOBERTHA PTY: Members Opt for Voluntary Wind-Up
VIERI RESTAURANT: Winds Up Business Operations
WEATHERDON STRUK: Members Resolve to Wind Up Operations


C H I N A   &   H O N G  K O N G

ACW CONSULTING: Liquidator to Present Wind-Up Report
AGRICULTURAL BANK: Reform to Cost Around US$100-Billion
BENQ CORP: Posts NT$12.8 Billion Sales for September
BENQ MOBILE: Union Mulls Suit to Keep Jobs at Insolvent Unit
COVANTA ENERGY: Moody's Assigns Loss-Given-Default Ratings

DAISYFIELD LTD: Final Meeting Slated for November 17
DARSUN LTD: Court to Hear Wind-Up Petition on November 15
DRAWINGS & DESIGN: Faces Wind-Up Proceedings
EASTERN BROADCASTING: Fitch Ups Ratings; Out from Watch Positive
ELITE AIR: Wind-Up Petition Hearing Slated for November 1

GLOBAL POWER: Can Wind Down Heat Recovery Business Segment
GOLDEN SKY: Members' Final Meeting Set for November 13
H & N Slimming: Court Hears Wind-Up Petition
HK GAME TRADING: Liquidators Step Aside
IN-WORK INTERNATIONAL: Creditors Must Prove Debts by Nov. 30

KAI NGAI: Creditors' Proofs of Debt Due on October 27
OCEANIA CRUISE: Moody's Assigns B2 Corporate Family Rating
PETROLEOS DE VENEZUELA: Working with Enarsa to Audit Ayacucho 6
POINT HARVEST: Members to Convene on November 14
PROTAN PLAZA: Creditors Proofs of Claim Due on November 13

SANMINA-SCI: Inks US$600 Million Term Loan Credit Agreement
SANMINA-SCI: Moody's Rates US$600MM Sr. Unsec. Term Loan at Ba2
SUPER DATA: Creditors to Prove Debts by November 14
T.S. CHAN: Joint Liquidators Ceases to Act for the Company
THERMAL INTERNATIONAL: Members to Receive Wind-Up Report

TREASURE MANAGEMENT: Liquidator to Receive Proofs Until Oct. 27
WAI YIP: Court to Hear Wind-Up Petition on November 15
YING YUE: To Pay First and Final Dividend


I N D I A

BALLARPUR INDUSTRIES: Reports Better Results for 1Q FY 2007
ICICI BANK: Raises US$400 Million From Five-Year Note Offering
ICICI BANK: Fitch Gives F1+(ind)(SO) Rating to Securitised Asset
PHARMANET DEVELOPMENT: Amends Revolving Credit Agreement
PHARMANET DEVELOPMENT: Appoints P. Tombros & R. Classon to Board

QUEBECOR WORLD: Moody's Lowers Corporate Family Rating to B1
RELIANCE INDUSTRIES: Releases Half-Year 2006 Financial Results
UNION BANK OF INDIA: Fitch Upgrades Individual Rating to C/D
UNION BANK OF INDIA: Posts 218% Increase in 2nd Quarter Profit


I N D O N E S I A

BANK NEGARA: Evaluates Non-Performing Loans for More Debt Cuts
CA INC: Adopts New Stockholder Protection Rights Agreement
CORUS GROUP: Takeover Offer Cues S&P to Put Rating on Watch Pos.
CORUS GROUP: Fitch Places BB- Default Rating on Watch Positive
LIPPO KARAWACI: Fitch Assigns 'BBB+(idn)' National Rating


J A P A N

ALITALIA SPA: Hits Insolvency Risk Reports
CAFES 2: S&P Rates Multi-Borrower Class E Certificate 'BB+'
EDDIE BAUER: Moody's Assigns Loss-Given-Default Rating
EDDIE BAUER: To Open at the Promenade Shops at Dos Lagos
FTI CONSULTING: Buys Brower Kriz and G3 Consulting for US$14-M

ISUZU MOTORS: Expects Better Operating Profit for Sept. Quarter
ISUZU MOTORS: Establishes JV in Germany and Austria
M-REAL OYJ: Moody's Affirms B2 Ratings on Strategic Review
M-REAL OYJ: Starts Restructuring; Foreign Sites Face Closure
M-REAL OYJ: Names Mikko Helander as New Chief Executive Officer

MITSUI LIFE: Moody's Upgrades Insurer Rating to Baa2 from Ba1
PAYLESS SHOESOURCE: Moody's Assigns Loss-Given-Default Rating
SOLO CUP: Completes Review of Accounting Issues
SOLO CUP: Reports US$670.3MM Net Sales for Quarter Ended July 2
TIMKEN CO: Opens US$10-Mil. Technology Center in Clemson Univ.

YOKOGAWA ELECTRIC: Now Preferred System Supplier for Air Liquide
YOKOGAWA ELECTRIC: Unit Releases Event Package Upgrade
YOKOGAWA ELECTRIC: Gets Cert. For Safety Instrumented System


K O R E A

DRESSER INC: Moody's Assigns B1 Rating to Planned US$935MM Loan
DRESSER INC: S&P Rates US$935 Million Credit Facilities at B
HYUNDAI MOTOR: Joint Venture Sued Over Accent's Price Cut
NOVELIS INC: Expects Improved Financial Performance in 2007
NOVELIS INC: Moody's Assigns Loss-Given-Default Rating

SHINHAN BANK: Plans Aggressive Expansion in Southeast Asia
WOORI BANK: To Expand United States Operations
WOORI FINANCE: CEO Disciplined Over Large Bonus Payments


M A L A Y S I A

ARMSTRONG WORLD: McDermott Will Wants Court to OK US$88,001 Fees
BIMB HOLDINGS: To Seek Shareholders' OK for Proposals at AGM
COMSA FARMS: Fails to Submit Audited Accounts Ended March 2006
CYGAL BERHAD: SC Extends Time for Implementation of Revamp Plan
FALCONBRIDGE LTD: Xstrata Acquires Additional Shares

JIN LIN: Unveils Scheme of Arrangement with Shareholders
MANGIUM INDUSTRIES: Unit Defaults on MYR15,878,520 as of Sept.
MERCES HOLDINGS: Unit Served with Wind-Up Petition
METROPLEX BERHAD: Unit Struck Off From Register of Companies
PERDUREN (M) BERHAD: Exits Practice Note 17 Category

SETEGAP BERHAD: Court Extends Restraining Order Until January 21


N E W   Z E A L A N D

ABIL PROPERTY: Commences Liquidation Proceedings
ALLEN WALKER: Creditors to Prove Claims on October 30
AUTOWORKS SERVICE: Faces Liquidation Proceedings
CHALET ARTHURS: Court Sets Date to Hear Liquidation Petition
E-COM SOLUTIONS: Appoints Joint and Several Liquidators

OTAHUHU PROPERTIES: Inability to Pay Debts Prompts Liquidation
PROJECT TRANZACTIONS: Court to Hear Liquidation Petition
QUALITY RESURFACING: Court Hears CIR's Liquidation Petition
SALES FACTORY: Names Craig as Liquidator
TSSL LTD: Court Hears Liquidation Petition


P H I L I P P I N E S

SAN MIGUEL CORP: San Miguel Enters Thai Fruit Juice Market


S I N G A P O R E

AMARANTH ADVISORS: Cuts 350 Jobs as Onset of Closing Down
CLASSE CO: Proofs of Debt Due on November 20
FREESCALE SEMICONDUCTOR: Expands Joint Efforts with dSPACE
FREESCALE: Updates Progress on STMicroelectronics Joint Program
GREENLODGE HOLDING: Creditors Must Prove Debts by Nov. 13

HEXION SPECIALTY: Tenders Offer to Holders of US$625-Mil. Notes
MSM HOLDINGS: Proofs of Debt Due on October 30
ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005
PETROBRAS INT'L: Fitch Rates US$500 Million Senior Notes at BB+
PETROLEO BRASILEIRO: Starting Operations on Two Oil Platforms


T H A I L A N D

GOVT. HOUSING BANK: Optimistic in Reaching Year's Loan Target
KRUNG THAI: Two Directors Resign from Board
TANAYONG PCL: Posts THB450-Million Net Loss in F/Y 2006
TRUE CORP: NTC Starts Probe into Advance Info's Call Promo

     - - - - - - - -

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

ABI AUSTRALIA: Appoints Daniel Civil as Liquidator
--------------------------------------------------
At a general meeting on October 5, 2006, the members of Abi
Australia Ltd resolved to voluntarily wind up the company's
operations and appointed Daniel Civil as liquidator.

Mr. Civil's appointment was confirmed at the creditors' meeting
held later that day.

The Liquidator can be reached at:

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


ABI-BSM PTY: Members Resolve to Wind Up Firm
--------------------------------------------
Members of ABI-BSM Pty Ltd agreed on October 5, 2006, to
voluntarily wind up the company's operations.

The members appointed Daniel Civil as liquidator, which
appointment was confirmed at the creditors' meeting held later
that day.

The Liquidator can be reached at:

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


BAR RISTRETTO: Members Want Voluntary Wind Up of Operations
-----------------------------------------------------------
Members of Bar Ristretto Pty Ltd on October 6, 2006, resolved to
voluntarily wind up the company's operations and appointed
Daniel Civil as liquidator.

The appointment of the liquidator was confirmed at the
creditor's meeting held consequently that day.

The Liquidator can be reached at:

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


BARKER HOLDINGS: Wind-Up Process Commenced
------------------------------------------
Members of Barker Holdings Investments Pty Ltd held a general
meeting on October 4, 2006, and decided to wind up the company's
business operations.

Subsequently, Bruce Gleeson was appointed as liquidator.

The Liquidator can be reached at:

         Bruce Gleeson
         Jones Condon Chartered Accountants
         Level 13 189 Kent Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 9251 5222


BEROWRA RSL: Creditors Required to Prove Debts by November 1
------------------------------------------------------------
Berowra RSL Bowling and Community Club Ltd, which is subject to
a deed of company arrangement, will declare the first and final
dividend on November 15, 2006.

Accordingly, creditors are required to prove their claims by
November 1, 2006, or be excluded from sharing in the benefit of
the dividend.

The Deed Administrator can be reached at:

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


BILL GILMOUR: Members' Final Meeting Set on October 26
------------------------------------------------------
Bill Gilmour Enterprises Pty Ltd, which is in liquidation, will
hold a final meeting for its members on October 26, 2006, at
9:00 a.m.

At the meeting, members will receive an account of the company's
wind-up from Liquidator John Lord.

The Liquidator can be reached at:

         John Lord
         PKF
         Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9251 4100
         Facsimile:(02) 9240 9821
         Web site: http://www.pkf.com.au


BRIGHTPOINT INC: Unit Completes Acquisition of Tri Teknologies
--------------------------------------------------------------
Brightpoint, Inc., disclosed that its subsidiary, Wireless
Fulfillment Services LLC, has completed its acquisition of Trio
Industries, Inc.

TrioTek, based in Carrollton, Texas, is a provider of bundled
wireless products and solutions to Value Added Resellers, system
integrators, and other customers focused on providing wireless
data services. TrioTek is an authorized master agent for Sprint
Nextel, Cingular Wireless and Verizon Wireless and distributes a
wide variety of wireless data products from several original
equipment manufacturers.

"With TrioTek's customer base of over 1,000 customers, strong
wireless network operator relationships and unique portfolio of
wireless data products, this acquisition improves are market
position and enhances our capabilities for providing mobility
solutions to business customers through resellers in our
Advanced Wireless Services group," stated J. Mark Howell,
President of Brightpoint, Inc. and Brightpoint Americas.

                        About Brightpoint

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- engages in the distribution of  
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.
The company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                          *     *     *

On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.


CHC HELICOPTER: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors, the rating agency confirmed its Ba3 Corporate Family
Rating for CHC Helicopter Corporation and raised its rating on
the company's 7.375% Senior Subordinate Guaranteed Global Notes
Due 2014 from B2 to B1.  Moody's assigned the debentures an LGD4
rating suggesting noteholders will experience a 67% loss in the
event of a default.

Moody's also affirmed its B3 rating on the company's 9% Senior
Unsecured Guaranteed Global Notes Due 2014, and assigned the
debentures an LGD4 rating suggesting a projected loss-given
default of 54%.

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
alphanumeric 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%).

CHC Helicopter Corporation (TSX: FLY.A and FLY.B; NYSE: FLI) --
http://www.chc.ca/-- is the world's largest provider of     
helicopter services to the global offshore oil and gas industry
with aircraft operating in more than 30 countries, including
Australia, Thailand, the Philippines, India, Bangladesh,
Malaysia and Indonesia.


COEUR D'ALENE: Starts Construction of US$29MM Tailings Facility
---------------------------------------------------------------
Coeur d'Alene Mines Corp. (NYSE: CDE, TSX: CDM) said today that,
as part of its ongoing work at the San Bartolome silver mine in
Bolivia, it has begun construction of the mine's US$29 million
tailings facility.

The work is being performed by ICE Ingenieros S.A., a Bolivian
contractor with extensive experience in the mining industry,
pursuant to a contract with Coeur's Bolivian subsidiary, Empresa
Minera Manquiri S.A.  As many as 350 Bolivian workers will be
employed during construction of the tailings facility.

"The tailings facility is the longest lead-time item at San
Bartolome, and moving forward now is consistent with the
construction schedule for the overall project, which we are
aiming to complete near the end of 2007," said Coeur's Chairman,
President, and Chief Executive Officer, Dennis E. Wheeler.  "We
feel good about advancing the project, which is creating much-
needed jobs in Bolivia and especially in the Potosi region."

The San Bartolome mine is expected to produce about eight
million ounces of silver annually once it begins production.

Coeur d'Alene Mines Corp. -- http://www.coeur.com/-- is the  
world's largest primary silver producer, as well as a
significant, low-cost producer of gold.  The company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.

                          *     *     *

Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15,
2024, carry Standard & Poors' B- rating.


CREATIVE SCOPE: Members Decide to Wind Up Firm
----------------------------------------------
At a general meeting of Creative Scope Marketing Pty Ltd on
September 28, 2006, members agreed that it is in the company's
best interests to wind up its operations.  The members appointed
Peter Ngan as liquidator.

The liquidator's appointment was later confirmed at the
creditors' meeting held consequently that day.

The Liquidator can be reached at:

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


FU-2 & ASSOCIATES: To Hold Final Meeting on October 26
------------------------------------------------------
FU-2 & Associates Pty Ltd will hold a final meeting for its
members and creditors on October 26, 2006, at 10:00 a.m., to
attend to statutory duties.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on February 9,
2006.

The Liquidator can be reached at:

         Nicholas Crouch
         Crouch Insolvency
         Level 28, 31 Market Street
         Sydney, New South Wales 2000
         Australia


GATEWAVE PTY: Enters Liquidation Proceedings
--------------------------------------------
Members of Gatewave Pty Ltd on September 22, 2006, resolved to
liquidate the company's business and appointed Peter Ngan as
liquidator.

The Liquidator can be reached at:

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


GLOUCESTER HOLDINGS: Members Opt for Voluntary Wind-Up
------------------------------------------------------
The members of Gloucester Holdings Pty Ltd passed a special
resolution on October 4, 2006, to voluntarily wind up the
company's operations.

Accordingly, Bruce Gleeson was named liquidator.

The Liquidator can be reached at:

         Bruce Gleeson
         c/o Jones Condon
         Chartered Accountants
         Telephone (02) 9251 5222


HILLS COMPLETE: Placed Under Voluntary Liquidation
--------------------------------------------------
At separate meetings held on October 3, 2006, the members and
creditors of Hills Complete Property Maintenance Pty Ltd
resolved to voluntarily wind up the company's operations.

In this regard, Ozem Kassem was appointed as liquidator.

The Liquidator can be reached at:

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


IVNO PTY: Inability to Pay Debts Prompts Wind-Up
------------------------------------------------
At meetings held on September 29, 2006, the members and
creditors of IVNO Pty Ltd passed special resolutions to
voluntarily wind up the company's operations due to its
inability to pay debts.

Richard Albarran was appointed as liquidator.

The Liquidator can be reached at:

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


JANOPE PTY: Members Decide to Close Operations
----------------------------------------------
After an extraordinary general meeting on September 27, 2006,
the members of Janope Pty Ltd resolved to close the company's
business operations.

John Vouris was appointed liquidator at a creditors' meeting
held that same day.

The Liquidator can be reached at:

         John Vouris
         Lawler Partners
         Chartered Accountants
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia


JLG INDUSTRIES: Acquisition Prompts S&P's Negative Watch
--------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on
Hagerstown, Maryland-based construction equipment manufacturer
JLG Industries Inc., including its 'BB' corporate credit rating,
on CreditWatch with negative implications.

This rating action follows the announcement by unrated Oshkosh
Truck Corp. that it is acquiring JLG in an all-cash transaction
totaling US$3.2 billion.  The funding for the transaction is
expected to be all debt.

"Although the combination of the two companies with leading
brands in their respective markets is expected to be
complementary, an all-debt financing may likely result in
prospectively weaker credit measures than currently exist for
JLG," said Standard & Poor's credit analyst John R. Sico.

The announced plans are for the outstanding bonds of JLG to be
tendered, and Standard & Poor's expects to withdraw our ratings
on JLG when the transaction closes by the end of 2006 or early
2007.

Hagerstown, Md.-based JLG Indusries Inc. -- http://www.jlg.com/
-- is a manufacturer of access and material-handling equipment
for the cyclical construction equipment and rental markets.  At
the end of fiscal 2006, JLG had sales of US$2.3 billion and
outstanding debt of more than US$200 million.  The company has
operations in Australia.


JOHN A GARRETT: Members' Final Meeting Slated for October 26
------------------------------------------------------------
A final meeting of the members of John A Garrett Pty Ltd, which
was placed under liquidation, will be held on October 26, 2006,
at 9:00 a.m.

During the meeting, Liquidator I. L. Struthers will present the
accounts of the company's wind-up and property disposal
exercises.

The Liquidator can be reached at:

         I. L. Struthers
         c/o Deloitte Touche Tohmatsu
         225 George Street
         Sydney, New South Wales 2000
         Australia


KENDLE INTERNATIONAL: 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 Healthcare Service and Distribution sectors,
the rating agency confirmed its B1 Corporate Family Rating for
Kendle International Inc.  Additionally, Moody's confirmed its
probability-of-default ratings and assigned loss-given-default
ratings on these loans facilities:

                                            Projected
                          POD      LGD      Loss-Given
   Debt Issue             Rating   Rating   Default
   ----------             -------  ------   ----------
   Sr. Sec. Revolver
   due 2011               B1       LGD3     31%

   Sr. Sec. Term
   Loan B due 2012        B1       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 our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our 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 Cincinnati, Ohio, Kendel International Inc.--
http://www.kendle.com/-- is a clinical research organization
(CRO) that provides a range of Phase I-IV clinical development
services to the biopharmaceutical industry.  The company offers
clinical research services and information technology to
biopharmaceutical companies.  It delivers integrated clinical
research services, including clinical trial management, clinical
data management, statistical analysis, medical writing,
regulatory consulting and organizational meeting management and
publications services on a contract basis to the
biopharmaceutical industry.  The company operates in North
America, Europe, Asia Pacific, Latin America and Africa.  In
the Asia Pacific, Kendel maintains operations in Australia,
China, and India.


MICHAEL O'LEARY: Liquidator to Present Final Wind-Up Account
------------------------------------------------------------
Michael O'Leary Investments Pty Ltd, which is in liquidation,
will hold a final meeting for its members and creditors on
October 26, 2006, at 11:30 a.m.

During the meeting, members and creditors will receive
Liquidator Haye's final account on the company's wind-up
proceedings.

The Liquidator can be reached at:

         Alan Hayes
         Sims Partners
         Level 24, Australia Square
         264 George Street
         Sydney, New South Wales 2001
         Australia
         Telephone: 9241 3422


MILLEN GROUP: Creditors' Proofs of Claim Due on November 1
----------------------------------------------------------
Millen Group Pty Ltd, which is in liquidation, will declare a
final dividend for its creditors.

To be included in the company's dividend distribution, creditors
are required to submit their proofs of debt by November 1, 2006.

The Liquidator can be reached at:

         Shannon Cavanagh
         c/o Bacchus Associates Pty Limited
         Suite 9, Level 2, The Cooperage
         56 Bowman Street
         Pyrmont, New South Wales 2009
         Australia


MOOKI MEDIA: Members and Creditors to Meet on October 26
--------------------------------------------------------
The members and creditors of Mooki Media Pty Ltd will meet on
October 26, 2006, at 10:30 a.m., to receive Liquidator Sule
Arnautovic's accounts of the company's wind-up and property
disposal activities.

The Troubled Company Reporter - Asia Pacific previously reported
that the company commenced wind-up of its operations on June 7,
2006.

The Liquidator can be reached at:

         Sule Arnautovic
         Jirsch Sutherland
         Chartered Accountants
         Level 2, 84 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9233 2111
         Facsimile: 02 9233 2144


PAUL SEGAERT: To Declare First and Final Dividend on Nov. 1
-----------------------------------------------------------
Paul Segaert System Sales Pty Ltd, which is in liquidation, will
declare its first and final dividend to creditors on November 1,
2006.

Creditors who were not able to submit their proofs of debt on
October 18, 2006, will be excluded from the benefit of the
dividend.

The Joint and Several Liquidator can be reached at:

         P. A. Billingham
         Grant Thornton
         Level 17, 383 Kent Street
         Sydney, New South Wales 2000
         Australia


PAUL SEGAERT (ACT): Will Declare First and Final Dividend
---------------------------------------------------------
Paul Segaert Aluminum Products (ACT) Pty Ltd, which is in
liquidation, will declare the first and final dividend to its
creditors on November 1, 2006.

Creditors who were unable to formally prove their debts on
October 18, 2006, will be excluded from sharing in the dividend
distribution.

The Joint and Several Liquidator can be reached at:

         P. A. Billingham
         Grant Thornton
         Level 17, 383 Kent Street
         Sydney, New South Wales 2000
         Australia


PAUL SEGAERT ALUMINUM: To Declare First and Final Dividend
----------------------------------------------------------
Paul Segaert Aluminum Pty Ltd, which is in liquidation, will
declare the first and final dividend for its creditors on
November 1, 2006.

Only those who were able to prove their debts on October 18,
2006, will be included in sharing the dividend distribution.

The Joint and Several Liquidator can be reached at:

         P. A. Billingham
         Grant Thornton
         Level 17, 383 Kent Street
         Sydney, New South Wales 2000
         Australia


PAUL SEGAERT PRODUCTS: Prepares to Declare Dividend on Nov. 1
-------------------------------------------------------------
Paul Segaert Aluminum Products Pty Ltd, which is in liquidation,
will declare the first and final dividend for its creditors on
November 1, 2006.

Creditors who failed to prove their claims on October 18, 2006,
are excluded in the distribution.

The Joint and Several Liquidator can be reached at:

         P. A. Billingham
         Grant Thornton
         Level 17, 383 Kent Street
         Sydney, New South Wales 2000
         Australia


PENTON MEDIA: Members to Receive Wind-Up Report on Oct. 26
----------------------------------------------------------
Penton Media Australia Pty Ltd, which is in liquidation, will
hold a final meeting for its members on October 26, 2006, at
10:00 a.m.

During the meeting, members will receive an account of the
company's wind-up and property disposal exercises from
Liquidators David Clement Pratt and Timothy James Cuming.

The Liquidators can be reached at:

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


PRANA BIOTECHNOLOGY: Deloitte Touche Raises Going Concern Doubt
---------------------------------------------------------------
Prana Biotechnology Limited, in compliance with NASDAQ
Marketplace Rule IM-4350-6, disclosed that its independent
registered public accountants included a going concern
explanatory paragraph in its consolidated financial report for
the fiscal year ended June 30, 2006, contained in the company's
Annual Report on Form 20-F filed with the United States
Securities and Exchange Commission.

Deloitte Touche Tohmatsu expressed substantial doubt about Prana
Biotechnology Limited's and its subsidiaries' ability to
continue as a going concern after auditing the company's
financial statements for the fiscal years ended June 30, 2006
and 2005.  The auditing firm pointed to the company's recurring
losses from operations and negative cash flows from operations.

Prana Biotechnology recorded loss from operations amounting to
AU$12,481,332 for the year ended June 30, 2006, and
AU$18,691,564 for the year ended June 30, 2005.  Net loss for
the year ended June 30, 2006, was AU$11,719,309, and for the
year ended June 30, 2005, was AU$17,799,429.

The company ended June 30, 2006, with approximately
AU$10 million (US$7.5 million) in cash and cash equivalents.

The company, on Oct. 5, also disclosed that it received
regulatory approval from Sweden's Medical Products Agency to
start a Phase IIa clinical trial of its proprietary lead
compound, PBT2, in patients with early Alzheimer's disease.  As
a result of obtaining regulatory approval to initiate the Phase
IIa study, the company will need to raise additional cash.

Based in Melbourne, Australia Prana Biotechnology Limited
(Nasdaq: PRAN, ASX: PBT) --http://www.pranabio.com/-- provides  
and develops therapies for age-related disease, initially
focussing on the treatment of Alzheimer's Disease.  Other
potential applications for the company's technology include
Cataracts, Tardive Dyskinesia, Creutzfeldt-Jakob Disease, Motor
Neuron Disease and Parkinson's Disease.


PRANA BIOTECHNOLOGY: To Hold Annual General Meeting on Nov. 30
--------------------------------------------------------------
Prana Biotechnology Limited will hold its 2006 Annual General
Meeting of Shareholders on November 30, 2006, at 10:30 a.m. at
the Company Head Office at the Peppin Merino Room, 369 Royal
Parade, in Parkvale, Victoria, Australia.

The Company's annual financial statements for the period ended
June 30, 2006, comprising of the annual financial report, the
director's report and the auditor's report for that fiscal year
will be presented before the AGM.

At the meeting, Prana's shareholders will also be tasked to
consider resolutions, including those that pertain to:

   -- the re-election of Prof. Colin Masters as director of the
      company;

   -- the approval of the prior issue of 250,000 ordinary
      shares;

   -- the approval of the granting of unquoted options to
      Geoffrey Kempler and Brian Meltzer, for the acquisition of
      1,000,000 and 300,000 ordinary shares, respectively, both
      exercisable by July 31, 2009; and

   -- the approval of a change of auditor.

Based in Melbourne, Australia Prana Biotechnology Limited
(Nasdaq: PRAN, ASX: PBT) --http://www.pranabio.com/-- provides  
and develops therapies for age-related disease, initially
focussing on the treatment of Alzheimer's Disease.  Other
potential applications for the company's technology include
Cataracts, Tardive Dyskinesia, Creutzfeldt-Jakob Disease, Motor
Neuron Disease and Parkinson's Disease.

After auditing Prana Biotechnology's consolidated financial
statements for the year ended June 30, 2006, Deloitte Touche
Tohmatsu expressed substantial doubt about the company's and its
subsidiaries' ability to continue as a going concern, pointing
to their recurring losses from operations and negative cash
flows from operations.


RALSON HOLDINGS: Court Issues Wind-Up Order
-------------------------------------------
The Federal Court of New South Wales on September 29, 2006,
ordered the wind-up of Ralson Holdings Pty Ltd' operations and
appointed Steven Nicols as liquidator.

The Liquidator can be reached at:

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


RECYCLED PLASTIC: To Distribute Dividend on November 24
-------------------------------------------------------
Recycled Plastic Technology Pty Ltd, which is subject to a deed
of company arrangement, will declare dividend on November 24,
2006.

Creditors who failed to submit their proofs of claim on
October 17, 2006, will be excluded in the dividend distribution.

The Deed Administrator can be reached at:

         John Lord
         PKF
         Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9251 4100
         Facsimile: 02 9240 9821
         Web site: http://www.pkf.com.au


RETRAC ENGINEERING: Final Meeting Scheduled on October 26
---------------------------------------------------------
A final meeting of the members and creditors of Retrac
Engineering Pty Ltd will be held on October 26, 2006, at
10:00 a.m.

At the meeting, Liquidator R. M. Sutherland will present
accounts regarding how Retrac Engineering was wound up and how
its property was disposed of.

As reported by the Troubled Company Reporter - Asia Pacific,
Retrac wound up its operations on May 15, 2006.

The Liquidator can be reached at:

         Roderick Mackay Sutherland
         Jirsch Sutherland
         Chartered Accountants
         Level 2, 84 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone: 02 9233 2111
         Facsimile: 02 9233 2144


SAVERS INC: Moody's Assigns Loss-Given-Default Ratings
------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its B2 Corporate Family Rating for Savers, 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$197 Million
   Term Loan            B1       Ba3      LGD2     27%

   US$25 Million Sr.
   Sec. Revolving
   Credit Facility      B1       Ba3      LGD2     27%

   US$130 Million
   Sub. Notes           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 Seattle, Washington, Savers, Inc., is a
for-profit thrift store chain.  Savers operates 207 stores in
the United States, Canada stores, and Australia under
the nameplates Savers, Value Village, and Village de Valeurs.


SIRIUS RETAIL: Liquidator to Present Wind-Up Report
---------------------------------------------------
Members and creditors of Sirius Retail Television Pty Ltd will
convene for their final meeting on October 26, 2006, at
10:30 a.m., to hear final accounts of the company's wind-up
proceedings from Liquidator Neil Geoffrey Singleton.

According to the Troubled Company Reporter - Asia Pacific,
Sirius Retail declared its first and final dividend to creditors
on August 12, 2005.

The Liquidator can be reached at:

         Neil Geoffrey Singleton
         Sims Partners
         Level 24, Australian Square
         264 George Street
         Sydney, New South Wales 2001
         Australia
         Telephone: 9241 3422


SMS FLOOR: Members Decide to Shut Down Business Operations
----------------------------------------------------------
Members of SMS Floor Polishers & Builders Pty Ltd on Sept. 28,
2006, decided to shut down the company's business and appointed
P. Ngan as liquidator.  The appointment was confirmed at the
creditors' meeting held subsequently that day

The Liquidator can be reached at:

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


TEAM NEVEREST: Creditors Must Prove Debts by October 31
-------------------------------------------------------
Team Neverest Pty Ltd, which is in liquidation, will declare the
first and final dividend to unsecured creditors on November 14,
2006.

Creditors are required to submit their proofs of claim by
October 31, 2006, to be included in the dividend distribution.

The Liquidator can be reached at:

         M. F. Cooper
         Frasers Insolvency Advisory
         Level 5, 99 Elizabeth Street
         Sydney, New South Wales 2000
         Australia


TWOBERTHA PTY: Members Opt for Voluntary Wind-Up
------------------------------------------------
At a general meeting held on September 29, 2006, the members of
TwoBertha Pty Ltd resolved to voluntarily wind up the company's
business operations.  Accordingly, P. Ngan was appointed as
liquidator.

The Liquidator's appointment was confirmed at the creditors'
meeting held later that day.

The Liquidator can be reached at:

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


VIERI RESTAURANT: Winds Up Business Operations
----------------------------------------------
At a general meeting on September 28, 2006, the members of Vieri
Restaurant (Darling Harbour) Pty Ltd decided to voluntarily wind
up the company's operations and appointed P. Ngan as liquidator.

The appointment of Mr. Ngan was confirmed at the creditors'
meeting held subsequently that day.

The Liquidator can be reached at:

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


WEATHERDON STRUK: Members Resolve to Wind Up Operations
-------------------------------------------------------
At a general meeting of the members of Weatherdon Struk Pty Ltd
held on September 22, 2006, it was resolved that a voluntary
wind-up of the company's operations is appropriate and
necessary.

In this regard, Peter Ngan was appointed as liquidator.

The Liquidator can be reached at:

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


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

ACW CONSULTING: Liquidator to Present Wind-Up Report
----------------------------------------------------
Members of ACW Consulting (HK) Ltd will hold a final general
meeting on November 13, 2006, at 11:00 a.m., to receive
Liquidator Young Chun Man Kenneth's account on the company's
wind-up and property disposal activities.

As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of its operations on August 14,
2006.

The Liquidator can be reached at:

         Young Chun Man Kenneth
         31/F, Gloucester Tower
         The Landmark, 11 Pedder Street
         Central, Hong Kong


AGRICULTURAL BANK: Reform to Cost Around US$100-Billion
-------------------------------------------------------
The Agricultural Bank of China is close to finalizing a plan
with banking regulators to transform it into a joint stock
company, The People Daily reports, citing a statement from Zhou
Xiaochuan, governor of the People's Bank of China.

According to The Daily, regulators have reached a consensus that
the Agricultural Bank will be listed as a whole company, instead
of being broken up into smaller units as was previously
reported.

The estimated cost of reform will reach US$100 billion, much
more than that of the other three major state-owned commercial
banks -- the Industrial and Commercial Bank of China; the Bank
of China; and the China Construction Bank -- a senior official
with the Central Huijin Investment Company, a major investment
arm of the central government, told the paper.

However, regulators are still considering various plans for the
cash injection as the government will have to bail out the debt-
laden bank, China Securities Journal relates.  Sources of the
financial aid have not been finalized either, the China Journal
adds.

The Agricultural Bank of China -- http://www.abocn.com/-- is  
the mainland's fourth largest bank.  It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.

Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.

The Troubled Company Reporter - Asia Pacific reported on
June 27, 2006, that the National Audit Office found accounting
irregularities involving CNY51.6 billion, CNY14.27 billion of
which come from deposit business, CNY27.62 billion from loan
grants, and CNY9.72 billion from fraudulent bill issuance.

Fitch Ratings gave the Bank an 'E' Individual rating.


BENQ CORP: Posts NT$12.8 Billion Sales for September
----------------------------------------------------
BenQ Corp. disclosed its consolidated revenue for the month of
September.  The company's core business recorded sales of
NT$12.8 billion.

Sales in September grew in most product lines powered by
strengthened seasonal demand.  With the company's Computing
Products group, unit sales of BenQ brand LCD monitors grew
nearly 20% month-on-month.

"China sales hit record highs in September," according to Eric
Ky Yu, BenQ's Senior Vice President of Finance and Spokesperson.  
With the company's Digital Media products, "sales of BenQ brand
projectors also hit a new high in both Europe and China.  LCD TV
grew nearly 50% in both unit and value terms month-on-month
driven by new customer additions," continued Mr. Yu.

               Benq Mobile Insolvency Proceedings

BenQ Corp.'s board of directors convened and resolved on Sept.
28 to discontinue capital injection into BenQ Mobile Germany,
effectively placing BenQ Mobile's German operations into
insolvency proceedings.  Related handset sales therefore are not
included in this monthly report; the company's auditors will
further ascertain handset revenue for September.  Looking ahead
to October, "we expect sales to grow in October due to season
strengths in LCD monitors and projectors," added Mr. Yu.

                          *     *     *

Headquartered in Taiwan, Republic of China, BenQ Corporation,
Inc. -- http://www.benq.com/-- is principally engaged in    
manufacturing, developing and selling of computer peripherals
and telecommunication products.  It is also a major provider of
3G handset, 3G handset, Camera phones, and other products.  

Bankrupt BenQ Mobile GmbH & Co., the company's wholly owned
subsidiary, operates from Munich, Germany.

Taiwan Ratings Corp., on August 17, 2006, lowered its long-term
corporate credit rating and unsecured corporate bond rating on
BenQ Corporation to twBB+ from twBBB.  At the same time, the
short-term corporate rating on the Company was lowered to twB
from twA-3.  All ratings remain on CreditWatch with negative
implications, where they were placed on March 14, 2006.


BENQ MOBILE: Union Mulls Suit to Keep Jobs at Insolvent Unit
------------------------------------------------------------
The IG Metall union in Germany said it was investigating the
possibility of a legal action, possibly through a class action,
to preserve the job of 3,000 BenQ Mobile GmbH & Co OHG staff who
now stand to lose their jobs after the insolvency of the
company.

The planned suit is aimed at forcing the former owner of the
company, Siemens AG, to re-employ the workers.

"It's new legal territory, but of course we will try it," Munich
representative Harald Flassbeck told Reuters.

                          *     *     *

Headquartered in Taiwan, Republic of China, BenQ Corporation,
Inc. -- http://www.benq.com/-- is principally engaged in  
manufacturing, developing and selling of computer peripherals
and telecommunication products.  It is also a major provider of
3G handset, 3G handset, Camera phones, and other products.  

BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany.

Taiwan Ratings Corp., on August 17, 2006, lowered its long-term
corporate credit rating and unsecured corporate bond rating on
BenQ Corporation to twBB+ from twBBB.  At the same time, the
short-term corporate rating on the company was lowered to twB
from twA-3.  All ratings remain on CreditWatch with negative
implications, where they were placed on March 14, 2006.


COVANTA ENERGY: 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 Covanta Energy Corp.  Additionally, Moody's
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
   ----------           -------  -------  ------   ----------
   Senior secured
   revolving credit
   facility due 2011       B1       B1     LGD4       64%

   Senior secured
   term loans 2012         B1       B1     LGD4       64%

   Senior secured
   letter of credit
   facility due 2012       B1       B1     LGD4       64%
   Second lien senior
   secured term loan
   due 2013                B2       B2     LGD5       84%

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 Fairfield, New Jersey, Covanta Energy
Corporation -- http://www.covantaenergy.com/-- is a publicly  
traded holding company whose subsidiaries develop, own or
operate power generation facilities and water and wastewater
facilities in the United States and abroad.  Covanta has
operations in the Philippines, China, Costa Rica, India, and
Bangladesh.


DAISYFIELD LTD: Final Meeting Slated for November 17
----------------------------------------------------
Daisyfield Ltd will hold a final general meeting for its members
and creditors on November 17, 2006, at 9:30 a.m., to receive
Liquidator Chang Lai Ying's report on how the company was wound
up and how its properties were disposed of.

According to the Troubled Company Reporter - Asia Pacific,
members resolved to wind up Daisyfield's operations on August
16, 2006.

The Liquidator can be reached at:

         Chang Lai Ying
         Suites 2205-06, Island Place Tower
         510 King's Road, North Point
         Hong Kong


DARSUN LTD: Court to Hear Wind-Up Petition on November 15
---------------------------------------------------------
The High Court of Hong Kong will hear the wind-up petition
against Darsun Ltd on November 15, 2006, at 9:30 a.m.

Leung Chui Wah filed the petition with the Court on
September 18, 2006.

The Solicitors for the Petitioner can be reached at:

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


DRAWINGS & DESIGN: Faces Wind-Up Proceedings
--------------------------------------------
Yuen Chi Wah on September 15, 2006, filed before the High Court
of Hong Kong a petition to wind-up the operation of Drawings &
Design Ltd.

The Court will hear the petition on November 15, 2006, at 9:30
a.m.

The Solicitors for the Petitioner can be reached at:

         Christina Hadiwibawa
         26/F, Queensway Government Offices
         66 Queensway
         Hong Kong


EASTERN BROADCASTING: Fitch Ups Ratings; Out from Watch Positive
----------------------------------------------------------------
On October 19, 2006, Fitch Ratings upgraded the ratings of
Eastern Broadcasting Co., Ltd and simultaneously removing them
from Rating Watch Positive where it was placed on May 29, 2006.  

The upgrades are:

    * Long-term foreign and local currency Issuer Default
      ratings upgraded to BB from BB-;
    
    * National Long-term rating upgraded to BBB+(twn) from
      BBB(twn);

    * National Short-term rating upgraded to F2(twn) from
      F3(twn).

The ratings of the TWD50 million and TWD300m senior unsecured
National bond maturing in June and July 2008, respectively, were
upgraded to BB from 'BB-, and to BBB+(twn)' from BBB(twn).

The Outlook on the ratings is Stable.

Eastern Broadcasting was placed on Rating Watch Positive in May
following the launch of a private offering of common shares and
on consideration of the consistent improvement in EBC's
underlying performance over the past several years.

The RWP is removed as the proceeds from the private offering of
112 million shares worth TWD1.76 billion have been received, of
which about TWD1bn has been used to pay down EBC's debt and the
remainder reserved for working capital needs as originally
intended.  "The capital injection reflects EBC's financial
flexibility and strengthens its capital structure with less
reliance on debt financing.

Fitch expects the company to maintain a lower leverage ratio
over the medium term in view of its continuing prudent financial
strategy," said Kevin Chang, associate director in Fitch's Asia-
Pacific Telecom, Media and Technology team.

Fitch says the upgraded ratings reflect the company's
sustainable market leadership position in the cable television
("CATV") business, the continuing stability of the CATV channel
fee income, as well as enhanced revenue mix from ongoing
business diversification.  These strengths are, nevertheless,
tempered by the competitive risks in Taiwan's fragmented CATV
advertising market, where growth has weakened 4% in the first
half of 2006.

The Stable Outlook reflects Fitch's expectation that EBC's
underlying performance will remain stable in the rating horizon.  
For the last 12 months ended June 2006, EBC's revenue increased
2.0% to TWD6.3bn while operating EBITDAR strengthened 0.9% to
TWD2.4bn (both compared to full year 2005).

Although there is potential of adverse financial implications
from the non-renewal of the two-year contracts with the
Taiwanese government relating to the Aborigines and Haka
channels in 2007 and 2008, such risk is mitigated by the new
license of STV Entertainment Channel and the re-broadcast of
News S Channel this year.

Following the recent private offering, local investors (Eastern
Multimedia Group and others) and foreign investors (Carlyle
Group) control 60% and 40% of EBC, respectively.  Carlyle's
interest includes its direct holdings as well as indirect
holdings through Eastern Multimedia Company.

                          *     *     *
Located in Taiwan, Eastern Broadcasting Company Ltd
--http://www.ettv.com.tw/ettv2003/01/engindex1-3.htm-- and its  
subsidiaries currently operate eight analogue cable channels,
four digital channels, a radio station (ETFM), a website
(ETtoday.com), a regional newspaper (Commons Daily) and a
merchandising and licensing division focused on child education
and lifestyle in Taiwan.  The company is also gradually
expanding its operation abroad with overseas broadcasting via
satellite, cable network, and internet protocol.  In 2005, EBC
generated revenues of TWD6.1 billion and EBITDA of TWD2.3
billion.


ELITE AIR: Wind-Up Petition Hearing Slated for November 1
---------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Elite Air Freight (Hong Kong) Ltd on November 1, 2006, at 9:30
a.m.

Lam Valerian presented the petition with the Court on
September 6, 2006.

The Solicitors for the Petitioner can be reached at:

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


GLOBAL POWER: Can Wind Down Heat Recovery Business Segment
----------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
authorized Global Power Equipment Group Inc., and its debtor-
affiliates to wind down the operations of the heat recovery
steam generator business segment.


The Debtors tell the Court that they had determined to wind down
this business segment prior to filing for bankruptcy, but in the
interest of caution, they asked for approval from the Court.

The Debtors say that they lack sufficient funds to operate this
business segment, which will likely sustain substantial cash
losses in the future.  The Debtors contend that the cessation
and orderly wind down of this business is in their best interest
as well as that of their estates, creditors and parties-in-
interest.

The Court also authorizes the Debtors to reject certain
executory contracts and unexpired leases in connection with the
wind down.  The Court has set 4:00 p.m. ET, on Oct. 23, 2006, as
the deadline for filing objections on the proposed rejections.  
The hearing on the proposed rejection and objections is
scheduled at 10:00 a.m. ET, on Oct. 26.


Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides  
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The company designs,
engineers and manufactures a range of heat recovery and
auxiliary equipment primarily used to enhance the efficiency and
facilitate the operation of gas turbine power plants as well as
for other industrial and power-related applications.  

The company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey,
Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.

The company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).  
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  As of Sept. 30, 2005, the Debtors
reported total assets of US$381,131,000 and total debts of
US$123,221,000.  The Debtors' exclusive period to filed a
chapter 11 plan expires on Jan. 26, 2007.


GOLDEN SKY: Members' Final Meeting Set for November 13
------------------------------------------------------
A final meeting of the members of Golden Sky Enterprises Ltd
will be held on November 13, 2006, at 9:30 a.m.

During the meeting, members will receive an account of the
company's wind-up and property disposal exercises from
Liquidator Lee Kwok On, Alexander.

According to the Troubled Company Reporter - Asia Pacific, the
Company commenced a wind-up of its operations on April 21, 2006.

The Liquidator can be reached at:

         Lee Kwok On, Alexander
         Rooms 1901-2, Park-In Commercial Centre
         56 Dundas Street, Kowloon
         Hong Kong


H & N Slimming: Court Hears Wind-Up Petition
--------------------------------------------
A wind-up petition filed against H & N Slimming and Beauty
Centre Company Ltd was heard before the High Court of Hong Kong
on October 18, 2006.

Ng Lai Ying filed the petition with the Court on August 1, 2006.

The Solicitors for the Petitioner can be reached at:

         Francis Kong & Co.
         Suite 903, 9/F, Kowloon Building
         555 Nathan Road, Kowloon
         Hong Kong


HK GAME TRADING: Liquidators Step Aside
---------------------------------------
Bruno Arboit and Simon Blade on September 21, 2006, ceased to
act as liquidators of HK Game Trading Ltd.

The Troubled Company Reporter - Asia Pacific previously reported
that HK Game issued its first and final dividend to certain
preferential creditors on June 12, 2006.

The former Liquidator can be reached at:

         Bruno Arboit
         Simon Blade
         1203-1213, China Merchants Tower
         Shun Tak Centre, 168-200 Connaught Road
         Central, Hong Kong


IN-WORK INTERNATIONAL: Creditors Must Prove Debts by Nov. 30
------------------------------------------------------------
Liquidator Li Kam Fai, Dominic requires creditors of In-Work
International Ltd to submit their proofs of debt by
November 30, 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:

         Li Kam Fai Dominic
         Rooms 2107-8, Kai Tak Commercial Bldg
         317-319 Des Voeux Road, Central
         Hong Kong


KAI NGAI: Creditors' Proofs of Debt Due on October 27
-----------------------------------------------------
Creditors of Kai Ngai Printing & Paper Products Co Ltd are
required to submit their proofs of debt to Liquidator Huen Ho
Yin by October 27, 2006, for them to share in any distribution
the company will make.

The Liquidator can be reached at:

         Huen Ho Yin
         Units 3307-3312, 33/F
         West Tower, Shun Tak Centre
         168-200 Connaught Road Centre, Sheung Wan
         Hong Kong


OCEANIA CRUISE: Moody's Assigns B2 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service gave Oceania Cruise Holdings,
Inc., these ratings:

   -- a corporate family rating of B2;

   -- an associated loss given default rating of LGD4, 50%; and

   -- a probability of default rating of B2.

Moody's also assigned ratings to several bank facilities,
subject to final documentation, that will be used to finance
Oceania's acquisition of three identical cruise ships that it
currently charters.

The borrowers under the bank facility will be three newly formed
subsidiaries (Newcos) that will each own one of the ships.  The
Newcos are owned by an intermediate holding company, Oceania
Cruises, Inc., that is in turn owned by Oceania.  

The ratings reflect:

   -- Oceania's small market share;

   -- reliance on a small fleet of ships; and,

   -- limited operating history.

Bond ratings assigned:

   -- US$25 million 5- year, senior secured first lien revolving
      credit facility guaranteed by Oceania and Oceania Cruises
      at B1, LGD 3, 41%.

   -- US$300 million 6-year, senior secured first lien term loan
      guaranteed by Oceania and Oceania Cruises at B1, LGD 3,
      41%.

   -- US$75 million 7-year, senior secured second lien term loan
      guaranteed by Oceania and Oceania Cruises at Caa1, LGD 6,
      92%.

Oceania Cruise Holdings, Inc. owns three passenger identical
cruise ships that each have 698 berths (2,094 in total)
operating under the brand name of Oceania Cruises.  The company
targets the upper premium segment of the cruise industry with
destination-oriented cruises that maximize on-shore activities.  

Oceania's principal areas of operation include the
Mediterranean, Northern Europe, South America, the Caribbean and
the Far East, including China, Thailand, Singapore and Hong
Kong.  

The company was formed in 2002 and began operating in 2003 when
it entered into a charter (lease) arrangement to operate the
first of three ships.  Oceania is headquartered in Miami,
Florida.


PETROLEOS DE VENEZUELA: Working with Enarsa to Audit Ayacucho 6
---------------------------------------------------------------
Petroleos de Venezuela SA, the state-run oil company of
Venezuela, will sign in November a contract with Enarsa, its
Argentine counterpart, for the audit of the hydrocarbon reserves
at the Ayachucho 6 deposit in Venezuela, Business News Americas
reports.

According to reports, the Argentine public works ministry said
that output at Ayacucho 6 in the Orinoco oil belt could reach
200,00 barrels per day.

Julio de Vido, the planning minister of Argentina, has discussed
with Rafael Ramirez -- Venezuela's mining and energy minister
who also serves as the president of Petroleos de Venezuela -- a
joint energy agenda.

The meeting would allow Enarsa to perform exploitation work in
Venezuela, through a partnership with Petroleos de Venezuela,
BNamericas states.

Petroleos de Venezuela SA -- http://www.pdv.com/-- 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.


POINT HARVEST: Members to Convene on November 14
------------------------------------------------
Members of Point Harvest Ltd will hold a final general meeting
on November 14, 2006, at 10:00 a.m., to receive an account of
the company's wind-up and property disposal activities from
Liquidator Chu Jeffy.

The Liquidator can be reached at:

         Chu Jeffy
         Room 1807, West Tower
         Shun Tak Centre, 168-200 Connaught Road
         Central, Hong Kong


PROTAN PLAZA: Creditors Proofs of Claim Due on November 13
----------------------------------------------------------
Creditors of Protan Plaza Ltd are required to submit their
proofs of claim to Liquidators Leung Moon Chuen and Wong Kai
Wing by November 13, 2006.

Failure to meet the requirement will exclude a creditor from
sharing in any distribution Protan Plaza will make.

The Liquidators can be reached at:

         Leung Moon Chuen
         Wong Kai Wing
         Room 1503 World Wide House
         19 Des Voeux Road, Central
         Hong Kong


SANMINA-SCI: Inks US$600 Million Term Loan Credit Agreement
-----------------------------------------------------------
Sanmina-SCI Corp. entered into a Credit and Guaranty Agreement,
dated Oct. 13, 2006, along with its subsidiaries, party thereto
as guarantors, the lenders party thereto from time to time, Bank
of America, N.A., as Administrative Agent, Citibank, N.A., as
Syndication Agent, Deutsche Bank AG Cayman Islands Branch, as
Documentation Agent, and Banc of America Securities LLC,
Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.,
as Joint Book Managers and Joint Lead Arrangers.  The Credit
Agreement provides for a US$600 million senior unsecured term
loan that matures on Jan. 31, 2008.  The company drew down the
US$600 million term loan simultaneously with the closing of the
transaction.

A portion of the proceeds of the term loan were used on Oct. 13,
2006, to effect, in accordance with the terms thereof, the
satisfaction and discharge of the Indenture, dated March 15,
2000, by and between SCI Systems, Inc. and the trustee, pursuant
to which SCI Systems, Inc., issued its 3% Convertible
Subordinated Notes due 2007.  In connection with the
satisfaction and discharge of the Indenture, US$532,875,000 in
cash was deposited with the trustee, which amount is equal to
the principal and interest scheduled to be due and owing on the
Notes on their maturity date, which is March 15, 2007.  The
company intends to use the remaining proceeds for working
capital and general corporate purposes.

Headquartered in San Jose, California, Sanmina-SCI Corporation
is one of the largest electronics contract manufacturing
services companies providing a full spectrum of integrated,
value added solutions.  

The company has locations in China, Finland, Malaysia, Mexico
and Singapore, among others.


SANMINA-SCI: Moody's Rates US$600MM Sr. Unsec. Term Loan at Ba2
---------------------------------------------------------------
Moody's assigned a Ba2 rating to Sanmina-SCI Corp. 's proposed
US$600 million unsecured term loan facility due 2008.  The
proceeds of the proposed US$600 million term loan will be used
to finance US$525 million of Sanmina's 3% convertible
subordinated notes due 2007.  Sanmina's corporate family rating
of Ba2 and all of its other outstanding ratings will remain
under review for possible downgrade.  Likewise, the new Ba2
rating on the proposed term loan facility will also be placed
under review for possible downgrade.

Moody's notes that Sanmina's debt ratings were placed under
review for possible downgrade on Aug. 14, 2006, following
Sanmina's announcement of the on-going investigation into its
stock option administration practices and its confirmation that
Sanmina would not be able to file with the Securities and
Exchange Commission its 10-Q for the quarter ended July 1, 2006,
by the required deadline as a result of the investigation.  The
ratings for the new facility reflects both the overall
probability of default of the company, to which Moody's assigned
a PDR of Ba2, and a loss given default of LGD 3.

Sanmina announced on Oct. 12, that it has concluded its internal
investigation of its stock options practices and that most stock
option grants to executives and employees between 1997 and 2006
were not correctly dated.  As a result, Sanmina will restate its
financial statements for the past 9 fiscal years, though the
amount of restatement has not been quantified.  Moody's
understands that cash impact from the restatement is not likely
to be material.

Although the conclusion of its internal investigation is an
important step toward resolution, Moodys' notes that Sanmina is
still under SEC and DOJ investigation, and has yet to file its
financial statements for the July 1, 2006 quarter, a violation
of its borrowing program covenant.  Sanmina has obtained consent
waivers from all of its debt holders, except for the holders of
its 2007 subordinated convertible notes, which will be
refinanced from the proceeds of the proposed term loan.  Until
Sanmina is able to file its financial statements within the
waiver period granted by the lenders, Moody's concern over
potential liquidity will remain and thus Sanmina's ratings
continue to be under review for possible downgrade.

Sanmina cited a general systemic controls failure as the cause
for options dating errors and plans to implement a number of
changes to improve internal control and accuracy of financial
accounting.  This controls failure raises concerns regarding the
quality of corporate governance and controls at Sanmina.  
Assessment of these risks, as well as continued exposure to
regulatory, legal and litigation risk, will be integrated into
the ratings review.  Moody's could move the ratings down if
further concerns regarding weakness in internal controls,
disclosure, or accounting controls emerge, if legal or
regulatory action yielded material costs or effected senior
management, or if concerns over its liquidity were to surface.  
Conversely, upon a favorable resolution of the SEC and DOJ
investigations, and satisfactory liquidity coupled with the
filing of the July 2006 quarterly report with non-material
restatements within the consent waiver period, Sanmina's ratings
could be confirmed.

Leverage and credit metrics will not change as a result of the
current refinancing.  Pro forma this transaction, leverage is
expected to be about 3.8 times to EBITDA (pre-restatement) and
EBITDA to interest coverage about 3.4 times, again pre-
restatement.  Sanmina remains well positioned as a tier-one EMS
provider and plays a critical role in the electronics supply
chain.

Moody's assigned and placed this rating under review for
downgrade:

   -- US$600 million senior unsecured term loan due 2008 at Ba2
      (LGD 3, 45%).

Moody's reviews these ratings for possible downgrade:

   -- Corporate family rating at Ba2;

   -- Probability-of-default rating at Ba2;

   -- US$400 million senior subordinated notes due 2013 at Ba3
      (LGD 5, 85%);

   -- US$600 million senior subordinated notes due 2016 at Ba3
      (LGD 5, 85%);

   -- SCI Systems Inc.'s US$525 million 3% convertible
      subordinated notes due 2007 (guaranteed by Sanmina) at
      B1 (rating to be withdrawn upon refinancing); and

   -- SGL-1 speculative grade liquidity rating.

Headquartered in San Jose, California, Sanmina-SCI Corp. is one
of the largest electronics contract manufacturing services
companies providing a full spectrum of integrated, value added
solutions.

The company has locations in China, Finland, Malaysia, Mexico
and Singapore, among others.


SUPER DATA: Creditors to Prove Debts by November 14
---------------------------------------------------
Creditors of Super Data Ltd are required to submit their proofs
of debt by November 14, 2006, to Liquidator Ho Wai Ip.

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

According to the Troubled Company Reporter - Asia Pacific,
members of Super Data resolved to voluntarily wind up the
company's operations on October 3, 2006.

The Liquidator can be reached at:

         Ho Wai Ip
         c/o Alliance & Associates, CPAs
         Room 1903, 19/F., World-Wide House
         19 Des Voeux Road Central
         Hong Kong


T.S. CHAN: Joint Liquidators Ceases to Act for the Company
----------------------------------------------------------
Chan Siu Nam, Tony and Chan Siu Tong, Tom on October 6, 2006,
ceased to act as joint and several liquidators of T. S. Chan
Ltd.

The former Liquidators can be reached at:

         Chan Siu Nam, Tony
         Chan Siu Tong, Tom
         Flat 302, 3/F, Grandview Mansion
         No. 1 Wang Fung Terrace, Tai Hang Road
         Hong Kong


THERMAL INTERNATIONAL: Members to Receive Wind-Up Report
--------------------------------------------------------
Members of Thermal International Ltd will hold a final general
meeting on November 20, 2006, 10:00 a.m., to receive Liquidator
Heng Poi Cher's account on the company's wind-up and property
disposal exercises.

The Liquidator can be reached at:

         Heng Poi Cher
         44/F., China Resources Bldg  
         26 Harbour Road, Wanchai  
         Hong Kong


TREASURE MANAGEMENT: Liquidator to Receive Proofs Until Oct. 27
---------------------------------------------------------------
Treasure Management Company Ltd. intends to distribute second
ordinary dividend to its creditors.

In this regard, Liquidator Kong Chi How, Johnson will be
accepting proofs of debt from the creditors until October 27,
2006.

The Liquidator can be reached at:

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


WAI YIP: Court to Hear Wind-Up Petition on November 15
------------------------------------------------------
A petition to wind up Wai Yip Transportation Company Ltd will be
heard before the High Court of Hong Kong on November 15, 2006.

Ho Ping Fung presented the petition with the Court on
September 18, 2006.

The Solicitors for the Petitioner can be reached at:

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


YING YUE: To Pay First and Final Dividend
-----------------------------------------
Ying Yue Garment Factory Ltd, as part of its liquidation
proceedings, plans to pay its first and final dividend to
preferential creditors on or after October 18, 2006.

The payment will be administered at Room 1845, 18/F, One
International Finance Centre, 1 Harbour View Street, Central,
Hong Kong.


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

BALLARPUR INDUSTRIES: Reports Better Results for 1Q FY 2007
-----------------------------------------------------------
Ballarpur Industries Limited posted its financial and operating
results for the first quarter of fiscal year 2007 (July 1 to
Sept. 30, 2006).

"The current quarter's results continue to reflect a firm demand
for paper," Ballarpur Industries said in press release.  "The
ongoing positive macroeconomic trends and a positive industry
cycle are key factors for strengthening our optimistic outlook
in the forthcoming quarters."

In the release, Ballarpur compared figures from the 1st quarter
of FY 2007 with the figures from the 1st quarter of FY 2006:

   -- Paper revenues increased to 17% to INR4,948.8 compared
      with INR4,229.5 million;

   -- Profit Before Interest, Depreciation, Taxation and
      Exceptional Items is higher by 14.7% at INR1,366.9 million
      compared with INR1,166 million;

   -- Profit Before Tax advances by 37.2% to INR75.9 million
      from INR548.9 million;

   -- Profit After Tax is higher by 31.8% at INR582.6 million
      compared with INR442 million;

   -- Quarterly EPS is at INR3.06 on a fully diluted basis; and

   -- The Company's cash generation from operations (PAT +
      Depreciation + Deferred Tax Liability + Amortization) has
      increased by 20.2% to INR1,074.1 million from INR893.7
      million.


Ballarpur also pointed out that production in Q1 FY 2007 total
114,396 mega tons compared to 97,493 MT in the same period last
fiscal year.  Ballarpur recorded total paper sales of 113,496 MT
in Q1 FY 2007 compared with 98,257 MT in Q1 FY 2006.

A full-text copy of Ballarpur's financial results for the
quarter ended September 30, 2006, is available for free at:

   http://www.bilt.com/investor/30thSept2006.htm

                  About Ballarpur Industries

Headquartered in Ballarpur, India, Ballarpur Industries Limited
-- http://www.bilt.com/-- is writing and printing paper company  
based in India.  BILT has five product groups: coated wood-free,
uncoated wood-free, copier, creamwove and business stationery.
There are three types of products in the coated wood-free
segment: two side coated paper, two side coated boards and
single side coated products.  The company is also a manufacturer
and exporter of paper, with a presence in all segments of the
usage spectrum that includes writing and printing paper,
industrial paper and specialty paper

On April 12, 2004, Standard and Poor's Ratings Service gave
Ballarpur Industries BB- ratings for both its long-term local
and foreign issuer credit.


ICICI BANK: Raises US$400 Million From Five-Year Note Offering
--------------------------------------------------------------
As widely reported, ICICI Bank raised US$400 million through the
issuance of senior unsecured five-year notes.  The notes are
issued under the Bank's multi-currency US$1-billion medium-term
note issuance program.

The Bank intends to use the issue proceeds to meet funding
requirements for its international operations and for general
corporate purposes.

The order book stood at US$1.1 billion with strong interest from
investors across Asia and Europe, Zee News says, citing a press
release issued by the Bank.

According to FinanceAsia.com, the bond prices at a re-offer of
99.739% on a coupon of 5.875%, to yield at 5.396%, equating to a
spread of 120.6bp over Treasuries or 73bp over mid-swaps

The Troubled Company Reporter - Asia Pacific reported on
October 18, 2006, that Standard & Poor's Ratings Services gave
the five-year notes a 'BB+' rating.

                       About ICICI Bank

Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group      
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance.  It also has
interests in the software development, software services and
business process outsourcing businesses.  The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others.  It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.

                          *     *     *

Fitch Ratings gave ICICI a 'C' Individual Rating.

On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd.  On
Oct. 16, S&P assigned its 'BB+' issue rating to its senior
unsecured, five-year, fixed-rate U.S. dollar notes.


ICICI BANK: Fitch Gives F1+(ind)(SO) Rating to Securitised Asset
----------------------------------------------------------------
Fitch Ratings has assigned an expected National Short-term
rating of 'F1+(ind)(SO)' to the pass-through certificates to be
issued by a special purpose vehicle, Loan Securitisation Trust
Series.  The transaction represents the securitisation of
receivables from a short-term loan proposed to be purchased from
ICICI Bank Limited.  The final rating is contingent upon receipt
of final documents conforming to information already received.

The loan aggregates to INR300 million and is extended by ICICI
to Apollo Tyres Limited ICICI proposes to assign the same loan
and the underlying receivables to the issuer.  The expected
rating of the PTCs reflects the credit quality of the underlying
obligor, the payment structure of the PTCs and the proposed
legal opinions.

The SPV will purchase the receivables from ICICI in trust for
the benefit of the investors.  After acquiring the receivables,
the SPV will issue PTCs to the investors for a total
consideration equivalent to the value of the discounted cash
flows from the loan for the next 91 days.  The proceeds from the
issuance will be passed through to ICICI for the purchase of the
receivables.  ICICI will continue to service the loan as the
collection and processing agent appointed by the trustee.

The rating of the certificates is referenced to the credit
quality of the underlying obligor.  For this purpose, Fitch has
carried out an internal analysis of Apollo, and hence takes the
view that the credit strength of underlying obligor is
sufficient to maintain the expected rating of the PTCs.

                       About ICICI Bank

Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group      
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance.  It also has
interests in the software development, software services and
business process outsourcing businesses.  The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others.  It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.

                          *     *     *

Fitch Ratings gave ICICI a 'C' Individual Rating.

On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd.  On
Oct. 16, S&P assigned its 'BB+' issue rating to its proposed
senior unsecured, five-year, fixed-rate U.S. dollar notes.


PHARMANET DEVELOPMENT: Amends Revolving Credit Agreement
--------------------------------------------------------
PharmaNet Development Group, Inc., has amended its credit
financing agreement.  As amended, the credit agreement provides
the company with a US$45 million revolving credit facility and
adjusts certain provisions of the credit facility.  UBS AG,
Stamford Branch, remains the administrative agent.

"We are very pleased that the credit facility amendment has been
completed," commented John P. Hamill, executive vice president
and chief financial officer.  "The amendment provides the
company with additional operational flexibility."

                      About PharmaNet

PharmaNet Development Group Inc., -- http://www.pharmanet.com/-
- formerly SFBC International, Inc., is a global drug
development services company, providing a range of both early
and late-stage clinical drug development services to branded
pharmaceutical, biotechnology and generic drug and medical
device companies around the world.  The company conducts its
operations in two segments: early stage and late stage clinical
development.  Early stage consists primarily of its Phase I
clinical trial facilities, bioanalytical laboratories and
clinical laboratories.  Late stage consists of its subsidiary,
PharmaNet, Inc., which primarily provides late Phase II through
Phase IV services.

Standard & Poor's Ratings Services affirmed its ratings on
Princeton, N.J.-based contract research services provider
PharmaNet Development Group Inc., formerly known as SFBC
International Inc., including the 'B+' corporate credit rating.  
The ratings were removed from CreditWatch, where they were
placed with negative implications on May 11, 2006.   The outlook
is negative.


PHARMANET DEVELOPMENT: Appoints P. Tombros & R. Classon to Board
----------------------------------------------------------------
PharmaNet Development Group, Inc., has appointed Peter Tombros
and Rolf Classon to its Board of Directors.

"One of our priorities has been to appoint new members to the
Board," commented Jeffrey P. McMullen, president and chief
executive officer.  "In addition to their vast industry
knowledge, Peter and Rolf are team-oriented, seasoned board
members who can help guide the Company into the future with a
shared vision and commitment to employees, customers, suppliers
and shareholders."

The Board appointed Mr. Tombros to fill the vacancy created by
the resignation of one of its directors.  Mr. Tombros will serve
until the Annual Meeting of Stockholders of the Company to be
held in 2007.

Mr. Tombros is currently Professor, distinguished executive in
residence at Pennsylvania State University.  Previously, he
served as chairman and chief executive officer of VivoQuest,
Inc., a drug discovery company, from 2002 to 2005 and president
and chief executive officer of Enzon Pharmaceuticals, Inc., a
biopharmaceutical company, from 1994 to 2001.

Mr. Tombros spent much of his career at Pfizer Inc., where he
held various positions of increasing responsibility including
vice president strategic planning and vice president investor
relations from 1990 to 1994, executive vice president, Pfizer
Pharmaceuticals from 1986 to 1990, senior vice president and
general manager, Roerig Division, from 1980 to 1986, vice
president marketing of Pfizer Laboratories Division from 1975 to
1980 as well as other marketing positions within Pfizer
laboratories Division from 1968 to 1975.

"Having devoted his career to drug development, Peter's
experience in the pharmaceutical and biotechnology industries
will be an asset to the Board," commented Jack Levine, chairman.
"His knowledge, industry perspective and solid track record will
help direct PharmaNet Development Group to build upon and
execute its strategies."

On Oct. 2, upon the recommendation of the Nominating Committee,
the Board increased the size of the Board from six members to
seven members, and appointed Mr. Classon to fill the vacancy.
Mr. Classon will serve until the Annual Meeting of Stockholders
of the Company to be held in 2007.

Mr. Classon served as interim president and chief executive
officer of Hillenbrand Industries from May 2005 to March 2006 at
which time he was appointed non-executive chairman, having
previously retired as chairman, executive committee from Bayer
Healthcare in 2004.  Previously, he held the positions of
president of Bayer Diagnostics from 1995 through 2002 and
executive vice president Bayer Diagnostics from 1991 to 1995 and
in these positions orchestrated a major turnaround and
strategically strengthened the company through acquisitions and
alliances.

From 1990 to 1991, Mr. Classon was president and chief operating
officer of Pharmacia BioSystems AB and in this role implemented
a major restructuring that resulted in improved profits and
performance.  He was president Pharmacia Development Company
from 1984 to 1990 and president of Pharmacia AB Hospital
Products Division from 1981 to 1984.  Prior to joining Pharmacia
in 1981, he served in general and organizational management
roles and consulted to the pharmaceutical industry.

"Rolf has had significant success managing and improving
complex, global businesses," commented Jack Levine, chairman.
"His guidance will assist PharmaNet Development Group to grow
and expand its footprint around the world."

The Board determined that each of Mr. Tombros and Mr. Classon
has no relationship with the Company or its subsidiaries, either
directly or indirectly, that would be inconsistent with a
determination of independence under the applicable rules and
regulations of NASDAQ or the Securities and Exchange Commission.

Neither Mr. Tombros or Mr. Classon nor any member of his
immediate family has engaged, directly or indirectly, in any
transaction, or series of similar transactions, with the Company
or any of its subsidiaries since Jan. 1 in which the amount
involved exceeds US$60,000.  In addition, neither Mr. Tombros,
nor Mr. Classon has any family relationship with any executive
officer or director of the Company.

The Board is in the process of determining which Committees Mr.
Tombros and Mr. Classon will serve, if any.

Mr. Tombros and Mr. Classon will receive compensation for
serving on the Board pursuant to the Board compensation plan
that was previously disclosed in the Company's filings with the
SEC.

                      About PharmaNet

PharmaNet Development Group Inc., -- http://www.pharmanet.com/-
- formerly SFBC International, Inc., is a global drug
development services company, providing a range of both early
and late-stage clinical drug development services to branded
pharmaceutical, biotechnology and generic drug and medical
device companies around the world.  The company conducts its
operations in two segments: early stage and late stage clinical
development. Early stage consists primarily of its Phase I
clinical trial facilities, bioanalytical laboratories and
clinical laboratories.  Late stage consists of its subsidiary,
PharmaNet, Inc., which primarily provides late Phase II through
Phase IV services.

Standard & Poor's Ratings Services affirmed its ratings on
Princeton, N.J.-based contract research services provider
PharmaNet Development Group Inc., formerly known as SFBC
International Inc., including the 'B+' corporate credit rating.  
The ratings were removed from CreditWatch, where they were
placed with negative implications on May 11, 2006.  The outlook
is negative.


QUEBECOR WORLD: Moody's Lowers Corporate Family Rating to B1
------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Quebecor World (USA) Inc. to B1 from Ba3, and moved this
benchmark rating to the parent company, Quebecor World Inc.  
Related ratings were impacted as listed below.  The outlook for
all ratings is negative.  This action resolves the review
initiated in July 2006 as a result of poor operating results in
the first half of the year.  The Corporate Family Rating has
been moved back to QWI as Moody's rates the family based upon
the consolidated financials of QWI.

The B1 Corporate Family Rating of Quebecor World Inc. primarily
reflects various measures of high leverage, and continued poor
operating performance in an industry undergoing secular decline.  
The rating is supported by the company's scale and diversity, by
the potential that the company's expenditures on new printing
presses will improve margins, and by management's ongoing
efforts to rationalize operations.

The rating outlook is negative because Quebec World Inc.'s
credit metrics will remain below the current B1 rating unless
further operating margin improvements are achieved from the new
presses and restructuring efforts, and this is not assured.  The
company's plan to improve its cash flow may be constrained by
industry dynamics outside management's control.

Reinstatements:

   Quebecor World, Inc.

   -- Speculative Grade Liquidity Rating, Reinstated to SGL-3;
      and

   -- Corporate Family Rating, Reinstated to B1

Outlook Actions:

   Quebecor World (USA) Inc.

   -- Changed To Negative From Rating Under Review

   Quebecor World Capital Corp.

   -- Changed To Negative From Rating Under Review

   Quebecor World Capital ULC

   -- Changed To Negative From Rating Under Review

   Quebecor World, Inc.

   -- Changed To Negative From Rating Withdrawn

Withdrawals:

   Quebecor World (USA) Inc.

   -- Speculative Grade Liquidity Rating, Withdrawn, previously
      rated SGL-3; and

   -- Corporate Family Rating, Withdrawn, previously rated Ba3.

LGD Ratings:

   Quebecor World Inc.

   -- PDR: B1 assigned

   Quebecor World (USA) Inc.

   -- PDR: Rating withdrawn; and

   -- US$130 million Convertible Senior Subordinated Notes, B3
      downgraded from B2, LGD6, 94%

   Quebecor World Capital (ULC)

   -- US$450 million Senior Notes due 2016, B1 downgraded from
      Ba3, LGD4, 50%

   Quebecor World Capital Corp.

   -- US$200 million Senior Notes due 2008, B1 downgraded from
      Ba3, LGD4, 50%;

   -- US$400 million Senior Notes due 2013, B1 downgraded from
      Ba3, LGD4, 50%;

   -- US$150 million Senior Debentures due 2007, B1 downgraded
      from Ba3, LGD4, 50%; and

   -- US$150 million senior Debentures due 2007, B1 downgraded
      from Ba3, LGD4, 50%.

The company has global facilities, including in India, France
and Argentina.


RELIANCE INDUSTRIES: Releases Half-Year 2006 Financial Results
--------------------------------------------------------------
Reliance Industries Limited released its unaudited results for
the half-year period ended September 30, 2006.

Reliance reported a net profit of INR5,256 crore (US$1,144
million), which is the highest in the private sector.

The company's performance highlights for the half-year ended
September 30, 2006, are:

   -- Turnover increase by 30% from INR42,777 crore to
      INR55,716 crore (US$12,132 million).

   -- Operating Profit increase by 15% from INR7,694 crore to
      INR8,868 crore (US$1,931 million).

   -- Cash Profit (before depreciation and deferred tax)
      increase by 13% from INR6,739 crore to INR7,591 crore
      (US$1,653 million).

   -- Net Profit increase by 10% from INR4,791 crore to
      INR5,256 crore (US$1,144 million).

   -- Earnings Per Share for the half-year is INR37.7 (US$0.82).

   -- Contribution to the national exchequer, for the half-year
      in the form of various taxes is INR6,015 crore
      (US$1,310 million).

   -- The Company's production of oil & gas and petrochemicals,
      including toll conversion, increased by 14% from
      6.54 million tonnes to 7.48 million tonnes.

   -- Refinery operated at 94.9% of capacity and processed
      15.7 million tonnes of crude.

   -- Exports of manufactured products increased by 115% from
      INR15,176 crore to INR32,683 crore (US$7,117 million).  
      Exports during the half year are equivalent to previous
      full year's exports of INR32,691 crores.

The Company has also reconciled its profits with US GAAP.
Reconciliation of Net Profit as per Indian GAAP and US GAAP is
as under:

                     Indian GAAP                U.S. GAAP
                 -------------------      ---------------------
                 INR Crs    US$ Mil.      INR Crs     US$ Mil.
                 -------    --------      -------    ----------
   Net Profit      5,256       1,144        4,453         1,187
   Difference                                 197            43

The difference is mainly on account of consolidation of
subsidiaries and associates and effects of exchange variation.

Commenting on the results, Chairman Mukesh Ambani said: "I am
happy with RIL's performance considering the challenges faced by
us due to the volatility both in crude and product prices along
with the natural calamity faced by us at our Hazira plant.  Our
superior product portfolio helped us in de-risking our business
to enhance shareholder value."

                         Business Review

Oil & Gas

High oil and gas prices have led to a significant momentum in
the E&P industry globally.  Despite challenges in discoveries of
new reserves, E&P companies world over are using their strong
cash flows in investing sizably in their exploration initiatives
along with exploiting current production levels.  This has in
turn led to a spurt in E&P activities resulting in tight rig
availability and increased rig rentals, coupled with increase in
cost of related services.

As a forerunner in the E&P sector in India, the Company's
business strategy is aimed at enhancing vertical integration in
its energy business and capturing the value across the entire
energy chain.  The Company's oil and gas business provides a
strong commitment towards strengthening India's energy security.

The Company is the largest exploration acreage holder among the
private sector companies in India with 34 domestic exploration
blocks covering an area of about 331,000 square kilometers.  The
Company also has five coal bed methane blocks in India covering
an area of about 4,000 sq kms.  Additionally, the Company also
has interests in one exploration block each in Yemen, Oman and
East Timor.

Exploration Review

Processing and interpretation of acquired seismic and other data
continues to be amongst the key initiatives at the Company's E&P
business.  Advance techniques such as multi-beam and
electromagnetic surveys are conducted in order to unveil the
potential existence of hydrocarbons.

During the period under review, two exploratory wells were
drilled during the period in block SR-01 and block KGIII5 with
drilling depth of 4,600 meters and 3,904 meters respectively.
Two hydrocarbon zones in SR01 and in KGIII5 were encountered
during drilling and the same have since been notified to
Director General of Hydrocarbons.

In order to further strengthen the prospects of its E&P
business, the Company has bid for 21 blocks in the recently
concluded NELP VI.  This round of bidding witnessed high level
of participation by leading international players, demonstrating
India's potential in the hydrocarbon business.  Results of this
round of bidding are expected to be announced by the end of
October 2006.

KGD6 Block

The development of Dhirubhai 1 & 3 discoveries of KGD6 is
progressing as per plan.  Orders for all critical long lead
items for offshore and onshore installations have been awarded.
Field engineering update for Onshore Terminal has been completed
and detailed engineering is progressing on schedule.  Site
filling for the Onshore Terminal and infrastructure area has
been completed and construction work is also under progress.
Drilling of four development wells is slated to commence later
this year.

The development plan envisages initial plateau production of 40
MMSCMD from KGD6 with the provision of modular expansion to
address potential discoveries.  Options for higher plateau
production from the area are being evaluated on the basis of an
upside potential in the Block.  This initiative entails
implementing one of the world's largest deep-water gas
development projects.

PMT Blocks

The Panna-Mukta blocks produced 804,513 MT of crude oil and 707
MMSCM of natural gas during the first half of FY 2006-07.

Production from Tapti was at 49,822 MT of condensate and 942
MMSCM of natural gas during the same period.  Production in
these blocks was hampered in August 2006 due to floods in ONGC's
facility at Hazira.

The expansion plan at the Panna-Mukta Block is on schedule and
is aimed at increasing production to 6.2 MMSCMD of gas and
52,000 BOPD of oil. Installations of platforms and in-field
pipelines have been successfully completed with the remaining
development work to be completed in 2007.

The Revised Plan of Development for the Tapti block which is
aimed at incremental recovery of 5.7 MMSCMD of gas is also
progressing on schedule.  All major contracts are being awarded
and the project is planned to go on stream in 2007.

CBM Blocks

The exploration program in the CBM blocks of the Company is also
progressing as per plan.  Gas in place estimates of 3.65 TCF at
the Sohagpur East and West blocks have been concurred by the
Director General of Hydrocarbons.  Preparation of the
development plan is in progress and efforts are on to produce
CBM by 2009 for the first time in India.

Overseas Blocks

The development plan for the block in Yemen was approved by the
concerned Ministry.  Drilling of development wells is under
progress.

In the block in Oman, a seismic vessel for 2D and 3D acquisition
was mobilized and data acquisition has commenced.

Additionally, the Company was awarded one deepwater offshore
block in East Timor Leste and the PSC is expected to be signed
in 2007.

Refining & Marketing

During the first half of FY 2006-07, domestic demand for
petroleum products increased by 2.2%.

The consumption of HSD, which accounts for more than a third of
the total consumption of petroleum products, registered a growth
of 6.7%.  Demand for LPG increased by 2.3%, MS increased by 6.4%
against the corresponding period of the previous year.  The
demand for ATF was strong and registered an increase of 25.8%.
On the other hand, consumption of Naphtha reduced by 13% due to
replacement by lower priced Natural Gas and higher hydel power
generation.

During the same period, the average prices of WTI, Brent and
Dubai were US$70.5 per barrel, US$69.7 per barrel and US$65.5
per barrel respectively while the peak prices for the same
period were at US$77.0 per barrel, US$78.7 and US$72.3 per
barrel respectively.

The International Energy Agency has projected a world oil demand
growth of 1.1 million b/d in 2006.

Factors such as improved global refining utilization, lower
turnaround rate, end of peak driving season in US and continued
fuel switching in China and US, led to a fall in refining margin
across all regions.  Singapore complex margin for the period
July to September 2006 averaged at US$4.75 per barrel as
compared to US$8.13 per barrel in corresponding period last
year.

The Company's EBIT margin for refining business declined to 6.4%
in Q2 FY07 from 8.2% last year.  At the absolute level, the EBIT
was lower by 3% at INR1,489 crore.  EBIT margin was lower
primarily due to softening of GRM for the quarter which declined
to US$9.1/bbl in Q2 FY07 from US$10.4/bbl in the corresponding
previous period.  The Company's complex refinery is uniquely
positioned to benefit from scenario of high light -- heavy
differential.

On a half-year basis, refining EBIT increased to INR3,524 crore,
an increase of 6% over the corresponding previous period.
However, the EBIT margin for the refining business declined to
8.0% in H1 FY07 as compared to 9.6% in the corresponding
previous period.

Reliance's refinery achieved capacity utilization of 94.9% and
processed 15.7 million tonnes of crude.  This utilization rate
compares favorably with those for other refineries, both in
India and abroad, at 88% for North America, 85% for Europe, and
86% in the Asia Pacific region.

Exports of refined products increased to 8.76 million tonnes as
compared to 5.18 million tonnes last year.  Exports of refined
products contributed to revenues of US$5.5 billion.  This
demonstrates the superior capability of the Company's world
class refinery that can cater to the global markets.

In the domestic market, prices at the retail fuel stations
remained unchanged thereby leading to under-recovery for private
players.  Lack of a level playing field in terms of preferred
treatment to the Government-owned Oil Marketing Companies
necessitated the Company's decision to increase prices in order
to reflect the true crude price scenario.  The Company has made
a representation to the Government to ensure a level playing
field for private marketing companies.

As a result of higher pricing, the Company lost its market share
in the retail business.  Owing to substantial decline in off
take, the Company also offered a support scheme to its dealers
to tide over the prevailing situation.

With recent moderation in international crude prices, the
Company has reduced the differential in retail selling prices
compared to Government-owned Oil Marketing Companies. The
Company would explore all measures to protect full capacity
utilization until such time a level playing field is achieved.

Petrochemicals

The Company continues to benefit from its unique positioning as
a fully integrated, globally competitive petrochemical producer.

In the petrochemicals business segment, the Company's EBIT
margin improved significantly to 16.2% in Q2 FY07 from 15.7%
last year.  At the absolute level, the EBIT was higher by 38% at
INR1,764 crore, a record performance.  Within the petrochemicals
business, polymer products and fibre intermediates witnessed
strong margins on account of lower naphtha cracks for most part
of the quarter.  This was partially offset by lower margins in
the polyester business due to high fibre intermediate prices.

On a half-year basis, Petrochemicals EBIT increased to INR2,851
crore, an increase of 32% over the corresponding previous
period.  However, the EBIT margin for the petrochemicals
business declined to 13.8% In H1 FY07 as compared to 14.6% in
the corresponding previous period.

In August 2006, some plants at the Company's Hazira complex had
to be shut down due to flooding in the Tapi River.  In addition
to production loss of 63,000 tonnes, there was an additional
cost of INR34 crore (US$7 million).  The same has been included
under the "Other Expenditure" section.

Polyester

The recent commissioning of an additional polyester capacity of
550,000 tonnes per year makes Reliance the world's largest
producer of polyester fibre and yarn with a combined capacity of
2 million tones.

Domestic demand for polyester registered a growth of 7% during
the first half of the year.  Demand growth was adversely
affected by floods in major consumption centers and volatile raw
material prices.

During the half-year, production volumes of PFY, PSF and PET
increased by 32% to 725,000 tonnes.  The recently commissioned
polyester facilities are operating at high utilization rates and
production is being absorbed in the domestic and international
markets.  Reliance has a domestic market share of 57% in
polyester products (PFY, PSF and PET).

Reliance has maintained its focus on specialty products. Niche
products constitute 57% of its PSF production and 32% of its PFY
production.  With the integration of Trevira, Reliance now has
the most diversified portfolio globally in polyesters across
commodity, specialty and niche products.

Production of PX, PTA and MEG, at 1,943,000 tonnes increased by
20% compared to corresponding period of the previous year.  In
July 2006, the Company commissioned a 730,000 tonnes per annum
PTA plant at Hazira.  Commissioning of integrated polyester and
PTA plants is timed in line with growing demand.

Reliance is one of the world's largest manufacturers of
polyester intermediates.  Reliance is world's 3rd largest
producer of PTA, 4th largest producer of PX and the 5th largest
producer of MEG. Reliance's share in the domestic market for
fibre intermediates (PX, PTA and MEG) stood at 82% collectively.

Polymers

Reliance is India's largest producer of polymers (PP, PE and
PVC) having a market share of 45%.  Reliance is the world's 7th
largest producer of PP.

The domestic demand for polymers grew marginally by 1% primarily
on account of higher prices.  Declining polymer prices towards
the end of the second quarter resulted in downstream processors
adopting a 'wait and watch' approach leading to a lower off-take
by the end of the quarter.

Production volumes of PP, PE and PVC increased by 7% to
1,032,000 tonnes primarily due to expansion of its PP capacity.
During the half-year, Reliance produced 389,000 tonnes of
ethylene, representing a decrease of 8% over corresponding
previous period and 187,000 tonnes of propylene, representing a
decrease of 7%.  The decrease in production was due to the
planned shut down of cracker plant during the half-year under
review.

Chemicals

Production of Linear Alkyl Benzene at 61,500 tonnes was higher
by 10% compared to the corresponding period of the previous
year.  Reliance's market share in LAB stood at 26%.

The Butadiene plant at Hazira produced 44,500 tonnes during the
first half of the year.

                         Financial Review

Turnover for the half-year ended September 30, 2006, was
INR55,716 crore (US$12,132 million), up 30% from the
corresponding previous period.  Net profit for the half-year
increased 10% to INR5,256 crore (US$1,144 million).  Other
income decreased from INR416 crore to INR66 crore
(US$14 million) on account of decrease in interest income due to
utilization of surplus funds primarily for investment in RPL
Consumption of raw materials increased by 41% from
INR28,769 crore to INR40,537 crore (US$8,827 million) primarily
on account of higher crude prices.

Employee cost increased by 18% from INR512 crore to INR602 crore
(US$131 million).  This increase was mainly on account of
performance linked incentives and increments.  Reliance's
employee cost as a percentage of sales is at 1% to 1.5%, which
is very competitive to its global peers.

Other expenditure, which includes conversion costs, selling
expenses, sales tax, repairs and maintenance, excise duty on
stock, and establishment expenses increased by 7% from INR4,232
crore to INR4,555 crore (US$992 million), mainly on account of
higher selling expenses owing to higher exports. During the
first week of August 2006, some plants at the Hazira
Manufacturing facility of the Company were shut down due to
flooding of the Tapi river.  Additional expense of INR34 crore
(US$7 million) have been incurred to restore operations of the
Hazira Plant which has been included under "Other Expenditure".

Operating profit before other income, increased by 21% from
INR7,278 crore to INR8,802 crore (US$1,917 million).  Despite
higher selling prices our operating profits were impacted due to
higher raw material cost.  Net operating margin during the half-
year was 16.6% compared to 18.9% in the corresponding previous
period.

Interest expenditure increased by 19% from INR458 crore to
INR544 crore (US$118 million) on account of increase in
borrowings and exchange differences.  The outstanding debt as on
September 30, 2006, was INR24,288 crore (US$5,289 million)
compared to INR21,866 crore as on March 31, 2006, and INR16,845
crore on September 30, 2005.

Net gearing during the half year was 29% compared to 25% on
March 31, 2006.  Interest cover during the half year was 8.8
compared to 7.7 on March 31, 2006.  RIL has a highest credit
rating of AAA from Crisil, and investment grade rating of Baa2
and BBB from Moody's and S&P respectively.  RIL's international
rating from both Moody's and S&P is above the sovereign rating
of India.

Depreciation charge for the half-year increased from
INR1,595 crore to INR1,925 crore (US$419 million).  This
increase was primarily on account of depreciation on assets
capitalized during the current quarter and also last quarter of
2005-06.  Profit before tax increased by 13% from INR5,640 crore
to INR6,399 crore (US$1,394 million).

Provision for taxation increased by 48% from INR497 crore to
INR733 crore (US$160 million), which includes Fringe Benefit Tax
of INR15 crore (US$3 million).  Provision for deferred tax
increased by 16% from INR352 crore to INR410 crore (US$89
million).

Profit after taxation increased by 10% from INR4,791 crore to
INR5,256 crore (US$1,144 million).

Capital expenditure during the half-year was over INR3,543 crore
(US$771 million) primarily on account of exploration &
production, implementation of value maximization projects and
other capital expenditure.

During the half-year, RIL acquired 90 crore equity shares of
Reliance Petroleum Ltd at INR60 per share.  Consequent to RPL's
20% share issue to public and 5% stake sale to Chevron by RIL,
RIL now holds 75% equity stake in RPL at an investment of
INR6,750 crore (US$1,470 million).

                 About Reliance Industries

Reliance Industries Limited -- http://www.ril.com/-- is engaged     
in the exploration and production sector.  The company is
organized into three major business segments, which include
Exploration and Production of oil and gas; Refining and
Marketing of petroleum products, and Petrochemicals, including
the manufacturing and marketing of polymers, polyester,
polyester intermediates and chemicals.  RIL's operations capture
value addition at every stage, from the production of crude oil
and gas to polyester, polymer and chemical products, and finally
to the production of textiles.  RIL also has exploration and
production interests in India, Yemen and Oman.  The company
operates mainly in India but has business activities and
customers in more than 100 countries around the world.  

Fitch Ratings gave Reliance Industries Ltd's foreign currency
long-term debt, long-term issuer default and local currency
long-term debt BB+ ratings effective on December 15, 2005.

Moody's Investors Service gave the company 'Ba2' long-term
corporate family, issuer, and senior unsecured debt ratings
effective March 17, 2005.


UNION BANK OF INDIA: Fitch Upgrades Individual Rating to C/D
------------------------------------------------------------
Fitch Ratings assigned National Long-term ratings to the
following debt programmes of Union Bank of India:

   * INR4 billion subordinated debt programme: 'AA+(ind)';

   * INR10bn upper Tier 2 bonds issue: 'AA(ind)'; and

   * INR3bn perpetual Tier 1 bonds issue: 'AA(ind)'.

At the same time, the agency upgraded UBI's Individual rating to
'C/D' from 'D' and affirmed all the other ratings as follows:

   * National Long-term rating at 'AA+(ind)'; and

   * Support rating at '3'.

The Outlook on the ratings is Stable.  The INR5bn subordinated
debt issued in September 1999 and INR1bn subordinated debt
issued in February 2001 have been paid in full.

The domestic perpetual Tier 1 and the Upper Tier 2 bond issues
are rated one notch below the National Long-term rating of the
bank, which is in accordance with Fitch's criteria for rating
such instruments.  The Upper Tier 2 capital has a tenure of 15
years and both issues have a call and coupon step-up after 10
years.  Interest on both the issues is not payable if the
capital adequacy ratio is below the regulatory minimum
(currently at 9%).  While interest on the Upper Tier 2 capital
is cumulative, interest on the perpetual Tier 1 capital is not.
Redemption of the issues will require the prior approval of the
Reserve Bank of India.

The upgrade of the individual rating reflects UBI's established
business franchise with a pan-India presence and fairly large
size, together with improved asset quality numbers.  The gross
non-performing loans ratio improved to 3.8% as at FYE06 from 9%
as at FYE03 due to lower NPL accretions and a focus on
recoveries.  While the gross NPL ratio was slightly higher than
the system median (3.3% as at FYE06), the bank plans to tighten
its credit processing and monitoring systems.  UBI's loan loss
coverage remained adequate at 60% as at FYE06.  The 'core-
banking software' covers 75% of UBI's business and supports its
plans of centralising the credit processing function.

The Tier 1 capital ratio improved to 7.3% as at FYE06 on the
back of an equity issue of INR4.95bn in February 2006.  However,
the total capital adequacy ratio declined to 11.3% as at FYE06
due to loan growth and increased regulatory charge on market
risks. Decline in the net interest margins affected
profitability in FY06.  While the cost of deposits has
increased, UBI expects to maintain its NIM by re-pricing its
loan book, a process that commenced in May 2006 when it raised
its benchmark lending rate by 50 basis points.

UBI is the seventh-largest Indian bank in terms of total assets
with a market share of about 3.7% of deposits.  The bank has now
diversified its loan portfolio to include retail and
infrastructure (9.5%) lending.

                         About the Bank

Union Bank of India -- http://www.unionbankofindia.com/-- is  
one of the ten largest Indian banks with total assets of over
INR800 billion as on March 31, 2006.  Union Bank was
incorporated in 1919 at Mumbai and was nationalized during the
first round of bank nationalization in 1969.  Until August 2002,
GoI fully owned the bank; currently, GoI has a 55% stake.
The bank has a nationwide presence with a geographically
diversified branch network.  As of March 31, 2006, it had 2,082
branches and 145 extension counters.

For the year ended March 31, 2006, Union Bank reported a PAT of
INR6.7 billion on total income (net of interest expenses) of
INR23.74 billion.  For the quarter ended June 2006, the bank
reported a PAT of INR1.7 billion (INR2.4 billion for the
corresponding period of the previous year) on a total income of
INR6.35 billion.

                          *     *     *

Moody's Investors Service gave the bank's foreign long-term bank
deposits a Ba2 rating.


UNION BANK OF INDIA: Posts 218% Increase in 2nd Quarter Profit
--------------------------------------------------------------
The Union Bank of India released its financial results for the
quarter and half-year periods ended September 30, 2006.

For the second quarter ended September 30, 2006, Union Bank
posted a net profit of INR194 crore, a 218% growth compared with
the INR61 crore net profit reported for the same quarter in
2005.  Total income increased by 25.9% from INR1,560 crore in
the quarter ended Sept. 30, 2005, to INR1,964 crore for the
second quarter of 2006.

As for the half-year period, the net profit of INR361 crore for
the half-year ended September 2006 showed growth of 19.93% from
the same period last year.  The Bank's operating profit for the
half-year ended Sept. 2006 improved to INR855 crore showing
growth of 20.42% over September 2005.  

Total business grew by 20.49% YoY from INR116,171 crore as of
Sept. 30, 2005, to INR1,39,972 crore as on Sept. 30 this year,
the Bank points out in a press release.

A full-text copy of the Bank's press release with the financial
results as of September 30, 2006, is available for free at:

   http://ResearchArchives.com/t/s?13ca


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

BANK NEGARA: Evaluates Non-Performing Loans for More Debt Cuts
--------------------------------------------------------------
PT Bank Negara Indonesia Tbk is now analyzing its non-performing
loans, totaling IDR4.7 trillion, in order to differentiate which
are adequate to have debt cuts and which are not, Tempo
Interactive reports.

Tempo cites Bank Negara Managing Director Sigit Pramono as
saying that out of the Bank's IDR10.1-trillion total NPLs,
around IDR5.4 trillion will be solved through restructuring
without debt cuts.  He added that Bank Negara will further
analyze the remaining NPL, around IDR4.7 trillion.

Mr. Sigit, according to the report, also said that Bank Negara
will soon sign a IDR1.4-trillion credit restructuring agreement
with a large group.

Mr. Sigit, however, clarified that that not all debtors would
receive haircuts.  He said that only those that really qualify
-- for example because of external factors such as exchange
rates or disasters -- would make it to the cut.

As reported by the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Bank Negara, as of October 16, had finished the
restructuring of IDR3.4 trillion-worth of NPLs, and expected
that figure to increase to IDR5.4 trillion by the end of the
year.  This would help bring down the Bank's NPL level by some
2%.

According to Tempo, the amount of NPLs that Bank Negara has
restructured up until October 16 is higher compared to the total
in September, which reached IDR3.13 trillion.  Of this
IDR3.13 trillion, the report says, the 20 biggest debtors
contributed around IDR900 billion.

                       About Bank Negara

Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id-- is a financial   
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature.  The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore.  The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
a securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.

                         *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service has lifted Bank Negara
Indonesia's senior debt rating to B1 from B2, and long-term
deposit rating to B2 from B3.  The revised ratings carry a
stable outlook.  Bank Negara's short-term deposit rating of Not-
Prime, and bank financial strength rating of E are unaffected.

Another TCR-AP report on May 24, 2006 stated that Fitch Ratings
affirmed Bank Negara's:

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

   * Short-term rating at 'B';

   * Individual rating at 'D'; and

   * Support rating at '4'.

Further, another subsequent TCR-AP report on July 17, 2006, said
that Standard & Poor's Ratings Services revised the outlook on
the local currency counterparty credit rating on Bank Negara to
stable from positive.  At the same time, Standard & Poor's
affirmed its foreign and local currency ratings on BNI
(B+/Stable/B).


CA INC: Adopts New Stockholder Protection Rights Agreement
----------------------------------------------------------
CA Inc.'s board of directors has unanimously adopted a
Stockholder Protection Rights Plan.  In response to feedback
from CA stockholders and to address corporate governance
concerns associated with rights plans, the company will ask its
stockholders to vote on its Rights Plan at its 2007 Annual
Meeting.

In connection with the adoption of the Rights Plan, the company
declared a dividend of one right on each outstanding share of
CA's common stock.  The dividend will be paid on November 30,
2006 upon expiration of CA's existing rights plan to
stockholders of record on Oct. 26, 2006.  The Rights Plan was
not adopted in response to any specific effort to acquire
control of the company and is not intended to prevent a takeover
at a full and fair price.

In addition to the customary "flip-in" and "flip-over"
provisions, the Rights Plan includes a number of features
adopted in response to recommendations by stockholders,
including setting the threshold for triggering exercise of the
Rights Plan at 20 percent of the outstanding shares rather than
15 percent; a fixed term for the Rights Plan of only three years
instead of ten; and a provision requiring a committee of
independent directors to assess annually whether the Rights Plan
remains in the best interests of CA's stockholders.  The Rights
Plan also includes a provision that states that the Rights Plan
will not be triggered by a "Qualifying Offer" if holders of at
least 10% of the outstanding shares of common stock request that
a special meeting of stockholders be convened for the purpose of
exempting such offer from the Rights Plan, and thereafter the
stockholders vote at such meeting to exempt such "Qualifying
Offer" from the Rights Plan.

"CA believes this Rights Plan, which has features similar to
those approved by stockholders at other companies, strikes an
appropriate balance between empowering the Board of Directors to
use a Rights Plan to increase its negotiating leverage to
maximize stockholder value and the current best practices in
corporate governance that give stockholders a voice in such
process," said Lewis Ranieri, chairman of the Board of
Directors.  "The 'Qualifying Offer' provision of the Rights Plan
provides our stockholders the ability to express their
preference for or against the offer while also providing our
Board with the time to attract and secure potentially superior
alternatives to maximize stockholder value.  In addition, the
annual review of the Rights Plan by independent directors is
intended to ensure that the Rights Plan only remains in place if
it continues to be in the best interests of the company and its
stockholders."

Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management  
software company that unifies and simplifies the management of
enterprise-wide IT.  Founded in 1976, CA serves customers in
more than 140 countries.  In the Asia-Pacific region, the
company has operations in Indonesia, Australia, China, Japan,
Hong Kong, India, Philippines and Thailand.


CORUS GROUP: Takeover Offer Cues S&P to Put Rating on Watch Pos.
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' long-term
corporate credit rating on U.K.-based steel consortium
Corus Group PLC on CreditWatch with positive implications
following the announcement by Corus concerning a possible
recommended offer for the company from Tata Steel Ltd., India's
second largest integrated steel company.

At the same time, Standard & Poor's placed its 'BB+' senior
secured bank loan ratings on Corus and its 'BB-' senior
unsecured debt ratings on Corus and related entity Corus Finance
PLC on CreditWatch with positive implications.  The 'B' short-
term corporate credit rating on Corus was also placed on
CreditWatch with positive implications.

"The CreditWatch placement reflects the possibility that the
ratings on Corus could be raised if the transaction
materializes, given the higher ratings on, and credit quality
of, Tata Steel," said Standard & Poor's credit analyst Alex
Herbert.  "We note that there can be no certainty that an offer
will be made, but we consider there to be sufficient
justification for a CreditWatch placement at the current time."

In resolving the CreditWatch placement, Standard & Poor's will
assess whether Corus' weak business risk profile would be
enhanced, and how such a transaction would be financed.
Furthermore, the rating agency will consider the potentially
substantial integration challenges.  Standard & Poor's will seek
to resolve or update the CreditWatch within 90 days.

Following the announcement of a possible recommended offer for
Corus, Tata Steel has been placed on CreditWatch with negative
implications.

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.


CORUS GROUP: Fitch Places BB- Default Rating on Watch Positive
--------------------------------------------------------------
Fitch Ratings placed Corus Group Plc's Issuer Default and senior
unsecured BB-, and Short-term B ratings on Rating Watch
Positive.  This follows its announcement regarding a possible
recommended offer for the company from India-based Tata Steel
Ltd.

The RWP also applies to the debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

Fitch will resolve the Rating Watch upon further clarity
regarding a potential offer, how that transaction would be
financed and the eventual closure of the deal.

The RWP reflects the possibilities that CS's ratings could
either be upgraded or affirmed at the current levels.  In
Fitch's view, the combined group would benefit from enhanced
scale and greater geographic diversity.  Based on the current
indicative offer of 455 pence per share, the agency notes that
the financial profile of the enlarged group would remain
consistent with rating in the BB rating category.

The combined group would also have a stronger operational
profile and higher operating margins compared to CS on a stand-
alone basis, given Tata Steel's low-cost operating position in
India, and the potential for it to supply semi-finished steel to
CS's value-added downstream operations in Western Europe.

Fitch notes, however, that a majority of basic steel production
would continue to take place at CS's higher-cost U.K. plants.
The agency views that Tata Steel will struggle to significantly
improve the operational performance of these plants given their
exposure to high U.K. electricity costs and their continued
dependence on externally purchased raw materials.  On balance,
however, Fitch considers that a tie-up with Tata Steel would be
positive for CS's operational profile.

Tata Steel is the second-largest Indian steel maker with crude
steel capacity of 5 million tonnes and FY05 revenues of INR202.4
billion (GBP2.6bn).  It has a strong position in its domestic
market and a globally competitive cost structure based on low
labor costs and high raw material self-sufficiency.

Tata Steel's FY05 operating margin of 31.4% was among the
highest in the steel industry globally, while it had
substantially low leverage of 0.5x.  Fitch considers Tata
Steel's current financial profile to be consistent with a low
investment-grade level rating.

The financing structure of the Tata Steel offer is not yet
disclosed.  In applying the RWP Fitch has considered several
funding options, including a fully debt-funded scenario at the
current offer level.

Discussions are continuing between CS and Tata Steel, which
raise the potential for an increased offer.  CS has been
actively seeking partners over the past year and it also remains
possible that competing bids may materialize.  While not
expected, a fully debt-funded bid at the higher end of market
expectations, resulting in pro-forma net leverage of around
4.5x, could potentially result in a rating downgrade.

Fitch notes, however, that the Tata Group has a track record of
equity support for its operational subsidiaries and it is
possible that an offer for CS could benefit from such support.

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.


LIPPO KARAWACI: Fitch Assigns 'BBB+(idn)' National Rating
---------------------------------------------------------
Fitch Ratings has assigned a National Long-term rating of
'BBB+(idn)' to Indonesia-based PT Lippo Karawaci Tbk.  The
Outlook for the rating is Stable.

LK's ratings reflect its exposure to the cyclical real estate
businesses, which contribute to nearly two-thirds of the
company's revenue and profits.  Fitch views commercial property
development (including retail malls), which is the main driver
of LK's recent and projected cash flows and profits, to have a
relatively high level of cyclicality and close correlation to
interest rate and economic cycles.  While LK's venture into
retail mall development has been highly profitable since it was
launched in late 2002, Fitch views that this track record is
limited and has been entirely within an up-cycle in the
Indonesian economy.  LK, which historically had focused solely
on developing the Lippo Karawaci township in suburban Jakarta,
merged with several other property-related companies in 2004,
thereby broadening its business mix.  This transaction increased
its recurring income, mainly from hotels and hospitals
businesses, which contributed 41% and 36% of total revenue and
EBITDA, respectively, in 2005.  However, the return on
investment in these sectors are currently at low levels with the
hotel business, in particular, suffering from low occupancy
rates of less than 60%, reflecting the high level of
overcapacity in the Indonesian hotel industry.

LK's ratings are supported by its position as one of the leading
property developers in Indonesia with a diversified revenue base
and a marketing strategy that appears to have been successful
within the Indonesian environment.  The company's approach of
pre-selling retail malls to fund construction costs has reduced
its reliance on external financing.  LK derives some financial
flexibility from the large land bank inventory in the townships
that it has developed, although Fitch notes that the ability to
monetise land bank is usually constrained during periods of
stress.  LK's financial leverage has evidenced an improving
trend.  Positive operating cash flow generation in 2005, along
with a rights issue of IDR918 billion, helped improve the Net
Debt/EBITDA ratio to 2.2x in 2005 from 5.4x in 2004.  LK has
used proceeds from the USD250 million notes issue to refinance
short-term debt to the extent of USD170 million.  This
significantly improves LK's debt maturity profile with no
repayment falling due until 2011.

The Stable Outlook reflects Fitch's expectation that LK will
continue to generate positive operating cash flows from its
current project pipeline thereby maintaining its existing
financial profile.  Poorer than expected sales from its planned
new launches, any material unplanned new investments or any
material financial support to related entities may result in a
negative rating action.  On the other hand, if LK manages to
reduce its leverage and sustain the Net Debt/EBITDA ratio below
2.0x through an economic and property cycle downturn, a positive
rating action may be taken.

LK is the largest listed property company in Indonesia with
revenue of IDR2,005 billion, EBITDA of IDR623bn and a net income
of IDR359 billion in 2005.  High interest rate environment in
the first half year ended June 2006 resulted in a 4% decline in
revenue to IDR912 billion and an 11% decline in operating
profits compared to the same period last year.  Its major
shareholders are the Lippo Group companies (27.0%), China
Resources (Holdings) Co. Ltd. (15.4%) and CP Inlandsimmobilien-
Holding GmbH (7.8%), the investment banking real estate arm of
Austrian Raiffeisen Bank.

Fitch also maintains a 'B+' Long-term foreign currency and local
currency Issuer Default ratings with a Stable Outlook on LK, as
well as a 'B+' and a Recovery Rating of 'RR4' on the USD250
million unsecured floating-rate notes due 2011, assigned on
March 24, 2006.


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

ALITALIA SPA: Hits Insolvency Risk Reports
------------------------------------------
Alitalia S.p.A. shrugged off reports that it might collapse
early 2007 and needs recapitalization to survive, AFX News says.

The carrier said the reports "are unjustified" since it has a
"solid and balanced financial structure."

Alitalia said it has EUR823 million in short-term funds on hand
and EUR932 million in net debt.  It added that in the last
years, it had improved its cost structure and increased traffic
volumes.

The airline, however, noted that its performance has been
depressed by competition from low cost carriers and delays in
implementing some restructuring measures.

Alitalia also assured of hitting its business plan targets,
despite delays caused by higher fuel costs, strikes, and
threatened strikes, AFX News says.  The carrier, however, said
it would add measures to implement its plan and allow the group
to reach pre-set targets for medium and long-term results.

Alitalia's Board of Directors met on Oct. 19 to discuss the
2007-2009 business plan.

As reported on Oct 13, 2006, Italian Prime Minister Romano Prodi
foresees a bankrupt national carrier in January 2007 unless
involved parties come up with an "agreed solution."

"We have until January to hammer out a solution which can avoid
bankruptcy," Mr. Prodi said, sharing the same observation posed
by Alitalia CEO Giancarlo Cimoli.

As reported in the TCR-Europe on Oct. 11, Mr. Cimoli revealed
that Alitalia is poised for collapse given its current cost
structure and market conditions.

"At present, the national carrier is unable to generate profit,
even for previously invested capital," Mr. Cimoli said.

Mr. Cimoli particularly blamed:

   -- excessive market regulations;
   -- high labor costs;
   -- recurrent labor strikes;
   -- rising oil prices;
   -- airport and regulatory inefficiencies; and
   -- unfair competitive advantages' enjoyed by low-cost
      airlines.

Mr. Cimoli also chided Italy's civil aviation and antitrust
authorities for their failure to secure Alitalia from "unfair"
competition.  Mr. Cimoli said these conditions have made it
unviable for Alitalia to compete with low-cost and foreign
rivals.

Mr. Cimoli had vowed to have Alitalia make a profit by year-end,
but reaching the goal seems unlikely after the carrier posted
EUR221 million in first-half net losses.  Mr. Cimoli said the
carrier is headed for a EUR300-million loss this year.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in
annual revenue and employs more than 11,000 people.  Alitalia
flies to about 80 destinations in more than 60 countries,
including Argentina, China, and Japan, from hubs in Rome and
Milan and operates a fleet of about 185 aircraft.  The Italian
government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection.  The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.


CAFES 2: S&P Rates Multi-Borrower Class E Certificate 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services had assigned its ratings to
Cafes 2's JPY16.4 billion floating-rate trust certificates,
classes A to E and X, due August 2013.  The trust certificates
are ultimately secured by nine nonrecourse loans backed by 29
real estate properties in Japan.  This transaction has been
arranged by Calyon Securities Tokyo Branch.

Standard & Poor's ratings address the full and timely payment of
interest and the full repayment of principal by the
transaction's legal final maturity in August 2013 for the class
A certificates, the full payment of interest and repayment of
principal by the legal maturity date for the class B to E
certificates, and the timely payment of available interest for
the class X certificates.

The ratings are based on:

   -- The quality of the loans that ultimately secure the rated
      certificates;

   -- The quality of the underlying properties that secure the
      loans;

   -- Ample credit support provided by the subordinated
      certificates;

   -- Liquidity support provided by servicer advances; and

   -- The soundness of the transaction's legal structure.

Ratings Assigned:

Cafes 2
JPY16.4 billion floating-rate trust certificates due August 2013

Class  Rating  Amount         Coupon Type  Overcollateralization
                                                  Ratio

  A     AAA    JPY12.33 bil.  Floating Rate       24.8%
  B     AA     JPY1.50 bil.   Floating Rate       15.7%
  C     A      JPY1.45 bil.   Floating Rate        6.8%
  D     BBB    JPY0.96 bil.   Floating Rate        1.0%
  E     BB+    JPY0.16 bil.   Floating Rate        0.0%
  X     AAA    JPY16.4 bil.   N/A                  N/A

Overcollateralization Ratio is defined as: 1-(A+B)/C
A: the rated obligations and equally ranked obligations
B: prior obligations to the rated obligations
C: underlying assets (including cash)

Calyon Bank Tokyo Branch entrusts loans with Sumitomo Trust
& Banking Corp., which in turn, issues an aggregate of
JPY16.4 billion trust certificates.  The trust assets consist of
nine loan receivables originated by Calyon Bank.  Each loan is
secured by property trust beneficial interests for 29 properties
owned by the nine obligors, as well as first security rights on
the properties.  Sumitomo Trust appoints Orix Asset Management &
Loan Services Corp. as the servicer.


EDDIE BAUER: 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 US and Canadian Retail sector, the rating
agency confirmed its B2 Corporate Family Rating for Eddie Bauer,
Inc. and its B2 rating on the Company's US$300 million term
loan.  In addition, Moody's assigned an LGD4 rating to notes,
suggesting noteholders will experience a 55% loss in the event
of a 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 Redmond, Washington, Eddie Bauer Holdings, Inc.
-- http://www.eddiebauer.com/-- is a specialty retailer that    
sells casual sportswear and accessories for the "modern outdoor
lifestyle."  Established in 1920 in Seattle, Eddie Bauer
believes the Eddie Bauer brand is a nationally recognized brand
that stands for high quality, innovation, style, and customer
service.  Eddie Bauer products are available at approximately
375 stores throughout the United States and Canada, through
catalog sales and online at http://www.eddiebaueroutlet.com/  
The company also participates in joint venture partnerships in
Japan and Germany and has licensing agreements across a variety
of product categories.  Eddie Bauer employs approximately 10,000
part-time and full-time associates in the United States and
Canada.


EDDIE BAUER: To Open at the Promenade Shops at Dos Lagos
--------------------------------------------------------
Eddie Bauer Inc. plans to open a new 5,204-square foot store at
The Promenade Shops at Dos Lagos in Corona, California, in
conjunction with the center grand opening on Nov. 2, 2006.

"Eddie Bauer is thrilled to be opening at The Promenade Shops at
Dos Lagos," said Lisa Erickson, Eddie Bauer spokesperson.  "It
promises to be a premier shopping and lifestyle destination,
with great outdoor spaces, making it perfect for Eddie Bauer.  
Surrounded by natural beauty, Corona residents embrace the
modern outdoor lifestyle. We look forward to providing active
customers with apparel and accessories that offer the perfect
mix of function and style."

The location will open featuring the company's Holiday 2006
Collection, including heritage sweaters and timeless down
outerwear.  As part of the Grand Opening Celebration, customers
will receive exclusive new store offers including our "Free Day
Out" promotion.  With a US$50 purchase, a customer will receive
a "Free Day Out" voucher for free admission to select local
attractions.

New stores will also feature the Essential Survival Kit Water
Bottle for a special price of US$10 (a US$19.50 value) and with
any purchase, customers will receive an Eddie Bauer coupon book
with unique offers for the next 6 months.  New store offers are
available while supplies last.

The new Eddie Bauer store will join our existing Victoria
Gardens location in the greater Corona area.

Headquartered in Redmond, Washington, Eddie Bauer Holdings, Inc.
-- http://www.eddiebauer.com/-- is a specialty retailer that    
sells casual sportswear and accessories for the "modern outdoor
lifestyle."  Established in 1920 in Seattle, Eddie Bauer
believes the Eddie Bauer brand is a nationally recognized brand
that stands for high quality, innovation, style, and customer
service.  Eddie Bauer products are available at approximately
375 stores throughout the United States and Canada, through
catalog sales and online at http://www.eddiebaueroutlet.com/  
The company also participates in joint venture partnerships in
Japan and Germany and has licensing agreements across a variety
of product categories.  Eddie Bauer employs approximately 10,000
part-time and full-time associates in the United States and
Canada.

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 B2 Corporate Family Rating for Eddie Bauer,
Inc. and its B2 rating on the company's US$300 million term
loan.  In addition, Moody's assigned an LGD4 rating to notes,
suggesting noteholders will experience a 55% loss in the event
of a default.


FTI CONSULTING: Buys Brower Kriz and G3 Consulting for US$14-M
--------------------------------------------------------------
FTI Consulting, Inc., has acquired Brower, Kriz & Stynchcomb and
G3 Consulting for a total of US$14 million.

Jack Dunn, president and chief executive officer, commented: "We
are excited to welcome BKS and G3 to FTI, and these purchases
are in keeping with our stated acquisition strategy.  These are
excellent companies that expand our capabilities to take
advantage of related market opportunities.  BKS brings
unparalleled experience in the domestic and international
construction industry to our Forensic and Litigation Consulting
segment.  G3's overall experience leveraging technology on
behalf of clients not only further extends our capabilities in
the UK, but also fits well with the needs of our newly-acquired
Financial Dynamics client base."

                   Brower, Kriz & Stynchcomb

Brower Kriz is a privately held, 31-person construction
consulting firm based in Maryland specializing in critical path
method schedule development, technical schedule review and
progress evaluation.  The purchase price for the acquisition was
approximately US$11.5 million, payable through a combination of
cash and restricted shares of the company's common stock, plus
the opportunity for future contingent consideration based on
specified financial objectives over the next five years.  The
three key Brower Kriz principals, Barry Brower, Jarad Kriz and
Paul Stynchcomb have joined the company and have signed five
year employment agreements.

Mr. Brower said: "Joining with FTI is a major forward step for
us.  It offers us a broader range of client opportunities as
well as providing FTI's clients in the construction industry
with deep service capability."

                         G3 Consulting

Privately held G3 Consulting is a UK-based, six-person
organization that delivers technology and business consulting to
UK clients facing corporate litigation, electronic disclosure
and public inquiries.  The company acquired G3 for approximately
$2.5 million through a combination of cash and restricted shares
of the company's common stock.  For the past six years G3 has
served as the primary direct UK supplier of the company's
Ringtail Legal products, as well as provided associated
Application Service Provider and professional and consulting
services.  G3 also brings extensive experience in the area of
electronic disclosure, having advised the UK's top law firms and
corporate legal departments on how best to increase the speed,
efficiency and quality of their electronic review using web
based tools.

Andrew Kennell, a Director of G3, said: "G3 has enjoyed a long
and productive relationship with FTI Ringtail.  Joining forces
with FTI's team is the natural progression to being able to
provide a wider range of services and support to our clients."

Baltimore, Maryland-based FTI Conslulting Inc. --
http://www.fticonsulting.com-- is a consulting firm focusing on  
five areas: forensics and litigation, corporate finance/
restructuring, technology, economic consulting, and strategic
communications.  FTI Consulting has offices in the United
States, the United Kingdom, Australia, China, Hong Kong, Japan,
and Singapore.

Standard & Poor's Ratings Services, on September 18, 2006,
assigned its 'B+' rating to FTI Consulting Inc.'s proposed
US$215 million senior notes due 2016.

At the same time, Standard & Poor's affirmed the corporate
credit rating of FTI at 'BB-' and revised the outlook to
positive from stable, based on strong earnings performance and
talent retention.

Moody's Investors Service assigned a Ba2 rating to FTI
Consulting, Inc.'s proposed US$215 million of senior unsecured
notes and lowered the ratings on its US$150 million senior
subordinated convertible notes to B1 from Ba3.  Moody's affirmed
the Ba2 corporate family rating and the Ba2 rating on FTI's
existing senior unsecured notes.  The rating outlook remains
stable.


ISUZU MOTORS: Expects Better Operating Profit for Sept. Quarter
---------------------------------------------------------------
Isuzu Motors Ltd is expected to post a group operating profit of
JPY50 billion for the April-September 2006 half, up 32% from a
year earlier, Forbes.Com reports.

The mark is higher than the earlier forecast pegged at JPY46.5
billion, the Nihon Keizai Shimbun reported, without citing
sources. The higher forecast is driven by brisk truck sales in
the Middle East and other resource-rich regions, as well as
active replacement demand in Japan in the wake of tougher
emissions regulations, the business daily said.

Revenue is expected to reach JPY800 billion, beating estimates
of JPY795 billion, the Nikkei said.

                        About Isuzu Motors

Headquartered in Tokyo, Japan, Isuzu Motors Limited --
http://www.isuzu.co.jp/-- is engaged in the manufacture and  
sale of automobile, automobile parts, as well as industrial
engines.  The company carries products such as light commercial
vehicles (LCVs) and commercial vehicles, which include large-
size trucks and buses, small-size trucks and pickup trucks,
among others.  It also manufactures and sells engines and
components.  Through its subsidiaries, the company is also
engaged in the provision of logistics services and other
services.  The company has offices in Japan, the United States,
Mexico, Belgium, and Thailand, among others.

On April 30, 2004 that Japan Credit Rating Agency (JCR) has
upgraded the ratings of Isuzu Motors Limited on the bonds of the
issuer from B+ to BB.

Rating And Investment Information, Inc. placed a BB rating on
Isuzu Motor's issuer rating and senior debt on July 28, 2005.


ISUZU MOTORS: Establishes JV in Germany and Austria
---------------------------------------------------
Isuzu Motors Limited and Mitsubishi Corporation have established
Isuzu Sales Deutschland GmbH in Germany, which is a joint
venture to sell Isuzu vehicles and its parts, Isuzu Motors said
in a press release.

The new JV will import and sell Isuzu vehicles and its repair
parts and provide services for them, in Germany and Austria,
with the purpose of reinforcing Isuzu sales network in Europe.  
It is capitalized at EUR3 million, 20% held by Isuzu and 80%
held by Mitsubishi.

Isuzu Sales Deutschland GmbH will be the third JV established
between Isuzu and Mitsubishi in the European market, following
Isuzu Benelux and Isuzu Iberia.

Currently Isuzu is actively tackling with improvement and
reinforcement of the organizations to expand overseas sales of
Isuzu CV, under the ongoing mid-term business plan (April '05 -
March '08). As a part of the alliance in Europe between Isuzu
and Mitsubishi, Isuzu will aim to further expand sales in the EU
market by entering the German and Austrian market.

Isuzu and Mitsubishi plan to expand sales of ELF-series trucks
and D-MAX pickups in the EU market by utilizing competitive
products and marketing know-how, which are the strengths of
their collaboration.

The German and Austrian market is a big market with sales volume
of trucks as high as approx. 100,000 units level and the top
shares are occupied by Mercedes-Benz (42%), Mann (23%) and Iveco
(11%). Among these, the L/D truck market size Isuzu is trying to
enter this time is said to be approx, 40,000 units, and the
pick-up trucks market size is approx. 9,000 units.

The 2007 Isuzu sales are planned at 400 units for ELF-series,
900 units for D-Max, and the 2010 sales planned at 800 units for
ELF-series and 2, 300 units for D-MAX.  Furthermore, ELF-series
will be imported from Japan and D-MAX from Thailand by Isuzu
Sales Deutschland GmbH, and be sold through local dealerships.

                        About Isuzu Motors

Headquartered in Tokyo, Japan, Isuzu Motors Limited --
http://www.isuzu.co.jp/-- is engaged in the manufacture and  
sale of automobile, automobile parts, as well as industrial
engines.  The company carries products such as light commercial
vehicles (LCVs) and commercial vehicles, which include large-
size trucks and buses, small-size trucks and pickup trucks,
among others.  It also manufactures and sells engines and
components.  Through its subsidiaries, the company is also
engaged in the provision of logistics services and other
services.  The company has offices in Japan, the United States,
Mexico, Belgium, and Thailand, among others.

On April 30, 2004 that Japan Credit Rating Agency (JCR) has
upgraded the ratings of Isuzu Motors Limited on the bonds of the
issuer from B+ to BB.

Rating And Investment Information, Inc. placed a BB rating on
Isuzu Motor's issuer rating and senior debt on July 28, 2005.


M-REAL OYJ: Moody's Affirms B2 Ratings on Strategic Review
----------------------------------------------------------
Moody's Investors Service affirmed the B2 Corporate Family
Rating as well as the B2 senior unsecured debt ratings of M-real
Oyj in addition to the B2 senior unsecured guaranteed MTN
program rating of its majority-owned subsidiary, Metsae Group
Financial Services Oyj, following the company's announcement of
the initial outcome of its ongoing strategic review.  The
outlook for the ratings remains negative.

In order to address overcapacities in the market, improve
profitability and alleviate liquidity constrains M-real has
announced its plans to:

   -- divest assets,

   -- close mills and paper machines at three of its
      fine paper plants, and

   -- improve efficiency at various levels, such as
      further streamlining operations and improving
      working capital.

The expected cash impact of all measures -- if carried out as
planned by the end of 2007 -- is estimated to be up to
EUR500 million with a positive net EBIT effect of up to
EUR40 million.  M-real anticipates additional cost savings from
the new program to be EUR100 million p.a. from 2008 onwards, but
largely being absorbed by further cost increases.  Improved
working capital management should have an impact of
EUR100 million going forwards.

Moody's views the intention of M-real to sell a minimum of 8% of
its share in Metsa-Botnia to its largest shareholder Metsaliitto
as the core of the restructuring plan as this proposed action is
thought to have the most certain outcome and provides M-real
with immediate liquidity whilst securing its source of low-cost
pulp in the medium to long term.

The negative outlook reflects the degree of uncertainties with
regard to timely asset disposals and the successful
implementation of further efficiency improvements while at the
same time continuously relying on third party funding.  In this
context Moody's notes that M-real has addressed upcoming debt
maturities by having started initial negotiations to refinance
its core EUR850 million revolving credit facility maturing in
November 2007.

In addition the negative outlook takes into consideration the
company's ongoing challenge to formulate a viable long-term
strategy with its current assets, operations and existing
financial profile.  Any change to its asset- or cash-coverage of
existing debt would need to be closely assessed in its impact on
the rating.

The last rating action on M-real was on July 6 when Moody's
downgraded all ratings to B2 from Ba3.

Based in Helsinki, Finland, M-real Oyj -- http://www.m-real.com/
-- is a leading European producer of fine paper products, with
FYE 2005 turnover of EUR5.2 billion.  The company has operations
in Japan, Brazil, China, India and Singapore.


M-REAL OYJ: Starts Restructuring; Foreign Sites Face Closure
------------------------------------------------------------
M-real Oyj disclosed an extensive restructuring program as a
first step in its strategic review.

The planned program includes possible capacity closures, a new
cost savings program, potential divestments and an impairment
charge of approximately EUR200 million.  The program will take
effect immediately with a planned completion by the end of 2007.

The restructuring program is being undertaken to cut capacity
and costs and in order to improve competitiveness.

                        Strategic Review

Since autumn 2004, M-real has focused on improving its position
through efficiency actions, affecting all M-real's operations
and Business Areas.  The implementation of these actions has
progressed according to schedule.

"M-real's Board of Directors initiated a strategic review of M-
real's current business portfolio in March 2006, with a view to
exploring potential benefits of participation in the
consolidation and restructuring of the European paper industry,"
Kari Jordan, Chairman of the Board of Directors of M-real, said.
"firmly believe that further consolidation within the European
paper industry is needed and that the structure of European
paper merchanting is going to change.  The planned restructuring
program announced today is the first step in the execution of
the strategic review."

                 Possible Closures of Capacity

"In order to reduce capacity, M-real has identified for possible
closure mills and production lines which are uncompetitive.
Following the possible closures mentioned, the competitiveness
of the remaining business is expected to be substantially
stronger.  One purpose of the possible closures is to contribute
to improving the supply-demand balance of the sector", says Kari
Jordan.

In total, M-real is planning to close two paper mills and an
additional two paper machines resulting in total closures of
485,000 tons.  The following mills or paper machines have been
identified as potential closure candidates:

   -- Sittingbourne, U.K., 210,000 tons of coated woodfree
      paper;

   -- Paper machines 6 and 7 in Gohrsmuhle, Germany, 100,000
      tons of coated woodfree paper; and

   -- Wifsta, Sweden, 175,000 tons of uncoated woodfree paper.

This would result in a reduction of M-real's fine paper capacity
by 15%, both in Commercial Printing and Office Paper Business
Areas.  The annual revenue of the mills affected is estimated to
be approximately EUR200 million.

The estimated cash cost of the planned closures will amount to
approximately EUR80 million, a one-time loss of approximately
EUR120 million while producing an ongoing positive annual EBIT
impact of EUR40 million.  Profit and cash impacts of possible
closures would be incurred during fourth quarter of 2006 and
first quarter of 2007.  The production lines, which will be
closed, employ approximately 500 people.

                    New Cost Savings Program

M-real is already in the process of undertaking a major cost
saving program initiated in 2004 in which a total of
EUR230 million of savings and efficiency improvements were
identified.  Measures related to the program have been
implemented by the second quarter of 2006.

In an effort to increase the operating efficiency of M-real, a
new savings program for a further EUR100 million of annual cost
improvements is announced today.  In addition to the previous
restructuring actions, M-real will focus on further cost
improvements of operational activities including a head office
efficiency improvement project, which includes integrating
business support functions with Metsaliitto Group support
functions and possible headcount reductions, sourcing projects,
logistics and supply chain rationalization, administration and
other fixed costs, IT costs and energy consumption.  The
ambition will be to realize further savings of EUR100 million by
the end of 2007 of which 30-40% P&L effect is to be achieved
already during 2007.

Additionally, M-real is launching a working capital improvement
program to further improve cash flows through more efficient
working capital management.  By improving supply chain
efficiencies, payment terms and inventory management, M-real is
targeting minimum of EUR100 million of cash flow improvements in
2007.

                   Strategic Review of Assets

M-real has carefully reviewed the company's asset base and short
listed potential divestitures which are expected to raise EUR500
million in proceeds.  The proceeds will be used to decrease
indebtedness.  The planned candidates for divestments include a
possible sale of minimum of 8% stake of Metsa-Botnia to
Metsaliitto and a potential sale of the Folding Cartons
converting business, all units or each unit separately:

   -- Meulemans carton plant in Belgium
   -- Petofi carton plant in Hungary
   -- Tako carton plant in Finland

Additional disposals are to be determined.

           Impairment and Summary of Financial Impact

M-real will book an impairment charge of approximately
EUR200 million during the fourth quarter of 2006.  The overall
impact of the planned restructuring program is estimated to be:

   -- impairments of approximately EUR200 million, and
   -- a one-time loss of approximately EUR120 million.

The cash cost of the planned capacity closures is estimated to
be approximately EUR80 million.  Profit and cash impacts of
possible closures will be incurred during fourth quarter of 2006
and first quarter of 2007.  EBIT improvement is estimated to be
EUR40 million.

"The paper industry has been a difficult sector for a number of
years and M-real like many of its competitors has had some tough
decisions to make," Mr. Jordan added.  "This initial
restructuring program has been undertaken as part of a broader
strategic review of M-real.  M-real will emerge from the program
in a much stronger position and be better positioned to
participate in the ongoing restructuring and consolidation of
the industry."

                      About the company

Based in Helsinki, Finland, M-real Oyj -- http://www.m-real.com/
-- is a leading European producer of fine paper products, with
FYE 2005 turnover of EUR5.2 billion.  The company has operations
in Japan, Brazil, China, India and Singapore.

Moody's Investors Service affirmed the B2 Corporate Family
Rating as well as the B2 senior unsecured debt ratings of M-real
Oyj in addition to the B2 senior unsecured guaranteed MTN
program rating of its majority-owned subsidiary, Metsae Group
Financial Services Oyj, following the company's announcement of
the initial outcome of its ongoing strategic review.  The
outlook for the ratings remains negative.


M-REAL OYJ: Names Mikko Helander as New Chief Executive Officer
---------------------------------------------------------------
M-real Oyj's board of directors has appointed Mikko Helander
(M.Sc.), 46, as new chief executive officer for M-real as of
Oct. 18, 2006.

Until this, Mr. Helander has worked as CEO for Metsa Tissue,
part of Metsaliitto Group.

M-real's CEO until Oct. 18, Hannu Anttila, has been appointed
Executive Vice President, Strategy, for Metsaliitto Group as of
Oct. 18, 2006.

                      About the company

Based in Helsinki, Finland, M-real Oyj -- http://www.m-real.com/
-- is a leading European producer of fine paper products, with
FYE 2005 turnover of EUR5.2 billion.  The company has operations
in Brazil, China, Japan, India and Singapore.

M-real Oyj disclosed an extensive restructuring program as a
first step in its strategic review.

Moody's Investors Service affirmed the B2 Corporate Family
Rating as well as the B2 senior unsecured debt ratings of M-real
Oyj in addition to the B2 senior unsecured guaranteed MTN
program rating of its majority-owned subsidiary, Metsae Group
Financial Services Oyj, following the company's announcement of
the initial outcome of its ongoing strategic review.  The
outlook for the ratings remains negative.


MITSUI LIFE: Moody's Upgrades Insurer Rating to Baa2 from Ba1
-------------------------------------------------------------  
Moody's Investors Service has upgraded to Baa2 from Ba1 the
insurance financial strength rating of Mitsui Life Insurance
Company Limited.  The rating outlook is stable.  This concludes
the review initiated on September 6, 2006.  The upgrade
incorporates Moody's view that Mitsui Life's improving operating
performance made it possible for the company to issue new shares
in September 2006.

Moody's comments that Mitsui Life's shifting of business
strategies to meet its changing operating environment --
including placing greater emphasis on third-sector products and
annuity insurance -- is likely to underpin its operating
performance, and that its relationships with its group banks are
likely to back its performance as deregulation of bancassurance
continues.

Moody's further believes that the subsidiary that Mitsui Life
has established together with Sumitomo Life Insurance Company
and Sumitomo Mitsui Banking Corporation to specialize in the
distribution of insurance products will contribute to Mitsui
Life's sales channel diversification.

Although Mitsui Life has been selling variable annuity insurance
with minimum guarantees -- which can be a high risk product for
insurers -- through banks, and has been taking a relatively
aggressive approach to the sales, its overall risk is attenuated
somewhat by the strengthened capital base and is limited by the
company's hedging strategy for the market risk, despite its
business expansion.

On the other hand, Moody's understands that Mitsui Life still
faces asset and liability duration mismatches and that its
bottom line has been relatively volatile, although this is
attributable to one-off items.

The stable outlook reflects Moody's expectation that the company
will continue to maintain its capitalization and will carry on
prudently managing its insurance risks.

Moody's would view increasing adjusted capitalization, backed by
earnings accumulation without increasing equity exposures and
managing minimum guarantee risks, to around 6% as a positive
rating driver, particularly if accompanied by a meaningful
reduction (e.g., to below 40%) in high-risk asset as a percent
of invested asset.

On the other hand, material changes in Mitsui Life's risk
appetite -- in underwriting or investments that enhance short-
term profitability or seek growth -- could lead to negative
rating pressures if they resulted in adjusted capitalization
below 4%.

Moody's last rating action with respect to Mitsui Life was taken
on September 6, 2006, when the rating of Ba1 was placed on
review for possible upgrade.

Mitsui Life Insurance Company Limited, headquartered in Tokyo,
is one of Japan's major life insurance companies, with total
assets of JPY 8.1 trillion as of March 2006.


PAYLESS SHOESOURCE: 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 US and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for Payless
Shoesource, Inc., and upgraded its B2 rating on the company's
US$200 million 8.25% senior subordinated notes to B1.  In
addition, Moody's assigned an LGD4 rating to notes, suggesting
noteholders will experience a 64% loss in the event of a
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 Topeka, Kansas, Payless ShoeSource, Inc. --
http://www.payless.com/-- is a family footwear specialty  
retailer with 4,605 retail stores, as of fiscal yearend
Jan. 28, 2006 (fiscal 2005), including 22 stores not open for
operations.  The company's Payless ShoeSource retail stores in
the United States, Canada, the Caribbean, Central America, South
America and Japan sold 182 million pairs of footwear, in fiscal
2005.  The company operates its business in two segments --
Payless Domestic and Payless International.  The Payless
Domestic segment includes retail operations in the United
States, Guam and Saipan.  The Payless International segment
includes retail operations in Canada; Puerto Rico; the United
States Virgin Islands; Japan; the South American Region, which
includes Ecuador, and the Central American Region, which
includes Costa Rica, Guatemala, El Salvador, the Dominican
Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago.


SOLO CUP: Completes Review of Accounting Issues
-----------------------------------------------
Solo Cup Co. has completed its previously announced review of
accounting issues and, based on that review, has restated
certain of its previously issued consolidated financial
statements. The company also announced that it has filed its
Form 10-Q for the second quarter ended July 2, 2006, with the
United States Securities and Exchange Commission, the filing of
which had been delayed pending completion of the review.

The filing of the second quarter 2006 Form 10-Q has satisfied
the terms of the indenture for the company's 8.5% Senior
Subordinated Notes due 2014.  In addition, on Oct. 13, 2006, the
company concluded its previously announced discussions with its
lenders under its credit facilities and obtained a waiver and
amendment through Jan. 2, 2007, with regard to those facilities.

                      About Solo Cup

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable  
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The company was established in 1936 and has a
global presence with facilities in Japan, Canada, Europe,
Mexico, Panama and the United States.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the non-paper Packaging sector, the rating
agency confirmed its B3 Corporate Family Rating for Solo Cup
Company.

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$150 million
   Sr. Sec.
   First Lien
   Revolver
   Maturing
   Feb 27, 2010           B2      B2      LGD3        34%

   US$637 million
   Sr. Sec. First
   Lien Term Loan B
   due Feb 27, 2011       B2      B2      LGD3        34%

   US$80 million
   Second Lien
   Term Loan due
   Feb 27, 2012          Caa1    Caa1     LGD5        70%

   US$325 million
   8.5% Senior Sub
   Notes due
   Feb 15, 2014          Caa2    Caa2     LGD5        87%


SOLO CUP: Reports US$670.3MM Net Sales for Quarter Ended July 2
---------------------------------------------------------------
Solo Cup Co. reported these results for the second quarter ended
July 2, 2006:

   -- net sales of US$670.3 million, an increase of
      US$23.4 million, or 3.6%, from the same quarter last
      fiscal year, as restated;

   -- gross profit of US$92.0 million, up 12.0% from the
      prior-year corresponding quarter, as restated; and

   -- a net loss of US$299.4 million, primarily reflecting a
      US$228.5 million non-cash charge for the impairment of the
      company's goodwill and a US$105.0 million non-cash charge
      to income taxes to establish a valuation allowance for its
      deferred tax assets.

"Two months to the day since we announced the delay in the
filing of our second-quarter results and the launch of our
internal review, we are pleased to report that we have completed
the review, that we have filed our restated consolidated
financial statements and our consolidated financial statements
for the second quarter of 2006, and that we can now focus 100
percent of our attention on running the company and building
value for our customers, other business partners, investors and
employees," said Robert M. Korzenski, Chief Executive Officer.

"The restatement work was a rigorous and intense process that
revealed certain material weaknesses in our financial controls
and we are taking decisive steps to address those issues," Mr.
Korzenski said. "Importantly, this work renewed our confidence
in the fundamentals of our business, reaffirmed the compelling
strategic, operational and financial rationale of the Solo
Cup/Sweetheart merger, and highlighted the quality and
dedication of our employee team.

"The restatement of our consolidated financial statements has
impacted our reported financial results but the process we have
gone through positions us well for long-term strength and
success," Mr. Korzenski concluded.

             Second-Quarter 2006 Financial Results

For the thirteen weeks ended July 2, 2006, the company reported
net sales of US$670.3 million, an increase of US$23.4 million,
or 3.6 percent, from net sales of US$646.9 million, as restated,
for the three months ended July 3, 2005.  The increase in net
sales reflects an increase in average realized sales price,
partially offset by lower unit sales volumes.  The increase in
average realized sales price reflects price increases
implemented during the previous eight months in response to
higher raw material costs; expanded product penetration within
the company's existing customer base; and sales to new
customers.  The volume decrease primarily reflects the effects
of pricing pressure in the marketplace and, to a lesser extent,
the company's decision to eliminate certain less-profitable
business.

Gross profit for the thirteen weeks ended July 2, 2006, was
US$92.0 million, an increase of US$9.8 million, or 12.0%, from
gross profit of US$82.1 million, as restated, for the comparable
period in 2005.  Included in gross profit is a US$22.1 million
pension curtailment gain and a US$9.8 million charge for excess
and obsolete spare parts and finished goods inventory primarily
relating to prior periods.  Selling, general and administrative
expenses were US$73.8 million, versus US$66.2 million, as
restated, for the three months ended July 3, 2005.  The increase
was primarily driven by one-time severance expenses related to
the company's reduction-in-force announced in April 2006, as
well as to the departure of certain senior executives.

For the thirteen weeks ended July 2, 2006, the company reported
a net loss of US$299.4 million, versus a net loss of
US$2.8 million, as restated, for the comparable period in 2005.  
The 2006 loss reflects a non-cash charge of US$228.5 million for
the impairment of goodwill and a non-cash charge of
US$105.0 million to income tax expense to increase the valuation
allowance for deferred tax assets.  The goodwill impairment
charge is the result of a third-party valuation study done as of
July 2, 2006.  The test was initiated based on a combination of
factors, including continued net losses and significant
increases in raw material and petroleum prices.

Commenting on the company's results for the second quarter of
2006, Mr. Korzenski said, "Our results were significantly
impacted by the goodwill and income tax adjustments, as well as
by a continued challenging industry environment.  We expect
these challenges in the industry to continue for the balance of
the year.  At the same time, with the restatement behind us, we
are now working with our advisors and investors to address the
multiple business improvement opportunities we see for the
company which we expect will position it for enhanced profit
improvement and growth."

   Restatement of Previously Issued Financial Statements

On Aug. 16, 2006, the company announced a temporary delay in the
filing of its Form 10-Q with the SEC for the second quarter
ended July 2, 2006, saying it would need additional time to
complete an internal review initiated by Mr. Korzenski of issues
regarding certain accounting practices and procedures related to
the company's second quarter of 2006 and prior periods.  The
company indicated that the issues pertained primarily to the
timely recognition of certain customer credits, accounts payable
and accrued expenses and the valuation of certain tangible and
intangible assets.  The internal review was led by Eric A.
Simonsen, the company's interim chief financial officer, and its
findings were discussed with KPMG LLP, the company's independent
registered public accountants.  On Sept. 19, the company
announced that, based on the initial findings of the review, it
had determined to restate certain of its previously issued
consolidated financial statements.

The review, which identified certain errors requiring correction
in the company's previously issued consolidated financial
statements, has now been completed, its findings have been
discussed with and approved by the company's board of directors,
and the company's Form 10-Q for the thirteen weeks ended July 2,
2006, was filed today on SEC Form 10-Q.  In addition, the
restatement of the company's consolidated financial statements
for the 2005, 2004 and 2003 fiscal years, along with certain
quarterly financial information for the interim periods
contained therein and for the first fiscal quarter of 2006, as
well as certain selected consolidated financial data for 2002
and 2001, have been effected through amendments on SEC Forms 10-
K/A for the fiscal year ended Jan. 1, 2006, and 10-Q/A for the
thirteen weeks ended April 2, 2006.

The categories of restated items included in one or more of the
company's restated consolidated financial statements include
timely recognition of certain credits to customers, certain
credits from vendors and certain accrued expenses; accrued
payroll and other related costs; accrued freight; and inventory
valuation.

The aggregate change in operating income associated with these
items was:

    -- an increase of US$3.2 million in the first quarter of
       2006;

    -- a decrease of US$19.7 million in full fiscal year 2005;

    -- a decrease of US$8.2 million in full fiscal year 2004;

    -- a decrease of US$7.1 million in full fiscal year 2003;

    -- a decrease of US$0.9 million in full fiscal year 2002;
       and

    -- an increase of US$0.2 million in full fiscal year 2001.

The restatement of the company's consolidated financial
statements did not impact its cash balances.  The company
currently has approximately US$23 million of cash on hand and
approximately US$36 million of borrowing availability under the
terms of its domestic revolving credit facility.

"We have taken, and continue to take, a number of steps to
maximize our near-term liquidity," Mr. Korzenski said.  "We are
also evaluating additional opportunities such as sales of non-
strategic assets and alternative financing strategies.  In
addition, we have engaged an independent consulting firm to
perform a thorough diagnostic review of our supply
chain/operations designed to reduce costs and improve
manufacturing efficiencies."

Mr. Korzenski added, "It should be noted that we now have a new
and very strong financial and accounting team; newly implemented
accounting controls; and a strong organizational commitment at
both the board and management levels to improved internal and
external communication."

                        About Solo Cup

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable  
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The company was established in 1936 and has a
global presence and facilities in Japan, Canada, Europe, Mexico,
Panama and the United States.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the non-paper Packaging sector, the rating
agency confirmed its B3 Corporate Family Rating for Solo Cup
Company.

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$150 million
   Sr. Sec.
   First Lien
   Revolver
   Maturing
   Feb 27, 2010           B2      B2      LGD3        34%

   US$637 million
   Sr. Sec. First
   Lien Term Loan B
   due Feb 27, 2011       B2      B2      LGD3        34%

   US$80 million
   Second Lien
   Term Loan due
   Feb 27, 2012          Caa1    Caa1     LGD5        70%

   US$325 million
   8.5% Senior Sub
   Notes due
   Feb 15, 2014          Caa2    Caa2     LGD5        87%


TIMKEN CO: Opens US$10-Mil. Technology Center in Clemson Univ.
--------------------------------------------------------------
The Timken Company opened its new 118,000 square-foot,
US$10-million Timken Technology Center on the campus of Clemson
University's International Center for Automotive Research.

The company says that the center is primarily responsible for
the development of automotive powertrain technology.  It allows
the company to consolidate product, process and application
engineering in a collaborative environment at CU-ICAR and enable
a more efficient and effective design process from a cost and
time-to-market standpoint.

The Timken Technology Center will employ more than 150 engineers
and technicians focused on developing innovative powertrain and
friction management solutions.  The facility includes state-of-
the-art engine, metrology and prototype labs.

"Collaborating with Clemson University brings the academic and
automotive communities together to develop real-world innovative
solutions in product- manufacturing engineering that are
intended to benefit the industry as a whole," Jacqui Dedo,
president of Timken's Automotive Group, said.  "We look at our
new facility as an important step toward developing more highly
differentiated products for our customers.  It also represents
an opportunity to participate in one of the premier automotive
and motorsports research and educational centers in the world."

In addition, the company and Clemson University established an
endowed chair, held by Dr. John D. Ziegert, to oversee
automotive design and development projects between the
university's research and development resources and the
company's on-site engineering group.

                         About CU-ICAR

The Clemson University International Center for Automotive
Research is a 250-acre research campus in Greenville, South
Carolina.  The Carroll A. Campbell Jr. Graduate Engineering
Center, focuses on systems integration between electrical,
digital and mechanical technologies in automobiles and many
other manufacturing platforms.

                    About The Timken Company

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered    
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Japan, Argentina, Australia, Belgium, Brazil,
Canada, China, France, Germany, Hungary, India, Italy, Korea,
Poland, Romania, Russia, Singapore, Spain, Taiwan, Turkey,
United States, and Venezuela and employs 27,000 employees.

                           *     *     *

The company's 7.16% Medium-Term Notes, Series A due 2027 carry
Moody's Investors Service's Ba1 rating.


YOKOGAWA ELECTRIC: Now Preferred System Supplier for Air Liquide
----------------------------------------------------------------
Yokogawa Electric Corporation has announced that it has been
selected by Air Liquide Engineering as a strategic preferred
system supplier of Process Control Systems for their air
separation units and syngas (HYCO) systems, Yokogawa Electric
said in a press release.

This agreement can be used by all Air Liquide affiliates.
Yokogawa products and services covered by this new agreement
include the CENTUM CS3000 integrated production control system,
the ProSafe-RS safety system, software solutions, and system
integration engineering and maintenance services.

"We have become a trusted partner of Air Liquide over the past
seven years by demonstrating our global capabilities and the
strength of our service support organization. We have helped
build and improve a dedicated business model that significantly
reduces their total cost of ownership (TCO) and meets their ever
more diversified needs, making them more competitive. This
successful partnership was undoubtedly a factor in our
selection", said Teruyoshi Minaki, Director, Executive Vice
President of Yokogawa's International Business Headquarters.

"We chose Yokogawa again as our strategic preferred control
system supplier through an intensive year-long technical and
commercial evaluation process. We have been fully satisfied with
the quality of their products, cutting-edge technologies,
integrated system solutions, smooth project execution and
outstanding global service support. We intend to build a
stronger business partnership than ever before with Yokogawa
globally based on this newly signed agreement", said Leonardo
Caroli, Procurement Vice-President, Air Liquide Engineering.

                  About Yokogawa Electric Corp.

Yokogawa Electric Corporation -- http://www.yokogawa.co.jp/--  
is a manufacturing company mainly engaged in the manufacture and
sale of measurement control equipment and information equipment.  
The company manufactures measurement control equipment and
information equipment through its subsidiaries, and sells the
equipment in the country, as well as overseas markets, including
Southeast Asian countries, European countries and the United
States, through its subsidiaries.  Yokogawa Electric also offers
engineering services and post-sale services.  Along with one of
its subsidiaries, the company also manufactures security-related
equipment.  Its other business activities encompass the real
estate-related business and the provision of recruitment
services.  Headquartered in Tokyo, Yokogawa Electric has 92
subsidiaries and 14 associated companies in Japan, as well as
overseas markets, such as the United States, Singapore, the
Netherlands, Brazil, Korea and China.

On June 7, 2004, Standard and Poors Rating Agency gave the
company BB+ long-term local and foreign issuer credit ratings.


YOKOGAWA ELECTRIC: Unit Releases Event Package Upgrade
------------------------------------------------------
Yokogawa Corporation of America, the North American unit of
Yokogawa Electric Corporation, has released an upgrade to its
increasingly popular Exaplog Event and Analysis Package to
version R3.10, the company said in a press release.

Exaplog is a software product that categorizes event logs
acquired from process automation systems in terms of "Process
Requests" (alarms, annunciators, etc.) and "Operator's Actions"
(setting values changing modes, etc.).  By observing the balance
of these alarms and events in a graphical manner, operation-
related problems can be quantitatively identified and
classified.

The Exaplog Event Analysis Package gathers historical events
from a process control system, saves the historical information
in a local database, and provides analytical functions. These
functions include an Event Balance Trend (EBT) Graph, which
displays the balance between "process requests volume" and
"operator work volume," a 3W ("When, What, Where") Filter, which
extracts events occurring at problem areas, a Message Summary
Window, which displays the time of an event, its type, and
detail of time order of event occurrences, and a Category Sort
Window, which sorts events by type (such as alarm notification
or recovery) and displays the results in pie charts and tables.

Event IDs, such as tag names, can be sorted and displayed in
numerical order of the number of event occurrences, and an Event
Data Filter provides for display of only a selected event or can
zoom in on a selected time span. The graphical interface allows
the user to isolate the problem on the graph, isolate a
problematic tag or set of tags, determine the reason for
excessive actions, and determine the problem frequency - that
is, does it occurs each day or during a certain time period? By
this method, Exaplog helps eliminate unnecessary alarms,
improves inefficient operation sequences, and, thus, improves
the production process.

Major features of Exaplog R3.10 are as follows:

   1. Increase number of days of data the can be displayed to
      over a month or 31 days.

   2. Increase the maximum number of events that can be
      displayed to a million (1,000,000).

   3. Increase the maximum number of events per day that can be
      saved to 150,000.

   4. Add Fieldbus related messages to the types of messages
      that can be saved and analyzed.

Exaplog becomes a perfect tool to analyze alarms and events in
order to intelligently deploy alarm management strategies and
tools such as Yokogawa's AAASuite the provides functions for
minimizing nuisance alarms and providing timely notification of
only necessary alarms.

              About Yokogawa Corporation of America

Yokogawa Corporation of America is the North American unit of
US$4 billion Yokogawa Electric Corporation, a global leader in
the manufacture and supply of instrumentation, process control,
and automation solutions. Headquartered in Newnan, Georgia,
Yokogawa Corporation of America serves a diverse customer base
with market-leading products including analyzers, flowmeters,
transmitters, controllers, recorders, data acquisition products,
meters, instruments, distributed control systems, and more.

                  About Yokogawa Electric Corp.

Yokogawa Electric Corporation -- http://www.yokogawa.co.jp/--  
is a manufacturing company mainly engaged in the manufacture and
sale of measurement control equipment and information equipment.  
The company manufactures measurement control equipment and
information equipment through its subsidiaries, and sells the
equipment in the country, as well as overseas markets, including
Southeast Asian countries, European countries and the United
States, through its subsidiaries.  Yokogawa Electric also offers
engineering services and post-sale services.  Along with one of
its subsidiaries, the company also manufactures security-related
equipment.  Its other business activities encompass the real
estate-related business and the provision of recruitment
services.  Headquartered in Tokyo, Yokogawa Electric has 92
subsidiaries and 14 associated companies in Japan, as well as
overseas markets, such as the United States, Singapore, the
Netherlands, Brazil, Korea and China.

On June 7, 2004, Standard and Poors gave the company BB+ long-
term local and foreign issuer credit ratings.


YOKOGAWA ELECTRIC: Gets Cert. For Safety Instrumented System
-------------------------------------------------------------
Yokogawa Electric Corporation has disclosed in a press release
that its ProSafe-RS Safety Instrumented System has received type
approval from certification organizations in the United States,
France, and the United Kingdom for use on floating production,
storage, and offloading (FPSO) vessels; liquefied natural gas
(LNG) carriers; and the like.

Prior to the acquisition of type approval, the ProSafe-RS Safety
Instrumented System was subject to compliance testing by
certification organizations for every project in which Yokogawa
was involved. Now that the ProSafe-RS has been type approved, we
can deliver our safety-instrumented system for FPSO facilities
and LNG carriers without having to go through compliance test
procedures.

The certification organizations issuing this type approval to
the ProSafe-RS are the American Bureau of Shipping, Bureau
Veritas (France), and Lloyd's Register (UK).  These
certification organizations prescribe the conditions and
performance requirements for the equipment and systems used on
ships and offshore floating facilities.  Specifically, the
systems and equipment are required to operate normally under the
conditions of listing, vibration, electromagnetic interference,
and power supply voltage fluctuation that exist in an offshore
environment.  Equipment and systems must meet these stringent
requirements to receive type approval.

Independently of the process control system, the ProSafe-RS
detects any signs of abnormality during plant operation and
safely executes an appropriate emergency operation, such as a
system shutdown, in order to prevent an accident from occurring.
With the rising awareness of the need for maritime safety,
demand is increasing for this type of system.

Taking advantage of this type approval acquisition, we will
aggressively promote the sale of the ProSafe-RS for use with
highly demanding FPSO systems, and on LNG carriers and drilling
ships, while assertively expanding our safety instrumentation
business.  

              About Yokogawa Corporation of America

Yokogawa Corporation of America is the North American unit of
US$4 billion Yokogawa Electric Corporation, a global leader in
the manufacture and supply of instrumentation, process control,
and automation solutions. Headquartered in Newnan, Georgia,
Yokogawa Corporation of America serves a diverse customer base
with market-leading products including analyzers, flowmeters,
transmitters, controllers, recorders, data acquisition products,
meters, instruments, distributed control systems, and more.

                  About Yokogawa Electric Corp.

Yokogawa Electric Corporation -- http://www.yokogawa.co.jp/--  
is a manufacturing company mainly engaged in the manufacture and
sale of measurement control equipment and information equipment.  
The company manufactures measurement control equipment and
information equipment through its subsidiaries, and sells the
equipment in the country, as well as overseas markets, including
Southeast Asian countries, European countries and the United
States, through its subsidiaries.  Yokogawa Electric also offers
engineering services and post-sale services.  Along with one of
its subsidiaries, the company also manufactures security-related
equipment.  Its other business activities encompass the real
estate-related business and the provision of recruitment
services.  Headquartered in Tokyo, Yokogawa Electric has 92
subsidiaries and 14 associated companies in Japan, as well as
overseas markets, such as the United States, Singapore, the
Netherlands, Brazil, Korea and China.

On June 7, 2004, Standard and Poors gave the company BB+ long-
term local and foreign issuer credit ratings.


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

DRESSER INC: Moody's Assigns B1 Rating to Planned US$935MM Loan
---------------------------------------------------------------
Moody's Investors Service assigned a B1, LGD 3 (37%) rating to
Dresser, Inc.'s proposed US$935 million of senior secured bank
credit facilities.  

At the same time, Moody's affirmed Dresser's B1 Corporate Family
Rating and changed the company's Probability of Default Rating
to B2 from B1.  The outlook remains negative pending the filing
of its restated financial statements.  

Proceeds from the new bank credit facility are being used to
refinance Dresser's existing senior secured credit facility,
senior unsecured term loan, and senor subordinated notes.  
Moody's will withdraw the ratings on the existing secured credit
facility, senior unsecured term loan, and subordinated notes
upon their redemption.

The negative outlook reflects:

   -- Moody's concern that the amount of time to complete the
      restatements could be considerable; and,

   -- the challenges the company faces to remediate its material
      weaknesses over internal controls.

In March of this year, Dresser reported its inability to file
its 2005 Annual Report on Form 10-K by the March 31, 2006
requirement.  And in May, the company announced that it would
need to restate its financial statements for fiscal year 2004,
as well as the 2004 and 2005 quarterly financial statements,
representing the third time that the company has had to restate
its financial results over the past three years.  It remains
unclear at this time if the company will need to restate its
financial statements for periods prior to 2004.  Moody's
believes that ongoing financial statement filing delays have
created significant management distractions.  It is possible
that the restatement process could continue to be protracted.

Dresser reported six material weaknesses, two of which relate to
its former on/off valves business, which was sold in November
2005.  These weaknesses are the root cause for the company's
filing delays and restatements.  While Moody's notes that the
financial impact of the restatements appears to be modest, the
nature and pervasiveness of the internal control issues reported
are very serious because they relate to company-level controls
and indicate a weak control environment.  Dresser is making
efforts to address the material weaknesses; however, the company
still has substantial work to do in addressing company-level
controls and the control environment, which will continue to
remain a significant distraction for management.  Until the
material weaknesses are fully resolved, some uncertainty remains
regarding the company's financial reporting, particularly given
the company's substantial international exposure.

Should the delay in completing the financial statements become
extended materially beyond December 2006 and if Moody's
determines that it lacks sufficient financial information to
appropriately monitor the company's credit, the ratings could be
withdrawn.

The ratings could be pressured if the company does not maintain
relatively conservative financial policies.  The company is
currently exploring strategic alternatives, including the
potential sale of the company.  Approximately 88% of Dresser's
outstanding equity is currently owned by First Reserve
Corporation and Odyssey Investment Partners.  Uncertainty
remains as to a potential new owner's strategic direction for
the company, depth of industry experience, and credit quality.

The outlook could stabilize if Dresser

   -- is able to file its restated financial statements with the
      SEC in the near-term and becomes current on its quarterly
      financial statement filings;

   -- is able to make material progress in resolving its
      material weaknesses; and,

   -- continues to exhibit positive trends with respect to its
      financial performance.

However, the rating and outlook would be subject to a full
review of the audited financial statements.

Dresser's B1 Corporate Family Rating is restrained:

   -- by the company's high leverage relative to cyclical and
      competitive sector conditions;

   -- working capital intensity;

   -- low hard asset coverage of debt (high intangible assets
      and low tangible fixed assets), reflecting a significant
      service orientation;

   -- increasing exposure to political risk as a result of
      expected growth in certain international markets;

   -- financial performance that while improving has been below
      expectations; and,

   -- weak internal controls.

The B1 rating is supported:

   -- by the company's substantial scale and diversification;

   -- its long-standing, leading market positions;

   -- a large installed base of client infrastructure, deployed
      and served by Dresser over many decades, which adds
      durability to its earnings;

   -- manageable cash flow cycles for the rating and leverage;

   -- seasoned management;

   -- improving financial performance;

   -- the breadth and financial strength of much of its customer
      base; and,

   -- low maintenance capital spending needs.

Dresser's proposed US$935 million senior secured credit
facilities consist of:

   -- a seven-year US$785 million term loan facility,

   -- a seven-year US$50 million synthetic letter of credit
      facility, and,

   -- a six-year US$100 million revolving credit facility, which
      is expected to be unfunded at closing.

The term loan facility, which has minimal amortization until
maturity, is expected to have a cash sweep mechanism that would
require a portion of free cash flow to be applied toward debt
reduction if leverage exceeds certain thresholds.  Financial
covenants under the facilities are expected to include a
leverage ratio, interest coverage ratio, and maximum capital
expenditures. In addition to the proposed credit facilities,
Dresser's pro-form capitalization will consist of a modest
amount of debt at foreign subsidiaries (approximately US$15
million as of June 30, 2006).

The B1 rating and LGD 3 assessment on Dresser's senior secured
credit facilities and the company's B2 Probability of Default
Rating reflect a pro forma capital structure that is comprised
almost entirely of first lien bank debt.  The credit facilities
are secured pari passu by perfected liens on Dresser's domestic
receivables, inventory, and fixed assets, as well as a pledge of
stock of domestic subsidiaries and a pledge of stock of 65% of
the stock of foreign subsidiaries.  The facilities are
guaranteed by Dresser Holdings, Inc. and by all of Dresser,
Inc.'s wholly-owned domestic subsidiaries.  

The ratings on the bank facilities are restrained by the amount
of non-debt liabilities at the foreign operating subsidiaries
(primarily comprised of accounts payables and unfunded pension
obligations), the ability for Dresser to incur additional debt
at these subsidiaries (up to the sum of US$75 million and 10% of
the backlog of all foreign subsidiaries), and by weak coverage
of secured debt by the tangible assets of the domestic
subsidiaries.  Foreign operating subsidiaries account for more
than half of Dresser's total tangible assets.

                       About Dresser, Inc.

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

                          *     *     *

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


DRESSER INC: S&P Rates US$935 Million Credit Facilities at B
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' senior
secured rating and its '3' recovery rating to energy and
oilfield equipment manufacturer Dresser Inc.'s US$935 million
credit facilities, which are composed of a new US$785 million
term loan B, a US$50 million synthetic LOC facility, and a
US$100 million revolving credit facility.  In addition, Standard
& Poor's revised its CreditWatch listing on Dresser to
developing implications from negative implications.

Dresser will use proceeds from the new term loan to refinance
existing bank debt and outstanding subordinated note issues.

The CreditWatch listing reflects the potential for ratings to be
raised, lowered, or affirmed in the near term. The ratings on
Dresser had been placed on CreditWatch with negative
implications due to delays in filing audited financial
statements.

"Pending completion of the announced refinancing and receipt of
audited financial statements from prior periods, we will conduct
a full review and resolve the CreditWatch listing on Dresser in
the near term," said Standard & Poor's credit analyst Jeffrey
Morrison.

Key considerations for whether the corporate credit rating will
be raised, affirmed at 'B', or lowered additionally, will
include:

    * Implications of the company's previous announcement that
      it is currently exploring strategic alternatives, which
      could include a potential sale of the company;

    * Dresser's ability to successfully resolve recent
      accounting issues that have resulted in delayed filings;

    * Financial policy with regard to growth capital and
      potential acquisitions;

    * A comprehensive review of Dresser's financial statements
      and its recent operating and financial performance; and

    * An assessment of the near- to intermediate-term outlook
      for Dresser's various business lines.

                       About Dresser, Inc.

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

                          *     *     *

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


HYUNDAI MOTOR: Joint Venture Sued Over Accent's Price Cut
---------------------------------------------------------
Hyundai Motor Co.'s joint venture with Beijing Automotive
Industry -- Beijing Hyundai -- is sued over alleged price
slashing of its Accent subcompact car, People's Daily Online
reports.

According to People's Daily, 100 owners of Accent cars filed a
lawsuit at the Beijing Shunyi District People's Court in China,
complaining that the Hyundai joint venture cheated them by
cutting the prices of the cars.

In the launch of Accent cars in March, Beijing Hyundai president
reportedly said in a Chinese Web site -- http://www.sohu.com.cn/
-- that Accent's prices would not change for at least 2-1/2
years.  However, in July, the joint venture cut the prices of
two of its most expensive Accent models by US$1,012, the daily
recounts.

A car owner told the daily that he wouldn't have bought the
Accent car without the promise.

Hyundai Beijing denied the allegations and said that the Web
site just misrepresented the company's president.

In the lawsuit, the car owners are seeking US$1,012 each in
compensation and legal fees as well as Beijing Hyundai's public
apology.

                      About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the   
United States since 1986, but it only started selling its heavy
trucks stateside in 1998.  Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles.  The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%.  The Company also manufactures machine
tools for factory automation and material- handling equipment.

The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.

Chairman Chung has been indicted early in May 2006 for fraud
charges.

Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.


NOVELIS INC: Expects Improved Financial Performance in 2007
-----------------------------------------------------------
Novelis Inc. would be providing guidance for 2006 and 2007 as
part of its strategic and financial update.

                            Highlights

   -- The company continues to generate solid cash flow.  
      Novelis expects total free cash flow for 2006 to be
      between US$150 million and US$200 million, and believes
      it will remain in that range for 2007 as the company
      improves its risk mitigation program.

   -- The company anticipates a return to positive earnings
      before taxes in 2007.  For the full year of 2006, Novelis
      expects to post a loss before taxes of between
      US$240 million and US$285 million.  For the full year of
      2007, the company anticipates earnings before taxes of
      between US$35 million and US$100 million.  This expected
      upswing is due primarily to the elimination of half of the
      company's can sheet price ceiling exposure, expected
      increases in rolled product shipments, and expected
      corporate cost reductions.

   -- The company estimates that shipments for 2006 will be
      between 3,140 and 3,170 kilotons.  In 2007, shipments are
      forecasted to grow by 3 to 4 percent compared to 2006.

   -- For 2006, Novelis estimates capital expenditures of
      between US$110 million and US$115 million.  For 2007, the
      company expects that its capital expenditure run rate will
      return to traditional investment levels of between
      US$165 million and US$175 million.

   -- Longer term, the company will target:
   
      * an annual growth rate of 7% to 10% for regional income
        less corporate costs;

      * annual returns on invested capital exceeding 12%;

      * annual free cash flow surpassing US$400 million; and

      * a debt-to-EBITDA ratio of between 2.5x and 3.0x.

Novelis said that all forward estimates assume an average price
for primary aluminum of US$2,500 per metric ton on the London
Metal Exchange.

"We believe that we are nearing the end of a difficult
transition period," William T. Monahan, chairman and interim
chief executive officer, said.  "The fundamentals of our
business remain strong, and we are pleased with our future
outlook as the result of the actions we have taken, and will
continue to take, to enhance shareholder value."

The company reiterated that it is on track to file its Form 10-Q
for the second quarter by Oct. 20, 2006, and to be current with
its filings once it files its third-quarter report during the
fourth quarter.

The company also noted that its previously reported commitments
for backstop financing facilities totaling US$2.855 billion from
Citigroup Global Markets Inc. have been extended to Oct. 31,
2006.  In the event that Novelis is not able to file its
quarterly report on Form 10-Q for the second quarter of 2006 by
the deadlines defined in the notice of default and in its Credit
Agreement waiver, the backstop financing facilities would
provide the funding necessary to retire the Senior Notes and, if
needed, replace the company's existing term loan and revolving
credit facility.

In addition, Novelis announced that it will be requesting an
amendment to its US$1.8 billion Credit Agreement to modify
certain financial covenants and other provisions contained in
the Agreement. Specifically, Novelis will request that the
lenders under the Credit Agreement temporarily relax the
interest coverage covenant, leverage ratio covenant, and fixed
charges covenant among other things.

                        About Novelis Inc.

Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets. The company has operations in
Malaysia and Korea.

                           *     *     *

Moody's Investors Service downgraded Novelis Inc.'s corporate
family rating to B1 from Ba3, the bank revolver rating to Ba3
from Ba2, the bank term loan rating to Ba3 from Ba2, and senior
unsecured notes to B2 from B1.  Moody's also downgraded Novelis
Corp.'s bank term loan rating to Ba3 from Ba2.


NOVELIS INC: 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 North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Novelis Inc.

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

Issuer: Novelis Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$500 Million
   Guaranteed
   Senior Secured
   Revolving Credit
   Facility               Ba3      Ba2     LGD2       24%

   US$312 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%

   US$1.4 Billion
   7.25% Guaranteed
   Senior Unsecured
   Notes                  B2       B3      LGD5       76%

Issuer: Novelis Corporation

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$543 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%

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 Atlanta, Georgia, Novelis, Inc. --
http://www.novelis.com/-- provides customers with a regional  
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.  The company has operations in
Malaysia and Korea.


SHINHAN BANK: Plans Aggressive Expansion in Southeast Asia
----------------------------------------------------------
Shinhan Bank is planning an aggressive expansion in Asia,
specifically in the Southeast region, the Financial Times
reports.

Shinhan Chief Executive Officer Shin Sang-hoon told the FT that
the Bank is eyeing Southeast Asia very closely and is even
thinking of acquiring overseas financial institutions or buying
stakes in foreign banks in addition to opening more branches.

The Bank intends to increase the number of its banks abroad from
17 to 30, Dow Jones Newswires says, citing the FT report.

According to the report, the Bank's plans are in line with its
pursuit for new areas of growth and in its bid to become of the
region's leading banks.

                      About Shinhan Bank

Headquartered in Taepyeong-no, Seoul, Shinhan Bank --
http://www.shinhan.com/-- was established in 1982 with capital  
from Korean residents in Japan.  It is Korea's fourth largest
bank by assets -- second largest after merging with Chohung Bank
-- holding a 9% share of deposits and 11% of loans.  The bank
has developed a strong franchise in the consumer as well as
small and medium-sized enterprise segments.  In September 2001,
it formed a holding company, Shinhan Financial Group, under
which it and five other affiliates became stable companies.
Since then, the Shinhan Financial Group has expanded its
organizational structure to include 11 subsidiaries and is now
Korea's second largest financial group.

The Troubled Company Reporter - Asia Pacific reported on
March 16, 2006, that Moody's Investors Service has raised
Shinhan Bank's Bank Financial Strength Rating to D+ from D.  The
revised rating carries a stable outlook.  The higher BFSR
reflects the bank's sustained financial fundamentals upon its
merger with affiliate Chohung Bank.

Despite Moody's initial concerns, Chohung Bank's credit-
worthiness under its parent, Shinhan Financial Group, has
improved substantially.  Therefore, the absorption of Chohung
Bank into Shinhan Bank will not dilute the financial health of
the combined bank as greatly anticipated at the time of the
acquisition.  Nonetheless, the financial fundamentals place
Shinhan Bank at the low end of the rating band.


WOORI BANK: To Expand United States Operations
----------------------------------------------
Woori Bank plans to expand its business operations in the United
States market, The Korea Herald reports, citing a statement made
by the Bank's officers.

As part of its expansion plans, the Bank's subsidiary, Woori
America Bank, will open three branches in early 2007 in areas
with a high concentration of Korean-Americans in Los Angeles,
California, the Korean daily reports.

Woori Bank is also thinking of putting its money in real estate
projects promoted by Korean contractors or even investing
directly in some Korean enterprises that show a solid market
performance in those Los Angeles areas, the newspaper adds.

According to the newspaper, Woori Bank Chief Executive Officer
Hwang Young-key disclosed the Bank's plan to invest
US$25 million in a construction project by Korean builder
Shinyoung Co. in the Korea Town area in Los Angeles.

                        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.


WOORI FINANCE: CEO Disciplined Over Large Bonus Payments
--------------------------------------------------------
The Korea Deposit Insurance Corp. took disciplinary action
against Woori Finance Holdings Co. Ltd.'s Chairman Hwang Young-
Key on October 18, 2006, The Korea Herald reports.

KDIC, which holds 78% in Woori Finance, also slapped a warning
on another Woori Bank executive and demanded that the Bank
reprimand four more, the newspaper added.  Woori Bank is one of
the subsidiaries of Woori Finance.

The Troubled Company Reporter - Asia Pacific reported on
October 17, 2006, of KDIC's plans to impose disciplinary
measures against Woori Finance's executives for paying high
bonuses to employees.  KDIC asserted that the large bonuses are
a serious violation of a memorandum of agreement it signed with
the holding company in August 2005.

Pursuant to the MOU, Woori Finance is required to get KDIC's
permission in, among others, adjusting employee's pay scale and
making major management decisions.  The parties signed the MOU
to save Woori from near collapse during the financial crisis in
1997-1998.

According to The Korean Herald, Woori officials strongly
protested KDIC's move arguing that the decision to pay huge
bonuses was made to boost employee morale.

Woori officials believe that KDIC's interference leaves no room
for the Bank to pursue its own management and business
strategies in the face of intensifying competition, the
newspaper says.

Citing industry sources, the Korean newspaper says that the
disciplinary action predicts ill for Mr. Hwang, who will need
the majority shareholder's support to extend his term as
chairman of Woori Finance and Woori Bank.  His term will end in
March 2007.

                 About Woori Finance Holdings

Woori Finance Holdings Co., Ltd. -- http://www.woorifg.com/--    
is a holding company of Woori Bank, Kwangju Bank, Kyongnam Bank,
and Woori Credit Card.  The Company manages and controls its
financial subsidiaries.  It engages in a range of businesses,
including commercial banking, credit cards, capital markets
activities, international banking, asset management, and
bancassurance.

Fitch Ratings gave Woori Finance Holdings a 'B/C' Individual
Rating effective on September 30, 2005.


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

ARMSTRONG WORLD: McDermott Will Wants Court to OK US$88,001 Fees
----------------------------------------------------------------
McDermott Will & Emery LLP asks Honorable Judith Fitzgerald,
U.S. Bankruptcy Judge for the District of Delaware, to award it
US$88,001 in administrative expenses, representing compensation
for professional services performed from Jan. 1, 2006, through
Aug. 31, 2006, for the board of directors of non-debtor
Armstrong Holdings, Inc., and reimbursement of expenses.

Armstrong World Industries, Inc., is an indirect, wholly-owned
subsidiary of Armstrong Holdings.  The Debtor, previously a
publicly traded company, underwent a corporate restructuring
effective May 1, 2000, at which time Armstrong Holdings was
created as a separate public holding company.

Pursuant to the May 2000 Restructuring, each share of the Debtor
was exchanged for one share of Armstrong Holdings, and each
member of the company's Board became a member of the Armstrong
Holdings Board.

Armstrong Holdings' ownership of the Debtor comprises
substantially all of its assets.  Armstrong Holdings owns stock
in no other corporation, has no other subsidiaries, conducts no
independent business operations, and has no material assets
other than its indirect ownership of the Debtor.

Ryan T. Schultz, Esq., at McDermott Will & Emery LLP, in
Chicago, Illinois, relates that Armstrong Holding's Board has
been represented by his firm since Nov. 11, 2000.  The Board
retained McDermott to provide advice on issues relating to:

   -- its ongoing status as a public company;

   -- Armstrong World Industries, Inc.;

   -- the Chapter 11 cases of the Debtor and its debtor-
      affiliates; and

   -- various other corporate and business matters, including
      potential and threatened litigation.  

Mr. Schultz says the Debtor pays for McDermott's fees and
expenses as part of its administrative expenses pursuant to
Sections 503(b)(3)(D) and (b)(4) of the Bankruptcy Code.   

The Court has approved McDermott's previous requests for payment
of fees and expenses on account of its representation of
Armstrong Holding's Board:

     Period                                 Fees & Expenses
     ------                                 ---------------
     Dec. 6, 2000, to June 30, 2005
     (First Fee Period)                        US$1,156,873

     July 1, 2005, to Dec. 31, 2005
     (Second Fee Period)                           91,335

McDermott's fee request for US$88,001 covers the third fee
period.

Mr. Schultz asserts that McDermott has endeavored to represent
Armstrong Holdings' Board in the most expeditious and economical
manner possible.  The firm's professional services or expenses
were rendered or expended solely on behalf of Armstrong
Holdings' Board and directly benefited the Debtors' bankruptcy
estates and their creditors.  Hence, McDermott should be
compensated for the time spent and expenses it has incurred
during the Third Fee Period.

The work performed by McDermott's attorneys and staff during the
Third Fee Period include:

   (a) advising the Board regarding:

       (1) its responsibilities as fiduciaries under applicable
           state and federal law;

       (2) corporate governance issues, including compliance
           with Sarbanes-Oxley, as well as the effect of related
           Chapter 11 filings;

       (3) various issues relating to the Debtors' directors and
           officers insurance policies, including coverage,
           policy form and endorsements;

       (4) the District Court's rejection of, and the Third
           Circuit's affirmation of, the Debtor's Plan of
           Reorganization; and

       (5) various dissolution matters;

   (b) reviewing certain correspondence to Armstrong Holding's
       Board, and reviewing and commenting on Armstrong
       Holdings' filings with the Securities and Exchange
       Commission;

   (c) working on Armstrong Holdings' claim and tax issues;

   (d) consulting with and advising the Board regarding and
       interpreting strategic developments in, the Chapter 11
       cases and negotiations regarding a Chapter 11 plan;

   (e) attending all board and most committee meetings,
       including conducting outside director executive sessions;

   (f) consulting with the Debtors' counsel, Weil, Gotshal &
       Manges LLP, regarding changes in certain elements of the
       Debtor's reorganization plan and related agreements; and

   (g) assisting Armstrong Holding's Board in addressing
       operational, financial, legal and strategic issues
       confronting Armstrong Holdings, the Debtors and Armstrong
       Holdings' Board.

Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating  
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world.

The company has Asia-Pacific locations in Malaysia, Australia,
China, Hong Kong, Indonesia, Japan, Philippines, Singapore,
South Korea, Taiwan, Thailand and Vietnam.  It also has
locations in Colombia, Costa Rica, Greece and Iceland, among
others.

The Company and its debtor-affiliates filed for chapter 11
protection on December 6, 2000 (Bankr. Del. Case No. 00-04469).
Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and
Russell C. Silberglied, Esq., at Richards, Layton & Finger,
P.A., represent the Debtors in their restructuring efforts.  The
Debtors tapped the Feinberg Group for analysis, evaluation, and
treatment of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured
Creditors. The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of
Asbestos Personal Injury Claimant hired Ashby & Geddes as
counsel.

When the Debtors filed for protection from their creditors, they
listed US$4,032,200,000 in total assets and US$3,296,900,000 in
liabilities.  The Bankruptcy Court confirmed AWI's plan on
Nov. 18, 2003.  The District Court Judge Robreno confirmed AWI's
Modified Plan on Aug. 14, 2006.  The Clerk entered the formal
written confirmation order on Aug. 18, 2006.  The company's
"Fourth Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.  (Armstrong
Bankruptcy News, Issue No. 102; Bankruptcy Creditors'
Service,Inc., http://bankrupt.com/newsstand/or 215/945-7000).

The Troubled Company Reporter - Asia Pacific reports that
Standard & Poor's Ratings Services assigned its 'BB' bank loan
rating to the proposed US$1.1 billion senior secured bank
facility of Armstrong World Industries Inc. (D/--/--), based on
preliminary terms and conditions.


BIMB HOLDINGS: To Seek Shareholders' OK for Proposals at AGM
------------------------------------------------------------
BIMB Holdings Berhad will seek its shareholders' approval at the
Company's forthcoming 9th Annual General Meeting for these
proposals:

   * Proposed Amendment to the Articles of Association

   -- the proposed amendment to the existing Article 51 (c) of
      the Company's Articles of Association will enable the
      members to exercise their voting rights pursuant to
      Section 148 (1) of the Companies Act, 1965, without having
      to fulfill the requirement of Article 51 (c).  The
      proposed amendment will have a provision which states
      Section 149 (1)(b) of the Companies Act, 1965 shall not be
      applicable.  The proposed amendment is conditional upon
      the approval of Bank Negara Malaysia and the Company's
      shareholders;

   * Proposed Renewal of Shareholders' Mandate For Recurrent
     Related Party Transactions

   -- During the Company's 8th Annual General Meeting convened
      on November 30, 2005, the shareholders had granted a
      mandate for the Company and its subsidiaries to enter into
      recurrent related party transactions.  Pursuant to
      Paragraph 10.09 of the Listing Requirements, the mandate
      will lapse at the forthcoming 9th Annual General Meeting.
      Shareholders' approval will be sought for a renewal of the
      Mandate.

                          About BIMB Holdings

Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad
-- http://www.bankislam.com.my/-- is an investment holding   
company, which operates along Islamic principles.  The Company
was incorporated in Malaysia on March 20, 1997, and was listed
on the Main Board of the Kuala Lumpur Stock Exchange on
September 16 in the same year.  Core subsidiaries of the Group
are involved in various Islamic financial service activities
including banking, stock-broking, leasing and other related
services.  

The firm has incurred substantial losses since 2000 due to huge
financing costs and high provisions for loss-making offshore
units.  For the quarter ended March 31, 2006, the Group incurred
a pre-tax loss of MYR67,494,000 on a revenue of MYR300,103,000,


COMSA FARMS: Fails to Submit Audited Accounts Ended March 2006
--------------------------------------------------------------
Comsa Farms Berhad has failed to submit its annual audited
accounts for the financial year ended March 31, 2006, to the
Bursa Malaysia Securities Berhad.

The Company's Annual Audited Accounts for the period ended
March 31, 2006, was due to be submitted on July 31, 2006.

Pursuant to Paragraph 9.26 (4) of the Listing Requirements of
Bursa Securities, if a listed issuer fails to issue the
outstanding financial statements within three months from the
expiry of the timeframes, the Bursa Securities will suspend
trading the securities of the listed issuer.

                       About Comsa Farms

Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in
the wholesale and retail of fresh and frozen chicken products,
meat and foodstuff.  Its other activities include livestock,
aqua feed milling, poultry feeding, hatchery operations, and
layer farming.

On April 10, 2006, the Company was declared a Practice Note 17
company by Bursa Malaysia due to a stockholders' equity deficit.
As an affected listed issuer, Comsa Farms is required to submit
a plan to regularize its financial condition. The Company's
balance sheet as of March 31, 2006, showed total assets of
MYR200,072,000 and total liabilities of MYR273,643,000 resulting
into a stockholders' deficit of MYR73,571,000.


CYGAL BERHAD: SC Extends Time for Implementation of Revamp Plan
---------------------------------------------------------------
The Securities Commission approved Cygal Berhad's application
seeking a final extension of the time within which the company
may implement its corporate restructuring exercise.  The SC
extends the restructuring deadline until December 31, 2006.

The debt restructuring includes:

  (i) Share Exchange;

(ii) Debt Restructuring, which comprises:

    * Financial Institutions Scheme;

    * Non Financial Institutions Scheme; and

    * Part Settlement of amount owed to Offshore Financial
      Institution;

(iii) additional issue to Commerce International Merchant
      Bankers Berhad;

(iv) Rights Issue of Shares together with Warrants;

  (v) acquisition of property development companies; and

(vi) delisting of Cygal and the listing of a new Investment
      Holding Company, Sycal Ventures Berhad (formerly known as
      Sycal Ventures Sdn Bhd, which was formerly known as Active
      Accord Sdn Bhd, in place of Cygal.

                      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


FALCONBRIDGE LTD: Xstrata Acquires Additional Shares
----------------------------------------------------
Xstrata plc acquired at midnight (Toronto time) on Oct. 5, 2006,
all of the common shares of Falconbridge Ltd. that were
outstanding at the close of business on Sept. 1, 2006, and that
Xstrata did not already beneficially own, pursuant to the
statutory compulsory acquisition procedures.  Xstrata now
beneficially owns approximately 99.9% of the issued and
outstanding Common Shares.

Each shareholder of Falconbridge whose Common Shares were deemed
to have been acquired under the First Compulsory Acquisition
will receive the equivalent of Xstrata's offer price of CAD62.50
in cash for each Common Share once the shareholder delivers the
certificate(s) representing those Common Shares, together with a
transmittal and election form, to CIBC Mellon Trust Company in
accordance with the instructions on the transmittal and election
form.  The aggregate cash consideration for the Common Shares
acquired under the First Compulsory Acquisition is approximately
CAD539 million (approximately US$478 million).

Furthermore, on Sept. 25, 2006, pursuant to the provisions of
section 189 of the Business Corporations Act (Ontario),
Falconbridge acquired and cancelled an aggregate of 1,850,577
Common Shares for an aggregate cash consideration of
approximately CAD116 million (approximately US$103 million).

Xstrata mailed on Oct. 2, 2006, a second notice of compulsory
acquisition in respect of all of the Common Shares that were
issued after the close of business on Sept. 1, 2006, on
conversion of the Falconbridge adjustable rate convertible
subordinated debentures.  All of the Debentures which were not
converted into Common Shares by the close of business on
Sept. 29, 2006, were redeemed on Oct. 2, 2006. Each shareholder
of Falconbridge whose Common Shares are deemed to be acquired
under the Second Compulsory Acquisition will also receive the
equivalent of Xstrata's offer price of CAD62.50 in cash for each
Common Share.  At the completion of the Second Compulsory
Acquisition, Xstrata will beneficially own 100% of the
outstanding Common Shares.

Falconbridge shareholders with questions or requests for copies
of the documents, may contact:

          CIBC Mellon Trust Company
          Tel: +1-416-643-5500
                1-800-387-0825

Further information is available at
http://www.xstrata.com/falconbridge/

                         About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the United Kingdom and
Canada.  Xstrata holds a 97% stake in Falconbridge.

                      About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a   
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries, including Malaysia.  The company owns
nickel mines in Canada and the Dominican Republic and operates a
refinery and sulfuric acid plant in Norway.  It is also a major
producer of copper (38% of sales) through its Kidd mine in
Canada and its stake in Chile's Collahuasi mine and Lomas Bayas
mine.  Its other products include cobalt, platinum group metals,
and zinc.

                          *     *     *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.


JIN LIN: Unveils Scheme of Arrangement with Shareholders
--------------------------------------------------------
Jin Lin Wood Industries Berhad, on October 18, 2006, unveiled
its scheme of arrangement with shareholders.

Jin Lin's scheme of arrangement with shareholders entails the:

  (i) reduction of Jin Lin's existing issued and paid-up share
      capital of MYR44,000,000 comprising 44,000,000 ordinary
      shares of MYR1.00 each in Jin Lin to MYR8,800,000
      comprising 44,000,000 ordinary shares of MYR0.20 each;

(ii) consolidation of 44,000,000 ordinary shares of RM0.20 each
      in Jin Lin into 8,800,000 Jin Lin Shares upon completion
      of the reduction;

(iii) cancellation of the entire issued and paid-up share
      capital of Jin Lin of MYR8,800,000 comprising 8,800,000
      Jin Lin shares upon completion of the consolidation;

(iv) in consideration for the cancellation, Gefung Holdings
      Berhad shall allot and issue 8,800,000 new ordinary shares
      of MYR1.00 each at par to the shareholders of Jin Lin,
      credited as fully paid-up on the basis of one new Gefung
      Share for every one Jin Lin Share held after the
      consolidation; and

  (v) forthwith and contingent upon the cancellation, Jin Lin
      shall apply MYR8,800,000 out of the credit reserve arising
      in paying in full at par, 8,800,000 Jin Lin shares which
      shall be allotted and issued, credited as fully paid-up to
      Gefung.

The share transfer book and the register of members will be
closed on November 14, 2006.

The Registrar can be reached at:

         Symphony Share Registrars Sdn Bhd
         Level 26, Menara Multi-Purpose
         Capital Square, No. 8
         Jalan Munshi Abdullah
         50100 Kuala Lumpur
         Telephone: 03-27212222
         Facsimile: 03-27212530

                          About Jin Lin

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

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


MANGIUM INDUSTRIES: Unit Defaults on MYR15,878,520 as of Sept.
--------------------------------------------------------------
As of September 30, 2006, the total payment default of Mangium
Industries Bhd's wholly owned subsidiary, Mangium Sawmill Sdn
Bhd, stands at MYR15,878,520.17.  

Mangium Sawmill owes MYR12,798,522.65 to Standard Bank Malaysia
Berhad and MYR3,079,997.52 is owed to Southern Bank Berhad.  The
loans are unsecured.

The Troubled Company Reporter - Asia Pacific reported that as of
August 31, 2006, Mangium Sawmill's default totaled
MYR15,760,249.

The TCR-AP stated that Mangium attributes the insufficient cash
flow from operations as cause of the company's inability to pay
interest and principal obligations when they fell due.

                 About Mangium Industries Berhad

Headquartered in Kuala Lumpur, Malaysia, Mangium Industries
Berhad -- formerly known as Serisar Industries Berhad --
manufactures and trades timber and timber related products.  The
Company   also provides printing services, publisher, printer
consultants and advertisers, trading of alcoholic beverages,
general trading of office furniture and investment holding.  Due
to the unfavorable timber market and depressed prices for timber
and timber related products throughout Asia since the financial
crisis in the year 1997, many of the MIB Group's buyers were
adversely affected and are facing financial difficulties leading
to their inability to settle their outstanding balances.  As a
result, the cash flow generated from operations was not
sufficient to service the interest and principal obligations to
the lenders as and when they fell due.

As of March 31, 2006, the Company registered accumulated losses
of MYR16.29 million, as against accumulated losses of
MYR19.25 million as of March 31, 2005.  For the quarter ended
March 31, 2006, the Company has a cash flow deficit of
MYR25.9 million.


MERCES HOLDINGS: Unit Served with Wind-Up Petition
--------------------------------------------------
On October 18, 2006, Bentahara Sdn Bhd has filed a wind-up
petition against Merces Builders (S) Sdn Bhd, a wholly owned
subsidiary of Merces Holdings Berhad.

Bentahara claims that Merces Builders owes it MYR126,288.56,
together with interest at the rate of 2% per month from Jan. 6,
2001, to May 5, 2006, pursuant to Section 218, Companies Act,
1965.  The debt is in accordance with the judgment obtained by
Bentahara at the High Court Kota Kinabalu, Sabah vide suite No.
52-541 of 2001 on April 6, 2006.  The total amount of claims
added up to MYR275,742.

Accordingly, the High Court of Kota Kinabalu will hear the wind-
up petition on November 23, 2006.

                     About Merces Holdings

Merces Holdings Berhad's principal activities are the provision
of property development and building construction works.  The
Company's other activity include investment holding.  Operations
of the Group are predominantly carried out in Malaysia.

Merces Holdings has defaulted on several loan facilities and had
faced winding-up petitions due to unsettled financial
obligations.


METROPLEX BERHAD: Unit Struck Off From Register of Companies
------------------------------------------------------------
The Companies Commission of Malaysia has informed Metroplex
Berhad on October 19, 2006, that Jumantan Quarries (Sabah) Sdn
Bhd, a dormant 90% owned subsidiary of Jumantan Sdn Bhd, which
in turn is a wholly-owned subsidiary of Metroplex, has been
struck off the Register of Companies pursuant to subsection
308(4) of the Companies Act, 1965.

Jumantan Quarries had been dormant since its incorporation on
August 20, 1996.  The striking off of Jumantan Quarries will not
have any material effect on the earnings of Metroplex for the
financial year ending January 31, 2007.

                   About Metroplex Berhad

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong, and the Philippines.

On April 28, 2005, Morgan Stanley Emerging Markets Inc. had
filed a wind-up petition against the Company with the Kuala
Lumpur High Court.  In the event the wind-up petition succeeds,
the Company will be put into liquidation.

Metroplex Berhad's April 30, 2006 balance sheet revealed total
liabilities of MYR1,417,778,000 exceeding total assets of
MYR1,214,518,000, resulting into a shareholders' deficit of
MYR203,260,000.

As of August 31, 2006, Metroplex's payment default reached
MYR1,790,952,181.

As of July 2006, the company's balance sheet showed
MYR1.21 billion in total assets and MYR1.44 billion in total
liabilities, resulting in a total shareholders' deficit of
MYR223.77 million.


PERDUREN (M) BERHAD: Exits Practice Note 17 Category
----------------------------------------------------
Perduren (M) Berhad, formerly known as Formis Malaysia Berhad,
no longer triggers the criteria under Paragraph 2.0 of Practice
Note 17 of Bursa Malaysia Securities Berhad, following the
Company's Restructuring Scheme.

Perduren was admitted into Bourse Practice Note 17 category on
March 10, 2006, due to a deficit in its adjusted shareholders'
equity and the impending cessation of its major business.

                       About Perduren (Malaysia)

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

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


SETEGAP BERHAD: Court Extends Restraining Order Until January 21
----------------------------------------------------------------
The High Court of Kuala Lumpur has extended the Restraining
Order pertaining to Setegap Berhad until January 21, 2007.

The Restraining Order allows Setegap to implement its debt
restructuring plan.

The Plan consists of a proposed:

   -- debt settlement of all outstanding debt owed by the
      Company to its secured lenders and trade creditors for a
      total of MYR87.6 million;

   -- exchange of Setegap shareholders' ordinary shares of
      MYR1.00 each with Newco, or new company, shares on the
      basis of one Newco share for every five existing Setegap
      shares;

   -- transfer of listing status to Newco; and

   -- disposal by the Newco of the entire issued and paid-up
      capital of Setegap for a nominal consideration of MYR1.00.

Moreover, the proposed plan were added with three new
conditions, which are:

   -- to give access the independent Director, Mr. Lai Yoke
      Heong @ Lai Yoke Hoong to all the Company's applicants'
      accounts;

   -- make Director Heong a co-signatory of all the
      applicants' bank accounts; and

   -- to pay promptly the Director's fees and out-of-pocket
      expenses by the applicants.

                     About Setegap Berhad

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

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


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

ABIL PROPERTY: Commences Liquidation Proceedings
------------------------------------------------
On September 22, 2006, shareholders of Abil Property Ventnor Ltd
resolved to liquidate Company's business and appointed Paul
Ferguson Macnicol as liquidator.

The Liquidator can be reached at:

         Paul F. Macnicol
         P.O. Box 44, Warkworth
         New Zealand
         Telephone:(09) 425 7719
         Facsimile:(09) 425 7736


ALLEN WALKER: Creditors to Prove Claims on October 30
-----------------------------------------------------
Karen Betty Mason and Lloyd James Hayward were appointed as
joint and several liquidators of Allen Walker Developments Ltd
on September 28, 2006.

According to the Troubled Company Reporter - Asia Pacific, Brian
Anthony filed a petition to liquidate Allen Walker on June 26,
2006.

The Joint Liquidators require Allen Walker's creditors to prove
their claims by October 30, 2006, or be excluded from the
benefit of any distribution the company will make.

The Joint Liquidators can be reached at:

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


AUTOWORKS SERVICE: Faces Liquidation Proceedings
------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Autoworks Service & Performance Centre Ltd on November
9, 2006, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on September 1, 2006.

The Solicitors for the Petitioner can be reached at:

         E. M. Duncan-Sittlington
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone:(07) 959 0471


CHALET ARTHURS: Court Sets Date to Hear Liquidation Petition
------------------------------------------------------------
The High Court of Greymouth will hear a petition to liquidate
The Chalet Arthurs Pass Ltd on November 1, 2006, at 10:00 a.m.

The Commissioner of Inland Revenue filed the liquidation
petition on August 28, 2006.

The Solicitors for the Petitioner can be reached at:

         S. N. Mckenzie
         Preston Russell Law
         92 Spey Street (P.O. Box 355)
         Invercargill
         New Zealand
         Telephone:(03) 211 0080
         Facsimile:(03) 211 0079


E-COM SOLUTIONS: Appoints Joint and Several Liquidators
-------------------------------------------------------
Liquidator John Michael Gilbert was on September 30, 2006,
appointed to oversee the liquidation of E-Com Solutions Ltd.

Accordingly, Mr. Gilbert requires E-Com Solutions' creditors to
submit their proofs of claim by October 28, 2006.

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

The Liquidator can be reached at:

         J. M. Gilbert  
         c/o C & C Strategic Limited
         Private Bag 47-927, Ponsonby
         Auckland, New Zealand
         Telephone:(09) 376 7506
         Facsimile:(09) 376 6441


OTAHUHU PROPERTIES: Inability to Pay Debts Prompts Liquidation
--------------------------------------------------------------
Shareholders of Otahuhu Properties Ltd on October 2, 2006,
resolved to liquidate its business due to its inability to pay
debts.

Consequently, Richard Matthew Durney was appointed as
liquidator.


PROJECT TRANZACTIONS: Court to Hear Liquidation Petition
--------------------------------------------------------
On September 5, 2006, the Commissioner of Inland Revenue filed
before the High Court of Christchurch a liquidation petition
against Project Tranzactions Ltd.

The Court will hear the petition on October 30, 2006, at 10:00
a.m.

The Solicitors for the Petitioner can be reached at:

         Julia Dykemantre
         Ground Floor Reception
         518 Colombo Street (P.O. Box 1782)
         Christchurch 8140
         New Zealand
         Telephone:(03) 968 0809
         Facsimile:(03) 977 9853


QUALITY RESURFACING: Court Hears CIR's Liquidation Petition
-----------------------------------------------------------
The High Court of Wellington heard a liquidation petition
against Quality Resurfacing Solutions Ltd on October 16, 2006.

A petition was filed by the Commissioner of Inland Revenue on
September 6, 2006.

The Solicitors for the Petitioner can be reached at:

         Julia Marie Snelson
         Technical and Legal Support Group
         Wellington Service Centre
         First Floor, New Zealand Post House
         7-27 Waterloo Quay (P.O. Box 1462)
         Wellington
         New Zealand
         Telephone:(04) 890 1127
         Facsimile:(04) 890 0009


SALES FACTORY: Names Craig as Liquidator
----------------------------------------
Grahame David Craig was on September 27, 2006, appointed
liquidator of The Sales Factory Ltd.

Hence, the liquidation of the company's business commenced that
same day.

The Liquidator can be reached at:

         Grahame David Craig
         728 River Road (P.O. Box 830)
         Hamilton
         New Zealand
         Telephone:(07) 856 6060
         Facsimile:(07) 856 0364
         Email: bizdiag@xtra.co.nz


TSSL LTD: Court Hears Liquidation Petition
------------------------------------------
The Commissioner of Inland Revenue on September 6, 2006, filed
before the High Court of Wellington a liquidation petition
against TSSL Ltd.

The Court heard the petition on October 16, 2006.

The Solicitors for the Petitioner can be reached at:

         Julia Marie Snelson
         Technical and Legal Support Group
         Wellington Service Centre
         First Floor, New Zealand Post House
         7-27 Waterloo Quay (P.O. Box 1462)
         Wellington
         New Zealand
         Telephone:(04) 890 1127
         Facsimile:(04) 890 0009


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

SAN MIGUEL CORP: San Miguel Enters Thai Fruit Juice Market
----------------------------------------------------------
San Miguel Corporation has expanded into the Thai fruit juice
drinks market now that its THB1.4-billion factory in Rayong,
Thailand, is operational, The Bangkok Post says.  The company
will introduce new fruit juice products made in Rayong by 2007.

According to the report, San Miguel's move is part of the
company's strategy to expand operations in South China,
Thailand, Indonesia and Vietnam.

San Miguel started to build its Rayong factory on a 95-rai plot
two years ago and started making fruit juice a few months ago,
The Post cites Jose Daniel Javier, vice-president and general
director for San Miguel's non-alcoholic international business,
as saying.

San Miguel told The Post that it started to market "Berri," a
fruit juice brand that it took over from National Food in
Australia, last week.  Mr. Javier said that the company plans to
use Berri as a regional food brand in four countries: China,
Thailand, Vietnam and Indonesia.

After Berri, The Post notes, San Miguel intends to introduce Sun
Blest, a 40% fruit juice product made in the Rayong factory.  
San Miguel wants about 5% of Thailand's total fruit juice market
in its first year of operations, with sales estimated at
THB4 billion.

Mr. Javier said that San Miguel would use about 30% of its sales
to promote Berri beverages in the first year of operation.  It
aims to become one of the top five premium fruit juice brands in
Thailand within five years, The Post says.

Apart from fruit juice, the company also plans to expand into
carbonated drinks, sports drinks, dairy products and drinking
water in Thailand in the near future.

                     About San Miguel Corp.

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

A Troubled Company Reporter - Asia Pacific report on Oct. 12,
2006, stated that Moody's Investors Service affirmed its Ba1
corporate family rating.

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.


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

AMARANTH ADVISORS: Cuts 350 Jobs as Onset of Closing Down
---------------------------------------------------------
Amaranth Advisors started terminating about 350 of its employees
as the Company will shut down its business operations for good
this March 2007, according to the Chicago Tribune.

In a letter written and sent to a Connecticut Department of
Labor unit that monitors business closures, Nicholas Maounis,
founder of Amaranth, stated that the Company's failure to sell
part or all of its business to an outside investor made layoffs
unavoidable.

Moreover, the Chicago Tribune recounts that the Connecticut
Officials are looking for potential employers who can hire
Amaranth employees and keep them in the state.  Steve Bruce,
Amaranth spokesman, has disclosed that at least 1,000 jobs may
fit for the Company's employees in the rival hedge funds and
financial firms.

The Troubled Company Reporter - Asia Pacific reported on
Oct. 3, 2006, that the Amaranth is set to close down its
operations.  Mr. Maounis has sent a letter to investors stating
that the fund was suspending all redemptions for Sept. 30 and
Oct. 31, to enable the Amaranth funds to generate liquidity for
investors in an orderly fashion.

The letter also disclosed that Amaranth has lost US$6.4 billion
and assets were down 65% to 70% for the month and 55% to 60% for
the year, the TCR-AP stated.

                          *     *     *

Amaranth Advisors is based in Greenwich, Connecticut with
offices in Toronto, Canada, London, England and George Street,
Singapore is an investment management firm.  Amaranth
specializes in a broad spectrum of alternative investments and
trading strategies, through a multi-strategy investment fund and
fund dedicated to long-short equities.  

The Troubled Company Reporter  - Asia Pacific reported on
September 25, 2006, that the company has made significant losses
in its energy-related investments after a dramatic move in
natural gas prices.

Moreover, Amaranth faces multiple regulatory probes and possible
lawsuits after disclosing in September that it had lost 35%, or
approximately US$6 billion, of the value of its natural gas bets
due to a dramatic move in gas prices.  Amaranth transferred its
energy portfolio to Citadel Investment Group and J.P. Morgan
Chase & Co. following the loss announcement.


CLASSE CO: Proofs of Debt Due on November 20
--------------------------------------------
Classe Co. Pte Ltd, which is in liquidation, requires its
creditors to submit their proofs of debt by November 20, 2006,
to be included in the Company's distribution of dividend.

The Company's liquidator can be reached at:

         Lee Kay Beng
         7500A Beach Road #16-321
         The Plaza
         Singapore 199591


FREESCALE SEMICONDUCTOR: Expands Joint Efforts with dSPACE
----------------------------------------------------------
dSPACE, Inc., is expanding collaborative efforts with Freescale
Semiconductor, Inc., to maximize production gains and shorten
product development cycles for their shared customer base --
primarily automotive OEMs and tier-one suppliers.

dSPACE and Freescale are working together to streamline the
performance and functionality of several key products to
optimize compatibility and ease of use.

"dSPACE and Freescale have a long-standing relationship and are
committed to working together to support the best interests of
our shared customer base," said Santhosh Jogi, Engineering
Manager for dSPACE, Inc. "Together, we are leveraging the best
possible performance for our customers."

One of the most beneficial outcomes of the collaborative effort
between these companies is the integration of dSPACE's automatic
code generator -- TargetLink with Freescale's newest family of
MPC5500 automotive microcontrollers or MCU built on Power
Architecture technology.

Built on the TargetLink base suite, optional modules are
available to run simulations on specific microcontroller targets
and to generate code optimized for those microcontrollers.  
Today, dSPACE provides a simulation module for the MPC5500
family and through cooperative engineering with Freescale,
dSPACE will release a Target Optimization Module or TOM for this
popular MCU family.  With this TOM, TargetLink can be
specifically configured to interface with MPC5500 processors,
resulting in the output of highly customized, efficient code
generation.  Both products support high-end applications
requiring complex, real-time control (e.g. multipoint fuel
injection control, electronically-controlled transmissions,
avionics, robotics, motion control, etc.).

"TargetLink, by itself, delivers quality, efficient autocoding,"
said Mr. Jogi.  "When implemented with the TOM, TargetLink has
the added capability of leveraging the power of MPC5500 hardware
to achieve true, optimal performance."

"Since dSPACE tools work with our automotive MCUs, it is in our
best interest to make sure that dSPACE's TOM is highly optimized
for our silicon," added Momin Salim, Director of Freescale
Semiconductor's Virtual Garage Lab.  "Together, we are enabling
our customers to achieve optimal performance from our MCUs."

The TOM will be available in the new 2.2 version of TargetLink,
scheduled for release before the end of 2006.

Another outcome of this joint working relationship is a product\
alignment between dSPACE's TargetLink and Freescale's RAppID
ToolBox.

Freescale has designed its RAppID ToolBox, an add-on library of
peripheral blocksets and optimized code blocks, to work in
concurrence with TargetLink, MATLAB and Simulink.  Together,
these tools enable control engineers to quickly execute and
evaluate control models on MPC5554 MCU hardware platforms.  The
necessary software -- including initialization code, I/O drivers
and a scheduler or operating system -- is automatically
generated.

"By making sure that the RAppID ToolBox works seamlessly with
TargetLink, we are enabling customers to move from the modeling
phase to on-target rapid prototyping on our MCU platforms," Mr.
Salim said.

A third example of the close relationship between dSPACE and
Freescale is the incorporation of the MPC5554 microcontroller as
a core component of dSPACE's RapidPro Control Unit.  This
product creates a powerful environment for engineers to develop
and test new concepts for control functions on a production-
oriented microcontroller, and do so in a model-based approach,
with the inclusion of an integration package for TargetLink.

                       About dSPACE

Headquartered in Paderborn, Germany, dSPACE is a producer of
engineering tools for the design, control and calibration of
electronic and mechatronic systems.  dSPACE offers a complete
tool chain of products to enhance development, testing and
validation of real-time embedded controllers.  dSPACE tools
support model-based control design, rapid control prototyping,
automatic code generation, hardware-in-the- loop simulation and
calibration.

                       About Freescale

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and  
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.  
Freescale became a publicly traded company in July 2004.  The
company has design, research and development, manufacturing or
sales operations in more than 30 countries, including Singapore,
Australia, China, Hong Kong, India, Japan, Korea, Malaysia and
Taiwan.

The company's 7-1/8% Senior Notes due 2014 carry Moody's
Investors Service's Ba1 rating.

Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default
Rating, senior unsecured notes, and senior unsecured bank credit
facility to 'BB+' from 'BBB-' following the company's
confirmation that it has entered into a definitive agreement to
be purchased by a consortium of private equity firms for US$17.6
billion, the largest ever technology leveraged buy-out.


FREESCALE: Updates Progress on STMicroelectronics Joint Program
---------------------------------------------------------------
Freescale Semiconductor and STMicroelectronics have achieved
critical milestones in the advancement of their joint design
program aimed at accelerating innovation in the automotive
industry.  Since announcing their initiative seven months ago,
the two companies have staffed joint design facilities, designed
a next-generation micro controller core, defined product
roadmaps, and aligned process technologies.

"Building on our long-term relationship, STMicroelectronics' and
Freescale's engineering teams have rolled up their sleeves and
jumped into all facets of the joint design program," said Ugo
Carena, corporate vice president and general manager of the
Automotive Products Group of STMicroelectronics.  "We've
established a hierarchy, staffed several design sites, set up
global logistics, and designed a micro controller core that will
be a basic building block for many future designs.  This has
been an unprecedented effort and demonstrates the tremendous
value both companies will realize from the joint development
initiative."

The two companies have opened joint design centers to provide
broad access to global design talent in silicon, software, and
automotive applications.  The two companies anticipate reaching
a headcount of 120 engineers by the end of the year.

As part of their far-reaching collaboration, Freescale and ST
have standardized on Power Architecture technology as the
instruction set architecture for jointly developed micro
controller or MCU products.  The two companies also are focusing
product development efforts on a wide range of automotive
applications, including powertrain, chassis, motor control, and
body systems.

One of the most noteworthy achievements of the collaboration to
date is the joint definition and development of a power-
efficient, 32-bit micro controller core based on the Power
Architecture e200 core.  This newly developed Z0H derivative
core serves as the CPU of the companies' initial cost-optimized
MCUs designed for value-priced body control applications.  
Initial samples of these jointly designed products are planned
for the second half of 2007.  One indication of the
cooperation's success is ST's decision to migrate its future
automotive MCU designs to these and other derivative cores.

"The speed at which we defined and agreed upon a next-generation
core built on Power Architecture technology underscores the
strength and momentum of our collaboration," said Paul Grimme,
senior vice president and general manager of Freescale's
Transportation and Standard Products Group.  "Our commitment to
develop an optimized core and implement it in an application-
specific MCU sets a high bar for innovation.  As we move from
design to production, customers will benefit from the dual-
source availability of our jointly designed automotive MCUs."

Freescale and ST plan to manufacture jointly designed MCU
products on mutually aligned 90-nm process technology.  The
companies have achieved the milestone of aligning a process test
vehicle at Freescale and ST wafer fabs. In addition, joint
development of non-volatile memory (NVM) technology is underway.  
Forthcoming MCU products are expected to be designed to
integrate cost- and performance-optimized flash modules for
specific automotive applications.  The companies expect future
design and development activities will extend into additional
applications, such as safety systems, driver assistance, and
driver information.

                  About STMicroelectronics

STMicroelectronics is a global leader in developing and
delivering semiconductor solutions across the spectrum of
microelectronics applications.  An unrivalled combination of
silicon and system expertise, manufacturing strength,
Intellectual Property portfolio and strategic partners positions
the Company at the forefront of System-on-Chip technology and
its products play a key role in enabling today's convergence
markets. The Company's shares are traded on the New York Stock
Exchange, on Euronext Paris and on the Milan Stock Exchange.  In
2005, the Company's net revenues were US$8.88 billion and net
earnings were US$266 million. Further information on ST can be
found at

                       About Freescale

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and  
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.  
Freescale became a publicly traded company in July 2004.  The
company has design, research and development, manufacturing or
sales operations in more than 30 countries, including Singapore,
Australia, China, Hong Kong, India, Japan, Korea, Malaysia and
Taiwan.

The Company's 7-1/8% Senior Notes due 2014 carry Moody's
Investors Service's Ba1 rating.

Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default
Rating, senior unsecured notes, and senior unsecured bank credit
facility to 'BB+' from 'BBB-' following the company's
confirmation that it has entered into a definitive agreement to
be purchased by a consortium of private equity firms for US$17.6
billion, the largest ever technology leveraged buy-out.


GREENLODGE HOLDING: Creditors Must Prove Debts by Nov. 13
---------------------------------------------------------
Chee Yoh Chuang and Lim Lee Meng, as liquidators for Greenlodge
Holding Pte Ltd, asks creditors of the Company to submit their
proofs of debt by November 13, 2006.

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

The Liquidators can be reached at:

         Chee Yoh Chuang
         Lim Lee Meng
         18 Cross Street
         #08-01 Marsh & McLennan Centre
         Singapore 048423


HEXION SPECIALTY: Tenders Offer to Holders of US$625-Mil. Notes
---------------------------------------------------------------
Hexion Specialty Chemicals, Inc., is offering to purchase for
cash any and all of the outstanding:

     (i) US$150,000,000 principal amount at maturity of Second-
         Priority Senior Secured Floating Rate Notes due 2010,

    (ii) US$150,000,000 principal amount at maturity of Second-
         Priority Senior Secured Floating Rate Notes due 2010;
         and

   (iii) US$325,000,000 principal amount at maturity of 9%
         Second-Priority Senior Secured Notes due 2014

The Notes were issued by Hexion U.S. Finance Corp. and Hexion
Nova Scotia Finance, ULC on the terms and subject to the
conditions in the Offer to Purchase and Consent Solicitation
Statement dated Oct. 12, 2006 and the accompanying Letter of
Transmittal and Consent.  The Company is also soliciting
consents to eliminate most of the restrictive covenants and the
Liens in the indentures under which the Notes were issued.

The Company disclosed that it expects to enter into a new
US$2 billion term loan facility and a new US$50 million
synthetic letter of credit facility, which will replace its May
2006 term loan and synthetic letter of credit facilities.  The
Company will continue to have access to its current five-year
US$225 million revolving credit facility.  In addition the
Company expects to raise US$825 million of senior secured debt
in connection with its offer to purchase the Notes.  It intends
to use US$500 million of the additional cash available under its
new credit facilities and from the Secured Debt Financing to pay
a common stock dividend to its shareholders and the balance of
the proceeds to pay for the Notes repurchased in the Tender
Offers.  The Company has also filed an application with the
Securities and Exchange Commission for the withdrawal of its
registration statement on Form S-1, relating to its planned
initial public offering.

The total consideration for each US$1,000 principal amount of
the 2005 Floating Rate Notes tendered and accepted for purchase
pursuant to the tender offer will be US$1,023.  The total
consideration for each US$1,000 principal amount of the 2004
Floating Rate Notes will be US$1,022.50.

The total consideration for the 9% Notes tendered and accepted
for purchase will be determined based on a yield to the first
redemption date equal to the sum of the yield of the 3.625% U.S.
Treasury Security due July 15, 2009, as calculated by Credit
Suisse Securities LLC plus a fixed spread of 50 basis points.  
The Company will pay accrued and unpaid interest up to, but not
including, the applicable payment date.  Each holder who tenders
its Notes and delivers consents on or prior to Oct. 24, 2006
will be entitled to a consent payment of US$30 for each US$1,000
principal amount of Notes.  Noteholders who tender after the
Consent Date, but prior to the Expiration Date, will receive the
total consideration minus the consent payment.  Holders who
tender Notes are required to consent to the proposed amendments
to the indentures and the collateral agreements.

The tender offers will expire at midnight, New York City time,
on Nov. 8, 2006, and the consent solicitations will expire on
Oct. 24, 2006.

The tender offer is subject to the conditions set forth in the
Offer Documents including the receipt of consents of the
noteholders representing a majority in aggregate principal
amount of the Notes and of the Company obtaining the financing
necessary to pay for the Notes and consents.

Credit Suisse Securities (USA) LLC act as Dealer Manager of the
tender offers and consent solicitations.  Questions about the
tender offers and consent solicitations may be directed to
Credit Suisse Securities (USA) LLC at (800) 820-1653 (toll free)
or (212) 325-7596 (collect).  Copies of the Offer Documents and
other related documents may be obtained from D.F. King & Co.,
Inc., the information agent for the tender offers and consent
solicitations, at (800) 290-6426 (toll free) or (212) 269-5550
(collect).

                   About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or  
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
company has 86 manufacturing and distribution facilities in 18
countries.

The company has its Asian headquarters in Singapore, with
offices in Australia, China, Korea, Malaysia, New Zealand,
Taiwan, and Thailand.  

                          *     *     *

Standard & Poor's Ratings Services assigned its 'B+' rating and
its recovery rating of '3' to Hexion Specialty's US$1.675
billion senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


MSM HOLDINGS: Proofs of Debt Due on October 30
----------------------------------------------
The creditors of MSM Holdings Pte Ltd must submit their proofs
of debt by October 30, 2006, to the company's liquidators, Chen
Yeow Sin and Abuthahir Abdul Gafoor.

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

The Company's Joint and Several Liquidators can be reached at:

         Chen Yeow Sin
         Abuthahir Abdul Gafoor
         1 Raffles Place
         #20-02 OUB Centre
         Singapore 048616


ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005
------------------------------------------------------------
Odyssey Re Holdings Corp. has filed its Annual Report on Form
10-K/A for the year ended Dec. 31, 2005, with the United States
Securities and Exchange Commission, restating its consolidated
financial statements as of and for the years ended
Dec. 31, 2005, 2004 and 2003, along with affected Selected
Consolidated Financial Data for 2002 and 2001 and quarterly
financial information for 2005 and 2004.

The restatement corrects the accounting treatment for
investments containing embedded derivatives and certain equity
method investments.  The corrections relating to these
investments, which include the impact of changes in other
comprehensive income, resulted in a cumulative increase in
shareholders' equity of US$16.0 million, to US$1.64 billion, as
of Dec. 31, 2005.  The aggregate net effect of the restatement
for each period is to increase 2005 net loss by US$12.2 million,
increase 2004 net income by US$6.9 million, increase 2003 net
income by US$12.4 million, increase 2002 net income by US$11.2
million and increase 2001 net loss by US$3.4 million.  The
financial information contained in the Odyssey Re's Form 10-K/A
for the year ended Dec. 31, 2005, reflects the impact of this
restatement.  The effect of this restatement was reported in the
company's Quarterly Report on Form 10-Q for the second quarter
of 2006.

In connection with the restatement, management has determined
that Odyssey Re did not maintain effective controls, review
procedures and communications related to investment accounting
to ensure conformity with generally accepted accounting
principles, which constitutes a material weakness.  To address
the material weakness, management will implement a remediation
plan that will supplement the existing controls of the company.

Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an  
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance.  Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited.  The company underwrites through offices in the
Singapore, United States, London, Paris, Toronto and Mexico
City.  Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.

                          *     *     *

Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2
from Moody's and BB from Fitch.  The company's senior unsecured
debt and long-term issuer default ratings also carry BB+ from
Fitch.  Moody's placed its rating on Oct. 12, 2005, with a
stable outlook.  Fitch placed its ratings on March 23, 2006.


PETROBRAS INT'L: Fitch Rates US$500 Million Senior Notes at BB+
-------------------------------------------------------------
Fitch Ratings assigned a 'BB+' rating to Petrobras' US$500
million 6.125% Senior Notes due 2016 issued through its wholly
owned subsidiary, Petrobras International Finance Company.  
PIFCo is unconditionally guaranteed by Petrobras.  Proceeds are
to be used for debt refinancing and other general corporate
purposes.

The ratings of Petroleo Brasileiro S.A. are supported by
substantial proved hydrocarbon reserves and increasing upstream
output, recognized leadership in offshore exploration and
production, a favorable international product price environment,
successful corporate and industry restructuring during the past
decade, a transition to more transparent financial standards,
and dominant domestic market shares.  The company further
benefits from material international operations and its shift to
a net export position in 2005, which supports the generation of
foreign currency cash flow.  These factors are tempered by
vulnerability to fluctuations in international commodity prices,
exposure to local political interference, currency risk,
domestic market revenue concentration, and significant medium-
term capital-investment requirements linked to the company's
ambitious strategic plan.  The announced nationalization of
Petrobras' Bolivian energy investments, while negative, is not
expected to affect materially the company's credit quality or
ratings.  The combination of ultimate government control, which
underscores the ability to influence corporate strategy and
long-term policy decisions, and a significant domestic market
focus continues to affect the company's rating.

Earlier this year, Petrobras announced its 2007-2011 business
plan, which primarily reflects new projects to increase
production and refining both in Brazil and internationally, the
increase in costs of related services and equipment in the
productive chain, and a stronger local currency, all of which
increases capital spending when expressed in U.S. dollars.  
Under the new business plan, Petrobras estimates it will invest
US$87.1 billion through 2011, an increase of US$34.7 billion
(66%) for the comparable period under the previous plan.  
Approximately US$49 billion (56% of total), up from US$31
billion (59%), has been allocated to exploration and production
activities, representing a slight shift in allocation percentage
toward downstream activities.

Fitch views the planned increase in E&P investment, including
additional investment in natural gas E&P, to be positive for the
long-term credit quality of the company.  Management projects no
significant changes on the main corporate strategic targets or
pressures on the financial profile, as approximately 87% of
Petrobras' funding needs (investments and debt amortizations)
should continue to be met via internal cash flows, with the rest
to be financed with conventional financing mechanisms, project
structures, and special-purpose vehicles.

Fitch recognizes the positive credit effect of the market-
oriented measures implemented in the past five years as well as
improvements in corporate governance.  The opening to private
participation and deregulation, strong management commitment to
increased financial transparency, corporate reorganization and
modernization, and aggressive upstream production development,
coupled with value-chain strategies, should strengthen credit
fundamentals.  While there has been close coordination of
business plans with federal authorities, it does not appear to
have affected market-oriented efforts to improve operational
efficiencies, increase upstream production volumes, or adhere to
capital discipline guidelines.

Petrobras is a mixed-capital company, with the government owning
approximately 40% of Petrobras' total capital and 55.7% of its
voting capital.  The remainder of the shares are publicly
traded, and an estimated 40% is held by foreign investors.  
Despite Fitch's concerns generated by the significant imbalance
between local currency revenues and hard currency expenses and
liabilities, it is important to note that Petrobras' operations
are of vital economic importance to the nation, suggesting the
government has a prime incentive to ensure Petrobras' access to
hard currency for servicing foreign obligations.

Petrobras' financial profile remains strong, with solid credit-
protection measures continuing to benefit from increased
production and the global rise in hydrocarbon and product
prices.  The company reported total debt/LTM EBITDA of 0.4 times
and EBITDA/interest expense of 26.5x under U.S. GAAP through
June 2006.  Petrobras maintains strong liquidity in relation to
short-term debt obligations.  The company ended the second
quarter of 2006 with a total consolidated debt of US$19.682
billion, of which approximately 25% was classified as short
term.  The company's sizeable US$10.4 billion in cash and
equivalents resulted in total net debt of US$9.3 billion.  
Petrobras' management has indicated its preference to maintain a
substantial cash balance going forward, partially debt funded,
to minimize its exposure to international capital market
volatility.

The company's EBITDA continues to be favored by the increase in
the domestic production of oil and natural gas liquid, even
though it was offset by scheduled maintenance stoppages in
several production systems during the semester.  On
July 25, 2006, the company closed its tender for certain
outstanding bonds of its subsidiary PIFCo for liability
management purposes, which totaled US$866 million.

                         About Petrobras

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras --
http://www2.petrobras.com.br/ingles/index.asp-- was founded in  
1953.  The company explores, produces, refines, transports,
markets, distributes oil and natural gas and power to various
wholesale customers and retail
distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.


PETROLEO BRASILEIRO: Starting Operations on Two Oil Platforms
-------------------------------------------------------------
Petroleo Brasileiro S.A., aka Petrobras, will kick operations
off at two more offshore oil-producing platforms in the Campos
Basin by the end of the year:

   -- the FPSO Presidente JK (P-34), which will go online in
      November in the Jubarte field, southern Espirito Santo
      coast and will be capable of producing up to 60,000
      barrels of oil per day; and

   -- the FPSO Cidade do Rio de Janeiro, which will be installed
      by December at the Espadarte field, with capacity to
      produce up to 100,000 bpd.

Added to the P-50 Platform, capable of producing 180,000 bpd and
which marked the Brazilian oil self-sufficiency when it was
installed in April in the Albacora Leste field, in the Campos
Basin, and to the FPSO Capixaba, which can produce 100,000 bpd
and has been operating since May in the Golfinho field, in the
Espirito Santo Basin, the installation of these two new units
will add another 440,000 bpd to Petrobras' production capacity
in 2006.

The President JK (P-34) and Cidade do Rio de Janeiro platforms
are of the FPSO type, that is, they are floating oil production,
storage, and offloading systems.

The FPSO P-34's construction work was concluded on
Oct. 13, 2006, at the Vitoria Harbor.  After undergoing
operational tests, it will sail to the Jubarte field in the
Campos Basin, southern Espirito Santo coast.  Meanwhile, the
FPSO RJ was built in Singapore and is already on its way to
Brazil, to be installed in the Espadarte Field in the Campos
Basin, northern Rio de Janeiro coast.

The Jubarte and Espadarte production systems will introduce
several technological innovations.  Among the advancements is
the new submarine centrifuge oil pumping (S-BCSS) system,
installed on the seabed, near the producing well.  This system,
developed by Petrobras, will reduce operational costs and
facilitate both remote intervention in submarine equipment and
pump replacement, when necessary.  Furthermore, it will exempt
completion probe use, one of the most expensive devices to lease
in the international market.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras --
http://www2.petrobras.com.br/ingles/index.asp-- was founded in  
1953.  The company explores, produces, refines, transports,
markets, distributes oil and natural gas and power to various
wholesale customers and retail distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


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

GOVT. HOUSING BANK: Optimistic in Reaching Year's Loan Target
-------------------------------------------------------------
Thailand's Government Housing Bank is optimistic that its new
lending target of THBB115 billion will be met this year despite
a drop in new mortgage lending in the third quarter due to the
economic slowdown, The Nation reports.  

According to the bank's acting president, Chatchai Virameteekul,
GHB recently introduced new products, including home equity
loans and loans for furniture purchases to help them hit their
mark.

Mr. Chatchai relates that under the home equity loans,
homeowners can pledge their existing houses as collateral for
new loans.  The bank has also invited 300,000 of its customers
to borrow funds to buy furniture and ask for loans to renovate
their houses damaged by the recent floods.

In addition, the bank will lift the ceiling of home equity loans
to 80% from 50% of a home's estimated value.  The move,
according to the Bangkok Post was implemented to help the bank
reach its lending target of THB100 billion by the end of the
year.

Meanwhile, newly appointed Finance Minister MR Pridiyathorn
Devakula has indicated that the bank could ask the government
for fresh capitalization, Mr. Chatchai told The Post.

State-owned banks are currently under pressure from Mr.
Pridiyathorn to lower their Non Performing Loans.

                Results from Nine-Month Operations

The GHB announced on October 19, 2006, its nine-month
performance with a net profit of THB2.39 billion, down from
THB3.67 billion year-on-year.  Loans released from the bank in
the first nine month totaled 81.82 billion, The Post notes.  

According to the bank, at the end of September 2006, its non-
performing loans declined by 16.64% to THB30.92 billion.  NPLs
now account for 5.96% of the bank's total loans, down by 2.11%
from the same period last year.

Outstanding loans at the end of September totaled THB518.95
billion, rising by 12.93% from 2005, while non-performing assets
stood at THB11.66 billion, dropping from THB12.77 billion in the
same period last year.

GHB's total deposits amounted to THB444.69 billion, up 17.6%
compared to the same period last year.

The Government Housing Bank -- http://www.ghb.co.th/-- was  
established in 1953 as the Ministry of Finance's wholly owned
financial institution with the purpose of providing mortgage
loans to low-and medium-income persons.  In addition to
providing mortgage loans for the purchase of lands, houses,
construction, and renovation, the Bank also act as a real estate
developer.

GHB is the country's largest mortgage lender, with assets of
THB594 billion as of June 2006.  In the first half of the year,
the bank lent THB56.7 billion in new loans and posted a net
profit of THB1.63 billion.

The bank currently carries Moody's Bank financial strength
rating of E+, and foreign currency long-term/short-term deposit
ratings of Baa1/P-2.


KRUNG THAI: Two Directors Resign from Board
-------------------------------------------
Krung Thai Bank revealed on October 19, 2006, the resignations
of Somchai Wongsawat and Pol. Lt. Gen. Wichianchot Sukchotrat
from its board of directors, The Bangkok Post reports.

Mr. Somchai, former permanent secretary of the Labour Ministry
and a brother-in-law of deposed Prime Minister Thaksin
Shinawatra, resigned from the civil service last month following
the September 19, 2006 coup, The Post relates.  

Meanwhile, Pol. Lt. Gen. Wichianchot had been under pressure to
resign from the board after the Office of the Auditor-General
questioned whether he should remain on the board after the
Supreme Court handed him a suspended jail sentence in May last
year.

Pol. Lt. Gen. Wichianchot received a two-year suspended sentence
from the Supreme Court's political division related to his
actions when serving as a former commissioner of the National
Counter-Corruption Office.

The court found Pol. Lt. Gen. Wichianchot and eight other former
commissioners of the NCC Office guilty of malfeasance for
granting themselves special pay increases, The Post recounts.

On October 17, 2006, the TCR-AP reported that the bank board
recently forced Sathit Chuwatthanakun, a senior executive vice-
president, to accept a retirement package and leave the bank one
year before his term expired.  Somanat Chutima, another senior
executive vice-president, was also suspended from duty pending
an investigation.

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: Posts THB450-Million Net Loss in F/Y 2006
-------------------------------------------------------
Tanayong Pcl posted a THB450-million net loss on THB4.407
billion in total revenues for the fiscal year ended March 30,
2006, as compared with the THB2.601-billion net loss on
THB3.541 billion in revenues recorded for the year ended
March 30, 2005.

In addition, the company's consolidated balance sheet as of
March 30, 2006, reflected strained liquidity with
THB4.638 billion in current assets available to pay
THB35.432 billion in current liabilities coming due within the
next 12 months.

Tanayong's total consolidated assets as of March 30, 2006, was
THB6.926 billion, and its total liabilities was
THB35.458 billion, resulting to a shareholders' deficit of
THB28.531 billion.

After auditing the company's financial statement, Supachai
Phanyawattano of Ernst & Young Office Ltd expressed doubt on the
company's ability to continue its operations as a going concern.  

Mr. Supachai specifically pointed to the company's inability to
increase its share capital, pay debts and convert debts to
equity which were the significant conditions stipulated in the
business rehabilitation plan.

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.

Tanayong's total consolidated assets as of March 30, 2006, was
THB6.926 billion, and its total liabilities was
THB35.458 billion, resulting to a shareholders' deficit of
THB28.531 billion.


TRUE CORP: NTC Starts Probe into Advance Info's Call Promo
----------------------------------------------------------
On October 19, 2006, the National Telecommunications Commission
started its investigations into the alleged breach of anti-
monopoly and fair-competition regulations by Advanced Info
Service, The Nation reports.

As reported by the Troubled Company Reporter - Asia Pacific on
October 5, 2006, True Move -- wholly owned subsidiary of True
Corp -- along with Total Access petitioned the NTC to look into
the suspected price-dumping strategy by rival Advanced Info
Service.

Advanced Info Service is offering rates as low as THB1.00 per
call.

Both companies told NTC that the AIS marketing campaign are in
breach of competition rules and international market dominance
standards, the TCR-AP relates.

Based on NTC's anti-monopoly regulations, which went into effect
last month, unfair competition is defined as an operator with
more than 25% market share pricing calls below cost in order to
put a squeeze on its rivals.

Supachai Chearavanont, True Move's chief executive officer, told
The Nation that AIS is undercutting smaller players by swamping
their networks with a flood of calls through its rock-bottom
pricing promotions.

True Corporation Public Company Ltd's --
http://www.truecorp.co.th/--- principal activities are the  
provision of telecommunication services and various value-added-
services that includes: Digital Data Network Direct Inward
Dialing, Integrated Service Digital Network, Public Telephone,
Personal Communication Telephone Service, Multimedia and
Internet Service Provider.  Other activities include training
services, online games, rental services and investment holding.

Standard & Poor's Ratings Services, on July 27, 2006, affirmed
its BB long-term corporate credit rating on True Corp Public Co
Ltd.  The outlook is stable.  

True Corp also currently carries Moody's corporate family rating
at Ba3, with stable outlook.



                            *********

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, 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 ***