TCRAP_Public/061221.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 21, 2006, Vol. 9, No. 253

                            Headlines

A U S T R A L I A

AUSCORP CONSTRUCTIONS: Federal Court Issues Wind-Up Order
CRAIGHAVEN INVESTMENTS: Creditors' Proofs of Debt Due on Jan. 30
JULCRA TWO: Inability to Pay Debts Prompts Wind-Up
LABSTAFF HOLDINGS: Members' Final Meeting Slated for Jan. 19
MACARTHUR ESTATE: Schedules Final Meeting on January 19

MULTIPLEX GROUP: Takes on Enforceable Agreement with ASIC
NORD RESOURCES: Inks Settlement Pact with TMD Acquisition
NORD RESOURCES: Amends Pact with Coyote Springs & Mimbres Owners
PEABODY ENERGY: Moody's Rates Conv. Junior Sub. Debenture at Ba2
PRA PERSONNEL: To Declare Second and Final Dividend on Jan. 19

SOUTHERN CROSS: Members Resolve to Wind-Up Firm
TASMANIAN MOTELS: Members to Receive Wind-Up Report on Jan. 9
TUTORMASTER: ASIC Obtains Wind-Up Orders from Court
UBS DISCOUNT: Members to Hear Liquidators' Report
UNILAP PTY: Liquidator to Present Wind-Up Report on Jan. 16

VILLAGE ROADSHOW: Tax Treatment of Proposed Capital Return
WARRENMANG: Court Appoints McGrathNicol + Partners as Liquidator
WESTPOINT GROUP: ASIC Updates Federal Court on Investigation
WESTPOINT GROUP: N. Burnard Charged with 18 Criminal Offenses


C H I N A   &   H O N G  K O N G

ANDREW CORP: Posts US$34.2 Million Net Loss in FY Ended Sept. 30
CASCADES INC: Norampac Acquisition Cues DBRS to Lower Ratings
COUDERT BROTHERS: Seeks Extension of Excl. Plan-Filing Period
COUDERT BROTHERS: Hires Kurtzman Carson as Claims Agent
COUDERT BROTHERS: Panel Clamors for Ch. 11 Trustee Appointment

D.R.A. TRADING: Faces Liquidation Proceedings
DIA-BRILLIANT JEWELRY: Court Sets Wind-Up Hearing on Jan. 17
EMI GROUP: S&P Removes Ratings from Watch Neg. on Bid Rejection
FERRO CORP: Declares US$0.145 Per Share Quarterly Dividend
GEORGIA-PACIFIC: Fitch Rates New US$1.25-Bil. Senior Notes at B+

MGM MIRAGE: Moody's Rates New US$750-Million Senior Notes at Ba2
MGM MIRAGE: S&P Puts BB Rating on Proposed US$750 Mil. Sr. Notes
PETROLEOS DE VENEZUELA: Oil Purchase Averages 703,000 Barrels
PETROLEOS DE VENEZUELA: Inks Lubricants Supply Pact with Alba
PETROLEOS DE VENEZUELA: May Bring in US$6.9B to Treasury in 2007

POPOLARE DI VERONA: Okays Merger with Banca Popolare Italiana
POPOLARE DI VERONA: Merger Deal Sees 1,350 Job Cuts at New Group
ROYAL CARIBBEAN: Names Steve Shaiken VP of Onboard Revenue
SAKABUN (H.K.): Appoints Joint Liquidators
SANMINA-SCI: Delays Form 10-K Filing for FY Ended Sept. 30, 2006

SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative
SHAW: China Picks Westinghouse Consortium to Build Nuclear Plant
WELL BOND: Court Appoints Joint Liquidators
YING KONG: Joint Liquidators Cease to Act


I N D I A

AMERICAN AXLE: Moody's Holds Corporate Family Rating at Ba3
BALLY TECH: To File Form 10-Q Quarterly Reports by Dec. 22
BALLY TECH: Appoints Robert L. Guido to Board of Directors
IFCI LTD: ABN Amro London Increases Stake to 5.09%
IMAX CORPORATION: Moody's Affirms B3 Corporate Family Rating

IMAX CORP: Focusing on Worldwide IMAX Network Growth
INDIAN OIL: Raises US$200 Mil. to Refinance Term Loan Facility
INDIAN OIL: Board to Consider Declaring Interim Dividend
INDIAN OVERSEAS: Signs MOU on Infrastructure Funding with IIFC
INDUSTRIAL DEVELOPMENT: To Receive US$336 Mil. in NPA Recovery

INDUSTRIAL DEVELOPMENT BANK: Inks MOU with U.S.-Based IFC
INDUSTRIAL DEVELOPMENT: Primary Dealership Unit Now Incorporated
ITI LTD: Widens Net Loss to INR1.458 Bil. in 2006 3rd Quarter


I N D O N E S I A

BANK RAKYAT: Expects Profit To Increase 10% This Year
HANOVER COMPRESSOR: Calls for Redemption of 7-1/4% Securities
INTERNATIONAL NICKEL: To Clarify Lower Output
MEDCO ENERGI: S&P Affirms 'B+' Corporate Credit Rating
PERUSAHAAN GAS: S&P Revises Outlook to Positive; Affirms Ratings

VERITAS DGC: Shareholders to Meet Jan. 9 to Vote on CGG Merger


J A P A N

DELPHI CORP: Investor Group Commits Up to US$3.4 Billion
DELPHI CORP: Steering Unit Books US$3.3 Bil. in New Business
SOLO CUP: Elects Four New Members to Board of Directors
SOLO CUP: Launches Performance Improvement Program


K O R E A

PANTECH CO: Pantech&Curitel's Stock Resumes Trading
WOORI BANK: To Sell 8.6-Mil. Shares in LG Card for KRW585 Bil.
* Central Bank Requirement Cues Banks to Cut Forex Deposit Rates


M A L A Y S I A

ATMEL CORP: Intends to Sell UK, Germany Wafer Fabrication Plants
ATMEL CORP: NASDAQ Conditionally Grants Continued Listing
AVAYA INC: Earns US$48 Million in Fiscal Quarter Ended Sept. 30
FALCONBRIDGE: Xstrata's Chilean Union Snubs Wage Offer
FOAMEX INTERNATIONAL: Wants Plan Solicitation Procedures Amended

FOAMEX INTERNATIONAL: Files Supplements to Second Amended Plan
FOAMEX INT'L: Pa. Revenue Dept. Opposes Amended 2nd Ch. 11 Plan
SOLUTIA INC: Wants to Sell Texas Land to Shintech Inc.


N E W   Z E A L A N D

ARCHILLES PROPERTIES: Court Appoints Joint Liquidators
BACCHID BENEVOLENCY: Court to Hear Liquidation Petition
BYRNE TRUST: Creditors Must Prove Debts by January 4
DEVOX SERVICES: Hearing of Liquidation Petition Set for March 8
ELITE HORSE: Court Sets Liquidation Hearing on March 1

H & P DEVELOPMENTS: Creditors Must Lodge Claims by Feb. 8
LEGACY MOTORS: Petition Hearing Slated for March 8
NATURE'S FOREST: Faces Liquidation Proceedings
OSBORNE HOLDINGS: Creditors to Prove Debts by December 22
VALLEY ROYAL: Commences Liquidation Proceedings


P H I L I P P I N E S

METRO PACIFIC: MPIC Opens for Trading at the PSE
PHILIPPINE LONG DISTANCE: DoCoMo to Increase Shares by 3.2%
* Capital Intelligence Revises RP's Sovereign Rating Outlook


S I N G A P O R E

APOLLO ENTERPRISES: Liquidators to Receive Claims Until Jan. 9
HEXION SPECIALTY: ACC Completes Review of Orica Acquisition
MAE ENGINEERING: Changes Location of Share and Warrant Registrar
LINDETEVES-JACOBERG: Updates on Utilization of Rights Issue
PETROLEO BRASILEIRO: Accelerating Ship Construction Tender

PETROLEO BRASILEIRO: Approves Petros Plan Subscription Reopening
PETROLEO BRASILEIRO: Authorizes Share Repurchase Program
SEA CONTAINERS: Wants to Employ Appleby Hunter as Special Atty.


T H A I L A N D

BLOCKBUSTER INC: Improved Cash Flow Cues S&P's Stable Outlook
DAIMLERCHRYSLER: U.S. Unit Ceases Production on Various Plants
DAIMLERCHRYSLER: Unit Ordered to Pay US$350MM in U.S. Fraud Case
FEDERAL-MOGUL: Court OKs Inter-company Equity Interest Transfers
OMNOVA SOLUTIONS: Fitch Affirms Issuer Default Ratings at B+

     - - - - - - - -

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

AUSCORP CONSTRUCTIONS: Federal Court Issues Wind-Up Order
---------------------------------------------------------
On Dec. 1, 2006, the Federal Court of Australia ordered the wind
up of Auscorp Constructions Pty Ltd's operations.

Accordingly, Michael John Morris Smith was appointed as the
official liquidator.

The Official Liquidator can be reached at:

         Michael John Morris Smith
         Smith Hancock
         Chartered Accountants
         Level 4, 88 Phillip Street
         Parramatta, New South Wales 2150
         Australia

                  About Auscorp Constructions

Auscorp Constructions Pty Ltd is a general contractor of single-
family houses.

The company is located in New South Wales, Australia.


CRAIGHAVEN INVESTMENTS: Creditors' Proofs of Debt Due on Jan. 30
----------------------------------------------------------------
Craighaven Investments Pty Ltd, which is in liquidation, will
declare the first and final dividend for its unsecured creditors
on Feb. 6, 2007.

Accordingly, creditors are required to submit their proofs of
claim by Jan. 30, 2007, or they will be excluded from sharing in
the dividend distribution.

The liquidator can be reached at:

         H. J. Kazar
         Suite 5, 32 Thesiger Court
         Deakin ACT 2600
         Australia
         Telephone:(02) 6285 1310

                  About Craighaven Investments

Located in New South Wales, Australia, Craighaven Investments
Pty Ltd provides services.


JULCRA TWO: Inability to Pay Debts Prompts Wind-Up
--------------------------------------------------
At a general meeting held on Nov. 27, 2006, the members of
Julcra Two Pty Ltd passed a special resolution to voluntarily
wind up the company's operations due to its inability to pay
debts.

Accordingly, Richard Auricht was appointed as liquidator.

The Liquidator can be reached at:

         Richard Auricht
         242 Grenfell Street
         Adelaide, South Australia
         Australia

                        About Julcra Two

Julcra Two Pty Ltd -- trading as New Era Direct -- operates
retail stores.

The company is located in South Australia.


LABSTAFF HOLDINGS: Members' Final Meeting Slated for Jan. 19
------------------------------------------------------------
The final meeting of the members of Labstaff Holdings Pty Ltd,
which is in liquidation, will be held on Jan. 19, 2007, at
11:30 a.m.

At the meeting, Liquidator D. Hodgkinson will report on the
company's wind-up proceedings and property disposal exercises.

The Liquidator can be reached at:

         Damien Hodgkinson
         Pitcher Partners
         Level 3, 60 Castlereagh Street
         Sydney, New South Wales 2000
         Australia

                     About Labstaff Holdings

Labstaff Holdings Pty Limited operates employment agencies.

The company is located in New South Wales, Australia.


MACARTHUR ESTATE: Schedules Final Meeting on January 19
-------------------------------------------------------
Macarthur Estate Wines Pty Ltd, which is in liquidation, will
hold a final meeting for its members on Jan. 19, 2007, at
10:30 a.m., to consider the liquidator's final account of the
company's wind-up proceedings.

The liquidator can be reached at:

         William Croker
         BCP Accounting and Business Advisors
         Suites 1-8 Kellicar Lane
         Macarthur Square
         Campbelltown, New South Wales 2560
         Australia

                     About Macarthur Estate

Macarthur Estate Wines Pty Ltd operates real estate investment
trusts.

The company is located in New South Wales, Australia.


MULTIPLEX GROUP: Takes on Enforceable Agreement with ASIC
---------------------------------------------------------
On December 20, 2006, the Australian Securities and Investments
Commission has accepted an Enforceable Undertaking from
Multiplex Group relating to the company's failure to disclose a
material change in profit on the Wembley National Stadium
project in London.

The EU has secured a AU$32-million compensation fund for those
investors affected by a failure of the Multiplex Group to meet
its continuous disclosure obligations.

ASIC Chairman Jeffrey Lucy said Multiplex has also agreed to
improve compliance measures that will assist the company in
meeting its continuous disclosure obligations in the future.

"Multiplex has undertaken to commission an independent review of
its disclosure policies and procedures and has agreed to
implement recommendations generated from that independent review
to ensure compliance with industry best practice," Mr. Lucy
revealed.

"ASIC also acknowledges the decision by Multiplex to move to a
majority of independent directors within 12 months.  This is in
addition to those measures already agreed to be implemented by
Multiplex," Mr. Lucy added.

The EU also recognizes the commitment to accelerate payment of
the AU$50 million indemnity previously extended to Multiplex by
the Roberts family in respect to any loss that emerges on the
Wembley project.  These monies, discounted at the bank bill
rate, will be paid by December 22, 2006, rather than by June
2007.

The disclosure issue in question related to the February 2,
2005, meeting of the Multiplex Board, where the Board decided to
adjust the profit forecast from the Wembley project from
GBP35.7 million to zero.  However, this material change in
financial position was not disclosed to the market until
February 24, 2005.

When the announcement was finally made on February 24, the
Multiplex share price dropped from the February 23 price of
AU$5.57 (Volume Weighted Average Price) to AU$4.76 (VWAP) on the
day of the announcement.

The ASIC contends that the Multiplex Board's decision was price
sensitive and should have been disclosed to the market before
the commencement of trading on February 3, 2005, immediately
following the resolution of the Board at its meeting on the
afternoon of February 2, 2005.

The EU has been entered into without admission by Multiplex.
Multiplex contends that until its external auditors had
completed a review of the adoption of a zero profit margin for
the Wembley project, it would not be possible to issue a general
statement on the profit on the Wembley project.

On the ASIC's assessment of all the facts, it regarded the
acceptance of an EU provided an appropriate regulatory outcome
in this case rather than a Civil Penalty Order because:

   (a) a Civil Penalty would be confined to pecuniary penalty
       order of a maximum AU$1 million, with compensation not
       automatically following;

   (b) the undertaking produces a guaranteed and swift result
       that offers compensation to those who have suffered loss.
       Successful litigation would require a court to be
       convinced that a contravention of the law had occurred
       and that damages had resulted; and

   (c) the EU provides for Multiplex's disclosures policies to
       be consistent with industry best practice and monitored
       by an independent expert.

Mr. Lucy said delivering some recourse for affected investors
was a priority in the ASIC's negotiations with Multiplex.

"This EU provides a swift and fair result that balances the
regulatory imperatives, the interests of investors, and
acknowledges the willingness of Multiplex to offer a
constructive response to the regulator's concerns," Mr. Lucy
noted.

                        Settlement Offer

The AU$32 million compensation fund will be available to
investors who contracted to purchase and held Multiplex shares
between February 3, 2005 -- the date ASIC believes the market
should have been informed -- and February 24, 2005 -- the date
the announcement was made.  A Multiplex stapled security
contracted to be purchased and held during this period is an
Eligible Security under the compensation arrangements.

The amount payable in respect to an Eligible Security will be
calculated by dividing the AU$32 million fund by the total
number of Eligible Securities that accept the offer.  The
maximum amount payable is 80.98 cents for each Eligible
Security, which is the difference between the VWAP on February
23, 2005, and the VWAP on February 24, 2005.

The final amount payable per Eligible Security under this
formula cannot be calculated with certainty until all claims
submitted to Multiplex have been assessed.

The modeling suggests a return to investors of at least 60% and
probably more.  However, if the settlement is less than 60%
(less than 48 cents per Eligible Security) participants will
have an option to withdraw their acceptance.

In return for compensation, shareholders who accept the offer
will waive their right to take any legal action in respect to
the issue.

ASIC will be monitoring the compensation process to ensure
monies that are paid to investors, both institutional and
retail, are done so in a manner consistent with the intent of
the EU.

Shareholders who are related parties, like members of the
Roberts family, directors of Multiplex, and executive staff at
the relevant time, are excluded from applying for compensation
under this undertaking.

                         About Multiplex

Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its
revenue from property funds management, construction, property
development, and facilities management.  The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East.  In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion.  Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.

Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties.  Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down.  In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits.  This started a series of profit downgrades throughout
2005.

In May 2005, Multiplex admitted that its troubled Wembley
Stadium construction project may end up with a multimillion
loss.  As of February 2006, the Company is faced with liquidity
crisis after posting a massive AU$474 million loss on Wembley.

The Troubled Company Reporter - Asia Pacific reported on
Aug. 18, 2006, that Multiplex Group's financial results for the
year ended June 30, 2006, noted that the Wembley project in the
United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss.  The project loss position has
remained unchanged since December 31, 2005.


NORD RESOURCES: Inks Settlement Pact with TMD Acquisition
---------------------------------------------------------
Nord Resources Corporation has entered into an agreement with
TMD Acquisition Corporation to settle certain outstanding
matters relative to the transactions to acquire assets
comprising ASARCO Inc.'s Tennessee Mines Division zinc business.

The TMD Settlement Agreement provides that the Company will
reimburse the TMD Expenses upon the earlier of:

   (a) Dec. 22, 2006, and

   (b) the closing date of:

          (i) a registered equity offering and/or a debt project
              financing in which the Company raises not less
              than the aggregate amount of $25,000,000, or

         (ii) a significant corporate transaction in which any
              person, together with all affiliates and
              associates, becomes the beneficial owner of 51% or
              more of the outstanding shares of common stock, or
              there is a sale, lease, exchange or other transfer
              of assets valued at $12,000,000 or greater.

The settlement also provides that if the Company receives any
cash payment in full or partial settlement of the ASARCO Claim,
it is required to first remit the portion of the cash payment to
TMD Acquisition to fully pay the outstanding balance of the TMD
Expenses.

The principals of TMD Acquisition are Ronald Hirsch and Stephen
Seymour.  Mr. Hirsch serves as the Company's chairman of the
board of directors, and Mr. Seymour is a director.

                     Zinc Assets Transaction

The Company pursued, in May 2004, an opportunity to acquire
assets comprising ASARCO Inc.'s Tennessee Mines Division zinc
business.  ASARCO selected the Company with whom to negotiate
the sale and purchase of the Zinc Assets.  The Company, in Oct.
2004, entered into a secured bridge loan agreement with Regiment
Capital III, L.P., the terms of which prevented an investment in
the Zinc Assets without Regiment Capital's prior written
consent.  Regiment Capital did not consent to the direct
acquisition of the Zinc Assets.  Mr. Hirsch and Mr. Seymour, to
assist the Company, entered into an Agreement pursuant to which
they obtained the right to acquire the Zinc Assets.  They
subsequently assigned the right to TMD Acquisition, a private
corporation formed by them to facilitate an asset purchase
agreement with ASARCO.

On Aug. 2, 2005, ASARCO purported to terminate the Acquisition
Agreement and filed for Chapter 11 protection.

To preserve any right of action that it may have against ASARCO
and its bankruptcy trustee, the Company and TMD Acquisition
entered into a settlement agreement pursuant to which the
Company has taken an assignment of the Acquisition Agreement.

                      About Nord Resources

Headquartered in Dragoon, Arizona, Nord Resources Corporation
(Pink Sheets:NRDS) -- http://www.nordresources.com/-- is a
natural resource company focused on near-term copper production
from its Johnson Camp Mine and the exploration for copper, gold
and silver at its properties in Arizona and New Mexico.  The
company also owns approximately 4.4 million shares of Allied
Gold Limited, an Australian company.  In addition, the company
maintains a small net profits interest in Sierra Rutile Limited,
a Sierra Leone, West African company that controls the world's
highest-grade natural rutile deposit.

                      Going Concern Doubt

Mayer Hoffman McCann PC expressed substantial doubt about Nord's
ability to continue as a going concern after it audited the
company's financial statements for the years ended Dec. 31,
2005, and 2004.  The auditing firm pointed to the company's
significant operating losses.  Nord incurred a US$3,084,166 net
loss for the year ended Dec. 31, 2005, in contrast to a
US$864,357 net loss in the prior year.

Nord Resources' balance sheet at June 30, 2006, showed
US$4,214,657 in total assets and US$8,430,713 in total
liabilities, resulting in a US$4,216,056 stockholders' deficit.
The company had a US$3,120,573 deficit at March 31, 2006.


NORD RESOURCES: Amends Pact with Coyote Springs & Mimbres Owners
----------------------------------------------------------------
Nord Resources Corporation entered into amendments to its stock
option agreements with the Coyote Springs Owners and the Mimbres
Owners.

The Company's stock option agreements with each of the Coyote
Springs Owners and the Mimbres Owners did not contain any
provisions with respect to the treatment of the options in the
event of a merger or any other significant corporate transaction
involving the Company.

                    Coyote Spring Amendment

The Coyote Springs Owners Amendment Agreement dated Oct. 17,
2006, amends the terms of the Agreement, among others, as
follows:

   -- in the event of a merger of the Company, its obligation to
      Coyote Springs Owners will be satisfied by the payment of
      the greater of the cash amount payable or the value of the
      number of "Substitute Shares" equal to the number of
      common shares issuable at the time under the Option
      Agreement multiplied by the "Conversion Ratio";

   -- the payment will be made, at the election of the
      "Successor," either in cash or by the issuance of the
      number of Substitute Shares;

   -- in the event of a Qualifying Merger, the Company's
      obligation will be satisfied, at the option of the
      Successor, by either issuing to each of the Coyote Springs
      Owners the equivalent number of "Substitute Options"
      multiplied by the Conversion Ratio or a cash amount equal
      to the value of such Substitute Options;

   -- the exercise price of each Substitute Option will be 15%
      below the market price of the Substitute Shares on the
      date of issuance of the Substitute Options;

The Company acquired an exclusive option from Thornwell Rogers,
South Branch Resources, LLC, and MRPGEO, LLC, the Coyote Springs
Owners, to purchase the leasehold rights and mining claims
located in the Safford mining district in Graham County,
Arizona, described as "Coyote Springs".

                        Mimbres Amendment

The Mimbres Owners Amendment Agreement, amends the terms of the
Option Agreement, among others, as follows:

   -- in the event of a Qualifying Merger, the Company's
      obligation to each of the Mimbres Owners will be satisfied
      by the payment of the greater of the cash amount payable
      at that time under the Option Agreement or the value of
      the number of "Substitute Shares" at that time under the
      Mimbres Option Agreement multiplied by the "Conversion
      Ratio";

   -- the foregoing payment will be made, at the election of the
      "Successor," either in cash or by the issuance of the
      number of Substitute Shares as so calculated;

   -- in the event of a Qualifying Merger, the Company's
      obligation to each of the Mimbres Owners will be
      satisfied, at the option of the Successor, by either
      issuing to each of the Mimbres Owners "Substitute Options"
      equal to the number of Options issuable at the time under
      the Option Agreement multiplied by the Conversion Ratio or
      paying to each of the Mimbres Owners a cash amount equal
      to the value of the Substitute Options;

   -- the exercise price of each Substitute Option will be 15%
      below the market price of the Substitute Shares on the
      date of issuance of the Substitute Options;

The Company acquired an exclusive option from Thornwell Rogers,
South Branch Resources and MRPGEO, the Mimbres Owners, to
purchase the leasehold rights and mining claims for a porphyry
copper exploration target known as the Mimbres property, located
near Silver City, New Mexico.

A full text-copy of the Coyote Springs Amendment may be viewed
at no charge at http://ResearchArchives.com/t/s?1408

A full text-copy of the Mimbres Amendment may be viewed at no
charge at http://ResearchArchives.com/t/s?1409

                      About Nord Resources

Headquartered in Dragoon, Arizona, Nord Resources Corporation
(Pink Sheets:NRDS) -- http://www.nordresources.com/-- is a
natural resource company focused on near-term copper production
from its Johnson Camp Mine and the exploration for copper, gold
and silver at its properties in Arizona and New Mexico.  The
company also owns approximately 4.4 million shares of Allied
Gold Limited, an Australian company.  In addition, the company
maintains a small net profits interest in Sierra Rutile Limited,
a Sierra Leone, West African company that controls the world's
highest-grade natural rutile deposit.

                      Going Concern Doubt

Mayer Hoffman McCann PC expressed substantial doubt about Nord's
ability to continue as a going concern after it audited the
company's financial statements for the years ended Dec. 31,
2005, and 2004.  The auditing firm pointed to the company's
significant operating losses.  Nord incurred a US$3,084,166 net
loss for the year ended Dec. 31, 2005, in contrast to a
US$864,357 net loss in the prior year.

Nord Resources' balance sheet at June 30, 2006, showed
US$4,214,657 in total assets and US$8,430,713 in total
liabilities, resulting in a US$4,216,056 stockholders' deficit.
The company had a US$3,120,573 deficit at March 31, 2006.


PEABODY ENERGY: Moody's Rates Conv. Junior Sub. Debenture at Ba2
----------------------------------------------------------------
On December 14, 2006, Moody's Investors Service assigned Peabody
Energy Corporation's proposed US$500 million convertible junior
subordinated debentures a rating of Ba2.  Moody's also revised
Peabody's outlook to stable from negative.  At the same time,
Moody's affirmed Peabody's Ba1 corporate family rating and the
Ba1 senior unsecured rating on its existing revolver, term loan
and notes.  The ratings reflect the overall probability of
default of the company, to which Moody's affirms a PDR of Ba1.

The convertible junior subordinated debentures (Debentures)
rating of Ba2 reflects a loss given default of LGD-6 (95%).  The
senior unsecured rating of Ba1 reflects a loss given default of
LGD-3 (47%).  Moody's also affirmed Peabody's SGL-1 Speculative
Grade Liquidity rating.  The revision in outlook reflects the
75% equity component that Moody's credits to the "Basket D"
convertible junior subordinated debentures, and the related
notional reduction in debt.

The proceeds of the US$500 million Debentures, along with
proceeds of the recent US$900 million senior unsecured notes and
drawings under the company's term loan, are being used to
provide the long term funding of Peabody's recent acquisition of
Australian coal miner, Excel Coal Limited, for US$1.9 billion,
including assumption of debt and fees.

The acquisition of Excel will significantly expand Peabody's
operation in Australia and its penetration of both the export
metallurgical and thermal coal markets.  Excel expects to
increase its production from about 6 million tons currently to
15 to 20 million tons in 2007 and 2008.

The Ba1 corporate family rating reflects Peabody's:

   1) favorable debt to EBITDA and good earnings ratios,

   2) diversified low-cost operations,

   3) extensive and geographically diversified reserves of high
      quality coal,

   4) strong management, and

   5) portfolio of long-term coal supply agreements with a large
      number of electricity generation customers.

However, the rating also reflects the significant increase in
debt to fund the Excel acquisition, which increases Peabody's
pro forma September 30, 2006, debt to EBITDA ratio to 3.4x from
2.3x, and, giving equity credit of US$375 million to the
Debentures, the debt to capitalization ratio to 55.8% from
49.9%.  The rating also considers the volatile nature of the
coal mining business, and operating and development cost
pressures that could continue to constrain Peabody's weak free
cash flow.

The Debentures will, in Moody's view, have sufficient equity-
like features to allow it to receive basket "D" treatment, i.e.
75% equity and 25% debt, for financial leverage purposes (please
refer to Moody's Rating Methodology "Refinements to Moody's Tool
Kit: Evolutionary, not Revolutionary!" of February 2005).  This
basket designation will shift from "D" to "C" in ten years, i.e.
when the Debentures have less than fifty years to maturity.  The
basket will shift again to "B" after 20 years and "A" after the
next 10 years.  The basket allocation is based on these rankings
for the three dimensions of equity:

   (i) No maturity: Moderate -- The Debentures have a 60-year
       final maturity with a scheduled redemption after 35
       years, subject to a Replacement Capital Covenant.  The
       RCC, which obligates Peabody not to redeem or
       repurchase the Debenture unless it has previously issued
       qualifying new equity, will be put in place at inception,
       but will not be operational until year 35.  At year 35,
       Peabody is required to use its commercially reasonable
       efforts, subject to a market disruption event, to raise
       sufficient net proceeds from the issuance of qualifying
       capital securities and redeem the Debentures in full on
       each succeeding interest payment date prior to the final
       60-year maturity. If a qualifying replacement security (a
       Basket "B" security, 75% debt & 25% equity, at a minimum)
       can't be issued, the maturity extends from interest
       payment date to interest payment date until the final
       maturity in 60 years. For the first 35 years, the
       security can be called subject to intent-based
       replacement language where Peabody Energy intends to
       replace the security with the same or more equity-like
       security. The Debentures are also convertible into Basket
       D preferred stock at the option of the investor.

  (ii) No ongoing payments: Strong -- There is optional deferral
       of distributions for a maximum of 10 years and mandatory
       deferral tied to the breach of covenants (Debt to EBITDA
       >6x and EBITDA to Interest <2x for three consecutive
       quarters), without giving rise to an event of default and
       without causing acceleration.  If mandatorily deferred or
       if there is optional deferral for 5 years, distributions
       must be settled with the issuance of warrants or benign
       preferred stock (defined as truly non-cumulative
       perpetual preferred stock either callable with an RCC or
       with a mandatory deferral trigger and intent-based
       replacement language).  For warrants, there is an 84
       million share cap, and for benign preferred stock, 25% of
       the principal amount.  In bankruptcy, any distributions
       not settled with warrants or benign preferred stock are
       limited to a claim of two years.

(iii) Loss absorption: Moderate -- The Debenture will be the
       most junior subordinated debt of all existing debt, with
       limited rights and limited ability to cause acceleration.

Moody's last rating action on Peabody was to rate its US$900
million senior unsecured notes Ba1 in October 2006.

Peabody Energy Corporation -- http://www.peabodyenergy.com/--
headquartered in St. Louis, Missouri, is the world's largest
private-sector coal company with revenues in 2005 of US$4.6
billion.  Its coal products fuel 10% of all US and 3% of
worldwide electricity.  The company has coal operations in
Australia.


PRA PERSONNEL: To Declare Second and Final Dividend on Jan. 19
--------------------------------------------------------------
PRA Personnel Pty Ltd, which is subject to a deed of company
arrangement, will declare the second and final dividend on
Jan. 19, 2007.

In this regard, creditors are required to submit their proofs of
claim by Jan. 10, 2007, or they will be excluded from sharing in
the distribution.

The deed administrator can be reached at:

         John Irving
         SimsPartners
         Chartered Accountants
         Level 4, 12 Pirie Street
         Adelaide, South Australia 5000
         Australia

                       About PRA Personnel

PRA Personnel Pty Ltd operates employment agencies.

The company is located in South Australia.


SOUTHERN CROSS: Members Resolve to Wind-Up Firm
-----------------------------------------------
On Nov. 23, 2006, the members of Southern Cross Trading Pty Ltd
met and resolved to voluntarily wind up the company's
operations.

Tarquin Raoul Koch was subsequently appointed as liquidator.

The Liquidator can be reached at:

         Tarquin Raoul Koch
         Chartered Accountants
         Ground Floor, 91 Hutt Street
         Adelaide, South Australia 5000
         Australia
         Telephone: 8232 8885
         Facsimile: 8232 8886
         Email: info@matthewsassociates.com.au

                      About Southern Cross

Southern Cross Trading Pty Ltd operates beauty shops.

The company is located in South Australia.


TASMANIAN MOTELS: Members to Receive Wind-Up Report on Jan. 9
-------------------------------------------------------------
The members of Tasmanian Motels Ltd will meet on Jan. 9, 2007,
at 11:30 a.m., to receive a report regarding the company's wind-
up proceedings from Liquidator J. W. Woods.

As reported by the TCR-AP, the company's members decided to shut
down the company's operations on Sept. 4, 2006.

The Liquidator can be reached at:

         John W. Woods
         Wilson Woods & Partners
         Chartered Accountant
         30 Davey Street
         Hobart, Tasmania 7000
         Australia
         Telephone: 03 6223 4343

                     About Tasmania Motels

Tasmania Motels Pty Ltd is an accommodation provider.

The company is located in Tasmania, Australia.


TUTORMASTER: ASIC Obtains Wind-Up Orders from Court
---------------------------------------------------
On December 19, 2006, the Australian Securities and Investments
Commission has obtained orders from the Supreme Court of New
South Wales to wind up tutoring companies, Tutormaster Pty Ltd
and ABC Tutors Pty Ltd, on just and equitable grounds.

The ASIC's action follows an investigation into the two
companies after numerous complaints were received from parents
who had their credit card debited for services not provided and
from tutors who were owed payment for sessions with students.

The ASIC's investigation revealed that the companies advertised
tutoring services for school students in local newspapers.  The
companies also advertised for tutors who were subsequently
matched with students.

In support of its application to wind up the companies, the ASIC
relied on evidence that Tutormaster and ABC Tutors had not paid
tutors for tutoring services they had provided and that tutors
had been unable to get in contact with anyone from the
companies.

The ASIC also provided evidence to the Court that the companies
did not have any presence at their registered office in Sydney's
CBD and that the sole registered director of both companies --
Salvador Paje -- did not reside at the address which had been
provided to the ASIC.

Accordingly, the court appointed Stephen Parbery and Mark
Robinson of Prentice Parbery Barilla as liquidators of the two
companies.

The ASIC previously issued consumer warnings regarding
Tutormaster in February 2006 and ABC Tutors in July 2006.

Under the Corporations Act, a company is required to:

   (a) have a registered office and to lodge notice of any
       change in its registered office with the ASIC; and

   (b) lodge the address details of directors with the ASIC and
       to notify ASIC of any changes to these details.

Tutormaster Pty Ltd is based in Queensland offers after-hours
school and university tuition in New South Wales, with fees
based on qualifications of the tutor and the contracted hours.


UBS DISCOUNT: Members to Hear Liquidators' Report
-------------------------------------------------
The members of UBS Discount Investments Australia Pty Ltd, which
is in liquidation, will meet on Jan. 19, 2007, at 10:00 a.m., to
hear the liquidators' report regarding the company's wind-up
proceedings and property disposal exercises.

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 UBS Discount

UBS Discount Investments Australia Pty Ltd is an investor
relations company.

The company is located in New South Wales, Australia.


UNILAP PTY: Liquidator to Present Wind-Up Report on Jan. 16
-----------------------------------------------------------
Unilap Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on Jan. 15, 2007, at
12:00 p.m.

During the meeting, Liquidator A. R. M. Taylor will present a
report regarding the company's wind-up proceedings and property
disposal activities.

The Liquidator can be reached at:

         A. R. M. Taylor
         Meertens
         Chartered Accountants
         Level 1, 49 Woods Street
         Darwin NT 0800
         Australia

                        About Unilap Pty

Unilap Pty Ltd operates automotive repair shops.

The company is located in Darwin, NT, Australia.


VILLAGE ROADSHOW: Tax Treatment of Proposed Capital Return
----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
November 14, 2006, the Board of Directors of Village Roadshow
Limited proposed a capital return of 15 cents per ordinary share
and 15 cents per A Class preference share.  This return of
capital is subject to the approval by ordinary and preference
shareholders of a special resolution at a General Meeting on
December 22, 2006.

The TCR-AP noted that a tax ruling has been sought for the
benefit of shareholders to confirm the tax treatment of the
capital return.  The tax ruling may result in all or part of the
15 cents per share capital return being deemed to be an
unfranked dividend for tax purposes.  The return of capital will
not involve the cancellation of any shares and, if approved by
shareholders, is expected to be paid by early January 2007.

In an update, Village Roadshow has received a draft class ruling
from the Australian Taxation Office in accordance with the
company's application.  In the draft class ruling, the ATO
advises that no part of the proposed return of capital will be
taken to be a dividend for income tax purposes.

The draft class ruling has been issued subject to final ATO
review and cannot be relied upon until the final class ruling is
published by the ATO and the relevant notice appears in the
Government Gazette.

It is anticipated that publication and notification will occur
on December 20, 2006.

                     About Village Roadshow

Headquartered in Melbourne, Australia, Village Roadshow Limited
-- http://www.villageroadshow.com.au/-- is an international
media and entertainment company that operates core businesses in
cinema, movie production, film distribution, radio, and theme
parks.

The Company's troubles began in 2003 when it offered to buy back
its preference shares to head off a litigation threat by some
preference shareholders who were angered at the Company's
suspension of dividend payments.  Village Roadshow's reported
and budgeted profitability would not allow it to comfortably
fund about AU$42 million worth of ordinary and preference share
dividends out of annual earnings.  For the past years, the
Company has been facing major litigation brought by former
business partners, who had invested in its film investment
scheme.

In December 2005, the Film Production division undertook a
substantial restructure.  As part of this restructure, a US$115
million Promissory Note was issued to Crescent Film Holdings and
options to acquire a 50% shareholding in the Hollywood film
production and related film exploitation business, Village
Roadshow Pictures Group, were granted to Crescent and its
affiliates.  This initiative, together with the release of a
US$70 million security deposit (replaced by a etter of Credit),
returned significant cash reserves to Village Roadshow.  By
January 2006, Village Roadshow had advised that VRPG had reached
agreement with its financiers to increase its film production
facility from US$900 million to US$1.4 billion. VRPG will
continue to co-produce and co-finance films with its principal
production partner, Warner Bros.  The revolving period of the
facility has also been extended for a further three years.  As a
result, drawdowns will now be available under the facility until
January 2011 (previously February 2008) with the debt now
scheduled to be fully repaid by January 2015 (previously January
2012).

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
September 18, 2006, Village Roadshow Limited recorded an after
tax loss of AU$35.1 million for the year ended June 30, 2006,
consistent with guidance previously provided by the Company.
The result compared to a profit re-stated under Australian
Equivalents to International Financial Reporting Standards of
AU$49.3 million for the year ended June 30, 2005.


WARRENMANG: Court Appoints McGrathNicol + Partners as Liquidator
----------------------------------------------------------------
On December 20, 2006, the Australian Securities and Investments
Commission obtained orders from the Federal Court of Australia
directing the wind-up of Warrenmang Limited's operations.

Under the orders, Justice Finkelstein appointed Colin McIntosh
Nicol, of McGrathNicol + Partners, as the company's liquidator.

The action follows an investigation into the affairs of
Warrenmang.  The probe was recently commenced by the ASIC.
Concerns have been raised that the company may not have refunded
all the application money owed to subscribers following an
unsuccessful capital raising.  The pre-initial public offering
is believed to have raised AU$1 million in seed capital.  The
initial public offer is believed to have raised over
AU$2.2 million.

The ASIC successfully obtained an extension of previous interim
orders in the Federal Court of Australia, in Melbourne,
restraining Warrenmang's Chairman and Director, Robert Graeme
Pritchard from leaving Australia and from coming within one
hundred meters of an Australian point of overseas departure.
This action followed the ASIC's concerns that Mr. Pritchard may
have intended to leave Australia and reside in the United
Kingdom.

The Troubled Company Reporter - Asia Pacific reported on
November 27, 2006, Justice Finkelstein appointed Colin McIntosh
Nicol, of McGrathNicol+ Partners, as the provisional liquidator
for Warrenmang.

The Federal Court has set a final hearing on March 20, 2007.

The ASIC's ongoing investigation is not related to the
Warrenmang Vineyard and Resort in Bendigo, Victoria.

                        About Warrenmang

Warrenmang was incorporated on September 1, 2003, as a vehicle
to acquire wine businesses in Victoria.

Warrenmang issued a prospectus in December 2003 to raise a
minimum of AU$6 million with a view to listing the company on
the Australian Stock Exchange.  This prospectus stated that the
funds raised would be used to acquire and consolidate various
wine and vineyard businesses.  Warrenmang failed to raise the
minimum subscription and list on the ASX.

In March 2004, a supplementary prospectus was issued to extend
the offer period for a further three months.  Warrenmang was
again unsuccessful in raising the minimum amount and the planned
public float never took place.

The law requires that application money received from investors
be held in a trust account until the securities are issued or
application money returned to the investors.

The ASIC commenced its investigation following complaints
received in October 2006.  The investigation is not related to
businesses proposed to be acquired by Warrenmang as described in
the prospectus.


WESTPOINT GROUP: ASIC Updates Federal Court on Investigation
------------------------------------------------------------
On December 18, 2006, the Australian Securities and Investments
Commission updated the Federal Court in Perth on its Westpoint
investigations to support its application to extend orders
freezing the assets of key identities in the failed property
group.

ASIC is seeking to extend the orders against Normanan Carey and
various corporate entities for a period of six months, after
which the Court will review the orders.  Richard Beck, John
Dixon, and Graeme Rundle have indicated they will agree to an
extension of the preservation orders.

ASIC tendered an affidavit sworn by its Deputy Executive
Director of Enforcement, Allen Turton, to support its
application.  The affidavit outlines, to the fullest extent
possible, the nature of ASIC's current investigations.

The affidavit reveals that ASIC has already referred a brief of
evidence to the Commonwealth Director of Public Prosecutions in
respect to one of its investigations.

The affidavit identifies three major investigations focusing on:

1. Fundraising

The Fundraising Investigation focuses on representations made in
newsletters and information memoranda promoting the Westpoint
Group and related mezzanine companies issued from about May
2000.

Aspects of these documents being investigated include the non-
disclosure of risks, the non-disclosure of oversubscriptions,
the non-disclosure of conflicts of interest, and the use of
funds raised.

ASIC advised the Court that it expects this complex stream of
investigation to be completed over the next 12 to 18 months.

2. Asset Stripping

The Asset Stripping Investigation is inquiring into eight
unusual transactions that do not appear to have been performed
in the normal course of business and were designed to move
assets and transfer liabilities to the detriment of Westpoint
investors and creditors.

Transactions being investigated include a payment of AU$3.25
million from several Westpoint mezzanine companies to entities
controlled by Norman Carey, his brother, or his sister.

ASIC is also investigating the creation of interests benefiting
Norman Carey, his brother or his sister over assets of the
Westpoint Group that materialized after wind-up proceedings had
commenced.

The regulator advised the Court that it expected to have
completed its investigation into asset stripping within the next
six months.

3. Document Destruction

ASIC is also investigating an allegation that thousands of files
were deleted from computer servers belonging to Westpoint Group
companies.  The alleged deletion of these files occurred shortly
after the Federal Court made orders giving company receivers
access to the computers.

It is anticipated that this aspect of ASIC's investigation will
be completed within the next four months.

Other investigations focus on the role of licensed and
unlicensed financial advisors in relation to investments in the
Westpoint Group and the promotion, distribution, and sale of
investments in the Westpoint Group.

ASIC is also examining the non-disclosure of commissions and
misleading and deceptive conduct in the promotion of the
promissory notes issued by the Westpoint mezzanine companies.

In pursuing its investigations, ASIC has:

   (a) received and reviewed more documents relating to
       Westpoint than all of ASIC's investigations combined for
       one year and compiled a database of 4.8 million pages of
       Westpoint documents.  The database is a significant
       investigative tool for ASIC, and potentially for
       liquidators and receivers, as it allows documents of
       relevance to be readily identified and retrieved;

   (b) interviewed about 50 witnesses across Australia; and

   (c) conducted approximately 20 compulsory examinations,
       varying in duration from half a day to seven days.

ASIC told the Court it was seeking an extension to the asset
freezing orders while its investigations continued because it is
concerned that there is a real risk that the assets of various
individuals and companies associated with Westpoint might be
shifted or dissipated to the detriment of creditors.

In addition to substantive offences that the CDPP may prosecute,
other remedies available include pecuniary penalty orders under
the Proceeds of Crime Act 2002 (Cth) as well as forfeiture and
restraining orders.

                    About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group -
- http://westpoint.com.au/-- is engaged in property development
and owns or manages retail and commercial properties with a
total value of over AU$300 million.  The Group's troubles began
in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings.  The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years.  These wind-up actions are
still continuing.

In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd.  The ASIC had
applied to wind up the company on grounds of insolvency.  The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.

The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.  Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.


WESTPOINT GROUP: N. Burnard Charged with 18 Criminal Offenses
-------------------------------------------------------------
Jeffrey Lucy, Chairman of the Australian Securities and
Investments Commission announced the first criminal charges to
be brought as part of the ASIC's continuing investigation into
the collapse of Westpoint Corporation Pty Ltd and related
entities.

On December 19, 2006, Neil Austin Burnard appeared in the
Downing Centre Local Court charged with 18 criminal offences
relating to the raising of investor funds on behalf of Westpoint
by his company Palentia Pty Ltd, formerly known as Kebbel (NSW)
Pty Ltd.

Mr. Burnard has been charged with four counts of engaging in
dishonest conduct in relation to a financial product in the
course of carrying on a financial services business under the
Corporations Act and 14 counts of obtaining money by false or
misleading statements under the Crimes Act of NSW.

The ASIC alleged that Mr. Burnard engaged in dishonest conduct
in the course of carrying on a financial services business,
namely providing financial product advice, by representing to
investors that "Kebbel Investment Bank" existed when in fact it
does not.  These charges were brought under the Corporations
Act.

The ASIC also alleged that Mr. Burnard, with intent to obtain a
financial advantage for various Westpoint "mezzanine" companies,
made or published a statement, which he knew to be false or
misleading in a material particular, in that it purported that
an entity "Kebbel Investment Bank" existed when in fact it does
not.

In addition, the ASIC alleged that Mr. Burnard described himself
as a director of "Kebbel Investment Bank" and made or published
statements referring to 'Kebbel Investment Bank', which he knew
to be false or misleading. These charges were brought under the
Crimes Act.

The ASIC has previously obtained orders in the Supreme Court of
New South Wales restraining Mr. Burnard from leaving Australia
and requiring him to deliver up all passports, as well as orders
preventing him from disposing of his assets.  These orders were
initially made on June 2, 2006, after the ASIC learned that Mr.
Burnard had boarded a plane for the United States, despite
telling investigators that he would be available to speak to
them.  Mr. Burnard later returned to Australia having been
refused entry into the United States.  These orders are
continued until January 29, 2007.

The charges against Mr. Burnard have been adjourned to the
Downing Centre Local Court on February 20, 2007, for mention.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

                    About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property
development and owns or manages retail and commercial properties
with a total value of over AU$300 million.  The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings.  The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years.  These wind-up actions are
still continuing.

In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd.  The ASIC had
applied to wind up the company on grounds of insolvency.  The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.

The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.  Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.


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

ANDREW CORP: Posts US$34.2 Million Net Loss in FY Ended Sept. 30
----------------------------------------------------------------
Andrew Corp. reported a US$34.2 million net loss for the fiscal
year ended Sept. 30, 2006, compared with net income of US$38.8
million for fiscal 2005.  The loss is primarily due to the US$79
million increase in income tax expense as a result of the
recording of a valuation allowance on its U.S. deferred tax
assets.

Sales for fiscal 2006 of US$2.1 billion increased from US$1.9
billion fiscal 2005.  The sales increase resulted from higher
sales in Antenna and Cable Products and Base Station Subsystems
offset by an expected sales decline in Network Solutions.

The company's top 25 customers accounted for 69% of sales in
fiscal 2006, 2005, and 2004.  In fiscal 2006 and 2005, major
OEMs accounted for 39% of sales.  No single customer accounted
for more than 10% of sales in fiscal 2006.  In fiscal 2005,
Cingular Wireless accounted for 11% of total sales.

Gross profit margins decreased slightly from 22.3% in fiscal
2005 to 22.1% in fiscal 2006 due primarily to higher commodity
costs, especially copper, and the expected decrease in Network
Solutions margin contribution resulting from the completion of
U.S. E-911 upgrade installations.

Operating expenses were US$390 million in fiscal 2006, or 18.2%
of sales, compared with US$359 million in fiscal 2005, or 18.3%
of sales.  Operating expenses increased US$30.8 million compared
with fiscal 2005 due primarily to higher sales and
administrative costs, which increased from 11.4% of sales in
fiscal 2005 to 11.9% of sales in fiscal 2006.  Research and
development expenses increased US$5.1 million in fiscal 2006
versus fiscal 2005, but decreased as a percentage of sales from
5.5% in fiscal 2005 to 5.3% in fiscal 2006.

                 Sales by Major Geographic Region

Sales in the Americas increased 6% in fiscal 2006 compared to
fiscal 2005 due to strong growth in antenna and cable products,
power amplifiers and filter sales which were offset by sales
decreases in geolocation equipment and satellite products.

Europe, Middle East, and Africa sales increased 8% in fiscal
2006 compared to fiscal 2005 due to strong Antenna and Cable
Group sales, primarily resulting from the acquisition of
Precision Antenna Ltd., offset by lower Base Station Subsystems
Group sales.

Asia Pacific sales increased 28% in fiscal 2006 compared to
fiscal 2005 due to increased Antenna and Cable Group sales,
primarily in India, Indonesia, and China.  With the anticipated
issuance of 3G licenses in fiscal 2006, Chinese operators slowed
their investment in wireless infrastructure in fiscal 2005.

                          Gross Profit

Gross profit as a percentage of sales was 22.1% in fiscal 2006
and 22.3% in fiscal 2005.  Two of the more significant factors
driving the margin decrease were the company's changing product
mix and increased commodity costs.  Over the last three years,
Andrew's gross profit percentages have changed as its product
offering has evolved from primarily passive components to
complete system solutions, including more active electronic
components.

Additionally, higher margin geolocation sales have decreased
over the past three years as U.S. service providers have
implemented and completed E-911 upgrade installations.  In
fiscal 2006, the company used approximately 70 million pounds of
copper.  The company's average cost per pound of copper
increased by approximately US$0.45 throughout fiscal 2006,
resulting in an increase in cost of products sold of
approximately US$32 million or 1.5% of sales.  In addition, in
fiscal 2005, product recall costs associated with one of the
company's Base Station Subsystem products resulted in a charge
of US$17 million or 0.8% of sales.

                  Liquidity and Capital Resources

In fiscal 2006 the company had cash flow from operations of
US$91.8 million.  Cash and cash equivalents were US$169.6
million at Sept. 30, 2006, a decrease of US$19.2 million from
Sept. 30, 2005. Working capital was US$585 million at Sept. 30,
2006, compared with US$639 million at Sept. 30, 2005.

The company's balance sheet at Sept. 30, 2006, showed total
assets of US$2.4 billion, total liabilities of US$900 million,
and total shareholders' equity of US$1.5 billion.

A full text-copy of the company's annual report on Form 10-K may
be viewed at no charge at http://ResearchArchives.com/t/s?1729

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers innovative and essential equipment and
solutions for the global communications infrastructure market.
The company serves operators and original equipment
manufacturers from facilities in 35 countries including, among
others, manufacturing locations in China and India.  Andrew is
an S&P 500 company founded in 1937.

                        *    *    *

Standard & Poor's Ratings Services revised its CreditWatch
implications on Andrew Corp. to negative from developing.  The
'BB' corporate credit rating and other ratings on the company
were placed on CreditWatch developing on Aug. 7, 2006.


CASCADES INC: Norampac Acquisition Cues DBRS to Lower Ratings
-------------------------------------------------------------
Dominion Bond Rating Service downgraded the Senior Unsecured
Debt rating of Cascades Inc. to BB (high) from BBB (low).  The
trend is now Stable.  The rating action follows a full review of
Cascades' acquisition of the outstanding 50% interest in
Norampac Inc., which was reported on Dec. 5, 2006, and is
expected to close by the end of 2006.  This rating action
removes the company from Under Review with Negative Implications
where it was placed on Dec. 5, 2006.

DBRS determined that the impact of increased acquisition-related
leverage, in addition to the uncertainty regarding a measurable
improvement in currently challenging industry conditions, more
than offset the positive attributes of the transaction.
Cascades' credit metrics were considered aggressive for an
investment-grade rating prior to the acquisition, and have
further weakened with the increase in debt. In addition,
challenging industry conditions, including high input costs,
relatively soft demand, and relative strength in the Canadian
dollar are expected to persist.  As a result, Cascades' credit
profile is no longer considered adequate for an investment-grade
rating.

On a pro forma basis, debt-to-capital increases to 59% and cash
flow-to-debt modestly declines to 0.13, which includes 50% of
Norampac's outstanding debt and US$310 million in debt
financing.  The impact on Cascades' financial profile is
relatively modest, particularly given the company's decision to
increase the equity-funded share of the US$560 million
transaction to US$250 million.  However, an improvement in
Cascades' credit metrics to levels considered more appropriate
for an investment-grade rating is unlikely over the near term.

The acquisition of the remaining 50% equity interest in Norampac
has strengthened Cascades' business profile. Positive attributes
of the transaction include an increased presence in the
packaging sector, which has historically generated relatively
stable earnings at Norampac, and a more balanced mix of revenue.
The company will now have access to Norampac's cash flow, which
will help to reduce the company's debt load.  In addition,
packaging industry capacity curtailments have been implemented
and are expected to support price increases.  Cascades is
expected to generate modest earnings growth over the near to
medium term despite industry challenges, which largely underpins
the Stable trend.

Founded in 1964, Cascades Inc. -- http://www.cascades.com/--
produces, transforms, and markets packaging products, tissue
paper and fine papers, composed mainly of recycled fibers.
Cascades employs nearly 15,600 men and women who work in some
140 modern and flexible production units located in North
America, in Europe and in Asia.  Cascades' management
philosophy, its more than 40 years of experience in recycling,
its continued efforts in research and development are strengths
which enable the company to create new products for its clients
and thus offer superior performance to its shareholders.  The
Cascades shares trade on the Toronto stock exchange under the
ticker symbol CAS.  The company has operations in Hong Kong,
Colombia, and Europe.


COUDERT BROTHERS: Seeks Extension of Excl. Plan-Filing Period
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
convened a hearing on Dec. 20, 2006, to consider Coudert
Brothers LLP's request to extend its exclusive periods to file a
Plan of Reorganization and solicit acceptances of that Plan.

The Debtor wanted the Court to extend until May 20, 2007, its
exclusive plan-filing period; and until July 19, 2007, its
period to solicit plan acceptances.

Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, tells the
Court that the Debtor's prepetition status as a multi-national
law firm creates numerous unique complexities that must be
confronted prior to creation a plan of liquidation.  These
include:

     a) determining the proper procedures for destruction or on-
        going retention of years of client's legal records and
        documents in storage;

     b) developing procedures to notify Coudert's previous
        clients of its pending liquidation and disposition of
        client files;

     c) preparing for and litigating malpractice suits currently
        pending against Coudert in other courts around the
        country;

     d) litigating in foreign jurisdictions to reclaim assets
        that were wrongfully removed or converted from the
        estate; and

     e) liquidating any remaining receivables and assets located
        in both domestic and foreign jurisdictions.

The Debtor argued that the sheer scope of these pending
collection and malpractice actions, as well as the inherent
delay in prosecuting and defending them in various forums,
warrant the extension of the exclusive periods.

                          *     *     *

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

The Debtor's exclusive period to file a chapter 11 plan expires
on Jan. 20, 2007.


COUDERT BROTHERS: Hires Kurtzman Carson as Claims Agent
-------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York authorized Coudert Brothers
LLP to retain Kurtzman Carson Consultants LLC as its claims
agent.

The Debtor tells the Court that Kurtzman Carson's assistance
will expedite the service of notices, streamline the claims
administration process, and permit the Debtor to focus
efficiently on its reorganization efforts.

As claims agent, Kurtzman Carson will:

   a) maintain an official copy of the Debtor's schedules of
      assets and liabilities and statement of financial affairs
      listing the Debtor's known creditors and the amounts owed
      them;

   b) notify all potential creditors of the existence and amount
      of their respective claims as evidenced by the Debtor's
      books and records and as set forth in the Schedules;

   c) furnish a notice of the last date for the filing of proofs
      of claims and a form for the filing of a proof of claim;

   d) file with the Clerk an affidavit or certificate of service
      with a copy of the notice, a list of persons to whom it
was
      mailed, and the date the notice was mailed, within 10 days
      of service;

   e) docket all claims received, maintain the official claims
      register for the Debtor on behalf of the Clerk, and
provide
      the Clerk with certified duplicate unofficial Claims
      Register on a monthly basis;

   f) specify, in the Claims Register, these information for
each
      claim docketed:

         -- the claim number assigned;

         -- the date received;

         -- the name and address of the claimant and agent, if
            applicable, who filed the claim; and

         -- the classification(s) of the claim;

   g) relocate, by messenger, all of the actual proofs of claim
      filed to KCC, not less than weekly;

   h) record all transfers of claims and provide any notices of
      such transfers required by Rule 3001 of the Federal Rules
      of Bankruptcy Procedure;

   i) make changes in the Claims Register pursuant to Court
      Order;

   j) upon completion of the docketing process for all claims
      received to date by the Clerk's office, turn over to the
      Clerk copies of the Claims Register for the Clerk's
review;

   k) maintain the official mailing list for the Debtor of all
      entities that have filed a proof of claim;

   l) assist with, among other things, solicitation and
      calculation of votes and distribution as required in
      furtherance of confirmation of the chapter 11 plan; and

   m) at the close of the case, box and transport all original
      documents in proper format, as provided by the Clerk's
      office, to the Federal and Record Administration.

Applicable fees for Kurtzman Carson's professionals are:

    Designation                                Hourly Rate
    -----------                                -----------
    Clerical                                   US$40  to  US$65
    Project Specialist                         US$75  to US$115
    Consultant                                 US$125 to US$195
    Sr. Consultant / Sr. Managing Consultant   US$205 to US$250
    Technology / Programming Consultant        US$115 to US$195

Kurtzman Carson assures the Court that it does not hold any
interest adverse to the Debtor's estate and is a "disinterested
person" as that term is defined in section 101(14) of the
Bankruptcy Code.

A copy of Kurtzman Carson's engagement agreement is available
for free at:

              http://researcharchives.com/t/s?1745

                          *     *     *

Coudert Brothers LLP was an international law firm specializing
in complex cross border transactions and dispute resolution.
The firm had operations in Australia and China.  The Debtor
filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.
S.D.N.Y. Case No. 06-12226).  John E. Jureller, Jr., Esq., and
Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents
the Debtor in its restructuring efforts.  Brian F. Moore, Esq.,
and David J. Adler, Esq., at McCarter & English, LLP, represent
the Official Committee Of Unsecured Creditors.  In its schedules
of assets and debts, Coudert listed total assets of
US$29,968,033 and total debts of US$18,261,380.

The Debtor's exclusive period to file a chapter 11 plan expires
on Jan. 20, 2007.


COUDERT BROTHERS: Panel Clamors for Ch. 11 Trustee Appointment
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Coudert
Brothers, LLP, asks the U.S. Bankruptcy Court for the Southern
District of New York to appoint a Chapter 11 Trustee in the
Debtor's bankruptcy case.

David J. Adler, Esq., at McCarter & English, LLP, tells the
Court that a Chapter 11 trustee will:

    a) investigate the circumstances that led to the Debtor's
       demise and to determine if the estate has claims against
       others that may be pursued for the benefit of creditors.

    b) complete the liquidation of the estate and perform the
       traditional bankruptcy tasks of receivables collection,
       miscellaneous asset disposition, claims administration
       and distribution; and

    c) pursue and defend litigation on behalf of the estate.

The Committee complains that the Debtor has "recklessly"
engineered a wind down designed to protect its partners at the
expense of its creditors.  Because of this reckless wind down,
the Committee says the Debtor's financial condition continues to
deteriorate.  The Committee argues that only an independent
trustee can fairly and competently liquidate the Debtor's
remaining assets.

                          *     *     *

Coudert Brothers LLP was an international law firm specializing
in complex cross border transactions and dispute resolution.
The firm had operations in Australia and China.  The Debtor
filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.
S.D.N.Y. Case No. 06-12226).  John E. Jureller, Jr., Esq., and
Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents
the Debtor in its restructuring efforts.  Brian F. Moore, Esq.,
and David J. Adler, Esq., at McCarter & English, LLP, represent
the Official Committee Of Unsecured Creditors.  In its schedules
of assets and debts, Coudert listed total assets of
US$29,968,033 and total debts of US$18,261,380.

The Debtor's exclusive period to file a chapter 11 plan expires
on Jan. 20, 2007.


D.R.A. TRADING: Faces Liquidation Proceedings
---------------------------------------------
On Nov. 16, 2006, Rajeshkumar Nareshchandra Kantilal -- trading
as K. L. Gems -- filed a wind up petition against D.R.A. Trading
Ltd.

The High Court of Hong Kong will hear the petition on Jan. 17,
2007, at 9:30 a.m.

The solicitors for the Petitioner can be reached at:

         Johnson Stokes & Master
         18/F, Prince's Building
         10 Chater Road, Central
         Hong Kong


DIA-BRILLIANT JEWELRY: Court Sets Wind-Up Hearing on Jan. 17
------------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Dia-Brilliant Jewelry Company Ltd on Jan. 17, 2007, at 9:30 a.m.

Angel Diamonds Ltd filed the petition with the Court on Nov. 16,
2006.

The solicitors for the Petitioner can be reached at:

         Johnson Stokes & Master
         18/F, Prince's Building
         10 Chater Road, Central
         Hong Kong


EMI GROUP: S&P Removes Ratings from Watch Neg. on Bid Rejection
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB/B' long- and
short-term corporate credit and 'BB' senior unsecured debt
ratings on U.K.-based music major EMI Group PLC.

The long-term and debt ratings were removed from CreditWatch,
where they had been placed with negative implications on
Nov. 28, 2006, when the group reported a takeover approach.  The
outlook is negative.

"EMI's announcement ending buyout talks removes the group's
financial risk profile from the immediate threat posed by a
potentially highly leveraged bid, against debt protection
metrics that are already stretched for the ratings," said
Standard & Poor's credit analyst Patrice Cochelin.

"Nevertheless, we are concerned that EMI's top management -- but
not necessarily its divisional management -- might continue to
focus on takeover activity."

The group recently announced an agreement on a 45% minority
buyout of the Japanese recorded music operations of Toshiba
Corp. (BBB/Negative/A-2).  Although the transaction will
increase EMI's control over an important subsidiary; improve
cash flow circulation within the group; and reduce minority
interest dividend "leakage" at a critical time, as asset
disposals recently generated considerable cash proceeds in
Japan; the GBP93 million cash outflow (about 9% of group net
debt) will further depress EMI's debt measures in the near term.
Proforma for the transaction, EMI's net fully adjusted debt at
Sept. 30, 2006, was about 5.0x EBITDA.

At Sept. 30, 2006, EMI had consolidated gross and net debt of
GBP1.2 billion and GBP1 billion, respectively.  Gross and net
financial derivatives liabilities were GBP106 million and GBP66
million, respectively, at the same date.

"We are concerned about EMI's ability to further improve its
stretched financial profile in challenging market conditions,"
added Mr. Cochelin.  "Recent free cash flow generation has been
limited, and dividends are set to stay relatively high,
constraining the scope for debt reduction from internally
generated funds."

The ratings could be lowered if prospects for a material
improvement recede further.  Conversely, the outlook could
return to stable if the group shows significant free cash flow
improvement and debt reduction.  Standard & Poor's will continue
to closely monitor EMI's acquisition plans.

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20.  The group has operations in China,
Brazil, and Hungary.  The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.


FERRO CORP: Declares US$0.145 Per Share Quarterly Dividend
----------------------------------------------------------
Ferro Corp.'s board of directors has declared a regular
quarterly dividend of 14.5 cents per share of common stock.  The
dividend is payable on March 9, 2007, to shareholders of record
on Feb. 15, 2007.


                          *     *     *

Headquartered in Cleveland, Ohio, Ferro Corporation --
http://www.ferro.com-- is a global producer of an array of
performance materials sold to a range of manufacturers in
approximately 30 markets throughout the world.  Ferro applies
certain core scientific expertise in organic chemistry,
inorganic chemistry, polymer science and material science to
develop coatings for ceramics and metal; materials for passive
electronic components; pigments; enamels, pastes and additives
for the glass market; glazes and decorating colors for the
dinnerware market; specialty plastic compounds and colors;
polymer additives; specialty chemicals for the pharmaceuticals
and electronics markets, and active ingredients and high-purity
carbohydrates for pharmaceutical formulations.  The company's
products are classified as performance materials, rather than
commodities, because they are formulated to perform specific and
important functions both in the manufacturing processes and in
the finished products of its customers

Ferro Corp. has global locations in Argentina, Australia,
Europe, and Asia, including China.

On October 5, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services' 'B+' long-term
corporate credit and 'B' senior unsecured debt ratings on Ferro
Corp. remained on CreditWatch with negative implications, where
they were placed Nov. 18, 2005.

Standard & Poor's said it will resolve the CreditWatch after
Ferro files its 2005 full year and 2006 quarterly financial
statements, which are expected by Sept. 30th and Dec. 31st,
respectively.


GEORGIA-PACIFIC: Fitch Rates New US$1.25-Bil. Senior Notes at B+
--------------------------------------------------------------
Fitch rated Georgia-Pacific's new senior unsecured guaranteed
notes due 2015 and 2017 aggregating US$1.25 billion 'B+'.

Fitch also affirms these GP ratings:

   -- Issuer Default Rating 'B+';
   -- Senior unsecured 'B+/RR4';
   -- Senior secured revolver 'BB/RR2'; and,
   -- First lien term Loan. 'BB/RR2'.

GP's Rating Outlook remains Stable.

The rating on GP's Second Lien Term Loan has been withdrawn in
anticipation of repayment.

GP issued the new notes to repay its US$2.25 billion Second Lien
Term Loan concurrent with a US$1 billion increase in its First
Lien Term Loan B, bringing the latter's balance to approximately
US$6.2 billion.  This frees assets from US$1.25 billion of
liens, which favors unsecured debtors.  However, in Fitch's
opinion this does not substantively change the recovery
prospects of unsecured debtors in an event of bankruptcy, which
is the distinguishing feature between secured and unsecured
ratings.

GP's new note issues will benefit from upstream guarantees by
select subsidiaries, which, together with the issuer, in
aggregate directly hold 75% of GP's consolidated total assets.
This attribute differentiates the new notes from the majority of
GP's other notes and bonds issued before its acquisition by Koch
Industries, Inc.

However, as a going concern the guarantees do not enhance the
prospects of timely repayment and therefore do not justify a
rating different from other senior unsecured indebtedness.

GP's IDR of 'B+' is based on a review of the prospects for GP's
various businesses, which have been performing well.  Heading
into next year, in Fitch's opinion, GP will likely suffer from
the decline in the U.S. housing market which has had a very
negative impact on the prices for lumber, plywood, oriented
strand board and gypsum wallboard.  However, GP's other
businesses, in particular domestic bathroom tissue and towels
and corrugated containers, are currently strong and on a
positive trend which is the basis for the Stable Outlook.

GP was taken private by Koch last year in a transaction valued
at just over US$21 billion, financed with approximately US$11
billion in new debt and US$7 billion in equity.

Headquartered in Atlanta, Georgia, Georgia-Pacific Corporation -
- http://www.gp.com/-- is a privately owned global leader in
tissue and other consumer products, and has significant
operations in building products and paper-based packaging.  The
company has offices in Switzerland, Uruguay, and Hong Kong.


MGM MIRAGE: Moody's Rates New US$750-Million Senior Notes at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the new
US$750 million senior unsecured guaranteed notes due 2017,
raised the SGL rating to SGL-2 from SGL-3 and affirmed MGM
Mirage's other existing ratings.  The new notes will rank pari-
passu with existing senior unsecured debt and proceeds of the
notes will be used to term out existing bank revolver debt.

MGM is expected to be a net borrower over the next few years due
to high capital spending needs for maintenance, CityCenter in
Las Vegas, a permanent gaming facility in Detroit, as well as
investment spending for joint venture projects.

Nevertheless, Moody's expects that MGM will continue to grow its
return on assets and maintain Debt/EBITDA and EBITDA to interest
around 5.5x, and 2.5x, respectively, over the next two years.

On a last twelve months basis debt to EBITDA and EBITDA to
interest stood at about 5.6x and 3.0x, respectively.  Pursuant
to Moody's published Gaming Rating Methodology, the company's
credit metrics and level of geographic diversification are below
average for the current rating.  However, the company's size,
significant and successful development profile and solid EBITDA
margins offset these risks.

The upgrade of the speculative grade liquidity rating to SGL-2
from SGL-3 is based on the additional liquidty cushion that MGM
will have following the US$750 million note issuance and the
subsequent repayment of outstanding revolver loans.  This added
liquidity materially helps improve MGM's ability to meet
upcoming debt amortizations and capital spending plans with
internal cash flow and committed borrowing sources.

The rating outlook is stable reflecting the positive operating
conditions in the company's primary markets, and Moody's
expectation that returns on development spending will be
sufficient to maintain the company's current credit profile.
The ratings could be downgraded if leverage rises above 6x or if
the company pursues significant share repurchases.  Upward
rating momentum is limited given that the company will be a net
borrower over the next several years and is pursuing other
potential development opportunities.

Rating assigned:

   -- US$750 million senior unsecured guaranteed bonds due 2013
      at Ba2, LGD 3, 43%.

Rating changed:

   -- Speculative grade liquidity rating changed to SGL-2 from
      SGL-3.

Las Vegas, Nev.-based, MGM Mirage -- http://www.mgmmirage.com/-
- owns and operates 12 casino resorts located in Nevada,
Mississippi, Michigan, and Australia, and has investments in
three other casino resorts in Nevada, New Jersey, and Macau.


MGM MIRAGE: S&P Puts BB Rating on Proposed US$750 Mil. Sr. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' rating to
MGM Mirage's proposed US$750 million senior unsecured notes due
2017, which will be sold pursuant to a prospectus dated
May 9, 2006.

Proceeds from the proposed offerings will be used to repay
amounts outstanding under the company's revolving credit
facility and for general corporate purposes.

At the same time, Standard & Poor's affirmed its ratings on the
company, including the 'BB' corporate credit rating.

The outlook is stable.

Consolidated debt outstanding at Sept. 30, 2006, was about US$13
billion.

Las Vegas, Nev.-based, MGM Mirage -- http://www.mgmmirage.com/-
- owns and operates 12 casino resorts located in Nevada,
Mississippi, Michigan, and Australia, and has investments in
three other casino resorts in Nevada, New Jersey, and Macau.


PETROLEOS DE VENEZUELA: Oil Purchase Averages 703,000 Barrels
-------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil firm of
Venezuela, said in a filing with the U.S. Securities and
Exchange Commission that it has purchased 703,000 barrels per
day on average in 2004 from other companies to keep its
refineries producing.

A strike that began on December 2002 at Petroleos de Venezuela's
refining plants weakened its operations, reducing the company's
output by as much as 90%.  The national strike unsuccessfully
sought for the resignation of President Hugo Chavez, resulting
in the dismissal of at least 18,000 Petroleos de Venezuela
workers.

Business News Americas relates that Petroleos de Venezuela
supplied its plants in Venezuela and abroad with 2.15 million
barrels of crude daily.  The firm refined about 2.85 million
barrels per day in 2004 at wholly or partially owned refineries.

Petroleos de Venezuela said in the SEC filing that Venezuela
satisfied 75% of the crude demanded at the refineries in 2004.
The company was able to meet 78% of demand in 2003, and 81% in
2002.

According to BNamericas, the global refining capacity of
Petroleos de Venezuela is currently at 3.3 million barrels per
day.

Petroleos de Venezuela told BNamericas that it will no longer
file reports with SEC, saying that it violates Venezuela's
sovereignty.

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

                        *    *    *

Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'B+' long-term foreign currency corporate
credit rating on Petroleos de Venezuela SA to positive from
developing.

The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.


PETROLEOS DE VENEZUELA: Inks Lubricants Supply Pact with Alba
-------------------------------------------------------------
Petroleos de Venezuela, the state-owned oil firm of Venezuela,
told Business News Americas that PDV Caribe, its fuel
distribution subsidiary, has signed a lubricants supply accord
with Alba Petroleos de El Salvador.

BNamericas relates that PDV Caribe and Enepasa, an El
Salvadorian municipalities association, created Alba Petroleos
earlier this year to distribute Venezuelan crude and fuels in El
Salvador.

Petroleos de Venezuela said in a statement that the agreement
covers 27 types of lubricants and falls under the Petrocaribe
energy cooperation model.

The first shipment will arrive in El Salvador in two weeks and
initially will be distributed at service stations and sector
companies in capital San Salvador and the country's west and
east, according to a Petroleos de Venezuela statement.

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

                        *    *    *

Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'B+' long-term foreign currency corporate
credit rating on Petroleos de Venezuela SA to positive from
developing.

The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.


PETROLEOS DE VENEZUELA: May Bring in US$6.9B to Treasury in 2007
----------------------------------------------------------------
Petroleos de Venezuela, the state-run oil firm of Venezuela, is
expected to deposit US$6.9 billion to the Venezuelan treasury
next year, El Universal reports, citing Rodrigo Cabeza, head of
the National Assembly Finance Committee.

El Universal relates that the government, Central Bank and
Petroleos de Venezuela will continue to implement measures in
2007 to curb liquidity.  Once extraordinary revenues start next
year, Petroleos de Venezuela is expected to make new deposits in
a special account of the treasury.

Mr. Cabeza told El Universal, "These funds will not be monetized
(will not be delivered to central bank), but they will be sold
when extraordinary expenses need to be afforded."

According to El Universal, the Venezuelan oil sector has made
transfers to the special account over the last quarter of 2006
to prevent the funds from affecting liquidity.

Authorities decided to boost the legal reserve and implement
liquidity absorption measures by issuing deposit slips, to lead
financial institutions into giving more funds to loans, El
Universal states.

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

                        *    *    *

Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'B+' long-term foreign currency corporate
credit rating on Petroleos de Venezuela SA to positive from
developing.

The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.


POPOLARE DI VERONA: Okays Merger with Banca Popolare Italiana
-------------------------------------------------------------
The Boards of Directors of Banco Popolare di Verona e Novara and
Banca Popolare Italiana have approved the merger between the two
companies, Reuters reports.

As reported in the TCR-Europe on Oct. 17, the Board of Directors
of BPI accepted a EUR8.2-billion takeover offer from larger
rival BPVN.  BPI and BPVN will form a holding company that will
launch a share swap to stakeholders of the groups:

   -- 0.43 share for every BPI share, and
   -- a share for every BPVN share.

Aside from the share swap, BPI would distribute an extraordinary
dividend of EUR2 per share, for a total cash of EUR1.5 billion,
to existing shareholders.  The share-and-cash offer values BPI
at EUR12 per share, based on BPVN's share price of EUR22.81 on
Oct. 13.  BPI shareholders have yet to confirm the agreement
with due diligence.

According to BPI, the merger will generate annual pretax
synergies of EUR500 million starting 2010, but integration costs
will reach an overall EUR300 million before tax.  The merged
group, BPI added, will have a market capitalization of EUR15.5
billion, 2,183 branches and more than 2.4 million clients.

The merged company will be called Banco Popolare and will
concentrate on savings and loans in northern Italy, Reuters
reports.  The merger, the banks added, will raise BPI's
productivity and overall income.

The companies forecasted an 18.9% hike in operating profit in
2006-2010 and a 45% cost-to-income in 2010.  The payout ratio
will be around 50% in 2010.

                  About Banca Popolare Italiana

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.

Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                 About Banco Popolare di Verona

Headquartered in Verona, Italy, Banco Popolare di Verona e
Novara (BPVN) -- http://www.bpv.it/-- offers private banking,
investment banking and asset management services, as well as
other services in the tax and real estate sectors.  The
company's banking network comprises over 1,170 branches, which
are spread throughout the Italian regions of the Veneto, Emilia-
Romagna, Piedmont and Lombardy, and internationally in London,
Luxembourg, Hong Kong,and Shanghai.

                        *     *     *

Moody's Investors Service placed on review for possible
downgrade the A2 long-term and Prime-1 short-term senior debt
and bank deposit ratings of Banco Popolare di Verona e Novara,
as well as its C+ financial strength rating, following the
announcement that BPVN's proposal to merge with Banca Popolare
Italiana has been approved by BPI's board of directors.

At the same time, Moody's placed on review for possible upgrade
BPI's Baa2 long-term and Prime-2 short-term bank deposit and
debt ratings and its D financial strength rating, as well as the
Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term
lending and investment banking subsidiary.

Ratings placed on review for possible downgrade:

Banco Popolare di Verona e Novara:

    * long-term debt and deposits at A2
    * short-term deposit and debt ratings at Prime-1
    * commercial paper rating at Prime-1
    * subordinated debt at A3; junior subordinated debt at A3
    * Tier 3 debt at Baa1

Banco Popolare di Verona e Novara, London:

    * short-term deposit and debt ratings at P-1

Ratings placed on review for possible upgrade:

Banca Popolare Italiana:

    * Long-term debt and deposit ratings at Baa2
    * Short-term debt and deposit ratings at Prime-2
    * Financial Strength Rating at D
    * subordinated debt rating at Baa3
    * junior subordinated debt at Ba1
    * Tier III debt at Ba2

Banca Popolare di Lodi Investor Trust III:

    * non-cumulative guaranteed Trust Preferred Securities
      at Ba2

Efibanca:

    * Long-term deposit rating at Baa3

    * Short-Term deposit rating at Prime-3
    * Financial Strength Rating at D
    * backed long-term debt at Baa2
    * backed subordinated debt at Baa3

Fitch Ratings placed Banco Popolare di Verona's A+ Issuer
Default rating and B Individual rating on Rating Watch Negative.
Its other ratings are affirmed at Short-term F1 and Support 3.

At the same time, the agency placed Banca Popolare Italiana's
BBB IDR, F3 Short-term and C Individual ratings on Rating Watch
Positive.  Its Support rating is affirmed at 3.

The rating action follows the announcement by BPI's board of
directors that it has accepted a merger offer by BPVN.  Fitch
will resolve the Rating Watches on completion of the merger,
expected for March 2007.


POPOLARE DI VERONA: Merger Deal Sees 1,350 Job Cuts at New Group
----------------------------------------------------------------
The approved merger between Banca Popolare Italiana and Banco
Popolare di Verona e Novara will lead to around 1,350 job cuts
at the new group, AFX News reports citing BPVN CEO Fabio
Innocenzi.

Mr. Innocenzi revealed that 840 of the job cuts would be done
through incentive departures while 510 through natural wastage.

The Board of Directors of the companies have approved the
merger, which would commence on July 1, 2007.

As reported in the TCR-Europe on Oct. 17, the Board of Directors
of BPI accepted an EUR8.2-billion takeover offer from larger
rival BPVN.  BPI and BPVN will form a holding company that will
launch a share swap to stakeholders of the groups:

   -- 0.43 share for every BPI share, and
   -- a share for every BPVN share.

Aside from the share swap, BPI would distribute an extraordinary
dividend of EUR2 per share, for a total cash of EUR1.5 billion,
to existing shareholders.  The share-and-cash offer values BPI
at EUR12 per share, based on BPVN's share price of EUR22.81 on
Oct. 13.  BPI shareholders have yet to confirmed with due
diligence the agreement.

According to BPI, the merger will generate annual pretax
synergies of EUR500 million starting 2010, but integration costs
will reach an overall EUR300 million before tax.  The merged
group, BPI added, will have a market capitalization of EUR15.5
billion, 2,183 branches and more than 2.4 million clients.

The companies expected revenue synergies to reach EUR146
million.  The banks forecast synergies of EUR70 million in 2007,
EUR270 million in 2008, EUR413 million in 2009 and EUR500
million in 2010, Reuters relates.

Mr. Innocenzi said that the merged group could generate EUR215
million more in synergies in a "best case scenario" excluded in
the plan.

The companies' shareholders will met on March 10, 2007, to
approve the merger to a new company, which will be called Banco
Popolare.

                  About Banca Popolare Italiana

Headquartered in Lodi, Italy, Banca Popolare Italiana --
http://www.bancapopolareitaliana.it/-- attracts deposits and
offers commercial banking services.  The Bank offers securities
brokerage, asset management, mortgage loans, insurance, lease
financing and treasury services and manages mutual funds.

Through a subsidiary, Banca Popolare Italiana offers merchant
banking services and medium- and long-term lending.

                 About Banco Popolare di Verona

Headquartered in Verona, Italy, Banco Popolare di Verona e
Novara (BPVN) -- http://www.bpv.it/-- offers private banking,
investment banking and asset management services, as well as
other services in the tax and real estate sectors.  The
company's banking network comprises over 1,170 branches, which
are spread throughout the Italian regions of the Veneto, Emilia-
Romagna, Piedmont and Lombardy, and internationally in London,
Luxembourg, Hong Kong and Shanghai.

                        *     *     *

Moody's Investors Service placed on review for possible
downgrade the A2 long-term and Prime-1 short-term senior debt
and bank deposit ratings of Banco Popolare di Verona, as well as
its C+ financial strength rating, following the announcement
that BPVN's proposal to merge with Banca Popolare Italiana has
been approved by BPI's board of directors.

At the same time, Moody's placed on review for possible upgrade
BPI's Baa2 long-term and Prime-2 short-term bank deposit and
debt ratings and its D financial strength rating, as well as the
Baa3/Prime-3/D ratings of Efibanca, BPI's medium- and long-term
lending and investment banking subsidiary.

Ratings placed on review for possible downgrade:

Banco Popolare di Verona e Novara:

    * long-term debt and deposits at A2
    * short-term deposit and debt ratings at Prime-1
    * commercial paper rating at Prime-1
    * subordinated debt at A3; junior subordinated debt at A3
    * Tier 3 debt at Baa1

Banco Popolare di Verona e Novara, London:

    * short-term deposit and debt ratings at P-1

Ratings placed on review for possible upgrade:

Banca Popolare Italiana:

    * Long-term debt and deposit ratings at Baa2
    * Short-term debt and deposit ratings at Prime-2
    * Financial Strength Rating at D
    * subordinated debt rating at Baa3
    * junior subordinated debt at Ba1
    * Tier III debt at Ba2

Banca Popolare di Lodi Investor Trust III:

    * non-cumulative guaranteed Trust Preferred Securities
      at Ba2

Efibanca:

    * Long-term deposit rating at Baa3

    * Short-Term deposit rating at Prime-3
    * Financial Strength Rating at D
    * backed long-term debt at Baa2
    * backed subordinated debt at Baa3

Fitch Ratings placed Banco Popolare di Verona's A+ Issuer
Default rating and B Individual rating on Rating Watch Negative.
Its other ratings are affirmed at Short-term F1 and Support 3.

At the same time, the agency placed Banca Popolare Italiana's
BBB IDR, F3 Short-term and C Individual ratings on Rating Watch
Positive.  Its Support rating is affirmed at 3.

The rating action follows the announcement by BPI's board of
directors that it has accepted a merger offer by BPVN.  Fitch
will resolve the Rating Watches on completion of the merger,
expected for March 2007.


ROYAL CARIBBEAN: Names Steve Shaiken VP of Onboard Revenue
----------------------------------------------------------
Royal Caribbean International has named seasoned retail
executive Steve Shaiken as vice president of Onboard Revenue.
Mr. Shaiken will be responsible for enhancing and promoting
Royal Caribbean's onboard revenue products, including casino
operations, retail boutiques, art auctions, and the ShipShape
Day Spa and salon, in addition to multiple other onboard revenue
streams.

"We are delighted to have someone of Steve's caliber join the
Royal Caribbean executive team," said Michael Bayley, senior
vice president of Hotel Operations.  "His breadth of retail
management experience makes him ideally suited for this vital
role."

Mr. Shaiken joined the team on December 18.

Most recently, Mr. Shaiken served as president of museum retail
operations for Smithsonian Business Ventures for the Smithsonian
Institution.  Before that, Mr. Shaiken spent 17 years in senior
leadership positions in retail and merchandising for Fortune
1000 companies such as GE's Universal Parks & Resorts; Starwood
Hotels and Resorts Worldwide; and Hilton Hotels Corporation.

Based in Miami, Florida, Royal Caribbean Cruises Ltd. --
http://www.royalcaribbean.com/-- operates a cruise line with
more than 170 destinations worldwide including Australia, China,
Vietnam, and an array of shore excursions and cruise tour
options.  The company's ships offer itineraries, activities and
amenities designed to appeal to every taste, energy level and
age group giving guests the opportunity to create their own
adventure.

The Troubled Company Reporter - Asia Pacific reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Gaming, Lodging & Leisure sector, the rating
agency confirmed its Ba1 Corporate Family Rating for Royal
Caribbean Cruises Ltd.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Unsecured Notes
   6.75%-8.75%
   2006-2027              Ba1      Ba1     LGD4       55%

   US$550 Senior
   Unsecured 7% 2013      Ba1      Ba1     LGD4       55%

   US$350 Senior
   Unsecured 7.25% 2016   Ba1      Ba1     LGD4       55%

   Zero Coupon
   Convertible Notes      Ba1      Ba1     LGD4       55%

   Senior Unsecured
   Shelf                  Ba1      Ba1     LGD4       55%

   Preferred Shelf        Ba3      Ba2     LGD6       97%


SAKABUN (H.K.): Appoints Joint Liquidators
------------------------------------------
Chan Cheuk Ying and Lee Cho Yiu Julia were appointed as joint
and several liquidators of Sakabun (Hong Kong) Co., Ltd by a
special resolution passed on Dec. 8, 2006.

The Joint and Several Liquidators can be reached at:

         Chan Cheuk Ying
         Lee Cho Yiu Julia
         Suite 1, 8/F
         New Henry House
         10 Ice House Street, Central
         Hong Kong


SANMINA-SCI: Delays Form 10-K Filing for FY Ended Sept. 30, 2006
----------------------------------------------------------------
Sanmina-SCI Corp. is filing a notification with the U.S.
Securities and Exchange Commission under Rule 12b-25 because it
will be unable to file its annual report on Form 10-K for the
fiscal year ended Sept. 30, 2006, on a timely basis.  The
company is completing its preparation of, and its outside
independent accounting firm is in the process of auditing the
company's Form 10-K.  The company intends to file its Form 10-K
as soon as practicable, and in any event within the 15-day
extension period afforded by SEC Rule 12b-25 under the
Securities Exchange Act of 1934, as amended.

The company's board of directors formed an independent special
committee to review certain matters concerning the company's
stock option administration policies and practices dating back
to Jan. 1, 1997, and the related accounting implications.  Based
on the final report and recommendations of the special
committee, the company issued a press release on Oct. 12, 2006,
stating that a restatement of the company's historical financial
results would be necessary in order to record additional stock-
based compensation expenses.

The company filed on Dec. 13, 2006, its Form 10-Q for the period
ended July 1, 2006.  The financial statements, and related
footnotes and disclosures have been adjusted to reflect the
results of the investigation.

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

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

On October 23, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's assigned a Ba2 rating to Sanmina-
SCI Corporation's proposed US$600 million unsecured term loan
facility due 2008.

The proceeds of the proposed US$600 million term loan will be
used to finance US$525 million of Sanmina's 3% convertible
subordinated notes due 2007.  Sanmina's corporate family rating
of Ba2 and all of its other outstanding ratings will remain
under review for possible downgrade.  Likewise, the new Ba2
rating on the proposed term loan facility will also be placed
under review for possible downgrade.

On October 19, 2006, the TCR-AP reported that Fitch Ratings
downgraded Sanmina-SCI Corporation:

   -- Senior subordinated debt to 'B/RR5' from 'B+/RR4'

Fitch also assigned this rating:

   -- US$600 million term loan expiring January 2008 'BB+/RR1'

The ratings on senior secured, senior subordinated and these
ratings remained on Rating Watch Negative:

   -- Issuer Default Rating 'B+'

   -- First lien senior secured credit facility 'BB+/RR1'


SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services left its 'BB-' corporate
credit and other ratings on San Jose, Calif.-based Sanmina-SCI
Corp. on CreditWatch with negative implications, where they were
placed on Aug. 14, 2006.

While Sanmina filed its 10-quarter for the period ending July 1,
2006, by the Dec. 14, 2006, deadline, the company has filed for
a 15-day extension to file its 2006 10-K, now due Dec. 29, 2006.

"Should the company be unable to file within that deadline, we
will review the reaction of the bondholders and creditors under
the October 2006 term loan to determine any rating impact," said
Standard & Poor's credit analyst Lucy Patricola.

The company's securitization programs and lenders under the
company's revolving credit have granted waivers to file through
Jan. 10, 2007, and possibly longer depending on any extension
granted by the bondholders.  The rating could be lowered to the
'CCC' category if extensions to file financial statements are
not granted by the company's remaining bondholders or lenders,
reflecting heightened concerns of debt acceleration.

In the process of reviewing stock option grants, the company
uncovered several other accounting irregularities.  Upon receipt
and review of the company's 10-K, Standard & Poor's will
evaluate the impact of additional restatements, the company's
compliance with Sarbannes-Oxley requirements relating to
internal controls, and additional involvement of the SEC or
other judicial authorities, and operational performance over the
last two quarters to determine the final impact on the rating.

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

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


SHAW: China Picks Westinghouse Consortium to Build Nuclear Plant
----------------------------------------------------------------
The Shaw Group Inc. disclosed that the People's Republic of
China's State Nuclear Power Technology Company or SNPTC has
selected the Westinghouse/Shaw Consortium and Westinghouse's
AP1000 passive Generation III technology as the basis for four
new nuclear power plants to be constructed in China.  The AP1000
Consortium will begin working closely with SNPTC to negotiate
final contract details with implementation of the new build
program expected to begin in early 2007.

J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw, said, "We are exceptionally pleased to be a
part of the AP1000 Consortium and with our role in supporting
China's growing energy needs with the safe, modular and
economical AP1000 technology.  These first four "next
generation" units will provide a sustainable source of
critically needed power generation for the citizens and the
government of the People's Republic of China and we are
delighted to be partnered with Westinghouse Electric Company in
these significant projects.  This project also represents the
beginning of a major construction program for China to add at
least 20,000 megawatts of nuclear power over the next 15 years.
We look forward to a long and mutually beneficial relationship
with our Chinese clients for these and future nuclear units."

Richard F. Gill, Chairman of the Executive Committee and Interim
President of Shaw's Power Division, added, "It has been a
tremendous honor to work with President Chen Zhaobo and SNPTC on
this most important initiative. We thank them for the extremely
professional and courteous manner in which the negotiations for
this selection have been handled.  We believe this venture will
become a benchmark for future projects and an example of how our
countries can successfully work together on very complex
industrial projects.  Shaw is committed to upholding this spirit
of collaboration and innovation as we work together with the
People's Republic of China to finalize contract terms on these
first four nuclear projects."

As part of the AP1000 Consortium, Shaw will provide engineering,
procurement, commissioning, and management services for the four
Chinese nuclear generation units.  The projects are expected to
spur significant economic opportunity in China, as well as in
the United States with skilled engineering jobs being created in
Shaw offices in Massachusetts, New Jersey, North Carolina and
Louisiana as a result.

Shaw is a pioneer in the nuclear services industry and has a
long-standing relationship with its partner, Westinghouse.  Shaw
and Westinghouse collaborated to build the first commercial
nuclear generating plant in the United States at Shippingport,
Pennsylvania in the 1950s. Shaw has performed as architect-
engineer on 17 domestic nuclear units and is presently
completing the construction restart of Tennessee Valley
Authority's Browns Ferry Unit #1 in Alabama, the largest nuclear
construction project currently underway in the western
hemisphere.  Shaw is a leader in providing nuclear modifications
and maintenance services, with 40% of the nation's market share.
The company is certified by ASME to both engineer and fabricate
piping systems for nuclear power facilities.  Shaw is also a 20%
owner of Westinghouse.

The selection of Westinghouse and Shaw to supply new nuclear
plants in China is the most recent in a series of positive
announcements regarding the AP1000 passive Generation III
technology and new nuclear construction.  The AP1000 technology
obtained Design Certification from the United States Nuclear
Regulatory Commission and is the current technology selection
for at least 12 proposed new units in the United States.
Westinghouse and Shaw are working closely to support this
proposed growth in the domestic nuclear power sector.

Westinghouse Electric Company is the world's pioneering nuclear
power company and is a leading supplier of nuclear plant
products and technologies to utilities throughout the world.
Currently, Westinghouse technology forms the basis for
approximately one-half of the world's operating nuclear plants.

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

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

On December 4, 2006, the Troubled Company Reporter - Asia
Pacific reported that Standard & Poor's Ratings Services
affirmed its 'BB' corporate credit rating on The Shaw Group Inc.
and removed it from CreditWatch, where it was placed with
negative implications in Oct. 2006.  The outlook is stable.

In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.


WELL BOND: Court Appoints Joint Liquidators
-------------------------------------------
The High Court of Hong Kong appointed Bruno Arboit and Simon
Richard Blade of Baker Tilly Hong Kong Business Recovery Ltd as
joint and several liquidators of Well Bond Group Ltd on Dec. 1,
2006.

The Joint and Several Liquidators can be reached at:

         Bruno Arboit
         Simon Richard Blade
         12/F, China Merchants Tower
         Shun Tak Centre
         168-200 Connaught Road, Central
         Hong Kong


YING KONG: Joint Liquidators Cease to Act
-----------------------------------------
Wong Man Chung Francis and Leung Lok Ming ceased to act as joint
and several liquidators of Ying Kong Industrial Group (Hong
Kong) Ltd on Dec. 6, 2006.

As reported by the TCR-AP, the members and creditors of the
company met on Dec. 6, 2006, and receive the liquidators'
account of the company's wind-up proceedings.

The former Liquidators can be reached at:

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


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

AMERICAN AXLE: Moody's Holds Corporate Family Rating at Ba3
-----------------------------------------------------------
Moody's Investors Service confirmed American Axle &
Manufacturing Holdings Inc.'s Corporate Family Rating of Ba3 and
affirmed American Axle & Manufacturing, Inc.'s Speculative Grade
Liquidity rating of SGL-2.

Unsecured debt ratings of Ba3 LGD-4, 57% at both American Axle
and Holdings have also been confirmed.

The outlook is negative.

The actions conclude a ratings review reported on Oct. 5, 2006,
after the company's disclosure of a special attrition program
and other restructuring actions which will be implemented at the
end of the fourth quarter of 2006 and early 2007.

Collectively, the programs are anticipated to involve special
charges of between US$150-$250.  In confirming the ratings,
Moody's noted that these programs will involve substantial cash
disbursements and cause higher debt levels to persist in the
short-term.

However, it will have a relatively quick pay-back period through
establishing a lower cost structure which is anticipated to
improve future performance and cash flows.  Metrics more
consistent with the Ba3 rating category could develop during
2007 assuming industry conditions stabilize and sufficient
consumer demand for vehicles based on the GMT-900 platform
develops.

The Corporate Family rating of Ba3 reflects weighting placed on
scores under the Auto Supplier Methodology for elevated
leverage, customer concentration and deterioration in coverage
ratios which has occurred over the last year.  Scores on those
factors are partially mitigated by stronger results from the
company's sound capitalization, good liquidity profile,
efficient operations, and the long-term nature of its business
awards.

Moody's would expect free cash flow in 2006 to be close to
break-even as the company's investment in organic growth has
coincided with sharply lower production at its major customers.
The rating also emphasizes potential volatility to the company's
cash flows arising from its ongoing customer, geographic and
platform concentration.  American Axle has a capital intensive
business model which creates significant operating leverage as
well as ongoing capital expenditure requirements.  Those traits
tend to compound its exposure to challenges faced by its largest
customer, GM.

Improved customer, geographic and platform diversification will
slowly evolve.  Substantial disbursements to facilitate those
objectives, the SAP and other restructuring actions will be
required.  Weak debt service ratios, elevated leverage and
constricted free cash flows are anticipated to continue over the
near term.  However, over the intermediate period, improvements
in the company's cost structure and enhanced free cash flow
generated from the SAP and other restructuring actions combined
with lower capital expenditures in 2007 ought to position key
credit metrics within a more acceptable range for Ba3 rated
credits.

The outlook is negative and reflects the company's continued
concentration with GM, whose Corporate Family rating is B3, and
issues related to the mix of vehicles it supports.

While uncertainty exists on what build rates consumer demand may
ultimately support for models based on the GMT-900 platform, the
rating agency would expect American Axle to remain profitable
during the intermediate term.  In the near term, the company's
leverage and debt service coverage ratios will remain weak as
interest expense will increase as higher debt levels incurred
from funding the combination of 2006 capital expenditures and
significant SAP disbursements and other restructuring actions
will continue.  The company remains vulnerable to downside
developments at GM and the potential that labor contract issues
in late 2007 at the Big 3 OEMs could disrupt build-rate
assumptions.

The SGL-2 rating represents good liquidity over the coming
twelve months.  American Axle should generate internal funds to
meet basic operating needs during the coming year.  However, the
cash impact of its SAP and other restructuring programs are
likely to cause incremental borrowings towards the end of the
fourth quarter and early 2007.  While the company maintained
only minimal balance sheet cash, it does have access to a US$600
million unsecured revolving credit facility whose commitment
extends to April 2010.  At the end of the third quarter, the
company had approximately US$486 million available under the
facility.

Ratings confirmed:

   * American Axle & Manufacturing, Inc.

      -- Senior Unsecured notes, Ba3, LGD-4, 57%
      -- Senior Unsecured term loan, Ba3, LGD-4, 57%
      -- American Axle & Manufacturing Holdings, Inc.
      -- Corporate Family Rating, Ba3
      -- Probability of Default Rating, Ba3
      -- Senior Unsecured convertible notes, Ba3, LGD-4, 57%

Ratings affirmed:

   * American Axle & Manufacturing, Inc.

      -- Speculative Grade Liquidity rating, SGL-2

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


BALLY TECH: To File Form 10-Q Quarterly Reports by Dec. 22
-----------------------------------------------------------
Bally Technologies, Inc., anticipates filing with the United
States Securities and Exchange Commission its Form 10-Qs for the
fiscal quarters ended Sept. 30, 2005, and Dec. 31, 2005, by
Dec. 22, 2006.

While the company also continues to work diligently to complete
its Form 10-Q for the quarter ended March 31, 2006, and its Form
10-K for the fiscal year ended June 30, 2006, the company has
requested an amendment to its bank loan agreement to extend the
Dec. 31, 2006, deadline for delivery of these two remaining 2006
filings to March 15, 2007.  While the company believes it
can achieve this filing schedule, there can be no assurance that
the schedule will be met, or that the amendment to the bank loan
agreement will be successfully obtained.  The company will
provide an update on the filing status of its 2007 Quarterly
Reports on Form 10-Q after the filing of its 2006 10-K.

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

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 16, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


BALLY TECH: Appoints Robert L. Guido to Board of Directors
----------------------------------------------------------
Bally Technologies, Inc., appointed Robert L. Guido to its Board
of Directors.  Mr. Guido, who has been affirmatively determined
by the company's board to be an independent director, will also
serve on the company's Audit Committee.

Mr. Guido recently retired from Ernst & Young where he was Vice
Chair and CEO of E&Y's Assurance and Advisory Practice.  In this
role, he was responsible for overall business strategy and had
significant dealings with both the U.S. Securities and Exchange
Commission and the Public company Accounting Oversight Board
(PCAOB) on behalf of the firm.  During his 38-year career at
Ernst & Young, Guido also co-chaired the firm's Global Client
Steering Committee and served as a senior advisory or engagement
partner to numerous global companies.

"Bob will make an immediate contribution to our company," said
David Robbins, Chairman of the Board. "His years as a senior
executive and partner with Ernst & Young establishing policy and
serving large public companies will be invaluable to us.  He has
significant expertise in various SEC and PCAOB matters, and his
appointment is an important next step as we strive to enhance
the company's internal control structure and financial
reporting."

Richard Haddrill, Chief Executive Officer, added, "In addition
to Bob's financial expertise, he has significant experience
leading various units of Ernst & Young and advising a broad
array of companies and businesses.  I look forward to his
contributions to our overall business direction and
execution."

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

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 16, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


IFCI LTD: ABN Amro London Increases Stake to 5.09%
--------------------------------------------------
In a filing with the Bombay Stock Exchange, IFCI Ltd. discloses
that ABN Amro Bank NV London Branch acquired 1,701,000 shares of
the company.

From its 4.82% holding in IFCI, ABN Amro's acquisition through
secondary market purchase on Dec. 5, 2006, increased its stake
to 5.09%.

The Telegraph, citing unnamed sources, said that the investment
was purely financial in nature.

                       About IFCI Limited

IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector.  The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services.  Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.  Non-
project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project.  Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.

                          *     *     *

Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support
rating at '4'.  The outlook on the rating is stable.

Additionally, on February 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore.  Instruments carrying this rating
are judged to be of the lowest category.  They are either in
default or likely to be in default soon.


IMAX CORPORATION: Moody's Affirms B3 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service affirmed the B3 corporate family
rating for IMAX Corp., as well as the Caa1 rating on its senior
notes.  The outlook remains stable.

The B3 corporate family rating incorporates the lack of
visibility regarding its long term cash flow prospects and high
financial risk, offset by adequate liquidity from balance sheet
cash and its revolving credit facility, a highly enforceable
backlog of signed contracts, and the value of the IMAX brand.

Moody's affirmed these ratings:

   -- B3 Corporate Family Rating;
   -- B3 Probability of Default Rating; and
   -- Caa1 Senior Notes rating, LGD 4, 58%.

All ratings have a Stable Outlook.

The stable outlook assumes that IMAX will maintain liquidity of
at least US$30 million through the combination of balance sheet
cash and availability under its (unrated) US$40 million
revolving credit facility.  The stable outlook also anticipates
a reversal of the deteriorating free cash flow trend and an
improvement in revenue and cash flow from the depressed levels
of the September 2006 quarter.

IMAX Corporation - http://www.imax.com-- is an entertainment
technology company specializing in large-format and three-
dimensional (3D) film presentations. The company's principal
business is the design, manufacture, sale and lease of
projection systems based on technology for large-format, 15-
perforation film frame, 70-mm format (15/70-format) theaters,
including commercial theaters, museums and science centers, and
destination entertainment sites.  IMAX has locations in India
and Italy, among others.


IMAX CORP: Focusing on Worldwide IMAX Network Growth
----------------------------------------------------
IMAX Corp. reported that after an extensive period of review of
potential strategic alternatives to enhance shareholder value,
it has determined that a sale or merger of the company at this
time will not achieve this objective.  Accordingly, the Board of
Directors and management believe that focusing on the growth of
the worldwide IMAX network and strategic business initiatives
are the best means at present to grow IMAX's value to
shareholders.

"While IMAX received interest from multiple parties in our
process of exploring a potential sale or merger of the company,
none ultimately indicated a willingness to acquire the company
at an acceptable valuation," said IMAX Co-Chairmen and Co-Chief
Executive Officers Richard L. Gelfond and Bradley J. Wechsler.
"As we reported at the end of this year's third quarter, we are
confident about our ability to profitably grow the global IMAX
network, and to succeed with our new business initiatives
designed to expand the IMAX footprint, such as our pursuit of
joint venture opportunities around the world and our development
of an IMAX digital projector, targeted for introduction in
2008."

IMAX Corporation - http://www.imax.com-- is an entertainment
technology company specializing in large-format and three-
dimensional (3D) film presentations. The company's principal
business is the design, manufacture, sale and lease of
projection systems based on technology for large-format, 15-
perforation film frame, 70-mm format (15/70-format) theaters,
including commercial theaters, museums and science centers, and
destination entertainment sites.  IMAX has locations in India
and Italy, among others.


INDIAN OIL: Raises US$200 Mil. to Refinance Term Loan Facility
--------------------------------------------------------------
Indian Oil Corporation Limited raised a loan of US$200 million
(Yen equivalent) for refinancing the existing syndicated term
loan facility that was availed of in year 2004-05 to finance
capital expenditure.  The residual period of the facility is
about three years.  The loan agreement was signed [on Dec. 18,
2006] at Hong Kong by Mr. S V Narasimhan, Director (Finance),
Indian Oil.

Indian Oil is availing of the syndicated term loan facility in
Japanese Yen for the first time.  The facility has been arranged
at a highly competitive rate by a syndicate of banks comprising
the Bank of Tokyo-Mitsubishi UFJ Ltd., BNP Paribas, Calyon,
Citigroup Global Markets Singapore Pte. Ltd., the Hong Kong and
Shanghai Banking Corporation Ltd., ING Bank N V, Mizuho
Corporate Bank Ltd., Standard Chartered Bank, and Mega
International Commercial Bank Co.

The deal for the syndication was launched on 10th November 2006
and the road shows were held on 23rd and 24th November 2006 at
Taipei and Singapore.  The deal closed successfully on 8th
December 2006, with participation of 12 banks.  Indian Oil plans
to utilize the proceeds of the syndication to prepay the leaders
of the existing syndicated term loan facility.  This refinancing
in Yen equivalent is expected to yield substantial savings.

Headquartered in New Delhi, Indian Oil Corporation Limited --
http://www.iocl.com/-- is engaged in the sale of petroleum
products.  Other businesses comprise the sale of imported crude
oil, sale of gas, petrochemicals and oil and gas exploration
activities jointly undertaken in the form of unincorporated
joint ventures.  The company's premium fuels include XTRAPREMIUM
petrol and XTRAMILE diesel.  AutoGas is Indian Oil's auto liquid
petroleum gas brand and sells SERVO lubricants in 10 countries.
The aviation fuel supply business caters to the aviation fuel
requirements of the defense services, national carriers,
scheduled private airlines and international airlines.  The
Digboi Refinery of the Assam Oil Division processes crude oil
and its marketing network comprises 366 retail outlets, 399
kerosene/light diesel oil dealerships, and 271 Indane
distributors.  It owns and operates 18 refineries with a
combined refining capacity of 54.20 million tones per annum (1.1
million barrels per day).

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
April 21, 2006, that Standard & Poor's Ratings Services revised
the outlook on Indian Oil to positive from stable.  At the same
time, S&P affirmed the 'BB+' issuer credit rating on the
Company.  The outlook revision follows the revision in the
outlook on the sovereign credit ratings on India
(BB+/Positive/B) on April 19, 2006.

Additionally, Moody's Investors Service gave Indian Oil a Ba1
long-term corporate family rating and a Ba2 issuer rating on
March 3, 2005.


INDIAN OIL: Board to Consider Declaring Interim Dividend
--------------------------------------------------------
Indian Oil Corporation Ltd informs the Bombay Stock Exchange
that the company's board of directors will consider declaration
of interim dividend at a meeting on Dec. 22, 2006.

In that regard, Indian Oil fixed Dec. 27, as the Record Date.
The Interim Dividend, if declared by the board, would be
dispatched to the eligible shareholders by Jan. 8, 2007.

Headquartered in New Delhi, Indian Oil Corporation Limited --
http://www.iocl.com/-- is engaged in the sale of petroleum
products.  Other businesses comprise the sale of imported crude
oil, sale of gas, petrochemicals and oil and gas exploration
activities jointly undertaken in the form of unincorporated
joint ventures.  The company's premium fuels include XTRAPREMIUM
petrol and XTRAMILE diesel.  AutoGas is Indian Oil's auto liquid
petroleum gas brand and sells SERVO lubricants in 10 countries.
The aviation fuel supply business caters to the aviation fuel
requirements of the defense services, national carriers,
scheduled private airlines and international airlines.  The
Digboi Refinery of the Assam Oil Division processes crude oil
and its marketing network comprises 366 retail outlets, 399
kerosene/light diesel oil dealerships, and 271 Indane
distributors.  It owns and operates 18 refineries with a
combined refining capacity of 54.20 million tones per annum (1.1
million barrels per day).

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
April 21, 2006, that Standard & Poor's Ratings Services revised
the outlook on Indian Oil to positive from stable.  At the same
time, S&P affirmed the 'BB+' issuer credit rating on the
Company.  The outlook revision follows the revision in the
outlook on the sovereign credit ratings on India
(BB+/Positive/B) on April 19, 2006.

Additionally, Moody's Investors Service gave Indian Oil a Ba1
long-term corporate family rating and a Ba2 issuer rating on
March 3, 2005.


INDIAN OVERSEAS: Signs MOU on Infrastructure Funding with IIFC
--------------------------------------------------------------
Indian Overseas Bank signed a memorandum of understanding with
India Infrastructure Finance Company to jointly fund
infrastructure projects.

Under the deal, IOC would identify business opportunities and do
project appraisal, while IIFC would bring in the expertise and
funding, IOB Chairman T. S. Narayanasami says.  The bank would
also provide cash management and treasury services to IIFC.

The MOU, signed on Dec. 7, is valid for one year and would be
renewed next year, myiris.com relates.

                  About Indian Overseas Bank

Headquartered in Chennai India, Indian Overseas Bank --
http://www.iob.com/-- provides consumer and commercial banking
services.  The Company provides various banking services,
including saving bank, current accounts, credit facilities and
other services.  IOB also provides non-residential Indian
services, personal banking, foreign exchange reserves
collections services, agri business consultancy, credit cards
and e-banking services.  It also provides automated teller
machine services.  As of March 31, 2006, IOB had five full-
fledged branches overseas: two in Hong Kong, and one each in
Singapore, Seoul and Sri Lanka.  The Bank also had an extension
counter in Sri Lanka and a remittance center in Singapore.

Standard & Poor's Ratings Service gave Indian Overseas BB+
ratings to both long-term local and long-term foreign issuer
credit, and B ratings for both its short-term foreign and short-
term local issuer credit effective on January 16, 2006.


INDUSTRIAL DEVELOPMENT: To Receive US$336 Mil. in NPA Recovery
--------------------------------------------------------------
Industrial Development Bank of India Ltd. should receive
INR1,500 crore (US$336 million) from the recovery of bad loans
in the fiscal year to March 2007, The Financial Express relates
citing a Reuters report.

The money will come from the Stressed Assets Stabilisation Fund,
SASF executive trustee Siby Antony explains.

SASF, formed in 2004/05, is an independent special purpose
vehicle managed by IDBI to resolve problem loans.

According to Mr. Antony, of the expected total, SASF had
transferred INR6.37 billion of recovered loans to IDBI in
November.

The expected recoveries for 2006/07, Mr. Antony says, were about
one-sixth of the INR90 billion of bad loans SASF took over ahead
of the April 2005 merger of IDBI's development finance and
banking operations.

"Our book value has come down to INR82.29 billion and we may
transfer another INR8 billion by March if my anticipated
recoveries come," the newspaper quotes Mr. Antony as saying.

Industrial Development Bank of India is a scheduled bank
incorporated and registered under the Companies Act, 1956,
having its registered office at Mumbai, India.  IDBI enjoys the
status of a public financial institution.  IDBI is also
categorised under a new sub-group 'Other Public Sector Banks'.
The government of India holds 52.68% of the issued capital of
IDBI.  IDBI was originally established in 1964 as a wholly owned
subsidiary of RBI to provide credit and other facilities for the
development of industry.  In 1976, the ownership of IDBI was
transferred from RBI to the Central Government and IDBI was
entrusted with the additional responsibility of acting as the
principal development financial institution responsible for
coordinating the activities of institutions engaged in the
financing, promotion or development of industry.  IDBI has a
long-standing business relationship with more than 3,000
corporate clients and over five million retail investors.
Currently, IDBI has a network of 181 branches, four extension
counters and 396 ATMs in 103 centres.  IDBI provides a wide
range of products and services in the financial sector to both
retail and corporate clientele.  The range of diversified
services includes project financing, term lending, working
capital facilities, lease finance, venture capital, loan
syndication, corporate advisory services and legal and technical
advisory services to its corporate clients as well as mortgages
and personal loans to its retail clients.  As part of IDBI's
development activities, the bank has been instrumental in
sponsoring and supporting the development of key institutions
involved in India's financial sector.  In this mode, IDBI has
played a key role in the formation of the Securities and
Exchange Board of India.  IDBI has also sponsored the National
Stock Exchange of India Limited, which first introduced
electronic trading in securities in India.  IDBI maintains an
arm's-length business relationship with its subsidiaries and
affiliates.  More detailed information on IDBI is available on
http://www.idbi.com/

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service assigned a D-
financial strength rating and Ba2/Not-Prime long- and short-term
foreign currency deposit ratings to Industrial Development Bank
of India Limited.  All ratings have stable outlooks.  The bank's
existing Baa2 foreign currency senior unsecured debt rating was
unaffected by this action.

Additionally, Standard & Poor's Ratings Services gave IDBI's
long-term foreign issuer credit a BB+ rating on April 19, 2006.


INDUSTRIAL DEVELOPMENT BANK: Inks MOU with U.S.-Based IFC
---------------------------------------------------------
Industrial Development Bank of India Ltd. entered into a non-
exclusive Memorandum of Understanding with Washington-
headquartered International Finance Corporation to jointly
assist domestic companies undertaking Clean Development
Mechanism projects which reduce carbon emissions in the
environment.

The two financial intermediaries will also help companies
realize the value of the carbon credits, arising from the
implementation of CDM, by selling the credits in the global
markets.

The MoU was signed by Mr. Pradip Roy, Executive Director, IDBI,
and Ms. Anita Marangoly George, Chief Investment Officer, IFC,
at IDBI's Corporate Office in the presence of Mr. Jitender
Balakrishnan, Deputy Managing Director, IDBI and Mr. Iyad Malas,
Director (South Asia), IFC.

Domestic companies planning to undertake CDM projects under the
Kyoto protocol can now avail of one-stop solutions -- project
identification, funding implementation of CDM projects,
registration and verification, advisory services for trading
certified emission reduction units  -- from the IDBI-IFC
combine.

In October 2006, IDBI had entered into a similar non-exclusive
MoU with MITCON, the Technical Consultancy Organisation based in
Pune.

Speaking on the occasion, Mr. V.P. Shetty, Chairman& Managing
Director, IDBI said, "IDBI today offers its customers the entire
array of banking services, encompassing corporate, commercial,
investment and environmental banking.  The IDBI-IFC combine will
not only assist Indian companies, both large and small, which
want to undertake CDM projects but also help boost their
bottomline by selling the resultant CERs forward in the global
markets.  While the sale of CERs will give companies additional
revenue, IDBI stands to gain in the form of additional fee
income.  Furthermore, IDBI, as the trusted partner in the
nation's progress, is, through this initiative, contributing
towards furthering "green technology" in the country".

Mr. Iyad Malas, IFC's Director for South Asia, added, "The
proposed partnership between IFC and IDBI for carbon finance is
an important step towards promoting projects that reduce carbon
emissions and enable clients to earn carbon credits.  IFC has
developed innovative products and value-added services that
enable emerging market private sector clients to access global
buyers of carbon credits.  IFC's global expertise in carbon
finance and IDBI's deep local knowledge will be key to assisting
Indian sponsors participate in this new market.  In keeping with
its mandate, IFC invests in cleaner technologies and sectors
with substantial environmental and social benefits, including
participation in the Clean Development Mechanism as defined in
Article 12 of the Kyoto Protocol of the UNFCCC."

IDBI is currently working on some CDM projects in the textiles,
steel, power, paper and sugar sectors.  It expects to assist
many more companies to implement CDM projects by the end of this
financial year.

Further, IDBI is seeking to assist SMEs in implementing CDM
projects in a big way.  The bank plans to pool CERs generated by
SMEs and sell them globally in market lots of 50,000 to 100,000
CER units.  The move to aggregate CERs is significant as a
typical SME in India can generate far lesser CERs annually than
the international market lot.

Industrial Development Bank of India is a scheduled bank
incorporated and registered under the Companies Act, 1956,
having its registered office at Mumbai, India.  IDBI enjoys the
status of a public financial institution.  IDBI is also
categorised under a new sub-group 'Other Public Sector Banks'.
The government of India holds 52.68% of the issued capital of
IDBI.  IDBI was originally established in 1964 as a wholly owned
subsidiary of RBI to provide credit and other facilities for the
development of industry.  In 1976, the ownership of IDBI was
transferred from RBI to the Central Government and IDBI was
entrusted with the additional responsibility of acting as the
principal development financial institution responsible for
coordinating the activities of institutions engaged in the
financing, promotion or development of industry.  IDBI has a
long-standing business relationship with more than 3,000
corporate clients and over five million retail investors.
Currently, IDBI has a network of 181 branches, four extension
counters and 396 ATMs in 103 centres.  IDBI provides a wide
range of products and services in the financial sector to both
retail and corporate clientele.  The range of diversified
services includes project financing, term lending, working
capital facilities, lease finance, venture capital, loan
syndication, corporate advisory services and legal and technical
advisory services to its corporate clients as well as mortgages
and personal loans to its retail clients.  As part of IDBI's
development activities, the bank has been instrumental in
sponsoring and supporting the development of key institutions
involved in India's financial sector.  In this mode, IDBI has
played a key role in the formation of the Securities and
Exchange Board of India.  IDBI has also sponsored the National
Stock Exchange of India Limited, which first introduced
electronic trading in securities in India.  IDBI maintains an
arm's-length business relationship with its subsidiaries and
affiliates.  More detailed information on IDBI is available on
http://www.idbi.com/

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service assigned a D-
financial strength rating and Ba2/Not-Prime long- and short-term
foreign currency deposit ratings to Industrial Development Bank
of India Limited.  All ratings have stable outlooks.  The bank's
existing Baa2 foreign currency senior unsecured debt rating was
unaffected by this action.

Additionally, Standard & Poor's Ratings Services gave IDBI's
long-term foreign issuer credit a BB+ rating on April 19, 2006.


INDUSTRIAL DEVELOPMENT: Primary Dealership Unit Now Incorporated
----------------------------------------------------------------
Industrial Development Bank of India Ltd informs the Bombay
Stock Exchange that it has obtained a certificate of
incorporation from the Registrar of Companies, Mumbai,
Maharashtra, regarding the incorporation of IDBI Gilts Ltd., a
wholly owned subsidiary.

The subsidiary is into primary dealership business.

Industrial Development Bank of India is a scheduled bank
incorporated and registered under the Companies Act, 1956,
having its registered office at Mumbai, India.  IDBI enjoys the
status of a public financial institution.  IDBI is also
categorised under a new sub-group 'Other Public Sector Banks'.
The government of India holds 52.68% of the issued capital of
IDBI.  IDBI was originally established in 1964 as a wholly owned
subsidiary of RBI to provide credit and other facilities for the
development of industry.  In 1976, the ownership of IDBI was
transferred from RBI to the Central Government and IDBI was
entrusted with the additional responsibility of acting as the
principal development financial institution responsible for
coordinating the activities of institutions engaged in the
financing, promotion or development of industry.  IDBI has a
long-standing business relationship with more than 3,000
corporate clients and over five million retail investors.
Currently, IDBI has a network of 181 branches, four extension
counters and 396 ATMs in 103 centres.  IDBI provides a wide
range of products and services in the financial sector to both
retail and corporate clientele.  The range of diversified
services includes project financing, term lending, working
capital facilities, lease finance, venture capital, loan
syndication, corporate advisory services and legal and technical
advisory services to its corporate clients as well as mortgages
and personal loans to its retail clients.  As part of IDBI's
development activities, the bank has been instrumental in
sponsoring and supporting the development of key institutions
involved in India's financial sector.  In this mode, IDBI has
played a key role in the formation of the Securities and
Exchange Board of India.  IDBI has also sponsored the National
Stock Exchange of India Limited, which first introduced
electronic trading in securities in India.  IDBI maintains an
arm's-length business relationship with its subsidiaries and
affiliates.  More detailed information on IDBI is available on
http://www.idbi.com/

                          *     *      *

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service assigned a D-
financial strength rating and Ba2/Not-Prime long- and short-term
foreign currency deposit ratings to Industrial Development Bank
of India Limited.  All ratings have stable outlooks.  The bank's
existing Baa2 foreign currency senior unsecured debt rating was
unaffected by this action.

Additionally, Standard & Poor's Ratings Services gave IDBI's
long-term foreign issuer credit a BB+ rating on April 19, 2006.


ITI LTD: Widens Net Loss to INR1.458 Bil. in 2006 3rd Quarter
-------------------------------------------------------------
ITI Ltd. posted a net loss of INR1.458 billion for the three
months ended Sept. 30, 2006, a 49% increase from the INR981.4-
million net loss incurred in the corresponding period last year.

Sales dropped by 28% from INR2.986 billion in the third quarter
of 2005 to INR2.157 billion in the third quarter of 2006.  ITI,
however, increased other income in the Sept. 2006 quarter to
INR268.9 million from the INR72.8 million earned in the
corresponding quarter in 2005.

With reduced sales, ITI's expenditures also decreased from
INR3.367 billion in the Sept. 2005 quarter to INR3.087 billion
in the Sept. 2006 quarter.

A full-text copy of ITI's unaudited financial results for the
quarter ended Sept. 30, 2006, is available for free at:

     http://www.itiltd-india.com/iti-english-final.pdf

                        About ITI Ltd.

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

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
November 3, 2006, Fitch Ratings assigned final National ratings
of 'D(ind)(SO)' to  ITI's INR550 million 'J-1' Series long-term
bonds.

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


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

BANK RAKYAT: Expects Profit To Increase 10% This Year
-----------------------------------------------------
PT Bank Rakyat Indonesia expects profit to increase by about 10%
in the 2006 fiscal year as it expands loans to small- and
medium-sized companies, Bloomberg News reports.

According to the report, Bank Rakyat President Director Sofyan
Basir said that the bank projects a net income of
IDR4.18 trillion this year.  The report recounts that Bank
Rakyat posted a net profit of IDR3.80 trillion in 2005.

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 26, 2006, Bank Rakyat's net profit for the nine-month
period ended September 30, 2006, rose 23.56% to IDR3.10 trillion
from the IDR2.51 trillion recorded for the same period last year
due to higher interest income.

Mr. Basir told reporters that the lender's projected net profit
for 2006 will be in line with its target.  He also said that the
bank expects to have outstanding loans of IDR90 trillion by the
end of this year, which figure is 19% higher than the
IDR75.5-trillion in 2005.

Bloomberg notes that demand for loans is rising after the
central bank cut its key interest rate, used as a reference for
bill sales, seven times since May to 9.75% from a three-year
high of 12.75% in December.  Bank Indonesia expects the rate for
its one-month bills to decline to 8.88% next year and 8.50% in
2008, Governor Burhanuddin Abdullah said, and added that "this
should improve demand for loans as "companies are more
interested to invest and engage in production next year."

Moreover, Mr. Basir said that Bank Rakyat plans to spend about
IDR5 trillion on agriculture loans, including for a North
Sumatra-based project that will process palm oil into biodiesel
and that the plant will have an annual capacity of 70,000 tons
of biodiesel, Bloomberg says.  Also, according to the report,
Mr. Basir hinted that a loan agreement is expected to be reached
by March 2007.

In addition, the report says that Bank Rakyat also expects to
expand its consumer banking business, targeting 400,000 credit
card issuances next year from around 45,000 currently.

Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- clients services
comprise Savings, Credits and Syariah.  In addition, the bank
divides its financial and business services into three groups:
Business Services, consisting of bank guarantees, bank
clearance, automatic teller machines and safe deposit boxes;
Financial Services, consisting of bill payments, CEPEBRI,
INKASO, deposit acceptance, online transactions and transfers,
and Other Services, consisting of tax and fine payments,
donations, Western Union and zakat contributions.  During the
year ended December 31, 2005, the bank had one branch office in
Cayman Islands and two representative offices in New York and
Hong Kong, respectively.

                          *     *     *

A Troubled Company Reporter - Asia Pacific report on Nov. 2,
2006, stated that Fitch Ratings has affirmed all these ratings
of Bank Rakyat Indonesia:

   * Long-term foreign currency issuer default rating: 'BB-'
   * Short-term foreign currency rating: 'B'
   * National Long-term rating: 'AA+(idn)',
   * Individual: 'C/D' and
   * Support '4'.

The outlook for the ratings is stable.

A TCR-AP report on July 6, 2006, indicated that Moody's
Investors Service has placed Bank Rakyat Indonesia's D- bank
financial strength rating on review for possible upgrade.  BRI's
other ratings were unaffected:

   -- Subordinated debt of Ba3; and
   -- Long-term/short-term deposit ratings of B2/Not Prime.
      Outlook stable.


HANOVER COMPRESSOR: Calls for Redemption of 7-1/4% Securities
-------------------------------------------------------------
Hanover Compressor Company said that the call for redemption on
January 4, 2007, of US$20,871,000 aggregate principal amount of
the Convertible Junior Subordinated Debentures Due 2029.
Hanover Compressor Capital Trust owns all of the Debentures and
the Trust is required to use the proceeds received from such
redemption to redeem US$20,245,000 aggregate liquidation amount
of its 7-1/4% Convertible Preferred Securities and US$626,000
aggregate liquidation amount of its 7-1/4% Convertible Common
Securities.  Hanover Compressor Company owns all of the Common
Securities of the Trust.

The Preferred Securities to be redeemed will be selected in
accordance with the applicable procedures of The Depository
Trust Company for partial redemptions.

Prior to 5:00 p.m., Eastern Time, on January 3, 2007, holders
may convert their Preferred Securities called for redemption on
the basis of one Preferred Security per US$50 principal amount
of Debentures which will then be immediately converted into
shares of Hanover Compressor Company common stock at a price of
approximately US$17.875 per share, or 2.7972 shares of Hanover
Compressor Company common stock per US$50 principal amount.
Cash will be paid in lieu of fractional shares.  On December 14,
2006, the closing price of Hanover Compressor Company common
stock on the New York Stock Exchange was US$20.42 per share.

Alternatively, holders may have their Preferred Securities that
have been called for redemption, redeemed on January 4, 2007.
Upon redemption, holders will receive US$50 for each of their
Preferred Securities, plus accrued and unpaid distributions
thereon from December 15, 2006 up to but not including Jan. 4,
2007.  Any of the Preferred Securities called for redemption and
not converted on or before 5:00 p.m., Eastern Time, on Jan. 3,
2007, will be automatically redeemed on Jan. 4, and no further
distributions will accrue.

Holders of the Preferred Securities should complete the
appropriate instruction form for redemption or conversion, as
applicable, pursuant to The Depository Trust Company's book-
entry system and follow such other directions as instructed by
The Depository Trust Company.

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

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

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 29, 2006, Moody's Investors Service, in connection with the
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the North American Forest
Products sector, confirmed its B1 Corporate Family Rating for
Hanover Compressor Company.

Four layers of bond debt issued by Hanover Compressor and
maturing between 2008 and 2014 carry low-B ratings from Moody's
Investors Service and Standard & Poor's Rating Services.


INTERNATIONAL NICKEL: To Clarify Lower Output
----------------------------------------------
PT International Nickel Indonesia may clarify the extent to
which 2006 output may miss a target of 71,000 tons because of a
power shortage caused by a lack of rain, Bloomberg News reports.

International Nickel is awaiting new assessment from the
nation's meteorological agency, Rajeshanagora Sutedja,
coordinator for corporate, public and media relations, told
Bloomberg.

The report notes that the company's new parent, Brazil's Cia.
Vale do Rio Doce, first said output at the unit may miss its
full-year target on Dec. 14.

Nickel futures in London has gained 83% in the past six months
on concern that supply is not enough to meet rising demand.
Nickel stockpiles have dropped 55% in six months to 6,966 metric
tons, Bloomberg relates.

The report says that, according to Mr. Sutedja, International
Nickel's output will be slightly below target but because it's
the end of the year, it will be a slight drop and nickel prices
are up again and will compensate.

The Troubled Company Reporter - Asia Pacific reported on
December 18, 2006, that International Nickel disclosed that
lower-than-average rainfall since October and an apparent delay
in the arrival of the rainy season (December to March) have
resulted in reduced electricity and falling reservoir levels.

The TCR-AP noted that unless significant rainfall occurs,
International Nickel's hydroelectric power generating capacity
will be negatively affected and its nickel-in-matte production
will need to be limited.

International Nickel is currently producing at a rate of about
1,400-1,500 tonnes of nickel-in- matte per week.  Production
cuts may result in the company just missing its current
production estimate for 2006 of approximately 71,000 tonnes of
nickel-in-matte, the TCR-AP added.

Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://www.pt-inco.co.id/-- is a nickel
producer with a production facility and mine are in Sorowako,
Sulawesi, where it has a contract agreement until 2025.  It
produces nickel matte, an intermediate product, from lateritic
ores at its integrated mining and processing facilities near
Sorowako on the island of Sulawesi.  Inco Limited of Canada
holds a 60.8% stake of the company and Sumitomo Metal Mining Co
Ltd. holds a 20.1% stake.

                          *     *     *

Standard and Poor's gave the company's long-term foreign and
local issuer credit both a BB- rating.

The company carries Fitch Ratings' BB long-term issuer default
and foreign currency long-term debt ratings.


MEDCO ENERGI: S&P Affirms 'B+' Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on PT Medco Energi Internasional Tbk, an oil & gas
exploration and production company in Indonesia.  The outlook
remains negative.

"The rating reflects Medco's short to medium proved reserve life
and single block concentration on the Rimau producing block,
which carries reserve replacement risks, execution and operation
risks, and an aggressive financial risk profile from an
aggressive debt-funded capital expenditure program," said
Standard & Poor's credit analyst Wee Lee Cheng.  "Nevertheless,
the rating benefits from company's position as a low-cost
producer in Indonesia."

"The negative outlook on Medco reflects the company's weaker
financial profile due to its increased debt burden to fund its
aggressive capital expenditure.  Medco will need one to two
years to translate these capital expenditures into incremental
revenue for the company," said Mr. Cheng.

"In addition, the contingent expenses due to the Brantas mud
flow problem is still under dispute with the operator, PT
Lapindo Brantas, with uncertainty over the final liability cost.
This may negatively affect Medco's current rating if its cash
outflow on this liability is significantly higher than our
current expectation of US$56 million-US$60 million as the total
cash outflow cost to the company, based on a total estimated
cost of US$180 million for Lapindo Brantas," he said. Medco owns
32% of Lapindo Brantas.

Standard & Poor's also notes that the company faces refinancing
risk in 2008 when bondholders of its 2010 Eurobond can exercise
its put option.

Although the company is currently negotiating with banks for a
stand-by refinancing facility, this refinancing risk will remain
until a firm commitment is in place.

Medco's total debt to EBITDA and funds from operations to total
debt for 2005 is 1.6x and 32%, respectively, and this is likely
to weaken further in the short to medium term as the company
embarks on its aggressive capital expenditure program.


PERUSAHAAN GAS: S&P Revises Outlook to Positive; Affirms Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on
Indonesia's PT Perusahaan Gas Negara (Persero) Tbk. to positive
from stable.  The ratings on the company are affirmed at 'B+'.

The outlook revision reflects the expectation that the financial
profile of PGN will improve in the near- to medium-term, with
distribution and transmission sales revenue increasing as a
result of its two new major transmission lines into West Java
from South Sumatra.  The transmission pipeline SSWJ1 is over 90%
complete, while SSWJ2 is expected to be operational by 2007.

Consequently, the company's financial profile is also expected
to improve with better interest coverage and cash flow credit
protection measures.  In this regard, the ratings could be
raised if the company's key financial metrics improve, in
particular its funds from operations to debt exceeds 35% and its
debt-to-EBITDA ratio falls below 2.2x.

Such improvements would be underpinned by PGN maintaining its
dominant position amid industry liberalization, and the
company's aggressive capital expenditure program being achieved
on time and on budget.  It also assumes that the network tariff
determination does not hinder the company's cash flow generating
abilities.

On the other hand, there could be downward pressures on the
outlook or rating if there is a significant decline in gas
exploration and production activities, which further lower gas
supply reliability, reduction in governmental support, decrease
in pipeline utilization rates, or if an overly aggressive
capital expenditures resulted in a material weakening of
financial measures.  Triggers for such financial measures would
be FFO to debt falling below 25% and debt-to-EBITDA ratio rising
above 3x.

The affirmation of the ratings on PGN continues to reflect its
challenges such as gas supply constraints and the mismatch of
tenors of PGN's gas sales contracts with its gas purchase
agreements, aggressive capital expenditure program, high
concentration on industrial customers, and material country
risks and regulatory uncertainties.  These challenges are
however, offset by the company's dominant position in the gas
transmission and distribution business, moderate and improving
cash flow measures, and insulation from price risk and minimal
volume risk from transmission business.  The ratings also
acknowledge some inherent support from the government through
supportive regulations, although they do not factor in any such
potential direct support.

Standard & Poor's will reevaluate the credit rating on PGN if
the government were to lower its shareholding in the company to
below 50%.

PGN is an Indonesian government-owned gas utility involved in
the transmission, distribution, wholesaling, and retailing of
gas.  For the first six months of 2006, PGN generated total
revenue of IDR3.4 trillion and EBITDA of IDR1.7 trillion.  The
company had total assets of IDR14 trillion as at June 30, 2006.

The government's plan to increase gas usage for power production
to 39% in 2010, from 31% currently will increase demand for gas,
which could translate into financial support for PGN to expand
its pipeline network.

Greater certainty in the domestic gas supply should encourage
higher investments in gas-fired power plants, which should in
turn reduce fuel oil consumption and boost demand for gas.


VERITAS DGC: Shareholders to Meet Jan. 9 to Vote on CGG Merger
--------------------------------------------------------------
As previously disclosed, Compagnie Generale de Geophysique and
Veritas DGC, Inc., will hold separate meetings of their
shareholders on January 9, 2007, in connection with the proposed
combination between the two companies.

Veritas stockholders will vote to approve the merger agreement
among Veritas, CGG, and CGG's subsidiaries Volnay Acquisition
Co. I and Volnay Acquisition Co. II.  CGG shareholders will vote
to approve the issuance of CGG ordinary shares underlying the
CGG ADSs to be issued pursuant to the merger and certain related
matters.

Upon approval of the share issuance and related matters by the
shareholders of CGG and the merger agreement by the stockholders
of Veritas, and satisfaction of other customary conditions, the
proposed merger is expected to close on or about January 12,
2007.

Veritas shareholders may elect to receive either CGG ADSs, cash
or a combination there of in exchange for their shares of
Veritas common stock.  Election forms for purposes of making
this election have been mailed together with the proxy
statement/prospectus on or about Dec. 5, 2006.  The deadline for
making an election with respect to the type of merger
consideration to be received is 5:00 p.m., New York City time,
on Jan. 10, 2007.

Holders of Veritas common stock should carefully complete the
election forms and submit them to the exchange agent before the
election deadline.

Immediately after the effective time of the merger, the combined
company will be renamed "Compagnie Generale de Geophysique-
Veritas," abbreviated as "CGG Veritas".  The trading symbol of
the combined company's ADS on the New York Stock Exchange will
be "CGV".  The CGG Veritas ADSs will have the same CUSIP number
as the CGG ADSs.

                          About Veritas

Headquartered in Houston, Texas, Veritas DGC, Inc. --
http://www.veritasdgc.com/-- is a leading provider of
integrated geophysical information and services to the petroleum
industry worldwide.  Veritas is listed on New York Stock
Exchange under the ticker VTS, and has offices in Malaysia and
Indonesia.

The Troubled Company Reporter - Asia Pacific reported on
Oct. 11, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the oilfield service
and refining and marketing sectors, the rating agency confirmed
its Ba3 Corporate Family Rating for Veritas DGC.

Standard & Poor's Ratings Services gave Veritas a 'BB' corporate
credit rating.


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

DELPHI CORP: Investor Group Commits Up to US$3.4 Billion
--------------------------------------------------------
Delphi Corp. disclosed that it has accepted a proposal for an
equity purchase and commitment agreement with affiliates of
Appaloosa Management L.P., Cerberus Capital Management, L.P.,
and Harbinger Capital Partners Master Fund I, Ltd., as well as
Merrill Lynch & Co. and UBS Securities LLC to invest up to
US$3.4 billion in preferred and common equity in the reorganized
Delphi to support the company's transformation plan announced on
March 31, 2006 and its plan of reorganization framework
agreement also filed Monday.

The Plan Framework Support Agreement, signed by Delphi, the Plan
Investors and General Motors Corp., outlines the expected
treatment of the company's stakeholders in its anticipated plan
of reorganization and provides a framework for several other
aspects of the company's Chapter 11 reorganization.

                            DIP Loan

Separately, Delphi accepted a proposal from JPMorgan Chase Bank,
N.A. and a group of lenders to refinance in full the company's
existing US$2.0 billion DIP facility and approximately
US$2.5 billion prepetition revolver and term loan facilities.
In recognition of the favorable environment in the capital
markets and to minimize transaction fees payable by Delphi, the
company has accepted the lenders' undertaking on a best efforts
basis without underwriting by the lenders.

The company is filing motions seeking approval of the agreements
with the United States Bankruptcy Court of the Southern District
of New York and will be filing the relevant agreements this week
with the U.S. Securities and Exchange Commission.

The Court has scheduled a hearing to consider approval of the
plan investment, plan support and DIP refinancing agreements at
10:00 a.m. EST on Jan. 5, 2007.  Objections, if any, to the
agreements must be filed with the Court by 4:00 p.m. EST on
Jan. 2, 2007.

"[Mon]day's agreements represent significant milestones in
Delphi's reorganization and another major step forward towards
emergence from our Chapter 11 reorganization in the U.S.," said
Delphi Chairman and CEO Robert S. "Steve" Miller.  "Delphi has
long emphasized its commitment to pursuing a resolution of the
principal issues in our restructuring.  The agreements announced
today demonstrate real progress toward that objective.  The Plan
Investors' conditional commitment to invest up to US$3.4 billion
in the reorganized company, together with their support of
Delphi's transformation plan and our reorganization plan
framework, should provide additional confidence to our
customers, suppliers, employees and financial stakeholders.
Similarly, our new US$4.5 billion DIP financing provides an
appropriate foundation from which to negotiate and secure
emergence financing.  While there is much that remains to be
accomplished in our reorganization, Delphi and its stakeholders
are together navigating a course that should lead to consensual
resolution with our U.S. labor unions and GM while providing an
acceptable financial recovery framework for stakeholders."

                        Equity Investment

Under the terms of the Equity Purchase and Commitment Agreement,
the Plan Investors will commit to purchase US$1.2 billion of
convertible preferred stock and approximately US$200 million of
common stock in the reorganized company.  Additionally, the Plan
Investors will commit to purchasing any unsubscribed shares of
common stock in connection with an approximately US$2.0 billion
rights offering that will be made available to existing common
stockholders.  The rights offering provides that Delphi will
distribute certain rights to its existing shareholders to
acquire new common stock subject to the effectiveness of a
registration statement to be filed with the SEC, approval of the
Bankruptcy Court and satisfaction of other terms and conditions.
The rights, which would be transferable by the original eligible
holders, would permit holders to purchase their pro rata share
of new common stock at a discount to anticipated reorganization
business enterprise value.

Under the terms of the agreement, the Plan Investors will commit
to purchase the number of shares that were offered through the
rights offering to eligible holders, but whose rights were not
exercised.  In the event no other shareholders exercised the
rights, the Plan Investors would purchase all of the
unsubscribed shares for an amount no greater than approximately
US$2.0 billion.

Altogether, the Plan Investors could invest up to US$3.4 billion
in the reorganized company.  The investment agreement is subject
to the completion of due diligence to the satisfaction of the
Plan Investors in their sole discretion, satisfaction or waiver
of numerous other conditions, including Delphi's achievement of
consensual agreements with its U.S. labor unions and GM that are
acceptable to the Plan Investors in their sole discretion, and
the non-exercise by either Delphi or the Plan Investors of
certain termination rights, all of which are more fully
described in the Equity Purchase and Commitment Agreement.

                Plan of Reorganization Framework

Delphi also filed Monday a Plan Framework Support Agreement
between Delphi, GM, and the Plan Investors, which outlines
Delphi's proposed framework for a plan of reorganization.  While
the plan framework is based on extensive discussions and
negotiations among Delphi, GM, the Plan Investors and Delphi's
statutory committees conducted since August of this year, not
every one of the proposed terms and conditions of the plan
framework are necessarily acceptable to Delphi's stakeholders,
including the company's statutory committees, each of which may
determine to oppose one or more elements of the framework. The
Plan Framework Support Agreement as well as the economics and
structure of the plan framework itself are expressly conditioned
on reaching consensual agreements with Delphi's U.S. labor
unions and GM.  Both Delphi and the Plan Investors are permitted
to terminate the Equity Purchase and Commitment Agreement, which
terminates the Plan Support Agreement, if consensual agreements
are not reached with labor and GM by Jan. 31, 2007.

The Plan Framework Support Agreement outlines certain plan
terms, including the distributions to be made to creditors and
shareholders, the treatment of GM's claim, the resolution of
certain pension funding issues, and the corporate governance of
the reorganized Debtors.

"This plan framework agreement forms a platform for the
resolution of our transformation issues and the formulation of a
consensual reorganization plan," Mr. Miller said.

The Plan Framework Support Agreement outlines these treatment of
claims and interests in Delphi's chapter 11 plan of
reorganization:

   * All senior secured debt would be refinanced and paid in
     full and all allowed administrative and priority claims
     would be paid in full.

   * Trade and other unsecured claims and unsecured funded debt
     claims would be satisfied in full with US$810 million of
     common stock, 18 million out of a total of 135.3 million
     shares, in the reorganized Delphi, at a deemed value of
     US$45 per share, and the balance in cash.  The framework
     requires that the amount of allowed trade and unsecured
     claims (other than funded debt claims) not exceed US$1.7
     billion.

   * In exchange for GM's financial contribution to Delphi's
     transformation plan, and in satisfaction of GM's claims
     against the company, GM will receive 7 million out of a
     total of 135.3 million shares of common stock in the
     reorganized Delphi, US$2.63 billion in cash, and an
     unconditional release of any alleged estate claims against
     GM.  In addition, as with other customers, certain GM
     claims would flow-through the chapter 11 cases and be
     satisfied by the reorganized company in the ordinary course
     of business.  The plan framework anticipates that GM's
     financial contribution to Delphi's transformation plan
     would include items to be agreed to between Delphi and GM
     such as triggering of the GM benefit guarantees; assumption
     by GM of certain postretirement health and life insurance
     obligations for certain Delphi hourly employees; provision
     of flowback opportunities at certain GM facilities for
     certain Delphi employees; GM's payment of certain
     retirement incentives and buyout costs under current or
     certain future attrition programs for Delphi employees;
     GM's payment of mutually negotiated buy-downs; GM's payment
     of certain labor costs for Delphi employees; a revenue plan
     governing certain other aspects of the commercial
     relationship between Delphi and GM; and GM's support of the
     wind-down of certain Delphi facilities and the sales of
     certain Delphi business lines and sites.  While the actual
     value of the potential GM contribution cannot be determined
     until a consensual resolution with GM is completed, Delphi
     is aware that GM has publicly estimated its potential
     exposure related to Delphi's chapter 11 filing.

   * All subordinated debt claims would be allowed and satisfied
     with US$450 million of common stock (10 million out of a
     total of 135.3 million shares) in the reorganized Delphi,
     at a deemed value of US$45 per share and the balance in
     cash.

   * Holders of existing equity securities in Delphi would
     receive US$135 million of common stock (3 million out of a
     total of 135.3 million shares) in the reorganized Delphi,
     at a deemed value of US$45 per share, and rights to
     purchase approximately 57 million shares of common stock in
     the reorganized Delphi for US$2.0 billion at a deemed
     exercise price of US$35 per share (subject to the rights
     offering becoming effective and other conditions).

            Emergence Corporate Governance Structure

The Equity Purchase and Commitment Agreement and the Plan
Framework Support Agreement also include certain corporate
governance provisions for the reorganized Delphi.

Under the terms of the proposed plan the reorganized Delphi
would be governed by a 12 member Board of Directors, 10 of whom
would be independent directors and two of whom would be a new
Executive Chairman and a new Chief Executive Officer and
President.  Most notably as part of the new corporate governance
structure, the current Delphi Board of Directors along with the
Plan Investors, have mutually recognized that current Delphi
President and Chief Operating Officer, Rodney O'Neal, will be
appointed CEO and president of the reorganized Delphi no later
than the effective date of the plan of reorganization.

Separately, Delphi's Board has decided to make Mr. O'Neal's CEO
appointment effective Jan. 1, 2007, to allow for the most
optimum transition between Miller and O'Neal before the company
emerges from bankruptcy.  Concurrent with O'Neal's appointment,
Miller will become Delphi's first Executive Chair and will
continue to oversee the company's chapter 11 reorganization
through emergence.

A five member selection committee, consisting of John D. Opie,
Delphi Board of Director's lead independent director, a
representative of each of Delphi's two statutory committees and
a representative of each of Delphi's two lead Plan Investors --
Cerberus and Appaloosa -- will select the company's post-
emergence Executive Chair as well as four independent directors
(one of whom may be from Delphi's current Board of Directors).
The two lead Plan Investors must both concur in the selection of
the Executive Chair, but do not vote on the four common
independent directors and will each appoint three Board members
comprising the remaining six members of the new board of
directors.  The new board of directors must satisfy all
exchange/NASDAQ independence requirements.  Executive
compensation for the reorganized company must be on market
terms, must be reasonably acceptable to the Plan Investors, and
the overall executive compensation plan design must be described
in the company's disclosure statement and incorporated into the
plan of reorganization.

                         Pension Funding

The Plan Framework Support Agreement reaffirms Delphi's earlier
commitment to preserve its salaried and hourly defined benefit
U.S. pension plans and will include an arrangement to fund
approximately US$3.5 billion of its pension obligations.  The
company agreed that as much as US$2 billion of this amount may
be satisfied through GM taking an assignment of Delphi's net
pension obligations under applicable federal law.  GM will
receive a note in the amount of such assignment on market terms
that will be paid in full within 10 days following the effective
date of a plan of reorganization.  Through this funding, Delphi
will make up required contributions to the plans that were not
made in full during the Chapter 11 process.

The company has previously said that one of the goals of its
transformation plan is the retention of existing U.S. defined
benefit pension plans for both its hourly and salaried
workforce. In order to retain the programs and related benefits
accrued, Delphi will freeze the U.S. pension plans no later than
at the time of emergence.

"With this funding, Delphi will be able to preserve its pension
plans and become fully funded to the extent required by ERISA,"
said Mr. Miller.  "While other major Chapter 11 labor
transformation cases have regrettably had to terminate their
pension plans as part of their restructuring, Delphi has
expended a great deal of effort and energy to save our
employees' pensions."

          Existing Prepetition And Dip Loan Refinancing

Given the current favorable conditions in the capital markets,
Delphi will be seeking court approval to enter into a
US$4.5 billion replacement DIP financing facility on more
favorable terms than the combined DIP and prepetition term and
revolver loan facilities that are being replaced.  Under the
terms of the replacement financing facility, Delphi estimates
that it will save approximately US$8 million per month in
financing costs.  These savings result from the interest rate
under the replacement financing facility being lower than the
accrual rate for the adequate protection payments in respect of
the secured prepetition credit facilities, which the company
proposes to repay with a portion of the proceeds of the
replacement financing facility.

The savings generated would preserve additional value of the
company's estates and would enhance the ability to implement its
transformation plan and emerge from chapter 11 protection.

The replacement financing facility will have similar terms as
the existing DIP facility, with certain key exceptions, all of
which are beneficial for Delphi and its estates.  The
refinancing of the secured prepetition credit facilities will
not impair, in any material respect, the lien priorities of
other holders of secured claims relative to such facilities.
Details of the replacement financing facility and the existing
DIP facility can be found in Delphi's DIP refinancing motion
filed with the Court.

                  Consensual Agreement Status

While there have been continuing discussions with the company's
U.S. labor unions and GM, the parties have not reached
comprehensive agreements and there are significant differences
of views that need to be reconciled in order to achieve
consensual agreements in a timeframe that would permit Delphi to
preserve the plan investment and plan framework and support
agreements announced today.

"While today's agreements are an important step forward in our
transformation, we remain keenly focused on reaching a
consensual resolution with all of our U.S. unions and GM," Mr.
Miller said. "Our fiduciary responsibility as debtors-in-
possession is to maximize the value of our estates.  Although
[Mon]day's court filings represent an encouraging and necessary
move closer to emergence, we and our counterparts at the
negotiating table must complete our work promptly and on a
consensual basis if Delphi is to emerge from chapter 11 during
the first half of 2007."

Consistent with its prior practice, the company will not comment
further regarding the status or substance of its discussions
with GM or its unions while discussions are ongoing.

                   About Delphi Corporation

Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/-
- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology.  The company's technology and
products are present in more than 75 million vehicles on the
road worldwide.  Delphi has regional headquarters in Japan,
Brazil and France.

Fitch Ratings has assigned a rating of 'BB-' to Delphi
Corporation's US$2 billion of debtor-in-possession credit
facilities.  The DIP facilities will consist of a revolving
credit portion and a term loan portion and are to be pari passu
with each other in terms of priority of repayment, collateral,
and guarantees.  The term loan and revolving credit will,
therefore, share the same ratings.

Standard & Poor's Ratings Services lowered its ratings on Delphi
Corp. to 'D' after the company's U.S. operations filed for
Chapter 11 bankruptcy protection.  The recovery rating on
Delphi's senior secured bank facility was withdrawn.  Delphi,
the largest U.S. manufacturer of automotive components, has
total debt of about US$6 billion and total unfunded pension
obligations and other postretirement employee benefit
liabilities of about US$14.5 billion.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.  (Delphi Bankruptcy News, Issue No. 50; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


DELPHI CORP: Steering Unit Books US$3.3 Bil. in New Business
----------------------------------------------------------
Delphi Corporation has already booked US$3.3 billion in new
steering and halfshaft business to date in 2006, and expects
additional new business awards prior to year-end, company
officials disclosed.

Most of the new business awards are approximately five years in
duration.  Further details remain confidential at the customers'
request.

Sixteen global customers are included among the new business
awards, with no single customer representing more than 50% of
the total business.  More than half of the new business is for
vehicles produced in Europe, Asia and South America.

The products sold include electric and hydraulic power steering
systems, steering columns, gears, hoses and halfshafts.

"We're showing remarkable strength during a turbulent time for
the entire industry," said Bob Remenar, president, Delphi
Steering division.  "This sales performance shows that we have
strong technologies that excite a diversified and global
customer base.  We have a team that is committed to bringing
value to our customers.  Our team has built strong sales
momentum throughout the year.  We expect that momentum to
continue for the remainder of the year and into 2007."

Beyond the short-term improvement, the news has historical
significance: In the 100 years that Delphi has been producing
steering components and systems, 2006 will represent the second-
strongest bookings year ever.  As the division continues to book
sales for the remainder of the year, Remenar said he expects
that 2006 will reflect more than a 50% gain compared with 2005.

Remenar further said that more than 30% of the new business in
2006 is conquest business.  "It's really simple," Remenar
said.  "We expect that as more customers get to know us -- our
people, our products, our quality, and our global footprint,
with our engineering and manufacturing capabilities -- they will
want to do more business with Delphi Steering."

Delphi Steering now supports 64 customers worldwide.  The
division has more than 9,200 employees at 22 manufacturing
plants, 11 customer support centers, and five regional
engineering centers worldwide.

Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology.  The company's technology and
products are present in more than 75 million vehicles on the
road worldwide.  Delphi has regional headquarters in Japan,
Brazil and France.

Fitch Ratings has assigned a rating of 'BB-' to Delphi
Corporation's US$2 billion of debtor-in-possession credit
facilities.  The DIP facilities will consist of a revolving
credit portion and a term loan portion and are to be pari passu
with each other in terms of priority of repayment, collateral,
and guarantees.  The term loan and revolving credit will,
therefore, share the same ratings.

Standard & Poor's Ratings Services lowered its ratings on Delphi
Corp. to 'D' after the company's U.S. operations filed for
Chapter 11 bankruptcy protection.  The recovery rating on
Delphi's senior secured bank facility was withdrawn.  Delphi,
the largest U.S. manufacturer of automotive components, has
total debt of about US$6 billion and total unfunded pension
obligations and other postretirement employee benefit
liabilities of about US$14.5 billion.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.  (Delphi Bankruptcy News, Issue No. 50; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


SOLO CUP: Elects Four New Members to Board of Directors
-------------------------------------------------------
Solo Cup Co. elected four new members to its Board of Directors.
The election increases the size of the Solo Cup Board of
Directors from seven members to 11.

The newly elected Board members are:

   -- Peter W. Calamari,
   -- Jack M. Feder,
   -- Jeffrey W. Long and
   -- Kevin A. Mundt,

all of whom are employees of Vestar Capital Partners, a private
equity firm that owns a minority interest in the company.  Of
the 11 board members, six are appointed by Vestar.  In addition,
the Board named Mr. Mundt as chairman, replacing long-time
chairman Robert L. Hulseman, who will remain on the Board and
will also serve as chairman emeritus.  John Hulseman will serve
as vice chairman Emeritus.

"On behalf of Solo's leadership team, I would like to welcome
our new Board members.  Their considerable experience in
enhancing the performance of a variety of companies will be of
great value to Solo as we pursue our Performance Improvement
Program," said Robert M. Korzenski, the company's chief
executive officer.

"Robert Hulseman had the vision and the expertise to bring
plastics into the world of disposable foodservice products.  He
was instrumental in creating a number of products that consumers
embrace as a regular part of their daily lives," said Dan
O'Connell, chief executive officer of Vestar Capital Partners.
"We are honored to play a role in helping move this company
forward on behalf of the Hulseman family and Solo's employees."

Mr. Mundt is a managing director at Vestar Capital Partners,
where he also heads Vestar Resources, the firm's portfolio
monitoring and advisory group.  He has consulted for more than
23 years with major multinational corporations on strategic
issues affecting shareholder value growth.  Previously, Mr.
Mundt was co-founder and director of strategic consultancy
Corporate Decisions Inc., which merged with Mercer in 1997.  He
currently serves as a director of Birds Eye Foods, Sunrise
Medical, Duff and Phelps, MediMedia and Fiorucci, SpA. Mr. Mundt
began his career at Bain & company.

Mr. Long is a managing director in Vestar Resources.  He
previously spent 12 years at McKinsey and company, Inc.,
advising industrial clients on enhanced strategy and marketing,
supply chain management, manufacturing and capital discipline.
Prior to that, he served as a cavalry officer in the U.S. Army
for 14 years. Mr. Long is a director on the Boards of ArgoTech
and St. John Knits.

Mr. Feder is general counsel at Vestar Capital Partners.  Before
joining Vestar, Mr. Feder was a senior corporate partner in the
private equity group of Kirkland & Ellis.

Mr. Calamari is a vice president of Vestar Capital Partners.
Prior to joining Vestar, he was a member of the Mergers &
Acquisitions group at Merrill Lynch.

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

The Troubled Company Reporter - Asia Pacific reported on
Oct. 27, 2006, that Standard & Poor's Ratings Services lowered
all its ratings on Solo Cup Co. by two notches, including its
corporate credit rating to 'CCC+', and removed them from
CreditWatch where they had been placed with negative
implications on Aug. 18, 2006.  The outlook is negative.

Moody's Investors Service is continuing the review for possible
downgrade of Solo Cup Company first initiated on Aug. 16, 2006
and reiterated on Sept. 15, 2006.  Although Solo Cup has met its
obligation to file financial statements and has completed its
previously announced review of accounting issues, Moody's
continues to have concerns regarding liquidity and ongoing
business strategy.

Moody's held B2 ratings on US$150 million senior secured
revolving credit facility maturing Feb. 27, 2010, and on US$635
million senior secured term loan B due Feb. 27, 2011; Caa1
rating on US$80 million senior secured second lien term loan due
Feb. 27, 2012; Caa2 rating on US$325 million 8.5% subordinated
notes due Feb. 15, 2014.


SOLO CUP: Launches Performance Improvement Program
--------------------------------------------------
Delivering on its promise to investors, Solo Cup Co. has
launched its Performance Improvement Program.  Having completed
a thorough review of its operations, the company has designed a
program to reduce costs and help drive profitable growth.  The
Program targets opportunities for improvement in Supply Chain
and Operations, Selling, General & Administrative expenses, and
Sales and Marketing.  The company today announced that it is
implementing its first major initiatives under the plan -- a
targeted corporate workforce reduction and the start of
manufacturing productivity improvements.

"This program is designed to address challenges facing the
business directly while allowing us to build on our strengths,"
said Robert M. Korzenski, the company's chief executive officer.
"We are moving aggressively to implement the changes necessary
to turn our business around."

Initiatives will focus on maximizing cash flow, reducing costs,
improving margin, increasing value and building a performance
culture, Korzenski added.

                    Savings in SG&A Expenses

The company eliminated 92 salaried employee and contractor
positions, addressing inefficiencies in all parts of the
corporate organization.  The workforce reduction is expected to
generate approximately US$9 million in annualized cost
reductions, which represents an approximate 5% reduction in
both salaried headcount and salaried compensation expense.  The
company will incur a one-time charge of approximately
US$1.4 million in severance costs.

In addition, Management expects to cancel a number of currently
open budgeted positions.  Solo's hourly manufacturing employees
were not impacted.

"This was a difficult action to take, particularly at this time
of year," said Mr. Korzenski.  "Every affected employee will
receive severance to help them through the transition.  I would
like to thank them for their dedicated service to the company."

             Manufacturing Productivity Improvement

Solo is also taking steps to increase productivity in its
manufacturing facilities.  The company is working in the plants
on a range of initiatives focused on achieving operational
efficiencies.  The facilities plan to increase productivity
through refining processes, increasing machine utilization and
reducing material scrap. Concurrently, Solo has begun related
work to improve purchasing and inventory management.  The
company believes that collectively these actions will contribute
to supply chain efficiencies and cost reduction.

                        About Solo Cup

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

The Troubled Company Reporter - Asia Pacific reported on
Oct. 27, 2006, that Standard & Poor's Ratings Services lowered
all its ratings on Solo Cup Co. by two notches, including its
corporate credit rating to 'CCC+', and removed them from
CreditWatch where they had been placed with negative
implications on Aug. 18, 2006.  The outlook is negative.

Moody's Investors Service is continuing the review for possible
downgrade of Solo Cup Company first initiated on Aug. 16, 2006
and reiterated on Sept. 15, 2006.  Although Solo Cup has met its
obligation to file financial statements and has completed its
previously announced review of accounting issues, Moody's
continues to have concerns regarding liquidity and ongoing
business strategy.

Moody's held B2 ratings on US$150 million senior secured
revolving credit facility maturing Feb. 27, 2010, and on US$635
million senior secured term loan B due Feb. 27, 2011; Caa1
rating on US$80 million senior secured second lien term loan due
Feb. 27, 2012; Caa2 rating on US$325 million 8.5% subordinated
notes due Feb. 15, 2014.


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

PANTECH CO: Pantech&Curitel's Stock Resumes Trading
---------------------------------------------------
Pantech&Curitel Communications Inc.'s stock resumed trading in
the Korean Exchange on Dec. 20, Bloomberg News reports.

As reported in the Troubled Company Reporter - Asia Pacific
yesterday, Korea Exchange suspended the trading of
Pantech&Curitel's shares on Dec. 19 after hearing bankruptcy
rumors and gave the company until 6:00 p.m. of the same day to
clarify the buzz.

According to earlier TCR-AP reports, Pantech&Curitel and
affiliate Pantech Co. sought creditors' bailout due to
increasing debts and mounting losses.  On Dec. 15, the creditors
rescued the companies by approving a debt-work out program.

In a filing to the exchange, Pantech explained that it avoided
bankruptcy because it did not have to pay the short-term debt
that matured on Dec. 18 after creditors agree to the bailout.

The creditors, including the Korea Development Bank, decided to
offer a two-month grace period on the company's matured debts,
the TCR-AP report said citing The Korea Times as source.  In
return, creditors ask Pantech's management to accept their
proposals for restructuring and take drastic measures to improve
profitability

Headquartered in Seoul, Korea, Pantech Co., Ltd. --
http://www.pantech.co.kr/manufactures mobile phones.  Pantech's
products are mainly global system for mobile communication and
code division multiple access phones.  The company markets its
products internationally, and supplies Motorola as an original
equipment manufacturer and original design manufacturer.  It has
seven subsidiaries involved in the information technology and
telecommunication sectors.


WOORI BANK: To Sell 8.6-Mil. Shares in LG Card for KRW585 Bil.
--------------------------------------------------------------
Woori Bank on Dec. 18, 2006, agreed to sell a majority of its
shares in LG Card Co. pursuant to a tender offer to be conducted
by Shinhan Financial Group, a filing with the United States
Securities and Exchange Commission reveals.

Woori Bank is a member of the creditors' steering committee of
LG Card.

According to previous reports by the Troubled Company Reporter -
Asia Pacific, LG Card's creditors agreed to sell to Shinhan
Financial a majority stake in the credit card company.

As reported in the TCR-AP on Dec. 14, Shinhan agreed to pay
around US$5.6 billion for a 61% stake in LG Card.

Pursuant to the SEC filing, Shinhan will pay KRW585,232,104,510
for Woori Bank's 8,635,563 shares in LG Card.  With the sale,
the bank's outstanding shares in the credit card company
decreased from 10,203,899 shares to 1,568,336 shares.

The expected closing date is on March 23, 2007.

The reason for disposition, the filing states, is to recover its
capital contribution with respect to LG Card.

The structure or schedule of the disposition may still be
subject to change, the filing notes.

                         About Woori Bank

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

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

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


* Central Bank Requirement Cues Banks to Cut Forex Deposit Rates
----------------------------------------------------------------
The directive of Korea's central bank to lenders to raise
reserves held against foreign currency prompted banks to cut
their interest rates on foreign currency deposits.

The Bank of Korea's order, which is set to take effect on
Dec. 23, is aimed to restrain borrowing, The Korea Herald
reports.  The central bank requires reserve ratio on short-term
foreign currency deposits to be increased to 7% from the current
5%.   Lenders will therefore have to set aside US$1.11 billion
won out of their foreign currency deposits as reserves, US$260
million more than the current level, The Herald points out.

With the tougher reserve requirement, banks slashed their FOREX
deposit interest rates:

According to the Korean newspaper, Kookmin Bank cut interest
rates on short-term dollar deposits by as much as 0.1 percentage
points, effective Dec. 20.

The revised rates on deposits for terms of less than one week is
now 4.07%, down 0.09 percentage points from the previous 4.16%,
the newspaper notes.   The interest rate applicable for deposits
for a period of one week to less than a month is 4.44% from the
previous 4.54%.

Woori Bank also decided to revise its interest rates on dollar
deposits by 0.1 percentage points, the paper adds.

Korea Exchange Bank, Hana Bank, Shinhan Bank and the Industrial
Bank of Korea are expected to also make the slash.


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

ATMEL CORP: Intends to Sell UK, Germany Wafer Fabrication Plants
----------------------------------------------------------------
Atmel Corp. reported strategic restructuring initiatives
designed to enhance profitability, accelerate the company's
growth and reduce costs.

These initiatives include:

   -- A focus on the company's high-growth, high-margin
      proprietary product lines.  To better align Atmel's
      resources with highest-growth opportunities, the company
      is redeploying resources to accelerate the design and
      development of products that target expanding markets and
      is halting development on lesser, unprofitable, non-core
      products.

   -- Optimize Atmel's manufacturing operations.  Atmel will
      seek to sell its wafer fabrication facilities in North
      Tyneside, United Kingdom, and Heilbronn, Germany.  These
      actions are expected to increase manufacturing
      efficiencies by better utilizing remaining wafer
      fabrication facilities while reducing future capital
      expenditure requirements.

   -- The adoption of a fab-lite strategy.  Through better
      utilization of its remaining wafer fabs and the expansion
      of its foundry relationships, Atmel will significantly
      reduce manufacturing costs and continue to design and
      develop innovative new products utilizing world-class
      manufacturing facilities.

The company anticipates cost savings in the range of US$70
million to US$80 million in 2007 reaching an annual rate of
US$80 million to US$95 million by 2008.  Included in the cost
savings is approximately US$55 million per year resulting from
the expected sale of the wafer fabrication facilities.

Through a combination of voluntary resignations, attrition and
other actions, Atmel expects a reduction in its non-
manufacturing workforce of approximately 300 employees, or 10%.

The company anticipates headcount to be reduced by approximately
1,000 additional employees upon completion of the sales of the
North Tyneside and Heilbronn wafer fabrication facilities.

Atmel will continue to meet the production needs of its
worldwide customer base during this transition through the use
of internal capacity and existing foundry partners.

In addition, Atmel anticipates entering into a transition
sourcing agreement with the eventual buyers of the wafer
fabrication facilities.

"These initiatives follow a thorough analysis of the company's
operations and strongest opportunities for growth," Atmel
president and chief executive officer Steven Laub said.

"While this decision was difficult given the company's many
dedicated employees, these actions are essential to better
position Atmel to compete and drive value for our shareholders.

"Focusing on our core business competencies, expanding our
foundry relationships, and the adoption of a fab-lite model are
the right strategies for Atmel to better serve our customers,
reduce manufacturing costs, and enhance shareholder value."

As a result of the initiatives, the company estimates it will
record one-time restructuring and impairment charges in excess
of US$200 million in the fourth quarter of 2006 for fixed asset
write-downs, severance, and other expenses associated with the
restructuring.  A significant portion of these non-recurring
charges relate to the non-cash write-down of the North Tyneside
manufacturing facility Atmel intends to sell.

                            About Atmel

Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) --
http://www.atmel.com/-- designs and manufactures
microcontrollers, advanced logic, mixed-signal, nonvolatile
memory, and radio frequency components.  Leveraging one of the
industry's broadest intellectual property technology portfolios,
Atmel is able to provide the electronics industry with complete
system solutions.  It is focused on consumer, industrial,
security, communications, computing, and automotive markets.
The company has manufacturing facilities in USA and Europe with
test and assembly facilities in the Philippines and Malaysia.

                           *     *     *

Standard & Poor's Rating Services assigned its single-B long-
term foreign issuer and long-term local issuer credit ratings to
Atmel Corp. on Oct. 24, 2001, and said the outlook, at that
time, was negative.


ATMEL CORP: NASDAQ Conditionally Grants Continued Listing
---------------------------------------------------------
Atmel Corp. disclosed that the NASDAQ Listing Qualifications
Panel has granted the company's request for continued listing on
the NASDAQ Stock Market subject to certain conditions.

On Feb. 9, 2007, Atmel must file with the Securities and
Exchange Commission its Forms 10-Q for its second quarter ended
June 30, 2006, and third quarter ended Sept. 30, 2006, as well
as any necessary restatements for prior financial periods.

The company must also be able to demonstrate compliance with all
other requirements for continued listing on the Nasdaq Stock
Market.

In granting the extension, the Panel has required that through
Feb. 9, 2007, Atmel will notify the Panel of the occurrence of
any significant events, including any event that may call into
question Atmel's historical financial information or affect the
company's ability to comply with any NASDAQ listing requirement
or satisfy the Feb. 9, 2007, deadline.

In addition, any submissions to the Panel, press releases, or
public filings prepared by Atmel will be subject to review by
the Panel, which may, at its discretion, request additional
information before determining that Atmel has complied with the
terms of the Panel's decision.

The Audit Committee of the company's Board of Directors
initiated an independent investigation regarding the timing of
past stock option grants and other potentially related issues.

The Audit Committee, with the assistance of independent legal
and forensic accounting experts, has reached a preliminary
determination that, in connection with the requirements of
Accounting Principles Board Opinion No. 25, Accounting for Stock
Issued to Employees, the actual measurement dates for certain
stock options differed from the recorded measurement dates for
those stock options.

Based on the Audit Committee's preliminary determination, the
company expects that the difference in these measurement dates
will result in material non-cash, stock-based compensation
expenses.

The company disclosed the decision of the Audit Committee that
prior financial statements should no longer be relied upon.

The Audit Committee has not completed its work nor reached final
conclusions and is continuing its investigation into the
circumstances that gave rise to the differences.

The Audit Committee is making every effort to complete its
investigation, and the company will make every effort to file
its restated financial statements as soon as practicable after
the completion of the investigation.

There can be no assurance that Atmel will remain listed on the
NASDAQ Global Market unless and until the company fully
satisfies the terms of the Panel's decision.

Headquartered in San Jose, Calif., Atmel Corp. (Nasdaq: ATML) --
http://www.atmel.com/-- designs and manufactures
microcontrollers, advanced logic, mixed-signal, nonvolatile
memory, and radio frequency components.  Leveraging one of the
industry's broadest intellectual property technology portfolios,
Atmel is able to provide the electronics industry with complete
system solutions.  It is focused on consumer, industrial,
security, communications, computing, and automotive markets.
The company has manufacturing facilities in USA and Europe with
test and assembly facilities in the Philippines and Malaysia.

                           *     *     *

Standard & Poor's Rating Services assigned its single-B long-
term foreign issuer and long-term local issuer credit ratings to
Atmel Corp. on Oct. 24, 2001, and said the outlook, at that
time, was negative.


AVAYA INC: Earns US$48 Million in Fiscal Quarter Ended Sept. 30
---------------------------------------------------------------
Avaya Inc. reported a net income of US$48 million for the fourth
fiscal quarter ended Sept. 30, 2006.  Avaya's fourth fiscal
quarter 2006 revenues increased five percent to US$1.364 billion
compared to US$1.296 billion in the same period last year.

For the fourth fiscal quarter last year, the company reported a
US$660 million net income.  Those results included a tax benefit
of US$577 million from the reversal of the company's deferred
tax valuation allowance, restructuring charges and a charge for
in-process research and development.

At Sept. 30, 2006 the company reported US$5.2 billion in total
assets, US$3.1 billion in total liabilities, and US$2.1 billion
in total stockholders' equity.

The company reported a US$75 million operating income for the
fourth quarter of 2006 and, excluding the restructuring charges,
US$137 million.  In the year ago quarter, operating income was
US$82 million and excluding restructuring charges and a charge
for in-process research and development, US$107 million.

"We finished fiscal 2006 with a strong quarter," said Lou
D'Ambrosio, president and CEO, Avaya.  "The transition by
enterprises to IP telephony and Intelligent Communications
continued to drive growth in product sales and IP line
shipments.  Also in the quarter, we captured operating leverage
from our revenue growth and generated strong cash flow.  And we
took action to more effectively align our resources to capture
market opportunities and to improve our cost structure.

"As we move forward in fiscal 2007, we are focused on driving
growth and extending our market leadership around Intelligent
Communications, tenacious execution and productivity
enhancements to deliver sustained value creation," Mr.
D'Ambrosio said.

During the fourth fiscal quarter of 2006, Avaya incurred
restructuring charges of US$62 million pre-tax, primarily
related to workforce reductions in the United States and Europe.
Avaya also said it expects to incur additional restructuring
charges in the range of approximately US$65 million to US$75
million in the first half of fiscal 2007 related to workforce
reductions.  The savings from the fourth quarter of fiscal 2006
and first half of fiscal 2007 actions will be used to offset
increased compensation-related expenses and to enhance and
upgrade the company's workforce skills, reinvest in the business
to strengthen Avaya's competitiveness and support revenue
growth.

Once the company has completed these additional restructuring
actions, the company believes it should be able to reasonably
estimate and make an addition to its reserve for future post
employment benefits pursuant to Financial Accounting Standards
No. 112, relating to its European operations, of up to
approximately US$70 million.

For fiscal year 2006, Avaya reported net income of US$201
million compared to net income of US$921 million in fiscal 2005,
which result included a tax benefit of US$676 million.  The
company generated operating cash flow of US$647 million in
fiscal 2006 compared to US$334 million in fiscal 2005.

Fiscal 2006 revenues were US$5.148 billion compared to fiscal
2005 revenues of US$4.902 billion.

Year-over-year revenues increased in both the company's products
and services segments, as well as across all geographic regions.
Worldwide product sales rose nine percent compared to the same
period last year, with IP line shipments increasing in the high
20 percent range.

Headquartered in Basking Ridge, N.J., Avaya Inc., (NYSE: AV) --
http://www.avaya.com.-- designs, builds and manages
communications networks for more than one million businesses
worldwide, including more than 90 percent of the FORTUNE 500(R).
Focused on businesses large to small, Avaya is a world leader in
secure and reliable Internet Protocol telephony systems and
communications software applications and services.  Avaya has
locations in Malaysia, Argentina and the United Kingdom.

                         *     *     *

Standard & Poor's Ratings Services raised its corporate credit
rating on Avaya, Inc., to 'BB' from 'B+'.

Moody's Investors Service upgraded the senior implied rating of
Avaya, Inc., to Ba3 from B1.  Moody's said the ratings outlook
is positive.


FALCONBRIDGE: Xstrata's Chilean Union Snubs Wage Offer
------------------------------------------------------
A Chilean union at Xstratata plc, the parent firm of
Falconbridge Ltd., rejected a wage offer presented by management
in a bid to prevent a strike this week.

Falconbridge owned Altonorte before the firm was purchased by
Xstrata this year.

According to Bloomberg News, workers at the Altonorte copper
smelter refused a wage increase of 1 percentage point to 4
percentage points above inflation.

Altonorte produced 297,567 tons of almost pure copper in 2005,
Bloomberg says.  Union members make up 70% of the smelter's
workforce.

                        About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the United Kingdom and
Canada. Xstrata holds a 97% stake in Falconbridge.

                      About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries, including Malaysia.  The company owns
nickel mines in Canada and the Dominican Republic and operates a
refinery and sulfuric acid plant in Norway.  It is also a major
producer of copper (38% of sales) through its Kidd mine in
Canada and its stake in Chile's Collahuasi mine and Lomas Bayas
mine.  Its other products include cobalt, platinum group metals,
and zinc.

                        *    *    *

Falconbridge's CDN$150-million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.


FOAMEX INTERNATIONAL: Wants Plan Solicitation Procedures Amended
----------------------------------------------------------------
Foamex International Inc. and its debtor-affiliates seek to
provide supplemental disclosure in their Second Amended Plan of
Reorganization and Disclosure Statement with regard to certain
Trading Restrictions.

To ensure full, fair and adequate disclosure of the possible
Trading Restrictions, the Debtors ask the U.S. Bankruptcy Court
for the District of Delaware to amend the Disclosure Statement
and Solicitation Procedures Order to:

   (a) authorize the distribution of the Supplemental
       Solicitation Packages, which includes the First
       Supplement to the Disclosure Statement, to holders of
       Interests in Class 9 -- Existing Preferred Stock, and
       Class 10 -- Existing Common Stock;

   (b) establish January 11, 2007, as the new deadline by which
       beneficial holders in Classes 9 and 10 must return the
       Beneficial Holder Ballot they received; and

   (c) establish January 18, 2007, as the new Voting Deadline
       for the Classes 9 and 10, and the new deadline for
       Classes 9 and 10 to file objections to confirmation of
       the Second Amended Plan.

For them to have sufficient time to complete the solicitation of
votes from Classes 9 and 10, the Debtors also ask the Court to
adjourn the Confirmation Hearing to a date that is approximately
one week after January 18, 2007.

Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware, points out that under the
Disclosure Statement and Solicitation Procedures Order, holders
of Interests in Classes 9 and 10 are afforded approximately five
weeks to vote to accept or reject the Second Amended Plan.
Interestholders in Classes 9 and 10 will have approximately
seven weeks to review and contemplate the Second Amended Plant
and approximately four weeks to review the First Supplement
Disclosure.

The Debtors further propose that all procedures under the
Disclosure Statement and Solicitation Procedures Order remain
unaffected, provided that any Class 9 or 10 Interestholder who
already voted before the transmission of the Supplemental
Solicitation Package but who does not submit a subsequent vote
before the Class 9 and 10 Voting Deadline should have their
original vote counted.

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  Foamex
has Asian locations in Malaysia, Thailand and China.

The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).  Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors.  As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts.  (Foamex International Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'.  The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.

The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate.  The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.


FOAMEX INTERNATIONAL: Files Supplements to Second Amended Plan
--------------------------------------------------------------
Under their Second Amended Plan, Foamex International Inc. and
its debtor-affiliates are authorized to enter into and perform
under a commitment letter with certain holders of equity
interests in Foamex International and to commence a rights
offering.

Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware, relates it is possible that the
outcome of the Rights Offering will result to a change in
control, in which case Foamex International could utilize its
net operating losses, which could yield a significant tax
benefit to reorganized Foamex International and enhance the
Debtors' reorganization value.

To preserve the value and protect against a change against a
change of control after the Effective Date, the Debtors have
determined that it would be advisable to restrict trading of
Foamex International's common stock.  The Trading Restrictions
would be included in the Reorganized Debtors' amended and
restated certificate of incorporation.  The Trading Restrictions
will only be necessary, and thus will only be implemented, under
certain limited circumstances related to the Rights Offering.

Although the Disclosure Statement contemplates the filing of an
amended and restated certificate of incorporation, neither the
Disclosure Statement nor the Plan specifically identify the
possibility of the Trading Restrictions being included in the
restated certificate of incorporation.

Thus, the Debtors ask the Court to approve a supplemental
disclosure regarding the Trading Restrictions as containing
adequate information within the meaning of Section 1125 of the
Bankruptcy Code.

A full-text copy of the First Supplement to the Disclosure
Statement is available for free at:

               http://researcharchives.com/t/s?171f

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  Foamex
has Asian locations in Malaysia, Thailand and China.

The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).  Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors.  As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts.  (Foamex International Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'.  The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.

The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate.  The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.


FOAMEX INT'L: Pa. Revenue Dept. Opposes Amended 2nd Ch. 11 Plan
---------------------------------------------------------------
The Commonwealth of Pennsylvania Department of Revenue objects
to Foamex International Inc. and its debtor-affiliates' Second
Amended Plan of Reorganization to the extent it attempts to
release the Debtors' corporate officers from any liability for
payment of state trust fund taxes.

Attorney General Thomas W. Corbett, Jr., Esq., relates that the
Revenue Department has administrative and priority claims
against certain Debtors for unpaid corporate taxes:

   Debtor                        Type of Claim         Amount
   ------                        -------------         ------
   Foamex, LP                    Priority             US$37,312
   Foamex, LP                    Gen. Unsecured           500
   Foamex International Inc.     Administrative         1,985
   Foamex International Inc.     Priority               1,077
   Foamex Capital Corporation    Administrative           264
   Foamex Capital Corporation    Priority                 144
   FMXI, Inc.                    Administrative           264
   FMXI, Inc.                    Priority                 144

In addition, the Debtors have failed to file corporate tax
reports for 2005, 2006, and 2007 through Jan. 16, 2007.  Mr.
Corbett asserts that without the filing of the tax reports, the
Court should not confirm the Debtors' Second Amended Plan.

The Revenue Department wants any order confirming the Second
Amended Plan to provide that the Plan does not compromise the
Department's rights against the Debtors' corporate officers to
seek recovery of state trust funds to the extent provided by
applicable law.

Accordingly, the Revenue Department asks the Court to deny
confirmation of the Second Amended Plan.

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  Foamex
has Asian locations in Malaysia, Thailand and China.

The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).  Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors.  As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts.  (Foamex International Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'.  The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.

The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate.  The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.


SOLUTIA INC: Wants to Sell Texas Land to Shintech Inc.
------------------------------------------------------
Solutia, Inc. and its debtor-affiliates seek permission from the
U.S. Bankruptcy Court for the Southern District of New York to
sell 482 acres of undeveloped flat land in Alvin, Texas, to
Shintech Incorporated for US$7,109,500 free and clear of liens,
claims and encumbrances.

Solutia, Inc., owns approximately 3,000 acres of land in Alvin,
Texas -- the Chocolate Bayou Property.  Solutia operates a
chemical manufacturing plant on only 300 of the 3,000 acres.  Of
the remaining 2,700 acres, 370 acres are leased to a third
party, 245 acres are covered by a reservoir and the remaining
2,085 acres are unoccupied and undeveloped flat land.

Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York,
relates that Solutia does not utilize the Unoccupied Chocolate
Bayou Property, other than for underground pipelines, above
ground transportation and for certain waste management
activities related to the operation of the Chocolate Bayou
Plant.

On Dec. 6, 2006, Solutia entered into an agreement to sell the
approximately 482 acres of undeveloped flat land in the
Chocolate Bayou Property to Shintech for US$7,109,500.

                       The Sale Process

James T. Strehl, general manager of the Basic Chemicals Group at
Solutia, relates that in April 2006, the company was approached
by an agent acting on behalf of an anonymous buyer, later
revealed to be Shintech.  Houston, Texas-based Shintech is the
largest producer of the chemical polyvinyl chloride in the
United States.  Shintech sought to purchase a parcel of the
Unoccupied Chocolate Bayou Property to construct a chemical
manufacturing plant.

Shintech is a subsidiary of the Japanese diversified chemicals
company, Shin-Etsu Chemical Co., Ltd.  Shintech initially
offered to purchase approximately 900 acres of the Unoccupied
Chocolate Bayou Property for US$6,200 per acre, for a total
purchase price of US$5,580,000.

To evaluate the offer, in July 2006, Solutia hired American
Appraisal Associates to perform an appraisal of the 900 acres of
Unoccupied Chocolate Bayou Property.  American Appraisal
submitted an appraisal report to Solutia, dated September 1,
2006, which concluded that Shintech's initial offer of US$6,200
per acre exceeded the appraised value of the land.

The Appraisal Report assumed it would take Solutia 12 to 24
months to sell the land for the appraised amount.

After the Parties executed a letter of intent and Shintech began
its due diligence, the Parties engaged in good faith, arm's-
length negotiations.  These negotiations resulted in the Parties
agreeing that Shintech would purchase only 482 acres of the
Unoccupied Chocolate Bayou Property for US$14,750 an acre, or a
total price of US$7,109,500.  The Purchase Price represents an
increase of US$8,550 per acre over Shintech's initial offer, Mr.
Henes notes.

                    The Purchase Agreement

Pursuant to the CB Land Purchase Agreement, Shintech will pay
the US$7,109,500 purchase price at closing in cash.  Shintech
also agreed to allow Solutia to continue to  run its underground
pipes and above ground transportation over the Sale Property.

Other terms of the CB Land Purchase Agreement are:

   Earnest Money: Shintech paid Solutia a US$25,000 non-
                  Refundable deposit, which will be credited
                  against the Purchase Price.  Shintech also
                  deposited US$475,000 with Stewart Title
                  Company, as Escrow Agent.  This amount will be
                  credited against the Purchase Price, or in the
                  event the Sale is not consummated, it will be
                  distributed pursuant to the terms of the
                  Escrow Agreement.

   Title/
   Permitted
   Encumbrances:   Solutia presently has and will convey to
                   Shintech good and indefeasible title to the
                   Property on the Closing Date subject only to:

                     (i) general real estate taxes for the
                         current year,

                    (ii) local, state and federal laws,
                         ordinances or governmental regulations,

                   (iii) any title matter approved, or caused,
                         by Shintech,

                    (iv) existing easements and other rights-of-
                         way affecting the Property, and

                     (v) the Ancillary Agreements.

   Covenants:      Solutia agrees to use good faith efforts to
                   obtain approval of the Sale by December 28,
                   2006.  The Parties will use good faith
                   efforts to negotiate the terms of the
                   Ancillary Agreements.

   Conditions
   to Closing:     The Conditions to Shintech's Obligation to
                   Close are typical for a transaction of this
                   type, including:

                     (i) all of Solutia's representations and
                         warranties will be true and correct,

                    (ii) no encumbrances or title defects other
                         than Permitted Encumbrances,

                   (iii) all of Solutia's covenants performed,

                    (iv) no material adverse change in the
                         condition of the Property,

                     (v) the Parties have agreed upon the terms
                         of the Ancillary Agreements, and

                    (vi) to preserve the December 29, 2006
                         closing date, an Approval Order
                         obtained by no later than December 28,
                         2006.

                   The Conditions to Solutia's Obligation to
                   Close are typical for a transaction of this
                   type, including:

                     (i) all of Shintech's representations and
                         warranties will be true and correct,

                    (ii) Shintech will have performed all
                         covenants,

                   (iii) Approval Order will be obtained by
                         March 31, 2007 and

                    (iv) the Parties will have agreed upon the
                         terms of the Ancillary Agreements.

   Proration of
   Taxes:          General real estate taxes for the current
                   year relating to the Property will be
                   allocated relating to the Property will be
                   between Solutia and Shintech based on the
                   Closing Date.

   Attorneys'
   Fees &
   Legal
   Expenses:       If either party institutes any action or
                   proceeding related to the CB Land Purchase
                   Agreement, the prevailing party is entitled
                   to receive all reasonable attorneys' fees and
                   court costs from the losing party.

   Right of
   First
   Refusal:        In the event Shintech acquires the Sale
                   Property, but does not construct a chemical
                   manufacturing facility on it and subsequently
                   decides to sell all or part of the Property,
                   it will provide Solutia the right to meet a
                   bona fide third-party offer for the purchase
                   of the Property.

Mr. Strehl relates that, because Shintech wants to promptly
begin construction of a chemical plant on the Sale Property, the
Parties agreed that time was of the essence and set a Dec. 29,
2006 closing date if the Court approves the Proposed Sale in
advance of the closing.

If Solutia cannot obtain Court approval by Dec. 28, 2006,
Shintech may terminate the CB Agreement by providing written
notice to Solutia.  If Solutia objects to the notice within five
days of receipt and provides evidence that it has made and is
continuing to make good faith efforts to obtain Court approval,
however, Solutia has until March 31, 2007, to obtain the
Approval Order.

               Sale Free of Liens & Encumbrances

Pursuant to Section 363(f) of the Bankruptcy Code, Solutia
intends to sell the Property to Shintech free and clear of
liens, claims, encumbrances and other interests, other than the
customary Permitted Encumbrances set forth in the CB Land
Purchase Agreement.

Only two parties have asserted liens on the Sale Property-
Citicorp USA, Inc., as collateral agent for the Debtors' DIP
financing lenders, and Fluor Corporation.

Citicorp has consented to the Proposed Sale as a permitted
disposition under Solutia's postpetition credit facility.

Pursuant to a Transfer Notice dated June 5, 2006, Fluor
transferred its claim to Longacre Master Fund, Ltd.  Solutia is
seeking Longacre's consent to the Proposed Sale.

In the event Longacre's Consent is obtained, Section 363(f)(2)
will be satisfied, Mr. Henes relates.  But if Longacre does not
consent, Longacre could be compelled to accept a monetary
satisfaction of their liens.  Thus, according to Mr. Henes,
Section 363(f)(5) is satisfied and any liens asserted against
the Sale Property will be adequately protected through
attachment to the net proceeds of the Proposed Sale.

                   Private Sale of Property

Pursuant to Bankruptcy Rule 6004(f)(1), sales of estate property
not in the ordinary course may be by private sale or public
auction.  Private sales by debtors outside of the ordinary
course of business are appropriate where the debtors demonstrate
that the sale is permissible pursuant to Section 363.

Based on Shintech's specific need for the Sale Property and that
the Purchase Price is significantly more than the appraised
value of the approximately 482 acres, Solutia has determined
that a private sale of the Sale Property to Shintech is in the
best interests of its estate and its stakeholders.  As a
strategic purchaser seeking to build a chemical plant, Shintech
has agreed to pay a premium for the Sale Property compared to
other potential purchasers.

Accordingly, it is unlikely that an auction of the Sale Property
would produce a higher offer, and the delay and additional costs
to conduct an auction are not necessary, Mr. Henes tells Judge
Beatty.

                       About Solutia Inc.

Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications.  Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.

The company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949).  When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts.  Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.


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

ARCHILLES PROPERTIES: Court Appoints Joint Liquidators
------------------------------------------------------
On Nov. 30, 2006, the High Court of Auckland appointed Henry
David Levin and Barry Jordan as joint and several liquidators of
Archilles Properties Ltd.

The liquidators fixed Dec. 28, 2006, as the last day for
creditors to file their claims and to establish any priority
claims they may have.

The TCR-AP has reported that on Nov. 30, 2006, the Court heard
the liquidation petition against the company.  The Commissioner
of Inland Revenue filed the petition.

The Joint and Several Liquidators can be reached at:

         Henry David Levin
         Barry Jordan
         PPB McCallum Petterson
         Level Eleven, Forsyth Barr Tower
         55-65 Shortland Street, Auckland
         New Zealand


BACCHID BENEVOLENCY: Court to Hear Liquidation Petition
-------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Bacchid Benevolency Ltd on March 15, 2007, at 10:00 a.m.

Velocity Distribution Ltd filed the petition on Nov. 22, 2006.

The solicitor for the Petitioner can be reached at:

         Malcolm Whitlock
         149 Ti Rakau Drive
         Pakuranga, Auckland
         New Zealand

                    About Bacchid Benevolency

Bacchid Benevolency Limited is an operational company, which
supports the activities of the Auckland University Students
Association Inc.

Bacchid operates a number of the catering outlets on the
Auckland Campus of University of Auckland, at Massey University
Campus Albany as well as the iconic bar "Shadows".  In 2005,
Bacchid took over the operation of StudentCard and purchased
"Romfords", the functions venue on Tamaki Drive.


BYRNE TRUST: Creditors Must Prove Debts by January 4
----------------------------------------------------
The shareholders of Byrne Trust (NZ) Ltd appointed Paul Graham
Sargison and Gerald Stanley Rea as liquidators on Nov. 30, 2006.

Accordingly, Mr. Sargison requires the company's creditors to
prove their debts by Jan. 4, 2007, or they will be excluded from
sharing in any distribution the company will make.

The Liquidators can be reached at:

         Paul Graham Sargison
         Gerald Stanley Rea
         Gerry Rea Associates
         P.O. Box 3015, Auckland
         New Zealand
         Telephone:(09) 377 3099
         Facsimile:(09) 377 3098


DEVOX SERVICES: Hearing of Liquidation Petition Set for March 8
---------------------------------------------------------------
Erin Edward Vivian -- trading as Vivian Properties -- filed a
petition to liquidate Devox Services Ltd on Nov. 16, 2006.

Accordingly, the petition will be heard before the High Court of
Auckland on March 8, 2007, at 10:00 a.m.

The solicitor for the Petitioner can be reached at:

         Weston Heys
         Glaistor Ennor
         Solicitors
         First Floor, Norfolk House
         18 High Street
         (P.O. Box 63 or D.X. C.X. 10-236), Auckland
         New Zealand


ELITE HORSE: Court Sets Liquidation Hearing on March 1
------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Elite Horse Transport Ltd on March 1, 2007, at
10:00 a.m.

Debt Recovery Group NZ Ltd filed the petition with the Court on
Nov. 22, 2006.

The solicitor for the Petitioner can be reached at:

         Malcolm Whitlock
         149 Ti Rakau Drive
         Pakuranga, Auckland
         New Zealand


H & P DEVELOPMENTS: Creditors Must Lodge Claims by Feb. 8
---------------------------------------------------------
Craig Alexander Sanson and John Howard Ross Fisk were appointed
as joint and several liquidators of H & P Developments Ltd by
the High Court on Nov. 29, 2006.

In this regard, the company's creditors are required to lodge
their claims and establish any priority claims they may have by
Feb. 8, 2007.

The Joint and Several Liquidators can be reached at:

         Craig Alexander Sanson
         John Howard Ross Fisk
         PricewaterhouseCoopers
         113-119 The Terrace (P.O. Box 243)
         Wellington
         New Zealand
         Telephone:(04) 462 7489
         Facsimile:(04) 462 7492


LEGACY MOTORS: Petition Hearing Slated for March 8
--------------------------------------------------
On Nov. 14, 2006, Oggi Advertising Ltd filed a liquidation
petition against Legacy Motors Ltd before the High Court of
Auckland.

The petition will be heard on March 8, 2007, at 10:00 a.m.

The solicitor for the Petitioner can be reached at:

         K. A. Muir
         Morgan Coakle
         Level Twelve, Gosling Chapman Tower
         51-53 Shortland Street, Auckland
         New Zealand


NATURE'S FOREST: Faces Liquidation Proceedings
----------------------------------------------
An application to liquidate Nature's Forest Products Ltd will be
heard before the High Court of Auckland on March 8, 2007, at
10:00 a.m.

Turners Auctions Ltd filed the petition with the Court on
Nov. 22, 2006.

The solicitor for the Petitioner can be reached at:

         Malcolm Whitlock
         149 Ti Rakau Drive
         Pakuranga, Auckland
         New Zealand


OSBORNE HOLDINGS: Creditors to Prove Debts by December 22
---------------------------------------------------------
On Nov. 28, 2006, the shareholders of Osborne Holdings Ltd
appointed Boris van Delden and John Trevor Whittfield as the
company's joint and several liquidators.

Accordingly, the company's creditors are required to prove their
debts by Dec. 22, 2006, or they will be excluded from sharing in
any distribution the company will make.

The TCR-AP has reported that the High Court of Auckland heard a
liquidation petition against the company on Nov. 30, 2006.  The
Commissioner of Inland Revenue filed the petition.

The Joint and Several Liquidators can be reached at:

         Boris van Delden
         John Trevor Whittfield
         McDonald Vague
         P.O. Box 6092
         Wellesley Street Post Office, Auckland
         New Zealand
         Telephone:(09) 303 0506
         Facsimile:(09) 303 0508
         Web site: http://www.mvp.co.nz


VALLEY ROYAL: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 28, 2006, shareholders of Valley Royal Farm Ltd resolved
to liquidate the company's business and appointed Nigel Hicks as
liquidator.

The Liquidator can be reached at:

         Nigel Hicks
         P.O. Box 324
         Pukekohe
         New Zealand
         Telephone:(09) 238 9219
         Facsimile:(09) 238 6826


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

METRO PACIFIC: MPIC Opens for Trading at the PSE
------------------------------------------------
On December 15, 2006, shares of Metro Pacific Investments
Corporation opened for public trading at the Philippine Stock
Exchange under the symbol "MPI".  MPIC warrants will be traded
under the symbol "MPIW".

"[The] listing of MPIC closes a year of recapitalization and
reorganization for the Metro Pacific Group, and witnesses the
birth of a new company devoted to becoming a significant
participant in the Philippine economy," MPIC Chairman Manuel V.
Pangilinan said.

As reported in the Troubled Company Reporter - Asia Pacific on
November 20, 2006, Metro Pacific Corporation advised the
Philippine Stock Exchange approved MPIC's application for, among
others:

   (a) the initial listing by way of introduction of its
       1,206,978,766 common shares with a par value of PHP1.00
       per share; and

   (b) a listing price of PHP1.00 per share.

Pursuant to and on the basis of the Revised Listing Rules of the
PSE, the listing of MPIC will necessarily result in the
withdrawal of the listing of MPC.

Accordingly, MPC asks the PSE to suspend the trading of its
shares starting 9:00 a.m., on November 23, 2005.  MPC explains
that the suspension will allow the clearing of traded shares in
time for the close of the tender offer on November 28, 2006.

Since MPC will no longer be listed on the PSE upon the listing
of MPIC, MPC's suspension remained in force for the duration.

              New Holding Company Website Launched

MPIC's new corporate website -- http://www.mpic.com.ph-- was
also launched on the same day.  The new website offers detailed
information on MPIC and its investment portfolio, and provides
the investing public with a 24-hour resource and tool to reach
MPIC officials.

                      About Metro Pacific

Metro Pacific Corporation -- http://www.metropacific.com/-- is
the flagship publicly listed investment and management company
of the First Pacific Group in the Philippines.  The Company,
which was formerly known as Metro Drug, Inc., has since then
evolved from a pharmaceutical and consumer products distribution
company into one of the country's leading corporations.

Metro Pacific has these significant subsidiaries:

   * Landco, Inc.
   * Metro Tagaytay Land Co. Inc.
   * Negros Navigation Co. Inc.
   * Lucena Commercial Land Corporation
   * First Pacific Realty Partners Corporation
   * Landco Pacific Centers, Inc.

As reported in the Troubled Company Reporter - Asia Pacific on
June 28, 2006, Marydith C. Miguel, of Sycip Gorres Velayo & Co.,
raised significant doubts on MPC's ability to continue as a
going concern after auditing the Company's annual report for the
period ended December 31, 2005.

Ms. Miguel noted in the auditors' report that MPC suffered
significant losses in prior years leading to its inability to
meet its maturing obligations, on principal and interest, to
certain third-party lenders and to a related company.  Although
the Company has generated a PHP194.26-million net income
attributable to equity holders for the year ended December 31,
2005, it continues to reflect a deficit of PHP27.5 billion as of
December 31, 2005, due to prior year's accumulated losses.

In response, the company continues to implement measures geared
towards generating liquidity to meet maturing obligations and
profitability, including debt rehabilitation activities and a
capital restructuring plan.


PHILIPPINE LONG DISTANCE: DoCoMo to Increase Shares by 3.2%
-----------------------------------------------------------
NTT DoCoMo of Japan plans to increase its stake in Philippine
Long Distance Telephone Company by 3.2% to around 9.9%, through
the acquisition of approximately six million shares worth
PHP13 billion (US$264.4 million) from an affiliate of First
Pacific, TeleGeography reports.

First Pacific is PLDT's largest shareholder, the report says.
DoCoMo expects to finalize the specific terms of the deal after
talks with the company.

DoCoMo acquired 12,633,486 PLDT shares (approximately 6.7% of
total issued and outstanding shares) from NTT Communications
Corporation in March 2006, TeleGeography recounts, noting that
DoCoMo may consider purchasing additional shares in the future.

                           About PLDT

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.  Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.


* Capital Intelligence Revises RP's Sovereign Rating Outlook
------------------------------------------------------------
Capital Intelligence Ltd has revised the outlook on the
Philippines' sovereign credit ratings to stable from negative.
At the same time the agency has affirmed the sovereign's long-
term foreign currency rating of BB- and its long-term local
currency rating of BB, as well as its short-term foreign
currency and local currency ratings of B.

The change in the outlook is in response to improving fiscal
performance and less volatile political conditions.  The
national government budget deficit has fallen steadily since
2002 and is expected to be below 2% of GDP in 2006 and 2007.
Revenue growth has picked up, following the implementation of
long-awaited value-added tax reforms and renewed efforts to
improve tax collection, and steps have been taken to strengthen
expenditure management.  Deficit reduction has contributed to a
decline in government indebtedness, with the ratio of central
government debt to GDP projected to decline to about 57% in 2007
compared to 70% in 2004.

Notwithstanding these developments, the debt burden remains
high.  Interest payments currently absorb more than one-third of
budget revenues and the government's gross financing needs
exceed 20% of GDP (including short-term debt).  Sovereign risks
continue to be mitigated, however, by adequate external
liquidity.  The current account will post its fourth straight
surplus in 2006 and should remain in positive territory in 2007.
Favorable balance of payments developments have enabled the
central bank to accumulate foreign exchange reserves, which now
exceed US$19 billion and comfortably exceed government foreign
currency debt service payments falling due within the next 12
months, as well as the country's projected gross external
financing needs for 2007 (current account position plus short-
term external debt plus amortisation on medium- and long-term
external debt).

                          *     *     *

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

On November 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.

The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.


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

APOLLO ENTERPRISES: Liquidators to Receive Claims Until Jan. 9
--------------------------------------------------------------
The shareholders of Apollo Enterprises Ltd appointed Colin Brian
Wilson as liquidator on Nov. 28, 2006.

Accordingly, Liquidator Wilson requires the company's creditors
to prove their claims by Jan. 9, 2007, for them to share in the
company's distribution.

The Liquidator can be reached at:

         Colin Brian Wilson
         Prince & Partners
         P.O. Box 3685, Auckland 1001
         New Zealand
         Telephone:(09) 379 5324
         Facsimile:(09) 307 0778
         Email: office@prince.co.nz

                     About Apollo Enterprises

Headquartered in Singapore -- Apollo Enterprises Limited -- is
engaged with hotel operations, property development, and
investment holding.  The company owns 4 hotels: Novotel Apollo
Singapore, Furama Hotel Singapore, Furama Hotel Central, and The
Grand Hyatt Taipei.  In addition, the Group has a seven-storey
commercial building, the Apollo Centre.

The Group also operates in Australia.


HEXION SPECIALTY: ACC Completes Review of Orica Acquisition
-----------------------------------------------------------
Hexion Specialty Chemicals has been notified that the Australian
Competition and Consumer Commission or ACCC has completed its
review of the company's intent to acquire the resin and
adhesives business of Orica Ltd.  The ACCC does not propose to
intervene in the transaction and has not attached any conditions
to its decision.

                          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.


MAE ENGINEERING: Changes Location of Share and Warrant Registrar
----------------------------------------------------------------
Mae Engineering Ltd disclosed that the place where the company's
Share and Warrant Registrar and Register of Members and Index is
kept has been transferred to:

         3 Church Street
         #08-01 Samsung Hub
         Singapore 049483

                     About MAE Engineering

Headquartered in Singapore, MAE Engineering Limited is engaged
in the provision of integrated electrical and mechanical
engineering services including designing, planning and
procurement.  These services are categorized into electrical
installations, mechanical installations, electrical power supply
installations, instrumentation and building automation as well
as maintaining electrical and mechanical systems.  The Group
also offers consulting and specialist services to oceanariums
and aquariums.  The Group has disposed off its prawn and fish
farming as well as edutainment businesses, after suffering
accumulated losses of SGD48 million as of September 30, 2005.
The company also suffered a liquidity crunch since September 30,
2005, when its total current liabilities of SGD23,695,000
exceeded its total current assets of SGD5,582,000.

As of March 31, 2006, the company's balance sheet showed
SGD7,404,000 in total assets and SGD27,257,000 in total
liabilities, resulting in a SGD19,853,000 stockholders' equity
deficit.


LINDETEVES-JACOBERG: Updates on Utilization of Rights Issue
-----------------------------------------------------------
Lindeteves-Jacoberg Limited disclosed that pursuant to its
undertaking of the Rights Issue completed in Nov. 2006, which
was given to the Singapore Exchange Securities Trading Limited,
the net proceeds of approximately SGD25.4 million received from
the Rights Issue have been utilized in accordance with the Offer
Information Statement dated Oct. 6, 2006, through:

     (i) the capitalization of the Loan Amount of SGD3,706,320
         or equivalent to EUR1.9 million, in lieu of payment of
         cash for subscription of all its Rights Shares
         entitlements under the Rights Issue;

    (ii) repayment of bank borrowings of approximately
         SGD3.3 million; and

   (iii) the remaining proceeds were used as general working
         capital.

                    About Lindeteves-Jacoberg

Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group.  Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.

The company is currently working out further debt restructuring
plans for its liabilities, in addition to an earlier approved
Scheme of Arrangement with its creditors.

The TCR-AP reported on Nov. 10, 2006, that the company has total
assets of US$225.52 million and US$53.23 million equity deficit
as of Nov. 9.


PETROLEO BRASILEIRO: Accelerating Ship Construction Tender
----------------------------------------------------------
Guilherme Estrella -- exploration and production director for
Petroleo Brasileiro SA, the state oil firm of Brazil -- told
Business News Americas that the company will speed up the
process to tender construction of two new ships.

BNamericas relates that Mr. Estrella said, "Last week, the
company board approved the speeding-up of the ship [projects]."

According to BNamericas, the acceleration is part of a program
to boost natural gas output.

Mr. Estrella told BNamericas that Petroleo Brasileiro will
tender one ship to transport natural gas, and another to haul
natural gas and oil.

Meanwhile, Mr. Estrella told BNamericas that Petroleo Brasileiro
is negotiating with suppliers to launch a tender to construct
the P-55 semi-submersible platform and the P-57 floating
production, storage and offloading vessel.  Petroleo Brasileiro
is appraising is the capacity of Brazilian shipyards to meet
demand for its platforms.

Published reports say that the two production units will be
tendered before the end of 2006.

Petroleo Brasileiro told BNamericas that the 180,000-barrel per
day P-55 will begin producing oil at the deepwater Roncador
field in the Campos basin in 2011.

Meanwhile, the P-57 is a 180,000 barrel per day FPSO expected to
operate in Campos' deepwater Jubarte field by 2010.

The report says that the projects will boost the Plangas program
aimed at speeding natural gas production in Brazil's
southeastern region by 24 million cubic meters per day by the
end of 2008 from 15 million cubic meters per day.

BNamericas underscores that the plan includes:

   -- reducing flaring of gas;
   -- increasing gas transport capacity;
   -- increasing output from existing fields; and
   -- speeding up the development of new fields.

                 About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded
in 1953.  The company explores, produces, refines, transports,
markets, distributes oil and natural gas and power to various
wholesale customers and retail distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Approves Petros Plan Subscription Reopening
----------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras' board of directors
approved the reopening of the subscription process for the new
Petros Plan regulation, with an extension term stipulated
through Feb. 28, 2007, and with a new minimum adhesion goal set
for 2/3 of the Petros Plan participants.

The process had been terminated as there was a mandatory
condition for massive individual participant adhesion, seeking
the near totality of the employees and assisted parties.
Adhesion had been about 53% (46% among retirees and pensioners,
and 62% of the active employees) in the process held between
July and August this year.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Authorizes Share Repurchase Program
--------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras authorized the repurchase
of its preferred shares in circulation for future cancellation,
using profit reserve resources under these conditions:

   a) Objective: Reduce excess cash flow and adjust the capital
      structure, contributing to reducing Petrobras' capital
      cost;

   b) Amount: Up to 91,500,000 preferred shares, corresponding
      to 4.9% of this class of shares currently in circulation,
      which sums up to 1,850,364,700;

   c) Price: The acquisition will be made via Stock Exchanges,
      for share market value on the acquisition dates during the
      repurchase term;

   d) Intermediating financial institutions:

      * Bradesco SA. Corretora de Titulos e Valores Mobiliarios;

      * Citigroup GMB CCTVM;

      * Citigroup Global Markets;

      * Credit Suisse Brasil SA. Corretora de Títulos e Valores
        Mobiliarios;

      * Itau Corretora de Valores;

      * JP Morgan CCVM SA;

      * JP Morgan Securities Inc.;

      * Morgan Stanley Dean Witter CTVM SA;

      * Morgan Stanley & CO. Incorporated; and

      * Santander Brasil Corretora de Titulos e Valores
        Mobiliarios;

   e) Term: Up to 365 days beginning Dec. 15, 2006.

Pursuant to its share repurchase policy, the Board of Directors
concluded that the current cash flow situation allows a program
for this purpose to be deployed without compromising the
company's investment program or substituting for dividend
payments, while preserving the operational and financial goals
set forth by the Strategic Planning.  The Board also believes
there are signs share prices are outdated, considering the
company's growth and profitability perspectives.

In the past three years, there was a marked improvement in
Petrobras' financial indicators.  The leverage index (net
indebtedness/net liabilities) in the Brazilian corporate
legislation fell from 53% in December 2002 to 17% in September
2006 (55% to 18% in the American corporate legislation), while
the Strategic Planning financial goals point to a 25% baseline
for this indicator.  This significant improvement in the
company's liquidity is also reflected by its risk classification
by Moody's.  After being reduced to the Ba2 level in August
2002, it was successively increased to Ba1 in September 2004,
and Baa2 in October 2005, a classification already considered as
investment grade.

In October 2006, the company rose US$500 million in funds in the
international market, for ten years, offering a yield of 6.185%
a year, only 1.55% above the American Government's bonds for
similar terms.  With these rates in mind, and considering the
company's growth perspectives compared with the current market
valuing of its shares, and from the viewpoint of the conditions
currently in effect and projected for the international oil
market, among other alternatives that were analyzed, the Board
of Directors considered share repurchase as the most efficacious
way to reduce Petrobras' short-term financial cost.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


SEA CONTAINERS: Wants to Employ Appleby Hunter as Special Atty.
---------------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask the Honorable
Kevin J. Carey of the United States Bankruptcy Court for the
District of Delaware for authority to employ Appleby Hunter
Bailhache as their special counsel for Bermuda legal matters,
nunc pro tunc to Oct. 15, 2006.

Edwin S. Hetherington, vice president, general counsel, and
secretary of Sea Containers Ltd., relates that Appleby has
served as the Debtors' outside Bermudian counsel on matters
including corporate and securities law and general litigation
since 1974.

Mr. Hetherington tells Judge Carey that that the firm's
professionals have become very familiar with the Debtors and
their business affairs, and have gained extensive experience in
most aspects of the Debtors' general legal work and needs.

Specifically, Appleby will:

   -- continue to advise and represent SCL in accordance to its
      prior representation; and

   -- advise and represent the Debtors with respect to SCL's
      Bermuda insolvency proceeding and other matters that may
      arise in the Debtors' Chapter 11 cases or the Bermuda
      proceeding in the ordinary course of operations.

Appleby will be paid for its services based on the firm's
customary hourly rates:

         Professionals             Hourly Rate
         -------------             -----------
         Partners                  US$400 - US$625
         Associates                US$200 - US$590
         Paraprofessionals         US$125 - US$260

The firm will also be reimbursed for necessary out-of-pocket
expenses.

Mr. Hetherington relates that Appleby has received a
replenishing prepetition retainer with a remaining balance of
US$183,856 for providing the Debtors with representation on
Bermuda legal matters prior to the Petition Date.  In addition
to the retainer, Appleby has also received US$205,941 from the
Debtors on account of services rendered regarding the Bermuda
legal matters.

Jennifer Yolande Fraser, Esq., a partner at Appleby, assures the
Court that her firm does not hold any interest adverse to
Debtors or their estates with respect to the matters on which it
is to be employed.

Ms. Fraser can be contacted at:

         Jennifer Y. Fraser, Esq.
         Appleby Hunter Bailhache
         Canon's Court, 22 Victoria Street
         P.O. Box HM 1179
         Hamilton HM EX, Bermuda
         Telephone: (441) 295-2244
         Facsimile: (441) 292-8666
         Web site: http://www.applebyglobal.com

                   About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 6; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


===============
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BLOCKBUSTER INC: Improved Cash Flow Cues S&P's Stable Outlook
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on video
rental retailer Blockbuster Inc. to stable from negative.  The
ratings on the Dallas-based company, including the 'B-'
corporate credit rating, were affirmed.

"The outlook revision is based on the company's strengthened
cash flow protection measures as a result of its cost reduction
efforts and lower advertising and promotional expenses," said
Standard & Poor's credit analyst Diane Shand.

Total debt to EBITDA declined to 5.6x in 12 months ended
Sept. 30, 2006, from 8.9x, a year earlier, and EBITDA coverage
of interest increased to 1.9x from 1.4x.  Although cash flow
protection measures are still weak, Standard & Poor's expects
further improvement in the near term due to slightly better
operating results and a reduction of debt by US$150 million.

The company's operating margin increased to 16.7% in the first
nine months of 2006, from 11.7% a year earlier.

The ratings on Blockbuster reflect the risks of operating in a
mature and declining video rental industry, the company's
dependence on decisions made by movie studios, its thin cash
flow protection measures, high leverage, and the technology
risks associated with delivery of video movies to the home.

Industry fundamentals for the video rental market, on which
Blockbuster's profitability is heavily dependent, are weak. The
company generated 71% of total sales from its movie rental
business in 2005, and its domestic rental same-store sales have
been weak since 2001.  The company was particularly hard hit in
2005 when the rental market dropped at a double-digit rate,
after steadily declining at a low-single-digit rate in the prior
three years.  The contraction in the rental market is
attributable to the elimination of exclusive movie release
rental time windows as a result of the format change to DVD from
VHS, and to studios' pricing DVDs to stimulate retail sales.

In response to weak rental industry dynamics, Blockbuster
eliminated late fees to increase customer traffic.  This move
affected revenues by US$532 million and operating income by an
estimated US$250 million-US$300 million in 2005.  In addition,
the company is attempting to transform into a home entertainment
store and has launched a national online and in-store rental
subscription program. Standard & Poor's has concerns over
whether these initiatives will revive the company's flagging
rental business.

Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia.  The company also operates
in Thailand, Taiwan and New Zealand.


DAIMLERCHRYSLER: U.S. Unit Ceases Production on Various Plants
--------------------------------------------------------------
The Chrysler Group, the U.S.-based unit of DaimlerChrysler AG,
will halt production for more than a month on some of its U.S.
plants starting Dec. 22, 2006, to cut piled-up inventory, Jeff
Bennett and Alan Ohnsman at Bloomberg News report.

According to Bloomberg, Chrysler will stop vehicle production in
its Dodge truck plants in St. Louis, Michigan, Newark, and
Delaware, minivan plants in Windsor, Ontario, and a jeep plant
in Detroit.

The company, which depends on light trucks for most of its
sales, has cut back its inventory in spite of its U.S. sales
plummeting 7.7% during November.  The company is trying to shed
off units that were not ordered by customers, Bloomberg says.

Bloomberg relates that Autodata Corp. stated that light truck
sales dropped 5.6%.  Large pickup truck sales also dropped 9.1%
from last year.  In addition, gasoline prices that stayed up for
US$3 a barrel for most of the year contributed to declining
sales.

Bloomberg adds that in the second quarter of 2006, Chrysler had
planned to cut North American production by 16%.

                         Inventory Plans

Automotive News, a Detroit trade publication, has reportedly
said that Chrysler had an 81-day supply of light trucks, instead
of the standard 60 days.  Joe Eberhardt told Bloomberg in an
interview that the company's inventory of unsold vehicles was in
the low "500,000s".

Chrysler will have some plants that will suspend its operations
longer than the planned duration, while other Chrysler
facilities will be operating longer than usual due to the demand
for certain vehicles, Frank Klegon, Chrysler product development
head, informed Bloomberg.

                     About DaimlerChrysler

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles and
Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep and Dodge brand names.  It also sells parts and accessories
under the MOPAR brand.

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

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


DAIMLERCHRYSLER: Unit Ordered to Pay US$350MM in U.S. Fraud Case
----------------------------------------------------------------
The Multnomah County Circuit Court has ordered DaimlerChrysler
North American Holding Corp. and its heavy truck subsidiary,
Freightliner LLC, to pay US$350 million in damages in connection
with a multinational fraud case, CNNMoney reports.

The Court found DaimlerChrysler liable for US$280 million of the
punitive damages, with the remaining US$70 million asserted
against Freightliner, reports say.  The Oregon Court found that
Freightliner transferred assets between its divisions in an
effort to avoid a legal judgment.

The U.S. Court's ruling follows a British Court order handed
down last year compelling Freightliner to pay approximately
US$489 million to German truck maker MAN AG, CNNMoney adds.

DaimlerChrysler intends to appeal the jury ruling.  A company
spokeswoman has reiterated that Freightliner had never sought to
hide assets from MAN.

                     About DaimlerChrysler

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

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

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


FEDERAL-MOGUL: Court OKs Inter-company Equity Interest Transfers
----------------------------------------------------------------
Federal-Mogul Corporation and its debtor-affiliates were granted
approval by the U.S. Bankruptcy Court for the District of
Delaware for the inter-company transfers of equity interests in
Federal-Mogul Holding Deutschland GmbH and certain Mexican
subsidiaries to Cooperatief Federal-Mogul Dutch Investments
U.A., a non-Debtor subsidiary.

The equity interests are currently held either directly by
Debtors Federal-Mogul Corporation, FM International LLC, and
Federal-Mogul Ignition Company, or indirectly through their non-
debtor affiliates.

The proposed Transfers are part of an international
restructuring that the Debtors intend to consummate before year-
end to maximize the tax-efficiency of their corporate structure
going forward.

The restructuring will ultimately result in many of the Debtors'
foreign subsidiaries being owned through the F-M Dutch HoldCo
structure.  F-M Dutch HoldCo, which was formed in connection
with the Court-authorized French and Italian Recap, is a Dutch
holding company with no current material liabilities and whose
only significant assets are its indirect equity holdings in
Federal-Mogul Holding Italy S.r.L.

The Transfers will result in an estimated annual tax savings
aggregating US$28,000,000, and will preserve a larger portion of
post-tax funds that are repatriated through the F-M Dutch HoldCo
structure.

                         German Transfers

F-M Germany is currently a wholly owned subsidiary of Federal-
Mogul Corp., and is the parent of a number or subsidiaries that
constitute about 60% of the Debtors' operations in Europe.

The Debtors proposed to transfer ownership of F-M Germany from
Federal-Mogul Corp., resulting in F-M Dutch HoldCo directly
holding a 90% equity interest in F-M Germany with the remaining
10% held indirectly through a newly formed German partnership.

The German Transfer allows the Debtors to effectuate their
international restructuring and move funds up the corporate
ownership chain to their United States parent companies.

The German Transfer must be completed by the end of 2006 to
allow the Debtors to take advantage of a number of beneficial
tax attributes that are anticipated to result in an aggregate
tax savings of approximately US$26,000,000.

                        Mexican Transfers

The Debtors' Mexican operations consist of 10 directly and
indirectly held subsidiaries.  None of the Mexican subsidiaries
are Debtors in the Chapter 11 proceedings.

Servicio de Componente Automotrices, S.A. de C.V., is the
principal holding company for the Mexican businesses.  The
current shareholders of SEDECA are:

   (1) Debtor F-M International with a current interest of
       25.52% interest in SEDECA;

   (2) Debtor F-M Ignition with a 70.74% interest in SEDECA; and

   (3) non-Debtor Federal-Mogul Canada Ltd., which is wholly
       owned by Federal-Mogul Corp., with a 3.74% interest in
       SEDECA.

SEDECA directly or indirectly holds 100% of all of the SEDECA
Subsidiaries except:

   * Servicios Administrativos Industriales, S.A. de C.V.;

   * Camshafts Castings de Mexico S. de R.L.; and

   * Federal-Mogul S.A. de C.V.

The Debtors proposed to transfer the equity interests of SEDECA
and SAISA to F-M Dutch HoldCo, which will permit the Debtors to
avail themselves of certain tax advantages under Dutch and
Mexican law.

As part of the Mexican Transfer, the shareholders of the Mexican
Subsidiaries will indirectly contribute their ownership
interests in the Mexican Subsidiaries to F-M Dutch HoldCo in
exchange for equity interests in F-M Dutch HoldCo.

The Mexican Transfer is part of the Debtors' overall tax
planning efforts to reduce the tax liability related to their
Mexican operations.  The Debtors estimate that the Mexican
Transfers will result in an ownership structure that will confer
a net US$2,000,000 annual savings in taxes.

Scotta E. McFarland, Esq., at Pachulski Stang Ziehl Young Jones
& Weintraub LLP, in Wilmington, Delaware, explained that by
easing the movement of funds in a more tax-efficient structure,
the Transfers will ultimately enable the Debtors to deploy their
cash in the most efficient manner including paying down certain
of their existing inter-company indebtedness, while
simultaneously reducing the amount of cash the Debtors will be
required to draw down for working capital purposes under the
proposed exit financing facility.  In addition, the Transfers
will serve to help preserve any of the Debtors' existing NOLs.

Following the Transfers, the Debtor Shareholders that currently
hold direct equity interests in the Restructuring Entities, will
own equivalent ownership interests in F-M Dutch HoldCo, which
will own the Restructuring Entities.  Thus, the Transfers, which
will not involve the actual movement of any of the Debtors'
cash, will have an economically neutral impact on the Debtors'
overall equity structure.

F-M Dutch HoldCo and its subsidiary holding companies will
remain holding companies with:

     (i) no third-party liabilities;

    (ii) certain permitted inter-company loans; and

   (iii) equity interests in the various Federal-Mogul foreign
         subsidiaries as their only significant assets.

Accordingly, the Transfers should have a minimal impact on the
Debtors' rights to their ultimate equity interests in the
Restructuring Entities and, correspondingly, will not adversely
impact the Debtors' creditors, Ms. McFarland tells the Court.

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's
largest automotive parts companies with worldwide revenue of
some US$6 billion.  In the Asian Pacific region, the company has
operations in Malaysia, Australia, China, India, Japan, Korea,
and Thailand.

The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities.  Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.


OMNOVA SOLUTIONS: Fitch Affirms Issuer Default Ratings at B+
------------------------------------------------------------
Fitch Ratings affirmed the credit ratings for OMNOVA Solutions
Inc.:

   -- Issuer Default rating at B+;
   -- Senior secured credit facility at BB+/RR1; and
   -- Senior secured notes at B+/RR4.

The Rating Outlook is Stable.  These rating actions affect
US$165 million in public securities and the company's US$72
million senior secured credit facility.

OMNOVA's credit ratings are supported by its small company size,
relatively high debt level, and weak, though improving,
operating performance.  The company's size has declined and its
product portfolio has become more limited upon the divestiture
of its roofing business in late September 2006 for approximately
US$40 million cash.

The opportunistic sale monetized a small contributor to sales
and operating income while removing warranty liabilities from
the balance sheet.  However, Fitch notes that resulting lower
revenue and earnings levels make OMNOVA more susceptible to
default risk when business conditions weaken.

Total debt-to-operating EBITDA remains high at 3.6 times with
US$165 million 11.25% notes representing the majority of the
outstanding debt.  These notes may be refinanced in 2007 after
its call date at June 1 as the company tries to reduce future
interest expense.  The remaining portfolio has shown mixed
results in 2006 so far.

The Decorative Products segment began to contribute profit,
although at very low levels, while the Performance Chemicals
segment exhibited weaker margin and lower profit on lower
volumes.  Despite weaker profitability, Performance Chemicals
continues to be the company's largest contributor to earnings.
That OMNOVA's stronger segment is presenting some weakness is a
near-term concern.

The Stable Rating Outlook reflects Fitch's view that operating
performance and credit measures are expected to change modestly
from current levels near term.  Fitch expects Performance
Chemicals to stabilize or possibly weaken if carpet demand
remains weak and raw material prices soften with energy prices
near term.  Fitch also expects Decorative Products to weaken
slightly if office vacancy rates increase in 2007 and a weaker
U.S. economy stems refurbishment activity, resulting in slower
wallcovering and laminate demand.

OMNOVA Solutions Inc. is a specialty chemical producer based in
Fairlawn, OH.  The company has leading positions in styrene-
butadiene latex production, vinyl wallcovering, coated fabrics
and decorative laminates.  For the last 12 months ended
Aug. 31, 2006, the company had operating EBITDA of US$50.1
million on sales of US$812.2 million unadjusted for the recent
divestiture.

OMNOVA Solutions Inc. - http://www.omnova.com-- is a producer
of emulsion polymers and specialty chemicals, decorative and
functional surfaces and single-ply roofing systems for a variety
of commercial, industrial and residential end uses. OMNOVA
operates in three business segments: Performance Chemicals,
Decorative Products and Building Products. During the fiscal
year ended November 30, 2005 (fiscal 2005), revenue from
Performance Chemicals segment, Decorative Products segment and
Building Products segment represented approximately 55.9%, 29.9%
and 14.2%, respectively. The company has over 1,800 customers
that rely on over 1,000 OMNOVA products. OMNOVA utilizes 15
manufacturing, development and design facilities in North
America, Europe and Asia to service its broad customer base

The company has operations in China and Thailand.



                            *********

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
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