TCRAP_Public/061214.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  

           Thursday, December 14, 2006, Vol. 9, No. 248

                            Headlines

A U S T R A L I A

ALLCO CONSTRUCTION: Members to Receive Liquidation Report
ALLCO STEEL: Members' Final Meeting Slated for January 15
AWB LIMITED: May Lose Three-Quarters of Export Pool, Report Says
COLLABORATIVE TECHNOLOGIES: Schedules Final Meeting on Jan. 19
COUNTRY FINANCE: Undergoes Voluntary Liquidation

FAMILY BOATS: To Declare First and Final Dividend on Feb. 15
FORTESCUE METALS: Seeks to Extend Discovery Process to January
JAMES HARDIE: Receives Expert's Report on Asbestos Presence
MARITIME INDUSTRY: Commences Wind-Up Process
OLYMPIC AIRLINES: Posts EUR123.7 Million Net Loss for 2005

PACIFIC TRANSPORTABLES: Members to Hear Liquidator's Report
PEAKHOUR PTY: Liquidators to Present Wind-Up Report on Jan. 16
POWELL DUFFRYN: To Hold Members' Final Meeting on January 11
PSIVIDA LIMITED: Posts AU$28.2 Mln Net Loss for FY2006, Up 67.7%
ROUSSEL UCLAF: Enters Wind-Up Proceedings

TRANSAX: Sept. 30 Balance Sheet Upside-Down by US$4.1 Million
ZINIFEX LIMITED: Rating Unaffected by Umicore Merger, Fitch Says


C H I N A   &   H O N G  K O N G

ANSETT WORLDWIDE: Appoints Joint Liquidators
CSK CHINA: Liquidators Cease to Act
DESMOND PROPERTIES: Undergoes Voluntary Wind-Up
FULLY CORPORATION: Names Lui Yun Lam as Liquidator
GRANDWIN ENGINEERING: Court to Hear Wind-Up Petition on Jan. 10

HK CHINA: Members to Receive Wind-Up Report on Jan. 19
HKI PROPERTIES: Moody's Assigns Provisional B2 Ratings
HOPE GOOD: To Hold Members' Final Meeting on January 8
MATTEL CHINA: Creditors' Proofs of Debt Due on January 8
MINSEC MANAGEMENT: Members Pass Resolution to Wind Up Firm

PACIFIC PRECISION: Creditors' Proofs of Claim Due on Dec. 29
TCL CORP: European Venture Remains a Financial Burden
* Chinese Banks' Financial Strength Improves But Flaws Remain


I N D I A

ANDHRA BANK: Says CRR Hike May Hit Profitability
BANK OF BARODA: Workmen Union Plans One-Day Strike Today
BANK OF INDIA: To Declare 20% Interim Dividend
BANK OF INDIA: To Acquire 76% Stake in Indonesia's Bank Swadesi
BANK OF INDIA: Annuls Forfeiture of 200 Equity Shares

GULFMARK OFFSHORE: Earns US$39.8 Million in 2006 Third Quarter
GULFMARK OFFSHORE: Sells 2 Million Shares to Jefferies & Co.
GULFMARK OFFSHORE: Names Bruce A. Streeter as Chief Executive


I N D O N E S I A

BANK NIAGA: Appoints Hashemi Albakri as President
BANK NIAGA: To Sell IDR2 Trillion Bonds in 2007
BERAU COAL: Fitch Assigns Final 'B+' Rating To Unsecured Notes
BERAU COAL: Merrill Lynch Places US$325 Million Dual Tranche
CORUS GROUP: Chairman Favors Companhia Siderurgica's Bid

MARSH & MCLENNAN: Still Considering Putnam Investment Spinoff
MEDCO ENERGI: Wins Drilling Rights In Yemen
PHILLIPS-VAN HEUSEN: Moody's Upgrades Corporate Rating to 'B2'
PT PERTAMINA: State Banks To Lend $500 Mil. to Fund Investments


J A P A N

ALITALIA SPA: Italian Government Launches Sale of 30.1% Stake
BANCO BRADESCO: Andean Dev. Corp Opens US$100MM Credit for Banks
FORD MOTOR: In Talks With Wanxiang Group to Sell ACH Assets


K O R E A

DOOSAN INDUSTRIAL: Fined KRW2 Bil. for Accounting Irregularities
KANA SOFTWARE: Awaits Court's Final OK to Stock Suit Settlement
KOOKMIN BANK: To Expand in Vietnam, Indonesia and Cambodia
KRISPY KREME: Expects to Post US$117MM Revenues for 3rd Quarter
KRISPY KREME: District Ct. Sets Feb. 7 for Settlement Hearing

LG CARD: Shinhan Agrees to US$5.6-Billion Acquisition Price


M A L A Y S I A

CHIN FOH: Court Grants Ban on Actions Against Company
EKRAN BERHAD: Annual General Meeting Slated for December 28
EKRAN BERHAD: Settles Debt Payment with UOB
EKRAN BERHAD: Incurs MYR5.68-Mil. Net Loss in Sept. 2006 Quarter
PROTON HOLDINGS: Volkswagen Wants Audit Before Possible Tie Up

ELBA HOLDINGS: Sept. 2006 Balance Sheet Upside Down by MYR9.9MM
SINORA INDUSTRIES: Posts MYR125,000 Net Loss in Third Qtr. 2006


N E W   Z E A L A N D

AIR NEW ZEALAND: Suspension of Singapore Operations Pays Off
AIR NEW ZEALAND: Plans to Let Subsidiary Take Trans-Tasman Route
BRILL REALTY: Petition Hearing Slated for December 19
CAPELLI AT 75: Creditors Must Prove Claims by January 15
D & L SERVICES: Creditors Must Lodge Claims by Dec. 18

DAVID CLARK: Court to Hear Liquidation Petition on Dec.19
DORIE HERD: Undergoes Liquidation Proceedings
FREEDOM FLIGHT: Liquidation Petition Hearing Set on Dec. 19
MANUKAU FOOD: Faces Liquidation Proceedings
MCKIMMIE HERD: Commences Liquidation Proceedings

NZ PICTURE: Shareholders Resolve to Liquidate Business
SAFE SITE: Court Sets Liquidation Hearing on February 1
SEA ACCOMODATION: Appoints Official Assignee as Liquidator


P H I L I P P I N E S

HERTZ CORP: Commences Exchange Offers for Senior Notes
LAND BANK: Secures New Foreign Credit Programs Worth US$269 Mln
LAND BANK: Loans to Priority Sectors Reach PHP79.6 Billion
LAND BANK: Releases PHP23.6 Billion for Pump-Priming Projects
SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8


S I N G A P O R E

B.T. FROZEN: Court Orders Wind-Up of Operations
CHEMTURA CORP: Raising Elemental Bromine Prices Up to 20%
CKE RESTAURANTS: S&P Lifts Corporate Credit Rating to BB-
FREESCALE SEMICON: Fitch Withdraws Ratings Following Buyout
HEXION SPECIALTY: Posts US$14-Mil. Net Loss in 2006 Third Qtr.

HOCK HENG: Liquidator to Receive Claims Until Dec. 22
ODYSSEY RE: Fairfax Completes Offering of Firm's Common Shares
SING HOE: Pays First and Final Dividend to Creditors
TELCORDIA TECH: Moody's Lowers Corp. Family Rating to B3
WRQ SOFTWARE: To Receive Proofs of Debt Until Jan. 8


T H A I L A N D

G STEEL: Unit Acquires Shares from NSM
KASIKORNBANK: To Set Up SME Venture Capital Fund

     - - - - - - - -

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

ALLCO CONSTRUCTION: Members to Receive Liquidation Report
---------------------------------------------------------
The members of Allco Construction Pty Ltd will meet on Jan. 15,
2007, at 10:00 a.m., to receive the liquidator's report
regarding the company's liquidation proceedings and property
disposal exercises.

As reported by the TCR-AP, the company was placed under members'
voluntary liquidation on May 11, 2006.

The liquidator can be reached at:

         Murray Smith
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9338 2601
         Web site: http://www.mcgrathnicol.com

                    About Allco Construction

Allco Construction Pty Limited is a general contractor of
industrial buildings and warehouses.

The company is located in New South Wales, Australia.


ALLCO STEEL: Members' Final Meeting Slated for January 15
---------------------------------------------------------
The final meeting of the members of Allco Steel (Queensland) Pty
Ltd will be held on Jan. 15, 2007, at 10:00 a.m.

During the meeting, the members will receive Liquidator M.
Smith's account of the company's liquidation proceedings and
property disposal activities.

According to the TCR-AP, the company entered wind-up proceedings
on May 11, 2006.

The Liquidator can be reached at:

         Murray Smith
         McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9338 2601
         Web site: http://www.mcgrathnicol.com

                       About Allco Steel

Allco Steel (Queensland) Pty Ltd operates holding companies.

The company is located in New South Wales, Australia.


AWB LIMITED: May Lose Three-Quarters of Export Pool, Report Says
----------------------------------------------------------------
AWB Limited faces the loss of up to three-quarters of the export
pool it needs to guarantee returns to growers after east coast
handler GrainCorp submitted an application to export 230,000
tonnes in 2007, The Australian reports.

There are also three applications aggregating 2.73 million
tonnes to export wheat to Iraq:

   1. Wheat Australia -- a consortium of GrainCorp,

   2. the West Australian grower co-operative CBH, and

   3. the former Australian Barley Board

CBH has re-submitted its application to export 2 million tonnes
of wheat to its own mills in Asia, the report says.

The Australian reveals that the three applications is nearly
three-quarters of the 4 million tonnes AWB needs to guarantee
returns to growers from a drought-devastated 2006 harvest.

The paper recounts that AWB chairman Brendan Stewart admitted
AWB's estimated pool return was based on handling 4 million
tonnes, and that if it received less it would affect the price
to growers.

The drought-affected harvest was just 9.7 million tones, the
paper reveals.

According to the Wheat Export Authority, six companies have
applied to export wheat since Prime Minister John Howard
transferred the veto over the applications from AWB to the
federal Agriculture Minister, Peter McGauran, the paper relates.

GrainCorp managing director Tom Keene disclosed that the company
is offering AU$15 per tonne above AWB's estimated pool return.
CBH is offering AU$10 to AU$20 per tonne above it.

The paper relates that on December 11, 2006, AWB dropped the
estimated return for the 2006-07 pool by AU$8 per tonne, down to
AU$242 per tonne.

The Australian cites Mr. Keene explaining that GrainCorp could
offer the higher price "because our costs of marketing services
are a lot lower than AWB's.  We have also transparently informed
the marketplace of what our costs are, which is 1.75%, and we
don't have the overhang of that fixed fee that AWB enjoys."

AWB's charges its export subsidiary -- AWB International -- a
base fee of AU$39.5 million to run the national pool, the report
notes.

"We believe competition takes costs out of the system, just as
it has in the grain industry generally," Mr Keene said. "It is
only the wheat industry which has retained those costs."

According to Mr. Keene, although there is a shortfall of wheat
on the east coast, a lot of high-quality wheat from northern NSW
and central Queensland had been warehoused.

"The growers there have largely decided not to deliver into the
AWB national pools for the very same reason as they are not in
Western Australia," Mr. Keene said.

It is understood 70% of the West Australian crop has been
warehoused, while growers await the decision on CBH's
application to export wheat, The Australian says.

                          About AWB

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

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

However, after auditing AWB's financial results for the fiscal
year ended September 30, 2006, Brett Kallio, a partner at Ernst
& Young, disclosed that there is inherent uncertainty
surrounding the consolidated entity with regard to matters
associated with the Federal Inquiry into certain Australian
companies in relation to the United Nations Oil-for-Food
Programme.

Mr. Kallio noted that there is uncertainty as to the nature of
the findings of the Oil-for-Food Inquiry and the resultant
impact, if any, on the company's financial position, financial
performance, cash flows and its operations arising directly or
indirectly from the Inquiry.

                          *     *     *

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

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

AWB's September 30, 2006, balance sheet showed total assets of
AU$5.65 billion and total liabilities of AU$4.52 billion
resulting to total shareholders' equity of AU$1.12 billion.


COLLABORATIVE TECHNOLOGIES: Schedules Final Meeting on Jan. 19
--------------------------------------------------------------
Collaborative Technologies Pty Ltd, which is in liquidation,
will hold a final meeting for its members and creditors on Jan.
19, 2007, at 11:00 a.m.

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

The Liquidator can be reached at:

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

                About Collaborative Technologies

Collaborative Technologies Pty Ltd is involved with computer
integrated systems design.

The company is located in New South Wales, Australia.


COUNTRY FINANCE: Undergoes Voluntary Liquidation
------------------------------------------------
At a general meeting held on Dec. 1, 2006, the members of
Country Finance & Insurance Pty Ltd passed a special resolution
to voluntarily liquidate the company's business and distribute
the proceeds of its asset disposal.

The liquidator can be reached at:

         James Dick
         1st Floor, 50 Montgomery Street
         Kogarah, New South Wales 2217
         Australia

                     About Country Finance

Country Finance & Insurance Pty Limited provides management-
consulting services.

The company is located in New South Wales, Australia.


FAMILY BOATS: To Declare First and Final Dividend on Feb. 15
------------------------------------------------------------
Family Boats Pty Ltd will declare the first and final dividend
for its preferential creditors on Feb. 15, 2007.

Creditors are required to submit their proofs of debts by
Jan. 8, 2007, or they will be excluded from sharing in the
dividend distribution.

As reported by the TCR-AP, the company was placed under
voluntary liquidation on June 16, 2006.

The joint liquidator can be reached at:

         D. A. Hurst
         Armstrong Wily
         Chartered Accountants
         Level 5, 75 Castlereagh Street
         Sydney, New South Wales 2000
         Australia

                       About Family Boats

Family Boats Pty Ltd -- http://www.familyboats.com.au/-- sells  
different kinds of boats.

The company is located in New South Wales, Australia.


FORTESCUE METALS: Seeks to Extend Discovery Process to January
--------------------------------------------------------------
On December 11, 2006, Fortescue Metals Group claimed that it
would need until January 2007 to comply with a Federal Court
discovery order and produce documents, including electronic
data, relating to the allegations of the Australian Securities
and Investments Commission that the company misled investors
about the nature of various agreements with Chinese companies
made in late 2004, The West Australian reports.

The paper relates that ASIC lawyer Beau Deleuil told the court
that Fortescue's request for extension suggested that it is
dragging its feet.

The Australian recounts that Fortescue and the ASIC were
originally working to a November 15 deadline for the discovery
process but that was extended by mutual agreement to November
30.

According to the paper, Mr. Deleuil is concerned on granting a
further extension due to serious questions on Fortescue's
methodology of gathering information.

Thus, the ASIC noted that, if necessary, it could provide an IT
expert to work with Fortescue on retrieving the electronic data
needed to fulfill the requirements of the discovery process, The
Australian relates.

But, Fortescue's lawyer, Mark Van Brakel, said the company had
already engaged an IT consultant but it would need until January
to complete the necessary work and compile the data for the
affidavit, the paper says.

Accordingly, Justice Robert Nicholson directed both parties to
confer on what needs to be done before returning to court for a
directions hearing on December 15, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
August 1, 2006, the ASIC sought penalties of:

   -- AU$8 million from the Company, and
   -- AU$7.6 million from Mr. Forrest

over statements that the Company made regarding contracts with
its Chinese partners.

Mr. Forrest's personal stake in Fortescue is worth just over
AU$1 billion, the TCR-AP cited a report from the West.

                        About Fortescue

Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the  
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.

In 2005, Fortescue's chief executive officer, Andrew Forrest,
admitted to a AU$500-million blowout on the cost of port and
rail infrastructure in the Pilbara Project because of price
hikes for steel, fuel, construction materials, and contract
labor.  The Company also disclosed that the hampered progress of
the Pilbara Project brings in the possibility that the Company
may not meet its ore delivery schedule and pushes up costs at
resource developments across Western Australia.  In May 2005,
the Australian Stock Exchange pressured Fortescue to explain
matters about the project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products.  The ASX then referred the matter to the
Australian Securities and Investments Commission, which
commenced a legal action against the Company.

The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on August 23 and November 5, 2004.  In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters.  The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.

                          *     *     *

Fortescue reported total assets of AU$221 million and total
liabilities of AU$84 million as of June 30, 2006.

Fortescue reported a net loss for the past two fiscal years.  
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was AU$2.15
million.


JAMES HARDIE: Receives Expert's Report on Asbestos Presence
-----------------------------------------------------------
On December 8, 2006, the Troubled Company Reporter - Asia
Pacific cited a report from the Australian Associated Press
stating that James Hardie Industries was forced to close a
western Sydney factory after exposing its workers to asbestos.

According to the TCR-AP, James Hardie has temporarily suspended
production at the Rosehill plant to seek advice about asbestos
material at the site.

In a filing with the Australian Securities Exchange dated
December 12, 2006, James Hardie advised that it has received a
report from the independent expert commission to investigate the
presence of asbestos materials at its Rosehill manufacturing
plant.  The investigation examined airborne fiber concentrations
and possible contamination of settled dust and residues within
the site.

The expert concluded that the main production building could be
reopened.

Some contamination of settled dust by asbestos fibers was
identified in the raw materials store.  While monitoring in this
store did not identify measurable levels of airborne asbestos
fibers, the store will remain closed until the recommendations
of the report have been implemented.

James Hardie gave the assurance that it will work closely with
all stakeholders, including unions, to implement all
recommendations contained in the expert's report.

According to Shane Dias, General Manager of James Hardie
Australia, "we erred on the side of caution by closing the plant
to seek professional advice on the concerns raised by union
representatives."

The main production area is expected to open on December 13,
2006, Mr. Dias said, noting that the temporary closure has had
minimal impact on customers and that all employees have been
paid while the investigation was carried out.

                      About James Hardie

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

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

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

By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia.  Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.

In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades.  When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.

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


MARITIME INDUSTRY: Commences Wind-Up Process
--------------------------------------------
On Nov. 29, 2006, the shareholders of Maritime Industry Finance
Company resolved by a special resolution to voluntarily wind up
the company's operations and appointed John Lord as liquidator.

The Liquidator can be reached at:

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

                     About Maritime Industry

Maritime Industry Finance Company Limited provides assistance in
the reform and restructuring of the stevedoring industry through
funding redundancy-related payments.  

The company is located in ACT, Australia.


OLYMPIC AIRLINES: Posts EUR123.7 Million Net Loss for 2005
----------------------------------------------------------
Olympic Airlines S.A. released its financial results for the
year ended Dec. 31, 2006.

The national carrier posted EUR123.7 million in net loss against
EUR715.2 million in revenues for financial year 2005, compared
with EUR87 million in net losses against EUR642.8 million in
revenues for financial year 2004.

As reported in the TCR-Europe on Oct. 24, the Greek government
may face a EUR10,000-a-day penalty for failing to recover EUR161
million in illegal aid allotted to Olympic Airlines.  The
European Commission warned the Greek government of a possible
legal action if the state remains adamant in recovering the
amount from Olympic Airlines.

The Greek government, however, still refused to reclaim the
state aid, saying it would assess the ruling before responding.  
BBC says Greece's position apparently caused the regulator to
lose its patience and requested the European Union Court of
Justice to impose the daily fine.

The daily penalty would continue until Greece recovers all the
money from Olympic Airlines.  Inaction on the part of the Greek
government may push the Commission to raise the fine to
EUR53,000 daily.

                    About Olympic Airlines

Headquartered in Athens, Greece, Olympic Airlines S.A. --
http://www.olympicairlines.com/-- the holding company of the  
Olympic Airways group of companies, flies passengers and cargo
to five continents, including Australia, while offering ground
handling, technical maintenance and information technology
services to third parties.

The group's net loss widened to EUR87 million in 2004 from EUR23
million a year before.  Together with the 2004 deficit,
Olympic's EUR110 million in accumulated losses are nearly
equivalent to its EUR130 million in equity.


PACIFIC TRANSPORTABLES: Members to Hear Liquidator's Report
-----------------------------------------------------------
The members of Pacific Transportables Pty Ltd will meet on
Jan. 16, 2007, at 10:00 a.m., to receive Liquidator P. J.
Douglas' report of the company's wind-up proceedings.

According to the TCR-AP, the company entered wind-up proceedings
on Nov. 3, 2005.

The Liquidator can be reached at:

         Peter J. Douglas
         WDF Professional
         135 Peter Street
         Wagga Wagga, New South Wales 2650
         Australia

                  About Pacific Transportables

Pacific Transportables Pty Ltd is a special trade contractors.

The company is located in New South Wales, Australia.


PEAKHOUR PTY: Liquidators to Present Wind-Up Report on Jan. 16
--------------------------------------------------------------
Peakhour Pty Ltd, which is in members' voluntary liquidation,
will hold a final meeting for its members on Jan. 16, 2007, at
10:00 a.m.

At the meeting, the liquidators will present an account of the
company's wind-up proceedings and property disposal exercises.

The liquidators can be reached at:

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

                       About Peakhour Pty

Peakhour Pty Ltd -- http://www.peakhour.com.au/-- is a 100%  
Australian owned and operated business specializing in mobile
phones and technology related accessories.

The company offers a wide range of mobile handsets, accessories
and technology related products.


POWELL DUFFRYN: To Hold Members' Final Meeting on January 11
------------------------------------------------------------
Powell Duffryn Australia Pty Ltd will hold a final meeting for
its members on Jan. 11, 2007, at 10:00 a.m., to consider the
liquidators' account of the company's wind-up proceedings.

The Troubled Company Reporter - Asia Pacific previously reported
that the company commenced a wind-up of its operations on
March 31, 2005.

The liquidators can be reached at:

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

                      About Powell Duffryn

Powell Duffryn Australia Pty Limited operates holding companies.

The company is located in Victoria, Australia.


PSIVIDA LIMITED: Posts AU$28.2 Mln Net Loss for FY2006, Up 67.7%
----------------------------------------------------------------
pSivida Limited filed its financial report for the year-ended
June 30, 2006, with the United States Securities and Exchange
Commission, showing an increased net loss of AU$28.2 million
from AU$16.8 million for the year ended June 30, 2005, an
increase of approximately AU$11.4 million, or 67.7%.

The company's revenue increased to AU$1.4 million for the year
ended June 30, 2006, from AU$162,000 for the year ended June 30,
2005, an increase of approximately AU$1.2 million or 761.7%.  
This increase was attributable to AU$1.3 million of royalty and
collaborative research and development revenue earned by pSivida
Inc., during the six months ended June 30, 2006.

The company further revealed that it has incurred operating
losses since its inception, during which it has relied primarily
on the proceeds from sales of its equity and debt securities,
consulting revenue, license fees, and collaboration payments to
fund its operations.  At June 30, 2006, the company had an
accumulated deficit of AU$56.9 million.  

Cash and cash equivalents totaled AU$15.4 million at June 30,
2006, compared to AU$12.9 million at June 30, 2005.

At June 30, 2006, the company had current assets of
AU$17,080,192 and current liabilities of AU$23,962,620,
resulting in net current liabilities of AU$6,882,428.

For the year ended June 30, 2006, pSivida incurred a negative
operating cash flow of AU$21,735,693 and a net loss for the year
of AU$28,166,129.

According to the company, under the terms of its initial
convertible note agreement, it was required to maintain net cash
balances in excess of 30% of the outstanding principal balance
(representing approximately AU$6.2 million at June 30, 2006). In
connection with a further amendment of the convertible note
agreement dated October 17, 2006, the required minimum cash
balance has been reduced to US$1.5 million (AU$2.1 million)
through March 30, 2007, after which the original 30% requirement
will apply.

                      Going Concern Doubt

The company noted that its financial statements have been
prepared assuming that it will continue as a going concern.

After auditing the company's consolidated balance sheet as of
June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered
Accountants said that as of October 31, 2006, pSivida has
determined there may be a risk of default associated with
maintaining the US$1.5 million minimum cash balance.  In the
event of a default the note holder is entitled to call the full
value of the liability.  This risk of default, together with the
company's recurring losses from operations and negative cash
flows from operations, raise substantial doubt about its ability
to continue as a going concern.

Deloitte notes that the financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.

                      About pSivida Limited

pSivida Limited -- http://www.psivida.com/-- is an Australian  
company existing pursuant to the Australian Corporations Act
2001 with shares listed on the Australian Securities Exchange,
the NASDAQ Global Market, the Frankfurt Stock Exchange, and
London's OFEX International Market Service.  The company is
committed to biomedical applications of nano-technology and has
as its core focus the development and commercialization of drug
delivery products in the healthcare sector, initially in
ophthalmology and oncology.

The company's corporate headquarter is located at:

         Level 12 BGC Centre
         28 The Esplanade
         Perth WA 6000, Australia
         Tel No. (+61 8) 9226 5099

pSivida also operates subsidiaries in the United Kingdom,
Singapore, Australia, and the United States.

The legal entity that became pSivida was incorporated as the
Sumich Group Ltd in April 1987.  The Sumich Group operated a
business that was placed into administration or receivership in
1998.  pSivida was subsequently formed on December 1, 2000, upon
entering into a court-approved arrangement with Sumich Group's
creditors which fully extinguished all prior liabilities as of
that time.  Subsequently, the company appointed new directors
and officers and re-listed on the Australian Securities Exchange
as pSivida.  The company was then recapitalized through a
placement to investors of 9.3 million ordinary shares at AU$0.30
per share, raising AU$2.79 million.

pSivida revealed that it has not made substantial divestitures
in the past three fiscal years through the present.


ROUSSEL UCLAF: Enters Wind-Up Proceedings
-----------------------------------------
At an extraordinary general meeting of Roussel Uclaf Australia
Pty Ltd held on Dec. 1, 2006, a special resolution was passed to
voluntarily wind up the company's operations.  Accordingly,
Geoffrey Reidy was appointed as liquidator.

The Liquidator can be reached at:

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

                      About Roussel Uclaf

Roussel Uclaf Australia Pty Limited operates holding companies.

The company is located in New South Wales, Australia.


TRANSAX: Sept. 30 Balance Sheet Upside-Down by US$4.1 Million
-------------------------------------------------------------
Transax International Limited filed its third quarter financial
statements for the three months ended Sept. 30, 2006, with the
U.S. Securities and Exchange Commission reporting a US$623,578
net loss on US$1,115,930 of revenues for the three months ended
Sept. 30, 2006, compared with a US$317,780 net loss on
US$948,993 of net revenues in the comparable period of 2005.

At Sept. 30, 2006, the company's balance sheet showed
US$2,003,214 in total assets, US$6,179,904 in total liabilities,
resulting in a US$4,176,690 in total stockholders' deficit.

The company's September 30 balance sheet also showed strained
liquidity with US$849,421 in total current assets available to
pay US$5,222,868 in total current liabilities.

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

              http://ResearchArchives.com/t/s?165b

                     Going Concern Doubt

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

                 About Transax International

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

                          *     *     *

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

Transax International's balance sheet at June 30, 2006, also
showed negative working capital with US$1,085,530 in total
current assets and US$4,943,668 in total current liabilities.


ZINIFEX LIMITED: Rating Unaffected by Umicore Merger, Fitch Says
----------------------------------------------------------------
On December 12, 2006, Fitch Ratings said that Zinifex Limited's
announcement of a proposed transaction with Belgium-based
specialty metals group Umicore to merge their respective zinc
smelting and alloying businesses will have no immediate impact
on its credit rating.  Zinifex has a Long-term foreign currency
Issuer Default rating of 'BB+' with a Stable Outlook.

Zinifex and Umicore announced that they have signed a memorandum
of understanding to combine their respective zinc smelting and
alloying businesses into a newly formed entity, which will be
the world's largest zinc metal producer, with annual zinc alloy
and metal production of approx. 1.2 million tonnes per annum.  
The new company will be headquartered in London and is intended
to operate as an independent entity, with executive management
to be drawn jointly from Zinifex and Umicore.  The transaction
is subject to various regulatory and shareholder approvals with
the new entity targeted to come into existence in the third
quarter of calendar 2007.

Subsequent to the formation of the new venture, it is the
intention of both Zinifex and Umicore to undertake an initial
public offering of shares in the new entity at an "appropriate
time".  Zinifex will initially hold an economic interest of
approximately 60% in the new entity (reflecting the relative
value of its contributed assets) and is expected to monetise
this interest through the IPO of the new entity and possibly
retain a minority stake.

Following the transaction, Zinifex will focus on growing its
mining business, which currently consists of the Century and
Rosebery zinc/lead/silver mines in Australia.  While the
transaction essentially involves the divestment of Zinifex's
smelting assets, which will remove the benefits of vertical
integration and leave the company exposed to the performance of
the two mining operations, the sale of shares in the new entity
through an IPO will realize a significant level of cash to
Zinifex.  The cash injection when combined with an ungeared
balance sheet and strong cash flows from existing mining assets
will provide a strong foundation for Zinifex to grow its higher
margin mining business. Fitch notes that the Century and
Rosebery mines generated segment earnings (before interest, tax
and corporate costs) of AUD836m in fiscal June 2006, which
represented approximately 74% of Zinifex's combined comparable
group earnings (before eliminations) and will retain life of
mine contracts for the supply of concentrates to the new entity
at market prices.  Zinifex has the ability to grow the mining
business both organically (i.e. through the development of the
Dugald River project) and through acquisition (due to an
ungeared balance sheet and significant cash holdings), although
the growth through acquisition may result in increased event
risk.

While the full details of the cash amount to be monetized from
the IPO and strategy to grow the mining assets are still to be
determined, Zinifex's expected pro-forma credit profile after
giving effect to the proposed transaction is still viewed as
reasonably solid and consistent with existing ratings (with EBIT
earnings of around AU$800 million from mining assets, nil net
debt, significant cash holdings and possibly a minority interest
in the new smelting entity), although the company will initially
have a narrower asset base which is expected to be replaced over
time through growth in mining assets.  Fitch also views the
rating to be more vulnerable to event risk including future
financial policies with respect to capital structure (including
any potential return of capital following the IPO of its
interest in the new smelter entity or increase in leverage) and
strategies in relation to growing the mining business (including
development risk in relation to new projects and integration
risks from any acquisitions), however, Fitch notes that this
could also improve Zinifex's business profile.  Other factors,
which could pressure ratings include the inability of Zinifex to
extend mine lives (of both existing and new assets) and
operational performance of Century and Rosebery.

Zinifex is one of the world's largest integrated zinc and lead
producers.  Zinifex was formed in April 2004 (through an IPO on
the Australian Stock Exchange) to acquire and operate certain
assets that were owned by Pasminco Limited, which went into
bankruptcy in 2001.


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

ANSETT WORLDWIDE: Appoints Joint Liquidators
--------------------------------------------
Thomas Andrew Corkhill and Iain Ferguson Bruce were appointed as
joint and several liquidators of Ansett Worldwide Aviation Sales
Ltd by a special resolution of the company passed on Nov. 27,
2006.

The Joint and Several Liquidators can be reached at:

         Thomas Andrew Corkhill
         Iain Ferguson Bruce
         8/F, Gloucester Tower
         The Landmark
         15 Queen's Road, Central
         Hong Kong


CSK CHINA: Liquidators Cease to Act
-----------------------------------
Rainier Hok Chung Lam and John James Toohey ceased to act as
joint and several liquidators of CSK China Ltd on Nov. 28, 2006.

The former Liquidators can be reached at:

         Rainier Hok Chung Lam
         John James Toohey
         22/F, Prince's Building
         Central, Hong Kong


DESMOND PROPERTIES: Undergoes Voluntary Wind-Up
-----------------------------------------------
At a general meeting held on Nov. 27, 2006, the members of
Desmond Properties Ltd resolved to voluntarily wind up the
company's operations.

In this regard, Chan Kwai Ping and Wong Kwok Wai Albert were
appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Chan Kwai Ping
         Wong Kwok Wai, Albert
         Suite 2302-7
         308 Des Voeux Road, Central
         Hong Kong


FULLY CORPORATION: Names Lui Yun Lam as Liquidator
--------------------------------------------------
At an extraordinary general meeting held on Nov. 28, 2006, the
members of Fully Corporation Ltd appointed Lui Yun Lam as
liquidator by virtue of a special resolution.

Mr. Lam's appointment was subsequently confirmed at the
creditors' meeting held that same day.

The Liquidator can be reached at:

         Lui Yun Lam
         12/F, Bel Trade Commercial Building
         1-3 Burrows Street, Wanchai
         Hong Kong


GRANDWIN ENGINEERING: Court to Hear Wind-Up Petition on Jan. 10
---------------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Grandwin Engineering Ltd on Jan. 10, 2007, at
9:30 a.m.

Li Pui Yuen filed the petition with the Court on Nov. 10, 2006.

The solicitors for the Petitioner can be reached at:

         Chong Yan-Tung Chris
         34/F, Hopewell Centre
         183 Queen's Road East
         Wanchai, Hong Kong


HK CHINA: Members to Receive Wind-Up Report on Jan. 19
------------------------------------------------------
The members of Hong Kong China IPO Society Ltd will meet on
Jan. 19, 2007, at 10:00 a.m., to receive a report regarding the
company's wind-up proceedings from Liquidator Peter P.F. Chan.

According to the TCR-AP, the company's members resolved to
voluntarily wind up the company's operations on Nov. 7, 2006.

The Liquidator can be reached at:

         Peter P.F. Chan
         2/F, Caltex House
         258 Hennessy Road
         Wanchai, Hong Kong


HKI PROPERTIES: Moody's Assigns Provisional B2 Ratings
------------------------------------------------------
On December 13, 2006, Moody's Investors Service assigned a
provisional (P)B2 senior secured rating to HKI Properties Ltd's
proposed US$100 million fixed rate notes issued under a private
placement.  At the same time, Moody's also assigned HKI a (P)B2
corporate family rating.

This is the first time that Moody's has assigned ratings to HKI,
and expects to affirm and remove them from their provisional
status upon the completion of the bond issuance.

"The (P)B2 rating has factored in HKI's solid position in mixed-
use property development and quality products at prime locations
of major cities in China, as well as relatively strong cash flow
metrics on a projected basis," says lead analyst Kaven Tsang,
adding "These factors are however tempered by its:

    1. relatively aggressive balance sheet structure;

    2. short track record in corporate governance and internal
       control; and

    3. longer cash generation cycle of commercial property
       project and hence higher funding needs during the
       construction period.

"HKI's projected adjusted debt/capitalization is comparatively
high versus other rated property developers in China.  The
rating has factored in the company's effort to de-leverage,
which will depend on the company's sales and presales results.  
As such, the company's ability to meet its business plan and
financial projection will be a key rating driver in the near-to-
medium term," Tsang further comments.

The rating outlook is stable, reflecting Moody's expectation
that HKI will manage its expansion and land acquisitions in a
prudent manner thereby generating positive operating cash flows
in the next 2 years for de-leveraging and continue to improve
its internal control system.

HKI Properties Limited is a Hong Kong-based property company
developing high-end office, retail, residential and hotel
properties in China.  Focusing on mixed-use properties in
Beijing, the company has also diversified to Chongqing,
Zhangzhou, and Qingdao over the past two to three years.  HKI
currently has an attributable land bank of 3.2 million sqm in
four cities.


HOPE GOOD: To Hold Members' Final Meeting on January 8
------------------------------------------------------
Hope Good Ltd, which is in members' voluntary liquidation, will
hold a final general meeting for its members on Jan. 8, 2007, at
11:00 a.m.

During the meeting, the members will receive the liquidator's
account of the company's wind-up proceedings and property
disposal exercises.

The liquidator can be reached at:

         Chan Pak Yan, Billy
         Rm. 3414, Yau Ning House
         Tin Yau Court
         Tin Shui Wai, New Territories
         Hong Kong


MATTEL CHINA: Creditors' Proofs of Debt Due on January 8
--------------------------------------------------------
Mattel China Properties Ltd, which is in voluntary wind-up,
requires its creditors to submit their proofs of debt by
Jan. 8, 2007.

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

The liquidator can be reached at:

         Philip Brendan Gilligan
         7/F, Alexandra House
         18 Chater Road, Central
         Hong Kong


MINSEC MANAGEMENT: Members Pass Resolution to Wind Up Firm
----------------------------------------------------------
The members of Minsec Management Services Company Ltd passed a
special resolution to voluntarily wind up the company's
operations and appointed Sung Mi Yin as liquidator.

Accordingly, Liquidator Sung is given the authority to divide
the company's assets.

The Liquidator can be reached at:

         Sung Mi Yin
         Suite No. A, 11/F
         Ritz Plaza, 122 Austin Road
         Tsimshatsui, Kowloon
         Hong Kong


PACIFIC PRECISION: Creditors' Proofs of Claim Due on Dec. 29
------------------------------------------------------------
Liquidators Ying Hing Chiu and Chung Miu Yin Diana require the
creditors of Pacific Precision Ltd to submit their proofs of
claim by Dec. 29, 2006.

Creditors who fail to submit proofs of claim by the due date
will be excluded from sharing in any distribution the company
will make.

The Joint Liquidators can be reached at:

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


TCL CORP: European Venture Remains a Financial Burden
-----------------------------------------------------
TCL Corp's television venture with Thomson SA remains
unprofitable for a second year in 2006, after a first half loss
of US$90 million, Bloomberg says citing company's chairman Li
Dongsheng as saying.

However, TCL's second-half North American television sales will
be profitable, compared with US$11 million loss in the first six
months, Mr. Li said without elaborating.

"The restructuring costs in Europe had exceeded expectations
because of local rules on laying off employees," Mr. Li told
reporters in Beijing.  "The European TV business may break even
next year."

The expected loss in Europe underscores the urgency for
Shenzhen, China-based TCL to overhaul its TV unit, formed in
2004 from buying Thomson's TV and DVD-player businesses,
Bloomberg relates.

Bloomberg recounts that in November 2003, TCL and Thomson agreed
to merge their TV and DVD-player units.  In August 2005, Thomson
exercised its option to convert its 33% stake in the venture to
shares of TCL Multimedia Technology Holdings Ltd., raising its
stake in the company to 29.3%.  TCL Corp. owns 39% of TCL
Multimedia.

TCL Corp also attributes its loss to its slow response to
customers who were swapping cathode-ray tube sets for flat
screens.  According to Mr. Li, the company was unprepared for
Europe's technology change, but notes that they are "trying to
find the right direction for Europe."

Part of the company's restructuring in Europe was giving Thomson
the approval to sell its stake in TCL Multimedia and allow the
venture to restart its business in Europe under a new business
model after the wind-down of its TTE Corp. Europe unit.

"Our original focus was to get North America profitable first
then look at Europe," Mr. Li said.

                        About TCL Corp.

Headquartered in Guangdong Province, China, TCL Corporation --
http://www.tcl.com-- Corporation is principally engaged in the  
manufacture of TV sets and handset products.

Xinhua Far East China Ratings has downgraded on April 7, 2006,
the domestic currency issuer credit rating of TCL Corporation to
"BB" from "BBB".  The ratings outlook remains negative.

                      About TCL Multimedia

Headquartered in New Territories, Hong Kong, TCL Multimedia
Technology Holdings Limited -- http://www.tclhk.com/-- designs,  
manufactures and sells 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 Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific
reported that the company posted CNY763 million losses of TCL
Multimedia Technology Holdings Limited's European operations,
which caused losses of the TCL Corp. group to widen to CNY737.56
million.

TCR-AP recounts that in 2004, TCL acquired the TV unit of French
electronics firm Thomson, which uses the Thomson brand in Europe
and RCA in North America.  TCL grouped all its TV businesses
under TMT.


* Chinese Banks' Financial Strength Improves But Flaws Remain
-------------------------------------------------------------
While the standalone financial strength of many Chinese banks
clearly has improved, nearly all of the institutions under Fitch
Rating's coverage continue to display material weaknesses that,
from a ratings perspective, warrant ongoing caution, at least
for the time being, Fitch said in a report published on December
13, 2006.

"Key among these concerns is the rapidity of recent
restructuring and the fact that the impetus for most reforms
have been externally- rather than internally-driven," said
Charlene Chu, director in Fitch's Financial Institutions team in
Beijing, in the report entitled "Chinese Banks - 2006 Ratings
Season Review & 2007 Outlook".

"While the transformation of bank financials is undoubtedly
positive, deeper, more difficult reforms of banks' overall
credit culture, risk management, and corporate governance remain
in the very early stages, and as such the risk of a subsequent
deterioration remains quite high," Ms. Chu said.

The report highlights Chinese banks' performance metrics
continued to broadly improve in 2005 and H106, reflecting the
success of recent reforms, while at the same time Chinese banks'
risk management systems continue to strengthen.

"Nevertheless, the severely impaired state from which most
institutions set out means that despite advances Chinese banks
are still quite weak on a relative scale compared to
international peers.  In this context it is important to
remember that recent progress has occurred during a period of
very robust GDP growth of upwards of 10%," added Ms. Chu.

The agency states that it has witnessed noticeable progress over
the years in both the form and function of Chinese banks' risk
management systems, including the establishment of new
organizational structures that provide greater centralization of
loan approval authority.  "We consider the effort to centralize
credit decisions to be one of the most encouraging developments
we've seen in the banking sector of late, as it takes direct aim
at breaking the political influence over lending at the branch
level, places decision-making authority in more experienced
hands, and permits more comprehensive monitoring and management
of institutions' risks."

Looking into 2007, Fitch expects to see the performance of
Chinese banks continue to broadly strengthen as a number of
second-tier banks move forward with restructuring, although the
agency notes that this is likely to vary significantly at an
institutional level.  The report states that a number of recent
trends also could prove to be increasingly challenging next
year, including intensifying competition from foreign banks,
ever-increasing liquidity, and emergent disintermediation.


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

ANDHRA BANK: Says CRR Hike May Hit Profitability
------------------------------------------------
The hike in Cash Reserve Ratio -- the percentage of deposits
banks keep with the Reserve Bank of India -- is likely to
marginally affect Andhra Bank's profitability, Zee News Ltd.
reports citing Bank CMD K Ramakrishanan.

On Dec. 8, 2006, the RBI decided to raise CRR by 50 basis points
to 0.5%.

"Rise in CRR would take a marginal hit on its net profit, which
translates to INR2.8 crore for the fiscal," Zee News quotes Mr.
Ramakrishanan as telling reporters.

RBI's decision means Andhra Bank would have to transfer an
additional INR300 crore, Mr. Ramakrishanan says.

However, the CMD points out, the bank has headroom to raise
INR1,400 to INR1,500 crore through Tier II Capital.

                      About Andhra Bank

Headquartered in Hyderabad, India, Andhra Bank --
http://www.andhrabank-india.com/ -- offers various products and  
services including deposits, loans, corporate banking products,
non-resident Indian services and technology products.  The
deposits offered by the Bank include current deposits, savings
bank deposits and term deposits.  It offers housing, personal,
mortgage and agricultural loans.  Under corporate banking, it
offers working capital loans, export and import finance, foreign
currency loans, term finance and corporate loans.

As of June 2006, the Bank rendered services through 1,788
business delivery channels consisting of 1,216 branches, 123
extension counters, 412 ATMs and 37 satellite offices spread
over 21 states and two union territories in India.

                          *     *     *

On September 16, 2002, Fitch Ratings assigned Andhra Bank a C/D
Individual Rating.


BANK OF BARODA: Workmen Union Plans One-Day Strike Today
--------------------------------------------------------
Bank of Baroda informs the Bombay Stock Exchange that Workmen
Unions' Bank Employees Federation of India and All India Bank
Employees' Association have served on the bank a notice for a
one-day strike today, December 14, 2006.

The bank assures BSE that it is taking all the necessary steps
in terms of the existing guidelines for smooth functioning its
branches and offices to deal with the strike in the event ot
materializes today.

                      About Bank of Baroda

Headquartered in Mumbai, India, Bank of Baroda --  
http://www.bankofbaroda.com/-- is a provider of banking
services in India.  The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.

Fitch Ratings, on June 1, 2005, gave Bank of Baroda an
individual rating of C/D.


BANK OF INDIA: To Declare 20% Interim Dividend
----------------------------------------------
Bank of India's board of directors declared interim dividend at
20% i.e. INR2 per share for the financial year 2006-07.

The board arrived at the decision at its meeting on December 4,
2006.

In this regard, the bank fixed December 20, 2006, as the Record
Date for the purpose of payment of Interim Dividend.  The
Dividend Warrants will be payable at par to the shareholders
from December 30, 2006.

                     About Bank of India

Bank of India -- http://www.bankofindia.com/-- 2,628 branches   
in India spread over all states/union territories, including 93
specialized branches.  The bank provides a range of financial
products and services, including numerous credit schemes,
deposit schemes, cash management services, credit/debit cards,
deposit vaults and corporate bonds.  It also extends finance to
small and medium enterprises and small-scale industries.  It
provides a variety of loans, such as mortgage loans, educational
loans, auto finance loans, holiday loans, personal loans and
home loans.  The bank offers Internet banking services for both
the retail and corporate clients.

The bank also operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
September 11, 2006, that Standard & Poor's Ratings Services
assigned its BB- rating to Bank of India's (BoI; BB+/Positive/B)
proposed upper Tier II subordinated and hybrid Tier I notes
under its US$1 billion MTN program.

At the same time, Standard & Poor's raised its rating on the
proposed subordinated notes, or lower Tier II notes, under the
MTN program to BB from BB-.

S&P had earlier given Bank of India both BB+ long-term local and
foreign issuer credit ratings, and B ratings on its short-term
foreign and local issuer credit.


BANK OF INDIA: To Acquire 76% Stake in Indonesia's Bank Swadesi
---------------------------------------------------------------
In a filing with the Bombay Stock Exchange, Bank of India
discloses that it has decided to acquire 76% shareholding of
Indonesia's M/s. P T Bank Swadesi Tbk.

In this regard, the bank signed a conditional sale purchase
agreement with the majority shareholders of M/s. P T Bank
Swadesi Tbk on December 11, 2006.

The acquisition will be completed after obtaining necessary
approval or confirmations from Bank Indonesia and Capital Market
Regulators, etc. in Indonesia.

                     About Bank of India

Bank of India -- http://www.bankofindia.com/-- 2,628 branches   
in India spread over all states/union territories, including 93
specialized branches.  The bank provides a range of financial
products and services, including numerous credit schemes,
deposit schemes, cash management services, credit/debit cards,
deposit vaults and corporate bonds.  It also extends finance to
small and medium enterprises and small-scale industries.  It
provides a variety of loans, such as mortgage loans, educational
loans, auto finance loans, holiday loans, personal loans and
home loans.  The bank offers Internet banking services for both
the retail and corporate clients.

The bank also operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
September 11, 2006, that Standard & Poor's Ratings Services
assigned its BB- rating to Bank of India's (BoI; BB+/Positive/B)
proposed upper Tier II subordinated and hybrid Tier I notes
under its US$1 billion MTN program.

At the same time, Standard & Poor's raised its rating on the
proposed subordinated notes, or lower Tier II notes, under the
MTN program to BB from BB-.

S&P had earlier given Bank of India both BB+ long-term local and
foreign issuer credit ratings, and B ratings on its short-term
foreign and local issuer credit.


BANK OF INDIA: Annuls Forfeiture of 200 Equity Shares
-----------------------------------------------------
In a filing with the Bombay Stock Exchange, the Bank of India
disclosed that it has, after due consideration of the
representation received from the shareholders, "annulled the
forfeiture of 200 equity shares" on November 20, 2006.

After the annulment, the paid up capital of the bank totals
48,74,01,800 equity shares of INR10 each fully paid up
INR487,40,18,000.  The amount does not include amount of shares
forfeited totaling INR74,01,500.

                     About Bank of India

Bank of India -- http://www.bankofindia.com/-- 2,628 branches   
in India spread over all states/union territories, including 93
specialized branches.  The bank provides a range of financial
products and services, including numerous credit schemes,
deposit schemes, cash management services, credit/debit cards,
deposit vaults and corporate bonds.  It also extends finance to
small and medium enterprises and small-scale industries.  It
provides a variety of loans, such as mortgage loans, educational
loans, auto finance loans, holiday loans, personal loans and
home loans.  The bank offers Internet banking services for both
the retail and corporate clients.

The bank also operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
September 11, 2006, that Standard & Poor's Ratings Services
assigned its BB- rating to Bank of India's (BoI; BB+/Positive/B)
proposed upper Tier II subordinated and hybrid Tier I notes
under its US$1 billion MTN program.

At the same time, Standard & Poor's raised its rating on the
proposed subordinated notes, or lower Tier II notes, under the
MTN program to BB from BB-.

S&P had earlier given Bank of India both BB+ long-term local and
foreign issuer credit ratings, and B ratings on its short-term
foreign and local issuer credit.


GULFMARK OFFSHORE: Earns US$39.8 Million in 2006 Third Quarter
--------------------------------------------------------------
Gulfmark Offshore, Inc. reported a US$39.8 million net income on
US$75.8 million of revenues for the third quarter ended
Sept. 30, 2006, compared with a US$13 million net income on
US$53 million of revenues for the same period in 2005.

The increase in revenue compared to the third quarter a year ago
was primarily the result of increased day rates in all regions
and increased utilization in the company's North Sea and
Southeast Asia regions.  The company disclosed that the third
quarter's net income and revenues figures represent the highest
quarterly net income and revenue in the history of the company.

At Sept. 30, 2006, the company's balance sheet showed
US$699.5 million in total assets, US$287.1 million in total
liabilities, and US$412.4 million in total stockholders' equity.

Full-text copies of Gulfmark Offshore's third quarter financial
statements are available for free at:

            http://researcharchives.com/t/s?14ae

GulfMark Offshore, Inc. -- http://www.gulfmark.com/--   
headquartered in Houston, Texas, is a provider of offshore
marine services primarily to oil and gas exploration production
firms in India, Brazil and West Africa, among others.

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 3, 2006, Standard & Poor's Ratings Services lowered the
corporate credit rating on Gulfmark Offshore Inc. to 'B+' from
'BB- and the company's senior unsecured rating to 'B' from 'B+'.  
Outlook was revised to stable from negative.


GULFMARK OFFSHORE: Sells 2 Million Shares to Jefferies & Co.
------------------------------------------------------------
GulfMark Offshore, Inc., has agreed to issue and sell 2,000,000
shares of its common stock to Jefferies & Company, Inc. at a
price of US$38.50 per share.  GulfMark has also granted
Jefferies & Company an option to acquire an additional 300,000
shares to cover over-allotments.  The shares are being resold by
Jefferies & Company to the public under a shelf registration
statement.

GulfMark estimates that it will receive net proceeds from this
offering of US$76.9 million (US$88.4 million if the underwriter
exercises its over-allotment option in full), after deducting
estimated offering expenses of US$150,000 payable by it.  
GulfMark intends to use those net proceeds to repay amounts
borrowed under its existing credit facility and for general
corporate purposes, which may include funding of its new vessel
construction program and the acquisition of other vessels.

The offering is being made only by means of a prospectus and
related prospectus supplement, a copy of which may be obtained
from:

          Jefferies & Company, Inc.
          Attn: Prospectus Department
          520 Madison Avenue
          New York, New York 10022

GulfMark Offshore, Inc. -- http://www.gulfmark.com/--   
headquartered in Houston, Texas, is a provider of offshore
marine services primarily to oil and gas exploration production
firms in India, Brazil and West Africa, among others.

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 3, 2006, Standard & Poor's Ratings Services lowered the
corporate credit rating on Gulfmark Offshore Inc. to 'B+' from
'BB- and the company's senior unsecured rating to 'B' from 'B+'.  
Outlook was revised to stable from negative.


GULFMARK OFFSHORE: Names Bruce A. Streeter as Chief Executive
-------------------------------------------------------------
GulfMark Offshore, Inc.'s board of directors elected Bruce A.
Streeter as Chief Executive Officer of the company.

Mr. Streeter will continue to serve as President of GulfMark, a
position he has held since 1990, and as a Director of the
Company, having first been elected in 1997.  Mr. Streeter
currently serves as a Board Member and is the past President of
the International Support Vessel Owner's Association.

Prior to his involvement with the Company, he was General
Manager of the offshore marine division of Offshore Logistics.  
Mr. Streeter graduated from the University of North Carolina in
1970 and obtained a Masters degree from Providence College in
1977.  He served in the U.S. Navy from 1970-1977 and remained in
the Naval Reserve retiring as a Captain.

Mr. David Butters, Chairman of the Board, said, "Bruce has been
instrumental in taking a small regional owner of supply boats
and transforming it into an operator of one of the most modern
fleets of sophisticated offshore vessels in the industry.  
Bruce's appointment as Chief Executive Officer represents
not only a recognition of his past success in positioning
GulfMark in a commanding position within the offshore industry,
but also reaffirms GulfMark's intent to build and expand the
company to accommodate the current strong demand for its
offshore services."

GulfMark Offshore, Inc. -- http://www.gulfmark.com/--   
headquartered in Houston, Texas, is a provider of offshore
marine services primarily to oil and gas exploration production
firms in India, Brazil and West Africa, among others.

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 3, 2006, Standard & Poor's Ratings Services lowered the
corporate credit rating on Gulfmark Offshore Inc. to 'B+' from
'BB- and the company's senior unsecured rating to 'B' from 'B+'.
Outlook was revised to stable from negative.


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

BANK NIAGA: Appoints Hashemi Albakri as President
-------------------------------------------------
Shareholders of PT Bank Niaga Tbk appointed Hashemi Albakri bin
Bakar as the bank's president, replacing Peter Stok, Bloomberg
News reports.

The Troubled Company Reporter - Asia Pacific reported on Oct. 4,
2006, that President Director Peter B. Sto[c]k has expressed his
intention to resign from his post at the bank at the end of
2006.

Bloomberg cites the bank as saying in a press statement that the
replacement will be effective on January 1, 2007, or after
gaining approval from central bank.

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

                          *     *     *

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

These ratings were unaffected:

   -- Issuer rating of Ba3. Outlook stable;

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

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

Additionally, Fitch Ratings gave a B+ rating to Bank Niaga's
proposed US$100 million, 10-year subordinated debt issue.  At
the same time, Fitch has affirmed the bank's existing ratings
including Long-term Senior foreign currency rating of 'BB-' (BB
minus), Individual rating of D, and Support rating of 4.


BANK NIAGA: To Sell IDR2 Trillion Bonds in 2007
-----------------------------------------------
PT Bank Niaga Tbk plans to sell up to IDR2 trillion of bonds
next year, Bloomberg News reports, citing the bank's newly
appointed president, Hashemi Albakri bin Abu Bakar.

According to the report, Mr. Abu Bakar said that Bank Niaga has
the option to sell bonds to refinance its debt.

Bloomberg notes that due to lower borrowing cost companies,
including Bank Niaga, are tapping the debt market to boost
lending and refinance debt.

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

                          *     *     *

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

These ratings were unaffected:

   -- Issuer rating of Ba3. Outlook stable;

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

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

Additionally, Fitch Ratings gave a B+ rating to Bank Niaga's
proposed US$100 million, 10-year subordinated debt issue.  At
the same time, Fitch has affirmed the bank's existing ratings
including Long-term Senior foreign currency rating of 'BB-' (BB
minus), Individual rating of D, and Support rating of 4.


BERAU COAL: Fitch Assigns Final 'B+' Rating To Unsecured Notes
--------------------------------------------------------------  
Fitch Ratings has assigned a final rating of 'B+' with a
Recovery Rating of 'RR4' to the US$325 million senior unsecured
notes due 2011 issued by Empire Capital Resources Pte. Ltd. and
guaranteed by PT Berau Coal (rated 'B+'/Stable).

The rating action follows the completion of the notes issue and
receipt of documents conforming to information previously
received.  The final rating is the same as the expected rating
assigned on Nov. 23, 2006.  The two-part issue has a bullet
repayment of US$225 million on maturity, with the remaining
US$100 million being amortized equally over 16 quarterly
installments beginning in March 2008.

Berau is Indonesia's fifth-largest coal producer, producing
9.2 million tonnes of coal in 2005 (estimated production of
10.9 million tonnes in 2006).  Berau plans to use proceeds of
the issue to advance a loan of approximately US$250 million to
shareholders, repay all existing debt and retain the balance for
capital expenditure and general corporate purposes.  Berau
achieved revenue of US$249.6 million, EBITDA of US$51.6 million
and net income of US$19.4 million in 2005.


BERAU COAL: Merrill Lynch Places US$325 Million Dual Tranche
------------------------------------------------------------
Bookrunner Merrill Lynch has priced a dual tranche
US$325 million fund raising exercise for PT Berau Coal, Finance
Asia relates.

According to the report, the deal, which was launched in late
November, consists of US$225 million five-year non-call three
fixed-rate tranche and US$100 million amortizing five-year
floating rate notes.  Both tranches priced at the tight end of
revised guidance, Finance Asia says.

As reported by the Troubled Company Reporters - Asia Pacific on
Nov. 29, 2006, Berau Coal began marking the two-part deal last
week.

The TCR-AP reported on Nov. 27 that Moody's Investors Service
assigned a provisional P(B1) rating to the proposed
US$325 million senior secured bond to be issued by Empire
Capital Resources Pte Limited, which is 100% owned and
guaranteed by Berau.

Fitch Ratings, meanwhile, assigned an expected rating of 'B+'
and an expected recovery rating of 'RR4' to the proposed senior
unsecured notes, the TCR-AP said in a separate report.

According to Finance Asia, Merrill initially marketed the deal
at 9.75% for the fixed-rate notes and 400bp over Libor for the
FRN, however, as the deal picked up traction, Merrill tightened
guidance to a range of 9.375% to 9.625% and 375bp to 400bp over,
respectively.  
   
The report notes that when the deal closed, the fixed-rate note
priced at par with a coupon of 9.375%, a spread of 485.9bp over
US Treasuries.  While the FRN also priced at par with a coupon
of 375bp over Treasuries.  The FRN begins amortizing in March
2008.

Finance Asia notes that the deal garnered strong demand, closing
with a final order book of US$3 billion, an over subscription
ratio of over nine times with over 120 accounts taking part.  
The order book was split 75% into the fixed-rate tranche and 25%
into the FRN.

Finance Asia says that the fixed-rate deal was sold 55% into
Asia, 21% into Europe and 24% into the US.  Indonesian accounts
made up 9% of the Asian book.  By investor type, this book was
split 64% into funds, 28% banks, 2% insurers and 6% went to
public banks and others.

The report relates that for the FRN, 54% of the book went to
Asian accounts, 27% went to Europe and the remaining 19% went to
the US.  By investor, funds bought the majority accounting for
63%, followed by banks with 36% and public banks and others
taking the remaining 1%.


Headquartered in East Kaliman, PT Berau Coal --
http://www.beraucoal.co.id/-- is Indonesia's fifth largest  
producer and exporter of thermal coal.  It operates three active
mines at a single site in East Kalimantan.  It has estimated
resources of 654.2 million tons with probable reserves estimated
at 61.6mt and proven mineable reserves of 127.6mt.

On Nov. 24, 2006, Moody's Investors Service has assigned a
provisional (P) B1 corporate family rating to PT Berau Coal.  At
the same time, Moody's has assigned a provisional P(B1) rating
to the proposed 5-year, US$325 million senior secured bond to be
issued by Empire Capital Resources Pte Limited, which is 100%
owned and guaranteed by Berau.  The rating outlook is stable.
This is the first time that Moody's has assigned a rating to
Berau.

Fitch Ratings has assigned 'B+' Long-term foreign and local
currency Issuer Default ratings to Berau Coal.


CORUS GROUP: Chairman Favors Companhia Siderurgica's Bid
--------------------------------------------------------
Jim Leng, Corus Group Plc's chairman, gave his approval to the
515-pence-a-share offer presented by Companhia Siderurgica
Nacional, The Times of India reports.

Chairman Leng believes that the merger with the Brazilian
steelmaker is desirable because "the combination of the two
businesses will create a strong platform from which to compete
and grow in an increasingly global market."

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Companhia Siderurgica agreed to buy Corus for
GBP5.8 billion (US$11.4 billion) in cash and assume debt,
topping a 500-pence-a-share offer that Corus had agreed with
CSN's Indian rival bidder, Tata Group.

The Times says that Corus shareholders are expected to cast
their votes on Dec. 20.

Corus indicated Monday that Companhia Siderurgica's offer has
been sweetened by talks of cost savings and easy access to high
quality, low-cost iron ore, the Times relates.

Companhia Siderurgica Chairman and Chief Executive Officer
Benjamin Steinbruch was quoted by the Times as saying: "The
strategic impetus for this combination is growth-growth in
Brazil, in Europe and for our combined workforces.  Our goal is
to unlock the value of our iron ore assets through Corus,
transforming them into cost-effective, high-quality steel
products using Corus' engineering capabilities and its excellent
European distribution platform.  This is a winning combination
for all stakeholders."

Companhia Siderurgica seems to be covering all bases and leaves
Tata with no room to maneuver.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company.  Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                   About Companhia Siderurgica

Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages.  This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.

                        About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.   It also manufactures
primary aluminum products.  Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.


                          *     *     *

As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.

In March 2006, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating for Corus Group on
CreditWatch.

At the same time, Fitch Ratings changed Corus Group's outlook
to Positive from Stable and affirmed its Issuer Default Rating
at BB-.


MARSH & MCLENNAN: Still Considering Putnam Investment Spinoff
-------------------------------------------------------------
Marsh & McLennan Companies says that it is still considering
whether to sell or keep its Boston-based subsidiary, Putnam
Investments, The Associated Press reports.

According to AP, Marsh & McLennan's chief executive officer,
Michael Cherkasky, told an investor conference that Putnam
Investments attracted a high number of interested parties and
that a variety of options were under discussion.

Mr. Cherkasky said that he expected a decision by the end of
2006, but acknowledged the timetable could slip into next year,
the report relates.

The report points out that Putnam Investments employs more than
3,000 workers.  In addition to its Boston headquarters, Putnam
has offices in Andover, Franklin and Norwood, Massachusetts.

The firm paid more than US$190 million in 2003 to settle federal
and state investigations into mutual fund trading abuses, the
report recounts.  The report relates that the mutual fund
company's holdings dropped by about US$79 billion as a result of
the market-timing scandal.

Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a  
global professional services firm with annual revenues of
approximately US$12 billion.  It is the parent company of Marsh,
the world's leading risk and insurance services firm; Guy
Carpenter, the world's leading risk and reinsurance specialist;
Kroll, the world's leading risk consulting company; Mercer, a
major global provider of human resource and specialty consulting
services; and Putnam Investments, one of the largest investment
management companies in the United States.  Approximately 55,000
employees provide analysis, advice, and transactional
capabilities to clients in over 100 countries, including
Indonesia, Australia, China, India, Japan, Korea and Singapore.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+' preferred
stock ratings to Marsh & McLennan's unlimited universal shelf.
Standard & Poor's also affirmed its 'BBB' counterparty credit
rating on MMC.  The outlook in negative.

As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Moody's Investors Service assigned provisional
ratings to Marsh & McLennan's new universal shelf registration,
including a (P)Ba1 rating on the Company's provisional preferred
stock.  The rating outlook for MMC remains negative.


MEDCO ENERGI: Wins Drilling Rights In Yemen
---------------------------------------------
PT Medco Energi Internasional Tbk and its partners have won
drilling rights in two oil fields in Yemen, Bloomberg News
reports, citing Medco President Hilmi Panigoro.

According to the report, Mr. Panigoro said that the company,
which will have a 45% stake in so-called Block 82 and 83, will
be the operator of the areas, located in close vicinity with
other producing fields.

Bloomberg relates that Indian Oil Corp. will hold a 30% share in
the areas while Kuwait Energy Co. will hold the remaining 25%.

Mr. Panigoro said in an interview that Medco Energi plans to
boost exploration abroad to meet its target of increasing output
by 15% a year, the report recounts.

The report says that the company plans to spend as much as
US$50 million next year to explore for oil and gas outside
Indonesia.

According to the latest BP Statistical Review of World Energy,
Yemen is the smallest crude producer on the Arabian Peninsula,
pumping 426,000 barrels a day of oil in 2005.

Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com-- is engaged in  
the exploration, production of and support services for oil and
natural gas and other energy industries, including onshore and
offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities. Exploration and production
of oil and gas accounted for 78% of 2001 revenues; drilling
services, 15%; and methanol, 7%.

Medco Energy also has operations in the United States and in
Libya.

The Troubled Company Reporter - Asia Pacific stated on May 10,
2006, that Moody's Investors Service has affirmed the B1 local
currency corporate family rating of PT Medco Energi
Internasional.  At the same time, Moody's affirmed the B2 the
senior unsecured bond rating of MEI Euro Finance Ltd, which I
guaranteed by Medco.  The outlook was downgraded to negative in
August 2006.

Standard & Poor's Ratings Services revised its outlook on
Indonesia's PT Medco Energi Internasional Tbk. to negative from
stable.  Standard & Poor's also affirmed its "B+" corporate
credit rating on Medco, an Indonesia-based oil and gas
exploration and production company.


PHILLIPS-VAN HEUSEN: Moody's Upgrades Corporate Rating to 'B2'
--------------------------------------------------------------
Moody's Investors Service upgraded Phillips Van Heusen
Corporation's corporate family rating to Ba2 from Ba3.

"The upgrade reflects positive trends in the company's
performance, with improvement in operating margins across the
company's various business units and the positive impact on
credit metrics following the conversion of all remaining
redeemable preferred shares to common stock in 2006" said
Moody's Vice President Scott Tuhy.

The company's senior secured notes were upgraded to Baa3 from
Ba1 and the company's senior unsecured notes were upgraded to
Ba3 from B1.

The rating outlook is stable, reflecting Moody's expectations
the company will sustain financial metrics appropriate for the
rating category.

The following ratings were affected by this action:

   * Ratings/Assessments Upgraded/Affirmed

   * Corporate Family Rating to Ba2 from Ba3

   * Probability of Default rating to Ba2 from Ba3

   * US$100 million senior secured notes to Baa3 from Ba1 (LGD 2
     (20%))

   * $300 million senior unsecured notes to Ba3 from B1 (LGD 5
     (73%))

Phillips-Van Heusen Corporation -- http://www.pvh.com/-- owns  
and markets the Calvin Klein brand worldwide.  It is a shirt
company that markets a variety of goods under its own brands:
Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co.,
Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole,
BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael
Kors, Chaps and Donald J. Trump Signature.

It has operations in Asia-Pacific, including in Indonesia,
China, Philippines, Malaysia, and Thailand.


PT PERTAMINA: State Banks To Lend $500 Mil. to Fund Investments
---------------------------------------------------------------
PT Bank Mandiri and rivals including PT Bank Central Asia, PT
Bank Negara Indonesia and PT Bank Danamon may lend PT Pertamina
(Persero) an aggregate of US$500 million, Bloomberg reports,
citing Pertamina Finance Director Frederick Siahaan.

Citing Bisnis Indonesia, Bloomberg says that the parties are
still working on the portion that each lender has to provide.

The report notes that the company's president, Ari Soemarno,
said that Pertamina will use the funds to finance investment in
production projects.

PT Pertamina (Persero) -- http://www.pertamina.com/-- is a  
wholly state-owned enterprise.  The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state-
owned enterprise into a Limited Liability Company.  In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream.  Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day.  However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being met
by imports.

In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market.  Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.

Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.

In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java.  Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.


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

ALITALIA SPA: Italian Government Launches Sale of 30.1% Stake
-------------------------------------------------------------
The Italian government is selling around 30.1% stake of its
49.9% holding in Alitalia S.p.A., up from 20%-25% announced
early this month, according to published reports.

As reported in the TCR-AP on Dec. 6, Alfonso Pecoraro Scanio,
Italy's Environment Minister, said Italy plans to dispose of
around 20%-25% stake in Alitalia as part of its pledge to find a
solution for the ailing airline.

"The strategic recovery of Alitalia cannot be done without the
entry in the company's capital of new industrial and financial
partners," Prime Minister Romano Prodi said in a statement
following a cabinet meeting.

Italy, however, attached some conditions on the sale, which
calls for the buyer to:

   -- launch a bid to acquire the whole carrier;

   -- keep Alitalia's logo, brand and national identity;

   -- have convincing and detailed business plans and
      commitments, which may include:

         -- a lock-up,
         -- adequate service offering
         -- territorial coverage, and
         -- information on job levels; and

   -- continue to operate at Milan's Malpensa and Rome's
      Fiumicino airports.

Some industry experts, however, told The Financial Times that
Alitalia's two-hub system has been an unnecessary burden on the
carrier.

Alitalia's sale is open to local and foreign investors, though
several ministers and trade union leaders explicitly said that
the carrier's new owner must be Italian.  Several Italian
businessmen are reportedly interested in Alitalia, The Times
relays.  Local bets include:

   -- Carlo Toto, founder of Air One;
   -- Luca di Montezemolo, head of Fiat and Ferrari;
   -- Diego Della Valle, chief of the Tod's shoe empire; and
   -- Banca Intesa and Sanpaolo IMI.

Mr. di Montezemolo, however, told The Times that investing in
Alitalia is too risky.

"Entrepreneurs do not commit suicide," Mr. di Montezemolo said.
"We have to take risks and we have to invest, but we are not
kamikazes."

Meanwhile, Enrico Salza, Chairman of Sanpaolo IMI, discussed
with Corrado Passera, Intesa's Chief Executive, a possible bid
for Alitalia.  Mr. Salza, however, cautioned that "we are a
bank.  We don't do charitable works.  A bank has to do
business."

                     Air France-KLM Talks

In a TCR-Europe report on Dec. 1, the Italian government is
making a three-prong approach to bail out the national carrier,
one of which is a partnership with Air France-KLM.

Alitalia has confirmed that it is holding talks with Air France
over a possible alliance noting that the talks are "still at an
early stage and not exclusive."

As previously reported, airline industry experts expressed
doubts that an Air France takeover would occur given Alitalia's
history of unprofitability, poor management, labor unrest and
political interference.  People privy with the government added
that the Air France option would wilt if the Franco-Dutch
carrier has plans to turn Alitalia into a European regional
feeder for its own operations.

The Italian government has described the sale as the
"finalization of the company's privatization."   Italy hopes
Alitalia's buyer will pour in up to EUR400 million into the
carrier.

Prime Minister Romano Prodi, Reuters reports, said it remains
unclear whether the government would sell all of its stake in
Alitalia.

"It's absolutely not determined," Mr. Prodi said.  "We will sell
30.1%.  This is what the government has decided.  There is no
change."

The government, which has yet to name advisers on the sale, aims
to complete the process by January 2007.  Possible advisers
include:

   -- Merrill Lynch,
   -- Deutsche Bank,
   -- Lehman Brothers,
   -- Goldman Sachs,
   -- Morgan Stanley,
   -- Rothschild,
   -- JPMorgan, and
   -- Credit Suisse.

Antonio Di Pietro, Italy's Infrastructure Minister, said the
government's decision opened the "exit doors for those who
occupy positions of power at Alitalia because they have failed
in their mission."

                      Bankruptcy Warning

As reported in the TCR-Europe on Oct. 13, Mr. Prodi said he
foresees a bankrupt national carrier in January 2007 unless
involved parties come up with an "agreed solution."

"Alitalia is going through the worst moment in its history," Mr.
Prodi said in a meeting with his cabinet, Alitalia officials and
unions.  "The situation is totally out of control and I do not
see any parachutes."

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

In a TCR-Europe report on Oct. 11, Mr. Cimoli revealed that
Alitalia is poised for collapse given its current cost structure
and market conditions.

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

Mr. Cimoli particularly blamed:

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

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

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

                        About Alitalia

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

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


BANCO BRADESCO: Andean Dev. Corp Opens US$100MM Credit for Banks
----------------------------------------------------------------
The Andean Development Corp. said in a statement that it has
launched two lines of credit for US$100 million each for Banco
Bradesco SA and Uniao de Bancos Brasileiros.

The funds will go towards foreign trade operations in Brazil,
according to the Andean Development statement.

                     About Uniao de Bancos

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial  
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil.  The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management.  Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service.  It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking.  The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York -
Unibanco Securities Inc.

                      About Banco Bradesco

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco --
http://www.bradesco.com.br/-- prides itself on serving low-and  
medium-income individuals in Brazil since the 1960s. Bradesco is
Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management.  Bradesco has branches throughout Brazil as well as
one in New York, and Japan. Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers.  The bank also
provides personal and commercial loans, along with leasing
services.

                          *     *     *

Standard & Poor's Ratings Services maintained the 'BB+' ratings
on both of Banco Bradesco SA's foreign and local currency
counterparty credit rating, however it changed the ratings
outlook to positive from stable on both ratings:
   
   -- Foreign currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Local currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Brazil national scale rating

      * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1

This is in connection with Standard & Poor's revised outlook on
its long-term foreign and local currency ratings on 16 Brazilian
entities to positive from stable, following the revision of the
foreign and local currency rating outlooks on the Federative
Republic of Brazil.


FORD MOTOR: In Talks With Wanxiang Group to Sell ACH Assets
-----------------------------------------------------------
Ford Motor Company is in talks with Wanxiang Group, China's
largest auto parts supplier, to sell certain assets to Wanxiang,
the Financial Times reported.

Wanxiang founder and chairman Lu Guanqiu said that the talk is
part of a plan to expand the company's global presence.

The FT said the two companies discussed some assets of
Automotive Components Holdings -- a group of 17 plants and six
other facilities that Ford took control of last year as part of
the bail-out of Visteon Corp., a company spun off by Ford.

Mr. Lu told the FT that his company is interested in acquiring
Ford's design-and-production technology.

Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE:
F) -- 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.

Ford also has operations in Japan.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services affirmed its
'B' bank loan and '2' recovery ratings on Ford Motor Co. after
the company increased the size of its proposed senior secured
credit facilities to between US$17.5 billion and
US$18.5 billion, up from US$15 billion.

The TCR-AP reported on Dec. 7, 2006, that Fitch Ratings
downgraded Ford Motor Company's senior unsecured ratings to 'B-
/RR5' from 'B/RR4' due to the increase in size of both the
secured facilities and the senior unsecured convertible notes
being offered.

On Dec. 5, 2006, Moody's Investors Service assigned a Caa1,
LGD4, 62% rating to Ford Motor Company's US$3 billion of senior
convertible notes due 2036.


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

DOOSAN INDUSTRIAL: Fined KRW2 Bil. for Accounting Irregularities
----------------------------------------------------------------
The Securities and Futures Commission slapped Doosan Industrial
Development Co., Ltd., with a KRW2-billion fine for accounting
irregularities, The Korea Times reports.

The irregularities, reportedly perpetrated between 1995 and
2005, include:

   -- overstating profits and assets; and

   -- raising the slush funds for the company's executives by
      overstating payments to subcontractors.

In addition to the fine, the Commission also sought the
dismissal of the Doosan Industrial executives for the
irregularities, The Times relates.  The Commission will
designate auditors on Doosan for the next two years.

The report notes that Doosan has admitted accounting
irregularities last year when the members of the founders'
family engaged in a dispute over the control of the company's
parent, Doosan Group.  The prosecutors have charged four members
including ex-chairman Park Yong-sung and 10 executives in
November, but none of them received actual jail terms, The Times
says.

                   About Doosan Industrial

Doosan Industrial Development Co., Ltd., provides civil
engineering and architectural services.  Doosan Industrial
constructs apartment complexes, commercial buildings, facilities
and subways.  The company also manufactures ready-mixed
concrete, aluminum, electrical cables and polyethylene pipes.

Korea Investors Service gave the company's senior unsecured debt
a D rating effective March 3, 2001.


KANA SOFTWARE: Awaits Court's Final OK to Stock Suit Settlement
---------------------------------------------------------------
The United States District Court for the Southern District of
New York has yet to grant final approval to the settlement of
the  consolidated securities class action "In Re Kana Software,
Inc. Initial Public Offering Securities Litigation, Case No. 01
Civ. 6822 (Sas)," according to the company's Nov. 14, 2006 Form
10-Q  filing with the U.S. Securities and Exchange Commission
for the  quarter ended Sept. 30, 2006.

The suit is filed against KANA Software, Inc., certain of its
current and former officers and the underwriters for its initial
public offering:

     -- Goldman Sachs & Co.,

     -- Lehman Bros,

     -- Hambrecht & Quist LLC,

     -- Wit Soundview Capital Corp.

The cases allege violations of various securities laws by more
than 300 issuers of stock, including the company, and the
underwriters for such issuers, on behalf of a class of
plaintiffs who, in the case of the company, purchased the
company's common stock between Sept. 21, 1999 and Dec. 6, 2000,
in connection with the company's initial public offering.

Specifically, the complaints allege that the underwriter
defendants engaged in a scheme concerning sales of the company's
and other issuers' securities in the initial public offering and
in the aftermarket.

In July 2003, the company decided to join in a settlement
negotiated by representatives of a coalition of issuers named as
defendants in this action and their insurers.

Although the company believes that the plaintiffs' claims have
no merit, they have decided to accept the settlement proposal to
avoid the cost and distraction of continued litigation.

The proposed settlement agreement is subject to final approval
by the court.

The suit is "In Re Kana Software, Inc. Initial Public Offering
Securities Litigation, Case No. 01 Civ. 6822 (Sas)," related to
"In re Initial Public Offering Securities Litigation, Master
File No. 21 MC 92 (SAS)," filed in the U.S. District Court for
the Southern District of New York under Judge Shira A.
Scheindlin.

The plaintiff firms in this litigation are:  

     (i) Bernstein Liebhard & Lifshitz LLP (New York, NY), 10 E.
         40th Street, 22nd Floor, New York, NY, 10016,
         Phone: 800.217.1522, e-mail: info@bernlieb.com

    (ii) Milberg Weiss Bershad Hynes & Lerach, LLP (New York,
         NY), One Pennsylvania Plaza, New York, NY, 10119-1065,
         Phone: 212.594.5300,  

   (iii) Schiffrin & Barroway, LLP, 3 Bala Plaza E, Bala Cynwyd,
         PA, 19004, Phone: 610.667.7706, Fax: 610.667.7056,
         e-mail: info@sbclasslaw.com

    (iv) Sirota & Sirota, LLP, 110 Wall Street 21st Floor, New
         York, NY, 10005, Phone: 888.759.2990,
         Fax: 212.425.9093, e-mail: Info@SirotaLaw.com
  
     (v) Stull, Stull & Brody (New York), 6 East 45th Street,
         New York, NY, 10017, Phone: 310.209.2468,
         Fax: 310.209.2087, e-mail: SSBNY@aol.com

    (vi) Wolf, Haldenstein, Adler, Freeman & Herz LLP, 270
         Madison Avenue, New York, NY, 10016,
         Phone: 212.545.4600, Fax: 212.686.0114,
         e-mail: newyork@whafh.com

                          About KANA

KANA Software, Inc., provides multi-channel customer service
software applications.  KANA's integrated solutions allow
companies to deliver service across all channels, including
email, chat, call centers and Web self-service, so customers
have the freedom to choose the service they want, how and when
they want it.  The company's target market is the Global 2000
with a focus on large enterprises with high volumes of customer
interactions, such as banks, telecommunications companies, high-
tech manufacturers, healthcare organizations and government
agencies.

The company is headquartered in Menlo Park, California, with
offices in Korea, Japan, Hong Kong and throughout the United
States and Europe.

                       Going Concern Doubt

KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP,
expressed substantial doubt about the company's ability to
continue as a going concern after auditing the company's
financial statement for the year ending Dec. 31, 2005.  Burr
Pilger pointed to the company's recurring losses from
operations, net capital deficiency, negative cash flow from
operations and accumulated deficit.


KOOKMIN BANK: To Expand in Vietnam, Indonesia and Cambodia
----------------------------------------------------------
Kookmin Bank is seeking opportunities in Vietnam, Indonesia and
Cambodia, Korea.net reports, citing an officer at the bank.

Kookmin is recruiting employees in the three countries and will
soon begin efforts to find business opportunities in those
markets, the Web site adds.

The move is reportedly part of Kookmin Bank's plan to become a
leading Asian bank.

"There will be many ordeals in the process of becoming a leading
Asian bank, but we should get over them," Korean.net quotes
Kookmin President Kang Chung-won as saying.  "There can be many
opportunities for mergers and acquisitions in and out of the
country."

Earlier, Korean.net recounts, the bank announced plans to
acquire at least two small-sized banks in developing countries
by late 2007 as part of its efforts to build a global business
network.

                       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 individual rating.


KRISPY KREME: Expects to Post US$117MM Revenues for 3rd Quarter
---------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., disclosed that on a preliminary
basis it expects to report revenues of approximately
US$117 million for the third quarter of fiscal 2007, which ended
Oct. 29, 2006, compared with revenues of approximately
US$129 million for the third quarter of fiscal 2006.  The
decrease in revenues reflects a decline in the number of company
stores as well as lower sales to franchisees by the company's
Manufacturing and Distribution segment.

Systemwide sales fell approximately 9% in the third quarter of
fiscal 2007 compared with the third quarter of the prior year
primarily due to an approximately 17% decrease in the number of
factory stores to 293 (total stores, including satellites,
decreased approximately 8%).  Average weekly sales per factory
store (which is computed by dividing sales from all factory and
satellite stores by the number of factory stores in operation)
increased approximately 16% and 12% in company stores and
systemwide, respectively, compared with the third quarter of
fiscal 2006.

Average weekly sales per store (which is computed by dividing
sales from all factory and satellite stores by the aggregate
number of all such stores in operation) increased approximately
14% for company stores and decreased approximately 0.5%
systemwide, compared with the third quarter of fiscal 2006.

Systemwide average sales per store decreased slightly while
company average sales per store rose principally because the
growth in satellite stores, which have lower average sales than
factory stores, largely has been concentrated in franchise
stores and not in company stores.  The average sales per unit
data reflect, among other things, store closures and the related
shift in off-premises doughnut production into a smaller number
of stores.  Systemwide sales data include sales at all company
and franchise locations.

"While we still have a way to go in Krispy Kreme's turnaround,
we are encouraged by our progress in the third quarter," said
Daryl Brewster, President and Chief Executive Officer.  "The
company has agreed to settle the class action lawsuit and most
of the shareholder derivative litigation.  Average unit volumes
rose at company-owned stores.  Krispy Kreme continued its
international expansion while filling several key management
positions critical to achieving sustained growth."

The company noted that its financial results continue to be
adversely affected by the substantial costs associated with the
legal and regulatory matters previously disclosed by the
company.  The company expects to report a net loss for the third
quarter of fiscal 2007.

                       Financial Position

The company believes that cash flow from operations and existing
cash balances will be sufficient to meet its liquidity needs.  
As of Oct. 29, 2006, the company's cash balance was
approximately US$35 million and its indebtedness was
approximately US$119 million (including capital lease
obligations), compared with approximately US$16 million and
US$123 million, respectively, at Jan. 29, 2006.  The January
amounts exclude amounts relating to Glazed Investments, the
company's consolidated franchisee at the time.  As of
Oct. 29, 2006, the company had no consolidated franchisees.

                       About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded  
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed.  There are currently
approximately 323 Krispy Kreme stores and 79 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

The company generates revenues from three distinct sources:
company-owned stores, franchise fees and royalties from
franchise stores, and a vertically integrated supply chain.

Freedom Rings, LLC, company's franchisee in Eastern
Pennsylvania, Delaware and Southern New Jersey, filed on
Oct. 16, 2005 for Chapter 11 protection with the Delaware
Bankruptcy Court (Bankr. D. Del. Case No. 05-14268).  Following
closure of its four remaining stores, the Bankruptcy Court
confirmed Freedom Rings' plan of liquidation on April 20, 2006,
and its operations have been substantially wound up.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for
restructuring on April 15, 2005, pursuant to the Companies'
Creditors Arrangement Act with the Ontario Superior Court of
Justice.  Krispy Kreme Doughnut Corp. agreed to pay
approximately US$9.3 million to two secured creditors to settle
its obligations with respect to its guarantees pertaining to
certain indebteness and related equipment agreements.  In
exchange, a newly formed subsidiary of Krispy Kreme Doughnut
Corp. acquired substantially all of the operating assets of
KremeKo, as authorized by the Ontario Court.

Glazed Investments, LLC, company's franchisee in Colorado,
Minnesota and Wisconsin, filed for Chapter 11 protection on
Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932).  Subsequent
to this filing, Glazed Investments sold its remaining 12 Krispy
Kreme stores to Western Dough, Krispy Kreme's area developer for
Nevada, Utah, Idaho, Wyoming and Montana, for appoximately US$10
million.  This sale was facilitated by the Chapter 11 filing, by
permitting the assets to be sold free and clear of all liens,
claims and encumbrances.

Under the plan of liquidation filed by Glazed Investments, it
will be dissolved after distribution of the sale proceeds to
creditors, and Krispy Kreme will not receive any payment on
account of its ownership in Glazed Investments.  While a
substantial portion of Glazed Investments' debts were retired
from the sale proceeds and liquidation of other assets, Krispy
Kreme paid approximately US$1 million of its franchisee's debt
which was guaranteed by it.


KRISPY KREME: District Ct. Sets Feb. 7 for Settlement Hearing
-----------------------------------------------------------
The United States District Court for the Middle District of
North Carolina issued an Order setting Feb. 7, 2007, as the
hearing date for final approval of the terms of the settlement
of the shareholder derivative action entitled Wright v. Krispy
Kreme Doughnuts, Inc., et al.

The Order also approved the form of notice to shareholders,
which provides details regarding the hearing, the lawsuit, the
settlement and the right of shareholders to object to the
settlement.

As reported in the Troubled Company Reporter on Nov. 6, 2006,
the company has entered into a Stipulation and Settlement
Agreement with the lead plaintiffs in the pending securities
class action, the plaintiffs in the pending derivative action
and all defendants named in the class action and derivative
action, except for the company's former chairman and chief
executive officer, providing for the settlement of the
securities class action and the derivative action.

Both the class action and derivative action settlements are
subject to preliminary and final approval of the U.S. District
Court for the Middle District of North Carolina.

A full-text copy of the Notice of Proposed Settlement may be
viewed at no charge at http://ResearchArchives.com/t/s?1699

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded  
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed.  There are currently
approximately 323 Krispy Kreme stores and 79 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea, and the United Kingdom.

The company generates revenues from three distinct sources:
company-owned stores, franchise fees and royalties from
franchise stores, and a vertically integrated supply chain.

Freedom Rings, LLC, company's franchisee in Eastern
Pennsylvania, Delaware and Southern New Jersey, filed on
Oct. 16, 2005 for Chapter 11 protection with the Delaware
Bankruptcy Court (Bankr. D. Del. Case No. 05-14268).  Following
closure of its four remaining stores, the Bankruptcy Court
confirmed Freedom Rings' plan of liquidation on April 20, 2006
and its operations have been substantially wound up.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for
restructuring on April 15, 2005, pursuant to the Companies'
Creditors Arrangement Act with the Ontario Superior Court of
Justice.  Krispy Kreme Doughnut Corp. agreed to pay
approximately US$9.3 million to two secured creditors to settle
its obligations with respect to its guarantees pertaining to
certain indebtedness and related equipment agreements.  In
exchange, a newly formed subsidiary of Krispy Kreme Doughnut
Corp. acquired substantially all of the operating assets of
KremeKo, as authorized by the Ontario Court.

Glazed Investments, LLC, company's franchisee in Colorado,
Minnesota and Wisconsin, filed for Chapter 11 protection on
Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932).  Subsequent
to this filing, Glazed Investments sold its remaining 12 Krispy
Kreme stores to Western Dough, Krispy Kreme's area developer for
Nevada, Utah, Idaho, Wyoming and Montana, for approximately
US$10 million.  This sale was facilitated by the Chapter 11
filing, by permitting the assets to be sold free and clear of
all liens, claims and encumbrances.

Under the plan of liquidation filed by Glazed Investments, it
will be dissolved after distribution of the sale proceeds to
creditors, and Krispy Kreme will not receive any payment on
account of its ownership in Glazed Investments.  While a
substantial portion of Glazed Investments' debts were retired
from the sale proceeds and liquidation of other assets, Krispy
Kreme paid approximately US$1 million of its franchisee's debt,
which was guaranteed by it.


LG CARD: Shinhan Agrees to US$5.6-Billion Acquisition Price
-----------------------------------------------------------
Shinhan Financial Group finally agreed with LG Card Co.'s
creditors on the acquisition price of the credit card company in
a preliminary pact inked on Dec. 12.

According to reports, Shinhan has agreed to pay around
US$5.6 billion for LG Card.  The Korea Herald and Yonhap News
say that the agreed price is KRW5.18 trillion (US$5.59 billion),
while Reuters reports the amount to be KRW5.2 trillion (US$5.63
billion).

Under the preliminary agreement, Shinhan will acquire a 61%
stake in LG Card at KRW67,770 per share, down from the KRW68,410
per-share price previously offered, Yonhap News relates.

The total agreed price is KRW49 billion lower than Shinhan's
prior offer.

Shinhan reportedly plans to acquire additional stakes in LG Card
through a public tender in February or March 2007.

                      About LG Card Co.

Headquartered in Seoul Korea, LG Card Co. --
http://www.lgcard.com/-- provides installment finance services
and credit card, as well as leasing services to credit worthy
companies while acquiring valuable assets from merchant banks
and leasing firms.  LG Card also finances families wishing to
purchase big ticket items such as automobiles, appliances and
computers.

At the end of October 2003, LG Card had KRW3.24 trillion more
debt than assets and had faced threats of liquidity crisis and
court receivership.  LG Card has been in the hands of creditors
since it was rescued from bankruptcy through a KRW5-trillion
(US$4.78 billion) debt-for-equity swap and a further KRW1-
trillion bailout in late 2004.  Creditors are hoping to
recover the bailout amount through a sale of the credit card
issuer.


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

CHIN FOH: Court Grants Ban on Actions Against Company
-----------------------------------------------------
The Kuala Lumpur High Court has granted a restraining order for
a period of 90 days starting December 12, 2006, barring any
person to take any legal actions against Chin Foh Bhd and its
subsidiaries.

The Court granted the restraining order in order to facilitate
the finalization of Chin Foh's proposed Regularization Plan.

No material financial and operational impact on the company's
existing operations is expected.

                          *     *     *

Malaysia-based Chin Foh Berhad is principally involved in
trading and distribution of metal base and non-metal base
products, construction materials, panels and non-ferrous metal
products.  Its other activities include manufacturing of glass,
aluminium extrusions, stainless steel and related products,
rotary aluminium ventilators, providing, cutting and slitting of
metal and other related services, general contracting, design,
fabrication, supply and installation of curtain wall and
cladding and holding properties and investments.  Operations are
carried out in Malaysia, Australia, and China.

Chin Foh started posting losses in fiscal 2002 due to high
operating expenses and has not recovered since.  As reported in
the Troubled Company Reporter - Asia Pacific on Oct. 5, 2006,
the company posted MYR2.71-billion loss for the quarter ended
July 31, 2006.


EKRAN BERHAD: Annual General Meeting Slated for December 28
-----------------------------------------------------------
Ekran Bhd will hold its 15th annual general meeting on Dec. 28,
2006, 9:00 a.m., at the Boardroom, Lot 5428-5429, Block 16,
KCLD, Lorong Lapangan Terbang Baru 1, in Kuching, Sarawak.

Agenda of the meeting will be:

   1. To receive and adopt the Company's audited financial
      statements for the year ended June 30, 2006, together with
      the reports of the directors and auditors on the
      financials.

   2. To approve the payment of directors' fees for the
      financial year ended June 30, 2006.

   3. To re-elect two directors who retired pursuant to Article
      93 of the company's Articles of Association and being
      eligible, have offered themselves for re-election:

         -- Datuk William Lau Kung Hui

         -- Dato' Stanley Isaacs

   4. To re-appoint Messrs Ernst & Young as Auditors of the
      company until the conclusion of the next Annual General
      Meeting and to authorize the Directors to fix their
      Remuneration.

   5. To consider and, if thought fit, to pass with or without
      any modifications this ordinary resolution:

         Ordinary Resolution:  

         Pursuant to Section 132D of the Companies Act, 1965,
         Articles of Association of the Company and the Listing
         Requirements of Bursa Malaysia Securities Berhad, the
         Directors be and are hereby empowered to issue shares
         in the Company, at any time and upon such terms and
         conditions and for such purposes as the Directors may,
         in their absolute discretion, deem fit, provided that
         the aggregate number of shares to be issued pursuant to
         this Resolution does not exceed 10% of the issued
         capital of the Company for the time being and that the
         Directors be and are also empowered to obtain the
         approval from Bursa Malaysia Securities Berhad for the
         listing of and quotation for the additional shares so
         issued and that such authority shall continue in force
         until the conclusion of the next annual general meeting
         of the Company.

   6. To transact any other business for which due notice will
      have been given.


                          *     *     *

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.   

As of September 30, 2006, the company's balance sheet showed
total assets of MYR1.09 billion and total liabilities of
MYR563.01 million resulting to a shareholders' equity of
MYR525.97 million.


EKRAN BERHAD: Settles Debt Payment with UOB
-------------------------------------------
The Troubled Company Reporter - Asia Pacific on August 8, 2006,
reported that United Overseas Bank filed a wind-up petition
against Ekran Bhd over unsettled debt amounting MYR8,975,649
plus interests.

According to the TCR-AP, the bank filed the petition after it
rejected the settlement offer laid by Ekran Bhd.

In an update, Ekran told Bursa Malaysia Securities Bhd that it
had fully settled its agreed settlement sum with UOB as of
December 1, 2006.

                          *     *     *

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.   

As of September 30, 2006, the company's balance sheet showed
total assets of MYR1.09 billion and total liabilities of
MYR563.01 million resulting to a shareholders' equity of
MYR525.97 million.


EKRAN BERHAD: Incurs MYR5.68-Mil. Net Loss in Sept. 2006 Quarter
----------------------------------------------------------------
Ekran Bhd posted a net loss of MYR5.68 million on MYR2.55
million revenues in the first quarter ended September 30, 2006,
compared with net loss of MYR3.54 million on MYR7.14 million
revenues recorded in the same quarter last year.

Ekran Bhd's balance sheet as of the quarter ended September 30,
2006, showed current assets of MYR344.40 million available to
pay current liabilities of MYR287.25 million.

As of end-September 2006, the company's balance sheet showed
total assets of MYR1.09 billion and total liabilities of
MYR563.01 million resulting to a shareholders' equity of
MYR525.97 million.

A full-text copy of the company's financial reports for the
quarter ended September 30, 2006, can be viewed for free at:

          http://bankrupt.com/misc/ekran-1q-2006.xls

                          *     *     *

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.

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.   


PROTON HOLDINGS: Volkswagen Wants Audit Before Possible Tie Up
--------------------------------------------------------------
Malaysia's national car maker, Proton Holdings may sign a deal
with Volkswagen allowing a "full-fledged" audit of the company
ahead of a possible tie-up, Reuters reports.

Reuters, citing Bernama news agency's reports, said Volkswagen
is believed to be willing to commit as much as MYR2 billion or
US$591 million to acquire a 51% stake in Proton's manufacturing
operations.

Volkswagen could emerge as the frontrunner in Proton's long
search for a partner, seen as crucial to the carmaker's future,
Bernama added.

"The German carmaker could sign a preliminary agreement to
enable it to do a full-fledged due diligence audit on Proton
just before Christmas," Reuters cites Bernama as saying.

According to Reuters, Volkwagen's has plans outlined to take
advantage of Malaysia's free trade agreement with Japan to
export made-in-Malaysia Volkswagen cars by 2010, Bernama said
citing its sources.

Under the FTA, which came into force in July this year, cars
made in Malaysia above 2000cc can be exported to Japan without
duty, with the deal extended to all types of Malaysian-assembled
cars by 2015.

Bernama said the German carmaker had also proposed to Proton
that it will start off with assembling its popular mid-range
Passat model, and that it was willing to pump in a large amount
of money to help the Malaysian company.

Besides Volkwagen, three Malaysian companies have expressed a
interest in a stake in Proton, while the government is also in
talks with PSA Peugeot Citroen to discuss possible
collaboration, Reuters notes.

Proton's managing director Syed Zainal Abidin Syed Mohamad Tahir
was quoted last week by Reuters as saying they are currently
looking at "international partners" first.

Analysts say Proton needs to find a strong partner to help
revive its fortunes after posting a quarterly loss of MYR250.34
million in its second quarter to September 2006, as sales
dwindled.

Prime Minister Abdullah Ahmad Badawi said last week that talks
to finalize a partnership for Proton will be postponed until the
first quarter of 2007.

                          *     *     *

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

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

As reported by the Troubled Company Reporter - Asia Pacific on
December 06, 2006, Proton Holdings' fiscal second-quarter loss
widened as lower revenue and higher expenses pressured
Malaysia's national carmaker.  Based on the company's financial
report for the three months ended Sept. 30, 2006, Proton had a
loss of MYR250.3 million compared with a loss of MYR154.3
million in the same quarter a year earlier.  


ELBA HOLDINGS: Sept. 2006 Balance Sheet Upside Down by MYR9.9MM  
---------------------------------------------------------------
Elba Holdings Bhd posted a net loss of MYR4.33 million on
MYR2.38 million revenues in the quarter ended September 30,
2006, compared with MYR4.86 million on MYR7.91 million revenues
recorded in the same quarter last year.

As of September 30, 2006, the company's balance sheet showed
strained liquidity with current assets of MYR59.57 million
available to pay current liabilities of MYR89.41 million.

In addition, as of end-September, Elba's balance sheet also
showed insolvency with total assets of MYR82.801 million and
total liabilities of MYR92.70 million resulting to shareholders'
deficit of MYR9.9 million.

A full-text copy of the company's financial reports for the
quarter ended September 2006, can be viewed for free at:

         http://bankrupt.com/misc/elba-3q-2006.xls

                          *     *     *

Elba Holdings Berhad -- http://www.elbaholdings.com.my/-- is a  
Malaysia-based investment holding company engaged in the
provision of management consultancy services to its
subsidiaries.  Through its subsidiaries, the Company
manufactures, distributes and trades in apparels.

The company disclosed on May 8, 2006, that it is an affected
listed issuer of the Amended Practice Note 17 category of the
Listing requirements.  Based on the audited consolidated results
for the year ended December 31, 2005, the company's
shareholders' equity on consolidated basis was less than 25% of
its issued and paid up capital and less than the minimum issued
and paid up capital as required by the Listing Requirements.  In
addition, the company's auditors have expressed a debt with
emphasis on the company's going concern for fiscal 2005.

As of September 30, 2006, Elba's balance sheet showed insolvency
with total assets of MYR82.801 million, total liabilities of
MYR92.70 million resulting in a shareholders' deficit of MYR9.9
million.


SINORA INDUSTRIES: Posts MYR125,000 Net Loss in Third Qtr. 2006
---------------------------------------------------------------
Sinora Industries Bhd filed its unaudited financial report for
the third quarter ended September 30, 2006, with the Bursa
Malaysia Securities Bhd.

The company incurred net loss of MYR125,000 on MYR1.54 million
revenues in the quarter ended September 2006, as compared with a
net profit of MYR20.77 million recorded in the same quarter last
year.

As of September 30, 2006, the company's consolidated balance
sheet showed current assets of MYR21.81 million and current
liabilities of MYR354,000.

As of end-September 2006, Sinora has total assets of MYR31.78
million and total liabilities of MYR354,000 resulting to a
shareholders' equity of MYR31.43 million.

A full-text copy of the company's unaudited financial reports
for the quarter ended September 30, 2006, can be viewed for free
at:

         http://bankrupt.com/misc/sinora-3q-2006.doc

                          *     *     *

Headquartered in Kota Kinabalu, Malaysia, Sinora Industries
Berhad was engaged in the manufacture and sale of plywood, sawn
timber, veneer and molded wood products.  Its other activities
included investment holding and the provision of management
services.  Operations of the Group are carried out in Malaysia,
Japan, Korea, the United States of America, Europe and other
Asian countries.

Bursa Malaysia Securities Berhad, on July 8, 2005, classified
Sinora Industries Berhad as an affected listed issuer pursuant
to Practice Note No. 17/2005 in view that the Company has
effectively ceased all its business and operations.

The company has been suffering recurring losses since fiscal
2000.  As of end-September 2006, Sinora has total assets of
MYR31.78 million and total liabilities of MYR354,000 resulting
to a shareholders' equity of MYR31.43 million.


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

AIR NEW ZEALAND: Suspension of Singapore Operations Pays Off
------------------------------------------------------------
On July 13, 2006, the Troubled Company Reporter - Asia Pacific
reported that Air New Zealand planned to suspend flights to
Singapore effective October 2, 2006.  Air NZ Chief Executive
Officer Rob Fyfe explained that the suspension presents Air New
Zealand with aircraft and resources to pursue new opportunities.

An update from the New Zealand Herald reveals that Air New
Zealand's decision appears to be paying off.

According to the paper, the airline's load factor -- the
percentage of seats filled -- was up 1.1% to 74% in October
compared with the same month last year.

NZ Herald cites Goldman Sachs JB Were analyst Marcus Curly, as
saying it appeared "at this stage" that Air New Zealand's
decision to withdraw from Singapore was the right one.

It was "positive" that load factors had increased slightly, even
though capacity had been reduced, particularly on the
international route, Mr. Curly noted.

According to the Australian Associated Press, Air New Zealand's
overall capacity on its routes in October was down 3.8%.

Group revenue from passengers for the month was NZ$4 billion, up
0.8% on the previous October, NZ Herald reveals.

Air New Zealand's yield trend was consistent with what it had
reported in the past, Mr. Curly further said.

Air New Zealand said the cutting of unprofitable Asian routes
had cut spare capacity by nearly 30% in that market, The Age
says, noting that the airline previously announced an 11% cut in
trans-Tasman capacity in 2007.

                      About Air New Zealand

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

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

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


AIR NEW ZEALAND: Plans to Let Subsidiary Take Trans-Tasman Route
----------------------------------------------------------------
Air New Zealand CEO Rob Fyfe has indicated the possibility of
handing the airline's trans-Tasman route over to its low cost
subsidiary after the regulation watchdog's rejection of the
Qantas-Air NZ codeshare bid.

The competition authorities had rejected the codeshare bid on
the grounds that the alliance would result in a severely reduced
market for competition in the field.  This is a valid argument
seeing that, if the bid were to have passed, both airlines would
be dominating 80% of the market and would also be saving NZ$20
million each per year.

In response, the airlines have argued that despite the fact that
the trans-Tasman route is one of Air New Zealand's busiest
routes out of Australia, they have said that they have been
flying too many empty seats and it will not be sustainable
during the low-season.  The code-share would have saved the
airline from this financially unprofitable route.

But because the code-share was not passed, Air New Zealand has
followed Qantas' lead in looking to assigning this route to
their low cost subsidiary.  Both Freedom Air and Jetstar
respectively will be used as an attempt to cut costs on the
potentially money losing route.

"You can't expect airlines to just go on losing money or making
inadequate profits because everyone wanted to see competition,"
Mr. Fyfe said.  "Competition that loses money or destroys value
is in no one's interest."

But there are also problems with the plan for Air New Zealand
LCC Freedom Air to take over the flight path -- the lesser known
airline will have to compete with the high profile Jetstar,
meaning that despite the competition watchdog's attempts to keep
the airfares competitively low, the competition still remains on
an uneven footing.

Air New Zealand might find itself at a disadvantage using its
lesser-known Freedom Air to compete with the high-profile
Jetstar, The Australian cites Analysts, as saying.

The Australian notes that the Tasman accounts for about 20% of
Air New Zealand's business.  It is the busiest route out of
Australia, the paper says.


BRILL REALTY: Petition Hearing Slated for December 19
-----------------------------------------------------
An application to liquidate Brill Realty Ltd will be heard
before the High Court of Auckland on Dec. 19, 2006, at 10:00
a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on Sept. 20, 2006.

The solicitor for the Petitioner can be reached at:

         S.C.D.A. Gollin
         Minter Ellison Rudd Watts
         Solicitors
         Level Twenty, Lumley Centre
         88 Shortland Street
         (P.O. Box 3798 or D.X. C.P. 24-061)
         Auckland 1140
         New Zealand


CAPELLI AT 75: Creditors Must Prove Claims by January 15
--------------------------------------------------------
On Nov. 22, 2006, the shareholders of Capelli At 75 Ltd resolved
by a special resolution to liquidate the company's business and
appoint Roderick Thomas McKenzie as liquidator.

In this regard, Mr. McKenzie requires the creditors to submit
their proofs of claim by Jan. 15, 2007, or they will be excluded
from sharing in any distribution the company will make.

The Liquidator can be reached at:

         Roderick Thomas Mckenzie
         McKenzie & Partners Limited
         Level One, 484 Main Street
         (P.O. Box 12-014), Palmerston North
         New Zealand
         Telephone:(06) 354 9639
         Facsimile:(06) 356 2028


D & L SERVICES: Creditors Must Lodge Claims by Dec. 18
------------------------------------------------------
Liquidators Henry David Levin and Barry Phillip Jordan require
the creditors of D & L Services Ltd to submit their proofs of
debt by Dec. 18, 2006.

The High Court of Whangarei appointed Mr. Levin and Mr. Jordan
as the company's joint and several liquidators on Nov. 20, 2006.

According to the TCR-AP, the Commissioner of Inland Revenue
filed the petition against the company, which was heard before
the Court on Nov. 20, 2006.

The Joint and Several Liquidators can be reached at:

         Henry David Levin
         Barry Phillip Jordan
         c/o Gavin Harold
         PPB McCallum Petterson
         Level Eleven, Forsyth Barr Tower
         55-65 Shortland Street, Auckland
         New Zealand
         Telephone:(09) 336 0000
         Facsimile:(09) 336 0010


DAVID CLARK: Court to Hear Liquidation Petition on Dec.19
---------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against David Clark Property Ltd on Dec. 19, 2006, at 10:45 a.m.

Meredith Connell filed the petition on Sept. 27, 2006.

The solicitor for the Petitioner can be reached at:

         John Stephens
         Meredith Connell
         Level Seventeen, Forsyth Barr Tower
         55-65 Shortland Street
         (P.O. Box 2213 or D.X. C.P. 24-063)
         Auckland
         New Zealand
         Telephone:(09) 336 7556)


DORIE HERD: Undergoes Liquidation Proceedings
---------------------------------------------
On Nov. 21, 2006, the shareholders of Dorie Herd Ltd resolved to
liquidate the company's business and appointed Trevor James Croy
as liquidator.

The Liquidator can be reached at:

         Trevor James Croy
         P.O. Box 582, Ashburton
         New Zealand
         Telephone:(03) 308 8353
         Facsimile:(03) 308 1535


FREEDOM FLIGHT: Liquidation Petition Hearing Set on Dec. 19
-----------------------------------------------------------
On Oct. 6, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against Freedom Flight Ltd before the High
Court of Auckland.

The petition will be heard on Dec. 19, 2006, at 10:45 a.m.

The solicitor for the Petitioner can be reached at:

         S. J. Eisdell Moore
         Meredith Connell
         Level Seventeen, Forsyth Barr Tower
         55-65 Shortland Street
         (P.O. Box 2213 or D.X. C.P. 24-063)
         Auckland
         New Zealand
         Telephone:(09) 336 7556


MANUKAU FOOD: Faces Liquidation Proceedings
-------------------------------------------
A petition to liquidate Manukau Food Court Ltd was heard before
the High Court of Auckland on Dec. 19, 2006.

SL Manukau Ltd filed the petition with the Court on Sept. 20,
2006.

The solicitor for the Petitioner can be reached at:

         D. G. Dewar
         Thomas Dewar Sziranyi Letts
         Second Floor, 1 Margaret Street
         (P.O. Box 31-240), Lower Hutt
         New Zealand


MCKIMMIE HERD: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 21, 2006, the shareholders of McKimmie Herd Ltd resolved
to liquidate the company's business and appointed Trevor James
Croy as liquidator.

The Liquidator can be reached at:

         Trevor James Croy
         P.O. Box 582, Ashburton
         New Zealand
         Telephone:(03) 308 8353
         Facsimile:(03) 308 1535


NZ PICTURE: Shareholders Resolve to Liquidate Business
------------------------------------------------------
Shareholders of New Zealand Picture Library Ltd resolved by a
special resolution to liquidate the company's business and
appointed Michael George Thomson as liquidator on Nov. 19, 2006.

The Liquidator can be reached at:

         Michael George Thomson
         P.O. Box 9687
         Newmarket, Auckland
         New Zealand
         Telephone:(09) 630 3808
         Facsimile:(09) 630 3970


SAFE SITE: Court Sets Liquidation Hearing on February 1
-------------------------------------------------------
A liquidation petition filed against Safe Site Systems Ltd will
be heard before the High Court of Auckland on Feb. 1, 2007, at
10:00 a.m.

The Commissioner of Inland Revenue filed the petition on
Oct. 10, 2006.

The Solicitor for the Petitioner can be reached at:

         S. J. Eisdell Moore
         Crown Solicitor
         Meredith Connell
         Level Seventeen, Forsyth Barr Tower
         55-65 Shortland Street
         (P.O. Box 2213 or D.X. C.P. 24-063), Auckland
         New Zealand
         Telephone:(09) 336 7556)


SEA ACCOMODATION: Appoints Official Assignee as Liquidator
----------------------------------------------------------
On Nov. 16, 2006, the Official Assignee for Sea Accomodation
Trustee Ltd was appointed as the company's liquidator.

As reported by the TCR-AP, Mahone Management Ltd filed the
petition against the company.  The Court heard the petition on
Nov. 16, 2006.

The liquidator can be reached at:

         Official Assignee
         Insolvency and Trustee Service
         Private Bag 4714, Christchurch
         New Zealand
         Telephone: 0508 467 658
         Web site: http://www.insolvency.govt.nz


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

HERTZ CORP: Commences Exchange Offers for Senior Notes
------------------------------------------------------
The Hertz Corp. commenced exchange offers pursuant to which it
is offering to exchange:

   -- US$1,800,000,000 in aggregate principal amount of its
      8.875% Senior Notes due 2014,

   -- US$600,000,000 in aggregate principal amount of its 10.5%
      Senior Subordinated Notes due 2016 and

   -- EUR225,000,000 in aggregate principal amount of its 7.875%
      Senior Notes due 2014,

which have been registered under the Securities Act of 1933, as
amended, for equal principal amounts of its outstanding:

   -- 8.875% Senior Notes due 2014,
   -- 10.5% Senior Subordinated Notes due 2016 and
   -- 7.875% Senior Notes due 2014,

which were issued on Dec. 21, 2005, in a transaction exempt from
registration under the Securities Act.

As of Dec. 6, 2006, there were US$1,800,000,000, US$600,000,000
and EUR225,000,000 aggregate principal amount of old senior
dollar notes, old senior subordinated notes and old senior euro
notes, respectively, outstanding.  The terms of the new notes
will be substantially identical to those of the old notes,
except that the transfer restrictions and registration rights
relating to the old notes will not apply to the new notes.  The
terms and conditions of the exchange offers are set forth in The
Hertz Corporation's prospectus dated Dec. 6, 2006, and with
respect to the old senior dollar notes and the old senior
subordinated notes, the related letter of transmittal.

The Hertz Corporation will accept for exchange any and all old
notes validly tendered and not validly withdrawn on or before
5:00 p.m., New York City time, on Jan. 5, 2007, which is the
expiration date of the exchange offers, unless the exchange
offers are extended by the company.

Copies of the prospectus and other documents relating to the
exchange offers may be obtained from the Exchange Agents:

By Telephone for old senior notes and old senior subordinated
notes:

          Wells Fargo Bank, National Association
          Attn: Bondholder Communications
          Tel: (800) 344-5128
               (612) 667-9764

For old senior euro notes:

          Deutsche Bank AG, London Branch
          Winchester House
          1 Great Winchester Street
          London EC2N 2DB, United Kingdom
          Tel: + 44 (0) 207 547 5000
          e-mail: xchange.offer@db.com

Hertz Corp. -- https://www.hertz.com/ -- the largest global car
rental company, participates primarily in the on-airport segment
of the car rental industry.  This segment, which generates
approximately 69% of Hertz's consolidated revenues, is heavily
reliant on airline traffic.  Demand tends to be cyclical, and
can also be affected by global events such as wars, terrorism,
and disease outbreaks.  Through its Hertz Equipment Rental Corp.
subsidiary (HERC, 18% of consolidated revenues), Hertz also
operates one of the larger industrial and construction equipment
renters in the U.S., along with some European locations.  Hertz
has operations in the Philippines, Hungary and Peru, among
others.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 27, 2006, that Moody's Investors Service changes the
rating outlook of The Hertz Corp. to stable from negative
following the completion of a US$1.3 billion IPO by Hertz Global
Holdings, Inc., the acquisition vehicle through which equity
sponsors Clayton, Dubilier & Rice, Inc., The Carlyle Group and
Merrill Lynch Global Private Equity acquired Hertz in December
2005.

On November 24, 2006, the TCR-AP reported that Standard & Poor's
Ratings Services affirmed its ratings on Hertz Corp., including
the 'BB-' corporate credit rating, and removed them from
CreditWatch, where they were placed with negative implications
June 26, 2006.  The outlook is negative.


LAND BANK: Secures New Foreign Credit Programs Worth US$269 Mln
---------------------------------------------------------------
The Land Bank of the Philippines has forged three new credit
programs with multilateral and bilateral institutions worth
US$269 million aimed at financing high impact development
projects in the countryside, comprising of:

   -- US$19 million from Kfw Germany for the LGU Investment
      Programme;

   -- US$100 million for the World Bank Support for Strategic
      Local Development and Investment; and

   -- US$150 million from the Japan Bank for International
      Cooperation for the Support for Agri-Enterprise
      Development

Landbank's president and chief executive officer, Gilda E. Pico,
said that these new credit programs will address the funding
requirements of cooperatives, small and medium enterprises, and
local government units, consistent with the bank's thrust of
sustaining the transformation of its loan portfolio in favor of
the bank's priority sectors.

The EUR15 million (US$19 million) KfW (Germany)-LGU Investment
Programme (LIP) will improve LGUs' access to long-term
financing.  This will enable them to undertake development
projects like local roads and bridges, sanitation, drainage and
flood control, water supply, public market and bus terminal,
ports as well as other income generating public facilities.

Preference would be given to LGUs in the Visayas and Mindanao to
support the focus of the German Development Cooperation Program.
The LIP is already available for availment by eligible borrowers
through the bank's lending centers nationwide.

The US$100 million WB-Support for Strategic Local Development
and Investment (S2LDI) will augment LGUs' resources needed in
undertaking strategic infrastructure investments.  These include
projects such as power production and distribution, solid waste
management, waste water treatment, housing, schools, among
others.  This facility may be accessed directly by the LGU or by
public utilities and private companies providing local
infrastructure services.  Target availability for the S2LDI is
January 2007.

The US$150 million JBIC-Support Program for Agri-Enterprise
Development (SPAED) is intended to sustain economic growth and
improve living conditions in the rural areas by financing
projects of small and medium enterprises and cooperatives.
Eligible projects include agriculture/aquaculture, food/agro-
processing, farm mechanization, service-oriented projects that
support agri-related economic activities as well as product
distribution.

This facility is available to small farmers and fisherfolk,
small & medium enterprises and agri-business enterprises thru
direct or wholesale lending approaches.  The NEDA-ICC Cabinet
Committee has approved the project last November 9, 2006.  LBP
is looking forward to the inclusion of the project in the 27th
Yen Loan Package so it can be made available to eligible
borrowers by the first quarter of 2008.

                        About Land Bank

The Land Bank of the Philippines is a government financial
institution that strikes a balance in fulfilling its social
mandate of promoting countryside development while remaining
financially viable.  This dual function makes Land Bank unique.  
The profits derived from its commercial banking operations are
used to finance the bank's developmental programs and
initiatives.

From its initial role as the financing arm of the agrarian
reform, Land Bank has evolved into a full-service commercial
bank.  Over the years, Land Bank continued to expand its loan
portfolio in favor of its priority sectors: the farmers and
fisherfolk, small and medium enterprises and microenterprises,
livelihood loans and agribusiness, agri-infrastructure and other
agri- and environment-related projects.

Land Bank ranks among the top five commercial banks in the
country in terms of deposits, assets, loans and capital.

                          *     *     *

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.

The TCR-AP also reported that on November 2, 2006, Moody's
Investors Service revised the outlook of the Land Bank of the
Philippines' foreign currency long-term deposit rating of B1 to
stable from negative.  The outlook for Land Bank's foreign
currency Not-Prime short-term deposit rating and bank financial
strength rating of E+ remains stable.


LAND BANK: Loans to Priority Sectors Reach PHP79.6 Billion
----------------------------------------------------------
Land Bank of the Philippines' loans to its priority sectors as
of September 2006 reached PHP79.6 billion out of the bank's
total loan portfolio of PHP113.7 billion.  This is a record high
in the Bank's efforts to transform its loan portfolio in favor
of its priority sectors -- small farmers and fisherfolk, SMEs
and micro-enterprises, agri-business, livelihood, agri-
infrastructure and environment-related projects.

"The continued expansion of Land Bank's loan portfolio in favor
of our priority sectors is proof of our commitment to our
mandate of promoting the rural economy, supporting agricultural
reproduction and generating jobs in the countryside," Land Bank
President and CEO Gilda E. Pico said.

Land Bank loans to small farmers and fisherfolk reached
PHP16.8 billion while loans to microenterprises and SMEs totaled
PHP18.1 billion.  Total loans for agribusiness, agri-
infrastructure and agri-related projects reached PHP39.4 billion
while loans to environment and other livelihood projects reached
PHP5.3 billion.

                        About Land Bank

The Land Bank of the Philippines is a government financial
institution that strikes a balance in fulfilling its social
mandate of promoting countryside development while remaining
financially viable.  This dual function makes Land Bank unique.  
The profits derived from its commercial banking operations are
used to finance the bank's developmental programs and
initiatives.

From its initial role as the financing arm of the agrarian
reform, Land Bank has evolved into a full-service commercial
bank.  Over the years, Land Bank continued to expand its loan
portfolio in favor of its priority sectors: the farmers and
fisherfolk, small and medium enterprises and microenterprises,
livelihood loans and agribusiness, agri-infrastructure and other
agri- and environment-related projects.

Land Bank ranks among the top five commercial banks in the
country in terms of deposits, assets, loans and capital.

                          *     *     *

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.

The TCR-AP also reported that on November 2, 2006, Moody's
Investors Service revised the outlook of the Land Bank of the
Philippines' foreign currency long-term deposit rating of B1 to
stable from negative.  The outlook for Land Bank's foreign
currency Not-Prime short-term deposit rating and bank financial
strength rating of E+ remains stable.


LAND BANK: Releases PHP23.6 Billion for Pump-Priming Projects
-------------------------------------------------------------
For the first nine months of the year, Land Bank of the
Philippines has released PHP23.6 billion in support of the
national government's pump-priming initiatives as aligned with
the identified super regions.

"This is in support of President Arroyo's pump-priming efforts
that are consistent with Land Bank's mandate of spurring growth
in the countryside," according to Land Bank president and CEO
Gilda E. Pico.  She added that Land Bank is aggressively
financing developmental projects that promote the local economy
and generate employment.

The Luzon Urban Beltway got the highest share at
PHP10.7 billion, followed by the Agri-Business Mindanao with
PHP5.5 billion.  The Central Philippines came third with
PHP4.6 billion while the North Luzon Agri-business Quadrangle
received PHP2.8 billion in loans.

In terms of projects, agricultural production, totaling
PHP14.1 billion, accounted for the largest share, followed by
agri-processing with PHP6.7 billion loans.

These loans were availed of by various cooperatives, countryside
financial institutions, small and medium enterprises and
Quedancor.  Other projects financed were agri-infrastructure
including water, sanitation and solid waste management projects,
as well as low cost and socialized housing.

                        About Land Bank

The Land Bank of the Philippines is a government financial
institution that strikes a balance in fulfilling its social
mandate of promoting countryside development while remaining
financially viable.  This dual function makes Land Bank unique.  
The profits derived from its commercial banking operations are
used to finance the bank's developmental programs and
initiatives.

From its initial role as the financing arm of the agrarian
reform, Land Bank has evolved into a full-service commercial
bank.  Over the years, Land Bank continued to expand its loan
portfolio in favor of its priority sectors: the farmers and
fisherfolk, small and medium enterprises and microenterprises,
livelihood loans and agribusiness, agri-infrastructure and other
agri- and environment-related projects.

Land Bank ranks among the top five commercial banks in the
country in terms of deposits, assets, loans and capital.

                          *     *     *

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.

The TCR-AP also reported that on November 2, 2006, Moody's
Investors Service revised the outlook of the Land Bank of the
Philippines' foreign currency long-term deposit rating of B1 to
stable from negative.  The outlook for Land Bank's foreign
currency Not-Prime short-term deposit rating and bank financial
strength rating of E+ remains stable.


SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8
---------------------------------------------------------
Sbarro Inc. reported a US$2.1-million net income on
US$80 million of total revenues for the 12 weeks ended Oct. 8,
2006, compared with a US$323,000 net loss on US$79.3 million of
total revenues for the same period ended Oct. 9, 2005.

Sales by quick service restaurants and consolidated other
concept restaurants increased 1.3% to US$75.5 million for the
twelve weeks ended Oct. 8, 2006, from US$74.5 million for the
twelve weeks ended Oct. 9, 2005.  The increase in sales for the
third quarter of 2006 is the result of US$1.5 million or 2.1% of
higher sales in the company's quick service restaurants, with
comparable restaurant sales increasing by 4.8% offset, in part
by fewer company owned quick service restaurants in operation
during 2006 and slightly lower restaurant sales of the company's
consolidated other concepts as a result of the sale of a joint
venture and two company owned restaurants.

Franchise related revenues increased to US$3.3 million for the
third quarter of 2006 from US$2.9 million in the third quarter
of 2005, attributable to additional locations opened during the
last twelve months (net of closed locations).

Real estate and other revenues decreased by US$700,000 in the
third quarter of 2006 from US$1.9 million in the third quarter
of 2005, primarily attributable to a reduction in rental income
in one of the subsidiaries resulting from a tenant bankruptcy
and a decrease in certain food rebates the company receives
based on franchisee's level of purchase.

Cost of food and paper products as a percentage of restaurant
sales improved by 1.2 percentage points to 19.3% for the 12
weeks ended Oct. 8, 2006, from 20.5% for the 12 weeks ended
Oct. 9, 2005.  The cost of cheese in the third quarter of 2006
averaged approximately US$1.40 per pound compared to an average
of approximately US$1.68 per pound for the third quarter of
2005.  This US$0.28 per pound improvement in cheese cost
accounted for US$600,000 of the improvement.  Improved
operational controls, combined with selective price increases
implemented in 2005, were the primary reasons for the remainder
of the improvement in cost of sales as a percentage of
restaurant sales.

Payroll and other employee benefits as a percentage of
restaurant sales was 26.5% in the third quarter of 2006 compared
to 28.3% in the third quarter of 2005.  Payroll costs decreased
US$1.1 million as compared to the third quarter of 2005 as a
result of improved efficiencies and improved sales.

Other operating costs increased by US$200,000 for the twelve
weeks ended Oct. 8, 2006, from the third quarter of 2005 and, as
a percentage of restaurant sales, decreased to 35.1% from 35.4%,
primarily attributable to an increase in bonus expense partially
offset by lower repairs and maintenance.

General and administrative expenses were US$6.7 million for the
third quarter of 2006 compared to US$5.6 million the third
quarter of 2005, primarily due to upgrades and additions to
corporate and franchise personnel and an increase in a long-term
executive bonus plan accrual.

Interest expense of US$7 million for the third quarters of both
2006 and 2005 relates primarily to the 11%, US$255 million
senior notes the company issued to finance its going private
transaction in 1999 and the 8.4%, US$16 million mortgage loan on
its corporate headquarters building.

Equity in the net income of unconsolidated affiliates in other
concept restaurants in which the company has a 50% or less
ownership interest increased by US$200,000 in the third quarter
of 2006 from the third quarter of 2005 as a result of improved
performance.

In the third quarter of 2006 the company had an income tax
credit of US$100,000 for changes in taxable income projections
in states that do not recognize Subchapter S corporation status
of the Internal Revenue Code, pursuant to which substantially
all taxes on income are paid by shareholders.  Tax expense of
US$500,000 for the third quarter of 2005 was for taxes owed to
jurisdictions that do not recognize S corporation status or that
tax entities based on factors other than income and for taxes
withheld at the source of payment on foreign franchise income
related payments.

At Oct. 8, 2006, the company's balance sheet showed
US$378.4 million in total assets, US$312.2 million in total
liabilities, and US$66.2 million in total stockholders' equity.

                  Sources and Uses of Cash

The company has not historically required significant working
capital to fund existing operations and has financed capital
expenditures and investments in joint ventures through cash
generated from operations.

Net cash used in operating activities was US$4.0 million for the
forty weeks ended Oct. 8, 2006, compared to US$11.2 million used
during the forty weeks ended Oct. 9, 2005.  The decrease in net
cash used in operating activities was primarily attributable to
a lower net loss combined with a lower increase in prepaid
expenses partially offset by an accounts payable decrease.

Net cash used in investing activities was US$900,000 higher in
the forty weeks ended Oct. 8, 2006, increasing to US$9.0 million
from US$8.1 million for the forty weeks ended Oct. 9, 2005.  The
increase was primarily due to increased restaurant remodeling
partially offset by proceeds from the sale of restaurant
property and equipment and capital contributions from partners
to consolidated joint ventures.

Full-text copies of the company's consolidated balance sheet for
the 12-week period ended Oct. 8, 2006, are available for free
at:

              http://researcharchives.com/t/s?16a4

                           Merger

Sbarro has disclosed the terms of its merger agreement with
MidOcean SBR Holdings, LLC, and MidOcean SBR Acquisition Corp.
Under the merger agreement MidOcean Acquisition will be merged
with and into Sbarro Inc., with Sbarro Inc. continuing as the
surviving corporation.

Under the Merger Agreement, the stockholders of Sbarro will
receive, in the aggregate:

    (i) cash consideration of US$417 million less adjusted debt;

   (ii) a distribution of certain cash of Sbarro in
        consideration for the delivery to Sbarro of certain
        shares of common stock of Sbarro Inc.; and

  (iii) a preferred interest in Holdings comprised of 33,000
        Class A Units, each with an initial stated value of
        US$1,000.

                        About Sbarro Inc.

Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in  
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods.  As of Oct. 8, 2006, the
company owned and operated 479 and franchised 476 restaurants
worldwide under brand names such as "Sbarro," "Umberto's," and
"Carmela's Pizzeria."  Total revenues for fiscal 2005 were
approximately US$348 million.  The company has restaurants in
Australia, Japan, New Zealand and the Philippines.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
November 24, 2006, 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 held its Caa1 Corporate Family Rating for
Sbarro and held its Caa1 rating on the company's US$255 million
Guaranteed 11% Senior Unsecured Notes due on September 2009.  
Moody's also assigned an LGD4 rating to those bonds, suggesting
noteholders will experience a 53% loss in the event of a
default.


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

B.T. FROZEN: Court Orders Wind-Up of Operations
-----------------------------------------------
The High Court of Singapore has entered a wind-up order on
Nov. 24, 2006, for B.T. Frozen Food Trading Pte Ltd.

As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 14, Singapore Food Industries Limited filed the petition
against the company on Sept. 15, 2006.

Accordingly, B.T. Frozen's creditors are required to file their
proofs of debt with the company's liquidator.

B.T. Frozen's liquidator can be reached at:

         The Official Receiver
         45 Maxwell Road #06-11
         The URA Centre (East Wing)
         Singapore 069118


CHEMTURA CORP: Raising Elemental Bromine Prices Up to 20%
---------------------------------------------------------
Chemtura Corp. will increase worldwide delivered bulk elemental
bromine pricing up to 20%, on Dec. 5, 2006, where contracts
allow.  Brominated derivative products will increase
accordingly.  Anne Noonan, Vice President and General Manager,
Flame Retardants and Brominated Performance Products, stated,
"This price increase is necessary to recapture the full value of
our products and services, cover raw material inflation and
justify reinvestment economics."

                     About Chemtura Corporation

Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:
CEM) -- http://www.chemtura.com/-- is a global manufacturer and
marketer of specialty chemicals, crop protection and pool, spa
and home care products.  The company has approximately 6,400
employees around the world and sells its products in more than
100 countries.  In the Asia Pacific, Chemtura has facilities in
Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, and Thailand.

                          *     *     *

Standard & Poor's Ratings Services revised its outlook on
Middlebury, Connecticut-based Chemtura Corp. to stable from
positive and affirmed the existing 'BB+' corporate credit and
senior unsecured debt ratings.

Moody's Investors Service assigned a Ba1 rating to Chemtura
Corp.'s US$400 million of senior notes due 2016 and affirmed the
Ba1 ratings for its other debt and the corporate family rating.


CKE RESTAURANTS: S&P Lifts Corporate Credit Rating to BB-
---------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Carpinteria, California-based quick-service operator
CKE Restaurants Inc. to 'BB-' from 'B+'.  All ratings are
removed from CreditWatch, where they were placed on Oct. 24,
2006, with positive implications.

The outlook is stable.

"The upgrade reflects CKE's substantial debt reduction and
improved operating performance over the past three years," said
Standard & Poor's credit analyst Diane Shand.

CKE has also substantially reduced debt over the past three
years through the conversion of a portion of its convertible
notes into common equity and, to a lesser degree, repayment of
debt.

Total funded debt declined to US$183.6 million at Aug. 14, 2006,
from US$418.7 million at Jan. 26, 2004.  Cash flow protection
measures have strengthened as a result of better profitability
and reduced debt.  EBITDA coverage of interest increased to 3.6x
in the 12 months ended Aug. 14, 2006, from 2.9x at the end of
2005, and total debt to EBITDA declined to 2.8x from 3.6x.

The rating on CKE reflects the company's small size in the
highly competitive quick-service sector of the restaurant
industry and poor historical operating performance under the
Hardee's brand name.  These risks are partially offset by its
improving profitability in the past three years.

CKE is an operator and franchiser of restaurants operating
primarily under the Carl's Jr. and Hardee's brand names.  In
recent years, management has shifted its focus to premium
products from discount products and is targeting males in the
18-35 age range.  Results have been encouraging, with sales
gains and margin improvement in the past three years.  Same-
store sales at Carl's Jr. rose 5.6% in the first nine months of
2006, following gains of 2.2% in all of 2005, while Hardee's
same-store sales increased 4.8% after being flat in all of 2005.

                     About CKE Restaurants

Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants.  The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names.  As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries -- including Singapore.


FREESCALE SEMICON: Fitch Withdraws Ratings Following Buyout
-----------------------------------------------------------
Fitch Ratings has withdrawn ratings for Freescale Semiconductor,
Inc.:

   -- Issuer Default Rating 'BB+';
   -- Senior Unsecured Bank Credit Facility 'BB+'; and,
   -- Senior Unsecured Notes 'BB+'.

Fitch believes that disclosure of financial information will be
inadequate for Fitch to maintain ratings after the company's
acquisition by a consortium of private equity firms led by The
Blackstone Group in a deal valued at approximately
US$17.5 billion.  Fitch will no longer provide ratings coverage
of Freescale.

                      About Freescale

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale became a publicly traded company in July 2004.  The
company has design, research and development, manufacturing or
sales operations in more than 30 countries, including Australia,
China, Hong Kong, India, Japan, Korea, Malaysia, Taiwan and
Singapore.


HEXION SPECIALTY: Posts US$14-Mil. Net Loss in 2006 Third Qtr.
--------------------------------------------------------------
Hexion Specialty Chemicals Inc. reported a US$14 million net
loss on US$1.3 billion of net sales for the third quarter ended
Sept. 30, 2006, compared with a US$6 million net loss on
US$1.1 billion of net sales for the same period in 2005.

Net loss increased US$8 million due to increases in interest
expense of US$6 million, attributable to higher average debt
levels and higher interest rates, and an increase in income tax
expense of US$3 million, primarily as a result of an increase in
earnings from foreign operations.

Net sales increased US$211 million as a result of incremental
net sales of US$117 million contributed by the acquired
businesses and the Brazil based consumer adhesives company Alba
Adesivos Industria e Comercio Ltda. which was sold in March
2006.

The company was successful in driving volumes higher across
several of its product lines, primarily in the base epoxy and
specialty epoxy resins offset by lower volumes in the inks and
coatings product lines.  The company also achieved stronger
pricing, primarily in its formaldehyde, coatings and inks
product lines, due to the partial pass through of higher raw
material costs to customers.  Net favorable currency translation
of US$14 million also contributed to the increase primarily due
to the strengthened Canadian dollar and Brazilian real as
compared to the U.S. dollar.

Gross profit increased by US$9 million, to US$179 million, in
the third quarter of 2006 compared to US$170 million in the
third quarter of 2005.  In 2006, the net impact of the coatings
acquisition, the inks acquisition and the sale of Alba Adesivos
Industria e Comercio Ltda. added US$8 million of gross.  In
addition, the realization of synergies from the combinations
helped drive the increase, while rising raw material costs that
could not be fully passed along to customers resulted in a
negative lead-lag impact of US$8 million, which contributed to a
decline in gross margin.

Operating income increased by US$2 million, to US$57 million, in
the third quarter of 2006 compared to US$55 million in the third
quarter of 2005.  The increase is due to the impact of the
growth in gross profit, the absence of transaction costs of US$3
million and the realization of synergies from the combinations.  
These amounts were partially offset by increased integration
costs of US$18 million.  The increase in integration costs is
primarily due to additional redundancy and plant rationalization
costs and incremental administrative costs associated with
integration programs in 2006, including the implementation of a
single, company wide, management information and accounting
system.

At Sept. 30, 2006, the company's balance sheet showed
US$3.44 billion in total assets, US$3.33 billion in total
liabilities, and US$13 million in minority interest in
consolidated subsidiaries, resulting in a US$970 million
stockholders' deficit.

Full-text copies of the company's consolidated financial
statements for the third quarter ended Sept. 30, 2006, are
available for free at:

              http://researcharchives.com/t/s?16d4

                  Acquisitions and Divestitures

On Jan. 31, 2006, the company completed the purchase of the
decorative coatings and adhesives business unit of The Rhodia
Group.  The business generated 2005 sales of approximately
US$200 million, with eight manufacturing facilities in Europe
and Asia Pacific.

On Mar. 1, 2006, the company acquired the global wax compounds
business of Rohm and Haas.  The business generated 2005 sales of
approximately US$10 million.  The purchase included Rohm and
Haas' wax compounds technology and product lines, manufacturing
equipment and other business assets.

On June 1, 2006, the company acquired the ink and adhesive
resins business of Akzo Nobel.  The business generated 2005
sales of approximately US$215 million and includes ten
manufacturing facilities in Europe, Asia Pacific, North America
and South America.

The aggregate purchase price, net of cash acquired, for the
three acquisitions, including related direct costs, was US$181
million.

On Mar. 31, 2006, the company sold Alba Adesivos Industria e
Comercio Ltda, a producer of branded consumer and professional
grade adhesives.  On Mar. 31, 2006, the company also completed
the sale of its remaining 10% interest in Japan Epoxy Resin Co.,
Ltd., to its joint venture partner.  On June 1, 2006, the
company completed the sale of an additional 5% interest in HA-
International, LLC, a joint venture between the company and
Delta- HA, Inc. At Sept. 30, 2006, the company's remaining
economic interest in HA-International is 60%.

                    Discontinued Operations

On Aug. 1, 2006, the company sold its Taro Plast S.p.A.
business, which was acquired in the Bakelite acquisition and
formerly reported in the Epoxy and Phenolic Resins segment.  
Accordingly, Taro Plast has been reported as discontinued
operations.

                    Sources and Uses of Cash

In the nine months ended Sept. 30, 2006, net operating
activities provided cash of US$4 million, compared to US$103
million in the same period in 2005.

In the nine months ended Sept. 30, 2006, investing activities
used cash of US$220 million.  The company used US$181 million
for the coatings acquisition, the wax compound acquisition and
the inks acquisition.  The company also used US$85 million for
capital expenditures, primarily for plant expansions and
improvements.  The company received proceeds of US$47 million
for business divestitures.

In the nine months ended Sept. 30, 2005, investing activities
used cash of US$294 million.  The company used US$234 million
for the acquisitions of the Bakelite and Pacific Epoxy
businesses and US$61 million for capital expenditures, primarily
for plant expansions and improvements.

In the nine months ended Sept. 30, 2006, financing activities
provided cash of US$94 million.  The company made long-term debt
repayments of US$2.15 billion, incurred total long-term
borrowings of US$2.65 billion and net short-term debt borrowings
of US$18 million, primarily related to the debt restructuring
completed in the second quarter.  Also in conjunction with the
debt restructuring, the company paid US$397 million from the
proceeds of the amended and restated credit facility to redeem
preferred stock and paid US$17 million of debt refinancing fees,
which have been capitalized and will be amortized over the term
of the facility.  In addition, the company paid US$5 million of
IPO related costs, which were written off when the company
suspended its IPO during the second quarter.

In the nine months ended Sept. 30, 2005, financing activities
provided cash of US$209 million.  Net cash generated by
financing activities was primarily due to long-term debt
borrowings of US$1.19 billion related to the floating rate
second-priority senior secured notes and a US$500 million term
loan under the company's previous credit facility.  These
borrowings were partially offset by net debt repayments and
debt-financing fees paid of US$790 million primarily related to
the replacement of the Resolution Performance and Resolution
Specialty credit facilities.  The company paid a dividend of
US$523 million, which was funded through the net proceeds
received from the issuance of preferred stock of US$334 million
and from amounts borrowed under the Hexion credit facility.  The
company also made payments of US$8 million for costs related to
the proposed IPO.

                          About Hexion

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
company has 86 manufacturing and distribution facilities in 18
countries.

The company has its Asian headquarters in Singapore, with
offices in Australia, China, Korea, Malaysia, New Zealand,
Taiwan, and Thailand.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Nov. 16, 2006, that Moody's Investors Service assigned B3
ratings to the new guaranteed senior secured second lien notes
due 2014 of Hexion Specialty Chemicals Inc.  The company expects
to issue roughly US$825 million of notes split (55/45) between
fixed and floating rate notes.  The new notes will be used to
refinance roughly US$625 million of existing second lien notes
and partially fund a US$500 million dividend to existing
shareholders.  A US$375 million increase in the company's
existing guaranteed senior secured first lien term loan to
US$2 billion, rated Ba3, will fund the remainder of the
extraordinary dividend.

Moody's also affirmed Hexion's other long term debt ratings and
its SGL-2 speculative grade liquidity rating.  As a result of
this refinancing, the LGD assessment rates have changed as shown
in the table below.  The outlook is stable and the ratings on
the existing second lien notes will be withdrawn upon successful
completion of the refinancing.

New ratings assigned:

   * Hexion Specialty Chemicals Inc.

   -- Floating Rate Gtd. Second Lien Sr. Sec Notes due 2014 --
      B3, LGD5, 75%; and

   -- Fixed Rate Gtd Second Lien Sr Sec Notes due 2014, -- B3,
      LGD5, 75%.

Ratings affirmed with revised LGD rates:

   -- US$225mm Gtd Sr Sec Revolving Credit Facility due 5/2011
      -- Ba3, LGD2, 24% from 29%;

   -- US$50mm Gtd Sr Sec Letter of Credit Facility due 5/2011 --
      Ba3, LGD2, 24% from 29%;

   -- US$1,625mm Gtd Sr Sec Term Loan due 5/2013 -- Ba3, LGD2,
      24% from 29%*;

   -- US$300mm Flt Rate Gtd Second Lien Sr Sec Notes due 7/2010
      -- B3, LGD5, 75% from 77%**;

   -- US$325mm 9.0% Gtd Second Lien Sr Sec Notes due 7/2014 --
      B3, LGD5, 75% from 77%**; and

   -- US$34.0mm Pollution Control Revenue Bonds Series 1992 due
      12/2009 -- B3, LGD5, 75% from 77%.

Ratings affirmed:

   * Hexion Specialty Chemicals Inc.

   -- Corporate Family Rating -- B2;

   -- Probability of Default Rating -- B2;

   -- US$114.8mm 9.2% Sr. Unsec Debentures due 3/2021 -- Caa1,
      LGD6, 94%;

   -- US$246.8mm 7.875% Sr. Unsec Notes due 2/2023 -- Caa1,
      LGD6, 94%; and

   -- US$78.0mm 8.375% S.F. Sr. Unsec Debentures due 4/2016 --
      Caa1, LGD6, 94%.

Standard & Poor's Ratings Services assigned its 'B+' rating and
its recovery rating of '3' to Hexion Specialty's US$1.675
billion senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


HOCK HENG: Liquidator to Receive Claims Until Dec. 22
-----------------------------------------------------
Hock Heng Trading & Construction Pte Ltd requires its creditors
to file their proofs of debt by Dec. 22, 2006.

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

As reported by the Troubled Company Reporter - Asia Pacific,
Bank of China Limited filed the wind-up petition against the
company on Nov. 3, 2006.

The company's liquidator can be reached at:

         The Official Receiver
         The URA Centre (East Wing)
         45 Maxwell Road #06-11
         Singapore 069118


ODYSSEY RE: Fairfax Completes Offering of Firm's Common Shares
--------------------------------------------------------------
Odyssey Re Holdings Corp. disclosed the completion of an
underwritten public offering by Fairfax Financial Holdings
Limited of 9,000,000 ORH common shares, at a price of US$34.60
per share, resulting in net proceeds to Fairfax of approximately
US$300 million.  Fairfax has granted the underwriters an option
to purchase up to 1,350,000 additional shares of common stock to
cover over-allotments, if any.  The offering was jointly led
by Citigroup Corporate and Investment Banking and Wachovia
Capital Markets, LLC.

Fairfax, which continues to own a majority of the shares of
OdysseyRe after the offering, intends to use the proceeds it
received from the offering for general corporate purposes, which
may include opportunistically effecting open market or privately
negotiated repurchases of its outstanding debt or shares.  
Odyssey Re did not receive any proceeds from the sale of the
shares.

A written prospectus relating to the offering may be obtained
from:

         Citigroup Corporate and Investment Banking
         Brooklyn Army Terminal
         140 58th Street, 8th Floor
         Brooklyn, NY 11220
         Telephone: 718-765-6732; or

         Wachovia Capital Markets, LLC
         Attn: Equity Syndicate
         375 Park Avenue, 4th Floor
         New York, NY 10152
         e-mail: equity.syndicate@wachovia.com

                        About Odyssey Re

Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance.  Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited.  The company underwrites through offices in the United
States, London, Paris, Toronto, Mexico City and Singapore.
Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.

                          *     *     *

Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2
from Moody's and BB from Fitch.  The Company's senior unsecured
debt and long-term issuer default ratings also carry BB+ from
Fitch.  Moody's placed its rating on Oct. 12, 2005 with a stable
outlook.  Fitch placed its ratings on March 23, 2006.


SING HOE: Pays First and Final Dividend to Creditors
----------------------------------------------------
Sing Hoe Metal Pte Ltd, which is in members' voluntary
liquidation, paid the first and final dividend to its creditors
on Dec. 15, 2006.

The company paid 100% of all admitted claims.

The company's liquidator can be reached at:

         Ng Geok Mui
         c/o BDO Raffles
         5 Shenton Way
         #07-01 UIC Building
         Singapore 068808


TELCORDIA TECH: Moody's Lowers Corp. Family Rating to B3
--------------------------------------------------------
Moody's Investors Service concluded its review of Telcordia
Technologies, Inc. and downgraded the company's corporate family
rating two notches from B1 to B3 with a negative outlook.  The
review was prompted by the company's declining revenue and
EBITDA forecasts as well as its substantial reduction in
liquidity during the first half of the fiscal year.  The
downgrade to B3 reflects the company's relatively high leverage
at 5.1x debt to pro forma EBITDA for LTM July 31, 2006, coupled
with year over year quarterly declines in revenue and EBITDA,
ongoing liquidity challenges in managing highly seasonal cash
flows generated by life cycle program (LCP) payments from U.S.
telecom carriers, and significant challenges to the company's
business model, which previously enjoyed an incumbent vendor
status among telecom carriers dating back to the company's
beginnings as Bellcore.

These ratings were downgraded:

   -- Corporate Family Rating - to B3 from B1;

   -- US$100 million senior secured revolving credit facility
      maturing 2011 rated B1 (LGD3 - 31%) from Ba3 (LGD3 - 31%);

   -- US$570 million senior secured term loan maturing 2012
      rated B1 (LGD3 - 31%) from Ba3 (LGD3 - 31%); and

   -- US$300 million senior subordinated notes due 2013 rated
      Caa2 (LGD5 - 86%) from B3 (LGD5 - 86%)

The negative outlook reflects Moody's concerns regarding
liquidity and product mix.  Moody's expects cash balances at
fiscal year end January 31, 2007, which will be used to fund
fiscal 2008 operations, to be materially below the level of the
same period last year.  Additionally, declines in spending by
telecom carriers on Telcordia's legacy OSS products are likely
to continue to outpace the rate of adoption of Telcordia's next
generation OSS and IMS product lines.  The ratings could face
additional downward pressure should trends continue to worsen or
the company violates financial covenants within its debt
facilities.

                      About Telcordia Technologies

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


WRQ SOFTWARE: To Receive Proofs of Debt Until Jan. 8
----------------------------------------------------
WRQ Software Pte Ltd, which was placed under members' voluntary
liquidation, will be receiving proofs of debt until Jan. 8,
2006.

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

The company's liquidator can be reached at:

         Lau Chin Huat
         c/o 6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


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

G STEEL: Unit Acquires Shares from NSM
--------------------------------------
G Steel Public Company Ltd.'s subsidiary Oriental Access Company
Ltd has acquired 189,684,342 common shares from Nakornthai Strip
Mill Pcl.

The acquired shares -- representing around 1% of NSM's paid-up
capital -- were converted from secured claims that are
convertible into equity pursuant to NSM's rehabilitation plan.

Consequently, G Steel PCL and its subsidiary now have aggregate
shares of 4,157,469,680 or around 20% of NSM's paid-up capital.

As reported by the Troubled Company Reporter - Asia Pacific on
June 28, 2006, G Steel would invest US$180 million to buy a
secured right which will be used to convert NSM's debt into
equity.

G Steel Public Company Ltd, headquartered in Bangkok, produces
hot rolled coils (HRC) in different grades and gauges. G Steel
is a stand-alone operating entity with no related group
companies.

                          *     *     *

Standard & Poor's Ratings Services said on September 26, 2006,
that it has affirmed the B+ corporate credit rating on
Thailand's G Steel Public Co. Ltd.  The outlook is negative.

In addition, Moody's Investors Service on September 21, 2006,
downgraded G Steel's corporate family and senior unsecured bond
ratings from B1 to B2.  

This rating action follows the company's announcement that it
has completed the purchase of up to US$180 million in NSM
convertible bonds, which will allow G Steel to convert into
approximately 33% stake in NSM over the next 18 months.  The
ratings outlook is stable.


KASIKORNBANK: To Set Up SME Venture Capital Fund
------------------------------------------------
Kasikornbank will set up K SME Venture Capital Fund to support
small and medium enterprises with an initial investment of
THB200 million, the Nation reports.  

Boontuck Wangcharoen, the bank's executive vice president told
the paper that the venture would service Kasikorn's customers
and SME business operators and would act as an alternative to
bank loans.

"According to the bank's experience with providing loans to
SMEs, once the businesses grow, they normally face an
insufficiency of capital.  Thus, the new service will assist
them to expand their businesses and strengthen the country's
SMEs," Mr. Boontuck said, adding that the service is planned to
start in the second quarter of next year.

The fund's period of investment is at least five years, the
Nation relates.   The shareholding proportion in each SME would
however depend on each company's decision, as the bank has not
set any exact target.  In addition, the amount of investment
would be unlimited and could be expanded in line with customers'
demand.

Meanwhile, Mr. Boontuck said the bank aimed to provide SME loans
of THB50 billion next year, a growth rate of 20%.  In 2006, the
bank expects its SME loans to increase by 24%, higher than its
earlier target of 16%.

Kasikorn aims to boost fee income from SME loans by 40% next
year -- up from 20% this year -- mainly through trade finance
and cash-management services, the Nation says.  

Currently, the bank's SME out-standing loans are around THB260
billion, or 40% of its total loan portfolio.

                          *     *     *

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

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

On October 24, 2006, the Troubled Company Reporter - Asia
Pacific, reported that Fitch Ratings affirmed the ratings of
Kasikornbank 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.

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

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



                            *********

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,
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Information contained herein is obtained from sources believed
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                 *** End of Transmission ***