TCRAP_Public/061101.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

           Wednesday, November 1, 2006, Vol. 9, No. 217

                            Headlines

A U S T R A L I A

A.R. NEAL: Shareholders Pass Resolution to Wind Up Firm
ADRIATIC IMPORTS: Final Meeting Slated for November 10
ALL CAR: Liquidator M. F. Cooper to Present Final Wind-Up Report
ANROSS INVESTMENTS: To Declare Priority Dividend on November 6
APTA MEDIA: Members Agree to Liquidate Business

BURNS PHILP: Rank Group Offer's Final Closing Date Set on Nov. 9
CANBERRA NEUROLOGICAL: Members to Receive Wind-Up Report
COLMERO PTY: Members Resolve to Wind-Up Operations
CORPERS (NO 450): Liquidator to Give Wind-Up Report
ERDYNAST HOLDINGS: Members' Final Meeting Set for November 1

EVANS & TATE: To Hold AGM on November 27
F.I.T. MANAGEMENT: Members and Creditors Opt to Shut Down Firm
F.I.T. VICTORIAN: Faces Wind-Up Proceedings
FAMILY FOUR (99): To Declare First and Final Dividend
FAZZARI HOLDINGS: Creditors Decide to Close Business

FLOOR KING: Members & Creditors to Hold Final Meeting on Nov. 10
G J LETHBORG: Liquidator McKenzie to Present Wind-Up Report
GNM LOGISTICS: Prepares to Declare Dividend on November 15
GROMSTAR PTY: Placed Under Voluntary Wind-Up
GROOVEHEAD PRODUCTIONS: Liquidator to Present Wind-Up Report

G S L HOLDINGS: Members and Creditors to Convene on October 31
IMATEC SOLUTIONS: Schedules Final Meeting on November 10
JERRABOMBERRA GENERAL: Creditors to Prove Debts on November 15
NYLEX LIMITED: Files Prospectus to Raise AU$30 Million Capital
STRATHFIELD GROUP: Members to Hold AGM on November 29


C H I N A   &   H O N G  K O N G

AMITY TRADING: Appoints Joint Liquidators
COSMO WAY: Faces Wind-Up Proceedings
COUDERT BROTHERS: Gets Okay to Hire Dunn Koes as Special Counsel
DRAGON EMPIRE: Receive Court's Wind-Up Order
EXETER CAPITAL: Members' Final Meeting Slated for November 27

GENESIS ENGINEERING: Court Approves Wind-Up Petition
GOLDEN GENIUS: Receive Wind-Up Order from Court
GO-TECH FIRE: Court Sets Wind-Up Petition Hearing on November 22
HIGH TALENT: Court Issues Wind-Up Order
KELI CONSUMER: Creditors Must Prove Debts by November 27

LUEN KO: Members Resolve to Wind Up Operations
MAY QUEEN: Members to Receive Wind-Up Report
OVERSEAS CROWN: Liquidator Ngan Lin Chun Esther Steps Aside
ROUSSEL UCLAF: Creditors' Proofs of Claim Due on November 17
TCL MULTIMEDIA: Mulls Closure of European Operations

TOP POWER: Wind-Up Petition Hearing Set on December 6
VITEC ELECTRONICS: Joint Liquidators Step Aside
YORK ELECTRONIC: To Pay Preferential Dividend on November 17
YUEN KEE: Names Leung Chi Wing as Liquidator


I N D I A

AMERICAN AXLE: Incurs US$62.9MM Net Loss in Third Quarter 2006
BALLY TECH: Forms Strategic Alliance with Points International
BALLY TECH: Reports Initial Restated Results for 2003 to 2005
BRISTOW GROUP: Weak Profile Spurs S&P to Rate Pfd. Stock at B
CONEXANT SYSTEMS: Moody's Assigns Caa1 Corp. Family Rating

CONEXANT SYSTEMS: S&P Lifts Rating to B on Improved Liquidity
ITI LTD: MTNL Proposes Barter of Defaults with Supply Bills
PUNJAB NATIONAL: Reports Year-on-Year Growth of 3.9%
PUNJAB NATIONAL: CRISIL Assigns 'AAA' to Lower Tier II Bonds


I N D O N E S I A

AFC ENTERPRISES: Moody's Assigns Loss-Given-Default Rating
ALCATEL SA: Earns EUR155 Million for Third Quarter 2006
BEARINGPOINT INC: Reports Results of Consent Solicitation
GNC CORP: Reports US$367.7MM Revenues for Quarter Ended Sept. 30
GOODYEAR TIRE: Moody's Assigns Loss-Given-Default Ratings

INCO LIMITED: Moody's Confirms Ba1 Subordinate Bond Rating
INCO LTD: Inco Indonesia Shares Rise on Takeover News
PERUSAHAAN GAS: 2006 Third Quarter Net Profit Jumps 266%
* Despite Reforms, Insolvency Regime Stays Weak, Fitch Says
* Indonesia Set to Offer Billions in Infrastructure Projects


J A P A N

ALBERTO-CULVER: Fourth Quarter 2006 Sales Reach US$974.3 Million
ALIMENTATION: Moody's Assigns Loss-Given-Default Ratings
FORD MOTOR: DBRS Comments on 3Q Results & May Cut Ratings
FORD MOTOR: To Rely on Cheaper Chinese-Made Parts to Cut Costs
SOFTBANK CORP: FTC Examines "Misleading" Sales Campaigns

TOKYO STEEL: Moody's Upgrades Issuer Rating to Baa3 from Ba1


K O R E A

DAEWOO ELECTRONICS: RHJ Confirms Joint Buy with Videocon
KOOKMIN BANK: Third Quarter 2006 Net Profit Drops 28%
NOVELIS INC: Declares Quarterly Dividend of US$0.01 Per Share
PUSAN BANK: Third Quarter Net Income Down 7.5% to KRW50.5 Bil.
* Korean Govt. Recovers KRW80 Trilion from Restructuring


N E W   Z E A L A N D

BARCO MANAGEMENT: Liquidation Petition Hearing Set on Nov. 13
COTTLE & RIMMER: Creditors' Proofs of Claim Due on November 20
FLEXIBLE CEILINGS: Faces Liquidation Proceedings
FULL HOUSE: Liquidation Hearing Slated for November 9
GEOFF ELLIS: Creditors Must Prove Debts by November 13

HANABAR HOLDINGS: Enters Liquidation Proceedings
INFRATIL LTD: Increases TrustPower Shareholding
KOTARE HII: Court Sets Liquidation Hearing on November 20
MAU'U'S TYRES: Court Sets Date to Hear Liquidation Petition
PACIFIC PRECAST: Names Terence Hillson as Liquidator

PAPAROA BLOCK: Court to Hear Liquidation Petition on November 9
PORT VIEW: Liquidation Commenced on October 3
SAP INVESTMENTS: Shareholders Opt to Liquidate Business
TRUSTPOWER: Posts NZ$57.5 Mln Surplus for 1st Half of 2006
* NZ Expects NZ$1.47-Bln Budget Deficit at Year-Ended June '06


M A L A Y S I A

ARMSTRONG WORLD: Requests for Payment Deadline Set for Nov. 16
DCEIL INTERNATIONAL: Subsidiary Defaults Payment as of September
EKRAN BERHAD: Submits Application to Bourse to Uplift from PN 17
EKRAN BERHAD: Posts Defaults Update as of September 2006
FOREMOST HOLDINGS: Still Reviewing Regularization Plan

GEORGE TOWN: Unfinished Revamp Plan Delays Financials Release
MERGE ENERGY: Enters Into Sale and Purchase Agreement
MERGE ENERGY: Unit Inks Sale and Purchase Agreement
VERIFONE HOLDING: American Stock Exchange Launched Trade Options


P H I L I P P I N E S

ALLIED BANK: Fitch Affirms Individual Rating at D
BANK OF THE PHILIPPINE ISLANDS: 3Q2006 Net Income Up 11%
LANDBANK OF THE PHILS: Launches Credit Facility for Borrowers
NATIONAL POWER: Gives PHP6 Mln Damage Compensation to Semirara
PHILIPPINE NATIONAL BANK: Fitch Affirms Individual Rating at E

SECURITY BANK: Reports 51% Rise in Profit to PHP1.35 Billion
* RP's 9-month Corporate Income Tax Collection Up 29%


T H A I L A N D

BANGKOK BANK: Restructures Executive Team
TOTAL ACCESS: Gets 1.5 Million New Mobile-Phone Numbers


* Upcoming Meetings, Conferences and Seminars

     - - - - - - - -

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

A.R. NEAL: Shareholders Pass Resolution to Wind Up Firm
-------------------------------------------------------
At a general meeting of A. R. Neal Pty Ltd held on October 13,
2006, the shareholders passed a special resolution to
voluntarily wind up the company's operations and distribute the
proceeds of its disposed assets.

The liquidator can be reached at:

         B. A. Secatore
         Cor Cordis
         Chartered Accountants
         406 Collins Street, Melbourne 3000
         Australia


ADRIATIC IMPORTS: Final Meeting Slated for November 10
------------------------------------------------------
The members and creditors of Adriatic Imports & Security
Management Pty Ltd will hold a final meeting on November 10,
2006, at 10:30 a.m., to receive Liquidator M. F. Cooper's final
account.

The Troubled Company Reporter - Asia Pacific has reported that
the Company commenced a wind-up of its operations on
September 20, 2005.

The Liquidator can be reached at:

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


ALL CAR: Liquidator M. F. Cooper to Present Final Wind-Up Report
----------------------------------------------------------------
A final meeting for the members and creditors of All Car Parts
Pty Ltd, which is in liquidation, will be held on November 10,
2006, at 11:30 a.m.

During the meeting, Liquidator M. F. Cooper will present the
final accounts regarding the company's wind-up proceedings.

The Liquidator can be reached at:

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


ANROSS INVESTMENTS: To Declare Priority Dividend on November 6
--------------------------------------------------------------
A first priority dividend will be declared for the creditors of
Anross Investments Pty Ltd on November 6, 2006, to the exclusion
of creditors who cannot prove their debts on that day.

The Troubled Company Reporter - Asia Pacific has reported that
the creditors resolved to close the company's business on
December 23, 2005.

The Liquidator can be reached at:

         John Frederick Lord
         PKF
         Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia


APTA MEDIA: Members Agree to Liquidate Business
-----------------------------------------------
On October 12, 2006, the members of Apta Media Pty Ltd decided
to liquidate the company's business.

Accordingly, Gregory Stuart Andrews was appointed as liquidator.

The Liquidator can be reached at:

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


BURNS PHILP: Rank Group Offer's Final Closing Date Set on Nov. 9
----------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific previously reported
that Rank Group Limited extended its offer period for
shareholders of Burns Philp & Company Limited to submit their
acceptances to November 3, 2006, at 7:00 p.m. (Sydney Time) from
October 20, 2006.

In a recent filing with the Australian Stock Exchange, Rank
Group disclosed that its offer for Burns Philp has steadily
progressed over recent weeks.  It now has more than 80% under
the offer and the institutional acceptance facility.

However, Rank Group recognized that the conditionality of the
offer has caused some uncertainty about when shareholders will
be paid for the acceptance.  Accordingly, Rank Group has decided
to make November 9, 2006, as the final closing date for the
offer.

For the avoidance of doubt, there will be no further extensions
beyond this date, Rank Group notes.

Rank Group also revealed that the only remaining condition is
the 90% acceptance condition.  If this condition is met or
waived, shareholders will be paid by the earlier of five
business days of the offer becoming unconditional and Nov. 16,
2006.  Those shareholders who have not accepted before Nov. 9,
2006, will enter the compulsory acquisition process.  Under this
process, it will take between five weeks and two months for
payment to be made.

If the offer fails and the shareholder has accepted it, Rank
Group will return the shares.  However, it is Grant Samuel &
Associates Pty Limited's opinion that the share price will fall
under this scenario, Rank Group said.

According to the TCR-AP, Grant Samuel was engaged to prepare an
independent expert's report in relation to the offer.

Thus, Rank Group asserted that the offer is in the best interest
of all shareholders and urged them to accept the offer before
the final closing date.

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

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

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

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

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

                        About Burns Philp

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

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

                          *     *     *

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


CANBERRA NEUROLOGICAL: Members to Receive Wind-Up Report
--------------------------------------------------------
The members of Canberra Neurological Centre Pty Ltd will hold a
final meeting on November 6, 2006, at 10:00 a.m., to receive the
accounts on the company's wind-up proceedings and property
disposal exercises from Liquidator R. A. Dawson.

The Troubled Company Reporter - Asia Pacific previously reported
that the members of the company agreed to wind up its operations
on March 14, 2006.

The Liquidator can be reached at:

         Raymond A. Dawson
         R. A. Dawson & Associates
         GPO Box 443, Canberra ACT 2601
         Australia


COLMERO PTY: Members Resolve to Wind-Up Operations
--------------------------------------------------
At a general meeting held on October 12, 2006, the members of
Colmero Pty Ltd resolved to voluntarily wind up the company's
operations.

In this regard, Stan Tralanedes was appointed as liquidator.

The Liquidator can be reached at:

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


CORPERS (NO 450): Liquidator to Give Wind-Up Report
---------------------------------------------------
Corpers (No 450) Pty Ltd will hold a final meeting for its
members on November 1, 2006, at 11:30 a.m.

During the meeting, Liquidator Judson will give a wind-up report
regarding on how the Company was wound up and how the properties
were disposed of.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia


ERDYNAST HOLDINGS: Members' Final Meeting Set for November 1
------------------------------------------------------------
Members of Erdynast Holdings Pty Ltd will hold a final meeting
on November 1, 2006, at 9:30 a.m., to receive Liquidator
Judson's account the Company's wind up and properties disposal
exercises.

According to the Troubled Company Reporter - Asia Pacific, the
company declared the first and final dividend for its creditors
on October 25, 2006.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia


EVANS & TATE: To Hold AGM on November 27
----------------------------------------
Evans & Tate Limited's Annual General Meeting for 2006 will be
held at:

   Venue: Deacons
          Level 15, RACV Tower
          485 Bourke Street
          Melbourne, Victoria

    Date: November 27, 2006

    Time: 9:00 a.m. (AEST)

During the AGM, shareholders may ask:

   * the company's directors in relation to the management of
     Evans & Tate and the remuneration report set out in the
     2006 Annual Report; and

   * KPMG, as the auditor who prepared the auditor's report for
     the year ended June 30, 2006, matters that are relevant to
     the content of the auditor's report or the conduct of the
     audit of the financial report.

In accordance with the Corporations Regulations 2001, the
Company has determined that the shareholding of each person for
the purpose of determining entitlements to attend and vote at
the meeting will be the entitlement of that person set out in
the Company's share register as at 9:00 a.m. (AEST) on Saturday,
November 25, 2006.  Accordingly, transactions registered after
that time will be disregarded in determining entitlements to
attend and vote at the meeting.

                 Appointment of PKF as Auditor

KPMG, the Company's existing auditor, have applied to the
Australian Securities and Investments Commission for consent to
resign their appointment effective from the date of the
conclusion of the AGM.

Following the conduct of a tender for the audit work, the
Directors consider that PKF offered the best proposal to audit
the Company and therefore seeks to appoint PKF as auditor of the
Company.  The nomination to the appointment of PKF as auditor of
the Company has been properly received from John Hopkins in
accordance with the Corporations Act 2001.

PKF has consented to act as company's auditor if this resolution
is passed and subject to KPMG receiving the consent of the ASIC
to its resignation.

If approval is received from shareholders and the ASIC, PKF will
commence as auditor of the Company on the date and from the
conclusion of the AGM.

The Board of Directors, recommend that Shareholders vote in
favor PKF's appointment as auditor.

                    About Evans & Tate

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

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

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

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

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

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


F.I.T. MANAGEMENT: Members and Creditors Opt to Shut Down Firm
--------------------------------------------------------------
On October 13, 2006, the members and creditors of F.I.T.
Management Services Pty Ltd agreed to shut down the company's
business.

In this regard, R. A. Sutcliffe was appointed as liquidator.

The Liquidator can be reached at:

         R. A. Sutcliffe
         Ground Floor, 192-198 High Street
         Northcote, Victoria 3070
         Australia
         Telephone:(03) 9482 6277


F.I.T. VICTORIAN: Faces Wind-Up Proceedings
-------------------------------------------
At the meetings held on October 13, 2006, the members and
creditors of F.I.T. Victorian Services Pty Ltd resolved to wind
up the company's operations and appointed R. A. Sutcliffe as
liquidator.

The Liquidator can be reached at:

         R. A. Sutcliffe
         Ground Floor, 192-198 High Street
         Northcote, Victoria 3070
         Australia
         Telephone:(03) 9482 6277


FAMILY FOUR (99): To Declare First and Final Dividend
-----------------------------------------------------
Family Four (99) Pty Ltd, which is subject to a deed of company
arrangement, will declare the first and final dividend for its
creditors on December 15, 2006.

Failure to submit proofs of claim by November 7, 2006, will
exclude the creditor from sharing in the company's distribution.

The Deed Administrator can be reached at:

         Andrew Fielding
         PPB
         Chartered Accountants & Business Reconstruction
         Specialists
         Level 4, 31 Sherwood Road
         Toowong, Queensland 4066
         Australia
         Telephone:(07) 3371 7244
         Facsimile:(07) 3371 7311


FAZZARI HOLDINGS: Creditors Decide to Close Business
----------------------------------------------------
On October 11, 2006, the creditors of Fazzari Holdings Pty Ltd
decided to close the company's business.

Accordingly, K. L. Sutherland was appointed as liquidator.

The Liquidator can be reached at:

         K. L. Sutherland
         Bent & Cougle Pty Ltd
         Chartered Accountants
         Level 5, 332 St Kilda Road
         Melbourne, Victoria 3004
         Australia


FLOOR KING: Members & Creditors to Hold Final Meeting on Nov. 10
----------------------------------------------------------------
Floor King Direct Pty Ltd, which is in liquidation, will hold a
final meeting for its members and creditors on November 10,
2006, at 11:00 a.m.

At the meeting, the members and creditors will hear the
liquidator's final accounts on the company's wind-up
proceedings.

The liquidator can be reached at:

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


G J LETHBORG: Liquidator McKenzie to Present Wind-Up Report
-----------------------------------------------------------
G J Lethborg Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on October 31, 2006.

During the meeting, Liquidator Donald Hugh McKenzie will present
the report regarding the company's wind-up proceedings and
property disposal activities.

The Liquidator can be reached at:

         Donald Hugh Mckenzie
         KPMG
         Level 2, 33 George Street
         Launceston, Tasmania 7250
         Australia
         Telephone:(03) 6337 3737


GNM LOGISTICS: Prepares to Declare Dividend on November 15
----------------------------------------------------------
GNM Logistics Pty Ltd, which is in liquidation, will declare the
first and final dividend for its creditors on November 15, 2006.

Creditors are required to formally prove their debt by
November 10, 2006, to be included in the benefit of the
dividend.

The liquidator can be reached at:

         John Morgan
         PKF
         Chartered Accountants
         Level 10, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia


GROMSTAR PTY: Placed Under Voluntary Wind-Up
--------------------------------------------
Members of Gromstar Pty Ltd met on October 9, 2006, and agreed
to voluntarily wind up the company's business.

At the meeting of creditors held that same day, Wayne Benton was
appointed as liquidator.

The Liquidator can be reached at:

         Wayne Benton
         PPB
         Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria 3000
         Australia


GROOVEHEAD PRODUCTIONS: Liquidator to Present Wind-Up Report
------------------------------------------------------------
A joint final meeting for the members and creditors of
Groovehead Productions Pty Ltd will be held on November 3, 2006,
at 10:30 a.m., to receive Liquidator C. M. Williamson's report
on the company's wind-up and property disposal exercises.

On October 18, 2005, the Troubled Company Reporter - Asia
Pacific, reported that the company has commenced a wind-up of
its operations on September 13, 2005.

The Liquidator can be reached at:

         C. M. Williamson
         SimsPartners
         Level 12, Dwyer Durack House
         40 St Georges Terrace
         Perth, Western Australia 6000
         Australia


G S L HOLDINGS: Members and Creditors to Convene on October 31
--------------------------------------------------------------
A final general meeting for the members and creditors of G S L
Holdings Pty Ltd will be held on October 31, 2006, at 2:30 p.m.

At the meeting, members and creditors will receive Liquidator
Posner's account on the company's wind-up and property disposal
activities.

The Liquidator can be reached at:

         Melvyn M. Posner
         Dickson Carrello Chartered Accountants
         1st Floor, London House
         216 St George's Terrace
         Perth 6000
         Australia


IMATEC SOLUTIONS: Schedules Final Meeting on November 10
--------------------------------------------------------
Imatec Solutions Pty Ltd, which is in liquidation, will hold a
final meeting for its members and creditors on November 10,
2006, at 12:00 p.m., to consider Liquidator M. F. Cooper's final
account.

The Liquidator can be reached at:

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


JERRABOMBERRA GENERAL: Creditors to Prove Debts on November 15
--------------------------------------------------------------
Jerrabomberra General Store Pty Ltd, which is subject to a deed
of company arrangement, will declare its first interim dividend
on November 20, 2006.

Creditors are required to prove their debts by November 15,
2006, for them to share in any distribution the company will
make.

The deed administrator can be reached at:

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


NYLEX LIMITED: Files Prospectus to Raise AU$30 Million Capital
--------------------------------------------------------------
On October 20, 2006, Nylex Limited filed with the Australian
Stock Exchange a Prospectus for a fully underwritten rights
issue to raise AU$30 million, as part of a AU$40-million capital
raising program.

Executive chairman Peter George said in the Prospectus that
"Trading for FY 2007 is progressing according to budget.
Further details will be provided at the Annual General Meeting,
together with earnings guidance for the 2007 financial year and
more information about the progress of the company's
restructuring plans."

Mr. George further indicated, "Nylex is likely to return to
profitability in FY2007 and is not expecting any large write-
offs in that year."

The Troubled Company Reporter - Asia Pacific reported that Nylex
will hold its Annual General Meeting of members on November 30,
2006, at 9:00 a.m., at Novotel Glen Waverley, 285 Springvale
Road, in Glen Waverley 3150.

                        About Nylex

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

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

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

The Troubled Company Reporter - Asia Pacific reported on
November 29, 2005, that Nylex's future earnings are uncertain
after shareholders sold the Company's profitable asset,
Lucrative AH Plant Hire, to a rival controlled by Nylex
shareholder and Seven Network Chairman Kerry Stokes.

Shareholders agreed to sell AH Plant Hire to the Stokes-
controlled National Hire group for AU$111 million, which just
scrapped in at the bottom of the valuation range calculated by
independent expert Ernst & Young Valuation Services.

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

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


STRATHFIELD GROUP: Members to Hold AGM on November 29
-----------------------------------------------------
Members of Strathfield Group Limited will hold their Annual
General Meeting on November 29, 2006, at 11:00 a.m., at Deloitte
Touche Tohmatsu, Level 9, Grosvenor Place, 225 George Street, in
Sydney, New South Wales.

At the meeting, the members will consider, among others, the
company and its controlled entities' financial statements for
the 52 weeks ended July 2, 2005, and the related directors'
report and declaration, and auditor's report.

For the purpose of the AGM, shares will be taken to be held by
the persons who are registered holders at 7:00 p.m., Sydney
Time, on November 27, 2006.

                      About Strathfield

Strathfield Group Limited -- http://www.strathfield.com/-- is
one of the largest independent retailers of mobile communication
products in Australia, with 86 outlets nationwide.  Strathfield
offers a large range of products including Car, Home, and Mobile
entertainment and communication tools.  Strathfield is the
leader in in-car entertainment, and provides quality "on the
spot" installation services through its outlets.

The Company has focused on paying down debt and entered into
restructuring.  After losing AU$41 million in 2003, Strathfield
Group has run its cash reserves dangerously low.  The Company
undertook a capital raising of approximately AU$22.2 million
through a AU$12.6 million placement and AU$9.6 million Rights
Issue of ordinary shares.  The shareholders previously approved
the placement of 126 million ordinary shares at AU$0.10.

Strathfield's major shareholder, Kelly Group Holdings Pty
Limited, has agreed to underwrite the rights issue to AU$8
million and has advanced to the Company, as a loan, AU$8 million
of the issue.

The Group has since been into a series of recapitalizations and
has suffered from a series of losses, defaults and a major
management team revamp in 2005.


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

AMITY TRADING: Appoints Joint Liquidators
-----------------------------------------
On October 20, 2006, the members of Amity Trading Company Ltd
appointed Andrew C. C. Ma and Felix K. L. Lee as joint and
several liquidators by way of a special resolution.

The Joint Liquidators can be reached at:

         Andrew C. C. Ma
         Felix K. L. Lee
         19/F, Seaview Commercial Building
         21-24 Connaught Road, West
         Hong Kong


COSMO WAY: Faces Wind-Up Proceedings
------------------------------------
The High Court of Hong Kong will hear the wind-up petition
against Cosmo Way Holdings Ltd on December 13, 2006, at 9:30
a.m.

Yu Shun Nui filed the petition with the Court on October 13,
2006.

The Solicitors for the Petitioner can be reached at:

         Chui and Lau
         Room 42, 4/F
         New Henry House
         10 Ice House Street, Central
         Hong Kong


COUDERT BROTHERS: Gets Okay to Hire Dunn Koes as Special Counsel
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
allowed Coudert Brothers LLP to employ Dunn Koes LLP as its
special counsel, nunc pro tunc to Sept. 22, 2006.

As reported in the Troubled Company Reporter on Oct. 4, 2006,
Dunn Koes will continue representation of the Debtor in an
appeal to a malpractice jury verdict and judgment entered in the
matter of Lyman Gardens Apartments, LLC, et al., v. Coudert
Brothers LLP, et
al.

Lyman Gardens Apartments, LLC and Darryl Wong commenced an
action in the Superior Court of California for the County of Los
Angeles, Case No. BC299990, against Debtor and Ralph Navarro, a
partner of the Debtor, asserting certain causes of action for
professional negligence/attorney malpractice fraud, breach of
fiduciary duty, legal malpractice, fraudulent concealment, and
negligence arising from a real estate transaction for which the
Lyman Gardens Plaintiffs engaged the services of the Debtor.

In June 2006, a jury awarded the Lyman Gardens Plaintiffs
approximately $2.5 million in compensatory and punitive damages
against the Debtor.  The Debtor's appeal on the Lyman Gardens
judgment is currently pending and has not yet been perfected.

Pamela Dunn, Esq., a partner at Dunn Koes, tells the Court that
the firm's professionals bill:

         Professional                   Hourly Rate
         ------------                   -----------
         Partners                     US$275 - US$350
         Associates                        US$250
         Paralegal                         US$110

Ms. Dunn assured the Court that her firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

Coudert Brothers LLP was an international law firm specializing
in complex cross border transactions and dispute resolution.
The company had operations in China and Australia.  The Debtor
filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.
S.D.N.Y. Case No. 06-12226).  John E. Jureller, Jr., Esq., and
Tracy L. lestadt, Esq., at Klestadt & Winters, LLP, represents
the Debtor in its restructuring efforts.  In its schedules of
assets and debts, Coudert listed total assets of US$29,968,033
and total debts of US$18,261,380.  The Debtor's exclusive period
to file a chapter 11 plan expires on Jan. 20, 2007.


DRAGON EMPIRE: Receive Court's Wind-Up Order
--------------------------------------------
On October 11, 2006, Dragon Empire Ltd was ordered by the High
Court of Hong Kong to wind up its operations.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company was facing a liquidation petition filed by Lako
Development Ltd on August 11, 2006.


EXETER CAPITAL: Members' Final Meeting Slated for November 27
-------------------------------------------------------------
Members of Exeter Capital Ltd will hold a final general meeting
on November 27, 2006, at 10:00 a.m., to receive Liquidator
Susana Bik-Chu Lung's account on the company's wind-up and
property disposal exercises.

According to the Troubled Company Reporter - Asia Pacific, the
company's creditors were required to prove their claims on
September 18, 2006.

The Liquidator can be reached at:

         Susanna Bik-Chu Lung
         2503 Bank of American Tower
         12 Harcourt Road, Central
         Hong Kong


GENESIS ENGINEERING: Court Approves Wind-Up Petition
----------------------------------------------------
On October 11, 2006, the High Court of Hong Kong issued an order
to wind up Genesis Engineering Company Ltd's operations.

According to the Troubled Company Reporter - Asia Pacific, Lau
Sai Wah filed the petition with the Court on August 14, 2006.


GOLDEN GENIUS: Receive Wind-Up Order from Court
-----------------------------------------------
On October 11, 2006, Golden Genius Enterprises Management Ltd
received a wind-up order from the High Court of Hong Kong.

On September 26, 2006, the Troubled Company Reporter - Asia
Pacific reported that Chan Tai Choi filed the petition with the
Court on August 14, 2006.


GO-TECH FIRE: Court Sets Wind-Up Petition Hearing on November 22
----------------------------------------------------------------
A petition to wind up Go-Tech Fire Protection Company Ltd will
be heard before the High Court of Hong Kong on November 22,
2006, at 9:30 a.m.

Maza Aluminium Engineering Co. Ltd filed the petition with the
Court on September 6, 2006.

The Solicitors for the Petitioner can be reached at:

         Leung Chan & Pang
         Suite 1203, 12/F, Wing On House
         71 Des Voeux Road, Central
         Hong Kong


HIGH TALENT: Court Issues Wind-Up Order
---------------------------------------
The High Court of Hong Kong issued a wind-up order against High
Talent Construction Engineering Ltd's operations on October 11,
2006.

The Troubled Company Reporter - Asia Pacific has reported that
the Company was facing a liquidation proceeding from a petition
filed by Yu Siu Wai on August 11, 2006.


KELI CONSUMER: Creditors Must Prove Debts by November 27
--------------------------------------------------------
Liquidator Wong Ip Tong requires the creditors of Keli Consumer
Products Ltd to submit their proofs of debts by November 27,
2006.

Creditors who fail to submit by the due date will be excluded
from sharing in any distribution the Company will make.

The Liquidator can be reached at:

         Wong Ip Tong
         Room 11, 7/F Tins Enterprises Centre
         777 Lai Chi Kok Road, Kowloon
         Hong Kong


LUEN KO: Members Resolve to Wind Up Operations
----------------------------------------------
At an extraordinary general meeting held on October 17, 2006,
the members of Luen Ko Investment Company Ltd passed a special
resolution to voluntarily wind up the company's operations.

In this regard, Chan Wan Po was appointed as liquidator.

The Liquidator can be reached at:

         Chan Wan Po
         Room 303, Chuk On Building
         19-25 Mercer Street
         Hong Kong


MAY QUEEN: Members to Receive Wind-Up Report
--------------------------------------------
A final meeting will be held for the members of May Queen Ltd on
November 28, 2006, at 11:00 a.m., to receive an account of the
company's wind-up and property disposal exercises from
Liquidator Au Tak Cheong.

According to the Troubled Company Reporter - Asia Pacific, May
Queen's creditors were required to submit their proofs of debt
on October 3, 2006.

The Liquidator can be reached at:

         Au Tak Cheong
         30/F, New World Tower
         18 Queen's Road, Central
         Hong Kong


OVERSEAS CROWN: Liquidator Ngan Lin Chun Esther Steps Aside
-----------------------------------------------------------
Ngan Lin Chun Esther on October 18, 2006, ceased to act as
liquidator of Overseas Crown Development Ltd.

The Troubled Company Reporter - Asia Pacific previously reported
that Liquidator Ngan presented the accounts of the Overseas
Crown's wind-up proceedings on October 18, 2006.

The former Liquidator can be reached at:

         Ngan Lin Chun Esther
         1902 MassMutual Tower
         38 Gloucester Road, Wanchai
         Hong Kong


ROUSSEL UCLAF: Creditors' Proofs of Claim Due on November 17
------------------------------------------------------------
Creditors of Roussel UCLAF China Ltd are required to submit
their proofs of claim by November 17, 2006, to Joint Liquidators
Yeung Betty Yuen and Paul David Stuart Moyes.

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

The Joint Liquidators can be reached at:

         Yeung Betty Yuen
         Paul David Stuart Moyes
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


TCL MULTIMEDIA: Mulls Closure of European Operations
----------------------------------------------------
TCL Multimedia Technology Holdings Ltd plans to wind down a
loss-making European operation and lay off an undisclosed number
of employees, The Standard reports.

The firm, the report clarifies, does not expect its operations
in North America and China to be affected by the planned
restructuring.

In a statement, TCL Multimedia said that it would wind down
sales and marketing of TV products from its TTE Europe SAS unit
by late October or November 2006, excluding any business related
to original equipment manufacturing.

As a result, the company claimed that its worldwide revenue
would decline in 2007, but is expected to rebound in 2008 as a
new European business model will be implemented.

Moreover, six sales units of TTE Europe in the Czech Republic,
Germany, Hungary, Italy, Spain, and Sweden would also undergo a
restructuring in future, the company said without elaborating.

The Standard says that the company would expand an existing OEM
business in Europe, with the majority of support services to be
based in Hong Kong and China, The Standard relates.  It would
also continue to have the right to use the Thomson trademark in
Europe for the next two years without paying a royalty fee.

TCL Multimedia disclosed that its substantial losses due to poor
business performance in Europe reached an accumulated investment
loss of EUR203 million or US$258.2 million in that region as of
the end of September 2006.

Turnover of the company's European operation amounted to EUR328
million for the first nine months of 2006, representing 15% of
the company's total turnover.

Net losses at the European arm were EUR159 million compared with
the company's overall net loss of HK$1.52 billion or
US$195 million.  Assets of the European operation stood at
EUR132 million, or about 10% of the company's total.

Restructuring the business would cost about EUR45 million,
covering provisions for redundancies or retrenchment benefits
for employees.

                          *     *     *

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

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


TOP POWER: Wind-Up Petition Hearing Set on December 6
-----------------------------------------------------
A liquidation petition filed against Top Power Group Holdings
Ltd will be heard before the High Court of Hong Kong on
December 6, 2006, at 9:30 a.m.

Winco (Asia) Ltd filed the petition with the Court on
October 11, 2006.

Winco's Solicitors can be reached at:

         Chui and Lau
         Room 42, 4/F
         New Henry House
         10 Ice House Street, Central
         Hong Kong


VITEC ELECTRONICS: Joint Liquidators Step Aside
-----------------------------------------------
On October 23, 2006, Lai Kar Yan Derek and Darach E. Haughey
ceased to act as joint and several liquidators of Vitec
Electronics (H.K.) Co. Ltd.

As reported by the Troubled Company Reporter - Asia Pacific, the
joint liquidators presented a report regarding Vitec
Electronics' wind-up and property disposal activities on October
23, 2006.

The former Joint Liquidators can be reached at:

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


YORK ELECTRONIC: To Pay Preferential Dividend on November 17
------------------------------------------------------------
York Electronic Works Ltd will pay the first and final
preferential dividend to its creditors on November 17, 2006.

The Joint Liquidator can be reached at:

         Andrew George Hung
         Yau Sun Yu, Sonia
         Room 1603, 16/F
         Grand Centre
         8 Humphreys Avenue
         Tsimshatsui, Hong Kong


YUEN KEE: Names Leung Chi Wing as Liquidator
--------------------------------------------
At an extraordinary general meeting on October 18, 2006, members
of Yuen Kee Transportation Company Ltd passed a special
resolution and appointed Leung Chi Wing as liquidator.

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

The Liquidator can be reached at:

         Leung Chi Wing
         Rm B, 4/F, Kiu Fu Commercial Building
         300 Lockhart Road, Wan Chai
         Hong Kong


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

AMERICAN AXLE: Incurs US$62.9MM Net Loss in Third Quarter 2006
--------------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., reported these
highlights for the third quarter of fiscal year 2006:

   -- Third quarter sales of US$701.2 million;

   -- Overall 19% year-over-year decline in production volumes;

   -- Non-GM sales of US$153.2 million, totaling 22% of net
      sales;

   -- Special charges of US$93.1 million, or US$1.17 per share,
      for post employment benefits; and

   -- Net loss of US$62.9 million or US$1.25 per share

American Axle's results in the third quarter of 2006 were a net
loss of US$62.9 million or US$1.25 per share.  This compares to
earnings of US$19.3 million or US$0.38 per share in the third
quarter of 2005.

In the third quarter of 2006, American Axle recorded a special
charge relating to supplemental unemployment benefits estimated
to be payable to UAW associates who are expected to be
permanently idled through the end of the current contract period
in February 2008.  This special charge increased American Axle's
operating costs in the third quarter of 2006 by US$91.2 million.
In addition to this special charge, American Axle incurred
US$22.7 million of supplemental unemployment benefits and other
related benefit costs for associates on layoff in the third
quarter of 2006.  American Axle also recorded a US$1.9 million
special charge in the quarter related to future severance
payments to associates in our European operations.

American Axle's results in the third quarter of 2006 reflect an
overall 19% year-over-year decline in production volumes.  This
includes an estimated 5.4% decrease in customer production
volumes for the major full-size truck and SUV programs it
currently supports for GM and The Chrysler Group as compared
with the third quarter of 2005.  American Axle estimates that
customer production volumes for its mid-sized pick-up truck and
SUV programs were down approximately 54% in the quarter on a
year-over-year basis.

"As the domestic automotive industry continues its unprecedented
structural transformation, we are taking the necessary actions
to improve American Axle's global cost competitiveness," said
American Axle & Manufacturing Co-Founder, Chairman of the Board
& Chief Executive Officer, Richard E. Dauch.  "American Axle
remains focused on managing the things that we control.  This
includes supporting the introduction of General Motor's new
full-size pick-ups in the fourth quarter of 2006, while at the
same time successfully launching our new regional manufacturing
facilities in China and Poland."

Net sales in the third quarter of 2006 were US$701.2 million as
compared with US$848.1 million in the third quarter of 2005.
Non-GM sales in the quarter were US$153.2 million representing
22% of American Axle's total sales.  On a year-to-date basis,
American Axle's non-GM sales were US$561.4 million, or 23% of
American Axle's sales through the third quarter of 2006.

American Axle's content per vehicle was US$1,204 in the third
quarter of 2006 as compared with US$1,240 in the third quarter
of 2005. Production mix shifts related to the four-wheel drive
and all-wheel drive (4WD/AWD) versions of its full-size and mid-
size light truck programs continued to negatively impact
content-per-vehicle in the third quarter of 2006.  For the
quarter, American Axle's 4WD/AWD penetration rate was 58.0% as
compared with 65.9% in the third quarter of 2005.  American Axle
defines its 4WD/AWD penetration rate as the total number of
front axles produced divided by the number of rear axles
produced for the vehicle programs on which it sells product.

Gross margin in the third quarter of 2006 was negative 8.8% as
compared with 9.8% in the third quarter of 2005. Operating
income was a loss of US$110.0 million or negative 15.7% of sales
in the quarter as compared with US$34.9 million or 4.1% of sales
in the third quarter of 2005.

American Axle's results in the third quarter of 2006 include a
favorable outcome of US$9.1 million, or US$0.12 per share,
associated with the resolution of various legal proceedings and
claims during the quarter, net of costs incurred to resolve
these matters.  Including costs incurred earlier in the year
related to these proceedings, the net favorable impact of these
items for the first three quarters of the year was US$7.6
million, or US$0.10 per share.

American Axle's results in the third quarter of 2005 included a
net benefit of US$6.2 million, or US$0.08 per share, related to
a retroactive metal market recovery agreement under which
American Axle was reimbursed for costs incurred in the first
half of 2005, net of other retroactive purchased material cost
adjustments.

Net sales in the first three quarters of 2006 were US$2.4
billion, as compared with US$2.5 billion in the first three
quarters of 2005. Gross margin was 3.8% in the first three
quarters of 2006 as compared with 9.5% for the first three
quarters of 2005.  Operating income for the first three quarters
of 2006 was a loss of US$54.5 million or negative 2.3% of sales
as compared with US$97.0 million or 3.8% of sales for the first
three quarters of 2005.

American Axle's gross margin and operating margin performance in
the first three quarters of 2006 reflect the impact of the
special charges recorded in the third quarter of 2006 relating
to post employment benefits.  In addition to these special
charges, American Axle also incurred US$58.6 million of
supplemental unemployment benefits and other related benefit
costs for associates on layoff in the first three quarters of
2006.  Higher non-cash expenses related to depreciation,
amortization, pension and other postretirement benefits and
stock-based compensation as well as higher fringe benefit costs
also pressured margins in the first three quarters of 2006.

In the first three quarters of 2006, American Axle's SG&A
spending was US$145.9 million or 6.1% of sales as compared with
US$144.0 million or 5.7% of sales in the first three quarters of
2005.  American Axle continues to increase SG&A spending in 2006
to support its R&D initiatives and its expanded foreign business
and technical offices.

American Axle defines free cash flow to be net cash provided by
(or used in) operating activities less capital expenditures and
dividends paid.  Net cash provided by operating activities in
the first three quarters of 2006 was US$161.7 million as
compared with US$143.4 million in the first three quarters of
2005.  Capital spending in the first three quarters of 2006 was
US$243.5 million.  Reflecting the impact of this activity and
dividend payments of US$23.3 million, American Axle's free cash
flow in the first three quarters of 2006 was a use of US$105.1
million.

                      Recent Developments

On Oct. 4, 2006, American Axle announced that it will offer a
Special Attrition Program or SAP to all UAW associates at
American Axle's master agreement facilities in the fourth
quarter of 2006.  In conjunction with this special attrition
program, American Axle expects to initiate additional
restructuring actions in 2006 to realign its production capacity
and cost structure to current and projected operational and
market requirements.  These actions are expected to include
salaried workforce reductions, the redeployment of machinery and
equipment to support new programs, and other steps to
rationalize underutilized capacity.  As a result of these
anticipated special charges, American Axle withdrew its 2006
earnings and cash flow guidance provided on June 8, 2006.

American Axle & Manufacturing -- http://www.aam.com/--  
manufactures, engineers, designs and validates driveline and
drive train systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport
utility vehicles and passenger cars.  In addition to locations
in the United States, AAM also has offices or facilities in
India, Brazil, China, England, Germany, Japan, Mexico, Poland,
Scotland and South Korea.

                          *     *     *

Standard & Poor's Ratings Services assigned its 'BB' rating to
the US$50 million senior unsecured term loan of American
Axle & Manufacturing Inc. (BB/Negative/--).

The corporate credit ratings on American Axle and parent
company, American Axle & Manufacturing Holdings Inc., are 'BB'.
The rating outlook is negative.  The company has about US$717
million of lease-adjusted debt and US$425 million of underfunded
employee benefit liabilities.


BALLY TECH: Forms Strategic Alliance with Points International
--------------------------------------------------------------
Bally Technologies, Inc., disclosed a strategic partnership with
Points International Ltd. -- owner and operator of Points.com --
that introduces the Points.com portal and Points.com Business
Solutions products to the evolving reward programs available
throughout the gaming industry.

Designed to appeal to both casinos and their patrons, the
partnership expands the Bally Casino Management Systems and
Bally Power Bonusing product portfolios.  Casino patrons,
through membership in Points.com, will enjoy vast opportunities
for reward management, including redemption into the world's
largest and most successful reward programs currently
participating on Points.com.  The flexibility and utility that
Points.com brings to these members makes the currencies earned
at Bally-powered reward programs even more valuable.

In addition, casino reward programs powered by Bally
Technologies can now easily integrate individual casino-branded
versions of the industry-leading Points.com Business Solutions
products, giving them increased potential for enhancing revenues
and customer loyalty.

"The power of player's club points as a tool to reward players
and increase revenue is well known in the gaming industry and
this agreement with Points International will allow us to add
innovative new features to our already-strong suite of Bally
Power Bonusing products," said Paul Lofgren, Executive Vice
President of Business Development for Bally.

"The gaming industry is a tremendous market and one we're eager
to explore," said Rob MacLean, CEO of Points International Ltd.
"Bally Technologies, the clear leader in gaming systems
technology, is the ideal partner with whom to begin this
exploration."

                  About Points International

Points International Ltd. is owner and operator of Points.com,
the world's leading reward-program management portal.  At
Points.com consumers can Swap, Earn, Buy, Gift, Share and Redeem
miles and points from more than 25 of the world's leading reward
programs.

Headquartered in Las Vegas, Bally Technologies, Inc., --
http://www.BallyTech.com/-- designs, manufactures, operates and
distributes advanced gaming devices, systems and technology
solutions worldwide.  Bally's product line includes reel-
spinning slot machines, video slots, wide-area progressives and
Class II, lottery and central determination games and platforms.
Bally also offers an array of casino management, slot
accounting, bonusing, cashless and table management solutions.
The company also owns and operates Rainbow Casino in
Vicksburg,Miss.  Bally Technologies' has operations in Macau,
China and India.

                        *    *    *

Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


BALLY TECH: Reports Initial Restated Results for 2003 to 2005
-------------------------------------------------------------
Bally Technologies Inc. disclosed preliminary restated results
for the fiscal years ended June 30, 2005, 2004, and 2003.  The
company had earlier disclosed that the previously issued
financial statements for those periods, their related auditors'
reports, and the quarterly financial information reported for
the years ended June 30, 2005, and 2004, should no longer be
relied upon and would require restatement.

The data represents Bally Technologies' preliminary estimate of
the impact of the restatement for the fiscal years ended
June 30, 2005, 2004, and 2003.

These amounts are subject to change until the filing of Bally
Technologies' amended 2005 Form 10-K, which is expected to be
filed in October 2006.  These amounts indicated the total
revenues as previously reported and the preliminary impact of
the restatement.

                                Previously    Restatement
                                 Reported     Adjustments

   Total revenues for the
   Fiscal year ended:

      June 30, 2003            US$363,200,000   (US$3,900,000)
      June 30, 2004            US$480,400,000   (US$1,700,000)
      June 30, 2005            US$484,000,000    US$1,100,000

The restatement also includes certain inventory adjustments
related to Bally Technologies' computation of variances between
actual and standard costs for games produced.

The restatement also includes other non-revenue related items
including, but not limited to, expense accrual adjustments,
depreciation expense and other expenses, none of which are
significant individually or in the aggregate.

Robert Caller, the chief financial officer of Bally
Technologies, commented, "The process of the restatement has
been long and arduous for the company and investors, and we look
forward to completing this over the next few weeks.  We will
also continue to focus on completing our reporting for fiscal
year 2006."

Upon filing its amended 2005 Form 10-K, Bally Technologies plans
to file its Form 10-Qs for each of the quarters within fiscal
year 2006, and the 2006 Form 10-K, before Dec. 31, 2006.

Bally Technologies has requested an amendment to its bank loan
agreement, to extend the deadline for delivery of the 2006
audited financial statements from Nov. 3, 2006, to
Dec. 31, 2006.

While Bally Technologies believes it can achieve this filing
schedule, there can be no assurance that the schedule will be
met, or that the amendment to the credit agreement will be
successfully obtained.

As previously disclosed, Bally Technologies did not achieve its
fiscal 2006 profitability objectives due to:

   -- lower gross margins on game sales related to introductory
      pricing and the manufacturing costs of its newly
      commercialized slot machine platforms introduced in fiscal
      2006,

   -- high legal and accounting costs associated with ongoing
      litigation and restatement activities,

   -- increased interest costs,

   -- inventory obsolescence charges, and

   -- the acceleration of depreciation on legacy daily-fee
      games.

Headquartered in Las Vegas, Bally Technologies, Inc., --
http://www.BallyTech.com/-- designs, manufactures, operates and
distributes advanced gaming devices, systems and technology
solutions worldwide.  Bally's product line includes reel-
spinning slot machines, video slots, wide-area progressives and
Class II, lottery and central determination games and platforms.
Bally also offers an array of casino management, slot
accounting, bonusing, cashless and table management solutions.
The company also owns and operates Rainbow Casino in
Vicksburg,Miss.  Bally Technologies' has operations in Macau,
China and India.

                        *    *    *

Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


BRISTOW GROUP: Weak Profile Spurs S&P to Rate Pfd. Stock at B
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
the helicopter service company Bristow Group Inc.'s
US$230 million 5.5% mandatory preferred convertible stock.  At
the same time, Standard & Poor's affirmed the 'BB' corporate
credit rating on the company.  The outlook is negative.

As of June 30, 2006, Lafayette, La.-based Bristow Group had
US$261.5 million of debt.

The ratings on Bristow reflect the company's weak business risk
profile.  Bristow is subject to the cyclicality and volatility
of the oil and gas offshore exploration and production industry.
Flight hours are highly correlated with levels of offshore
production, as well as changes in the offshore rig count.  The
offshore rig count, in turn, is heavily influenced by commodity
prices, although this is offset by flight activity in support of
offshore production, which tends to be more stable through the
industry cycle.

Revenue stability is provided by multiyear contracts that
include a fixed monthly fee for dedicating specific aircraft to
customers, as well as a variable fee based on flight hours.
While most contracts include provisions allowing for early
termination with short notice, Bristow has historically
experienced high renewal rates due to ongoing relationships with
customers, its safety performance, knowledge of site
characteristics, and an understanding of the customer's cost
structure.

"The negative outlook reflects the ongoing SEC investigation
regarding improper activities in Nigeria and Brazil, as well as
a Department of Justice investigation regarding possible
antitrust activities in the Gulf of Mexico," said Standard &
Poor's credit analyst Aniki Saha-Yannopoulos.

Headquartered in Houston, Texas, Bristow Group Inc. --
http://www.bristowgroup.com/-- provides helicopter
transportation services to the offshore oil and gas industry
worldwide.  Its services include helicopter transportation,
maintenance, search, and rescue and aviation support, as well as
oil and gas production management services.  The company
operates under the brand names of Air Logistics and Bristow
Helicopters for its helicopter services, and Grasso Production
Management for its production management services.  As of March
31, 2006, the company operated 331 aircrafts and its
unconsolidated affiliates operated an additional 146 aircrafts.

The company has offices in India, Australia, China, the
Netherlands, Singapore, Trinidad and Tobago, United Kingdom, and
the United States, among others.


CONEXANT SYSTEMS: Moody's Assigns Caa1 Corp. Family Rating
----------------------------------------------------------
Moody's Investors Service assigned a B1 rating to the senior
secured floating rate notes and a Caa1 rating to the corporate
family of Conexant Systems, Inc., a leading provider of
integrated circuits for the communications and broadband digital
home markets.  The ratings reflect both the overall probability
of default of the company under Moody's LGD framework using a
fundamental approach, to which Moody's assigns a PDR of Caa1,
and a loss-given-default of LGD-2 for the senior secured notes.

Moody's also assigned a SGL-3 speculative grade liquidity
rating, reflecting adequate liquidity.  Net proceeds from the
US$250 million note offering together with US$217 million of
balance sheet cash will be used to retire the outstanding
US$457 million 4% convertible subordinated notes maturing
February 2007.  The rating outlook is stable.

The Caa1 corporate family rating reflects Conexant's challenges,
given the company's high financial leverage and cost structure,
to withstand the dramatic swings inherent in the semiconductor
industry.  Conexant operates in a highly competitive operating
environment that is subject to cyclical factors and continuous
change.  Though limited, the company's financial flexibility
will improve following the planned refinancing of its
convertible notes maturing February 2007 and expected cash
receipts from the pending sale of its equity stake in Jazz
Semiconductor.

It is Moody's understanding that Conexant intends to use the
entire proceeds from the sale to reduce debt shortly after
receipt.  Nevertheless, Moody's believes Conexant remains
challenged to generate sufficient operating cash flow to
comfortably service its debt load during cyclical downturns.
The recent industry upturn coupled with growing demand for
Conexant's universal access, broadband access and broadband
media products, has resulted in gross margin expansion and has
helped the company to trim operating losses, however free cash
flow remains negative.  Excluding certain special charges and
expenses, Conexant has the propensity to deliver positive
operating cash flow.

Moody's believes the company's technological and product
strength, as well as its Tier 1 customer relationships, will
provide a base off of which it should be able to generate higher
revenues and profits once the company experiences rising market
share growth in its broadband media and wireless LAN (local area
networking) segments and after Conexant achieves the expected
cost reductions that are part of its most recent restructuring
efforts.

The stable outlook reflects our expectation that Conexant will
continue to demonstrate potential for improved market
penetration and favorable product mix driven by its ability to
achieve:

   -- design wins in the embedded wireless networking segment;

   -- the integration of its DSL and Wi-Fi capabilities into
      a single chip to capture higher volumes and higher
      price points; and

   -- the roll-out of new products targeting the
      residential VDSL gateway segment.

Coupled with expected cost savings from the recent
financial turnaround, this could help to improve Conexant's
profit profile.

Moody's notes that to the extent debt is not repaid as planned
from the Jazz Semi sale proceeds, the rating on the secured
notes would likely experience downward pressure.

The US$250 million senior secured floating rate notes are
secured by first priority liens on all of the company's tangible
and intangible assets (excluding the accounts receivable
facility), including:

   -- equity interests in Jazz Semi and Mindspeed Technologies;

   -- inter-company loans;

   -- real estate owned by the company; and

   -- intellectual property and contracts.

The secured notes also benefit from upstream guarantees from all
direct and indirect domestic subsidiaries.  Due to the
protection provided by the collateral package and the senior
position of the secured notes in the company's debt structure,
they are rated three notches higher than the CFR at B1 under
Moody's LGD framework, which assumes a 44% expected family
recovery rate.

Ratings assigned:

    * Corporate Family Rating: Caa1;

    * Probability of Default Rating: Caa1; and

    * US$250 million Senior Secured Floating Rate Notes
      due 2010: B1 (LGD-2, 19%); and

    * Speculative Grade Liquidity Rating: SGL-3.

Headquartered in Newport Beach, CA, Conexant Systems, Inc. --
http://www.conexant.com/-- is a leading provider of integrated
circuits for the communications and broadband digital home
markets.  The company has operations in India, Taiwan, China,
Japan, Korea, Bristol, and Germany.


CONEXANT SYSTEMS: S&P Lifts Rating to B on Improved Liquidity
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
and other ratings on Newport Beach, Calif.-based Conexant
Systems Inc., reflecting improved liquidity and operating
results.  The corporate credit rating was raised to 'B' from
'B-'.  The outlook was revised to stable from negative.

At the same time, Standard & Poor's assigned our 'B+' senior
secured rating and '1' recovery rating to the company's proposed
US$250 million senior secured floating rate notes due 2010,
indicating that investors can expect full (100%) recovery of
principal in the event of payment default.  The rating is based
on preliminary offering statements and is subject to review upon
final documentation.

Proceeds, along with cash on hand, will be used to refinance
US$457 million of debt maturing in February 2007.

"The ratings reflect volatile and competitive industry
conditions, the mature nature of its core modem business, and
still-high leverage," said Standard & Poor's credit analyst Lucy
Patricola.  "These factors are offset by good positions in its
key markets.  Conexant is a supplier of semiconductors used in
dial-up modems, set-top boxes, broadband access supporting DSL
connectivity, and wireless networking."

The outlook is stable.  The company's solid market position in
the steady dial-up modem business provides ratings support in
light of high leverage and modest free cash flow.  The outlook
could be revised to positive if the company is successful in
liquidating noncore assets and reducing debt, while maintaining
stable operations.  The outlook could be revised to negative if
the voice access business matures faster than anticipated, or if
the company's technological competitiveness in its remaining
core businesses is eroded.

Headquartered in Newport Beach, CA, Conexant Systems, Inc. --
http://www.conexant.com/-- is a leading provider of integrated
circuits for the communications and broadband digital home
markets.  The company has operations in India, Taiwan, China,
Japan, Korea, Bristol, and Germany.


ITI LTD: MTNL Proposes Barter of Defaults with Supply Bills
-----------------------------------------------------------
Mahanagar Telephone Nigam Ltd proposes to set off ITI Ltd's
defaults with supply bills, Pragya Singh of the Indian Express
reports.

According to the report, MTNL in 2003 subscribed INR100 crore in
ITI's cumulative preference share capital at 8.75% a year.  The
shares are redeemable at par in five equal installments at the
end of the 3rd, 4th, 5th, 6th and 7th year, making two
installments redeemable as of today.

However, ITI failed to redeem the first two installments (2005
and 2006), each worth INR20 crore.  By the proposal, MTNL wants
to set off these defaults with ITI's supply bills.

                          About ITI Ltd.

ITI Limited -- http://www.itiltd-india.com/default.htm-- is a
telecom company, which manufactures a range of telecom
equipment, including switching products; transmission systems,
such as satellite communication systems, optical line
terminating equipments and digital microwave systems; access
products, such as fixed wireless local loop systems and digital
local loop carriers; terminal equipment, such as telephones,
integrated services digital network products and video
conferencing systems; microelectronic products and software;
information technology products and telecom products for the
defense sector, and other products, including solar power
systems and bank mechanizing products.  It also provides value-
added services, such as shared hub very-small aperture terminal
(VSAT) services, and public mobile radio trunked services and
turnkey solutions.  Its customers include The Department of
Telecommunications, defense, railways, oil sector and corporates
in India, and certain African and South Asian nations.

                          *     *     *

Credit Analysis and Research Limited has revised the rating
assigned to the 'M' series long term bond issue of ITI Limited
to CARE D (SO) Single D (Structured Obligation) from CARE AAA
(SO) with Credit Watch.


PUNJAB NATIONAL: Reports Year-on-Year Growth of 3.9%
----------------------------------------------------
Shri S.C. Gupta, Chairman & Managing Director of Punjab National
Bank disclosed the reviewed financial results of the bank for
the first half of financial year 2006-07.

A. Profits, Income, Expenditure and Capital

   * Operating Profit of the bank for the half year ended
     September 2006 was at INR1,379 crore as compared to
     INR1,328 crore in the previous year, recording a year-on-
     year growth of 3.9%.

This was due to loss on transfer of securities from Available
for Sale to Held to Maturity category amounting to INR387 crore
during the first quarter of the financial year 2006-07.  This
transfer was done to de-risk the investment portfolio from
interest rate risk due to increase in yields on government
securities.  Excluding this loss, Operating Profit of the bank
would have been higher at INR1,766 crore and there would have
been a growth of 33%.

Operating Profit of the bank for the second quarter ended
September 2006 was at INR889 crore as compared to INR684 crore
in the corresponding period last year, recording a year-on-year
growth of 30%.

   * Net profit of the bank for the first half of the current
     financial year amounted to INR873 crore as compared to
     INR780 crore in the corresponding period of last year,
     registering a y-o-y growth of 11.8%.  This is after
     providing for necessary provisions of INR507 crore towards
     income tax, wealth tax, NPAs, standard assets,
     depreciation, etc., as compared to INR548 crore in the
     previous year.

Net profit of the bank for the second quarter of the current
financial year amounted to INR505 crore as compared to
INR422 crore in the corresponding period of last year,
registering a y-o-y growth of 19.7%.

   * Net interest income of the bank increased by 16.5% on y-o-y
     basis to reach INR2,656 crore for the half year ended
     September 2006 as compared to INR2,279 crore in the
     corresponding period last year.

Net interest income of the bank for the quarter ended Sept 2006
increased by 14.4% on y-o-y basis to reach INR1,363 crore as
compared to INR1,191 crore in the second quarter ended September
2005.

   * Total income during the half year ended September 2006 rose
     to INR5,583 crore from INR5,226 crore in September 2005
     registering a y-o-y growth of 6.9%.  Interest income of the
     bank increased by 16% on y-o-y basis to reach INR5,405
     crore for the half year ended September 2006 as compared to
     INR4,660 crore in September 2005.  Non-Interest income
     through commission, exchange and brokerage increased by
     33.6% from INR345 crore in Sept 2005 to INR461 crore in
     Sept 2006.

Total income during the quarter ended September 2006 rose to
INR3,048 crore from INR2,683 crore in September 2005 registering
a y-o-y growth of 13.6%.  Interest income of the bank increased
by 16.6% on y-o-y basis to reach INR2,764 crore for the quarter
ended September 2006 as compared to INR2,371 crore in September
2005.  Non-Interest income through commission, exchange and
brokerage increased by 17.6% from INR185 crore in the second
quarter ended Sept 2005 to INR217 crore in the second quarter
ended Sept 2006.

   * Total Expenses (excluding provisions) at INR4,204 crore
     have registered a growth of 7.9% during the half year ended
     September 2006.  While interest expenses increased by
     15.4%, non interest expenses declined by 4.0% during the
     half year.

Total Expenses (excluding provisions) at INR2,160 crore have
registered a growth of 8.0% during the quarter ended September
2006.  While interest expenses increased by 18.8%, non interest
expenses declined by 7.5% during the second quarter of current
financial year 2006-07.

   * Net Interest Margin has increased to 4.16% during the first
     half year ended September 2006 as compared to 4.00% during
     the similar period last year.

   * Return on Assets stood at 1.22% at the end of September
     2006 as compared to 1.21% at the end of September 2005.

Return on Assets stood at 1.37% for the second quarter ended
September 2006 as compared to 1.31% for the corresponding period
last year.

   * Capital to Risk Asset Ratio at the end of September 2006
     was 12.71% as compared to 14.20% at the end of September
     2005.

   * The bank has the largest network of branches amongst
     nationalized banks with 4,520 offices including 439
     extension counters at the end of September 2006.

B. Business

   * Total Business stood at INR2,10,755 crore at the end of
     September 2006 as compared to INR1,73,282 crore at the end
     of September 2005, registering a y-o-y growth of 21.6%.

   * Deposits of the bank at the end of September 2006 amounted
     to INR1,28,415 crore as compared to INR1,09,414 crore in
     September 2005, registering a growth of 17.4% on y-o-y
     basis.  Low cost deposits continued to be the thrust area
     of the bank and constituted 48.7% of total deposits.

   * Advances of the bank at the end of September 2006 amounted
     to INR82,340 crore as compared to INR63,868 crore at the
     end of September 2005, registering a y-o-y growth of 28.9%.
     The bank is having various lending schemes, such as loan
     for traders, professionals, army officers, government/PSU
     employees, pensioners & housing loan etc.  In order to
     further improve the quality of credit, various initiatives
     have been taken by the bank, such as setting up of special
     credit appraisal cells at zonal centres, online tracking
     and due diligence of credit proposals.  The bank has 7 Mid
     Corporate Branches to exclusively cater to the mid sized
     business segment of INR2 crore and above credit limits and
     8 Large Corporate Branches to cater to large corporates
     requiring INR25 crore and above credit limits.

   * Cost of Deposits was 4.35% for the half year ended Sept.
     2006 as compared to 4.30% in the corresponding period last
     year.

   * Yield on Advances has improved to 8.97% for the half year
     ended September 2006 from 8.35 % for the half year ended
     September 2005.

C. Retail Banking

   * Outstanding Retail credit amounted to INR19,794 crore as on
     30th September 2006 as compared to INR13,403 crore as on
     30th September 2005, registering an increase of 47.7%.

   * Under retail loan schemes, the housing loan segment showed
     an appreciable growth of 26% to reach a level of about
     INR6,689 crore at the end of September 2006.  Considering
     the strong competition in this segment, PNB lays emphasis
     on offering customized solutions to corporates and
     institutions with due emphasis on providing quality
     service.  Finance to traders' segment grew by 53% while
     Education loan rose by 45%.

   * Cash Management Service is available in more than 500
     centres.  The bank collected 13.19 lakh instruments
     amounting to INR11,957 crore at the end of September 2006
     and earned an income of INR13 crore.

   * Distribution of Mutual fund products of "Principal PNB AMC
     Pvt. Ltd" undertaken by the bank in 2004 is being done
     through 22 Zones.  The bank has earned fee based income of
     INR40.43 lakh from the mutual fund product distribution
     during the first half of 2006-07, as compared to INR7.79
     lakh in the corresponding period last year.

   * The bank's newly formed joint venture insurance broking
     company i.e. PNB Principal Insurance Advisory Co. (P) Ltd.
     is doing well.  During the first 5 months (April-August) of
     the current financial year, a premium of INR36.40 crore was
     collected from 1.76 lac policies through the bank's
     branches all over the country.  The Company has earned
     brokerage of INR2.45 crore.

   * The company has designed PNB-Met Life Insurance Product for
     the depositors of the bank.  The bank has also designed a
     "PNB-Parivar Bhavishya Arogya Mediclaim Policy (post
     retirement) for its employees.

D. Priority Sector Credit

   * Priority sector advances increased from INR28,855 crore in
     September 2005 to INR36,615 crore in September 2006,
     registering an annual growth of 26.9%.  Ratio of PS
     advances to net bank credit stood at 44.17% against
     national goal of 40%.

   * Credit to Agriculture at INR16,570 crore in September 2006,
     showed an annual growth of 32.7%.  Agricultural advances
     stood at 19.4% of net bank credit, thus surpassing the
     national goal of 18%.  The bank issued 1.32 lac Kisan
     Credit Cards during the first half of 2006-07 taking the
     cumulative number to 19.33 lac KCCs.

   * The bank's advances to the Small Scale sector at the end of
     September 2006 stood at INR9,606 crore as compared to
     INR7,372 crore at the end of September 2005, recording a
     growth of 30.3%.  Ratio of SSI advances to net bank credit
     stood at 11.6 % at end of September 2006.

E. NPA Management

   * Gross NPAs of the bank declined from INR3,359 crore in
     September 2005 to INR3,091 crore in September 2006.  Gross
     NPAs as percent to Gross advances have fallen from 5.09% in
     September 2005 to 3.67% in September 2006.

   * Net NPAs of the bank declined from INR201 crore in
     September 2005 to INR145 crore in September 2006.  Net NPAs
     as percent to net advances have declined from 0.32% in
     September 2005 to 0.18% in September 2006.  Our NPA
     coverage ratio is over 95%.

F. Export-Import Business

   * Export turnover of the bank increased by 13.6% (y-o-y) to
     reach a level of INR11,352 crore at the end of September
     2006.  While Import turnover rose by 33.7% (y-o-y) to
     INR13,496 crore at the end of September 2006.

   * Total Export-Import turnover of the bank increased by 23.7%
     (y-o-y) to INR24,848 crore at the end of September 2006.

   * Export credit outstanding increased by 40.1% to reach a
     level of INR5,735 crore as at the end of September 2006.

   * In its endeavour to expand international operations, the
     bank has filed an application with the UK regulator
     (Financial Services Authority) to upgrade its
     representative office at London into a wholly owned
     subsidiary.  The bank is in the process to file an
     application with the Office of Superintendent of Financial
     Institutions, Ottawa to open a subsidiary in Canada.  The
     bank has also filed an application with the MAS, Singapore
     to open an Offshore banking unit and set up a branch in
     Hongkong.

G. Information Technology

   * Core Banking Solution has been implemented in 2,171 Outlets
     at 571 centres, covering 76.2% of Bank's total business.
     Around 16.9 million customers of the bank have now the
     facility of "anytime and anywhere" banking.

   * Real Time Gross Settlement System is operational in 1,856
     branches for providing inter bank Funds Transfer Facility.
     Structured Financial Messaging System has also been
     implemented in 1,302 branches for intra bank funds
     transfer.

   * In order to provide cost effective alternate channel of
     banking, the bank has installed 830 ATMs.  The bank has
     entered into ATM sharing arrangement under 'MITR' with five
     other banks, viz., Oriental Bank of Commerce, Indian Bank,
     Karur Vysya Bank, UCO Bank and Indus Ind Bank.  Further,
     the bank has bilateral sharing of ATMs with State Bank of
     India Group along with a membership for ATM sharing with
     National Financial Switch under IDRBT.  This has enabled
     access to over 14,000 ATMs spread all over the country to
     the customers.  Besides, 'Maestro" branded Debit Card of
     the bank is accepted at all ATMs having Maestro/Cirrus
     logo.  The total number of ATMs where Bank's
     Cards can be used is more than 19,000.  The bank has issued
     around 23 lakh cards to its customers.

   * The bank has also launched Internet Banking Services for
     retail as well as corporate customers and there are more
     than 1.40 lakh users of this service.  As a part of value
     addition to Internet Banking service, facilities like
     utility bill payment, booking of railway/air tickets,
     shopping over internet, funds transfer through RTGS to
     accounts in other banks, donations to specified
     organizations/funds, payment of taxes, subscription for
     books & magazines etc have been introduced.

H. Recognition

   * Golden Peacock National Training Award (winner in the large
     joint entry) for the third year in succession by the
     Institute of Directors, New Delhi.

   * Best IT Team of the Year Award by the Institute for
     Development and Research in Banking Technology, Hyderabad.

   * National Award for excellence in lending to tiny sector
     (First prize) by Ministry of Small Scale Industries.

   * The Banker, a London based magazine, ranked PNB at 248th
     place, amongst top 1000 banks in the world.  PNB improved
     its place from 368th rank last year, i.e. moving ahead by
     120 notches.

   * Standard & Poor's, a leading index provider rated PNB
     amongst 300 world class mid size companies, which are
     expected to emerge as challengers to the world's leading
     blue chip companies.

                  About Punjab National Bank

Headquartered in New Delhi, India, Punjab National Bank --
http://www.pnbindia.com/-- is a public-sector commercial bank
in India, offering banking products and services to corporate
and commercial, retail and agricultural customers.  The bank has
expanded its operations to provide products and services to over
36 million customers across India through more than 4,510
branches.  Its banking operations for corporate and commercial
customers include a range of products and services for large-
corporate customers, as well as for small- and middle-market
businesses and government entities.  It also caters to the
financing needs of the agricultural sector and other priority
sectors, including small-scale industries.  Its retail credit
products include home loans, personal loans and automobile
loans.  Through its subsidiaries and joint ventures, the Bank
deals in Indian government securities and provides housing
finance and asset-management services.

Fitch Ratings gave Punjab National Bank a 'D' individual rating
on June 1, 2005.


PUNJAB NATIONAL: CRISIL Assigns 'AAA' to Lower Tier II Bonds
------------------------------------------------------------
Credit Rating Information Services of India Limited gives these
ratings to Punjab National Bank's Tier II Bonds:

   * INR5 Billion Upper Tier II Bonds Issue:  AAA/Stable
     (Assigned);

   * INR5 Billion Lower Tier II Bonds Issue:  AAA/Stable
     (Reaffirmed); and

   * INR600 Million Lower Tier II Bonds Issue:  AAA/Stable
     (Reaffirmed).

The rating on Punjab National Bank's Upper Tier II Bond issue
reflects the high capitalization level and the flexibility to
raise further capital through a follow-on public issue.  The
overall capital adequacy ratio of the bank was 12.29% as on
June 30, 2006, of which 9.69% was on account of Tier I capital.

This gives adequate flexibility for the bank to meet additional
capital requirements to support expected credit growth through
issue of Upper and Lower Tier II bonds and perpetual bonds.  The
capitalization levels are further supported by healthy accretion
to net worth.  PNB also has the flexibility to raise additional
equity capital through a follow-on public issue.  The current
Government of India shareholding is 57.8%.

The ratings also reflect the bank's strong market position,
healthy resource profile and the comfort provided by its
majority ownership by the Government of India.  PNB is the
second largest public sector Indian bank in terms of the total
business (deposits plus advances) and third largest in terms of
asset size.  PNB has a relatively high proportion of low-cost
deposits (49% as on March 31, 2006) and relatively low deposit
costs of 4.14% for 2005-06 (refers to financial year, April 1 to
March 31) among Indian public sector banks.

PNB's credit profile also benefits from its large Tier I capital
base of INR89.24 billion and high Tier I ratio of 10.06% as on
March 31, 2006.  The core profitability of PNB is strong, marked
by a comfortable Net Profitability Margin 1 of 2.05% (based on
average balances).  These strengths are tempered to some extent
by the bank's average but improving asset quality.

PNB's asset quality is average, and continues to improve. Though
the bank's gross non performing assets at 4.10% were higher than
the banking system average (3.5%) as on March 31, 2006, they
have significantly improved from 5.97% as on March 31, 2005.

The high likelihood of systemic support in the event of stress
is a key factor that drives the ratings of several Indian public
sector banks, including Punjab National Bank.  CRISIL believes
that the probability of support is underpinned by the policy
role that the banking system plays, and the serious implications
of default by PSBs on the Indian economy and political system.
GoI's majority ownership of PSBs creates a moral obligation to
support the banks if the need arises.

                              Outlook

CRISIL believes that GoI's support, coupled with PNB's strong
market position and comfortable resources profile, will
significantly offset the challenges that the bank faces in terms
of improving its asset quality.  CRISIL also believes that PNB's
capitalization levels will continue to remain at comfortable
levels.

                          About the Bank

PNB, the second largest Indian public sector bank, has a share
in excess of 5% of the deposits, advances, and assets of all
scheduled commercial banks.  The bank had global deposits of
INR1,197 billion and a global advances portfolio of INR746
billion as on March 31, 2006.  PNB had an asset base of INR1,453
billion as on March 31, 2006.  It reported gross and net non
performing assets of 4.1% and 0.29% respectively as on March 31,
2006.  For year ended March 31, 2006, the bank reported a profit
after tax of INR14.39 billion (INR14.10 billion in the previous
year).

                          *     *     *

NPM is defined as interest spreads plus core fee income less
operating expenses. Interest spread is the difference between
interest yields on average assets deployed in 'carry' less
interest costs on average borrowings. CRISIL includes
depreciation as a part of operating expenses.

                          *     *     *

Fitch Ratings gave Punjab National Bank a 'D' individual rating
on June 1, 2005.


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

AFC ENTERPRISES: 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 restaurant sector, the rating agency revised
its Corporate Family Rating for AFC Enterprises Inc. from B1 to
B2.

Additionally, Moody's affirmed its B1 ratings on the company's
US$190 million Guaranteed Senior Secured Term Loan B Due 5/2011
and US$60 million Guaranteed Senior Secured Revolver Due 5/2010.
Moody's assigned the debentures an LGD3 rating suggesting
lenders will experience a 31% loss in the event of default.

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

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

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

AFC Enterprises Inc. -- http://www.afce.com/-- engages in the
development, operation, and franchising of quick-service
restaurants.  Its restaurants offer food and beverage products.
As of Dec. 25, 2005, the company operated 1,828 Popeyes
restaurants in the United States, Puerto Rico, Guam, and 24
foreign countries including Indonesia, Korea, Canada, Mexico &
Honduras.  AFC Enterprises was founded in 1972 and is
headquartered in Atlanta, Georgia.


ALCATEL SA: Earns EUR155 Million for Third Quarter 2006
-------------------------------------------------------
The Board of Directors of Alcatel S.A. reviewed and approved the
company's third quarter 2006 results.

Revenues were up by 1.4% at EUR3.335 billion compared with
EUR3.289 billion in the same period last year.  The gross margin
was 33.6%.

Operating profit amounted to EUR258 million, a 7.7% operating
margin.  Net income for the quarter was registered at EUR155
million or a diluted EPS of EUR0.11 per share (US$ 0.14 per
ADS), (EUR0.10 per share, excluding capital gains) which
compared with a diluted EPS in third quarter 2005 of EUR0.19
(EUR0.12 per share, excluding capital gains).

                      Fixed communications

Third quarter revenue increased by 6.3% to EUR1.363 billion
compared with EUR1.282 billion in the same period in 2005.  The
IP network transformation continued to drive revenues and a
strong performance was registered in the access, IP carrier
data, and the terrestrial optical businesses.

Operating profit amounted to EUR151 million, representing an
11.1% operating margin with significant contributions coming
from the access, IP data and optical businesses.

                      Mobile Communications

Third quarter revenue decreased by 9.0% to EUR994 million
compared with EUR1.092 billion in the same period last year.
Revenues slightly declined in the 2G mobile radio business
reflecting Alcatel's commercial selectivity in an aggressive
pricing environment.  The Chinese market continued to register
good growth, even following a strong first half, to meet
continued net subscriber growth.

Operating profit amounted to EUR64 million, representing a 6.4%
operating margin, reflecting, in part, continuing investments in
the NGN/IMS core, 3G, Mobile TV and WiMAX product offering as
well as a competitive pricing environment.

                     Private Communications

Third quarter revenue increased by 7.9% to EUR1,001 million
compared with EUR928 million in the same period in 2005.
Revenue performance was satisfactory across all business
divisions with a strong performance in the enterprise and in the
rail communication businesses and with good revenues also
registered in the satellite business.

Operating profit amounted to EUR50 million, representing a 5.0%
operating margin, with a satisfactory performance coming from
all businesses.

"The third quarter once again confirmed Alcatel's leading
position in the transformation of networks toward a high
bandwidth, full IP architecture providing enhanced triple play
services to end users and reducing operating costs for the
carriers," Serge Tchuruk, Chairman and CEO, summarized the
Board's observations.

"In the wireline sector, this translated into increasing
traction for our IP, access, optical and applications solutions
in the carrier and enterprise markets where Alcatel's revenues
(excluding the seasonal submarine activity) grew by over 10%.
The strong inroads of Alcatel in the IP routing market were
again highlighted by a near doubling of revenues over the same
period last year.  Likewise, terrestrial optics as well as
enterprise applications revenues grew by over 20% and 30%
respectively, with Alcatel's product portfolio clearly outpacing
competition.

"This strong performance was partially offset by a decline in
our wireless revenues, whose annualized growth had averaged 25%
in eight successive quarters, and where the evolution toward IP
technologies and new video services is still at an early stage.
In the emerging countries where the number of 2G greenfield
deployment projects is diminishing, we maintained our selective
commercial policy, deliberately abstaining from large contracts
where risks are high in the medium term.  Furthermore, while
most customers have indicated their strong support for our
strategic moves with Lucent and Nortel, the materialization of
our currently active 3G projects will only occur once these
transactions are closed.  We are continuing our strong focus on
investment in next generation technologies such as NGN, IMS, and
WiMAX to secure a leading position in future network builds.

"We continue to make good progress toward our pending merger
with Lucent Technologies and believe we will complete a
successful closing before the end of the year.  Both the Thales
transaction and our acquisition of Nortel's UMTS radio access
business are also on track and we maintain our objective of
nearly simultaneous closings before yearend. While these
strategic moves are currently putting pressure on Alcatel's
organization as well as additional costs in our P&L, we are
today more than ever convinced that they will generate value for
the company.  Our objective will not only be to hold the number
one position in wireline, but also to be one of the very few
strategic suppliers to Tier 1 wireless players, making us the
key player for the fixed, mobile, and enterprise convergence.

"As stated last quarter, the structure of the company will
significantly change in the coming quarter, therefore we will
not be providing company specific guidance at this time."

                          About Alcatel

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

                         *     *     *

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

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


BEARINGPOINT INC: Reports Results of Consent Solicitation
---------------------------------------------------------
BearingPoint, Inc., extended the expiration date for the consent
solicitation for amendments to and waivers under the indentures
governing its 2.50% Series A Convertible Subordinated Debentures
due 2024 (CUSIP No. 074002AA4) and 2.75% Series B Convertible
Subordinated Debentures due 2024 (CUSIP No. 074002AB2) until
5:00 p.m. New York City time on Oct. 27, 2006.

Holders of a majority of the outstanding aggregate principal
amount of the company's 5.00% Convertible Senior Subordinated
Debentures due 2025 (CUSIP No. 0074000AE0) have submitted
consents and the consent solicitation period with respect to the
5% Debentures has expired.

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

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

                          *     *     *

Moody's Investors Service confirmed the ratings for
BearingPoint, Inc.  The action concludes the review that began
on April 21, 2005 following the company's announcement that it
would delay the filing of its 2004 financials.  The rating
outlook is negative.

Ratings confirmed include:

   * Corporate Family Rating -- B1

   * US$250 million series A subordinated convertible bonds
     due 2024 -- B3

   * US$200 million series B subordinated convertible bonds
     due 2024 -- B3

   * US$1 billion multiple seniority
     shelf -- (P)Ba3/(P)B2/(P)B3/(P)Caa1


GNC CORP: Reports US$367.7MM Revenues for Quarter Ended Sept. 30
----------------------------------------------------------------
GNC Corp. reported consolidated revenues of US$367.7 million for
the quarter, a 14.0% increase over the same quarter in 2005. The
increase in revenues was primarily the result of significant
domestic comparable store sales growth of 11.7% for company-
owned stores and 7.0% for franchise locations.

For the quarter, GNC Corp. generated earnings before interest,
income taxes, depreciation and amortization of US$41.8 million
compared with US$25.5 million in the third quarter of 2005, a
64.1% increase.  The increase in EBITDA was primarily generated
by significant improvements in the retail and franchising
businesses driven by the growth in comparable store sales.
EBITDA for the third quarter of 2006 included a charge of
US$1.1 million associated with the loss on the pending sale of
the company's Australian manufacturing facility, which is
expected to close in the fourth quarter of 2006.  Excluding this
charge, Adjusted EBITDA would have been US$42.9 million in the
third quarter of 2006 compared with US$25.5 million in the same
quarter of 2005, a 68.3% increase.  In addition, EBITDA for the
third quarter of 2006 was reduced by US$0.7 million of non-cash
stock-based compensation expense.  There was no non-cash stock-
based compensation expense in the third quarter of 2005.

Net income for the third quarter of 2006 increased 336.8% to
US$13.9 million compared with US$3.2 million in the third
quarter of 2005.

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

For the nine months ended Sept. 30, 2006, consolidated revenue
increased by 14.6% to US$1,137.4 million from US$992.3 million
in the comparable period of 2005.  EBITDA for the nine months
ended Sept. 30, 2006 increased 41.6% to US$119.7 million from
US$84.5 million in the prior year period.  EBITDA for the nine
months ended Sept. 30, 2006 included a US$4.8 million
discretionary payment to GNC Corporation stock option holders in
conjunction with the previously reported March 2006 payments to
GNC Corp. common stockholders and a charge of US$1.1 million
associated with the loss on the sale of the company's Australian
manufacturing facility, which is expected to close in the fourth
quarter of 2006.  Excluding these charges, Adjusted EBITDA for
the nine months ended Sept. 30, 2006 would have been
US$125.6 million compared with US$84.5 million for the nine
months ended Sept. 30, 2005, a 48.6% increase.

EBITDA for the nine months ended Sept. 30, 2006, was reduced by
non-cash stock-based compensation expense of US$1.9 million.
There was no non-cash stock-based compensation expense in the
nine months ended Sept. 30, 2005.  EBITDA for the nine months
ended Sept. 30, 2005, included income of US$2.5 million from a
transaction fee received by the company as a result of
transferring its Australian franchise rights to an existing
franchisee.

Net income for the nine months ended Sept. 30, 2006, increased
194.8% to US$38.4 million compared with US$13.0 million in the
nine months ended Sept. 30, 2005.

For the nine months ended Sept. 30, 2006, GNC Corp. generated
cash from operating activities of US$68.9 million with ending
cash on the balance sheet of US$87.4 million.  For the nine
months ended Sept. 30, 2006, the company had capital
expenditures of US$16.1 million and repaid US$1.6 million of
outstanding debt.  At Sept. 30, 2006, the company had
US$471.8 million of total debt outstanding, with its revolving
credit facility undrawn.

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

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

                        *    *    *

Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' corporate credit rating, on Pittsburgh,
Pennsylvania-based General Nutrition Centers Inc.

The ratings are removed from CreditWatch, where they were placed
with positive implications on June 19, 2006.  S&P said the
outlook is stable.


GOODYEAR TIRE: 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. Automotive and Equipment sectors, the
rating agency confirmed its B1 Corporate Family Rating for The
Goodyear Tire & Rubber Company.  Additionally, Moody's revised
or held its probability-of-default ratings and assigned loss-
given-default ratings on these loans and bond debt obligations:

Issuer: The Goodyear Tire & Rubber Company

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   First Lien Credit
   Facility               Ba3      Ba1     LGD 2      10%

   Second Lien Term
   Loan                   B2       Ba3     LGD 3      35%

   Third Lien Secured
   Term Loan              B3       B2      LGD 4      63%

   11% Senior Secured
   Notes                  B3       B2      LGD 4      63%

   Floating Rate Senior
   Secured Notes          B3       B2      LGD 4      63%

   9% Senior Notes        B3       B2      LGD 4      63%

   6-5/8% Senior Notes    B3       B3      LGD 6      94%

   8-1/2% Senior Notes    B3       B3      LGD 6      94%

   6-3/8% Senior Notes    B3       B3      LGD 6      94%

   7-6/7% Senior Notes    B3       B3      LGD 6      94%

   7% Senior Notes        B3       B3      LGD 6      94%

   Senior Unsecured
   Convertible Notes      B3       B3      LGD 6      94%


Issuer: Goodyear Dunlop Tires Europe B.V.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Euro Revolving
   Credit Facilities      B1       Ba1     LGD 2      10%

   Euro Secured
   Term Loan              B1       Ba1     LGD 2      10%

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%).

The Goodyear Tire & Rubber Company (Goodyear) is a manufacturer
of tires and rubber products, engaging in operations in most
regions of the world.

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand.  Goodyear employs more than 80,000 people
worldwide.  The company's Asia Pacific headquarters is in
Shanghai, China.


INCO LIMITED: Moody's Confirms Ba1 Subordinate Bond Rating
----------------------------------------------------------
Moody's Investors Service downgraded Companhia Vale do Rio
Doce's local currency issuer rating to Baa3 from Baa1.  At the
same time, Moody's confirmed CVRD's Aaa.br National Scale
Rating, its Baa3 foreign currency rating and the Baa3 foreign
currency rating of its wholly owned subsidiary Vale Overseas
Ltd., guaranteed by CVRD.  The foreign currency rating reflects
Moody's piercing methodology.

Moody's also confirmed the Baa3 senior unsecured debt rating of
Inco Limited.  The rating outlooks for both companies are
stable.  These actions follow the announcement by CVRD that it
has acquired 75.7% of the shares of Inco and concludes Moody's
review of CVRD's ratings that was initiated on Aug. 11 and
Inco's on June 26.

On Oct. 24, CVRD announced that it has acquired 75.7% of the
shares of Inco, and has stated its intention to take steps to
acquire the remaining shares, which would bring the total
consideration value to US$18 billion.  Within 60 days of the
acquisition of 100% of the shares of Inco, CVRD plans to have
Inco provide an upstream guarantee to the lenders under CVRD's
US$18 billion bridge acquisition facilities.  CVRD intends to
refinance the bridge facilities in the long-term capital markets
at the CVRD level, without provision of an upstream guarantee
from Inco.

The downgrade of CVRD's local currency rating reflects the
significant additional debt being incurred to finance its
acquisition of Inco, with an absolute level of debt
approximating US$23 billion on a proforma basis.  The downgrade
also reflects challenges over CVRD's ability to integrate Inco
in a timely fashion from a number of perspectives: reporting
systems, cultural assimilation and achieving a common culture,
labor concerns, and project execution risk.  The rating also
captures CVRD's substantive capital expansion plans that may
hamper the planned deleveraging over the next 15 months, which
ability also relies on continued robust commodity prices
together with asset sales.

The rating however, acknowledges CVRD's leading global positions
in the iron ore and nickel markets, the improved breadth and
geographic scope of its business platform and its important
niche positions in bauxite, alumina, aluminum and logistics
(within Brazil).

The confirmation of Inco's Baa3 rating reflects the very strong
cash generating ability of the company given current nickel and
other metals prices, and Moody's expectation that metals prices,
while likely to moderate from current levels, will remain
sufficiently robust to permit Inco to continue to generate
strong cash flow before capital expenditures.  Moody's notes
that while the effective leverage of Inco will increase
substantially given the upstream guarantees provided to CVRD,
the Baa3 rating assumes that the guarantees will be eliminated
over the next few months with the planned refinancing of CVRD
bridge loan.

Inco's current financial position indicates a rating higher than
Baa3, however, the rating is constrained by uncertainty about
Inco's future financial policies given its ownership by CVRD,
including dividends that may be paid to CVRD, Inco's ongoing
capital structure, capital expenditure levels, and investments
that may be undertaken within Inco.  The rating also reflects
the continued difficulties at Goro, including cost pressures,
development delays and indigenous issues.

The stable outlook for the ratings of both companies reflect the
strong market positions and expanded market position in a number
of key minerals.  The outlook also incorporates Moody's
expectations for above average, albeit moderating, LME nickel
and copper prices as well as contracted iron ore prices over the
intermediate term.  An important component of the outlook is the
expectation that CVRD remain committed to reducing debt to more
manageable levels over the next fifteen months.

Downgrades:

Issuer: Companhia Vale do Rio Doce - CVRD

    * Issuer Rating, to Baa3 from Baa1

Outlook Actions:

Issuer: Companhia Vale do Rio Doce - CVRD

    * Outlook, Changed To Stable From Rating Under Review

Issuer: Inco Limited

    * Outlook, Changed To Stable From Rating Under Review

Issuer: Vale Overseas Ltd.

    * Outlook, Changed To Stable From Rating Under Review

Confirmations:

Issuer: Companhia Vale do Rio Doce - CVRD

    * Issuer Rating, Confirmed at Aaa.br

    * Senior Unsecured Shelf, Confirmed at (P)Baa3

Issuer: Inco Limited

    * Corporate Family Rating, Confirmed at Baa3

    * Subordinate Conv./Exch. Bond/Debenture, Confirmed at Ba1

    * Senior Unsecured Conv./Exch. Bond/Debenture, Confirmed
      at Baa3

    * Senior Unsecured Regular Bond/Debenture, Confirmed at Baa3

Issuer: Vale Overseas Ltd.

    * Senior Unsecured Regular Bond/Debenture, Confirmed at Baa3

    * Senior Unsecured Shelf, Confirmed at (P)Baa3

CVRD is the world's largest producer of iron ore, with an
estimated 32% of the global seaborne iron ore market.  CVRD also
has substantial interests in bauxite, alumina and aluminum,
copper concentrate, potash, logistics, including railroad,
shipping, and port handling operations in Brazil, and minority
interests in steel production.  Following the acquisition of
Inco, the second largest global nickel producer, CVRD now ranks
among the largest mining enterprises in the world. On a pro
forma basis for FY2005, CVRD had shipments of approximately 225
million tons of iron ore and 246,000 tons of nickel, generating
revenues of roughly US$17 billion.

Headquartered in Rio de Janeiro, Brazil, CVRD reported revenues
of US$12.8 billion in 2005.

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


INCO LTD: Inco Indonesia Shares Rise on Takeover News
-----------------------------------------------------
PT Inco Indonesia was sharply higher in midmorning
trade on market speculation that Companhia Vale do Rio Doce will
make a tender offer to buy the stock of its minority
shareholders after CVRD completed the acquisition of Inco's
parent company, Inco Ltd, Antara News reported on October 30,
citing unnamed dealers.

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 27, 2006, Companhia Vale do Rio Doce has indicated in a
news release that 174,623,019 common shares of Inco Ltd. have
been validly deposited to CVRD's offer to purchase for cash
all of the outstanding common shares of Inco.  CVRD has taken up
and accepted for payment all shares tendered, which represent
75.66% of the issued and outstanding Inco Ltd. common shares on
a fully diluted basis.

According to Antara, CVRD acquired 75.66% of Inco Ltd's shares
for US$16.8 billion.

Antara News says that at 11:07 a.m. on October 30, Inco
Indonesia was up IDR1,800, or 7.29%, at IDR26,500.

The report cites Indopremier analyst Suherman Santikno as saying
that investors believe the takeover is likely to be followed by
a tender offer for Inco Indonesia's minority shareholders.  He
added that the gain in the stock price is also the result of a
surge in the price of nickel in recent days.

On the London Metal Exchange, the price is now around US$31,000-
31,000 per ton compared to US$18,000 in June, Antara notes.

Mr. Santikno added that the stock also looks good on valuation
grounds.

"INCO Indonesia's price earnings ratio is currently at 8-9 times
(2006 prospective earnings), compared to 15-16 times for the
parent firm.  On a valuation basis, INCO Indonesia's share price
is far cheaper than its parent firm or other global mining
companies," Mr. Santikno was quoted by XFN-Asia as saying.

                          About Inco Ltd.

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

                          *     *     *

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


PERUSAHAAN GAS: 2006 Third Quarter Net Profit Jumps 266%
--------------------------------------------------------
PT Perusahaan Gas Negara disclosed that its net profit in the
third quarter of 2006 jumped 266% to IDR1.56 trillion from the
same period last year.

The jump in third-quarter net profit resulted from a 25%
increase in the company's income, Gas Negara's finance director,
Djoko Pramono, said.

"PGN's income in the third quarter of 2006 rose IDR1 trillion to
IDR4.9 trillion from IDR3.9 trillion in the same period last
year," Mr. Pramono said.

Operational profit in the 2006 third quarter rose 85% to
IDR2.06 trillion from IDR1.16 trillion in the third quarter last
year.

As of Sept 30, 2006, the company's total assets reached
IDR14.2 trillion, consisting of current assets worth
IDR3.08 trillion and fixed assets worth IDR11.15 trillion.

The assets represent a 13% increase from the same period last
year, Antara notes.

                   About Perusahaan Gas Negara

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

                          *     *     *

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

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

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

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

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

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


* Despite Reforms, Insolvency Regime Stays Weak, Fitch Says
-----------------------------------------------------------
In the first of a series of special reports published Oct. 31,
2006, Fitch Ratings notes that given the absence of any major
default since the 1998 Asian financial crisis, the revised
Bankruptcy Law 2004 in Indonesia remains untested and the lack
of recent case law makes it difficult to ascertain whether the
issues encountered with the original law have been overcome.

"Indonesia's legal regime has a poor historical track record for
security enforceability," said Siew Huey Loong, director in
Fitch's Asia-Pacific Corporate Ratings Group.  "Until a track
record is established, the agency can give only limited
weighting to any security when assigning instrument ratings and
will evaluate instruments issued by Indonesian corporates on a
case-by-case basis given the variables involved -- such as
structure, covenants, limitations and ring-fencing mechanisms."

The report entitled "Indonesia's Insolvency Regime and its
Impact on Recovery Ratings" examines how the revised insolvency
regime affects the rights of secured and unsecured creditors and
the issues faced by creditors in the event of default.  In
addition, the report outlines how Fitch incorporates these
factors into its assignment of ratings to instruments issued by
Indonesian corporates.

The report also examines the common structure of credit support
mechanisms applied in Indonesian high yield bonds, as well as
innovative credit enhancement features included in recent
issuances.  "Although Fitch notes that these serve to better
protect noteholders' interests and ensure that cash flow is
properly captured for debt servicing, the enforceability of
security in event of default remains uncertain due to the lack
of an established track record in the consistent application of
legal principles within the Indonesian legal system," Ms. Loong
added.

The publication of Fitch's report coincides with an increasing
number of Indonesian corporates returning to the capital markets
following their recovery from the Asian financial crisis.  This
recently improved level of capital market access has been
facilitated by a number of factors including an improved
political environment and macro stability as well as
strengthening credit profiles of the corporate universe
following significant deleveraging since the crisis.

The Indonesian insolvency regime is mainly governed by the
Bankruptcy Law, which was enacted in 1998 and subsequently
revised in 2004.  However, for the various reasons discussed in
the report, including lack of confidence in the judicial system
and creditors opting for out-of-court consensual restructuring
during the Asian financial crisis, many of these restructurings
have been very prolonged and have often resulted in debt
rescheduling rather than debt restructuring.

The special report is available on the agency's Web site at
http://www.fitchratings.com and is the first of a series of
reports that will review the insolvency regimes of certain
countries in the Asia-Pacific region.

                          *     *     *

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

Fitch gave Indonesia a BB- long-term foreign currency rating.
Indonesia carries Moody's 'B1' rating.


* Indonesia Set to Offer Billions in Infrastructure Projects
------------------------------------------------------------
Indonesia is set to offer billions of dollars worth of
infrastructure projects to investors this week "in a bid to
inject life into the weakening backbone of Southeast Asia's
largest economy," Antara News reports.

According to the report, regular power blackouts, crumbling
interstate highways, an overburdened phone network, crowded
ports and a groaning railway system have all contributed to
Indonesia's burgeoning infrastructure "nightmare."

The Government is putting up at least 30 projects during the
three-day meeting beginning Wednesday, of which 10 have been
designated "model" status and are ready to be executed within a
year, Antara notes.  These projects include three water supply
developments, two toll roads, a ferry terminal, a port and
several electricity projects.

Antara recounts that Jakarta held its first infrastructure
summit in January 2005 and solicited bids for 91 projects worth
US$22.5 billion.  However, only nine deals have since been
secured.

The report cites deputy coordinating minister for infrastructure
Suyono Dikun as telling a press briefing Monday that poor
preparation and legal uncertainty led to the small number but
insisted that the Government has since taken measures to improve
the investment climate.

The summit was originally slated for more than a year ago but
has been repeatedly delayed as the Government passed several
presidential decrees aimed at getting investors interested
again.

                          *     *     *

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

Fitch gave Indonesia a BB- long-term foreign currency rating.
Indonesia carries Moody's 'B1' rating.


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

ALBERTO-CULVER: Fourth Quarter 2006 Sales Reach US$974.3 Million
----------------------------------------------------------------
Alberto-Culver Co. reported that fourth quarter 2006 sales
increased 8.2% to US$974.3 million while pre-tax earnings
including non-core items increased 11.4% to US$101.1 million.
Net earnings including non-core items increased 11.7% to US$65.8
million.  Diluted net earnings per share were 70 cents in the
fourth quarter of 2006, after the deduction of 2 cents for stock
option expense and 2 cents for fees and expenses related to the
agreement with a company formed by a fund managed by Clayton,
Dubilier & Rice or CD&R to separate the company's consumer
products and Sally/BSG businesses.

Fiscal year 2005 fourth quarter diluted net earnings per share
were 63 cents after a 3 cent deduction for the non-cash charge
relating to the conversion to a single class of stock and a 1
cent deduction related to the terminated agreement with Regis
Corp.  The transaction involving CD&R and the terminated
agreement with Regis are referred to collectively herein as the
"Sally transactions."

Excluding non-core items, pre-tax earnings in the fourth quarter
increased 11.2% to US$106.3 million while net earnings were up
12.6% to US$70.0 million from US$62.2 million in the prior year.
Fourth quarter diluted net earnings per share were 74 cents
compared to 67 cents in 2005 excluding the non-core items.

Sales for the 2006 fiscal year grew by 6.8% to US$3.77 billion.
Including non-core items, pre-tax earnings for fiscal year 2006
decreased 5.0% to US$308.3 million while net earnings were lower
by 2.6% at US$205.3 million.  Diluted net earnings per share for
the year were US$2.20, after the deduction of 41 cents for
expenses related to the Sally transactions and 11 cents for
stock option expense, versus US$2.27 per share in the prior year
after a 10 cent deduction for the non-cash charge relating to
the conversion to a single class of stock and a 1 cent deduction
related to the Sally transactions.

Excluding non-core items, pre-tax earnings in fiscal year 2006
increased 12.5% to US$383.0 million and net earnings increased
14.8% to US$254.0 million from US$221.3 million in the prior
year. Diluted net earnings per share for the year improved to
US$2.72 from US$2.38 last year excluding the non-core items.

Commenting on the quarter and year, Alberto-Culver President and
Chief Executive Officer Howard Bernick said, "We are very
pleased today to report our fifteenth consecutive year of record
sales and record earnings for the Alberto-Culver Company.
During these past fifteen record years, our revenues have been
growing at a compound annual growth rate of 10.7% while our
operating earnings excluding non-core items have grown at a
14.7% compounded annual growth rate, a record that we are very
proud to have achieved."

Mr. Bernick continued, "Our consumer products group delivered
another strong quarter and year.  Led by Nexxus and TRESemme and
behind heavy advertising investments, the consumer group
finished the year with sales growth of 9.4% and operating
earnings growth of 11.3%."

Mr. Bernick went on to say, "Our Sally store business generated
solid top-line growth rates while expanding operating margins in
the year to an all time high of 13.1%.  Beauty Systems Group,
coming off a difficult fiscal year 2005, finished the year with
sales growth of 6.5% and operating earnings growth of 20.4%. The
company ended the quarter with 2,511 Sally stores in the U.S.,
Canada, Mexico, Puerto Rico, the U.K., Ireland, Germany and
Japan and our Beauty Systems Group had 828 stores and 1,192
professional distributor sales consultants at Sept. 30, 2006."

"Consolidated worldwide advertising and other marketing
expenditures invested behind our brands and businesses in 2006
increased by a healthy 17.4% to US$306 million from US$261
million in 2005," stated Mr. Bernick.

Mr. Bernick added, "As I reflect back on fiscal year 2006, I
find it to have been a transformational year for the Alberto-
Culver Company. In addition to producing another record year of
sales and earnings growth, we announced a strategic initiative
to separate our consumer products business and our Sally/BSG
distribution business into two independent public companies.
The main factor behind this decision was the elimination of
multi level channel conflicts that existed between the
businesses.  In the coming weeks, with shareholder approval and
the satisfaction of other closing conditions, we will complete
the separation and our shareholders will own 100% of the new
Alberto- Culver, a focused consumer products company, and 52.5%
of the new Sally/Beauty Systems Group, a leading beauty supply
distribution business, in addition to receiving US$25 in cash
for each share owned. Both new businesses have a solid
foundation in place to succeed and extremely capable management
teams.  We hope that all shareholders will continue to share in
the growth and prosperity of both businesses in the coming
years."

Carol L. Bernick, Alberto-Culver Company Chairman of the Board,
said, "I am very proud of our performance in this quarter and
fiscal year, another record sales and earnings year for the
Alberto-Culver Company. But beyond the numbers themselves, I am
proud of the commitment and focus they represent on the part of
both the consumer products and Sally Beauty teams.  During this
period, while a great deal of discussion and planning for the
next chapter in the company's history has taken place, all have
realized the importance of continuing to produce strong growth
for our businesses and responded to that imperative with these
excellent results."

Alberto-Culver also announced that in place of the regular 13
cent quarterly cash dividend, shareholders will instead receive
a US$25 per share special cash dividend (approximately US$2.4
billion) this quarter as part of the transaction separating the
company's businesses. The US$25 special cash dividend will be
paid shortly after the closing of the transaction to
shareholders of record on the closing date, which is expected to
occur in mid-November.  Following the completion of the
separation, new Alberto-Culver expects to pay a regular
quarterly dividend and plans to announce the next quarterly
dividend in late January, 2007, while new Sally/BSG does not
expect to pay a regular quarterly dividend at this time.

Albert-Culver had three non-core items impacting its financial
results in fiscal year 2006:

   -- stock option expense recorded in accordance with Statement
      of Financial Accounting Standards (SFAS) No. 123 (R);

   -- fees and expenses related to the Sally transactions; and

   -- a non-cash charge related to the company's conversion to
      one class of common stock.

In addition, the non-cash charge from the conversion to one
class of common stock and the Sally transactions also affected
fiscal year 2005.

Effective Oct. 1, 2005, Albert-Culver adopted SFAS No. 123 (R)
pertaining to the expensing of stock options.  As allowed by the
statement, the company elected not to restate its previously
issued financial statements and instead adopted SFAS No. 123 (R)
on a "modified prospective" basis.  The company recorded stock
option expense in the fourth quarter of fiscal year 2006 that
reduced pre-tax earnings by US$3.0 million (US$1.9 million after
tax) and basic and diluted net earnings per share by 2 cents.
For fiscal year 2006, stock option expense reduced pre-tax
earnings by US$15.9 million (US$10.3 million after tax) and
basic and diluted net earnings per share by 11 cents.  The stock
option expense recorded in fiscal year 2006 had no effect on the
operating profits or cash flows of the company's business
segments or on the consolidated cash flows of the company.

In connection with the proposed separation of consumer products
and Sally/BSG, Alberto-Culver incurred transaction expenses
which reduced fiscal year 2006 fourth quarter pre-tax earnings
and net earnings by US$2.2 million and basic and diluted net
earnings per share by 2 cents. For fiscal year 2006, transaction
expenses related to the terminated Sally spin/merge transaction
with Regis Corporation and the proposed separation of consumer
products and Sally/BSG reduced pre-tax earnings by US$58.8
million (US$38.3 million after tax), basic net earnings per
share by 42 cents and diluted net earnings per share by 41
cents.  The transaction expenses for the full year included a
US$50 million termination fee paid to Regis in the third quarter
of fiscal year 2006.

The company also incurred transaction expenses related to the
terminated Sally spin/merge with Regis in 2005 that reduced
fourth quarter and fiscal year 2005 pre-tax earnings by US$1.5
million (US$1.0 million after tax) and basic and diluted net
earnings per share by 1 cent.

Prior to the adoption of SFAS No. 123 (R), U.S. generally
accepted accounting principles required that the company record
a non-cash charge due to the re-measurement of the intrinsic
value of stock options affected by the November, 2003 conversion
to a single class of common stock.  GAAP did not allow Albert-
Culver to record the entire non-cash charge related to the share
conversion immediately when it took place during the fiscal 2004
first quarter.

In fiscal year 2005, the non-cash charge reduced pre-tax
earnings in the fourth quarter by US$3.4 million (US$2.2 million
after tax) and basic and diluted net earnings per share by 3
cents.  For fiscal year 2005, the non-cash charge reduced pre-
tax earnings by US$14.5 million (US$9.4 million after tax) and
basic and diluted net earnings per share by 10 cents.  Due to
the adoption of SFAS No. 123 (R) effective Oct. 1, 2005, the
amount of the non-cash charge impacting the fourth quarter and
fiscal year 2006 was nearly zero.  The non-cash charge relates
to a change in the capital structure of the company rather than
the normal operations of the company's core businesses and had
no effect on the operating profits or cash flows of the
company's business segments or on the consolidated cash flows of
the company.

Alberto-Culver Co. manufactures, distributes and markets leading
personal care products including Alberto VO5, St. Ives, TRESemme
and Nexxus in the United States and internationally.  Sally
Beauty Co. is the world's number one marketer of professional
beauty care products through its chain of domestic and
international Sally stores.  Beauty Systems Group is a network
of stores and professional sales consultants selling exclusive
professional beauty care brands such as Matrix, Redken, Paul
Mitchell, Wella, L'Oreal, Graham Webb and Sebastian exclusively
to salon owners, salon professionals and franchisees.

Sally Holdings, LLC will own the beauty retail operations and
the beauty distribution businesses currently owned by Alberto-
Culver Company.  Alberto-Culver is separating its consumer
products business from its Sally/BSG operations, into two
publicly traded companies.

New Sally, through intermediate holding company Sally Investment
Holdings, LLC, will own Sally Holdings.  Sally Holdings will own
the operating subsidiaries and Sally Capital Inc.

New Sally Holdings, Inc., headquartered in Denton, Texas, will
be a leading national retailer and distributor of beauty
supplies with operations under its Sally Beauty Supply and
Beauty Systems Group businesses.  For the fiscal year ended
Sept. 30, 2005, New Sally's revenues exceeded US$2.2 billion.
The company has stores in Canada, Mexico, Puerto Rico, the U.K.,
Ireland, Germany and Japan.

                        *    *    *

Moody's Investors Service assigned on Oct. 25, 2006, first time
ratings, including a corporate family rating of B2 and a
speculative grade liquidity rating of SGL-2, to Sally Holdings,
LLC.

The rating outlook is stable.  The ratings are conditional upon
review of final documentation.

These were the rating actions:

     -- Corporate family rating at B2

     -- Probability-of-default rating at B2

     -- US$400 million senior secured guaranteed bank revolving
        credit facility at Ba2 (LGD 1, 7% LGD rate)

     -- US$1.07 billion senior secured guaranteed term loans at
        B2 (LGD 4, 50% LGD rate)

     -- US$430 million senior unsecured guaranteed notes at B2
        (LGD 4, 55% LGD rate)

     -- US$280 million unsecured senior subordinated guaranteed
        notes at Caa1 (LGD 6, 93% LGD rate)

     -- Speculative Grade Liquidity Rating of SGL-2


ALIMENTATION: Moody's Assigns Loss-Given-Default Ratings
--------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its Ba1 Corporate Family Rating for
Alimentation Couche-Tard, Inc.

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
   ----------           -------  -------  ------   ----------
   CDNUS$50MM Sr.
   Sec. Revolver        Ba1      Ba1      LGD3     47%

   US$75MM Sr.
   Sec. Revolver        Ba1      Ba1      LGD3     47%

   US$265MM Sr. Sec.
   Term Loan A          Ba1      Ba1      LGD3     47%

   US$245MM Sr. Sec.
   Term Loan B          Ba1      Ba1      LGD3     47%

   US$350MM 7.5% Gtd.
   Sr. Sub. Notes       Ba2      Ba2      LGD5     81%

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 Laval, Quebec, Alimentation Couche-Tard, Inc.,
-- http://www.couche-tard.qc.ca/-- operates or licenses about
3,500 convenience stores in the  United States and Canada under
the "Circle K", "Couche-Tard", "Mac's", and other banners.  The
company also licenses around 4,200 "Circle K" convenience stores
in Mexico and Japan.


FORD MOTOR: DBRS Comments on 3Q Results & May Cut Ratings
---------------------------------------------------------
Dominion Bond Rating Service notes that Ford Motor Company
reported that it plans to restate previous financial results
from 2001 through to the second quarter of 2006 to correct the
accounting for certain derivative transactions under Statement
of Financial Accounting Standards 133.

DBRS believes that the restatements will not have a material
impact on the financial profile of the company and, hence,
does not warrant any rating actions at this time.  Although the
restatements would affect the net income reported in those
periods, the transactions are non-cash and the restatements, on
a net basis, are not expected to have a notable impact on the
Company's financial position.  More importantly, the
restatements do not affect the availability of the majority of
the company's committed credit facilities.  As at the end of
Sept. 30, 2006, the company has about US$6 billion of
contractually committed credit facilities with financial
institutions.

DBRS notes that the accounting error occurred at Ford Motor
Credit Company, Ford's wholly owned finance subsidiary.  Ford
Credit had incorrectly accounted for certain interest rate swaps
which it used to hedge against the interest rate risk inherent
in certain long-term fixed rate debt.  Ford has indicated that
the restatements will have no impact on the company's cash.  The
restatements will affect the company's preliminary financial
results for the 2006 third quarter announced today and will
improve the company's results in 2002 materially.

However, the impact of the restatements on the other affected
periods cannot be determined at this time.  Ford expects to
finalize the restatement amounts by the time of the filing of
the Quarterly Reports on Form 10-Q for the quarter ended
Sept. 30, 2006, usually within 45 days after the period end.
DBRS expects the company to file its restated statements to
compile statutory requirements.  However, if the company is not
able to file its restated financial statement on time, DBRS will
assess the situation and will take appropriate rating actions at
that time.

In addition, DBRS notes that, during a discussion of the third
quarter results, the company has indicated that it may tap the
secured market in the future.  If the company were to issue
secured debt, DBRS, in accordance with policy, would assign the
most senior rating of Ford, which is currently B with a Negative
trend, to the secured debt.

Consequently, the ratings of the unsecured debts of Ford would
be lowered by at least one notch to B (low) with a Negative
trend.  Additionally, the unsecured debt ratings of Ford Motor
Credit Company and Ford Credit Canada Limited would be lowered
accordingly to maintain the one rating differential between the
credit company and the parent company.

DBRS notes that the weak third quarter results announced by
Ford today are in line with expectations.  Although the costs
associated with accelerating the "Way Forward" plan are higher
than anticipated, DBRS believes that the company should have
sufficient liquidity on hand to fund the initiatives as well as
ongoing operating needs.  However, the company continues to face
significant headwinds to turn itself around.

In addition, the company has much less financial flexibility
going forward due to a shrinking cash position from expected
negative cash flow from operations through 2008 and cash outlays
related to the restructuring initiatives.  DBRS believes that
the company may face liquidity problems if there are delays or
problems in executing the "Way Forward" plan.  Hence, DBRS may
take rating action if progress in cost reduction is stalled or
the new products fail to support the company's effort to achieve
the market share target.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

The Company has operations in Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 24, 2006,
Standard & Poor's Ratings Services placed its 'B' senior
unsecured debt issue ratings on Ford Motor Co. on CreditWatch
with negative implications.  At the same time, S&P affirmed all
other ratings on Ford, Ford Motor Credit Co., and related
entities, except the rating on Ford Motor Co. Capital Trust II
6.5% cumulative convertible trust preferred securities, which
was lowered to 'CCC-' from 'CCC.'

At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3'
senior unsecured debt on Rating Watch Negative reflecting Ford's
intent to raise secured financing that would impair the position
of unsecured debt holders.  Under Fitch's recovery rating
scenario it was estimated that unsecured holders would recover
approximately 68% in a bankruptcy scenario, equating to a
Recovery Rating of 'RR3' (50-70% recovery).

Moody's Investors Service has disclosed that Ford's very weak
third quarter performance, with automotive operations generating
a pre-tax loss of US$1.8 billion and a negative operating cash
flow of US$3 billion, was consistent with the expectations which
led to the September 19 downgrade of the company's long-term
rating to B3.


FORD MOTOR: To Rely on Cheaper Chinese-Made Parts to Cut Costs
--------------------------------------------------------------
Ford Motor Company aims to purchase between US$2.5 and US$3
billion in auto parts from China this year, almost double the
US$1.6 to US$1.7 billion it spent on Chinese-made parts in 2005,
Eugene Tang and Stephen Engle at Bloomberg News reports.

William Ford Jr., Ford's chairman, said the company is buying
more parts from China to further cut costs.  According to
Bloomberg News, components procured from China include steering
systems, suspension, brakes, batteries and windshield glass.

In an interview in Beijing, Bloomberg News relates Mr. Ford's
declaration of China as a key component in Ford's global
sourcing strategy.  Mr. Ford said that Ford intends to buy more
Chinese parts as the quality of the country's manufacturing
industry improves.  Mr. Ford was recently in China to recognize
the awardees for the seventh annual Ford Motor Conservation &
Environmental Grants (China).

As reported in the Troubled Company Reporter on Oct, 25, Ford
posted a third quarter net loss of US$5.8 billion, compared with
a US$284 million net loss in the 2005 third quarter.  Ford
disclosed its performance in the current third quarter reflected
operating challenges in its North America, Asia Pacific and
Africa, and Premier Automotive Group operations.

In September this year, Ford unveiled a revised version of its
"Way Forward" turnaround plan.  The company expects ongoing
annual operating cost reductions of approximately US$5 billion
from its restructuring efforts.  Ford's actions have included
buyout offers for all 75,000 of its U.S. hourly workers, a 30%
reduction in salaried staff, and the suspension of quarterly
dividends.  The revised plan will also cut fourth-quarter
production by 21% -- or 168,000 units -- compared with the
fourth quarter a year ago, and reduce third-quarter production
by approximately 20,000 units.

                        About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

The company has operations in Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 24, 2006,
Standard & Poor's Ratings Services placed its 'B' senior
unsecured debt issue ratings on Ford Motor Co. on CreditWatch
with negative implications.  At the same time, S&P affirmed all
other ratings on Ford, Ford Motor Credit Co., and related
entities, except the rating on Ford Motor Co. Capital Trust II
6.5% cumulative convertible trust preferred securities, which
was lowered to 'CCC-' from 'CCC.'

At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3'
senior unsecured debt on Rating Watch Negative reflecting Ford's
intent to raise secured financing that would impair the position
of unsecured debt holders.  Under Fitch's recovery rating
scenario it was estimated that unsecured holders would recover
approximately 68% in a bankruptcy scenario, equating to a
Recovery Rating of 'RR3' (50-70% recovery).

Moody's Investors Service has disclosed that Ford's very weak
third quarter performance, with automotive operations generating
a pre-tax loss of US$1.8 billion and a negative operating cash
flow of US$3 billion, was consistent with the expectations which
led to the September 19 downgrade of the company's long-term
rating to B3.


SOFTBANK CORP: FTC Examines "Misleading" Sales Campaigns
--------------------------------------------------------
Japan's Fair Trade Commission is examining whether sales
campaigns launched by Softbank Corp. are misleading to
consumers, Reuters reports, citing the Sankei newspaper.

When asked about the report, Softbank said that their executives
met with the regulators in their mobile unit and was then asked
for explanations of their new discounts and sales tactics,
without elaborating further, the report notes.

Reuters says that Softbank's new discounts are complex to
understand and that the company, which is a newcomer in Japan's
cellphone industry, may be in violation of mislabeling and
telecommunications service law.

Sankei newspaper added that the regulators are also concerned
with Softbank's advertisements, which highlighted the catch
phrase "Zero-yen calls and emails," but listed the conditions
and restrictions in small print.

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

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

                          *     *     *

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

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


TOKYO STEEL: Moody's Upgrades Issuer Rating to Baa3 from Ba1
------------------------------------------------------------
Moody's Investors Service has upgraded the issuer rating of
Tokyo Steel Manufacturing Co., Ltd., to Baa3 from Ba1.  The
upgrade reflects Moody's expectation that the company will
appropriately manage its capacity expansion and maintain its
strong balance sheet while adapting its production capability to
the demand from various industry sectors in the domestic market.
The upgrade also considers the positive effects of Tokyo Steel's
new manufacturing facilities on future cash flow as it enhances
production capacity and diversifies product portfolio.  The
rating outlook is stable.  This rating action concludes the
review initiated on August 15, 2006.

Tokyo Steel plans to strengthen its flat steel production
capacity through investment in new production facilities,
including a steel-plate production line at its Kyushu Plant --
expected to start operation in early 2007 -- and a new plant in
Aichi Prefecture that is expected to start operation in 2009.
Planned production capacity for the new plant in Aichi is 2.5
million tons per annum, which is significant compared to the
company's about 3.1 million tons of sales for FYE3/2006, and
total investment in the plant -- including land -- will be about
JPY122 billion.  Nonetheless, Moody's considers that Tokyo
Steel's current cash holding -- about JPY145.3 billion as of
September 2006 -- will be sufficient to execute the investment
without significantly compromising its debt-free balance sheet.


Moreover, additional capacity in steel plate and improving
technological capabilities should allow Tokyo Steel to widen its
end-users to such industries as shipbuilding, autoparts and
machinery and increase its ability to adjust production mix,
reducing its current dependence on steel beams and steel bars,
which are mainly used in construction.  The new facilities will
also likely increase the company's cost competitiveness against
imported steel products from other Asian markets, whose
influence over the Japanese market is expected to increase.
Moody's believes that such changes should help increase Tokyo
Steel's cash flow generation capability in the intermediate
term.

However, as a mini-mill producer that depends on scrap steel as
its major input, Tokyo Steel will continue to have profitability
affected by increasing fluctuation in the scrap steel price,
which is in turn increasingly influenced by supply/demand
situations in other Asian markets led by China and its expanding
production capacity.  While Moody's expects that Tokyo Steel's
ability to promptly adjust product offerings and its improvement
in cost base will help temper such negative influences, the
rating agency also anticipates that the company's conservative
financial policy will continue to be an important credit factor,
considering the increasing overseas influence in the future.

Tokyo Steel Manufacturing Co., Ltd., headquartered in Tokyo, is
Japan's largest electric-arc-furnace steelmaker and the top
producer of H-beams in the country.


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

DAEWOO ELECTRONICS: RHJ Confirms Joint Buy with Videocon
--------------------------------------------------------
RHJ International SA confirms that, together with Videocon
Industries Ltd, it has entered into a non-binding Memorandum of
Understanding dated October 20, 2006, with Woori Bank, acting as
the principal bank of the Creditor Financial Institutions
Committee for Daewoo Electronics Corporation for the proposed
purchase of the equity and debt interest of the CFIC in Daewoo.

According to the terms of the MOU, the proposed aggregate
consideration for the purchase of the shares and the claims is
approximately KRW700,000,000,000, subject to adjustments.  The
current expectation among RHJI and Videocon Industries is that
each would own approximately one-half of the consortium.

The completion of the transaction is subject to various
conditions, among others:

   -- the execution of definitive agreement;

   -- completion of due diligence;

   -- corporate approvals by the buyers; and

   -- the approval of the Korean authorities including the Fair
      Trade Commission.

RHJI intends to have no further comment until a definitive
agreement is reached or the negotiations are terminated.

                     About RHJ International

RHJ International is a limited liability company organized under
the laws of Belgium, having its registered office at Avenue
Louise 326, 1050 Brussels, Belgium.  It is a diversified holding
company focused on creating long-term value for its shareholders
by acquiring and operating businesses in attractive industries
in Japan and elsewhere.

                    About Daewoo Electronics

Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation
-- http://www.dwe.co.kr/-- is the third largest Korean consumer
electronics company.  It manufactures and sells a variety of
products including televisions, DVD players, refrigerators, air
conditioners, washing machines, microwaves, vacuum cleaners and
car audio systems in over 105 countries.

The Troubled Company Reporter - Asia Pacific reported on
November 14, 2005, that creditors of Daewoo Electronics have
placed the firm for sale for US$1 billion.  ABN Amro,
PricewaterhouseCoopers and Woori Bank were appointed to find a
buyer for the business.

According to the TCR-AP, Daewoo Electronics has been under a
debt workout program since January 2000, months after its parent
group -- the Daewoo Group -- collapsed under debts of nearly
US$80 billion in 1999.

Daewoo Electronics Corp. posted a KRW94-billion loss in 2005
after sales declined 6.4%.  The net loss compares with the
KRW30-billion profit the company posted in 2004.  Sales fell to
KRW2.2 trillion from KRW2.3 trillion in 2004.


KOOKMIN BANK: Third Quarter 2006 Net Profit Drops 28%
-----------------------------------------------------
On October 30, 2006, Kookmin Bank held an earnings conference
and released its operating results for the third quarter of
2006.

For the quarter ended September 30, 2006, Kookmin posted a net
profit of KRW678 billion, a 28% drop from the KRW939 billion
earned for the corresponding period last year.

The September 2006 net profit figure is lower than average
forecast of KRW744.2 billion from eight analysts surveyed by Dow
Jones Newswires, Shin Jung-Won of Dow Jones points out.  The
figure is also down 13% from the KRW777 billion for the quarter
ended June 30, 2006.

Dow Jones attributes the larger-than-expected drop in quarterly
profits to falling margins and lack of non-operating giants the
company enjoyed in the year-earlier period.

For the September 2006 quarter, Kookmin recorded
KRW1.868 trillion in gross revenues, just a slight change from
the KRW1.899 trillion for the September 2005 quarter.

Kookmin's expenses for the third quarter of 2006, however,
swelled.

General and administrative expenses increased by 29% from KRW630
billion for the September 2005 quarter to KRW811 billion for the
September 2006 quarter.   Provisioning expenses bloated by 64%
to KRW215 billion for the third quarter of 2006, from the KRW131
billion from the corresponding period last year.

Citing analysts, Dow Jones says the Bank's bottom-line isn't
likely to recover substantially in the next quarter because its
net interest margins may continue to narrow, albeit at a slower
pace, in the coming months.  NIM is a key indicator of banks'
profitability, Dow Jones explains.

                       About Kookmin Bank

Kookmin Bank -- http://inf.kbstar.com/-- provides various
commercial banking services, such as deposits, credit cards,
trust funds, foreign exchange transactions, and corporate
finance.  The bank also offers Internet banking services.

                          *     *     *

Moody's Investors Service gave Kookmin Bank a Bank Financial
Strength rating of D+ effective March 27, 2006.

Fitch Ratings gave the bank a B/C rating.


NOVELIS INC: Declares Quarterly Dividend of US$0.01 Per Share
-------------------------------------------------------------
Novelis Inc. declared a quarterly dividend of US$0.01 per share
on its outstanding common stock, payable on Dec. 20, 2006, to
shareholders of record at the close of business on Nov. 20,
2006.

There are approximately 74 million common shares of Novelis Inc.
stock outstanding.

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.  In Asia, the company has
operations in Malaysia and Korea.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reports that 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
   ----------           -------  -------  ------   ----------
   $500 Million
   Guaranteed
   Senior Secured
   Revolving Credit
   Facility               Ba3      Ba2     LGD2       24%

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

   $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
   ----------           -------  -------  ------   ----------
   $543 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%


PUSAN BANK: Third Quarter Net Income Down 7.5% to KRW50.5 Bil.
--------------------------------------------------------------
For the quarter ended September 30, 2006, Pusan Bank recorded
KRW50.5 billion in net income, a 7.5% decrease from the
KRW54.6 billion for the quarter ended September 30, 2005.
Compared to the quarter ended June 30, 2006, the September 2006
net income figure dropped by 18.5%.

Pusan Bank's total net interest income slightly increased from
KRW150 billion for the September 2005 quarter to
KRW151.5 billion to the quarter under review.

As of September 30, 2006, the Bank has total assets of
KRW22.158 trillion, an 11.6% increase from KRW19.871 trillion a
year ago.

Pusan Bank -- http://www.pusanbank.co.kr/-- provides retail
banking services including telephone banking, savings deposits,
personal and business loans, credit card financing, foreign
currency exchanges, and wire transfer services.  The bank mainly
serves Pusan metropolitan area through its network of branches.

                          *     *     *

Moody's Investors Service gave Pusan Bank a 'D' Bank Financial
Strength Rating effective on March 30, 2006.

Fitch Ratings gave Pusan Bank an Individual Rating of 'B/C'
effective on September 6, 2005.


* Korean Govt. Recovers KRW80 Trilion from Restructuring
--------------------------------------------------------
The Government recouped KRW80.1 trillion of KRW168.5 trillion in
public funds, which were offered for restructuring in the
financial sector from November 1997 to September 2006, the
Republic of Korea's Ministry of Finance says in a press release.

As of the end of September 2006, the collection rate remained
unchanged at 47.5% from the previous month.  It stood at 42.6%
in 2004 and 45.3% in 2005.

In September, the government injected KRW199.3 billion in public
funds including KRW194.5 billion for asset purchase according to
the agreement signed at the time of the sale of Hyundai
Securities and KRW4.1 billion to make up for net asset shortage
resulting from acquisition of insolvent financial institutions
by savings banks.  The injection of public funds is limited to
cases in which certain financial institutions were designated as
insolvent for the reasons uncovered before the end of 2002.

In terms of collection, a total of KRW149.5 billion was
recovered.  Korea Deposit Insurance Corporation received KRW48.1
billion as the preferred subscription certificate of National
Agricultural Cooperative Federation.  KDIC received KRW11.3
billion of the bankruptcy estate dividends from some bankrupt
foundations of which KRW1.2 billion from cash management
accounts and KRW10.1 billion from credit union accounts as
dividends.

KDIC also recouped KRW8.3 billion of litigation-related
contributions to the Korea Investment & Securities.  The Korea
Asset Management Corporation received KRW79.8 billion from the
sale of non-performing loans.

Government-guaranteed deposit insurance fund bonds of KRW19.8
trillion (principal basis) with maturity from January to
September 2006 were recovered, of which KRW10.9 trillion from
the government contribution, 2.9 trillion from refinancing and
others from redemption fund.


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

BARCO MANAGEMENT: Liquidation Petition Hearing Set on Nov. 13
-------------------------------------------------------------
The High Court of Wellington will hear a liquidation petition
filed against Barco Management Ltd on November 13, 2006, at
10:00 a.m.

The Mill Liquorsave Ltd filed the petition with the Court on
October 10, 2006.

The Solicitor for the Petitioner can be reached at:

         Dianne S. Lester
         Credit Consultants Debt Services NZ Limited
         Level Three, 3-9 Church Street
         (P.O. Box 213 or D.X. S.X. 10 069), Wellington
         New Zealand
         Telephone:(04) 470 5972


COTTLE & RIMMER: Creditors' Proofs of Claim Due on November 20
--------------------------------------------------------------
On October 9, 2006, shareholders of Cottle & Rimmer Ltd passed a
special resolution to appoint Curtis John Mountfort as
liquidator.

Accordingly, Mr. Mountfort fixed November 20, 2006, as the last
day for the Company's creditors to prove their claims.

The Liquidator can be reached at:

         Curtis John Mountfort
         Mountfort & Associates
         Chartered Accountants
         P.O. Box 82-161, Auckland
         New Zealand
         Telephone:(09) 272 2241
         Facsimile:(09) 272 2251


FLEXIBLE CEILINGS: Faces Liquidation Proceedings
------------------------------------------------
The hearing of a liquidation petition filed against Flexible
Ceilings Ltd will be heard before the High Court of Auckland on
November 16, 2006, at 10:45 a.m.

Accident Compensation Corporation filed the petition on July 17,
2006.

The Solicitor for the Petitioner can be reached at:

         Dianne S. Lester
         Maude & Miller
         Second Floor, McDonald's Building
         Cobham Court (P.O. Box 50-555 or D.X. S.P. 32-505)
         Porirua City
         New Zealand


FULL HOUSE: Liquidation Hearing Slated for November 9
-----------------------------------------------------
On August 15, 2006, the Commissioner of Inland Revenue filed a
liquidation petition before the High Court of Auckland against
Full House Ltd.

The petition will be heard on November 9, 2006, at 10:00 a.m.

The Solicitor for the Petitioner can be reached at:

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


GEOFF ELLIS: Creditors Must Prove Debts by November 13
------------------------------------------------------
On October 10, 2006, shareholders of Geoff Ellis Ltd passed a
special resolution to liquidate the company's business and
appoint Stephen Rex Tietjens and Andrew John McKay as joint and
several liquidators.

The Joint Liquidators require creditors to prove their debts by
November 13, 2006.  Failure to present proofs of debt will
exclude a creditor from sharing in any distribution the Company
will make.

The Joint Liquidators can be reached at:

         Stephen Rex Tietjens
         Andrew John McKay
         Level Three, 115 Queen Street
         (P.O. Box 532), Auckland
         New Zealand
         Telephone:(09) 358 1230
         Facsimile:(09) 358 3646


HANABAR HOLDINGS: Enters Liquidation Proceedings
------------------------------------------------
On October 10, 2006, shareholders of Hanabar Holdings Ltd
resolved to liquidate company's business and appoint Alison Ann
Turner as liquidator.

The Liquidator can be reached at:

         Alison Ann Turner
         Staples Rodway Taranaki Limited
         P.O. Box 146, New Plymouth
         New Zealand
         Telephone:(06) 758 0956
         Facsimile:(06) 757 5081


INFRATIL LTD: Increases TrustPower Shareholding
-----------------------------------------------
Infratil has entered into a conditional agreement with Alliant
Energy Corporation to purchase all the shares in Alliant Energy
New Zealand Limited for cash consideration of approximately
NZ$445 million.  The principal assets of AENZ are a 23.77%
shareholding in TrustPower Limited and 5.07% shareholding in
Infratil.  As a result Infratil will own over 50% of TrustPower.

The implied price for the purchase of the 5.07% of Infratil and
for the 23.77% of TrustPower is approximately NZ$510 million,
with AENZ's net debt being approximately NZ$65 million.

Settlement is scheduled for December 29, 2006, after anticipated
Infratil and TrustPower shareholder approvals.

Infratil proposes to retain a minimum of 15% of TrustPower
through ownership of AENZ on an ongoing basis, providing in
aggregate a total holding of over 50% of TrustPower.

Infratil expects to see some increase in the free float of
TrustPower shares in early 2007 associated with a market sell
down of approximately 4% of TrustPower.

TrustPower is a successful and fully sustainable renewables
generator, which is also integrated fully into the retail value
chain.  TrustPower is New Zealand's best performing energy
retail business.  Infratil continues to be committed to the
renewables sector, a space which it believes will provide, over
the medium and long term, superior investment opportunities and
returns.

David Newman, Chairman of Infratil says, "Infratil is delighted
to have acquired the AENZ shares from Alliant enabling the
Company to consolidate its position at TrustPower.  Alliant and
Infratil have worked closely together since 1999 and this
acquisition marks the end of a successful and harmonious
relationship for both companies.  TrustPower has been a key
investment for Infratil since 1994 and Infratil believes that it
will continue to be an exceptional performer.  As a renewables
generator it will also benefit from the global drivers
associated with climate change, as these forces work their way
into Government policies."

Lloyd Morrison, Infratil's Chief Executive, says, "while the
acquisition is debt financed, the strategic nature of holding
over 50% allows Infratil to consolidate TrustPower's financial
performance and cash flows into its accounts.  The increased
shareholding provides Infratil with high confidence in the
TrustPower dividend flow.  Infratil debt levels must be viewed
in the context of the very strong balance sheet of TrustPower
and Infratil's other subsidiaries."

Following Alliant's exit, the Tauranga Energy Consumer Trust and
Infratil will be the two main shareholders at TrustPower jointly
holding approximately 80% of the shares.

Infratil and the Trust have cooperated toward the common goal of
ensuring ongoing stability of the TrustPower register and to
consolidate their TrustPower holdings on the best possible
terms.
Mr. Morrison further says, "we believe Infratil has been able to
move to 50% on very acceptable terms.  Infratil is also very
comfortable that the Trust has also benefited from this joint
effort."

The Trust and Infratil have both been keen to see that
TrustPower continues to enjoy strong shareholder support and
that it has the capability to invest to ensure New Zealand can
meet its electricity requirements from sustainable renewable
resources.  The stable shareholding base and the experience
Infratil brings to TrustPower's Board through Mr. Morrison and
Dr. Bruce Harker have been important in supporting TrustPower's
management team to drive performance and returns for the benefit
of all shareholders.

Infratil has also entered into an agreement with the Trust that
provides an option for the Trust to purchase up to 14 million
TrustPower shares at NZ$5.90 per share, an option to purchase up
to 10.95 million Infratil shares at market price and provides
for Infratil to support three changes to the TrustPower
constitution. These are to confirm a Tauranga base for
TrustPower, provide a right to appoint one director to a 25%
shareholder (the Trust currently holds over 25% of TrustPower)
and provides a limit on TrustPower's debt gearing, subject
always to the ability to distribute each year's net profit after
tax as dividends.  Should the Trust not exercise these purchase
options, Infratil intends to place these shares in the market.
Infratil does not intend to permanently buyback the 5.07% of its
own shares.

Infratil welcomes the continuation of the Trust's contribution
to the Board of TrustPower (the Trust's chairman Michael Cooney
is already on the Board).  Along with the Trust it shares a
strong commitment to a Tauranga base and the maintenance of
financial capability for investment and expansion by TrustPower.

                       About TrustPower

TrustPower Limited -- http://www.trustpower.co/-- owns and
operates 34 power stations and produces electricity exclusively
from renewable sources.  The company's power stations produce
enough electricity for 260,000 Kiwi households.

With assets of close to NZ$1.4 Billion, TrustPower is majority
New Zealand owned and is listed on the New Zealand stock
exchange.  TrustPower's head office is in Tauranga, with
regional offices in Auckland, Wellington, and Christchurch.

                         About Infratil

Infratil Limited -- http://www.infratil.com/-- is a specialist
investor in infrastructure and utility assets.  The Company is
listed on the New Zealand Exchange and owns airports in New
Zealand and Europe as well as electricity, waste to energy and
port investments in New Zealand and Australia.

Infratil is a long-term investor and is an active, added-value
shareholder in assets or companies it invests in.  Infratil is
managed by HRL Morrison & Co Limited, which both identifies and
evaluates investment opportunities on Infratil's behalf and then
manages those investments to realize their potential.  Morrison
& Co operates from offices in Wellington (New Zealand), Brisbane
(Australia) and Berlin (Germany).

                         *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Oct. 24, 2006, that Infratil's price for its bond with a coupon
rate of 8.5% and maturity date of November 15, 2015, traded at
8 cents on the dollar.


KOTARE HII: Court Sets Liquidation Hearing on November 20
---------------------------------------------------------
The Chief Executive of the Ministry of Fisheries at Wellington
filed a liquidation petition against Kotare Hii Ika Ltd before
the High Court of Whangarei on July 31, 2006.

The petition will be heard on November 20, 2006, at 10:45 a.m.

The Solicitor for the Petitioner can be reached at:

         Dianne S. Lester
         Credit Consultants Debt Services NZ Limited
         Level Three, 3-9 Church Street
         (P.O. Box 213 or D.X. S.X. 10 069), Wellington
         New Zealand
         Telephone:(04) 470 5972


MAU'U'S TYRES: Court Sets Date to Hear Liquidation Petition
-----------------------------------------------------------
A liquidation petition filed against Mau'u's Tyres Ltd will be
heard before the High Court of Auckland on November 9, 2006, at
10:00 a.m.

The Commissioner of Inland Revenue filed the petition on
August 3, 2006.

The Solicitor for the Petitioner can be reached at:

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


PACIFIC PRECAST: Names Terence Hillson as Liquidator
----------------------------------------------------
On October 11, 2006, Terence Hillson was appointed as liquidator
of Pacific Precast (Paeroa) Ltd pursuant to a special resolution
passed in terms of the Companies Act 1993.

Liquidator Hillson required creditors' proofs of claim to be
filed by November 10, 2006.  Failure to present proofs will
exclude a creditor from sharing in any distribution the Company
will make.

The Liquidator can be reached at:

         Terence Hillson
         Chartered Accountant
         Level Twenty, ASB Bank Centre
         135 Albert Street (P.O. Box 1240)
         Auckland
         New Zealand
         Telephone:(09) 355 7272
         Facsimile:(09) 355 7273
         Mobile: 027 280 5580


PAPAROA BLOCK: Court to Hear Liquidation Petition on November 9
---------------------------------------------------------------
A petition to liquidate Paparoa Block Ltd will be heard before
the High Court of Auckland on November 9, 2006, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on September 4, 2006.

The Solicitor for the Petitioner can be reached at:

         Phillip Macredie
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue (P.O. Box 33-150)
         Takapuna, Auckland
         New Zealand
         Telephone:(09) 984 1064
         Facsimile:(09) 984 3116


PORT VIEW: Liquidation Commenced on October 3
---------------------------------------------
Shareholders of Port View Chartered Club Incorporated on
September 2, 2006, resolved to liquidate the company's business
and appoint James Gregory Eden as liquidator.

The resolution was confirmed on October 2, 2006, and the
liquidation of the company commenced on the next day.

The Liquidator can be reached at:

         James Gregory Eden
         Staples Rodway Taranaki Limited
         P.O. Box 146, New Plymouth
         New Zealand
         Telephone:(06) 758 0956
         Facsimile:(06) 757 5081


SAP INVESTMENTS: Shareholders Opt to Liquidate Business
-------------------------------------------------------
On September 7, 2006, shareholders of SAP Investments Ltd
resolved to liquidate the company's business and appoint Paul
Alexander Glass as liquidator.

The liquidation commenced on October 10, 2006.

The Liquidator can be reached at:

         Paul Alexander Glass
         44 York Place, Dunedin
         New Zealand
         Telephone:(03) 477 5432
         Facsimile:(03) 474 1564


TRUSTPOWER: Posts NZ$57.5 Mln Surplus for 1st Half of 2006
----------------------------------------------------------
TrustPower Limited's unaudited after tax surplus for the six
months to September 30, 2006, was NZ$57.5 million, compared with
NZ$50.7 million for the same period last year.  Earnings before
Interest, Tax, Depreciation and Amortization were
NZ$114.2 million versus NZ$107.3 million for the prior
corresponding period.

During July and August 2006, the trading environment saw a
continuance of conditions experienced in the first quarter of
the 2007 financial year.  Lake storage levels and inflows were
below average leading to higher wholesale electricity prices.
However, good inflows into the South Island lakes during
September have seen storage levels move closer to long term
average and consequently wholesale electricity prices reduced
significantly over the course of the month.

TrustPower's own generation assets produced 1,082 GWh during the
first half versus 999 GWh in the prior period.  TrustPower's
hydro generation storage catchments remain at satisfactory
levels which together with purchase contracts the Company has in
place, leaves the Company adequately positioned to meet customer
demand over the remainder of this financial year.

Customer numbers have remained steady at around 220,000.  Total
electricity sold to customers in the first half of the 2007
financial year totaled 2,414 GWh compared with 2,453 GWh sold in
the prior period.

The Company's balance sheet remains strong.  Debt to debt plus
equity was 28% as at September 30, 2006, compared with 27% at
the same time last year.

Progress on the 93 MW Tararua Stage III expansion remains on
schedule and on budget.  Civil work and turbine foundations are
nearing completion and the first shipment of towers and turbines
is expected to arrive at site shortly.  Target final
commissioning date of the thirty one 3 MW wind turbines, is July
2007.

The 5 MW Deep Stream hydro enhancement project is now underway
and remains on schedule for completion in October 2007.

The 72 MW Wairau hydro generation project resource consent
hearing process in Marlborough continues to progress slowly,
with a ruling expected towards the end of the year.

The resource consent application for the up to 46 MW Arnold
hydro generation development on the West Coast is expected to be
notified next month with submissions due by the end of the year.
A resource consent hearing is expected to be scheduled for
April/May 2007.

At the end of September, TrustPower said it would withdraw its
resource consent application for a 300 MW wind farm near Lake
Mahinerangi in Otago and would submit a revised resource consent
application for a 200 MW wind farm.  TrustPower had originally
applied to the Dunedin City, Clutha District, and Otago Regional
Councils for Resource Consents to build the proposed 300 MW wind
farm on a mix of private and Dunedin City Council owned land.

After listening to concerns about environmental impact in
relation to tussock and water supplies involving the land owned
by Dunedin City, TrustPower has now decided to apply only for
consents related to developing the wind farm on private land,
for which it already has signed landowner agreements.  As a
result of the changes, TrustPower will withdraw its Resource
Consent application to the Dunedin City Council, and submit
revised Resource Consent applications for a 200 MW wind farm to
the Clutha District and Otago Regional Councils.  The revised
applications, along with assessments of environmental effect,
are expected to be lodged by the end of November.

The Company continues to progress landowner arrangements and
feasibility studies on a number of other wind and hydro
generation projects in New Zealand.

Taking the trading result into account, the Directors have
declared an interim dividend of 13.0 cents per share (11.0 cents
per share last year).  The dividend will be payable on
January 12, 2007, to all Shareholders on the register at
January 5, 2007.  This dividend will be fully imputed and a
supplementary dividend will be paid to non-resident
shareholders.

As of the first half of the year ended, September 30, 2006, the
Directors are confident that a good financial outcome for the
full year is achievable.

                       About TrustPower

TrustPower Limited -- http://www.trustpower.co-- owns and
operates 34 power stations and produces electricity exclusively
from renewable sources.  The company's power stations produce
enough electricity for 260,000 Kiwi households.

With assets of close to NZ$1.4 Billion, TrustPower is majority
New Zealand owned and is listed on the New Zealand stock
exchange.  TrustPower's head office is in Tauranga, with
regional offices in Auckland, Wellington, and Christchurch.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
October 24, 2006, that TrustPower Limited's prices for its bond
issues traded well below par:

                 Coupon     Maturity     Price
                 ------     --------     -----
                 8.300%     09/15/07       8
                 8.300%     12/15/08       8
                 8.500%     09/15/12       8
                 8.500%     03/15/14       8


* NZ Expects NZ$1.47-Bln Budget Deficit at Year-Ended June '06
--------------------------------------------------------------
New Zealand's Budget cash deficit was NZ$212 million wider than
forecast in the three months ended September 30, 2006, New
Zealand Herald reveals.  This was after the Government spent
more on personnel and operating costs, the paper says.

According to the paper, the NZ$525 million deficit compares with
NZ$212 million forecast by the Treasury Department in the Budget
fiscal update published on May 18, 2006.

NZ Herald says the deficit is expected to be NZ$1.47 billion in
the year ending June 30, 2006.


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

ARMSTRONG WORLD: Requests for Payment Deadline Set for Nov. 16
--------------------------------------------------------------
Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, reminds the U.S. Bankruptcy Court for the
District of Delaware that on Oct. 2, 2006, Armstrong World
Industries Inc.'s Fourth Amended Plan of Reorganization became
effective.

As of the Effective Date, the Plan discharges the Debtor and its
estate, assets, properties and interests in property, as
provided in Section 1141 of the Bankruptcy Code and the
Confirmation Order.

The Plan also binds the Debtor and all creditors and parties-in-
interest; revests property of the Debtor's estate in Reorganized
AWI free and clear of all Claims, Equity Interests, Encumbrances
and other interests unless otherwise stated; voids any judgment
against the Debtor; and operates as an injunction with respect
to any debt discharged.

The Asbestos PI Channeling Injunction and the Claims Trading
Injunction are in full force and effect, Mr. Madron states.

All entities seeking payment for services rendered or
reimbursement of expenses incurred through and including the
Effective Date under Section 330, or allowance of Administrative
Expenses arising under Sections 503(b)(2), 503(b)(3), 503(b)(4),
or 503(b)(5) must file a request by Nov. 16, 2006.

Any distribution under the Plan that is unclaimed after 180 days
following the distribution date will be deemed not to have been
made and will be transferred to Reorganized AWI, free and clear
of any claims or interests of any entities, including any claims
or interests of any governmental unit under escheat principles.

                    About Armstrong World

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 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 Company and its
affiliates 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.

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. 103; Bankruptcy Creditors'
Service,Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                          *     *     *

Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on Oct. 2,
2006.  The outlook is stable.


DCEIL INTERNATIONAL: Subsidiary Defaults Payment as of September
----------------------------------------------------------------
Pursuant to the Amended Practice Note 17/2005, DCEIL
International Berhad has informed the Bursa Malaysia Securities
Berhad that its wholly owned subsidiary, DCEIL Imex Sdn Bhd has
received a demand letter dated September 20, 2006, from the
solicitor of Southern Bank Berhad for the payment of the
outstanding balance of MYR6,412,337.05 as at August 31, 2006,
together with accrued interest at the rate of 3.5% p.a. above
Base Lending Rate currently fixed at 6.75% p.a. from Sept. 1,
2006, until the date of full settlement.

The amount is in respect of Permanent & Temporary Banker's
Acceptance Facilities of MYR6,000,000 granted by Southern Bank
Berhad to DCEIL Imex.  The facilities were secured by a
corporate guarantee from DCEIL.

Moreover, on September 26, 2006, DCEIL as the Corporate
Guarantor has also received a demand letter dated September 20,
2006, from the solicitor of Southern Bank for the payment of
MYR2,113,478.93 as at August 31, 2006, together with accrued
interest at the rate of 3.5% p.a. above Base Lending Rate
currently fixed at 6.75% p.a. from September 1, 2006, until the
date of full settlement.

As reported by The Troubled Company Reporter - Asia Pacific on
Sept. 13, 2006, DCEIL has become an affected listed issuer under
the Amended Practice Note 17/2005, as it is unable to provide a
solvency declaration to Bursa Securities.  In addition, DCEIL's
wholly owned subsidiaries, DCEIL Sdn Bhd and DCEIL Imex have
also defaulted on loans.

                         About DCEIL

DCEIL International Bhd is principally involved in trading,
distribution and installation of ceilings and partitioning
works.  Its other activities include manufacturing of toilet
partitions and investment holding.  The Group operates in
Malaysia and other foreign countries.

DCEIL is classified under Practice Note 1 and Practice Note 17
of the Bursa Malaysia Securities Berhad's Listing Requirements.


EKRAN BERHAD: Submits Application to Bourse to Uplift from PN 17
----------------------------------------------------------------
On October 30, 2006, Ekran Berhad submitted an application to
Bursa Malaysia Securities Berhad to be removed from the affected
list of the Amended Practice Note 17.

The company will announce the outcome of its application once it
has received the notification from the Bourse.

Ekran has been classified as an affected listed issuer under
Amended Practice Note 17, when the auditors have expressed a
disclaimer opinion on the company's audited financial report for
the financial year ended June 30, 2005, and for defaulting on
various credit facilities.

                      About Ekran Berhad

Ekran Berhad is a Malaysian company engaged in investment
holding and the provision of management services to its
subsidiary companies.  Through its subsidiaries, the company is
engaged in property development; the provision of property
management services; timber logging and saw milling; the sale of
timber products, and the operation of oil palm plantations.  The
company's operations are mainly concentrated in Malaysia, China
and the Philippines.

As reported by the Troubled Company Reporter on August 8, 2006,
the company is facing a wind-up petition filed by United
Overseas Bank for defaulting on a bank loan.  Ekran has been
classified as an affected listed issuer under Amended Practice
Note 17, when the auditors have expressed a disclaimer opinion
on the company's audited financial report for the financial year
ended June 30, 2005, and for defaulting on various credit
facilities.


EKRAN BERHAD: Posts Defaults Update as of September 2006
--------------------------------------------------------
Ekran Berhad has disclosed the status of its default as of
September 2006.

The details of default in payment of its credit facilities as of
September 2006 are as follows:

    Bankers                       Claimed amount + Interest
    -------                       -------------------------

   * Affin Bank Berhad            MYR19,033,660.42 + Interest
   * Pengurusan Danaharta
     National Sdn Bhd             MYR28,426,953.08 + Interest
   * Danaharta Managers Sdn Bhd   MYR1,217,535.25 + Interest
   * Danaharta Urus  Sdn Bhd      MYR29,535,045.28 + Interest
   * Affin Bank Berhad            MYR6,342,217.16 + Interest
   * RHB Bank Berhad              MYR20,560,629.68 + Interest
   * AmBank Berhad
   (Arab Malaysian Bank Berhad)   MYR3,079,661.39 + Interest
   * United Overseas Bank
     (Malaysia) Berhad            MYR8,975,648.97 + Interest

                        Total:    MYR117,171,351.23 + Interest

                      About Ekran Berhad

Ekran Berhad is a Malaysian company engaged in investment
holding and the provision of management services to its
subsidiary companies.  Through its subsidiaries, the company is
engaged in property development; the provision of property
management services; timber logging and saw milling; the sale of
timber products, and the operation of oil palm plantations.  The
company's operations are mainly concentrated in Malaysia, China
and the Philippines.

As reported by the Troubled Company Reporter on August 8, 2006,
the company is facing a wind-up petition filed by United
Overseas Bank for defaulting on a bank loan.  Ekran has been
classified as an affected listed issuer under Amended Practice
Note 17, when the auditors have expressed a disclaimer opinion
on the company's audited financial report for the financial year
ended June 30, 2005, and for defaulting on various credit
facilities.


FOREMOST HOLDINGS: Still Reviewing Regularization Plan
------------------------------------------------------
Foremost Holdings Berhad is still formulating its plan to
regularize its financial conditions according to its disclosure
on October 2, 2006.

Foremost was classified as an affected listed issuer under Bursa
Malaysia Securities Berhad's Practice Note 17 because it has
"insufficient financial position to warrant continued listing".
As an affected issuer, the company is required to draft a plan
to regularize its finances to avoid being delisted from the
Official List.

Foremost has another two months to submit its Regularization
Plan to the relevant authorities for approval.

                     About Foremost Holdings

Foremost Holdings Berhad manufactures and sells automobile
speakers, home audio speakers, general-purpose speakers and
speaker wooden cabinets.  The Company is also engaged in the
trading of auto accessories, investment holdings and the
provision of management services.  Products are distributed in
Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United
States, other Asian countries, other European countries and
other countries.

Foremost was classified as an affected listed issuer under Bursa
Malaysia Securities Berhad's Practice Note 17 because it has
"insufficient financial position to warrant continued listing".
As an affected issuer, the Company is required to draft a plan
to regularize its finances to avoid being delisted from the
Official List.


GEORGE TOWN: Unfinished Revamp Plan Delays Financials Release
-------------------------------------------------------------
George Town Holdings Berhad has informed Bursa Malaysia
Securities Berhad on October 31, 2006, that it has delayed in
issuing the company's financial statements for it is still
working on the proposed restructuring scheme.

The following financial statements were not issued by the
company:

   * Annual Audited Accounts for financial period ended
     December 31, 2004, by the due date of April 30, 2005;

   * First Quarterly Report ended March 31, 2005, by the due
     date of May 31, 2005;

   * Annual Report for financial period ended December 31, 2004,
     by the due date of June 30, 2005;

   * Second Quarterly Report ended June 30, 2005, by the due
     date of August 31, 2005;

   * Third Quarterly Report ended September 30, 2005, by the due
     date of November 30, 2005;

   * Fourth Quarterly Report ended December 31, 2005, by the due
     date of February 28, 2006;

   * Annual Audited Accounts for financial period ended
     December 31, 2005, by the due date of April 30, 2006;

   * First Quarterly Report ended March 31, 2006, by the due
     date of May 31, 2006;

   * Annual Report for the financial year ended December 31,
     2005, by the due date of June 30, 2006; and

   * Second Quarterly Report ended June 30, 2006, by the due
     date of August 31, 2006.

Pursuant to Paragraph 9.26(6) of the Listing Requirements of
Bursa Securities, if a listed issuer fails to issue the
outstanding Financial Statements within 6 months from the expiry
of the relevant timeframes, in addition to any enforcement
action that Bursa Securities may take, de-listing procedures
will also be initiated.

However, George Town's securities have already been suspended
from trading since August 1, 2005, due to the fact that the
company has failed to issue its financial reports.

The company disclosed that the Financial Statements will be
submitted once the restructuring is finalized.

                     About George Town

Headquartered at Petaling Jaya, in Selangor Darul Ehsan,
Malaysia, George Town Holdings Berhad operates supermarkets,
department stores and convenience stores.  Its other activities
include property development, trading in pharmaceutical
products, media design and advertising, management services,
goldsmith and jewelers, management of car parks, bakery, pastry
and fast food center, financial services, hotel management and
investment holding.  The Group operates in Malaysia, Continental
Europe/Offshore Islands and other countries.

The company has been categorized as an Affected Listed Issuer
under Practice Note 17, based on its unaudited financial
statement as at December 31, 2004, wherein, it showed that the
company had MYR28.7 million shareholders' equity representing
23.4% of the issued and paid-up share capital which is less than
the 25% minimum required under the listing requirements of Bursa
Securities.


MERGE ENERGY: Enters Into Sale and Purchase Agreement
-----------------------------------------------------
Merge Energy Bhd, has on September 25, 2006, entered into a sale
and purchase agreement to acquire:

   -- from SFSB and Al-Mudharib Niaga Sdn Bhd the entire equity
      interest in Suasa Efektif (M) Sdn Bhd; and

   -- from SFSB the MYR8,462,002 7-year 10% redeemable
      convertible unsecured loan stocks 2003/2010 in Suasa
      Efektif.

The total purchase consideration of MYR46,900,000 will be fully
satisfied by the issuance of 46,900,000 ordinary shares of
MYR1.00 each in Merge Energy at an issue price of MYR1.00 per
share.

Upon completion of the Sale and Purchase Agreement, Yusof
Badawi, Sejahtera Fitrah Sdn Bhd, Desa Binapuri Sdn Bhd, Dato'
Muhammad Azaham bin Abdul Wahab and Ahmad Sazali bin Mohd
Shaarani, will directly and indirectly own 43,000,000 Merge
Energy Shares representing approximately 37.75% of the enlarged
issued and paid-up share capital of Merge Energy.  Pursuant to
Section 33B(2) of the Securities Commission Act, 1993 and
Section 6 of the Malaysian Code on Take-overs and Mergers, 1998,
Yusof Badawi and the Concert Parties would be obliged to
undertake a mandatory offer to acquire the remaining Merge
Energy Shares not already owned by them upon completion of the
Proposed Acquisition.

However, Merge Energy also proposed an exemption for Yusof
Badawi and the Concert Parties from the obligation to undertake
a mandatory offer to acquire the remaining ordinary shares in
Merge Energy upon the completion of the proposed acquisition of
the entire equity interest.

                    About Merge Energy

Merge Energy Berhad's principal activities involve building
construction, structural, infrastructure and civil engineering
works.  Other activity includes property investment and
investment holding.  Operations of the company are carried out
predominantly in Malaysia.

The company was ordered to formulate a financial regularization
plan pursuant to its admission on May 5, 2006, to the Bursa
Malaysia Securities Berhad's Practice Note 17 category.


MERGE ENERGY: Unit Inks Sale and Purchase Agreement
---------------------------------------------------
Mewah Kota Sdn Bhd, a wholly-owned subsidiary of Merge Energy
Bhd, has entered into a sale and purchase agreement with Khong
Fooi Chin to dispose the two parcels of freehold land owned by
Mewah Kota for a cash consideration of MYR1,000,000.

The purchase consideration of MYR1,000,000 will be paid by:

   -- a deposit of MYR100,000 the 10% sum equivalent of purchase
      consideration payable to Mewah Kota; and

   -- the balance shall be paid to the solicitors of Mewa Kota,
      as stakeholders.

The land properties measure approximately 4,295 square feet held
under Lot 000201, Geran No. 5078 and Lot 000202, Geran No. 5079
in Bandar Alor Setar, Daerah Kota Setar, Kedah Darul Aman.   It
comprises two 4-storey shop houses with a built-up area of
17,169 square feet.

Mewah Kota previously acquired the properties on August 1, 1993,
at MYR1,244,000.  Based on the Merge Energy's latest audited
financial statements as at January 31, 2006, the net book value
of the properties was MYR995,940.

The proposed disposal will enable Merge Energy to raise cash
proceeds to be utilized for working capital.

Moreover, the proposed disposal is not expected to have any
material effect on the Group's net assets and the Group's
earnings for the financial year ending January 31, 2007.

                    About Merge Energy

Merge Energy Berhad's principal activities involve building
construction, structural, infrastructure and civil engineering
works.  Other activity includes property investment and
investment holding.  Operations of the company are carried out
predominantly in Malaysia.

The company was ordered to formulate a financial regularization
plan pursuant to its admission on May 5, 2006, to the Bursa
Malaysia Securities Berhad's Practice Note 17 category.


VERIFONE HOLDING: American Stock Exchange Launched Trade Options
----------------------------------------------------------------
The American Stock Exchange launched trading in options on
Oct. 26, 2006, on these New York Stock Exchange and Nasdaq Stock
Market listed stocks of:

   -- Diodes Inc. (Option Symbol: DUH/Stock Symbol: DIOD)
   -- Spansion Inc. (Option Symbol: SBU/Stock Symbol: SPSN)
   -- VeriFone Holdings Inc. (Symbol: PAY)

Diodes Inc. will open with position limits of 7,500,000 shares.
The options will trade on the March expiration cycle.  The
specialist will be Trinity Derivatives Group, LLC. Diodes Inc.
manufactures, sells and distributes discrete semiconductor
devices to manufacturers in the automotive, computer and
telecommunications industries.

Spansion Inc. will open with position limits of 25,000,000
shares.  The options will trade on the January expiration cycle.
The specialist will be LaBranche Structured Products, LLC.
Spansion Inc. develops, designs and manufactures Flash memory.

VeriFone Holdings, Inc., will open with position limits of
7,500,000 shares.  The options will trade on the January
expiration cycle.  The specialist will be Susquehanna Investment
Group.  VeriFone Holdings, Inc. is a global provider of
technology that enables electronic payment transactions and
value- added services at the point of sale.

               About the American Stock Exchange

The American Stock Exchange offers trading across a full range
of equities, options and exchange traded funds, including
structured products and HOLDRS.  In addition to its role as a
national equities market, the Amex is the pioneer of the ETF,
responsible for bringing the first domestic product to market in
1993.  Leading the industry in ETF listings, the Amex lists 196
ETFs to date.  The Amex is also one of the largest options
exchanges in the U.S., trading options on broad-based and sector
indexes as well as domestic and foreign stocks.

                       About Verifone

VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems.  The company has operations
in Malaysia, Argentina, Australia, Brazil, China, France, India,
Poland, the United Kingdom, the United States, among others.

Moody's Investors Service has affirmed the Corporate Family
Rating of B1 of VeriFone and revised the rating outlook to
stable from negative.  At the same time, Moody's assigned
ratings to new bank credit facilities that VeriFone will use to
finance its pending acquisition of Lipman Electronic Engineering
Ltd.


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

ALLIED BANK: Fitch Affirms Individual Rating at D
-------------------------------------------------
On October 31, 2006, Fitch Ratings affirmed Allied Banking
Corporation's Individual rating at 'D' and Support rating at '4'
after a review of the bank.

ABC's ratings reflect its limited profitability and just
adequate capital strength, but improving asset quality.  The
bank's balance sheet grew by a modest 5% over the 18 months to
mid-2006, mainly from the purchase of more investment securities
(predominantly fixed rate government debt paper).  Meanwhile,
the bank's loan book contracted 5% due to stagnant credit demand
and impaired asset sales. Its loans and securities in mid-2006
stood at 40% and 36% of assets, respectively.

Like other Philippine banks, ABC has gone some way to addressing
its high level of impaired assets in recent years through
auctions to the retail market and bulk discounted sales to
managers of distressed assets.  ABC's H106 NPL ratio of 8.8% is
notably lower than end-2004's 16.0%, and its impairment coverage
of 99% should prove adequate.  Foreclosed property assets
(accounting for 3.2% of assets), however, might prove more
problematic.  Rental income on these is negligible and not much
in the way of sales has taken place.  Fitch is concerned about
the negligible reserves for these properties.

ABC's profitability is limited with RoA of 1.0% and RoE of
10.3%, despite enjoying wider margins over H106 amidst a
favorable interest rate environment.  The bank has a very high
level of operating costs (with a cost-income ratio of 70%) due
to a large branch network relative to its asset base, compounded
by trading losses triggered by the sell down of government bonds
in May 2006.  That said, the bank's mid-2006's CAR of 19.6% is
comfortably above the regulatory minimum of 10%, thanks to
significant investments in zero risk weighted government
securities.

In Fitch's view, the bank should remain adequately sound
assuming an ongoing benign economic environment.  An upgrade
would hinge upon tighter cost control and profitability
improvements to aid balance sheet strengthening.

Established in 1963, ABC was majority acquired by the Lucio Tan
Group in 1977.  The Lucio Tan Group is a diversified
conglomerate and is one of the largest corporates in the
Philippines, which also majority owns Philippine National Bank.
At end-2005, ABC had a network of 317 branches.


BANK OF THE PHILIPPINE ISLANDS: 3Q2006 Net Income Up 11%
--------------------------------------------------------
The consolidated net income of the Bank of the Philippine
Islands for the third quarter of 2006 increased to
PHP2.3 billion, 11% ahead of the previous year on higher
revenues of 8%.  Operating expenses on the other hand were up by
20% but were partly neutralized by a PHP502 million decline in
after tax impairment losses.  Impairment losses were accelerated
last year with the implementation of the new Philippine
Financial Reporting Standards.

For the first nine months of 2006, the bank's consolidated net
income rose to PHP6.9 billion, 8% higher than last year.  The
improvement in income was supported by the 7% increase in total
revenues.  While operating expenses increased by 15%, these were
tempered by PHP687 million in after tax lower impairment losses.
Return on equity was at 15.6% and return on asset was at 1.8%.

Net interest income posted a moderate 4% expansion mainly on
account of an 11% growth in average asset base.  The impact of
the higher volumes were softened by a 25 basis points drop in
spreads as interest rates fell due to excess liquidity, improved
government finances and contained inflation.

Non-interest income recorded a stronger increase of 14%.  Major
gains came from securities and foreign exchanged trading,
property rentals, investments management and trust fees, and
service charges and commissions.

Total assets was at PHP529 billion.  With comparable year ago
levels already reflecting the acquisition of Prudential Bank,
deposits of PHP424 billion reflected a 5% organic growth.  Net
loans expanded 3.8% to PHP226 billion, higher than the industry
growth of 2.5% as of end August 2006.

BPI recently declared a special cash dividend of PHP1.00 per
share.  Together with the regular cash dividend of PHP1.80 per
share, PHP0.990 of which was paid out in August, total cash
yield on BPI shares amounts to 4.5% on the closing pricing of
PHP62 as of October 30, 2006.  BPI shares trade at a consistent
premium over book value.  As of September 30, 2006, BPI's share
price appreciated by 29% over the adjusted end 2005 price of
PHP45.42.  BPI's market capitalization stood at PHP158 billion
as against book value of PHP64 billion.

                           About BPI

Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is
the oldest bank in South East Asia and is the second largest
commercial bank in the Philippines in terms of assets, deposits,
loans and capital base in the year 2003.  The Bank has two major
products and services categories: the first covers its deposit
taking and lending/investment activities, while the second
covers income derived from all services other than deposit
taking, lending and investing, which are generally in the form
of commissions, service charges and fees.

Moody's Investors Service gave BPI a 'B1' Long-Term Bank
Deposits Rating effective February 16, 2005.

Fitch Ratings gave the bank an individual rating of 'C'
effective October 26, 2000.


LANDBANK OF THE PHILS: Launches Credit Facility for Borrowers
-------------------------------------------------------------
The Land Bank of the Philippines has made credit facilities
available for borrowers engaged in production of renewable and
alternative energy sources thru its Renewable Energy for Wiser
and Accelerated Resources Development program.

Under the program, small and medium entrepreneurs, cooperatives,
local government units, and non-government organizations may
avail of working capital loan from Land Bank to finance their
bio-fuel, biomass-based, hydropower, wind, geothermal and solar
projects.  The loan may also be used for working capital,
acquisition of fixed assets, and preparation of feasibility
studies to include engineering designs.

Land Bank acting president and CEO Gilda E. Pico says the REWARD
program is in support of the government's thrust of promoting
energy independence for sustainable economic growth.  The Lower
House recently approved on third reading the Biofuels Bill which
mandates the use of alternative fuels in the transport sector to
reduce the country's reliance on imported fuel.

"We want to help ensure the continuous supply of fuel at
affordable prices and at the same time provide employment to
people engaged in energy development.  We also prefer using
clean and renewable energy sources as it helps improve the
quality of our environment even if the supply and price of
fossil fuels stabilize" Ms. Pico says.

Meanwhile, Land Bank is set to infuse PHP400 million out of the
PHP1.8 billion syndicated term loan for the implementation of
the Integrated Ethanol Distillery and Power Generation Plant
project of San Carlos Bioenergy, Inc., in San Carlos City,
Negros Occidental.  The project will produce around 100,000
liters of ethanol and 8 MW of electricity per day.

Prior to the launching of the REWARD program, Land Bank already
has an outstanding exposure of some PHP3 billion in various
renewable energy projects.

                        About Land Bank

Land Bank of the Philippines -- http://www.landbank.com/-- is a
government financial institution that strikes a balance in
fulfilling its social mandate of promoting countryside
development while remaining financially viable.  Today, Landbank
claims to be the largest formal credit institution in the rural
areas and to rank among the top five commercial banks in the
country in terms of deposits, assets, loans and capital.  From
its initial role as the financing arm of the agrarian reform,
the bank has evolved into a full-service commercial bank.

On October 6, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings has assigned a Long-term foreign
currency and local currency Issuer Default rating of 'BB', and a
National Long-term rating of 'AA(phi)' to Land Bank of the
Philippines.  The Outlook on the ratings is Stable.  At the same
time, the agency also assigned an expected rating of 'BB-' to
LBP's planned subordinated debt issue of up to US$100 million to
US$150 million.  Fitch also affirmed the bank's Individual and
Support ratings at 'D' and '3', respectively.


NATIONAL POWER: Gives PHP6 Mln Damage Compensation to Semirara
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
May 12, 2006, National Power Corporation will start paying
compensation to around 188 residents of Semirara Island in
Caluya, Antique, within the next two months, for damages caused
by an oil spill from a Company barge in December 2005.

In an update, on October 20, 2006, National Power distributed
checks worth more than PHP6 million to 187 local residents as
payment for damages to help the victims of the December 2005 oil
spill in Semirara Island in Antique.  At the same time, the firm
provided livelihood assistance worth about PHP2.2 million to the
Semirara Aqua Farmers and Fisherfolk Association, Inc., a local
cooperative.

It will be recalled that Power Barge 106, owned by National
Power, ran aground off the coast of Semirara Island after
encountering strong winds and waves due to inclement weather.
More than 210,000 liters of Bunker C fuel oil spilled near the
island due to the accident.

Accordingly, National Power implemented the clean-up of the
affected areas together with the Philippine Coast Guard,
Department of Environment and Natural Resources, and the
residents of Barangay Semirara, based on a work plan that was
agreed upon by all parties concerned.

In September 2006, the PCG issued the final certificate of
completion to National Power after its successful clean-up of
Semirara Island.   The Certificate was given to National Power
"as proof of (its) successful oil spill clean-up operation in
Semirara Island, Caluya, Antique".  Commander Allen T. Toribio
of the Marine Environmental Protection Command of the PCG signed
the certificate.

Among other accomplishments, the PCG noted that National Power
and First Response Marine Services, Inc., a duly-accredited oil
spill response organization, have finished cleaning up some 113
hectares of shoreline and mangrove areas that were affected by
the December 18 oil spill.  Further clean-up through bio-
remediation was likewise completed successfully, the PCG added.

The TCR-AP previously reported that the PCG handed a provisional
certificate of completion to National Power for the clean-up of
the oil spill.

                       About National Power

Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities.  It works
with independent producers under a build-operate-transfer
program.  With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies.  To comply with the privatization bill
approved by the Philippine Congress, the Company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

                          *     *     *

National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers.  The Company posted a PHP29.9 billion loss in
2004, after a net loss of PHP117 billion in 2003.

The Government absorbed National Power's PHP200 billion debt,
which was incurred when the government-owned-and-controlled
corporation adopted international accounting standards, forcing
the Company to report its foreign exchange losses.

The Troubled Company Reporter - Asia Pacific reported on April
5, 2006, that for 2005, National Power posted a PHP16-million
profit for the first time in seven years, on the Energy
Regulation Commission's approval of a rate increase, the use of
improved fuel mix and better fuel prices.


PHILIPPINE NATIONAL BANK: Fitch Affirms Individual Rating at E
--------------------------------------------------------------
On October 31 2006, Fitch Ratings affirmed Philippine National
Bank's Individual rating at 'E' and Support rating '3' after a
review of the bank.

Fitch acknowledges the bank's improved profitability and
financial fundamentals after the installment of a professional
management team in 2001.  That said, its ratings continue to be
constrained by its weak balance sheet strength.  A high level of
non-performing assets (consisting of PHP27.8 billion of non-
performing loans and PHP26.2bn of foreclosed property assets) is
the main area of concern.  While the bank maintains a high 90%
level of reserves coverage of NPLs, this appears warranted given
that the NPLs have been with the bank for numerous years, and
given the existence of numerous other weak performing loans.

Reserves for foreclosed properties, however, is negligible,
despite evidence at other banks pointing to loss rates as high
as 60% - and noting that PNB's properties generate little in the
way of rental income and that the bank has not been able to sell
much of them over the years.

While PNB's balance sheet strength is limited after taking its
uncovered impaired assets into account, its total capital
adequacy ratio of 17.5% remains above the regulatory minimum of
10.0%, thanks to significant investments in zero risk weighted
government securities (accounting for 22% of assets).  In
contrast, under longstanding conditions of stagnant credit
demand, mid-2006's net loans stood at just 35% of assets.

Meanwhile, a higher interest rate environment enabled a
substantial improvement in PNB's margins over 2005/2006
(although they remained below its peers' due to its small loan
book and non-accrual drag).  With this and the bank's high level
of non-interest income (thanks to its strong remittance
franchise -- and securities and FX trading gains which may not
prove entirely sustainable), PNB's core pre-provisioning
profitability is now just satisfactory despite a very high cost
base.  Nevertheless, it is unlikely that earnings retention
alone will be sufficient to restore PNB's balance sheet to a
satisfactory level of strength.

Going forward, some further capital injection to shore up the
bank's weak equity position may well be necessary.  An upgrade
would hinge upon significantly higher capital and reserves
relative to the bank's impaired assets.

PNB was established in 1916 by the government as an instrument
of economic development.  Over recent years, it has been
progressively acquired by the Lucio Tan Group which gained a
77%-majority stake in 2005.  At end-2005, PNB had a network of
324 domestic branches, 102 overseas offices in 16 countries and
315 ATMs.


SECURITY BANK: Reports 51% Rise in Profit to PHP1.35 Billion
------------------------------------------------------------
Security Bank Corporation posted a net income of PHP1.35 billion
for the first nine months of 2006, 51% higher than the PHP897
million earnings for the same period last year and surpassing by
PHP197 million the PHP1.16 million full year net income
registered in 2005.  The net income performance for the period
translates to earnings per share of PHP4.11, up from the PHP2.72
per share recorded last year.  The strong income growth resulted
in an annualized return on average equity of 17.2%, outpacing
the 11.3% registered for the same period last year.

The healthy earnings was driven by a solid growth in revenues,
improving to PHP4.5 billion for the nine months ending September
30, 2006, from PHP4.1 billion in the comparative period last
year.  Although a decreasing interest rate environment for the
better part of the first semester led to pressure on net
margins, Security Bank seized opportunities to recognize trading
gains on the Bank's securities portfolio.  Consequently, non-
interest income reflects a 39% year-on-year increase from PHP1.3
billion last year to PHP1.8 billion this year.

With Security Bank being fully compliant with IAS/PAS
requirements at year-end 2005, provisions for credit losses have
significantly dropped by 55% to PHP369 million as of September
30, 2006, from PHP829 million a year ago without compromising
the Bank's asset quality.  In fact, the Bank's non-performing
loan ratio as of the third quarter of 2006 stands proudly at
4.1% with NPL cover at 144% versus 5.4% and 85%, respectively,
as of end-September last year.  This is superior to the
industry's average NPL ratio of 7.2% and average NPL cover of
81%.

Security Bank's total resources remained relatively flat to the
2005 year-end level of PHP105 billion, while it continued to
leverage on the efficiency of its distribution network enabling
the Bank to further increase its deposit base to PHP68 billion
from the PHP62 billion recorded as of end-September last year.
This PHP6 billion or 10% growth resulted primarily from the
Bank's relentless focus on generating lower-cost deposits.

Security Bank's commitment to product and service excellence
continues to receive international acclaim.  This year, the Bank
was cited in Asiamoney's 2006 Cash Management Poll as the "2nd
Best Local Cash Management Bank" in the Philippines.  Likewise,
for the second year in a row, the Bank was ranked among the
country's "Best Domestic FX Providers" for various FX products
and services in the 2006 FX Poll of Asiamoney.

                        About Security Bank

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

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


* RP's 9-month Corporate Income Tax Collection Up 29%
-----------------------------------------------------
According to the Philippine government, tax collection from both
local and foreign companies operating in the Philippines grew
29% from a year earlier, helped by higher corporate income tax
rates under the new value added tax law.

Data from the Bureau of Internal Revenue showed that taxes on
net income and profit collected from companies and corporate
enterprises reached PHP144.45 billion from January to September
this year, higher than the PHP114.86 billion collected in the
same period last year.

Incomes taxes voluntarily paid by companies grew 32.9% to
PHP68.55 billion during the first nine months of the year from
PHP51.58 billion in the same period last year.  The amount was
also PHP18.51 million more than the goal of PHP68.53 billion.

                            *     *     *

"Standard & Poor's Ratings Services assigned its 'BB-' senior
unsecured rating to the Republic of Philippines' proposed new
bond issue that will mature in 2024, as well as the new debt
under the series of 7.75% Global Bonds due in 2031.  The
government is offering these bonds in exchange for some of its
existing debt.  At the same time, Standard & Poor's also
affirmed its 'BB-' ratings on the bonds that are eligible for
exchange."


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

BANGKOK BANK: Restructures Executive Team
-----------------------------------------
Bangkok Bank reorganized its executive team with the appointment
of Piti Sithi-Amnuai to replace Kosit Panpiemras as the bank's
executive chairman, The Nation reports.

The appointment was effective on October 26, 2006.

Mr. Kosit, the paper recounts resigned from his post after the
Council for National Security appointed him as deputy prime
minister and industry minister.

The bank also appointed senior executive vice president Suvarn
Thansathit to the post of director to fill another vacancy left
by a resignation.

Mr. Suvarn was also appointed to oversee the bank's provincial
banking business, replacing Thamnoon Laukaikul, who will resign
on January 1, 2006.

In addition, current executive vice president, Boonsong
Bunyasaranand, was promoted to senior executive vice president,
and the incumbent chairman and audit committee were reinstated
for another two-year term beginning November 4, 2006.

"Once Kosit returns to the bank after serving the government for
about one year, the bank might ask our shareholders to add one
more director position for him.  "His former position, executive
chairman, would be considered later," said bank chairman Chatri
Sophonpanich.

Headquartered in Bangkok -- http://www.bangkokbank.com/--  
Bangkok Bank is Thailand's largest bank, with total assets of
THBB1.498 trillion (US$39 billion) at end-June 2006.

Moody's Investors Service has upgraded on August 29, 2006,
Bangkok Bank's bank financial strength rating to D+ from D and
was re affirmed on September 20, 2006, following the military
coup in Thailand.

Bangkok Bank currently carries Moody's Bank financial strength
rating of D+, and foreign currency long-term/short-term deposit
ratings of Baa1/P-2.

In addition, Fitch Ratings on October 23, 2006, affirmed the
ratings of
Bangkok Bank and removed them from Rating Watch Negative on
which they were placed on September 20, 2006 following the
military coup.  The Outlook on their ratings is now Stable.

This action follows a similar removal of the Negative Rating
Watch and affirmation of the sovereign rating of the Kingdom of
Thailand.

After the rating action, Bangkok Bank's ratings are as follows:

    * Long-term foreign currency Issuer Default rating:  BBB+/
      Outlook Stable;
    * Short-term foreign currency F2;
    * Individual C;
    * Support 2;
    * Subordinated debt BBB.


TOTAL ACCESS: Gets 1.5 Million New Mobile-Phone Numbers
-------------------------------------------------------
Total Access Communication secured an additional 1.5 million
mobile-phone numbers from Thailand's National Telecommunications
Commission, The Nation reports.

NTC chairman Choochart Promphrasid told The Nation that the
allocation filled part of the company's request for 3.5 million
additional phone numbers.

The Nation recounts that DTAC's rival company, True Move, was
recently awarded 1.5 million additional mobile-phone number
after it requested 2 million more while another rival, Advanced
Info Service, is in the process of applying for an additional 2
million mobile-phone numbers.

The Nation notes that the telecom authority awarded the extra
numbers to DTAC and True Move under its existing interim number-
allocation plan.  Moreover, the regulator is expected to
introduce a permanent allocation plan in the next few months.

The interim policy however, is unpopular with telecom operators
as it requires them to apply for additional phone numbers only
when they are down to 50,000.  Operators say this is
impractical, because they can sell as many as 50,000 in one day.

In addition, the policy also requires operators to present their
plans for requesting additional phone numbers, along with their
reasons for doing so, to their competitors each time they want
more.

Additional numbers are charged THB2 per month for the additional
numbers and THB1 per number per month for existing numbers by
the NTC.

Operators are in urgent need of additional phone numbers because
of aggressive campaigns for new subscribers upcountry.

Total Access Communications, DTAC -- http://www.dtac.co.th/--  
is the second-largest cellular operator in Thailand with an
approximately 30% market share and strong brand recognition.
With Telenor's recent purchase of a 39.9% interest in United
Communication Industry Plc and its subsequent tender offers for
UCOM and DTAC shares, Telenor lifted its aggregate economic
interest in DTAC to 70.2% from 40.3%.  DTAC is Telenor's largest
acquisition in Asia and it ranks second in terms of EBITDA
contribution outside Norway.

                          *     *     *

Standard and Poor's gave the Company a BB+ Long-term local and
foreign issuer credit ratings.

DTAC's local and foreign issuer credit were both given a Ba1
rating by Moody's Investor Service.

Fitch Ratings, on July 18, 2006, has affirmed DTAC's Long-term
foreign currency Issuer Default Rating at BB+ and National Long-
term rating at A(tha).  The company's National Short-term rating
was also affirmed at F1(tha).  The Outlook on the ratings is
Stable.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
October 30-31, 2006
  Distressed Debt Summit: Preparing for the Next Default Cycle
    Financial Research Associates LLC
      Helmsley Hotel, New York, NY
        Contact: http://www.frallc.com/

October 31, 2006
  Turnaround Management Association
    Luncheon
      Citrus Club, Orlando, Florida
        Telephone: 561-882-1331
          Web site: http://www.turnaround.org/

October 31 - November 1, 2006
  International Women's Insolvency & Restructuring Confederation
    IWIRC Annual Conference
      San Francisco, CA, USA
        Web site: http://www.iwirc.com/

November 1, 2006
  Turnaround Management Association
    Halloween Isn't Over! - Ghosts of turnarounds past who
      remind you about what you should have done differently
        Portland, Oregon
          Web site: http://www.turnaround.org/

November 1-4, 2006
  National Conference Of Bankruptcy Judges
    National Conference of Bankruptcy Judges
      San Francisco, California
        Web site: http://www.ncbj.org/

November 2, 2006
  Turnaround Management Association
    TMA UK Annual Conference
      Millennium Gloucester Hotel, London, UK
        Web site: http://www.turnaround.org/

November 2-3, 2006
  Beard Group & Renaissance American Conferences
    Third Annual Conference on Physician Agreements & Ventures
      Successful Strategies for Medical Transactions and
        Investments
          The Millennium Knickerbocker Hotel - Chicago
            Telephone: 903-595-3800; 1-800-726-2524;
              Web site: http://www.renaissanceamerican.com/

November 3, 2006
  Association Of Insolvency & Restructuring Advisors
    AIRA/NCBJ Breakfast Program
      Marriott, San Francisco, CA
        Telephone: 415-896-1600
          Web site: http://www.airacira.org/

November 7, 2006
  Turnaround Management Association
    Networking Breakfast
      Marriott, Bridgewater, New Jersey
        Telephone: 908-575-7333
          Web site: http://www.turnaround.org/

November 7-8, 2006
  Euromoney
    5th Annual Distressed Debt Investment Symposium
      Hyatt Regency, London, UK
        Contact: http://www.euromoneyplc.com/

November 7-8, 2006
  International Monetary Fund and the Financial
    Supervisory Service
      Macroprudential Supervision: Challenges for Financial
        Supervisors
          Seoul, South Korea
            Telephone: 82-2-3771-5114
              Web site: http://www.fss.or.kr/

November 8, 2006
  Turnaround Management Association
    Luncheon & Guest Speaker, Joel Naroff to
      discuss the economy, lending and M&A markets
        Davio's Northern Italian Steakhouse, Philadelphia, PA
         Web site: http://www.turnaround.org/

November 8, 2006
  Turnaround Management Association
    Breakfast Meeting
      Marriott Tyson's Corner, Vienna, Virginia
        Telephone: 703-912-3309
          Web site: http://www.turnaround.org/

November 9-10, 2006
  Turnaround Management Association - Australia
    TMA Australia National Conference
        Telephone: 0438-653-179
          e-mail: tma_aust@bigpond.net.au

November 15, 2006
  LI TMA Formal Event
    TMA Australia National Conference
      Long Island, New York, USA
        Web site: http://www.turnaround.org/

November 15-16, 2006
  Euromoney Institutional Investor
    Asia Capital Markets Forum
      Island Shangri-La, Hong Kong
        Web site: http://www.euromoneyplc.com/

November 16, 2006
  Insolvency Practitioners Association of Australia
    Study Group Meetings
      Chartered Accountants House, Sydney, Australia
        Telephone: 9416-2395
          e-mail: amanda_taylor@aapt.net.au

November 23-24, 2006
  Euromoney Conferences
    5th Annual China Conference
      China World Hotel
        Beijing, China
          Web site: http://www.euromoneyconferences.com/

November 30, 2006
   Euromoney Conferences
      Euromoney/DIFC Annual Conference
      Managing superabundant liquidity
         Madinat Jumeirah, Dubai
            Contact: http://www.euromoneyconferences.com/

December 5, 2006
  Euromoney Conferences
    CFO Forum
      Hyatt Regency, Hangzhou, China
        Web site: http://www.euromoneyconferences.com/

December 13, 2006
  Turnaround Management Association - Australia
    Christmas Function Australia
      GE Commercial Finance, George Street,
        Sydney, Australia
          Telephone: 0438-653-179
            e-mail: tma_aust@bigpond.net.au

February 2007
  American Bankruptcy Institute
    International Insolvency Symposium
      San Juan, Puerto Rico
         Telephone: 1-703-739-0800
           Web site: http://www.abiworld.org

March 27-31, 2007
  Turnaround Management Association - Australia
    2007 TMA Spring Conference
      Four Seasons Las Colinas, Dallas, TX, USA
        e-mail: livaldi@turnaround.org

April 11-15, 2007
  American Bankruptcy Institute
    ABI Annual Spring Meeting
      J.W. Marriott, Washington, DC, USA
        Telephone: 1-703-739-0800
          Web site: http://www.abiworld.org/

October 16-19, 2007
  Turnaround Management Association - Australia
    TMA 2007 Annual Convention
      Boston Marriott Copley Place, Boston, MA, USA
        e-mail: livaldi@turnaround.org

March 25-29, 2008
  Turnaround Management Association - Australia
    TMA Spring Conference
      Ritz Carlton Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

October 28-31, 2008
  Turnaround Management Association - Australia
    TMA 2008 Annual Convention
      New Orleans Marriott, New Orleans, LA, USA
        e-mail: livaldi@turnaround.org

October 5-9, 2009
  Turnaround Management Association - Australia
    TMA 2009 Annual Convention
      JW Marriott Desert Ridge, Phoenix, AZ, USA
        e-mail: livaldi@turnaround.org

October 4-8, 2010
  Turnaround Management Association - Australia
    TMA 2010 Annual Convention
      JW Marriot Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

Beard Audio Conferences
  Coming Changes in Small Business Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Audio Conferences CD
  Beard Audio Conferences
    Distressed Real Estate under BAPCPA
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changes to Cross-Border Insolvencies
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Healthcare Bankruptcy Reforms
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Calpine's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changing Roles & Responsibilities of Creditors' Committees
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Validating Distressed Security Portfolios: Year-End Price
    Validation and Risk Assessment
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Employee Benefits and Executive Compensation
    under the New Code
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Dana's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Reverse Mergers-the New IPO?
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Fundamentals of Corporate Bankruptcy and Restructuring
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  High-Yield Opportunities in Distressed Investing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Privacy Rights, Protections & Pitfalls in Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  When Tenants File -- A Landlord's BAPCPA Survival Guide
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Clash of the Titans -- Bankruptcy vs. IP Rights
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/



                            *********

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, Rousel Elaine Tumanda,
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 ***