TCRAP_Public/070109.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

            Tuesday, January 9, 2007, Vol. 10, No. 6

                            Headlines

A U S T R A L I A

BAE SYSTEMS: Members' Final Meeting Slated for January 16
CALL-OUT MOBILE: Commences Wind-Up of Operations
CHATTEM INC: Gets US$300 Mil. Term Loan from Amended Credit Pact
CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands
FAIREY AUSTRALASIA: Members to Hear Liquidator's Report

G S L HOLDINGS: Final Meeting Scheduled for January 25
GLOBAL ENGINEERED: Ajax Workers Accept Specifix Takeover
HAWKESBURY COMMUNITY: Members to Receive Wind-Up Report
ILLUMINATION ON: Cromwell Appoints Receiver and Manager
NORODS AUSTRALIA: Members & Creditors to Receive Wind-Up Report

TOSCALA PTY: Members Resolve to Close Business
WORKS AUTO: Enters Wind-Up Proceedings
ZAPS & SONS: Park and Buckby to Act as Receiver and Manager


C H I N A   &   H O N G  K O N G

AVANTICORP HONG KONG: To Hold Members' Final Meeting on Jan. 23
CITIC BANK: Turns into a Joint-Stock Company, Changes Name
CITIC PACIFIC: Pushes Through with Pilbara's Iron Ore Project
FIAT SPA: Board of Directors Reviews 2007 Budget
FIAT SPA: Sells Ingest Facility to Pirelli RE Facility Mgt

FIAT SPA: Train Unit Partners with Severstal-Auto in Russia
GALLERY OF CONTEMPORARY: Members' Final Meeting Set for Jan. 23
GLOBAL POWER: Equity Panel Hires Houlihan Lokey as Fin'l Advisor
GLOBAL POWER: Court Okays Blackstone Group as Financial Advisor
GLOBAL POWER: Wants General Claims Bar Date Set for April 18

GOLD MOUNTAIN: Appoints Inspection Committee and Liquidators
HANG CHE: Shuts Down Business Operations
H.E.A. (INVESTMENTS): Enters Wind-Up Proceedings
INTERGEN (HK): Members Appoint Gilligan as Liquidator
NEW MILLENIUM: Appoints Chan Lap Tat Dickman as Liquidator

OCEAN ENVIRONMENTAL: Members & Creditors to Hear Wind-Up Report
PARKWAY HOLDING: Creditors Must Prove Debts by January 26
WORKPLACE COMPANY: Annual Meetings Slated for January 23
YMT OVERSEAS: Members Pass Resolution to Wind Up Firm
* Authorities Take Control of Two Insolvent Banks


I N D I A

AMERICAN AXLE: To Release 4Q & Full Year 2006 Results on Feb. 2
EASTMAN KODAK: Inks Agreements with Sony; Ends Patent Dispute
GENERAL MOTORS: Asia-Pacific Sales in 2006 Up 17.9%
GENERAL MOTORS: Says Highland Offer Could Delay Delphi Deal
GENERAL MOTORS: Awards Lithium ION Battery Development Contracts

IFCI LTD: Government Considers Proposal to Bring in Investor
INDIAN OIL: Fitch Gives BBB- Long-term Foreign Currency Rating
INDIAN OIL: Signs Rural Co-Marketing Deal with Indo Gulf
INDIAN OIL: Successfully Liquidates INR806-Crore Oil Bonds
JAMMU & KASHMIR: Board to Consider Q3 Results on Jan. 15

JAMMU & KASHMIR: Offers Microfinance to Small Entrepreneurs
KARNATAKA BANK: Enters Financing Pact with Sun Technics
OWENS CORNING: Court Okays Stipulation Resolving Mayer's Claim
OWENS CORNING: Wants Burchfield Whitmire Settlement Approved


I N D O N E S I A

BANK INDONESIA: To Focus 2007 Policies on Banking Consolidation
GARUDA INDONESIA: Hopes to Complete Restructuring in June 2007
GOODYEAR TIRE: Fitch Affirms B Issuer Default Rating
GOODYEAR TIRE: S&P Holds Rating on US$46 Mil. Certificates at B-
INDOSAT: Expects Subscriber Number to Rise 37% in 2007


J A P A N

FORD MOTOR: Changan Ford Mazda Automobile Sets All Time Records
FORD MOTOR: Teams Up with Microsoft for In-Car Digital System
NIKKO CORDIAL: Seeks Short-Term Funding from Mizuho Corporate
NOVOLIPETSK STEEL: Earns RUR2.07 Billion in Stake Disposals
SANYO ELECTRIC: Partners with Animon for Wireless HD Projector


K O R E A

BIOVEST INTERNATIONAL: Aidman Piser Raises Going Concern Doubt
DURA AUTOMOTIVE: Seeks Court Nod for Lease Rejection Procedures
DURA AUTO: Intercompany Claims Tagged as Admin. Priority Expense
DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent
LG TELECOM: FTC Says "Giboon Zone" Service Not Discriminatory

NACF: Moody's Maintains 'D-' Bank Financial Strength Rating


M A L A Y S I A

ARK RESOURCES: Court Extends Restraining Order until May 3
ARK RESOURCES: Updates on Default Payment as of End-December '06
CYGAL BERHAD: Seeks Extension to Execute Corporate Exercises
UNITED CHEMICAL: Agreed to Further Extend CRA Completion Date
WEMBLEY INDUSTRIES: No Change on Payment Default Status


N E W   Z E A L A N D

AIR NEW ZEALAND: Analyst Upgrades Profit Forecast, Report Says
AUTOMATIC MACHINING: Shareholders Opt to Wind Up Operations
EAST TAIERI: Shareholders Opt to Liquidate Business
G & M COCKS: Members Resolve to Wind Up Firm
J W DEVELOPMENTS: Shareholders Decide to Wind Up Operations

PATTERSON CONSULTING: Commences Liquidation Proceedings
PRESTIGE VEHICLE: Enters Liquidation Proceedings
SILVERDALE MARINE: Liquidator to Receive Claims Until Jan. 31


P H I L I P P I N E S

AMKOR TECHNOLOGY: Faces Amended Pa. Securities Fraud Complaint
BANK OF THE PHIL. ISLANDS: Sells FEB Shares for PHP503.8 Million
BAYAN TELECOMMUNICATIONS: Earns PHP1 Bil. in 2006 9-Month Period
CE CASECNAN: Third Quarter Revenue Up to US$12.9 Million
MANILA ELECTRIC: Will Raise Power Rates This Month

PILIPINO TELEPHONE: Debt Prepayment Ups Net Income to PHP8.5BB
PREMIERE ENTERTAINMENT: Nine-Month Net Loss Down to PHP1.04 Mln.
PRYCE CORPORATION: Registers 3rd Qrtr Net Loss of PHP41.84 Mil.
STENIEL MFG.: Records PHP44MM Net Loss in the 2006 3rd Quarter
SWIFT FOODS: Nine-Month Net Income Reaches PHP40 Million

UNIOIL RESOURCES: Sept. 30 Bal. Sheet Upside-Down By PHP570 Mil.
VITARICH CORP: Posts PHP4.8MM Income for 2006 Third Quarter
VULCAN INDUSTRIAL: Posts Nine-Month Net Loss of PHP1.89 Million
WELLEX INDUSTRIES: Posts Nine-Month Net Loss of PHP29.8 Million
WISE HOLDINGS: Sept. 30 Bal. Sheet Upside-Down by PHP687.5 Mil.

ZIPPORAH REALTY: Posts PHP18.31-Million Nine-Month Net Loss
* Domestic Liquidity Growth Continues in November
* Inflation Eases Further to 4.3% in December


S I N G A P O R E

CKE RESTAURANTS: Repurchases 2 Mil. Shares from Pirate Capital
COMPACT METAL: Members Pass All Resolutions at EGM
COMPACT METAL: Posts Shareholders' Change of Interests
COMPACT METAL: Register and Transfer Books to Close on Jan. 22
L&M GROUP: Judicial Management Order Extended for 180 Days

SEAGATE TECH: To Invest US$272 Million for Substrate Facility


T H A I L A N D

ABICO HOLDINGS: Seeks Extension for Financial Reports Revisions
G STEEL: Benayon Files Resignation from Board

     - - - - - - - -

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

BAE SYSTEMS: Members' Final Meeting Slated for January 16
---------------------------------------------------------
The final meeting for the members of Bae Systems Australia
Properties Pty Ltd will be held on Jan. 16, 2007, at 10:10 a.m.,
to consider the liquidator's account of the company's wind-up
proceedings.

According to the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of its operations on Jan. 19, 2006.

The liquidator can be reached at:

         Anthony Stevens Smith
         Ernst & Young
         Level 21, 91 King William Street
         Adelaide, South Australia 5000
         Australia
         Telephone:(08) 8233 7111


CALL-OUT MOBILE: Commences Wind-Up of Operations
------------------------------------------------
At a meeting held on Dec. 6, 2006, the members and creditors of
Call-Out Mobile Mechanics (Perth) Pty Ltd resolved to
voluntarily wind up the company's operations and appointed
Dougal McLay as liquidator.

The Liquidator can be reached at:

         Dougal McLay
         summerscorporate
         Level 5, Next Building
         16 Milligan Street
         Perth, Western Australia 6000
         Australia

                      About Call-Out Mobile

Call-Out Mobile Mechanics (Perth) Pty Ltd is engaged with
general automotive repair shops.

The company is located in Western Australia, Australia.


CHATTEM INC: Gets US$300 Mil. Term Loan from Amended Credit Pact
----------------------------------------------------------------
Chattem, Inc., as borrower, entered into a Fifth Amendment to
Credit Agreement with Signal Investment & Management Co.,
Sundex, LLC and Chattem (Canada) Holdings, Inc., as guarantors,
the persons identified as lenders and Bank of America, N.A., as
agent for the Lenders, pursuant to which, among other things,
the Lenders have agreed to make a US$300 million term loan.

The Term Loan is for the financing of part of the acquisition of
the U.S. rights to certain brands currently owned by Johnson &
Johnson and previously owned by the consumer healthcare business
of Pfizer Inc., including ACT(R), Unisom(R), Cortizone,
Kaopectate(R) and Balmex(R).

The Acquisition was expected to close on Jan. 2, 2007.  The
Amendment amends in its entirety the Credit Agreement dated as
of Feb. 26, 2004, by and among the company, the Domestic
Subsidiaries, the Lenders and the Agent.  The Amendment was
expected to become effective on Jan. 2, 2007, in connection with
the consummation of the Acquisition, which, among other
customary closing conditions, is a condition to the funding of
the Term Loan.

The total amount of the revolving loan commitments under the
Amended Credit Agreement remains unchanged at US$100 million.
The Amended Credit Agreement includes an "accordion" feature
that
permits the company under certain circumstances to increase the
Revolving Committed Amount by US$50 million and, pursuant to the
Amendment, to borrow an additional US$50 million as a term loan.
Under the Amended Credit Agreement, borrowings with respect to
the revolving loans bear interest at LIBOR plus applicable
percentages of 1% to 2% or a base rate plus applicable
percentages of up to 0.5% and, for the Term Loan, a percentage
per annum equal to LIBOR plus 1.75% for Eurodollar Loans or the
base rate plus 0.75% for Base Rate Loans.

Under the terms of the Amended Credit Agreement, the company is
required to make equal quarterly installments of US$750,000
toward repayment of the principal amount of the Term Loan
beginning on June 30, 2007, and terminating on January 2, 2013,
at which time the outstanding principal balance will be due in
full.  The entire outstanding principal balance of all revolving
loans, together with accrued but unpaid interest and all other
sums owing thereto, will be due and payable in full on Nov. 15,
2010.

The Amendment amends the terms of certain financial covenants of
the company under the Amended Credit Agreement, including the
minimum fixed charge coverage ratio, the maximum leverage ratio,
the maximum senior secured leverage ratio and the minimum brand
value.  Otherwise, the Amended Credit Agreement contains
customary covenants that are substantially the same as those
existing prior to the Amendment.  Likewise, the Amended Credit
Agreement contains customary events of default, which are
substantially the same as those existing prior to the Amendment.

A copy of the Fifth Amendment may be viewed at no charge at:

              http://ResearchArchives.com/t/s?17e2

Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) --
http://www.chattem.com/-- manufactures and markets a variety of
branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products.  The
company's products include Icy Hot(R), Gold Bond(R), Selsun
Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).

Chattem has operations in Australia, the United Kingdom, and
Puerto Rico.

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 5, 2006
Moody's Investors Service confirmed the Ba3 corporate family
rating of Chattem Inc. and lowered the senior subordinated
rating to B2 from B1.  Moody's said the outlook is stable.


CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands
--------------------------------------------------------------
Chattem Inc. closed its previously announced agreement to
acquire the U.S. rights to five leading consumer and over-the-
counter brands from Johnson & Johnson for US$410 million in
cash.

With the acquisition, Chattem's diverse portfolio of high
quality brands has now been expanded to include five additional
brands:

   * ACT(R), an anti-cavity mouthwash/mouth rinse;
   * UNISOM(R), an OTC sleep aid;
   * CORTIZONE, a hydrocortisone anti-itch product;
   * KAOPECTATE(R), an anti-diarrhea product; and
   * BALMEX(R), a diaper rash product.

The acquired brands were divested in connection with the recent
acquisition by Johnson & Johnson of Pfizer Inc.'s Consumer
Healthcare business and certain regulatory requirements in
connection with that acquisition.

"We are very excited to add these leading brands to the
Company's existing portfolio of quality products," said Zan
Guerry, Chairman and Chief Executive Officer of Chattem.  "With
the tremendous cooperation of Johnson & Johnson and Pfizer Inc.,
we have worked very hard over the past several months to help
ensure a smooth transition of ownership and remain very excited
about the growth potential of these brands."

The acquisition was funded in part with the proceeds from a new
US$300 million term loan provided by Bank of America pursuant to
a Fifth Amendment to and restatement of its Credit Agreement,
with the remaining funds principally being provided through the
use of a portion of the proceeds derived from Chattem's
previously announced sale of 2% Convertible Senior Notes due
2013.

Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) --
http://www.chattem.com/-- manufactures and markets a variety of
branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products.  The
company's products include Icy Hot(R), Gold Bond(R), Selsun
Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).

Chattem has operations in Australia, the United Kingdom, and
Puerto Rico.

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 5, 2006
Moody's Investors Service confirmed the Ba3 corporate family
rating of Chattem Inc. and lowered the senior subordinated
rating to B2 from B1.  Moody's said the outlook is stable.


FAIREY AUSTRALASIA: Members to Hear Liquidator's Report
-------------------------------------------------------
The members of Fairey Australasia Pty Ltd will meet for their
final meeting on Jan. 16, 2007, at 10:00 a.m., to hear
Liquidator Smith's report of the company's wind-up proceedings.

The Troubled Company Reporter - Asia Pacific previously reported
that the company declared a final dividend on March 31, 2006.

The Liquidator can be reached at:

         Anthony Stevens Smith
         Ernst & Young
         Level 21, 91 King William Street
         Adelaide, South Australia 5000
         Australia
         Telephone:(08) 8233 7111

                    About Fairey Australasia

Fairey Australasia Pty Ltd is involved in equipment rental and
leasing.

The company is located in South Australia, Australia.


G S L HOLDINGS: Final Meeting Scheduled for January 25
------------------------------------------------------
The final general meeting of the members and creditors of G S L
Holdings Pty Ltd will be held on Jan. 25, 2006, at 2:30 p.m., to
consider the liquidator's wind-up report.

As reported by the Troubled Company Reporter - Asia Pacific, the
members and creditors of the company met on Oct. 31, 2006, and
received a wind-up report from the liquidator.

The liquidator can be reached at:

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


GLOBAL ENGINEERED: Ajax Workers Accept Specifix Takeover
--------------------------------------------------------
On December 18, 2006, the Troubled Company Reporter - Asia
Pacific reported that a division of Global Engineered Fasteners
-- Ajax Engineered Fasteners -- went into liquidation, leaving
189 people unemployed.

A follow-up report from the Australian Associated Press relates
that on December 22, 2006, Australian Workers Union Victorian
secretary Cesar Melham disclosed that an in-principle agreement
was reached with Specifix Fasteners Pty Ltd for it to acquire
the plants, equipment, and intellectual property owned by Ajax
Fasteners.

Former Ajax workers have voted unanimously to accept the
proposed takeover deal, reports say, noting that Ajax Fasteners
was expected to re-open on January 1, 2007, under the agreement.

According to Mr. Melham, through the deal, about 60 or 70 of
Ajax's former staff will be re-hired by Specifix.

Those rehired will be able to keep their redundancy payout, The
Age says.

As a separate company, Specifix would rehire the staff and any
rehired workers would be able to keep their redundancy payments,
Mr. Melahm explained.

Mr. Melham further revealed that plans for a total of
AU$5.68 million in redundancy payments to be released to former
Ajax staff would go ahead.

Mr. Melham also noted that the former Ajax staff would also be
paid for outstanding overtime, which they had not received under
the redundancy payout.

There was written confirmation from all stakeholders that the
deal with Specifix should go ahead, the paper cites Mr. Melham,
as saying.

"The lawyers are drafting the final paperwork, the actual sale
contract.  Until that is actually signed, sealed and delivered,
this one is not over," Mr. Melham said.

Stephen Longley from Ajax's liquidator, PricewaterhouseCoopers,
said the deal was the "best offer on the table" and should be
accepted, the AAP relates

                           About GEF

Based at the Ajax plant in Braeside, Victoria, Global Engineered
Fasteners -- http://www.ajaxfast.com.au/-- wholly owns Ajax
Engineered Fasteners.  GEF also owns the full-service automotive
supplier Global Automotive Logistics.  Allen Capital Private
Equity and a team of company directors jointly own GEF.  GEF was
established in 2004 to acquire the assets of Ajax EF and GAL
from the Nylex Group.

GEF supplies customers, including GM Holden, Pacifica Group, and
Textron, with nuts and bolts for engines and suspension parts as
well as fasteners for other vehicle parts.

The Troubled Company Reporter - Asia Pacific reported on Aug. 9,
2006, that Allen Capital, the private equity owner of Global
Engineered Fasteners, called in administrators to try to
engineer a turnaround after the Company's battle with rising
costs and falling volumes failed.  The report noted that the
action was due to the Company's more than AU$5 million in debt
and the inability to convince Holden and brakes-maker Pacifica
to agree to price rises.

The directors of GEF appointed Stephen Longley and David McEvoy,
of PricewaterhouseCoopers, as the Company's voluntary
administrators.

The TCR-AP then reported on Dec. 18, 2006, that Ajax Engineered
Fasteners has gone into liquidation after a meeting of its
creditors.


HAWKESBURY COMMUNITY: Members to Receive Wind-Up Report
-------------------------------------------------------
The members of Hawkesbury Community And RSL Homes Ltd will meet
on Jan. 25, 2007, at 11:30 a.m., to receive a report regarding
the company's wind-up proceedings and property disposal
exercises from Liquidator Robert Brennan.

As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced liquidation proceedings on Oct. 27, 2005.

The Liquidator can be reached at:

         Robert Brennan
         R T Hospitality Solutions
         Suite 71, 14 Narabang Way
         Belrose, New South Wales 2085
         Australia
         Telephone:(02) 9986 3166


ILLUMINATION ON: Cromwell Appoints Receiver and Manager
-------------------------------------------------------
Cromwell Corporation Ltd and Cromwell Capital Ltd appointed
Robert Hutson and David John Winterbottom as receiver and
manager of the property of Illumination On Regent Pty Ltd on
Dec. 11, 2006.

The Receiver and Manager can be reached at:

         Robert Hutson
         David John Winterbottom
         KordaMentha
         22 Market Street
         Brisbane, Queensland 4000
         Australia


NORODS AUSTRALIA: Members & Creditors to Receive Wind-Up Report
---------------------------------------------------------------
The members and creditors of Norods Australia Pty Ltd will meet
on Jan. 19, 2007, at 10:30 a.m., to receive a report of the
company's wind up proceedings from Liquidator C. M. Williamson.

According to the Troubled Company Reporter - Asia Pacific, the
members and creditors of the company received a liquidation
report on Nov. 7, 2005.

The Liquidator can be reached at:

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


TOSCALA PTY: Members Resolve to Close Business
----------------------------------------------
The members of Toscala Pty Ltd met on Dec. 8, 2006, and resolved
to close the company's business.

In this regard, Mervyn J. Kitay was nominated to act as
liquidator.

The Liquidator can be reached at:

         Mervyn Jonathan Kitay
         Grant Thornton Western Australia Partnership
         Level 6, 256 St Georges Terrace
         Perth, Western Australia 6000
         Australia

                             About Toscala Pty

Toscala Pty Ltd -- trading as Cadsult -- is involved with
engineering services.

The company is located in Western, Australia, Australia.


WORKS AUTO: Enters Wind-Up Proceedings
--------------------------------------
On Nov. 24, 2006, the members and creditors of Works Auto
Accessories Pty Ltd met and resolved to voluntarily wind up the
company's operations.

Dougal McLay was consequently appointed as liquidator.

The Liquidator can be reached at:

         Dougal McLay
         summerscorporate
         Level 5, Next Building
         16 Milligan Street
         Perth, Western Australia 6000
         Australia


ZAPS & SONS: Park and Buckby to Act as Receiver and Manager
-----------------------------------------------------------
On Dec. 6, 2006, Illawong Beach Pty Ltd and Pregage Pty Ltd
appointed John Richard Park and Richard William Buckby as
receiver and manager of the assets and undertakings of Zaps &
Sons Pty Ltd.

The Receiver and Manager can be reached at:

         John Richard Park
         Richard William Buckby
         c/o Korda Mentha
         22 Market Street, Brisbane
         Australia


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

AVANTICORP HONG KONG: To Hold Members' Final Meeting on Jan. 23
---------------------------------------------------------------
Avanticorp Hong Kong Ltd will hold a final meeting for its
members on Jan. 23, 2007, at 11:00 a.m., to consider Liquidator
Rainier Hok Chung Lam's report on the company's wind-up
proceedings.

The Liquidator can be reached at:

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


CITIC BANK: Turns into a Joint-Stock Company, Changes Name
----------------------------------------------------------
China's CITIC Bank has been transformed into a joint-stock
company and is likely to list this year, Xinhuanet News reports.
In addition, the bank will now be called CITIC Bank Co., Ltd.

According to the report, the State Administration for Industry
and Commerce issued the previously wholly state-owned bank with
a new business license, which reflects solid progress in the
bank's corporate governance and lays the foundation for stable,
healthy development in the future.

Xinhuanet recounts that CITIC Bank, submitted its share reform
plan to the State Council in May 2005.  Its president Chen
Xiaoxian has said the bank will list in Hong Kong early this
year and later on mainland stock markets.

                          *     *     *

China CITIC Bank is a wholly owned subsidiary of the state
conglomerate Citic Group.  The Troubled Company Reporter - Asia
Pacific on Nov. 27, 2006, reported that Banco Bilbao Vizcaya
Argentaria entered into an agreement to buy 5% stake in China
CITIC Bank for EUR501 million.

On September 11, 2006, Fitch Ratings affirmed the Individual D/E
and Support 3 ratings of China CITIC Bank.  The ratings outlook
is stable.

China CITIC Bank's Individual rating reflects its strengthened
financial profile, bolstered by recent capital injections from
its parent, CITIC Group, and the introduction of much-improved
risk management systems.

With 416 branches, CITIC Bank had total assets of CNY689.5
billion at the end of September, 11.84 percent up on the end of
2005.

It raked in a pre-tax profit of CNY5.7 billion from January to
September last year, with its non-performing loan ratio down to
2.79% and a capital adequacy ratio of 9.18%.


CITIC PACIFIC: Pushes Through with Pilbara's Iron Ore Project
-------------------------------------------------------------
Seen as a move to escape their dependence on Brazil's mining
giants, CITIC Pacific is pushing full steam ahead with its plans
for a US$2.5 billion Cape Preston iron ore project in the
Pilbara, The Age reports.

The Age recounts that in July, Citic Pacific paid Australian
businessman Clive Palmer AU$290 million in cash for the initial
mining rights to 1 billion tonnes of magnetite at its Balmoral
deposits, south of Cape Preston, where it plans to build Western
Australia's first magnetite mining and processing venture by
2010.

Part of the mining right is an option for Citic Pacific to mine
up to 6 billion tones, the paper says.

Citic Pacific managing director Henry Fan, told the paper that
the company had been working at Cape Preston since the deal was
struck, with intensive drilling under way to confirm reserves
before a decision to exercise its rights to a second billion
tonnes.

As a proof, Mr. Fan revealed Citic had locked in a long-term
financing agreement to develop the project and had selected its
lead construction contractor, The Age relates.

Under Citic's agreement with Mr. Palmer's private Mineralogy
group, it must pay another US$200 million in July for the rights
to the second billion tonnes.  It can also take up the rights to
another 4 billion tonnes in US$200 million installments in
subsequent years, The Age reveals.

The financing was for 100% of the project cost on a 25-year
basis from a mainland Chinese bank, Mr. Fan said.  Citic
expected to bring in a mainland steel producer as a 50% partner,
but would retain control, The Age notes.

Citic has previously forecast the cost of the initial magnetite
mine, concentrator and pellet plant at US$1.37 billion, with the
second stage forecast to cost US$1.1 billion, the paper relates.

Mr. Palmer said in July that total investment should top US$7
billion, with export revenue from stage one alone expected to
pass US$1 billion a year.  The Age notes that Mineralogy is
entitled to royalties of up to US$600 million a year once the
project is developed.  It will also be entitled to 6% to 10% of
production volumes.

                          *     *     *

Based in Hong Kong, CITIC Pacific Ltd --
http://www.citicpacific.com/-- is engaged in a range of
businesses in China and Hong Kong, including steel
manufacturing, property development and investment, power
generation, aviation, infrastructure, communications and
distribution.  It is 29% indirectly owned by China International
Trust & Investment Corporation.

On June 28, 2006, The Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on CITIC Pacific Ltd to BB+
from BBB-.  At the same time, it removed the rating from
CreditWatch, where it had been placed with negative implications
on April 7, 2006.  The outlook is stable.

In addition, the TCR-AP also reported that Moody's Investors
Service on June 16, 2006, assigned a Ba1 corporate family rating
to CITIC Pacific Ltd and withdrawn its Baa3 issuer rating.  The
senior unsecured rating for CITIC Pacific Finance (2001) Ltd's
bond is downgraded to Ba1 from Baa3.  The rating outlook is
stable.  This concludes the review initiated by the rating
agency in April 2006.


FIAT SPA: Board of Directors Reviews 2007 Budget
------------------------------------------------
The Board of Directors of Fiat S.p.A., under the chairmanship of
Luca Cordero di Montezemolo, has convened to the review of the
2007 Group budget data.

Group consolidated results for the fourth quarter and full 2006
fiscal year will be examined on Jan. 25 during the Board
meeting.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.  The company
has operations in India and China.

                        *     *     *

Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB'.  At the same time, Standard & Poor's affirmed
its 'B' short-term rating on Fiat.  S&P said the outlook is
stable.

Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable.  Its Issuer Default rating and senior unsecured rating
are affirmed at BB-.  The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.

The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service changed the outlook on Fiat SpA's Ba3
Corporate Family Rating to positive from stable and affirmed the
long-term senior unsecured ratings as well as the short-term
non-Prime rating.


FIAT SPA: Sells Ingest Facility to Pirelli RE Facility Mgt
----------------------------------------------------------
The Fiat Group, through Business Solutions, has reached an
agreement with Pirelli RE Facility Management for the sale of
the 100% interest held in Ingest Facility.

Ingest Facility operates across all the facility management
sectors, offering integrated solutions for the management of
industrial and commercial property and plants.  The Company
employs about 370 people and its consolidated sales for 2006 are
expected to reach around EUR225 million, including activities
carried out in France.

The sale will be carried out on the basis of a total value of
around EUR50 million subject to usual price adjustment clauses
and will be finalized after antitrust authorizations have been
received.

The transaction is part of the Fiat Group strategy to focus on
its core business and will entail a capital gain at the
consolidated level equivalent to around EUR40 million.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.  The company
has operations in India and China.

                        *     *     *

Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB'.  At the same time, Standard & Poor's affirmed
its 'B' short-term rating on Fiat.  S&P said the outlook is
stable.

Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable.  Its Issuer Default rating and senior unsecured rating
are affirmed at BB-.  The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.

The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service changed the outlook on Fiat SpA's Ba3
Corporate Family Rating to positive from stable and affirmed the
long-term senior unsecured ratings as well as the short-term
non-Prime rating.


FIAT SPA: Train Unit Partners with Severstal-Auto in Russia
-----------------------------------------------------------
Fiat Powertrain Technologies, a unit of Fiat S.p.A., and
Severstal-Auto signed a Memorandum of understanding that calls
for the establishment of a joint venture in Russia to produce
FPT diesel engine -- F1A.

The assembly of F1A will be located within the production
facilities of Severstal-Auto's motor plant near Nizhniy Novgorod
in the Volga region.

The FPT diesel engine locally produced in Russia will be
installed in the FIAT Ducato LCV (X 2/44 platform) and
homologised for Severstal-auto's new SUV model -- UAZ Patriot.

FPT and Severstal-Auto agreed to finalize all pending issues
with the overall goal to sign joint venture contracts in the 1st
quarter 2007.

"This agreement is another big step forward in our clearly
defined strategy: expand our presence in the markets with the
highest growth potential, through alliances with strategic
partners, to be close to our customers and ready to catch any
business opportunity," said Alfredo Altavilla, Chief Executive
Officer of Fiat Powertrain Technologies

"Our new project with FPT shows the strengthening of our
strategic cooperation with Fiat Group in Russia," said Vadim
Shvetsov, CEO of Severstal-Auto.  "Start of local production of
F1A will give us a very important advantage for effective
promotion of Fiat Ducato LCV in the Russian automotive market."

                      About Severstal-Auto

OAO Severstal Auto produces four-wheel drive vehicles - the
legendary UAZ SUVs, light trucks and minivans.  Severstal Auto
is also the Russian largest manufacturer of 4- and 8-cylinder
petrol engines with displacements ranging from 2.2-4.7 liters.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.  the company
has operations in India and China.

                        *     *     *

Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB'.  At the same time, Standard & Poor's affirmed
its 'B' short-term rating on Fiat.  S&P said the outlook is
stable.

Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable.  Its Issuer Default rating and senior unsecured rating
are affirmed at BB-.  The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.

The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service changed the outlook on Fiat SpA's Ba3
Corporate Family Rating to positive from stable and affirmed the
long-term senior unsecured ratings as well as the short-term
non-Prime rating.


GALLERY OF CONTEMPORARY: Members' Final Meeting Set for Jan. 23
---------------------------------------------------------------
A final general meeting of the members of Gallery of
Contemporary Living Ltd will be held on Jan. 23, 2007, at 10:00
a.m. to consider the liquidators' report of the company's wind-
up proceedings.

The joint and several liquidators can be reached at:

         Leung Shu Yin, William
         Ng King Sing
         Rooms 903-908
         Kai Tak Commercial Building
         317-319 Des Voeux Road, Central
         Hong Kong


GLOBAL POWER: Equity Panel Hires Houlihan Lokey as Fin'l Advisor
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware
authorized, on an interim basis, the Official Committee of
Equity Security Holders appointed in the Chapter 11 cases of
Global Power Equipment Group Inc. and its debtor-affiliates, to
retain Houlihan Lokey Howard & Zukin Capital, Inc. as its
financial advisor, nunc pro tunc Nov. 9, 2006.

Houlihan Lokey is expected to:

   a. perform due diligence on the Debtors' businesses, as well
      as their prospect and the markets in which they compete;

   b. evaluate the assets and liabilities of the Debtors;

   c. analyze and review the financial and operating statements
      of the Debtors;

   d. analyze the business operations, business plans and
      forecasts of the Debtors;

   e. evaluate all aspects of the Debtors' DIP financing; cash
      collateral usage and adequate protection therefor; any
      exit financing in connection with any chapter 11 plan of
      reorganization and any budgets relating thereto; and any
      employee retention programs or similar proposed
      compensation plan or program;

   f. assist the Equity Committee, as needed, in identifying
      potential alternative sources of liquidity in connection
      with any chapter 11 plan or otherwise;

   g. provide specific valuation and other financial analyses as
      the Equity Committee may require in connection with the
      Cases;

   h. represent the Equity Committee in negotiations with the
      Debtors, the official committee of unsecured creditors of
      the Debtors and third parties with respect to any of the
      foregoing;

   i. provide testimony in court on behalf of the Equity
      Committee, if necessary;

   j. assess the financial issues and options concerning:

      * the sale of any assets of the Debtors and/or their non-
        debtor affiliates, either in whole or in part, and

      * the Debtors' chapter11 plan(s) or any other chapter 11
        plan(s); and

   k. provide other customary services as may reasonably be
      requested by the Equity Committee.

Joel L. Klein, Chair of the Committee, discloses that Houlihan
Lokey will be paid post-petition under the terms of the
Engagement Agreement:

   a. US$100,000 per month in cash from the Effective Date
      through termination of the Engagement Agreement.  The
      first Monthly Fees will be paid on the first date
      permitted by the Court, and then, subject to the orders
      governing payment of interim compensation of retained
      professionals in these Cases, on each monthly anniversary
      of the Effective Date; plus

   b. a transaction fee payable upon the consummation of each
      "Transaction" equal to 2% of the first US$23,500,000 of
      "Aggregate Equity Holder Recoveries", 3% of the next
      US$14,100,000 of Aggregate Equity Holder Recoveries and 4%
      of Aggregate Equity Holder Recoveries in excess of
      US$37,600,000.

   c. Houlihan Lokey's monthly fees and transaction fees will be
      payable in cash, provided however that Houlihan Lokey's
      total cash compensation will be capped at US$3,000,000.
      Any amount due to and payable to Houlihan Lokey in excess
      of US$3,000,000 will be payable "In Kind" (i.e., in the
      same manner and currency/form as and when received by
      equity holders).

Houlihan Lokey would also seek reimbursement for reasonable out-
of pocket expenses incurred.

Mr. Klein assures the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code and does not hold nor represent any interest
adverse to the Debtors' estates.

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

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


GLOBAL POWER: Court Okays Blackstone Group as Financial Advisor
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware
authorized Global Power Equipment Group, Inc. and its debtor-
affiliates to employ The Blackstone Group L.P. as their
financial advisor nunc pro tunc to Oct. 16, 2006.

Global Power is expected to:

   a. assist in the evaluation of the company's businesses and
      prospects;

   b. assist in the development of the company's long-term
      business plan and related financial projections;

   c. assist in the development of financial data and
      presentations to the company's Board of Directors, various
      creditors and other third parties;

   d. analyze the company's financial liquidity and evaluate
      alternatives to improve the liquidity;

   e. analyze various restructuring scenarios and the potential
      impact of these scenarios on the recoveries of those
      stakeholders impacted by the restructuring;

   f. provide strategic advice with regard to restructuring or
      refinancing the company's obligations;

   g. evaluate the company's debt capacity and alternative
      capital structures;

   h. participate in negotiations among the company and its
      creditors, suppliers, lessors and other interested
      parties;

   i. value securities offered by the company in connection with
      a restructuring;

   j. advise the company and negotiate with lenders with respect
      to potential waivers or amendments of various credit
      facilities;

   k. assist in arranging debtor-in-possession financing for the
      company, as requested by the company;

   l. provide expert witness testimony in these chapter 11 cases
      concerning any of the subjects encompassed by the other
      financial advisory services;

   m. assist the company in preparing marketing materials in
      conjunction with a possible transaction as requested by
      the company;

   n. assist the company in identifying potential buyers or
      parties in interest to a transaction and assist in the due
      diligence process;

   o. assist and advise the company concerning the terms,
      conditions and impact of any proposed transaction; and

   p. provide other advisory services as are customarily
      provided in connection with the analysis and negotiation
      of a restructuring or a transaction, as requested and
      mutually agreed.

Eric M. Sutty, Esq., one of the Debtors' counsel, disclosed that
pursuant to an Engagement Letter between the Debtors and
Blackstone Group, the firm will receive:

   a. a monthly advisory fee of US$150,000 in cash, with the
      first monthly fee payable upon the execution of the
      Engagement Letter and additional installments of the
      monthly fee payable in advance on each monthly anniversary
      of the retention date;

   b. an additional restructuring fee of US$1,650,000, except as
      provided in the Engagement Letter.  A restructuring will
      be deemed to have been consummated upon the execution,
      confirmation and consummation of a Plan of Reorganization
      pursuant to an order of the Court;

   c. upon the consummation of a transaction, a transaction fee
      payable in cash directly out of the gross proceeds of the
      transaction.

Blackstone will be reimbursed of all reasonable out-of-pocket
expenses and internal charges incurred.

Mr. Sutty assures the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code and does not hold or represent any interest
adverse to the Debtors' estates.

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

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


GLOBAL POWER: Wants General Claims Bar Date Set for April 18
------------------------------------------------------------
Global Power Equipment Group Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to set
April 18, 2007, as the deadline for all creditors and
governmental units owed money by the Debtors on the account of
claims arising prior to Sept. 28, 2006.

The Debtors also ask the Court to set May 18, 2007, as the
deadline for all creditors, including the Debtors, owed money by
co-Debtors, sureties or guarantors, on accounts of claims
arising prior to Sept. 28, 2006.

The purpose of the bar date is to provide a deadline to identify
any possible unknown claims against the Debtors' estates and to
give parties additional certainty regarding the magnitude of
claims against the Debtors' estates.

Copies of written proofs of claim must be sent or hand delivered
on or before the April 18 Bar Date to:

     Global Power Equipment Group, Inc.
     c/o Alix Partners LLC
     2100 McKinney Avenue, Suite 800
     Dallas, Texas 75201

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

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


GOLD MOUNTAIN: Appoints Inspection Committee and Liquidators
------------------------------------------------------------
On Nov. 22, 2006, the High Court of Hong Kong appointed a
Committee of Inspection for Gold Mountain Enterprise Ltd, which
comprises of:

   -- Standard Chartered Bank (Hong Kong) Limited;

   -- Industrial And Commercial Bank of China (Asia) Limited;
      and

   -- Heng Sang Bank limited

On the same day, Edward Simon Middleton and Jacky Chung Wing
Muk were appointed as the company's liquidators.

The Joint and Several Liquidators can be reached at:

         Edward Simon Middleton
         Jacky Chung Wing Muk
         KPMG
         8/F Prince's Building
         No 10 Chater Road
         Hong Kong


HANG CHE: Shuts Down Business Operations
----------------------------------------
At an extraordinary general meeting held on Dec. 19, 2006, the
members of Hang Che Lee Company Ltd passed a special resolution
to voluntarily liquidate the company' business.

Accordingly, Chan Shet Hung Suzanne and Li Chi Chung were
appointed as joint and several liquidators to distribute the
company's assets.

The Joint and Several Liquidators can be reached at:

         Chan Shet Hung, Suzanne
         Li Chi Chung
         83 Des Voeux Road, Central
         Hong Kong


H.E.A. (INVESTMENTS): Enters Wind-Up Proceedings
------------------------------------------------
On Dec. 22, 2006, the shareholders of H.E.A. (Investments) Ltd
passed a special resolution to voluntarily wind up the company's
operations.

In this regard, Desmond Chung Seng Chiong and Roderick John
Sutton were nominated as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Desmond Chung Seng Chiong
         Roderick John Sutton
         Ferrier Hodgson Limited
         14/F, Hong Kong Club Building
         3A Chater Road, Central
         Hong Kong


INTERGEN (HK): Members Appoint Gilligan as Liquidator
-----------------------------------------------------
On Dec. 29, 2006, the members of Intergen (HK) Ltd passed a
special resolution to appoint Philip Brendan Gilligan as
liquidator.

The Liquidator can be reached at:

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


NEW MILLENIUM: Appoints Chan Lap Tat Dickman as Liquidator
----------------------------------------------------------
Chan Lap Tat Dickman was appointed as liquidator of New
Millennium Foundation Ltd by a special resolution passed on
Dec. 15, 2006.

The Liquidator can be reached at:

         Chan Lap Tat Dickman
         Chan & Associates
         Shop No. 1, Ground Floor
         Nam Shing Court, No. 21 Nam Shing Street
         Tai Po, New Territories
         Hong Kong


OCEAN ENVIRONMENTAL: Members & Creditors to Hear Wind-Up Report
---------------------------------------------------------------
The members and creditors of Ocean Environmental Service Company
Ltd will meet on March 27, 2007, at 9:30 a.m. and 10:00 a.m.,
respectively to receive the report of the company's wind-up
proceedings from Liquidator Au Yeung Po Ying.

As reported by the Troubled Company Reporter - Asia Pacific, the
company's sole member appointed Mr. Au Yeung as the company's
liquidator on June 5, 2006.

The Liquidator can be reached at:

         Au Yeung Po Ying
         Unit 1602-3, 16/F
         Yue Xiu Building, 160-174 Lockhart Road
         Wanchai, Hong Kong


PARKWAY HOLDING: Creditors Must Prove Debts by January 26
---------------------------------------------------------
The creditors of Parkway Holding Investment Ltd, which is in
members' voluntary wind-up, are required to prove their debts by
Jan. 26, 2007.

Failure to prove debts will exclude a creditor from sharing in
any distribution the company will make.

The liquidator can be reached at:

         Yuen Shu Tong
         3/F, Malaysia Building
         50 Gloucester Road
         Wanchai, Hong Kong


WORKPLACE COMPANY: Annual Meetings Slated for January 23
--------------------------------------------------------
The annual meetings of the members and creditors of Workplace
Company Ltd will be held on Jan. 23, 2007, at 5:00 p.m. and 6:00
p.m., respectively.

During the meetings, the members and creditors will receive the
report of the company's wind-up proceedings for the period of
Oct. 24, 2005 - Oct. 23, 2006.

As reported by the Troubled Company Reporter - Asia Pacific, the
company paid its first dividend of 30% on July 21, 2006.

The liquidator can be reached at:

         Ip Pui Lam
         2/F, Jonsim Place
         228 Queen's Road East, Wanchai
         Hong Kong


YMT OVERSEAS: Members Pass Resolution to Wind Up Firm
-----------------------------------------------------
At an extraordinary general meeting held on Dec. 27, 2006, the
members of YMT Overseas Ltd passed a special resolution to
voluntarily wind up the company's operations and appointed Chang
Ching Hsin as liquidator.

The Liquidator can be reached at:

         Chang Ching Hsin
         Room 707, Wing On Plaza
         62 Mody Road, Tsimshatsui East
         Kowloon
         Hong Kong


* Authorities Take Control of Two Insolvent Banks
-------------------------------------------------
China's Financial Supervisory Commission disclosed that the
Central Deposits Insurance Co., will take over the operations of
The Chinese Bank and Enterprise Bank of Hualien, The China Post
reports.

FSC's chairman Shih Jun-ji made the announcement in response to
a recent run on The Chinese Bank.  The bank's parent company,
China Rebar Co., and its affiliate China Hsin Food & Synthetic
Fiber Co. were recently declared insolvent, The Post recounts.

Mr. Shih promised that the government would safeguard the
interests of all depositors at The Chinese Bank.  "There is
nothing to be worried about.  The bank has more assets than
liabilities," Mr. Shih added.

The China Post relates that the FSC and the Central Bank of
China jointly set up an emergency ad hoc panel to forestall a
possible bank run and stabilize domestic financial markets.

The CBC will repurchase negotiable certificates of time deposits
bought by The China Bank from the CBC and offer deposit reserve
funds of NT$12.7 billion to meet the demands of those who seek
to withdraw their depositors.

Meanwhile, Mr. Shih also said the government will take over the
Enterprise Bank of Hualien because it's losing NT$20 million to
NT$30 million a month and has more liabilities than assets.  The
Hualien-based bank, with 31 branches, had a bad-loan ratio of
30% at the end of November, Mr. Shih said.

Evidence of possible wrongdoing at the bank is being turned over
to prosecutors, Mr. Shih further said.  Mr. Shih also disclosed
that the bank's board members and senior management have been
fired and that some directors are barred from leaving the island
or selling personal assets, The China Post relates.

The government's standing policy is to clean up distressed banks
and look for a buyer, Mr. Shih said, noting that Taiwan
currently has set aside NT$53 billion to pump into any faltering
banks it takes control of.

The Troubled Company Reporter - Asia Pacific reported on
October 20, 2006, that Taiwan Ratings Corp lowered its long-term
counter-party credit rating on Enterprise Bank of Hualien to
'twBB' from 'twBB+'.  At the same time, the 'twB' short-term
counterparty credit rating on the bank was affirmed.

The outlook on the long-term rating is negative.

The rating action, according to the TRC, reflects concerns about
Hualien Bank's increasing inability to reverse deteriorating
business volumes, asset quality, and profitability, and
continuing delays in the execution of a recapitalization plan.
The ratings reflect the bank's very weak financial profile and
vulnerable business profile.  The current financial environment
in Taiwan is, however, stable, providing modest support.

In another matter, the Ministry of Finance announced that it
would fully respect whatever decisions made by the major
creditor banks of China Rebar and Chia Hsin Food & Synthetic
Fiber on whether to allow the two firms to undertake debt
restructuring, the paper relates.

The two firms have registered a total of around NT$28 billion in
debt to some 30 banks in Taiwan, with major creditor banks being
government-controlled banks including Mega Financial Holding,
Bank of Taiwan and Taiwan Cooperative Bank.  Of them Mega
Financial records the largest, which is owed some NT$5.4
billion.

Accordingly, the Taipei District Court has granted the request
for urgent asset protection, giving the two companies a 90-day
period during which their assets may not be seized by creditors,
the company statement said.

Chia Hsin Food and Synthetic Fiber is burdened with NT$19.9
billion in debt on losses in its man-made fiber business.

China Rebar, which is engaged in insurance, financing, broadband
and TV shopping businesses, is shouldered with NT$20.7 billion
as it acts as guarantor to Chia Hsin Food and Synthetic Fiber.


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

AMERICAN AXLE: To Release 4Q & Full Year 2006 Results on Feb. 2
---------------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., which is traded as
AXL on the NYSE, will hold a briefing with institutional
investors and security analysts, news media representatives and
other interested parties at 10:00 a.m. EDT on February 2, 2007.
AAM's Co-Founder, Chairman & CEO Richard E. Dauch and Vice
President - Finance & CFO Michael K. Simonte will co-host the
call.  AAM will discuss its fourth quarter and full year 2006
financial results as well as other matters.  This briefing may
be accessed via conference call or Web cast.

  To participate by phone, please dial:

     (877) 278-1452 from the United States

     (706) 643-3736 from outside the United States

  Callers should ask to be connected to the American Axle &
  Manufacturing earnings conference call.

AAM will broadcast the briefing for the general public via a
live audio Web cast that may be accessed through AAM's investor
web site at http://investor.aam.com/ AAM will post its fourth
quarter and full year 2006 financial results at approximately
8:00 a.m. EDT on February 2, 2007, in the News Releases section
of this Web site.  Posted data will include a copy of the press
release discussing the results along with the financial
statements.

A replay will be available from Noon EDT on February 2, 2007,
until 5:00 p.m. EDT February 9, 2007.

  To listen to the replay please dial:

     (800) 642-1687 from the United States

     (706) 645-9291 from outside the United States

  When prompted, callers should enter conference reservation
  number 5211203.

The briefing audio will also be archived in the investor's
section of the AAM Web site for one year.

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.

The Troubled Company Reporter - Asia Pacific reported on
Dec. 21, 2006, 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.


EASTMAN KODAK: Inks Agreements with Sony; Ends Patent Dispute
-------------------------------------------------------------
Eastman Kodak Co. has entered a cross-licensing agreement with
Sony Corp., ending a long-standing patent dispute over digital-
camera inventions since 1987, The Associated Press reports.

According to the source, Eastman Kodak also signed a cross-
license deal with Sony Ericsson Mobile Communications AB, a
joint venture of Sweden's LM Ericsson and Sony.

AP says that the financial terms of the contracts were not
revealed but the deals were royalty bearing to Kodak.

Kodak spokesman David Lanzillo told AP that ending the patent
litigation and entering into cross-license agreement would allow
each company broad access to each other's patent portfolio.

                         Patent Dispute

AP relates that in March 2004, Kodak filed a lawsuit against
Tokyo-based Sony and two U.S. subsidiaries, Sony Corp. of
America and Sony Electronics Inc., alleging that Sony infringed
on 10 patents for digital camera inventions issued from 1987 to
2003 including digital and video tools such as image compression
and digital storage.

Three weeks later, Sony countersued Kodak claiming that Kodak
violated 10 patents covering digital camera features, from an
indicator that displays the number of pictures taken to an
electronic shutter with adjustable speeds, AP adds.

                     About Eastman Kodak Co.

Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- is a worldwide vendor of imaging
products and services.  The company is committed to a digitally
oriented growth strategy focused on four businesses: Digital &
Film Imaging Systems - providing consumers, professionals, and
cinematographers with digital and traditional products and
services; Health -- supplying the medical and dental professions
with traditional and digital imaging and information systems, IT
solutions, and services; Graphic Communications - providing
customers with a range of solutions for prepress, traditional
and digital printing, document scanning, and multi-vendor IT
services; and Display & Components - supplying original
equipment manufacturers with imaging sensors as well as
intellectual property and materials for the organic light-
emitting diode and LCD display industries.

The company has operations in India, Australia, China, Hong
Kong, Japan, Korea, Malasia, New Zealand, Philippines,
Singapore, Taiwan and Thailand.

                          *     *     *

Moody's Investors Service placed Eastman Kodak Company on review
for possible downgrade.  Ratings under review include the
company's B1 Corporate Family Rating; B2 Senior Unsecured
Rating; and Ba3 rating on the Senior Secured Credit Facilities.

Moody's review continues to focus on the company's potential
sale of the Kodak Health Group as well as the fundamental
operating performance of the company.

Standard & Poor's Ratings Services placed its ratings on Eastman
Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative
implications.  The Rochester, New York-based imaging company had
US$3.5 billion in debt as of June 30, 2006.


GENERAL MOTORS: Asia-Pacific Sales in 2006 Up 17.9%
---------------------------------------------------
General Motors Corp. said its sales and market share in Asia
Pacific both reached new highs in 2006.

GM sold 1,254,615 vehicles in Asia Pacific, which was an
increase of 17.9% over 2005.  It marked the second consecutive
year that regional sales topped 1 million units.  This took GM's
market share in Asia Pacific to an estimated 6.4%, from 5.8% at
the end of the previous year.

"Our operations in China and Korea continued to drive GM's
vehicle sales in the world's fastest-growing region," Nick
Reilly, GM Group vice president and president of GM Asia
Pacific, said.

"We benefited from a positive reception for many of our new
offerings, including the VE Commodore in Australia, the Buick
LaCrosse and Chevrolet Lova in China, the GM Daewoo Winstorm and
Tosca in Korea, and the Chevrolet Aveo in India and Thailand."

                           Rising Sales

In China, GM and its Shanghai GM and SAIC-GM-Wuling joint
ventures sold 876,747 vehicles, which represented an increase of
31.8% over 2005.  Shanghai GM sales rose 27% on a year-on-year
basis to 413,367 units.  SAIC-GM-Wuling, GM's mini-vehicle joint
venture, registered sales growth of 36.5% to 460,155 vehicles.
China remained GM's second-largest global market in 2006,
following the United States.

GM Daewoo sales likewise remained strong in 2006.  Its sales in
Korea rose 19.2% on an annual basis to 128,332 units.  The Tosca
sedan and Winstorm SUV accounted for more than 36% of domestic
sales.  Exports of complete vehicles and knockdown kits from
Korea jumped 33.1% to 1,397,487 units.  This was a GM record.

Despite a drop in sales to 146,502 units in 2006, GM Holden
remained Australia's number two seller of vehicles.  GM Holden
received a boost from the launch of the award-winning VE
Commodore, Australia's single largest vehicle program.

Thailand continued to lead the way for GM's growth in ASEAN.
Sales of GM's lineup of Chevrolet products totaled 29,727 units.
For ASEAN as a whole, GM sales topped 38,000 vehicles in a
market that was down overall.

In India, GM rolled out an unprecedented three new Chevrolet
vehicles (the Aveo, SRV and Aveo U-VA) in 2006.  Consumers
responded, with GM's sales in India rising 15.4% year on year to
34,552 units.

                      New Investment in 2006

GM continued the expansion of its operations in Asia Pacific in
2006.  In May, GM Daewoo began regular production at its diesel
engine plant in Gunsan, Korea.  The diesel engine that it
produces is powering both the Winstorm and Tosca for sale in
Korea and around the globe.  GM Daewoo also began operation of a
new KD packing business at Korea's Incheon Port that can pack
and export 570,000 knockdown kits annually for assembly at GM
facilities worldwide.

In India, GM announced it would build a new vehicle
manufacturing plant in the state of Maharashtra that will more
than double GM's local production capacity when it opens in
2008.  The foundation stone was laid for the facility and
construction officially began on November 21.  To keep up with
short-term demand, GM's manufacturing facility in Gujarat,
India, opened a new paint shop and increased its annual
manufacturing capacity to 85,000 units.

The GM Thailand Manufacturing Center in Rayong also opened a new
paint shop, while GM Holden completed an upgrade of the Holden
Vehicle Operations (HVO) plant in Elizabeth, South Australia.
In addition, GM signed an agreement to form a new joint venture
with DRB-HICOM for the distribution of Chevrolet products in
Malaysia.

                New Products and Facilities in 2007

GM plans to continue to expand its vehicle lineup and facilities
in Asia Pacific in 2007.  Among the new and upgraded vehicles
that are scheduled to reach consumers this year are a Chevrolet
mini-car in India, the Cadillac SLS in China, and a diesel
version of the GM Daewoo Lacetti and a new state-of-the-art six-
speed automatic transmission in Korea.

GM Daewoo will complete its new automotive test track in
Incheon, Korea, by mid-year.  Related R&D facilities will follow
over the next two to three years.  In China, SAIC-GM-Wuling is
on schedule to open a new engine plant in Liuzhou, Guangxi, in
2007.

"We are pleased with our growth over the past few years in Asia
Pacific," said Reilly.  "By expanding our manufacturing,
engineering and design capability, we are better able to meet
the vastly different needs of our customers across Asia Pacific.
This is enabling us to increase our presence in this highly
important region for General Motors."

General Motors began doing business in Asia Pacific in 1915 when
it introduced Buick and Cadillac products to Japanese consumers.
Today, GM has automotive facilities and sales operations in more
than 15 countries.  Its regional headquarters is in Shanghai,
China.

GM's broad product portfolio in Asia Pacific encompasses the
Buick, Cadillac, Chevrolet, GM Daewoo, Holden, HUMMER, Opel,
Saab and Wuling brands.  GM's business interests in Asia Pacific
go beyond cars and trucks.  They include GMAC, ACDelco and
Allison Transmission.

                      About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.

                          *     *     *

Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan.  The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.


GENERAL MOTORS: Says Highland Offer Could Delay Delphi Deal
-----------------------------------------------------------
General Motors Corp. and Delphi corp.'s reorganization deal with
Appaloosa Management LP and Cerberus Capital Management might be
delayed by a rival offer from Highland Capital Management LP, GM
CEO Rick Wagoner said according to Reuters.

In Appaloosa and Cerberus' proposed US$3.4 billion deal, GM will
receive 7 million shares of Reorganized Delphi's common stock,
US$2.63 billion in cash, and release of claims by Delphi against
GM.

On the other hand, Highland's proposed funding fund is
US$4.7 billion.

Delphi is a spin-off company of GM.

                         About Delphi Corp.

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.  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.

                     About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.

                          *     *     *

Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan.  The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.


GENERAL MOTORS: Awards Lithium ION Battery Development Contracts
----------------------------------------------------------------
General Motors Corp. has awarded advanced battery development
contracts to two suppliers to design and test lithium-ion
batteries for use in the Saturn Vue Green Line plug-in hybrid
SUV.

One contract has been awarded to Johnson Controls - Saft
Advanced Power Solutions LLC, a joint venture between Tier 1
automotive supplier Johnson Controls and Saft.

Another agreement was signed with Cobasys, in partnership with
A123Systems.  Cobasys, based in Orion, Mich., is a joint venture
between Chevron Technology Ventures LLC, a subsidiary of Chevron
Corp., and Energy Conversion Devices Inc.  A123Systems, based in
Watertown, Mass., is a manufacturer of high power lithium-ion
batteries.

According to Denise Gray, GM's newly appointed director of
hybrid energy storage systems, the companies will be challenged
to prove the durability, reliability and potential cost at mass
volumes of their technology.

"Thanks to critical relationships with the U.S. government,
collaborative research with Ford and DaimlerChrysler under the
United States Advanced Battery Consortium, significant progress
has been made in battery research," Ms. Gray said.

"But a lot of testing and development is still needed.
Together, with our suppliers, we intend to address the issues
relating to thermal management, storage capacity, recharge
times, driving range, and cost reduction."

The two test batteries, one from Cobasys - A123Systems and the
other from Johnson Controls - Saft, will be evaluated in
prototype Saturn Vue Green Line plug-in hybrids beginning later
this year. While both are lithium-ion batteries, the chemistry
differs significantly.  The suppliers also use unique methods in
the design and assembling of the battery packs.

GM will be actively looking for more partners to bring lithium-
ion technology to production.  "It's important to point out that
these two agreements are by no means the only avenues we're
pursuing," Ms. Gray said.

"We are fully committed to forging the necessary partnerships to
produce battery solutions that will meet our aggressive vehicle
program targets."

GM announced in November at the 2006 Greater Los Angeles Auto
Show its intention to produce a Saturn Vue Green Line plug-in
hybrid that has the potential to achieve double the fuel
efficiency of any current SUV.

In addition to plug-in technology and a lithium-ion battery pack
when ready, the Vue Green Line will use a modified version of
GM's 2-mode hybrid system, powerful electric motors and highly
efficient electronics to achieve significant increases in fuel
economy.

GM is co-developing the 2-mode hybrid system with
DaimlerChrysler and BMW Group for use in front-, rear- and four-
wheel drive applications in an array of car and truck models.
The 2-mode system debuts later this year in the Chevrolet
Tahoe/GMC Yukon Hybrid SUVs.

                    About Johnson Controls Inc.

Johnson Controls Inc., headquartered in Milwaukee, Wis., had
sales of $32 billion in fiscal year 2006 and employs
approximately 136,000 people.  Johnson Controls' power solutions
business provides more than 110 million starter batteries
globally each year.

                About Saft Advanced Power Solutions

Saft Advanced Power Solutions LLC, headquartered in Paris,
employs 4,000 people and had annual sales of more than $700
million in 2005.  Saft is a world leader in high performance
batteries and has a decade of experience in lithium-ion
development and manufacturing.  Saft provided lithium-ion
batteries for the Chevrolet Sequel fuel cell concept vehicle.

                About Johnson - Saft Joint Venture

Saft and Johnson Controls formed the battery joint venture last
year.  Now, more than 150 people work for the joint venture,
based also in Milwaukee.

                           About Cobasys

Cobasys has facilities in both Michigan and Ohio with
approximately 400 employees to the design, manufacture and
integrate advanced energy storage systems for both
transportation and stationary power markets.  It's headquarters
features one of the world's largest Energy Storage System
development and test facilities required for the validation of
battery systems.  Cobasys is presently supplying nickel-metal
hydride systems for the Saturn Vue Green Line hybrid SUV and
will be supplying NiMH systems for the 2007 Saturn Aura Green
Line hybrid sedan.

                         About A123Systems

A123Systems, which employs 250 people, was started in 2001 to
commercialize technology developed at the Massachusetts
Institute of Technology.  A123Systems has quickly grown to be
one of the world's largest suppliers of high power lithium-ion
batteries.  By the end of 2007, A123Systems will have the annual
capacity to make 20 million lithium-ion batteries for use in
power tools.  It also sells batteries for stationary backup
power, jet engine auxiliary power units, and hybrid trucks and
buses.

                     About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.

                          *     *     *

Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan.  The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.


IFCI LTD: Government Considers Proposal to Bring in Investor
------------------------------------------------------------
The Indian Government is considering a proposal to bring into
IFCI Ltd a strategic investor, The Economic Times reported on
Jan. 2, citing senior government officials.

According to the Times, the investor could be a foreign or a
local bank.

"The government has already been sounded out by a couple of top
foreign banks operating in India besides an overseas firm, which
specializes in recovering distressed assets," the report stated.

To clarify the news, IFCI informed the Bombay Stock Exchange
that its board of directors is contemplating various options for
the company's future.  IFCI, however, made it clear that there
is no specific proposal currently under the board's
consideration.

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


INDIAN OIL: Fitch Gives BBB- Long-term Foreign Currency Rating
--------------------------------------------------------------
Fitch Ratings on Dec. 23, 2006, assigned a 'BBB-' Long-term
foreign currency Issuer Default rating and an 'AAA(ind)'
National Long-term issuer rating to Indian Oil Corporation
Limited.  The Outlook on the ratings is Stable reflecting
Fitch's expectation that IOC, as the largest corporation in
India, will maintain a credit profile appropriate for the rating
category and will continue to be supported by the government of
India.

The ratings reflect IOC's position as the largest downstream oil
and gas company in India with the largest refining capacity,
marketing network and pipeline infrastructure in the country.
The ratings are supported by IOC's majority GoI ownership, its
strong linkage with and strategic importance to the GoI, for
controlling this important sector, given that oil accounts for
34% of India's energy requirements.

The strong implicit support from the GoI is evident from the
sharing mechanism, including the issue of oil bonds and direct
subsidies to IOC and other public sector oil marketing companies
to compensate for the losses caused by GoI's price caps on
select fuels.  Public sector upstream oil companies also share a
part of these under recoveries on GoI's instructions.  While the
standalone rating profile of IOC is not constrained by the
sovereign ceiling, Fitch expects IOC to continue receiving GoI's
support given its role as an extended arm of GoI for policy
implementation.

The ratings also factor in IOC's status as the largest company
in India in terms of revenues and its past record of maintaining
a conservative financial profile.  IOC's profitability is
supported by its competitive refining margins and extensive
pipeline network, reducing logistics costs.  The strong economic
growth expected in India is likely to lead to steady increase in
demand for refined products in the medium to long term.

The ratings take into account IOC's reduced debt protection
measures over the last two years as a result of lower
profitability due to under recoveries caused by GoI's fuel
pricing policy.  These are unlikely to improve materially if
under recoveries continue at similar levels.  The company has a
substantial capital expenditure plan, the implementation of
which will depend upon continued GoI support if under recoveries
persist.

Importantly, a large part of the capex is planned for upgrading
refineries, increasing pipeline network and forward integrating
into petrochemicals, steps which are expected to improve its
profitability and business risk profile in the long run.

Moreover, the company holds substantial marketable equity
investments with a current market value of around USD3 billion
and has good access to external financing sources, which can
provide a cushion to its liquidity, if required.  Increased
competition from the private sector may reduce IOC's dominance
of the industry in the future.  IOC may also consider expanding
its exploration and production activities through the
acquisition of a mid-sized upstream overseas oil company.

Should such a transaction proceed, Fitch would weigh up the
vertical integration benefits that may arise from less exposure
to volatile international oil prices against the funding
arrangements, in light of Fitch's expectation of ongoing support
from the GoI.

IOC, formed in 1964, is the largest oil refining and marketing
company in India.  It controls 10 of India's 18 oil refineries,
accounting for 41% of the country's refining capacity of 132.5
million metric tonnes per annum in FY06 and had a 47% share of
the country's refined products market in FY06.  It owns 51% of
the petroleum product pipeline capacity and 100% of the crude
oil pipeline capacity in the country.  During FY06, IOC
registered consolidated revenues of USD36bn on which it earned a
net income of USD1.1bn.

                          *     *     *

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: Signs Rural Co-Marketing Deal with Indo Gulf
--------------------------------------------------------
Indian Oil Corporation Limited and Indo Gulf Fertilisers signed
a Memorandum of Understanding for co-marketing products
exclusively for the rural market.

As a part of the deal, IGF products such as fertilizers, seeds,
agrochemicals, which are currently marketed through their "Birla
Shaktiman Krishi Seva Kendra and Birla Shaktiman Kisan Swayam
Rojgar Krishi Seva Kendras would now also be retailed through
Indian Oil's Kisan Seva Kendras, a company press release states.

Indian Oil has been expanding its retail network in the rural
areas to tap the potential of the rural belt by putting KSKs --
low cost outlets -- in markets catering to rural or agriculture
customers.

According to the release, the alliance, while providing an
opportunity to retail IGF products through KSKs, has also opened
vistas for setting up diesel/petrol facilities at IGL Krishi
Seva Kendras.

The parties believe that the MOU provides for multiple retail
models making the synergy extremely strategic and fruitful in
the long run.

IGF is a part of the Aditya Birla Group with agriculture
products as its core business.  IGF's marketing activities span
Uttar Pradesh, Bihar, Jharkhand and West Bengal, which together
account for 35%-40% of the urea consumption in India.  IGF is
the owner of the "Birla Shaktiman" brand.

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: Successfully Liquidates INR806-Crore Oil Bonds
----------------------------------------------------------
Indian Oil Corporation Ltd successfully liquidated INR806 crore
worth of oil bonds maturing in 2021 and 2023 in the secondary
market trade, the company said in a press release.

The sale was concluded on Jan. 4, 2006, through book building
route.

According to Indian Oil, the issue generated a very good
response despite the constant strain on liquidity currently in
the money markets.  The yields and short-term interest rates
have elevated post the announcement of the Reserve Bank of
India's cash reserve ratio hike of 50 basis points.

The arrangers to the issue were:

   -- Darashaw,
   -- IDBI Capital,
   -- RR Financials,
   -- ICICI Securities Ltd. and
   -- UTI Bank Ltd.

The Government of India had issued oil bonds worth INR7,168
crore maturing after 15 to 17 years to Indian Oil in the current
financial year in lieu of the under-recoveries suffered by the
oil companies on the sale of LPG & SKO.  Indian Oil has
liquidated oil bonds of about INR6,000 crore of varying
maturities (including the current sale) in the secondary market
during the current fiscal.

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.


JAMMU & KASHMIR: Board to Consider Q3 Results on Jan. 15
--------------------------------------------------------
Jammu & Kashmir Bank Ltd informs the Bombay Stock Exchange that
its board of directors will meet to consider and approve the
bank's Unaudited Financial Results for the third quarter ended
Dec. 31, 2006.

The meeting is set on Jan. 15, 2007.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 2, the bank recorded a net profit of INR84.02 crore in the
second quarter of 2006-07, an increase of 54% from the INR54.97
crore net profit in the corresponding quarter of 2005-06.

India-based Jammu & Kashmir Bank Limited --
http://www.jammuandkashmirbank.com/-- is a private sector bank
that provides a range of traditional commercial banking products
and services to corporations and middle market businesses.  The
key commercial banking products and services to corporate
customers include credit products and structured finance, cash
management, trade and commodity finance, and investment banking,
local debt syndication and securitization.  The bank, through
its operations, is focusing on banking, insurance and asset
management.

Fitch Ratings gave Jammu & Kashmir Bank a 'D' individual rating
on June 1, 2005.


JAMMU & KASHMIR: Offers Microfinance to Small Entrepreneurs
-----------------------------------------------------------
Jammu & Kashmir Bank plans to set off a self-sustaining economic
enterprise in Jammu and Kashmir by offering extensive
microfinance to small entrepreneurs, Greater Kashmir reports.

According to the report, the bank is focusing on demand-driven
credit, building capacity for savings and insurance through
small loans and financial services that help the micro-
entrepreneurs to expand business and increase income.


"We have already started offering tailor-made financial products
in the areas that were previously known as `un-bankable' because
of lack of collateral," the paper quoted the bank's Chairman and
CEO Dr. Haseeb Drabu as saying.  "Once given the opportunity,
not only did micro-finance clients expand business and increase
their income, the high repayment rates demonstrate that given a
chance the poor are capable of transforming their lives."

The bank believes that microfinance is an effective tool for
sustainable income growth and employment generation among the
low-income groups.

According to Dr. Drabu, more than half the bank's deposits are
from the State.

To encourage small savings, the Bank embarked on a vigorous
deposit mobilization drive especially in the rural areas of the
State, educating the people about the savings.

India-based Jammu & Kashmir Bank Limited --
http://www.jammuandkashmirbank.com/-- is a private sector bank
that provides a range of traditional commercial banking products
and services to corporations and middle market businesses.  The
key commercial banking products and services to corporate
customers include credit products and structured finance, cash
management, trade and commodity finance, and investment banking,
local debt syndication and securitization.  The bank, through
its operations, is focusing on banking, insurance and asset
management.

Fitch Ratings gave Jammu & Kashmir Bank a 'D' individual rating
on June 1, 2005.


KARNATAKA BANK: Enters Financing Pact with Sun Technics
-------------------------------------------------------
Karnataka Bank Ltd signed a memorandum of understanding with Sun
Technics Energy Pvt Ltd for financing the purchase of solar
water heating and home light systems, Daijiworld News reports.

Financing would be extended to customers under KBL Ravikiran
scheme, Daijiworld says, citing a press release by the bank.

According to the news agency, Sun Technics Energy is a
manufacturer of solar equipment such as solar photovoltaic
systems, solar water heating systems, solar lanterns, and bio
energy and wind energy systems, having technical collaboration
with the Indian Institute of Science, Bangalore.

Headquartered in Mangalore, India, Karnataka Bank Ltd --
http://karnatakabank.com/ktk/Index.jsp-- provides products and
services for business and personal purposes that include
borrowing facilities, deposits, providing optimum returns on
surplus funds or helping with overseas transactions.  The bank
has two business segments: Treasury and Other Banking
Operations. Treasury Operations mainly comprise of surplus
statutory liquidity ratio and non-SLR investments.  Other
Banking Operations mainly consist of advance portfolio of the
bank and SLR securities to the extent of SLR requirements.  The
bank provides Working Capital Finance, Term Loans and
Infrastructure Finance.  The Business Finance Products offers
both fund-based and non-fund-based products.  The bank has
diversified into the marketing of life insurance products of
MetLife India Insurance Co. Pvt. Ltd.  The Bank has entered into
a memorandum of understanding with Bajaj Allianz General
Insurance Co. Ltd. for distribution of its general insurance
products through its branches.

Fitch Ratings gave Karnataka Bank a support rating of 5.


OWENS CORNING: Court Okays Stipulation Resolving Mayer's Claim
--------------------------------------------------------------
The Honorable Judith K. Fitzgerald approved the stipulation of
Owens Corning and its debtor affiliates and Peter and Tracy
Mayer.

The Debtors entered into a stipulation with Peter and Tracy
Mayer resolving the Mayers' Claim No. 3062 for US$1,000,000, to
avoid further litigation.

The parties agree to allow the Claim as a general unsecured,
non-priority claim for US$25,000 solely against Owens Corning.

The Mayers agree to discontinue as settled their action pending
before the United States District Court for the District of New
Jersey, Civil Action No. 01-496, with respect to Owens Corning,
without prejudice to their rights to prosecute the action
against any other defendants.  The Mayers fully discharge and
forever release Owens Corning from any and all obligations and
liability.

                      About Owens Corning

Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the company has locations in
India, Mexico and Belgium.

Headquartered in Toledo, Ohio, the company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, represents the Official Committee of Asbestos
Creditors.  James J. McMonagle serves as the Legal
Representative for Future Claimants and is represented by Edmund
M. Emrich, Esq., at Kaye Scholer LLP. (Owens Corning Bankruptcy
News, Issue No. 146; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

The company's long-term issuer default, senior unsecured debt
and preferred stock carries Fitch's D rating.


OWENS CORNING: Wants Burchfield Whitmire Settlement Approved
------------------------------------------------------------
Owens Corning and its debtor-affiliates ask the Honorable Judith
K. Fitzgerald of the United States Bankruptcy Court for the
District of Delaware to approve a Settlement Agreement and Joint
Stipulation of Dismissal entered between Charles Stein and
Michael Thaman, on one hand, and Michael Burchfield and R.Q.
Whitmire, on the other hand.

The Settlement Agreement resolves the adversary cases filed by
the parties against one another, and the claims filed by Messrs.
Burchfield and Whitmire against the Debtors.

Representing the Debtors' counsel, Jeremy W. Ryan, Esq., at Saul
Ewing LLP, in Wilmington, Delaware, relates that the parties'
dispute started in the last quarter of 2000 when Owens Corning
sought permission from the Bankruptcy Court overseeing its
Chapter 11 cases to consummate a merger with an on-line company
to form and operate a new business.

In anticipation of the merger, a holding company, ServiceLane
Holdings Corporation, was formed.  ServiceLane Holdings'
operating subsidiary, ServiceLane.com, Inc., was incorporated in
Delaware on Dec. 18, 2000.

Messrs. Stein and Thaman served on ServiceLane's board of
directors.  Mr. Stein was also ServiceLane's chief executive
officer.

In December 2000, Messrs. Burchfield and Whitmire ended their
employment with Owens Corning and began their employment with
ServiceLane.

ServiceLane formally remained in business from December 2000
until July 2001.

On July 25, 2001, ServiceLane Holdings Corporation and
ServiceLane initiated separate Chapter 7 proceedings in the U.S.
Bankruptcy Court for the Northern District of Texas.
Thereafter, Messrs. Burchfield and Whitmire commenced a series
of actions against, among others, Owens Corning, Messrs. Thaman
and Mr. Stein.

In 2001, Messrs. Burchfield and Whitmire filed an action in
Texas state court against:

   * Mr. Stein;

   * Glen Hiner, Owens Corning's former CEO;

   * Domenico Cecere, Owens Corning's former CFO and one of the
     original members of ServiceLane's board of directors;

   * David Brown, Owens Corning's CEO; and

   * L. Leonard Blaylock, former ServiceLane president and
     member of the ServiceLane board.

In the Texas Action, Messrs. Burchfield and Whitmire alleged
that each of the defendants breached fiduciary duties owed to
Messrs. Burchfield and Whitmire.  The Texas Action was removed
to the U.S. District Court for the Northern District of Texas.
The Texas Action was dismissed in February 2002.

Messrs. Burchfield and Whitmire filed proofs of claim in the
Debtors' cases asserting claims predicated on fraud and
misrepresentation.

In 2003, Messrs. Burchfield and Whitmire, on their own behalf
and on behalf of ServiceLane, filed suit against Messrs. Thaman
and Stein in the U.S. District Court for the Northern District
of Ohio, alleging that Messrs. Thaman and Stein breached their
fiduciary duty to ServiceLane.  Messrs. Burchfield and Whitmire
voluntarily dismissed the Ohio Action in February 2004.

Owens Corning and Messrs. Thaman and Stein filed separate
adversary actions in the Debtors' Chapter 11 cases against
Messrs. Burchfield and Whitmire.

The Bankruptcy Court consolidated the adversary cases and
litigation ensued.  Messrs. Burchfield and Whitmire, in their
counterclaim, assert compensatory damages totaling
US$32,000,000.  The Counterclaim was dismissed in December 2005.

Mr. Stein and Owens Corning also filed separate motions for
summary judgment seeking a declaratory relief and dismissal of
all claims pending against them in the Consolidated Adversary
Case.  The proceedings with respect to the summary judgment
requests are still pending.

In September 2006, the parties agreed to settle, and advised
Judge Fitzgerald to suspend all matters pending final
documentation and Court approval of the Settlement Agreement.

The parties agree that Owens Corning, on its own behalf and on
behalf of Messrs. Thaman and Stein, will pay Messrs. Burchfield
and Whitmire US$200,000 as combined settlement amount.  The
parties agree to release each other from obligations and
liability relating to the disputes.

                      About Owens Corning

Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the company has locations in
India, Mexico and Belgium.

Headquartered in Toledo, Ohio, the company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, represents the Official Committee of Asbestos
Creditors.  James J. McMonagle serves as the Legal
Representative for Future Claimants and is represented by Edmund
M. Emrich, Esq., at Kaye Scholer LLP. (Owens Corning Bankruptcy
News, Issue No. 146; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

The company's long-term issuer default, senior unsecured debt
and preferred stock carries Fitch's D rating.


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

BANK INDONESIA: To Focus 2007 Policies on Banking Consolidation
---------------------------------------------------------------
Bank Sentral Republik Indonesia's policies this 2007 will be
focused on banking consolidation and intermediation, Antara News
reports, citing BI Deputy Governor Muliaman D Hadad.

According to the report, Mr. Hadad said that consolidation and
intermediation will be the main policy for 2007 and that they
will work hard to identify policies that the Bank could
facilitate.  He stated that BI would intensify contacts with
various parties to find out which sectors could be followed up.

Mr. Hadad related that regulation changes that had been made in
2006 to improve banking intermediation had been very helpful and
that he thinks in 2007, the focus will be on facilitation and
provision of adequate information, Antara notes.

Mr. Hadad, however, noted that banking intermediation had often
not worked well enough due to lack of information.  Yet, the
bank's board of governors decided in a meeting to improve
banking intermediation in the country to meet the funding needs
of businesses.

Antara relates that, according to Mr. Hadad, banking
consolidation would be continued and that he learned that there
had been a lot of negotiations on the matter, adding that banks
that could not meet the minimum capital requirement had to be
prepared.

BI Governor Burhanuddin Abdullah said recently around 50 out of
130 banks in the country had too small assets, thus they could
not compete with other domestic and foreign banks, Antara notes.

The report adds that Mr. Abdullah also said the total number of
banks in the country was also too high and not all of them had a
good capital adequacy ratio so that consolidation was needed to
create a better structure.

Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- was
created by a new Central Bank Act, the UU No. 23/1999 on Bank
Indonesia, enacted on May 17, 1999.  The Act confers it the
status and position as an independent state institution and
freedom from interference by the Government or any other
external parties.

In its capacity as central bank, Bank Indonesia has one single
objective of achieving and maintaining stability of the rupiah
value.  The stability of the value of the rupiah comprises two
aspects, one is stability of rupiah value against goods and
services and the other is the stability of the exchange rate of
the rupiah against other currencies.  The first aspect is as
reflected by the rate of inflation and the second aspect is as
reflected by the development of rupiah exchange rate against
other currencies.

Standard and Poors Rating Services gave Bank Indonesia's long
term foreign issuer credit a B+ rating and long-term local
issuer credit a BB rating, both effective on December 21, 2004.
It also gave its short-term local issuer credit a B rating on
May 12, 2003.


BANK MANDIRI: Bad Loans Less Than 10% of Total Loans by End-2006
----------------------------------------------------------------
PT Bank Mandiri said that its bad loans were less than 10% of
total loans by the end of 2006, Bloomberg News reports, citing
Investor Daily Indonesia.

According to the report, President Director Agus Martowardojo
said that new loans expanded 14% to about IDR14 trillion last
year.

The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Bank Mandiri intends to auction by 2008 about
IDR15 trillion (US$1.6 billion) of bad loans owed by small
borrowers to help reduce delinquent debt and increase profit.

According to the TCR-AP report, Mandiri Chief Financial
Officer Pahala N. Mansury said that in the first half of
2007, the bank plans to sell IDR3 trillion of debt from
borrowers who owe less than IDR300 billion as part of a plan to
cut its net non-performing loan ratio to less than 5% by the end
of 2007.

PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.

According to a report by the Troubled Company Reporter - Asia
Pacific on May 29, 2006, Moody's Investors Service had upgraded
the Bank's subordinated debt rating to Ba3 from Ba1, and its
senior debt rating to Ba3 from Ba1, on higher foreign currency
bond ceilings.

Moody's has given Bank Mandiri an 'E' bank financial strength
rating.

A TCR-AP report on Sept. 19, 2006, stated that Fitch Ratings has
affirmed all the ratings of Bank Mandiri as follows:

   * Long-term foreign and local currency Issuer Default ratings
     'BB-',

   * Short-term rating 'B',

   * National Long-term rating 'AA(idn)',

   * Individual 'D', and

   * Support '4'.


GARUDA INDONESIA: Hopes to Complete Restructuring in June 2007
--------------------------------------------------------------
The Indonesian Government hopes that its current efforts to
restructure national flag carrier PT Garuda Indonesia's debts
and business can be completed by the end of the first semester
of 2007, Antara News reports.

The report cites State Enterprises Minister Sugiharto as saying
that the Government will speed up the restructuring process and
hopefully will finish it before the end of June this year.

Mr. Sugiharto said that the Government and Garuda were still
engaged in talks on several parameters for implementing the
restructuring program, including the selection of strategic
partners.

The Troubled Company Reporter - Asia Pacific reported on
Nov. 23, 2006, that Garuda Indonesia and its shareholders were
in talks with four or five airlines regarding strategic
partnerships, which is the airline's main agenda going forward.

Antara notes that, according to Mr. Sugiharto, Garuda has not
yet decided who the strategic partners will be and that they are
still discussing the criteria for choosing them, the time frame
and a debt restructuring strategy.

Mr. Sugiharto explained that the Government would choose
partners with credibility and adequate financial capacity, as
well as those with expertise and experience in the aviation
business.  Of course, he added, they will not choose those that
have a negative interest in Garuda, the report says.

Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations.  Under its
Citilink brand, it serves another 10 domestic routes.  Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.

The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005.  It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates.  At present, Garuda is concentrating its efforts on
repaying its IDR4.55-trillion debt with foreign creditors under
the European Credit Agency, which were due on December 31,
2005.

Antara News stated that Garuda, as of the end of 2006, is facing
liquidity problems with its debts totaling US$791 million.

The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before, the report
discloses.  Antara pointed out that Garuda's loss until the end
of 2006 was predicted to reach around IDR400 billion.

Garuda is currently undergoing debt restructuring.  The Troubled
Company Reporter - Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.


GOODYEAR TIRE: Fitch Affirms B Issuer Default Rating
----------------------------------------------------
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company and removed the ratings from Rating Watch
Negative.  The ratings were placed on Rating Watch Negative on
Oct. 18, 2006, when the company announced a US$975 million draw
down of its bank revolver.  Goodyear's debt and recovery ratings
are as follows:

   -- Issuer Default Rating (IDR) 'B';

   -- US$1.5 billion first lien credit facility 'BB/RR1';

   -- US$1.2 billion second lien term loan 'BB/RR1';

   -- US$300 million third lien term loan 'B/RR4';

   -- US$650 million third lien senior secured notes 'B/RR4';and

   -- Senior unsecured debt 'CCC+/RR6'.

Goodyear Dunlop Tires Europe BV:

   -- EUR505 million European secured credit
      facilities 'BB/RR1'.

The Rating Outlook is Negative.

The removal of Goodyear's ratings from Rating Watch Negative
follows the ratification of a new union contract by the United
Steelworkers on Dec. 29, 2006.  The new contract runs for three
years and covers approximately 12,600 employees at 12 tire and
engineered products plants in the United States who had been on
strike since Oct. 5, 2006.  A separate contract covering workers
in Canada has also been approved.

The Negative Rating Outlook reflects concerns about weak
operating results and higher levels of debt associated with
costs of the strike and the new contract.  Prior to October when
Fitch placed the ratings on Negative Watch, the Rating Outlook
had been Stable. During the strike, Goodyear borrowed
US$975 million under its bank revolver and issued US$1 billion
of senior unsecured notes to support its liquidity and to
replace US$515 million of debt scheduled to mature by March
2007.

On a pro forma basis, proceeds from the new debt increased
Goodyear's cash balances from US$1.3 billion at Sept. 30, 2006,
to approximately US$2.7 billion.  This amount is adjusted to
exclude cash designated for the US$515 million of near-term debt
maturities and does not reflect the impact of strike-related
costs that Goodyear previously estimated at up to US$35 million
per week.

Goodyear's cash balances would be available to fund a $1 billion
Voluntary Employees' Beneficiary Association (VEBA) trust to be
implemented under the new master contract.  The VEBA trust will
be funded with US$700 million in cash and US$300 million in cash
or common stock at the company's option.  Goodyear will transfer
to the trust all USW retiree medical obligations, thereby
reducing its projected benefit obligation for post-retirement
benefits by more than half.  It expects the VEBA trust
arrangement to improve cash flows related to these benefits by
US$145 million annually.

Goodyear's operating results and cash flow have been pressured
by high raw material costs and by declining tire volumes in
North America.  The company is addressing these trends through
better pricing and by transitioning toward a more favorable
product mix.  Volume declines in original equipment tires
reflect lower vehicle production, while lower volumes for
consumer replacement tire volumes include the impact of weaker
demand as well as Goodyear's decision to exit certain segments
of the low-margin private label tire business.  The planned
closure of the Tyler Texas plant after 2007, along with three
other announced closures, should allow Goodyear to reach its
targeted capacity reduction for private label tires and support
its focus on higher-margin premium tires.

The Rating Outlook could eventually be changed to Stable once
Goodyear returns to normal operations and begins to realize
expected cost reductions.  Any upward revisions in the ratings
and/or Outlook over the longer term would also depend on the
company's ability to generate sufficient cash flow to reduce
debt and leverage and its ability to maintain its competitive
position.  Cash flow should benefit from Goodyear's expected
cost savings that were announced concurrently with the new labor
union agreement.  However, ongoing cash requirements for capital
expenditures and pension contributions are substantial, and
Goodyear's capacity to reduce debt may be limited until market
conditions improve and Goodyear makes further progress in
realizing projected cost savings.

The company estimates that contributions to funded pension plans
will total US$550 million to US$575 million in 2006, US$550
million to US$600 million in 2007 and US$200 million to US$250
million in 2008.  These cash requirements will be partly offset
by a reduction in OPEB cash outflows estimated by Goodyear at
US$145 million annually.

Goodyear's ongoing cost reduction efforts will be facilitated by
its new agreement with the United Steelworkers.  The company has
scheduled a conference call on Jan. 9 in which it will address
specifics of the new contract.  Under Goodyear's cost reduction
plan initiated in 2005, the company targeted cost savings in
excess of US$1 billion by 2008.  By comparison, the company
estimates the new labor contract will support savings, relative
to costs in 2006, of US$610 million through 2009.  The contract
provides for a lower wage structure for new hires and more
flexibility in making productivity improvements.

These benefits should support stronger operating results, but
Goodyear still faces a highly competitive environment in which
its North American cost structure may leave it at a disadvantage
relative to its peers despite expected cost reductions.  The new
contract provides more job security for union workers and
provides for the closure of the Tyler, Texas plant at the end of
2007.  Goodyear will be required to make capital investments in
United Steelworkers plants of at least US$550 million during the
life of the labor contract.

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


GOODYEAR TIRE: S&P Holds Rating on US$46 Mil. Certificates at B-
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' ratings on
the class A-1 and A-2 certificates from the US$46 million
Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-
Backed Series 2001-34 Trust.

Concurrently, the ratings were removed from CreditWatch, where
they were placed with negative implications on Oct. 24, 2006.

Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-
Backed Series 2001-34 Trust is a swap-independent synthetic
transaction that is weak-linked to the underlying securities,
Goodyear Tire & Rubber Co.'s 7% notes due March 15, 2028.


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


INDOSAT: Expects Subscriber Number to Rise 37% in 2007
------------------------------------------------------
PT Indosat Tbk expects its subscribers to increase by 6 million,
or 37%, in 2007, Bloomberg News reports, citing Director Wahyu
Wijayadi.

According to the report, Indosat had about 16 million users at
the end of 2006.

Mr. Wijayadi told reporters that average revenue per user may
decline 5% to 10% this year.

Moreover, Bloomberg notes that Indosat is planning to increase
spending by almost 50% this year to US$1 billion.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 4, 2006, Indosat plans to spend more than US$1 billion
mainly on the development of its cellular services in 2007.

The TCR-AP noted that about 70% to 80% of the company's
investment will go to the development of cellular services,
while the rest will be used to develop multimedia, data
communication and Internet services.

Mr. Wijayadi had said that the rise in investment was also
related to the current positive trend and expected high demand
for cellular phone services in 2007, the TCR-AP said.

Bloomberg points out that the company aims to regain market
share from bigger mobile-phone rivals PT Telekomunikasi Selular
and PT Excelcomindo Pratama.

                         About Indosat

PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia.  The
company is a provider of international long-distance services in
Indonesia.  It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers.  The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers.  Airtime is sold through
postpaid and prepaid plans.  It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services.  MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has affirmed the Ba1 local
currency corporate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat Finance
Company B.V. and Indosat International Finance Company B.V.  The
bonds are irrevocably and unconditionally guaranteed by Indosat.
The outlooks for the ratings remain positive.

A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'.  The outlook on the ratings is
stable.


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

FORD MOTOR: Changan Ford Mazda Automobile Sets All Time Records
---------------------------------------------------------------
Changan Ford Mazda Automobile Co. Ltd.'s December 2006 sales for
Ford Brand marketing, sales, and service business helped
achieved new, record results for 2006.

"2006 has been a truly outstanding year for Changan Ford Mazda
Automobile," Changan Ford Mazda Automobile Sales Company General
Manager David G. Thomas said.

"Our Ford Brand business has exceeded all the challenging
marketing, sales, and service targets that we and our Dealer
partners jointly set for ourselves".

In December, Ford brand retails reached an all time record of
19,401 units, well ahead of the previous record set in
September. Focus was very strong, breaking the 10,000 units in
one-month barrier for the first time and reaching a record
13,955 retails for the month.  Mondeo was also very strong, once
again selling more than 5,000 units for the month to close at
nearly 5,500 retails, and benefiting from the very positive
reception to the new 2007 model.

Full year Ford Brand retails reached 129,790 units, 68,768 units
and 112.7% ahead of last year, easily outpacing the strong
average industry growth and maintaining Changan Ford Mazda
Automobile's Ford Brand as one of the fastest growing franchises
in the industry.

In its first full year, Focus achieved 78,430 retails, well
ahead of expectation and reflecting the strength of both the 3
Box and 2 Box versions of this highly regarded model line.

"Following its launch only a few months ago in September, the
Focus 2 Box has become a very successful model for us", Mr.
Thomas said.

"In December, Focus 2 Box sales [posted] a record at 6,040
units, and were just over 40% mix of total Focus sales, exactly
in line with our plan.  In addition, these are all incremental
sales to Changan Ford Mazda Automobile, since Focus 3 Box sales
also reached an all time record of 7,915 units in December.
Overall, 2006 was a highly successful year for both our Focus
models," he said.

However, Focus was not the only success story for Changan Ford
Mazda Automobile in 2006.  Mondeo performed well, and in line
with the company's comprehensive marketing plan, to reach a
total of 47,651 retails for the year, 15% ahead of last year.

"Mondeo continues to be a very strong model for both us and our
Dealers", Mr. Thomas said.  "Sales continue to grow, and the
recently launched new 2007 model will continue to maintain
strong Mondeo sales for us and our Dealers this year".

Mr. Thomas noted: "Our strong, overall, retail performance was
driven by our Dealer partners eagerly taking all the vehicles we
could produce.  The demand has been so strong for all our models
that we have emptied our vehicle storage compounds.  Our
colleagues in Manufacturing are now working hard to meet this
continuing strong demand for Ford vehicles in time for the
Chinese New Year".

This exceptional performance allowed Changan Ford Mazda
Automobile's Ford brand wholesales for the year to reach 131,079
units, 68,154 units and 108.3% ahead of last year, and just
exceeding the ambitious target that Changan Ford Mazda
Automobile and its Dealers jointly set for themselves.

In addition to strong vehicle sales, Changan Ford Mazda
Automobile exceeded its plan to double parts and accessory sales
for the year, and was able to do this while still maintaining an
extremely high "First Time Fill" parts supply performance to
ensure that its growing family of customers was able to get the
parts they want quickly and efficiently.

Extremely strong growth in its Sales and Service Customer
Satisfaction performance was also reported, closing the year
well ahead of the Company's objectives for the year, and at
nearly double the level of last year.

"We could not have achieved these results without a strong
partnership with our Dealers," Mr. Thomas said.  "For the second
year in a row, we have opened a new 4S Dealer each week, showing
strong and growing demand for the Changan Ford Mazda Automobile
Ford Brand franchise, not just from new business partners, but
also from our existing Dealers who want to grow their businesses
with us.  Together we have both had a very strong year".

These comments were echoed by Feng Shouming, Chairman of Wuhan
Headman Automobile Co., Ltd. and Chairman of the Changan Ford
Mazda Automobile Ford Brand Dealer Council: "The strategies and
plans put in place this year have been what the Changan Ford
Mazda Automobile Ford Brand dealers have needed to grow their
businesses in the very competitive China market.  We have a very
close and beneficial working relationship with the Changan Ford
Mazda Automobile team, and this has allowed us to jointly exceed
all our targets for the year and strengthen this valuable
franchise.  All my dealer colleagues and I are looking forward
to more new Ford models and an even more successful year in
2007".

Mr. Thomas concluded: "We have been one of the fastest growing
automotive franchises in the competitive Chinese market so far
this year.  With these outstanding results in December, achieved
in partnership with our Dealers, we have jointly closed the most
successful year in our short history ahead of our expectations.
We are confident they will ensure that the Changan Ford Mazda
Automobile Ford Brand franchise remains one of the fastest
growing franchises in the most dynamic automotive market in the
world."

                       About Ford Motor Co.

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

The company also has operations in Japan.

                          *     *     *

On Dec. 11, 2006, Standard & Poor's Ratings Services affirmed
its 'B' bank loan and '2' recovery ratings on Ford Motor Co.
after the company increased the size of its proposed senior
secured credit facilities to between US$17.5 billion and
US$18.5 billion, up from US$15 billion.

On Dec. 6, 2006, Fitch Ratings downgraded Ford Motor Company's
senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the
increase in size of both the secured facilities and the senior
unsecured convertible notes being offered.

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


FORD MOTOR: Teams Up with Microsoft for In-Car Digital System
-------------------------------------------------------------
Ford Motor Company announced the launch of a new factory-
installed, in-car communications and entertainment system that
is designed to change the way consumers use digital media
portable music players and mobile phones in their vehicles.

The Ford-exclusive technology based on Microsoft Auto software,
called Sync, provides consumers the convenience and flexibility
to bring into their vehicle nearly any mobile phone or digital
media player and operate it using voice commands or the
vehicle's steering wheel or radio controls.

Ford owners will not need to worry about whether their car or
truck is compatible with the latest phone or music player that
hits the market.  Sync seamlessly integrates the vehicle with
the popular portable electronic devices of today and is
upgradeable to support the devices and services of tomorrow.

"Sync is what today's generation and today's drivers demand in
connectivity," Ford Motor Company group vice president for
product development Derrick Kuzak says.

"Not only does it offer hands-free phone operation and iPod(R),
Zune or MP3 player connectivity, it's built on a software
platform that is upgradeable and will allow us to offer new
features by simply upgrading the software."

Sync offers consumers two ways to bring electronic devices into
their Ford, Lincoln, and Mercury vehicles and operate them
seamlessly through voice commands or steering wheel controls:

   * Bluetooth, for wireless connection of phones and phones
     that play music.

   * A USB 2.0 port for command and control and charging of
     digital media players -- including the Apple iPod and
     Microsoft Zune -- as well as PlaysForSure music devices and
     most USB media storage devices.  Supported formats include
     MP3, AAC, WMA, WAV, and PCM.

The ability to upgrade Sync, control all portable electronic
devices via voice commands, offer a USB port to connect storage
devices and recharge electronics puts this technology well
beyond technology available today -- including Bluetooth, hands-
free offerings or portable music device connections.

"More than 80% of U.S. households use cell phones, and 60
million digital music devices have been sold.  That's a 50%
increase from just 2005," Mr. Kuzak said.  "With such market
growth led by consumers' needs, Sync is the right new technology
at the right time for Ford, Lincoln, and Mercury vehicles."

Sync will debut this calendar year on the 2008 Ford Focus,
Fusion, Five Hundred, Edge, Freestyle, Explorer, and Sport Trac;
Mercury Milan, Montego, and Mountaineer; and Lincoln MKX and
MKZ.  The technology will be on all Ford, Lincoln, and Mercury
vehicles in the near future.

"Ford and Microsoft share a vision for a future where drivers
are safely connected to the people, information and
entertainment they care about while they are on the road,"
Microsoft Corporation Chairman Bill Gates said.

"Built on Microsoft Auto technology, Ford Sync delivers an in-
car system that is an important step toward achieving this
vision. Using software that bridges the automotive and consumer
electronics industries, Sync will help revolutionize the driving
experience by providing a simple system that intelligently
connects mobile phones, music players, and more."

                           Sync Features

   * Voice-activated, hands-free calling: Simply press the "Push
     to Talk" button on the steering wheel, and then say the
     name of the person you wish to call.  Sync will
     automatically connect with the names in the mobile phone's
     contact list.

   * Uninterrupted connections: No need to hang up in the middle
     of a cell phone call as you enter your vehicle.  Simply
     touch the Telephone Button on the steering wheel, and Sync
     will instantly connect to a Bluetooth phone.

   * Audible text messages: Sync will convert text messages from
     your phone to audio and read it out loud.  The system is
     even smart enough to translate such commonly used text
     messaging expressions as "LOL" and J.  You can choose to
     reply from any of 20 predefined responses.

   * Advanced calling features: Sync includes the same features
     offered on mobile phones, including caller ID, call
     waiting, conference calling, a caller log, a list of
     contacts, a  signal strength icon, and a phone battery
     charge icon -- all conveniently located on the radio's
     display screen.

   * Voice-activated music: Browse the music collection on your
     digital media player, mobile phone or USB drive by genre,
     album, artist and song title using simple voice commands,
     such as "Play genre Rock," "Play," or "Play Track."

   * Instant voice recognition: Sync's advanced voice
     recognition technology means when you're ready to use your
     phone or digital music player, just speak simple voice
     commands.

   * Ring tone support: For supported phones, Sync will play
     personal ring tones.  If you've configured unique ring
     tones to identify specific callers, Sync will automatically
     play those, too.

   * Automatic phonebook transfer: Sync will automatically and
     wirelessly transfer all the names and numbers in a mobile
     phonebook.

   * Multilingual intelligence: Sync is fluent in English,
     French and Spanish.

                       About Ford Motor Co.

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

The company also has operations in Japan.

                          *     *     *

On Dec. 11, 2006, Standard & Poor's Ratings Services affirmed
its 'B' bank loan and '2' recovery ratings on Ford Motor Co.
after the company increased the size of its proposed senior
secured credit facilities to between US$17.5 billion and
US$18.5 billion, up from US$15 billion.

On Dec. 6, 2006, Fitch Ratings downgraded Ford Motor Company's
senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the
increase in size of both the secured facilities and the senior
unsecured convertible notes being offered.

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


NIKKO CORDIAL: Seeks Short-Term Funding from Mizuho Corporate
-------------------------------------------------------------
Nikko Cordial Corp. asked Mizuho Corporate Bank and other
financial institutions for short-term funding, Kyodo News
reports.

According to the report, Nikko Cordial executives are also
apparently considering asking the bank and other major
shareholders to raise their stakes slightly in the brokerage
firm.

The report relates that this move is part of Nikko Cordial's
attempt to restore customer trust.

The Japan Times points out that since it got entangled in an
accounting scandal, Nikko Cordial, which also has a capital tie-
up with Citigroup Inc. of the United States, has been losing
customers.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 22, 2006, the Securities and Exchange Surveillance
Commission began investigating Nikko Cordial for
allegedly falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.

On Dec. 18, Nikko Cordial admitted to the falsification of its
fiscal 2004 financial report and said it would revise the
figures and reissue the report by Jan. 15.  Nikko Cordial
initially reported a consolidated pretax profit of
JPY77.7 billion and a net profit of JPY46.9 billion between
April 2004 and March 2005, but said it would revise the figures
to JPY58.8 billion in pretax profit and JPY35.1 billion in net
profit, the TCR-AP report stated.

A subsequent TCR-AP report on Jan. 3, 2007, stated that Nikko
Cordial announced that the release of its corrected group
earnings report for financial year 2004 will be
delayed until Feb. 28, 2007, because it has changed auditors.

The revision led the SESC to recommend that the Financial
Services Agency take disciplinary action against the company.
The FSA then slapped a JPY500-million fine on Nikko Cordial.

The Times recounts that Nikko Cordial and Mizuho Corporate Bank
entered into a capital alliance deal in December 2004.  The
bank, which is under the wing of Mizuho Financial Group Inc.,
held a 4.82% stake in Nikko Cordial as of March 2006.

                About Nikko Cordial Corporation

Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field.  The Company
operates in four business segments.  The Retail segment provides
consulting services for financial products management.  The
Asset Management segment provides asset management services for
individual, corporate and foreign investors.  The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services.  The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products.  Nikko Cordial has 62
consolidated subsidiaries.  It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore.  The
Company has a global network.

On April 12, 2006, Fitch Ratings upgraded Nikko Cordial Corp.'s
individual rating to C from C/D.

The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that Fitch placed its ratings on Nikko
Cordial Corp. and Nikko Cordial Securities Inc. on Rating Watch
Negative following the decision announced on Dec. 18 by the
Tokyo Stock Exchange to place the shares of NCC on its official
watchlist pending the full investigation into reported
accounting breaches by the company.


NOVOLIPETSK STEEL: Earns RUR2.07 Billion in Stake Disposals
-----------------------------------------------------------
Novolipetsk Steel OJSC completed the disposal of its stakes of:

   -- 14.11% in OJSC Lipetskenergo,
   -- 14.11% in OJSC Lipetskenergosbyt,
   -- 2.7% in OJSC TGK-4,
   -- 14.11% in OJSC Lipetsk supply network,
   -- 19.39% in OJSC Lipetskoblgaz, and
   -- 51% in OJSC LGEK.

The disposal is in line with NLMK's recently announced
sustainable growth strategy for 2007-2011.  One of the key
elements of this strategy is an optimization of the asset
portfolio of the Company.  According to the decision of the
Board of Directors of February 2006, NLMK's stakes in energy
assets were classified as non-core investments.  Minority stakes
in regional energy companies are not considered strategic since
they do not lead to control or influence over those companies'
operating activities.

Before the transaction was agreed, an independent evaluation of
the energy companies was performed.  Most of these companies are
non-public business organizations and the stakes in those
companies are low liquid.  The disposal was performed at 10%
premium to the value established by the independent valuation or
three-month average market price of corresponding securities
where available.  The stakes in all energy companies were sold
to Immenso Enterprises Limited, which is controlled by NLMK's
main shareholder.

The transaction was closed at these prices:

                                        Final Price
      Energy Firm                      (in millions)
      -----------                       -----------
      OJSC Lipetskenergo                RUR417
      OJSC Lipetskenergosbyt            RUR11
      OJSC TGK-4                        RUR1,032
      OJSC Lipetsk supply network       RUR96
      OJSC Lipetskoblgaz                RUR415
      OJSC LGEK                         RUR99

The total cash consideration received is RUR2.07 billion.
Proceeds from the transaction will be directed to the
modernization and development of in-house energy facilities.

Headquartered in Lipetsk, Russia, Novolipetsk Steel --
http://www.nlmksteel.com/-- manufactures pig iron, slabs, hot-
rolled steel, and a variety of value-added steel products, such
as cold-rolled sheet, electrical steel and other specialty flat
products.  The group also operates in Japan.

The Troubled Company Reporter - Europe reported on Dec. 21,
2006, that Moody's Investor's Service upgraded the corporate
family rating for Novolipetsk Steel from Ba2 to Ba1.  The
outlook for the rating is stable.  The Moody's Interfax Rating
Agency has upgraded the national scale rating for NLMK from
Aa2.ru to Aa1.ru.

The Troubled Company Reporter - Asia Pacific noted on Dec. 6,
2006, that Standard & Poor's Ratings Services said that its
ratings and outlook on Novolipetsk Steel (NLMK;
BB+/Stable/--; Russia national scale 'ruAA+') are unchanged by
the announcement of NLMK's acquisition of a 50% share in a joint
venture with Duferco Group for US$850 million.


SANYO ELECTRIC: Partners with Animon for Wireless HD Projector
--------------------------------------------------------------
AMIMON Inc., an emerging leader in semiconductor technology for
wireless transmission of high-definition video, has partnered
with CE giant SANYO Electric Co., Ltd. to demonstrate the
world's first wireless high-definition projector in SANYO's
booth, Central Hall #11017, at CES.  The SANYO projector is
embedded with AMIMON's innovative Wireless High-definition
Interface technology.

In the booth, attendees and exhibitors will witness a SANYO HD
projector displaying HD content it receives wirelessly via WHDI
link from an HD-DVD player.  This AMIMON and SANYO demonstration
will highlight WHDI's ability to deliver uncompressed HD video
to HD displays from CE devices.  AMIMON's WHDI technology
achieves the same quality and speed consumers currently enjoy
with standard HD video inputs, including HDMI(TM), DVI and
component video.

"Integrating AMIMON's WHDI technology in a SANYO HD projector is
an appealing idea to consumers, prosumers and installers who are
ready to take the next step in the home viewing and
entertainment experience by freeing themselves from a wired
mess," said Kazuto Sugimura, senior manager, SANYO Electronic
Co., Ltd. AV company, Projector Technology BU, Product
Development Department.  "Additionally, WHDI's ability to
deliver flawless uncompressed HD streams was a key ingredient
and differentiator in our selection of AMIMON's technology."

A wireless SANYO projector is an ideal solution in a variety of
settings: corporate boardrooms, arenas, home theaters, trade
shows, conference centers, amphitheaters, showgrounds, etc.  The
flexibility and ease-of-use of a wireless projector opens the
door to many possible applications.

"The installation of HD projectors has traditionally been
exasperating and expensive because of the hassles of connecting
wires between CE devices.  WHDI eliminates these costs and
simplifies the process, delivering the same quality picture as
would be received over a wired connection," said Noam Geri,
AMIMON's vice president of marketing and business development.
"This demo with SANYO establishes that uncompressed wireless HD
video is here now and WHDI is the technology of choice."

Developer kits of AMIMON's WHDI technology are currently
available.  The developer kits enable consumer electronics
manufacturers to test and validate the uncompressed high-quality
HD performance of AMIMON's WHDI technology.  Manufacturers can
then design CE devices (DVD players, set-top boxes, computers,
gaming consoles, etc.) that are integrated with WHDI, freeing
the home of the tangled web of wires.

                           About WHDI

AMIMON's WHDI(TM) technology enables wireless transmission in
the 5GHz unlicensed band of uncompressed HD video streams with
equivalent video data rates of up to 3 Gbps (including 1080p)
using 40 MHz of bandwidth in compliance with FCC regulations.
Video data rates of up to 1.5 Gbps (including 1080i and 720p)
can be delivered using 20 MHz of bandwidth, conforming to
worldwide 5GHz spectrum regulations.  WHDI has been demonstrated
at ranges of up to 100 feet through walls, and has a latency of
less than one millisecond.  All other wireless solutions are
limited to delivering compressed video such as MPEG, which is
typically not available at the output of most consumer
electronics video devices.

                          About AMIMON

AMIMON is a fabless semiconductor company pioneering wireless
uncompressed high-definition video for universal connectivity
among CE video devices.  AMIMON's uncompressed Wireless High-
definition Interface (WHDI) allows flat-panel televisions and
multimedia projectors to wirelessly interface to all HDTV video
sources at a quality equivalent to that achieved with wired
interfaces such as component video, DVI and HDMI(TM).

The company is headquartered in Herzlia, Israel, with offices in
Santa Clara, Calif., USA, and Tokyo, Japan.  More information is
available at http://www.amimon.com/

                      About Sanyo Electric

Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.

The company has global operations in Brazil, Germany, India,
Ireland, Spain, the United States and the United Kingdom, among
others.

The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that Fitch Ratings has affirmed the 'BB+'
Long-term foreign and local currency Issuer Default and senior
unsecured ratings on Sanyo Electric Co., Ltd.  The Outlook on
the ratings remains Stable.  The rating affirmations follow
Sanyo's latest downward revision of its forecast for the fiscal
year ending March 2007, reflecting the difficulty of its
operating environment, the need for additional restructuring
activities, as well as the recent recall of its rechargeable
batteries.  Fitch says Sanyo's revised forecast is in line with
the agency's expectation for the company at the time of
assigning the current ratings.

The TCR-AP also reported on Dec. 20, 2006, that Standard &
Poor's Ratings Services lowered to 'BB-' from 'BB'
its long-term corporate credit rating on Sanyo Electric.
At the same time, Standard & Poor's lowered to 'BB' from 'BB+'
its issue ratings on Sanyo Electric's senior unsecured debt.
The outlook on the long-term credit rating is negative.  The
ratings were removed from CreditWatch, where they were placed on
Nov. 22, 2006.


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

BIOVEST INTERNATIONAL: Aidman Piser Raises Going Concern Doubt
--------------------------------------------------------------
Aidman Piser & Company P.A., in Tampa, Florida, expressed
substantial doubt about Biovest International Inc.'s ability to
continue as a going concern after auditing the company's
financial statements for the year ended Sept. 30, 2006.  The
auditing firm cited that the company incurred significant losses
and used cash in operating activities during the years ended
Sept. 30, 2006 and 2005, and had working capital and
shareholders' deficits at Sept. 30, 2006.

Biovest International Inc. reported a US$13.7 million net loss
on US$7.3 million of total revenues for the fiscal year ended
Sept. 30, 2006, compared with an 11.5 million net loss on
US$5.1 million of total revenues for fiscal 2005.

The overall increase in revenue was due to increased contract
cell culture manufacturing and instrument hardware sales.
Instrument and disposable sales increased to US$4.6 million in
fiscal 2006 from US$3 million in fiscal 2005.

The US$2.2 million increase in net loss is primarily due to the
US$2.1 million increase in research and development expenses,
the US$967,000 increase in marketing, general and administrative
expenses, and the US$1.5 million increase in interest expense,
partly offset by a US$193,000 derivative gain and the US$71,000
increase in other income/expense, which more than offset the
gross profit increase of US$2.1 million.

The overall gross margin for the fiscal 2006 increased to
approximately 47% from 26% in the prior year.  This was due to
improved hardware sales, more optimal product mix and improved
production results.  Included in cost of sales in fiscal 2005
was an inventory write off of approximately US$400,000,
representing primarily inventory on-hand in the June 2003
Accentia acquisition of a controlling interest in Biovest, and
determined in the fiscal 2005 to be obsolete.

Research and vaccine development expenses for fiscal 2006
increased due to increased spending for the BiovaxID Phase 3
clinical trial and continued development of the company's
automated instrument, AutovaxID.

Marketing and general and administrative expenses during fiscal
year 2006 increased primarily due stock compensation expense of
US$500,000, compared to zero in fiscal 2005.  The remainder of
the increase in marketing, general, and administrative expenses
came mostly from costs related to increased professional fees.

Interest expense increased due to the issuance of the Laurus
notes payable and associated discount amortization and expense
associated with guarantees.

The company also allocated a portion of the Laurus debt to a
derivative liability.  The derivative liability is valued at the
end of each quarter, and adjusted accordingly.  In the fourth
quarter of fiscal 2006, the company recorded a US$193,000 gain
on change in derivative liability.

At Sept. 30, 2006, the company's balance sheet showed US$8.4
million in total assets, US$15.4 million in total liabilities,
US$3.6 million in variable interest entities, and US$6 million
in non controlling interest in consolidated subsidiary,
resulting in a US$16.5 million total stockholders' deficit.

The company's balance sheet at Sept. 30, 2006, also showed
strained liquidity with US$4.3 million in total current assets
available to pay US$13.3 million in total current liabilities.

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

               http://researcharchives.com/t/s?17f9

                          Laurus Financing

On Mar. 31, 2006, the company closed a financing transaction
with Laurus Master Fund Ltd. whereby Laurus purchased from the
company a secured promissory note in the principal amount of
US$7.8 million and a warrant to purchase up to 18,087,889 shares
of common stock at an exercise price of US$.01 per share.  The
proceeds of the transaction were placed in a restricted account
requiring Laurus' consent before release and was intended to be
used in connection with NMTC related financings.

On Apr. 26, 2006, US$2.5 million of the restricted funds was
released in connection with the first NMTC transaction and on
Aug. 2, 2006, an additional sum of US$2.5 million was released
pursuant an amendment to the Restricted Account Agreement and
Side Letter Agreement.  The final US$2.5 million was released in
connection with a second NMTC transaction in December 2006.

                    About Biovest International

BioVest International, Inc. -- http://www.biovest.com/-- is a
biotechnology company that provides cell culture services to
research institutions and the biopharmaceutical industry.
BioVest also develops, manufactures and markets cell culture
systems.  For over 10 years the company has been designated, by
the National Institutes of Health, as the National Cell Culture
Center.  Through its proprietary technology, BioVest provides
cell culture services to research institutions, biotechnology
companies and the pharmaceutical industry.  The company is the
holder of a Cooperative Research and Development Agreement with
the National Cancer Institute for the commercialization of a
personalized biologic therapeutic cancer vaccine for the
treatment of non-Hodgkin's lymphoma currently in its phase III
pivotal trial.

The company has sales offices in Korea, China, Europe, Japan,
Singapore, and Taiwan.


DURA AUTOMOTIVE: Seeks Court Nod for Lease Rejection Procedures
---------------------------------------------------------------
DURA Automotive Systems, Inc. and its debtor affiliates,
pursuant to Sections 365 and 554 of the Bankruptcy Code, seek
the approval of the United States Bankruptcy Court for the
District of Delaware for an expedited procedure for rejecting
executory contracts and unexpired leases of personal and non-
residential real property.

Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, relates that the Debtors are in the
process of consolidating their operations, which may require
exiting non-core and unprofitable locations, returning
unnecessary equipment, and terminating burdensome contracts in
order to minimize costs and strengthen the businesses.

In connection therewith, the Debtors anticipate that, in a very
short time, they will seek to reject a number of real property
leases, personal property leases, and executory contracts.
Absent expedited procedures for managing this process, the
Debtors will inevitably suffer delays and resulting
administrative costs, which could be significant, Mr. Collins
avers.

The Debtors request that these procedures be approved in
connection with the rejection of any executory contract, lease,
sublease, or interest in the lease or sublease during the course
of their bankruptcy proceedings:

    a. The Debtors will file a notice to reject any executory
       contract, lease or sublease, or interest in the lease or
       sublease, pursuant to Section 365 and will serve the
       Notice, as well as the deadlines and procedures for
       filing objections to the Notice, via overnight delivery
       service upon:

         (i) the United States Trustee;

        (ii) counsel to the agent to the Debtors' prepetition
             secured lenders;

       (iii) counsel to the agent to the Debtors' postpetition
             secured lenders;

        (iv) counsel to the Official Committee of Unsecured
             Creditors;

         (v) the contract counter-party or landlord(s) affected
             by the Notice, and

        (vi) any other parties-in-interest to the executory
             contract or lease, including subtenants, if any,
             sought to be rejected by the Debtors.

       If the Notice is issued by the Debtors prior to the
       effective date of a plan of reorganization, the affected
       executory contract, lease, sublease or interest in the
       lease or sublease will be deemed to be subject to a
       motion to reject for all purposes.

    b. The Notice will set forth this information, to the best
       of the Debtors' knowledge, as applicable:

         (i) the street address of the real property underlying
             the lease or sublease, the interest in the personal
             property lease or sublease or the type of executory
             contract which the Debtors seek to reject;

        (ii) the Debtors' monthly payment obligation, if any,
             under the contract, lease or sublease or interest
             in the lease or sublease;

       (iii) the remaining term of the contract, lease or
             sublease or interest in the lease or sublease;

        (iv) the name and address of the contract counterparty,
             landlord or subtenant;

         (v) a general description of the terms of the executory
             contract or lease; and

        (vi) a disclosure describing the procedures for fling
             objections, if any.

    c. Should a party-in-interest object to the proposed
       rejection by the Debtors of an executory contract, lease
       or sublease, or interest in the lease or sublease, the
       party must file and serve a written objection so that the
       objection is filed with the Court and is actually
       received by these parties no later than 10 days after the
       date the Debtors serve the Notice:

         (i) counsel to the Debtors: Kirkland & Ellis LLP, 200
             East Randolph Drive, Chicago, Illinois 60601, Attn:
             Ryan Blaine Bennett, Esq., and Richards, Layton &
             Finger, One Rodney Square, 920 N, King Street,
             Wilmington, Delaware 19801, Attention: Daniel J.
             DeFranceschi, Esq.;

        (ii) counsel to the Creditors Committee; and

       (iii) the Office of the United State Trustee.

    d. Absent an objection, the rejection of the executory
       contract, lease or sublease, or interest in the lease or
       sublease, will become effective 10 days from the date the
       Notice was served on the Service Parties without further
       notice, hearing or order of the Court; provided, however,
       that with respect to leases or subleases for non-
       residential real property, the rejection will become
       effective on the later of:

         (x) the Rejection Date or

         (y) the date the Debtors unequivocally relinquished
             control of the premises to the affected landlord by
             turning over keys or "key codes" to the affected
             landlord.

    e. If a timely objection is filed that cannot be resolved,
       the Court will schedule a hearing to consider the
       objection only with respect to the rejection of any
       executory contract, lease or sublease, or interest in the
       lease or sublease, as to which an objection is properly
       filed and served.  If the Court upholds the objection and
       determines the effective date of rejection of the
       executory contract, lease or sublease, or interest in the
       lease or sublease, that date will be the rejection date.
       If the objection is overruled or withdrawn or the Court
       does not determine the date of rejection, the rejection
       date of the lease, sublease or interest will be deemed to
       have occurred on the Rejection Date or NRP Lease
       Rejection Date, as applicable.

    f. If the Debtors have deposited funds with a lessor or
       contract counterparty as a security deposit or other
       arrangement, the lessor or contract counterparty may not
       set-off for otherwise use the deposit without the prior
       authority of the Court.

    g. With respect to any personal property of the Debtors
       located at any of the premises subject to any Notice, the
       Debtors will remove the property prior to the expiration
       of the period within which a party must file and serve a
       written objection.  If they determine that the value of
       the property at a particular location has a de minimis
       value or cost of removing the property exceeds the
       value of the property, the Debtors will generally
       describe the property in the Notice and, absent a timely
       objection, the property will be deemed abandoned
       pursuant to Section 554, as is, where is, effective as of
       the date of the rejection of the underlying unexpired
       lease.

The Debtors further request that counterparties to executory
contracts, leases or subleases, or interests in the leases and
subleases that are rejected pursuant to the Rejection Procedures
be required to file a proof of claim relating to the rejection
of the executory contract, lease or sublease, or interest in the
lease or sublease, if any, by the later of:

   (a) the claims bar date established in the Chapter 11 cases,
       if any; and

   (b) 30 days after the Rejection Date.

The Debtors believe that the Rejection Procedures provide a fair
and efficient manner for rejecting contracts, leases, subleases,
and interests in leases and subleases.

Mr. Collins asserts that the Rejection Procedures will enable
the Debtors to minimize their unnecessary postpetition
obligations while also providing parties-in-interest with
adequate notice of lease and contract rejections and an
opportunity to object to the rejection within a definitive time
period.

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.  The company has three locations in Asia, namely in
China, Japan and Korea.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Fitch Ratings placed one tranche from one
public collateralized debt obligation and one tranche from
private CDO on Rating Watch Negative following Dura Automotive
Corp.'s filing for protection under Chapter 11.

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.

                          *     *     *

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTO: Intercompany Claims Tagged as Admin. Priority Expense
----------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
granted, on a final basis, DURA Automotive Systems, Inc. and its
debtor affiliates, request to accord administrative priority
expense status all Intercompany Claims against a Debtor by
another Debtor or a non-debtor affiliate arising after the
Debtors' bankruptcy filing.

The request was to ensure each individual Debtor will not fund
the operations of another entity.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that the Debtors maintain
business relationships with each other and non-debtor
affiliates.  Thus, according to him, there are numerous
intercompany claims that reflect intercompany receivables and
payments made in the ordinary course of the Debtors' businesses,
including, but not limited to:

   (a) Accrued interest -- The Debtors and non-debtor affiliates
       owe interest between and among each other on outstanding
       Intercompany Claims.  Accrued interest is charged monthly
       based on the net Intercompany Claims outstanding at the
       end of that month;

   (b) Administrative fees -- Certain Debtors are charged a
       percentage of their sales in exchange for marketing
       support from the Debtors;

   (c) Centrally-billed expenses -- In the ordinary course of
       business, the Debtors incur centrally billed expenses,
       like insurance, premiums, payroll, 401k payments,
       benefits, payroll taxes, workman's compensation
       obligations, and technology equipment;

   (d) Intercompany loans -- In the ordinary course of business,
       the Debtors and non-debtor affiliates make loans between
       and among each other to fund operations and make
       acquisitions;

   (e) Royalties -- Royalties are charged either with reference
       to costs incurred or as a percentage of sales to certain
       Debtors and non-debtors for the use of technology and
       other intellectual property of the Debtors; and

   (f) Trade receivables and trade payables -- In the ordinary
       course of business, and as a result of the Debtors' Cash
       Management System, certain Debtors receive checks and
       wire transfers from customers and fund payables on behalf
       of various other Debtors.  The Debtors' intercompany
       accounts reflect the net position of both receipts and
       disbursements received or made on behalf of other
       Debtors.

Mr. DeFranceschi asserts that if Intercompany Claims are
accorded administrative priority expense status, each entity
utilizing funds flowing through the Cash Management System will
continue to bear ultimate repayment responsibility for those
ordinary course transactions.

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.  The company has three locations in Asia, namely in
China, Japan and Korea.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Fitch Ratings placed one tranche from one
public collateralized debt obligation and one tranche from
private CDO on Rating Watch Negative following Dura Automotive
Corp.'s filing for protection under Chapter 11.

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.

                          *     *     *

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent
---------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
allowed DURA Automotive Systems, Inc. and its debtor affiliates
to employ Kurtzman Carson Consultants, LLC, as their notice,
claims and balloting agent.

The Debtors have approximately 84,000 potential creditors.  The
office of the Clerk of the Bankruptcy Court for the District of
Delaware is not equipped to efficiently and effectively serve
notice on the large number of creditors and parties-in-interest
and administer claims during the Debtors' Chapter 11 cases.
"The sheer size and magnitude of the Debtors' creditor body
makes it impracticable for the Clerk's Office to undertake that
task," Keith Marchiando, chief financial officer, says.

Kurtzman Carson is expected to:

   (a) prepare and serve required notices in the Debtors'
       Chapter 11 cases:

          * a notice of the commencement of the Reorganization
            Cases and the initial meeting of creditors under
            Section 341(a) of the Bankruptcy Code;

          * a notice of the claims bar date;

          * notices of objections to claims;

          * notices of any hearings on a disclosure statement
            and confirmation of a plan or plans of
            reorganization; and

          * other miscellaneous notices as the Debtors or the
            Court may deem necessary or appropriate for an
            orderly administration of the Debtors' Chapter 11
            cases;

   (b) within three business days after the service of a
       particular notice, prepare for filing with the Clerk's
       Office a certificate or affidavit of service that
       includes an alphabetical list of persons on whom the
       notice was served, along with their addresses, and the
       date and manner of service;

   (c) maintain copies of all proofs of claim and proofs of
       interest filed;

   (d) maintain official claims registers by docketing all
       proofs of claim and proofs of interest in a claims
       database that includes this information for each claim or
       interest asserted:

          * the name and address of the claimant or interest
            holder and any agent thereof, if the proof of claim
            or proof of interest was filed by an agent;

          * the date the proof of claim or proof of interest was
            received by Kurtzman and the Court;

          * the claim number assigned to the proof of claim or
            proof of interest; and

          * the asserted amount and classification of the claim;

   (e) implement necessary security measures to ensure the
       completeness and integrity of the claims registers;

   (f) transmit to the Clerk's Office a copy of the claims
       registers on a weekly basis unless requested more or less
       frequently by the Clerk's Office;

   (g) maintain an up-to-date mailing list for all entities that
       have filed proofs of claim or proofs of interest and make
       that list available upon request to the Clerk's Office or
       any party-in-interest;

   (h) provide access to the public for examination of copies of
       the proofs of claim or proofs of interest filed without
       charge during regular business hours;

   (i) record all transfers of claims pursuant to Rule 3001(e)
       of the Federal Rules of Bankruptcy Procedure and, if
       directed by the Court, provide notice of those transfers
       as required by Bankruptcy Rule 3001(e);

   (j) comply with applicable federal, state, municipal, and
       local statutes, ordinances, rules, regulations, orders,
       and other requirements;

   (k) provide temporary employees to process claims as
       necessary;

   (l) promptly comply with further conditions and requirements
       as the Clerk's Office or the Court may at any time
       prescribe;

   (m) provide other claims processing, noticing, balloting, and
       related administrative services as may be requested from
       time to time by the Debtors; and

   (n) act as balloting agent, which may include some or all of
       these services:

          * printing of ballots, including the printing of
            creditor and shareholder specific ballots;

          * preparing voting reports by plan class, creditor, or
            shareholder and amount for review and approval by
            the client and its counsel;

          * coordinating the mailing of ballots, disclosure
            statement, and plan of reorganization to all voting
            and non-voting parties, and provide affidavit of
            service;

          * establishing a toll-free "800" number to receive
            questions regarding voting on the plan; and

          * receiving ballots at a post office box, inspecting
            ballots for conformity to voting procedures, date
            stamping and numbering ballots consecutively, and
            tabulating and certifying the results.

In addition, at the Debtors' request, Kurtzman will assist the
Debtors with, among other things:

   (1) preparing and mailing customized proofs of claim to the
       creditors listed on the Debtors' Schedules of
       Liabilities,

   (2) preparing, mailing, and tabulating ballots of certain
       creditors for the purpose of voting to accept or reject
       the plan or plans of reorganization; and

   (3) any other additional services requested by the Debtors.

Kurtzman will bill:

   Professional                                    Hourly Rate
   ------------                                    -----------
   Clerical -- data input                         US$40 - US$65

   Project Specialist -- document management
   and case administration                        US$75 - US$115

   Consultant -- general consulting;
   document and data review                      US$125 - US$210

   Senior Consultant -- general consulting;
   document and data review                      US$225 - US$250

   Technology and Programming Consultant
   -- KCC Case View maintenance and support      US$115 - US$195

The firm will send copies of its monthly invoices to the United
States Trustee.

With its appointment as notice, claims and balloting agent,
Kurtzman:

    -- is not and will not be employed by any federal or state
       agency and will not seek any compensation from the
       Government;

    -- by accepting employment in the Debtors' cases, waives any
       right to receive compensation from the Government;

    -- is not an agent of the Government and is not acting on
       behalf of the Government;

    -- will not misrepresent any fact to the public; and

    -- will not employ any past or present employees of the
       Debtors for work involving the Chapter 11 cases.

Eric Kurtzman, chief executive officer of Kurtzman Carson
Consultants LLC, assures the Court that to the best of his
knowledge, the officers and employees of his firm:

   (a) do not have any adverse connection with the Debtors, the
       Debtors' creditors or any other party-in-interest or
       their attorneys and accountants, the United States
       Trustee, or any person employed by the office of the U.S.
       Trustee; and

   (b) do not hold or represent an interest adverse to the
       Debtors' estates.

Mr. Kurtzman attests that his firm is a "disinterested person"
as that term is defined in Section 101(14) of the Bankruptcy
Code, as modified by Section 1107(b).

Prior to the Debtors' bankruptcy filing, Kurtzman performed
certain professional services for the Debtors.  The Debtors
provided the firm with a US$100,000 advance payment retainer.
Mr. Marchiando states the Debtors do not owe Kurtzman any amount
for services performed or expenses incurred prior to the
Petition Date.

Kurtzman's original Retention Agreement provided for limitations
of liability and indemnification.  The Court, however, modified
the Retention Agreement to remove that provision.

A full-text copy of Kurtzman's Fee Structure is available for
free at http://ResearchArchives.com/t/s?17d6

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.  The company has three locations in Asia, namely in
China, Japan and Korea.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Nov. 6, 2006, that Fitch Ratings placed one tranche from one
public collateralized debt obligation and one tranche from
private CDO on Rating Watch Negative following Dura Automotive
Corp.'s filing for protection under Chapter 11.

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.

                          *     *     *

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


LG TELECOM: FTC Says "Giboon Zone" Service Not Discriminatory
-------------------------------------------------------------
Korea's Fair Trade Commission determined that LG Telecom Ltd's
"Giboon Zone" service allowing mobile rates parallel to that of
fixed-line calls within designated zones is not an unfair
dumping pracice, Yonhap News reports.

The FTC's decision contradicted that of the country's
Communication Commissions prior ruling that the service was
discriminatory towards LG Telecom's subscribers.

According to Yonhap News, the Communication Commissions' ruling,
issued in September, recommended that LG reduce the price gap
between users and non-users.

FTC's decision, however, pointed out that:

   -- reduced rates were offered only for calls between mobile
      and fixed line phones in limited areas, while call prices
      between two mobile phones remained the same;

   -- a wide range of discount services among competitors is
      prevalent;

   -- LG's service did not pose a threat to fixed line
      operators because the FTC did not sense a drop in the
      cancellation of fixed line subscribers since the launch of
      the service.

The FTC started reviewing the legality of the service in October
2006 after a consumer group, who disagreed with the
Communication Commission's ruling, filed a request for the
review, the Korean newspaper adds.

Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd.
-- http://www.lgtelecom.com/-- is a telecommunications and
mobile phone operator controlled by the LG Group, one of the
country's largest chaebol.  It is Korea's smallest wireless
operator. LG Telecom became one of the first companies to launch
a commercial 3G service using PCS technology.  In 1997, this was
followed up by launching the second PCS network, offering
greatly increased data transmission speeds.  LG Telecom also
offers a variety of internet services. BankOn is one of the most
popular mobile banking services in South Korea and Musicon is a
popular instant messenger.

Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating,
a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior
Unsecured Rating.

Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 14, 2006, Fitch Ratings upgraded LG Telecom Ltd's
foreign currency Issuer Default rating to 'BB+' from 'BB.'


NACF: Moody's Maintains 'D-' Bank Financial Strength Rating
-----------------------------------------------------------
Moody's Investors Service has assigned an A3 rating to National
Agricultural Co-operative Federation's proposed USUS$250 million
5-year senior notes due January 2012 under the USUS$2.5 billion
Global Medium Term Note Programme.  The outlook for the rating
is positive, in line with the outlook on the Korean sovereign
rating.

Note that this rating is subject to receipt of final
documentation, the terms and conditions of which have not
changed in any material way from the draft documents we
reviewed.

The rating reflects NACF's important policy role and
significance to Korea's banking system.  It provides financing
for the development of the agricultural sector, acts as a
financing arm of the Ministry of Agriculture & Forestry, and is
Korea's second largest bank in asset terms.  These factors
support the high likelihood of systemic support, even though the
Agricultural Co-operative Law governing NACF does not contain
explicit support language, when compared to the other three
policy banks (Korea Development Bank, Industrial Bank of Korea
and Export-Import Bank of Korea).

At the same time, Moody's sees a major credit risk for NACF in
its responsibility -- although not legally binding -- for the
financial condition of member co-ops, many of which are
intrinsically weak.  However, various firewalls mitigate
somewhat the risk of any co-ops damaging its financial health.
In its history, NACF has not allowed any co-op to fail.

NACF was established in 1961 under the Constitution of Korea and
the Agricultural Co-operative Law to develop agriculture through
implementing government agricultural policy and providing the
government's funds.  Today, it is the largest policy institution
and the largest bank in the system, if member co-ops are
included.

The entity operates under the directive of the Ministry of
Agriculture & Forestry but the banking business operates under
the Banking Act of Korea.  Member co-ops, of which there are
1,335, wholly own NACF.  NACF operates under a two-tier system,
with member co-ops in the lower tier and NACF in the upper tier,
acting as a de facto central bank and regulator for member co-
ops.

The other ratings of the bank are:

   -- Subordinated debt of Baa1;

   -- short-term debt of Prime-1;

   -- long-term/short-term foreign currency deposit of A3/Prime-
      2; and

   -- bank financial strength rating of D-.

The long-term ratings carry a positive outlook and all other a
stable outlook.


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

ARK RESOURCES: Court Extends Restraining Order until May 3
----------------------------------------------------------
The High Court of Malaya, Kuala Lumpur, extended the Restraining
Order granted to Ark Resources Bhd and three of its
subsidiaries:

   -- ARK Hartanah Sdn Bhd formerly known as Lankhorst Hartanah
      Sdn Bhd;

   -- ARK M&E Sdn Bhd formerly known as Lankhorst M&E Sdn Bhd;
      and

   -- ARK Development Sdn Bhd formerly known as Rampai Budi-Jaya
      Sdn Bhd.

In addition, the court also extended the time for ARK Resources'
creditors and members to hold a meeting.

The extension of time to convene the Creditors' Meeting and the
extension of the Restraining Order is valid for 120 days from
Jan. 4, 2007, to May 3, 2007.

The Members' Meeting of ARK is valid for a period of 150 days
from Feb. 3, 2007, and will expire on July 2, 2007.

The Court granted the extension to better facilitate a corporate
restructuring exercise for the company and its subsidiaries.

                          *     *     *

ARK Resources Berhad, formerly known as Lankhorst Berhad --
http://www.lankhorst.com.my/-- is an investment holding company
with headquarters in Shah Alam, Malaysia.  Through its
subsidiaries, the Company provides civil and geotechnical
engineering

On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category or face delisting
procedures.

Currently, ARK Resources is under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act
1965 and formulating a debt and capital restructuring scheme to
improve the Company's financial position.

As of September 30, 2006ARK Ark Resources' balance sheet showed
insolvency with total assets of MYR43.83 million and total
liabilities of MYR214.37 million resulting to a shareholders'
deficit of MYR170.54 million.


ARK RESOURCES: Updates on Default Payment as of End-December '06
----------------------------------------------------------------
Ark Resources Bhd and its subsidiaries disclosed before the
Bursa Malaysia Securities Bhd its status on default payments
with several lenders as of December 29, 2006:

Lender                   Borrower              Amount Claimed
------                   --------                --------------
Bank Simpanan            ARK Resources Berhad         MYR57,572
Nasional

Bumiputra Commerce       Lankhorst Pancabumi
Bank Berhad              Contractors S/B             23,052,316
                                                      3,474,192
                                                      1,723,719
                                                     10,974,496
                                                     22,797,719

Danaharta Urus           Lankhorst Pancabumi
Sdn Bhd                  Contractors S/B                564,600

Southern Bank            Lankhorst Pancabumi
Berhad                   Contractors S/B              2,580,170

Malayan Banking          Lankhorst Pancabumi
Berhad                   Contractors S/B             13,366,474

Danaharta Urus           Port Dickson Sepang
Sdn Bhd                  Quarry S/B                  11,574,782

Southern Bank            Port Dickson Sepang
Berhad                   Quarry S/B                     189,785

Affin-ACF Finance Bhd    Lankhorst M&E S/B               32,615

                          *     *     *

ARK Resources Berhad, formerly known as Lankhorst Berhad --
http://www.lankhorst.com.my/-- is an investment holding company
with headquarters in Shah Alam, Malaysia.  Through its
subsidiaries, the Company provides civil and geotechnical
engineering

On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category or face delisting
procedures.

Currently, ARK Resources is under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act
1965 and formulating a debt and capital restructuring scheme to
improve the Company's financial position.

As of September 30, 2006, ARK Resources' balance sheet showed
insolvency with total assets of MYR43.83 million and total
liabilities of MYR214.37 million resulting to a shareholders'
deficit of MYR170.54 million.


CYGAL BERHAD: Seeks Extension to Execute Corporate Exercises
------------------------------------------------------------
Cygal Berhad filed before the Bursa Malaysia Securities Bhd a
petition seeking to extend its corporate restructuring exercise
until June 30, 2007.

The company's restructuring exercise includes:

   (i) Share Exchange;

  (ii) Debt Restructuring, which comprises:

          * Financial Institutions Scheme;

          * Non Financial Institutions Scheme; and

          * Part Settlement of amount owed to Offshore Financial
            Institution;

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

  (iv) Rights Issue of Shares together with Warrants;

   (v) Acquisition of property development companies; and

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

As previously reported by the Troubled Company Reporter - Asia
Pacific, Cygal had already asked the SC for a final extension to
implement is corporate exercise until Dec. 31, 2006.

SC's decision on the company's current appeal is still pending.

                          *      *     *

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

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

Cygal's balance sheet as of end-September 2006, showed total
assets of MYR221.95 million and total liabilities of MYR505.21
million.  Shareholders' deficit reached MYR283.26 million.


UNITED CHEMICAL: Agreed to Further Extend CRA Completion Date
-------------------------------------------------------------
United Chemical Industries Bhd along with Perbadanan Kemajuan
Negeri Perak and Majuperak Holdings Berhad agreed to extend the
completion date of its Corporate Restructuring Agreement.

The agreement, which expired on Dec. 29, 2006, will be extended
until Feb. 28, 2007.

As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, the completion of United Chemical's
restructuring is pending:

   -- private placement by Perbadanan Kemajuan Negeri Perak via
      offer for sale of up to 4,000,000 ordinary shares in
      Majuperak of MYR0.50 at an odder price of MYR0.70; and

   -- administrative matters in relation to:

        * the admission to the Official List and the listing of
          an quotation for the new ordinary shares of Majuperak
          and irredeemable convertible preference shares on the
          Securities Exchange;

        * the issue of redeemable convertible secured loan
          stocks and redeemable convertible unsecured loans
          stocks to the creditors of United Chemicals; and

        * the transfer of listing status of UCI on the Second
          Board of Securities Exchange to Majuperak whereby
          Majuperak shares will be listed on the Main Board of
          the Securities Exchange.

                          *     *     *

United Chemical Industries Berhad, a company incorporated and
domiciled in Malaysia, is a public company limited by shares,
and is listed on the Second Board of Bursa Malaysia Securities
Berhad.  United Chemical is an investment holding company that
was previously involved in the manufacture and sale of
polypropylene and polyethylene woven bags together with its
allied products.  Its subsidiary company, Geotextiles (M) Sdn
Bhd, was previously involved in the manufacture and sale of
geotextile fabrics together with its allied products.

As of September 30, 2006, the company's consolidated balance
sheet showed insolvency with total assets of MYR3.19 million and
MYR79.21 in total liabilities.


WEMBLEY INDUSTRIES: No Change on Payment Default Status
-------------------------------------------------------
Wembley Industries Berhad said that as of Dec. 30, 2006, there
has been no change to the status of default in payments of
interest and principal sums to its lenders.

Wembley Industries further declares that:

     -- the default in payment is in respect of the company and
        a major subsidiary, Plaza Rakyat Sdn Bhd; and

     -- the company is insolvent of Dec. 30, 2006, but the
        directors are of the opinion that the company will
        regain its solvency upon successful implementation of
        its Proposed Restructuring Scheme.

In compliance with Paragraph 3.2 of PN1/2001, Wembley Industries
disclosed that it is in the process of taking steps to secure an
extension of the said cut-off date to fulfill the conditions
precedent stipulated in the debt-restructuring agreement and
thereafter to implement the restructuring therein.

The company's board of directors will make available to Bursa
Malaysia Securities Berhad any updates on the restructuring of
the debt-restructuring scheme.

                          *     *     *

Headquartered in Sarawak Malaysia, Wembley Industries Holdings
Berhad is a developer of commercial properties and investment
holding.  Its other activities are the development of the inter-
state bus and taxi terminal, the retail podium and the budget
hotel.

The company has been placed under the Practice Note 4 category
due to its tight cash flow position.  On January 7, 2003,
Malaysia's Foreign Investment Committee approved the company's
regularization plan.  Subsequently, on April 7, 2003, the FIC
revised its approval to include the possible participation of
Daewoo Corporation, the former turnkey contractor of Plaza
Rakyat Project in the company's Proposed Debt Restructuring.
The company's ability to continue as a going concern hinges on
the successful implementation of the Scheme.

As of Sept. 30, 2006, Wembley's balance sheet showed insolvency
with total assets of MYR421.25 million and total liabilities of
MYR1.25 billion resulting to a shareholders' deficit of
MYR826.36 million.


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

AIR NEW ZEALAND: Analyst Upgrades Profit Forecast, Report Says
--------------------------------------------------------------
Air New Zealand is expected to triple its pre-tax profits over
the next four years as it benefits from new planes and passenger
cabins, as well as route changes, The Dominion Post reports.

The report says Forsyth Barr analyst Rob Mercer has upgraded his
profit forecast for Air New Zealand to NZ$205.5 million before
interest and tax for the year to June 30, 2007, up NZ$50.3
million.

That rises to NZ$497 million in 2010, and compares with NZ$148
million in 2006, The Dominion adds.  Mr. Mercer noted, however,
that even those forecasts are conservative.

Mr. Mercer also expects Air New Zealand to pay an 8-cent a share
dividend in 2008, up from 5c, the paper relates.

According to stuff.co.nz, the key profit driver is the perfectly
timed fleet upgrade, which will give Air New Zealand a capital
expenditure holiday for the next five years.  This allows the
airline to generate about NZ$1.7 billion in free cashflow over
the next five years.

In a filing with the New Zealand Stock Exchange, Air New Zealand
confirmed its purchase of an additional four Boeing 787-9
aircraft to meet its growth plans over the next decade.

With this order Air New Zealand has now confirmed the purchase
of a total of eight 787-9 aircraft and has secured options over
eight further production slots giving the airline access to 16
of these new generation aircraft over the coming decade.

According to the NZX disclosure, Air New Zealand is the launch
customer for Boeing's 787-9 aircraft, with the first aircraft
due to be introduced into service in 2011 and the last of the
eight aircraft purchased to date being delivered in 2013.  As
the launch customer, Air New Zealand is working closely with the
Boeing design team on the specification and development of the
787-9.

The four additional 787-9s have a list price of around
NZ$1 billion but the airline achieved a significant discount on
this when it was one of the first airlines in the world to
commit to the 787 program.

                Shareholders to Expect Dividend

As forecast net debt of NZ$182.7 million for 2007 turns to
NZ$120.2 million cash in 2008, and exceeds NZ$1 billion cash by
2011, shareholders can also expect special dividends in the next
few years, stuff.co.nz cites Mr. Mercer, as saying.

Mr. Mercer has increased his valuation for Air New Zealand
shares from NZ$1.52 to NZ$2.20 and recommends investors buy the
stock.

In the last year, the airline has bought new domestic and long-
haul aircraft which are more fuel efficient and will need little
capital expenditure and reduced maintenance costs for the next
five years, The Dominion recounts.

According to the paper, new, market leading lie-flat business
class seats, and improved facilities in economy, as well as the
introduction of premium economy, has allowed Air New Zealand to
regain market share to the point where it now dominates all the
routes from New Zealand to Asia, the United States, and London.
That has boosted revenue and yields, Mr. Mercer notes.

While the international capacity cuts will lower revenue, that
will be more than offset by resulting cost savings, especially
fuel use, Mr. Mercer further says.

Air New Zealand chief executive Rob Fyfe expects online bookings
to exceed NZ$1 billion this year, about a quarter of forecast
revenue, The Dominion says.

                      About Air New Zealand

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

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

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


AUTOMATIC MACHINING: Shareholders Opt to Wind Up Operations
-----------------------------------------------------------
On Dec. 14, 2006, the shareholders of Automatic Machining
Specialists Ltd., resolved to wind up the company's operations.

Accordingly, Michael John Keyse was appointed as the company's
liquidator.

The Liquidator can be reached at:

         Michael John Keyse
         c/o HFK Limited
         P.O. Box 5071, Papanui
         Christchurch
         New Zealand
         Telephone:(03) 352 9189


EAST TAIERI: Shareholders Opt to Liquidate Business
---------------------------------------------------
The shareholders of East Taieri Lifestyle Blocks Ltd. resolved
at a meeting held on Dec. 11, 2006, to voluntarily wind up the
company's operations.

Subsequently, Paul Glass was appointed as liquidator.

The Liquidator can be reached at:

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


G & M COCKS: Members Resolve to Wind Up Firm
--------------------------------------------
At a general meeting held on Dec. 8, 2006, the members of G & M
Cocks Ltd agreed to wind up the company's operations.

In this regard, Trevor James Croy was appointed as the company's
liquidator.

The Liquidator can be reached at:

         Trevor James Croy
         257 Havelock Street
         Ashburton
         New Zealand
         Telephone:(03) 308 8353
         Facsimile:(03) 308 1535


J W DEVELOPMENTS: Shareholders Decide to Wind Up Operations
-----------------------------------------------------------
The shareholders of J W Developments Ltd. met on Dec. 13, 2006,
and decided to voluntarily wind up the company's operations.

In this regard, the company's creditors are required to file
their proofs of debt by Jan. 17, 2007, to be included in the
company's distribution of dividend.

The liquidator can be reached at:

         Ann Loudon
         StreetSMART Group Limited
         P.O. Box 11-174, Ellerslie
         Auckland
         New Zealand
         Telephone:(09) 580 1291
         Facsimile:(09) 580 1292


PATTERSON CONSULTING: Commences Liquidation Proceedings
-------------------------------------------------------
Patterson Consulting Worldwide Ltd. has commenced liquidation
proceedings on Dec. 14, 2006.

Accordingly, the company's creditors are advised to file their
proofs of debt by March 14, 2007.

The liquidator can be reached at:

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


PRESTIGE VEHICLE: Enters Liquidation Proceedings
------------------------------------------------
Prestige Vehicle Imports Ltd has entered liquidation proceedings
on Dec. 7, 2006.

Accordingly, Stephen John Tubbs and Warren Michael Johnstone
were appointed as the company's joint and several liquidators.

The Liquidators can be reached at:

         Stephen John Tubbs
         Warren Michael Johnstone
         Jim Barber, BDO Spicers
         Level Six, Spicer House
         148 Victoria Street, Christchurch
         P.O. Box 246, Christchurch
         New Zealand
         Telephone:(03) 379 5155
         Facsimile:(03) 353 5526
         Email: jim.barber@chc.bdospicers.com


SILVERDALE MARINE: Liquidator to Receive Claims Until Jan. 31
-------------------------------------------------------------
At a general meeting held on Dec. 8, 2006, the shareholders of
Silverdale Marine Hatchery Ltd. agreed to voluntarily wind up
the company's operations and appointed Jeffrey Philip Meltzer
and Michael Lamacraft as liquidators.

Accordingly, Messrs. Meltzer and Lamacraft will be receiving
proofs of debt from the company's creditors until Jan. 31, 2007.

The Liquidators can be reached at:

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


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

AMKOR TECHNOLOGY: Faces Amended Pa. Securities Fraud Complaint
--------------------------------------------------------------
Amkor Technology, Inc., continues to face an amended securities
fraud complaint filed with the United States District Court for
the Eastern District of Pennsylvania.

On Jan. 23, 2006, a purported securities class action, "Nathan
Weiss et al. v. Amkor Technology, Inc. et al.," was filed
against the company and certain of its current and former
officers.  Subsequently, other law firms have filed related
cases, which will likely be consolidated with the initial
complaint.

The complaints allege, among other things, that Amkor engaged in
"channel stuffing" and made certain materially false statements
and omissions in its disclosures during the putative class
period of October 2003 to July 2004.

On Aug. 15, 2006, plaintiffs filed an amended complaint adding
additional officer, director and former director defendants and
alleging improprieties in certain option grants.

The amended complaint further alleges that defendants improperly
recorded and accounted for the options in violation of generally
accepted accounting principles and made materially false and
misleading statements and omissions in its disclosures in
violation of the federal securities laws, during the period from
July 2001 to July 2006.

The amended complaint seeks certification as a class action
pursuant to Civil Procedure 23 of the Federal Rule, compensatory
damages, costs and expenses, and such other further relief as
the court deems just and proper.

The company reported no material development in the case at its
Nov. 8 form 10-Q filing with the U.S. Securities and Exchange
Commission for the quarter ended Sept. 30.

The suit is "In Re: Amkor Technology Inc. Securities Litigation,
Case No. 2:06-cv-00610-LP," filed in the U.S. District Court for
the Eastern District of Pennsylvania under Judge Louis H. Pollak
with referral to Judge M. Faith Angell.

Representing the plaintiffs are:

     (1) Jacob A. Goldberg of Faruqi & Faruqi, LLP, P.O. Box
         30132, Elkins Park, PA 19027, Phone: 215-782-8235,
         e-mail: jgoldberg@faruqilaw.com; and

     (2) Evan J. Smith of Brodsky & Smith, LLC, Two Bala Plaza,
         Suite 602, Bala Cynwyd, PA 19004, Phone: 610-667-6200,
         e-mail: esmith@brodsky-smith.com.

Representing the defendants are:

     (i) Patrick Loftus of Duane Morris, LLP, 30 South 17th
         Street, Philadelphia, PA 19103-7396, Phone: 215-979-
         1367, e-mail: loftus@duanemorris.com; and

    (ii) Karen T. Stefano of Wilson Sonsini Goodrich & Rosati,
         650 Page Mill Road, Palo Alto, CA 94304, US, Phone:
         650-849-3405, e-mail: kstefano@wsgr.com.

                      About Amkor Technology

Chandler, Arizona-based Amkor Technology, Inc. (NASDAQ: AMKR) --
http://www.amkor.com/-- provides advanced semiconductor
assembly and test services.  The company offers semiconductor
companies and electronics original equipment manufacturers a
complete set of microelectronic design and manufacturing
services.  It has sales and manufacturing offices in Japan,
China, Taiwan, Korea, and the Philippines.

                          *     *     *

On November 13, 2006, 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 U.S. technology
semiconductor and distributor sector, the rating agency affirmed
its Caa1 corporate family rating on Amkor Technology, Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$300MM Guaranteed
   Senior Secured
   2nd Lien Term Loan
   due 2010                B3       B1      LGD1        7%

   US$500MM
   9.25% Sr. Unsecured
   Notes due 2008         Caa3     Caa1      LGD3      44%

   US$400MM 9.25% Sr.
   Unsecured Notes
   due 2016               Caa3      Caa1     LGD3      44%

   US$425MM 7.75% Sr.
   Unsecured Notes
   due 2013               Caa3      Caa1     LGD3      44%

   US$250MM 7.125%
   Sr. Unsecured
   Notes due 2011         Caa3      Caa1     LGD3      44%

   US$200MM 10.50% Sr.
   Subordinated Notes
   due 2009                Ca       Caa2     LGD5      75%

   US$190MM 2.50%
   Convertible Sr.
   Sub Notes due 2011      Ca       Caa3     LGD5      84%

   US $258.8MM 5.00%
   Convertible Subor.
   Notes 2007              Ca       Caa3     LGD6      94%


BANK OF THE PHIL. ISLANDS: Sells FEB Shares for PHP503.8 Million
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
January 4, 2007, the Bangko Sentral ng Pilipinas has approved
the sale of Bank of the Philippine Islands' 100% equity holdings
in FEB Savings Bank to JTKC Equities, Inc., Surewell Equities,
Inc., and Star Equities, Inc.  The new owners will name FEB
Savings as Sterling Bank of Asia, Inc., the TCR-AP noted.

On October 20, 2006, the TCR-AP reported that the BPI Board
approved the proposed sale.

In an update, BPI disclosed with the Philippine Stock Exchange
that it has sold 50 million FEB shares it has held -- for
PHP503.8 million.

                            About BPI

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

The Troubled Company Reporter - Asia Pacific reported that on
November 2, 2006, Moody's Investors Service revised the outlook
of the Bank of the Philippine Islands' foreign currency long-
term deposit rating of B1 to stable from negative.

The outlooks for BPI's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of C- remains
stable.


BAYAN TELECOMMUNICATIONS: Earns PHP1 Bil. in 2006 9-Month Period
----------------------------------------------------------------
Bayan Telecommunications Holdings Corporation continues to
sustain its growth from stronger data and Internet and stable
fixed line businesses by posting net revenues of PHP4.22 billion
for the first three quarters of 2006, the company's parent,
Benpres Holdings, said in a quarterly disclosure with the
Philippine Stock Exchange.

The figure represents a 7% increase from the PHP3.95 billion in
net revenues during the same period in 2005.

Due primarily to foreign exchange gains and IRU sale of
PHP639 million, BayanTel posted a net income of PHP1.007 billion
for the nine months ending September 2006, from a loss of
PHP1.043 billion in the same period in 2005.

                         About BayanTel

Bayan Telecommunications Holdings Corporation, which is 85.4%
owned by Benpres Holdings Corp. and the Lopez Group, was
incorporated on October 15, 1993.  Bayan Telecommunications Inc.
-- http://www.bayantel.com.ph/-- is the operating arm of BTHC
and is formerly known as International Communications
Corporation.  BayanTel is a telecommunications company offering
an extensive breadth of traditional links and circuitry as well
as cutting edge data and voice applications.  BayanTel's
existing service areas in Metro Manila and Bicol, as well as its
local exchange service areas in the Visayas and Mindanao regions
combined, cover a population of over 25 million, nearly 33% of
the population of the Philippines.  BayanTel has operations in
Japan and the U.K.

The Troubled Company Reporter - Asia Pacific reported on May 25,
2006, in a disclosure statement to the Philippine Stock
Exchange, Bayan Telecommunications reported a net loss of
PHP540 million for the fiscal year 2005, against a
PHP14.9 billion loss in 2004, on revenues of PHP5.22 billion.
The Company's EBITDA for 2005 stood at PHP2.17 billion, 1%
higher than in 2004.

For the fiscal year 2005, BayanTel's net capital deficiency
stood at PHP17.33 billion.


CE CASECNAN: Third Quarter Revenue Up to US$12.9 Million
--------------------------------------------------------
CE Casecnan Water & Energy Co., Inc., reports that its revenue
increased by US$12.9 million to US$40.6 million for the three-
month period ended September 30, 2006, from US$27.7 million for
the same period in 2005, the company said in a 10Q filing with
the United States Securities and Exchange Commission.

For the quarter ended September 30, 2006, the company was able
to produce 190.7 gigawatts-hour or electricity and delivered
358.4 million cubic meters of water.

The company earned water and energy fees as follows (in US$,
millions):

                                      2006      2005
                                     ------    ------
            Water delivery fees       14.4      13.4
            Guaranteed energy fees     9.1       9.1
            Variable energy fees      19.0       6.9
            Deferred water
             delivery fees            (1.9)     (1.7)
            Total lease rentals
             and service contracts
             revenue                  40.6      27.7

The increase in water delivery fees was due to the contractual
7.5% annual escalation factor.  The increase in the variable
energy fees was due primarily to the higher rainfall, which
resulted in higher electricity production in the third quarter
of 2006 than in 2005.  The deferred water delivery fees
represent the difference between the actual water delivery fees
earned and water delivery fees invoiced.

Interest expense decreased by US$0.7 million to US$5.2 million
for the three-month period ended September 30, 2006 from
US$6.0 million for the same period in 2005, due to lower
outstanding debt balances resulting from the scheduled repayment
of debt.

Interest income increased to US$0.7 million for the three-month
period ended September 30, 2006 from US$0.1 million for the same
period in 2005 primarily due to higher interest rates and higher
average cash and cash equivalents and restricted cash and
investments balances.

Other, net increased to US$1.3 million for the three-month
period ended September 30, 2006 from US$(0.1) million for the
same period in 2005. The higher other, net was due to value-
added tax recoveries exceeding obligations as a result of a
change in the VAT law which became effective on November 1,
2005.

Income tax expense increased to US$0.6 million for the three-
month period ended September 30, 2006 from US$- million for the
same period in 2005. The income tax expense relates to VAT
recoveries and interest income earned outside the Philippines
which are not covered by the income tax holiday.

                Liquidity and Capital Resources

The company's cash and cash equivalents were US$25.5 million and
US$42.3 million at September 30, 2006 and December 31, 2005,
respectively.

The company generated cash flows from operations of
US$98.5 million and US$55.6 million for the nine-month periods
ended September 30, 2006 and 2005, respectively.  The increase
in cash from operations in 2006 was primarily due to higher net
income as a result of higher water flows and corresponding
variable energy revenues, reimbursements from NIA for property
taxes paid by CE Casecnan in 2005 and lower interest payments.

Cash flows used in investing activities were US$40.1 million and
US$0.7 million for the nine-month periods ended September 30,
2006 and 2005, respectively. The Company increased its
restricted cash and investments related to obligations for debt
service and unpaid dividends by US$38.2 million, of which
US$25.0 million relates to timing of the payments of debt
service and US$13.2 million relates to the increase in unpaid
dividends.

Cash flows used in financing activities US$75.2 million and
US$36.3 million for the nine-month periods ended September 30,
2006 and 2005, respectively. The Company declared dividends
totaling US$66.0 million during the nine-month period ended
September 30, 2006 and US$11.0 million during the same period in
2005 (of which US$9.9 million and US$1.7 million, respectively,
were placed in an escrow account in the name of the Company and
shown as restricted cash and investments and dividends payable
in the accompanying balance sheets). The Company also repaid
US$18.0 million and US$27.4 million on the balance of its
outstanding debt obligations during the nine-month periods ended
September 30, 2006 and 2005, respectively.

                About CE Casecnan Water & Energy

CE Casecnan Water & Energy Co., Inc. has a contract with the
Republic of the Philippines, through the Philippine National
Irrigation Administration (a ROP-owned and controlled
corporation), for the development and construction of a
hydroelectric power plant and related facilities under a build-
own-operate-transfer agreement, as amended by the Supplemental
Agreement dated September 29, 2003, covering a 20-year
cooperation period.  At the end of the Cooperation Period, the
combined irrigation and 150 MW hydroelectric power generation
project will be transferred to the ROP at no cost on an "as is"
basis.

The ROP also signed a Performance Undertaking, which, among
others, affirms and guarantees the obligations of NIA under the
Project Agreement. Construction of the Casecnan Project
commenced in 1995.  CE Casecnan is registered with the
Philippine Board of Investments as a new operator of
hydroelectric power plant with pioneer status under the Omnibus
Investments Code of 1987. Under the terms of its registration,
CE Casecnan is entitled to certain incentives which include an
income tax holiday for six years from the start of commercial
operations. The Cooperation Period began upon commencement of
commercial operations on December 11, 2001. The income tax
holiday will expire on December 11, 2007.

The Troubled Company Reporter - Asia Pacific reported that on
September 15, 2006, Standard & Poor's Ratings Services raised
its issue rating on Philippines' CE Casecnan Water and Energy
Co. Inc.'s US$171.5 million senior secured notes to 'BB-' from
'B+'.  The outlook is stable.  The rating upgrade reflects its
improved financial risk profile, after significant debt
amortization in 2005.


MANILA ELECTRIC: Will Raise Power Rates This Month
--------------------------------------------------
Manila Electric Co. power rates will increase by 26.14 centavos
per kilowatt-hour in January, the company confirms in a
corporate disclosure to the Philippine Stock Exchange.

The company also confirms that its application to recover and
collect from the end-users the October 2006 adjustments in
generation and system loss charges including the value-added
tax, was provisionally approved by the Energy Regulatory
Commission in its December 13, 2006 order.

                      About Manila Electric

Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
Metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers.  Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.

                          *     *     *

A March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the Company posted a 79.7% decrease in its
2005 net losses to PHP411 million from PHP2.03 billion in 2004,
due to provisions for probable losses while awaiting a Supreme
Court final decision on a pending unbundling rate case, and the
adoption of new accounting standards.

In a TCR-AP report on April 24, 2006, it was noted that Manila
Electric cannot seek a loan to expand its facilities unless it
repays outstanding short-term debts amounting to around
PHP4.7 billion.


PILIPINO TELEPHONE: Debt Prepayment Ups Net Income to PHP8.5BB
--------------------------------------------------------------
Pilipino Telephone Corporation recorded an PHP8.5-billion net
income for the first nine months of 2006, against the
PHP6.9 billion recorded in the same period in 2005, according to
a company disclosure with the Philippine Stock Exchange.

The increase was mainly a result of Piltel's benefit from income
tax.

Piltel derives its revenues from two business segments:

   1. the cellular service, which consists of the prepaid GSM
      service Talk 'N Text, and a lease line service making use
      of Piltel's remaining AMPS/CDMA network; and

   2. the fixed line service, which consists of the RTS and E.O.
      109 exchanges in selected parts of Luzon and Mindanao.

                            Revenues

Piltel's revenues and other income increased by PHP308.6 million
or 3.4% to PHP9.3 billion for the nine months ended
September 30, 2006, from PHP9.0 million for the same period in
2005, with the increase fueled by the growth in the Talk 'N Text
subscriber base.

                            Expenses

Expenses almost tripled at PHP5.0 billion for the nine months
ended September 30, 2006, from PHP1.7 billion for the same
period last year due mainly to the full amortization of discount
on debts prepaid by Piltel.  The voluntary debt prepayment in
June 2006 resulted in the recognition of additional discount
amortization of PHP1.7 billion.

With the submission on October 25, 2006, of the notice of full
debt prepayment, Piltel recognized the balance of unamortized
debt discount of PHP2.0 billion as additional financing cost in
September 2006, thereby bringing the carrying values of Piltel's
remaining restructured long-term debts to their nominal amounts.

Piltel's restructured debts were scheduled to be fully prepaid
on December 4, 2006.  Prior approval from the Bangko Sentral ng
Pilipinas is being obtained to allow Piltel to source its dollar
payments from authorized agent banks.

The additional debt discount, however, was partly offset by the
recognition of deferred tax assets relating to the expected tax
benefit that would be derived from the disposal of certain
assets.

                         Debt Financing

Piltel's restructured obligations are secured by substantially
all present and future assets of Piltel under the Mortgage Trust
Indenture dated June 4, 2001, between Piltel and JPMorgan Chase
Bank, N.A. (Manila Branch) as Security Agent for the creditors.

Piltel likewise agreed to pay into a dedicated account (a
Sinking Fund Account) the amount by which (a) earnings before
interest, tax, depreciation and amortization, and exceptional
items for a financial year is greater than (b) 200% of the
projected debt service costs and permitted capital expenditure
for the following financial year.

The money in the Sinking Fund Account will be used to fund cash
flow deficiencies of Piltel.  Any credit balance in a Sinking
Fund Account after two financial years will be used to prepay
all participating creditors.

Piltel has undertaken, with respect to each financial year that
the aggregate of earnings before interest, tax, depreciation and
amortization plus the available amount under the LOS issued by
Phil. Long Distance Telephone Company will be greater than 1.05
times debt service and 1.5 times interest cost.

On July 7, 2006, Piltel, PLDT, and JPMorgan Chase Bank, N.A.
(Manila Branch), as Security Agent on behalf of the Finance
Parties under the Intercreditor Agreement, agreed to the
amendment of Clause 25 thereof to allow the amendment of any
term of the MTI and the release and sale of certain properties
or assets from the security interests created by the MTI upon
the instructions of the creditor representatives.

On the same date, and following the effectivity of the amendment
of the Intercreditor Agreement, Piltel and the Security Agent,
executed the Amendment to the Mortgage Trust Indenture, pursuant
to which Piltel is allowed to sell or dispose of certain
categories of assets or properties with the consent of the
Majority Bank Creditors, the Majority Trade Creditors and the
Trustee, provided, however that for as long as Avenue Asia holds
majority of Piltel's Conversion Notes, the prior consent of
Avenue Asia will be required for (i) any sale or disposition of
any of the real properties of Piltel, and (ii) any sale or
disposition of assets to Smart, PLDT or any of its affiliates.

                        Equity Financing

As of September 30, 2006, Piltel had an authorized capital of
PHP12.8 billion, divided into:

   a. 12,060 million common shares with a par value of PHP1.00
      per share of which 11,771.7 million shares are issued and
      outstanding.

   b. 120.0 million Class I preferred shares, with a par value
      of PHP2.00 per share of which the following are issued and
      outstanding:

                                  In million shares
                                  -----------------
                     Series A                  1.9
                     Series C                  5.2
                     Series D                  0.1
                     Series J                  4.9
                        Total                 12.1

      Class I preferred shares have preference over the common
      shares in relation to dividends and assets in the event of
      liquidation, dissolution or winding up.

   c. 500.0 million Class II preferred shares, with a par value
      of PHP1.00 per share of which there are no
      shares issued and outstanding.

Piltel's stockholders' equity increased by PHP8.5 billion or
188.3% to PHP12.9 billion as of September 30, 2006, from PHP4.5
billion as of December 31, 2005.  Piltel's deficit decreased by
PHP8.5 billion to PHP23.9 billion as of September 30, 2006 from
PHP32.3 billion as of December 31, 2005 as a result of the net
income for the first nine months of 2006.

A full-text copy of Piltel's financial results is available free
of charge at:

         http://bankrupt.com/misc/PLTL_17Q_Sep2006.pdf

                          About PILTEL

Headquartered in Makati City, Philippines, Pilipino Telephone
Corporation provides cellular mobile telephone service provider,
as well as provides fixed line telephone services and paging
services to Filipino customers.  In the past seven years, Piltel
was on the brink of bankruptcy with its seemingly insurmountable
debt, continuous losses, outmoded service and dwindling
subscriber base.

As of March 31, 2006, PilTel acknowledges that it has not
complied with the terms of convertible bonds with a principal
amount of US$0.7 million -- approximately US$0.9 million
redemption price at the option of the holders.  Accordingly, the
amount was presented as part of the current portion of interest-
bearing financial liabilities.

PilTel may not be able to restructure or otherwise pay the
claims of its unrestructured debt.

However, PilTel says that default on and acceleration of its
unrestructured indebtedness does not create a cross-default
under its restructured indebtedness.

As stated in its 2005 annual report, PilTel's non-participating
creditors may take forceful measures to enforce their claims,
and it is possible that the Company would be required to submit
to a court-supervised rehabilitation proceeding or an
involuntary insolvency proceeding seeking liquidation.  All of
PilTel's creditors that participated in the debt restructuring
agreed that they would submit the Company to a rehabilitation
proceeding in those circumstances and petition for the adoption
of a plan of rehabilitation that includes the financial terms of
the debt-restructuring plan.


PREMIERE ENTERTAINMENT: Nine-Month Net Loss Down to PHP1.04 Mln.
----------------------------------------------------------------
Premiere Entertainment Productions, Inc., reports a pre-tax net
loss of PHP1.04 million for the nine months of 2006, 66% lower
compared to PHP3.08 million net loss reported a year ago, the
company said in a 17Q filing to the Philippine Stock Exchange.

The decrease was due to the increase in interest and other non-
operating income and expenses from PHP0.193 million as of
September 30, 2005, to PHP1.76 million this year.  Further
decreases in cost and expenses helped also to reduced the net
loss.

Operating revenues of PHP0.070 million derived from the sales of
film library rights were recorded for 2006 compared to none
during the same period of 2005.

Total cost and expenses for September 30, 2006, amounted to
PHP2.9 million, or a decrease of 12% compared to the
PHP3.3 million reported during the same period of last year.

Operating expenses recorded at PHP1.9 million during the first
nine months of 2005 went down by 12.8% compared to
PHP1.7 million this period.  Depreciation and amortization
decreased by a 10.9%.

Interest and other non-operating income increased by 815.6% from
PHP0.192 million during the first nine months of 2005 to
PHP1.8 million on the same period of 2006.

As of September 30, 2006, total assets recorded was
PHP178 million reflecting a decrease of 1.0% compared to the
December 31, 2005 total assets of PHP179.6 million.

The total liabilities registered at PHP34 million at the end of
the first three quarters of 2006, is 2.1% lower than the total
liabilities of PHP35.0 million as of December 31, 2005, and
almost unchanged compared to the PHP34.0 million total
liabilities a year ago.

The stockholders' equity, at the end of the first nine months of
2006 amounted to PHP143 million, 0.7% lower than the total
stockholders' equity amounting to PHP144 million as of
December 31, 2005.

A full-text copy of Premiere Entertainment's financial results
is available for free at:

        http://bankrupt.com/misc/PEP_17Q_Nov2006_1.pdf

                  About Premiere Entertainment

Premiere Entertainment Productions, Inc. -- formerly known as
Premiere Films International, Inc. -- is engaged in the business
of dealing in and with all kinds of motion pictures to the
business of various forms of entertainment and leisure
including, but not limited to, movie films and export and
distribution services offered to and for local and international
film market.

Despite being debt-free, the Company's cash position indicates
that it will need aggressive revenue development, collection of
trade/non-trade receivables and massive cost reduction efforts.
Current collected revenues are only sufficient to cover for
administrative overhead expenses.

As reported in the Troubled Company Reporter - Asia Pacific on
June 5, 2006, Jessie Cabaluna, of Sycip Gorres Velayo and Co.,
raised significant doubt on Premiere Entertainment's ability to
continue as a going concern after auditing the Company's annual
report for the year ended December 31, 2005.


PRYCE CORPORATION: Registers 3rd Qrtr Net Loss of PHP41.84 Mil.
---------------------------------------------------------------
Pryce Corporation reports consolidated revenues of
PHP940.44 million for the three-quarter period ended Sept. 30,
2006, which represents a drop of 33.8% from the PHP1.421 billion
recorded in the preceding year's comparable period, according to
the company's disclosure with the Philippine Stock Exchange.

The decline is a continuation of the downtrend, which began in
the first quarter, accounted for to a large extent by the
reduced revenues from the gas business, mainly the sale of
liquefied petroleum gas, which went down by some 37.12% from the
previous year's corresponding figure.

The continuing rise in the retail prices of petroleum products,
including LPG, for practically the entire first three quarters
of 2006 resulted in this slump in sales, LPG being primarily a
household cooking gas, whose demand is highly sensitive to price
movements.

Broken down by product line, 78% or PHP733.23 million of
revenues came from LPG sales, 16.05% or PHP150.96 million from
industrial gas sales, 2.89% or PHP27.14 million from real estate
sales, and 3.09% or PHP29.11 million from hotel operations. (LPG
and industrial gases are the product lines of the subsidiary,
Pryce Gases, Inc. or PGI.)

In terms of profitability, gross margin from the gas business
settled at 19.5% of revenues, approximating last year's level,
while that of real estate sales declined to 60.1% from the
previous year's 77.6% because of the bigger share of subdivision
lots in the 2006 figure (as opposed to memorial park lots which
have significantly higher margins).  The lone hotel property of
the company recorded a slightly higher than break-even operation
only, due to the lower sales performance.

Total Cost & Expenses during the period under review amounted to
PHP750.56 million while Operating Expenses aggregated PHP253.68
million, resulting in a Loss from Operations of PHP63.8 million.
Other Income totaled PHP74.99 million, mainly consisting of gain
from sale of securities and unrealized foreign exchange gain,
while interest and bank charges amounted to PHP53.03 million,
yielding a pre-tax net loss of PHP41.84 million.  This loss is
about 63% higher than the P25.67 million registered in the first
three quarters of 2005, the reason being that there was less
revenues this year to cover operating costs.

Total assets of the Company as of September 30, 2006, amounted
to PHP4.79 billion or marginally smaller than the PHP4.84
billion audited figure reported as of December 31, 2005.  Total
liabilities amounted to PHP2.996 billion while Stockholders'
Equity settled at PHP1.797 for a debt-to-equity ratio of 1.67:1,
which is slightly lower than the 1.63:1 ratio recorded as of
year-end 2005.

A full-text copy of the company's financials is available for
free at:

          http://bankrupt.com/misc/PPC_17Q_Sep2006.pdf

                        About Pryce Corp.

Makati City-based Pryce Corporation --
http://www.prycegardens.com/-- formerly Pryce Properties
Corporation, was incorporated as a property holding and real
estate development company.  The Company's real estate
undertakings include the development of memorial parks,
residential, and commercial properties and hotel operations.  In
1997, LPG and industrial gases became the dominant business.
Thus, the Company changed its name to Pryce Corp. and its
primary purpose from that of a property company to a
manufacturing company.

Pryce, thru its subsidiary Pryce Gases, Inc., manufactures and
distributes oxygen and acetylene in the Visayas and Mindanao and
trades in other gases such as argon, carbon dioxide, and
nitrogen.

                          *     *     *

On June 7, 2002, PGI presented a financial rehabilitation plan
to its various creditor banks and foreign financing company as
an initial step towards restructuring its outstanding loans.  On
August 27, 2002, the International Finance Corporation and FMO-
Netherlands Development Finance Company, two of PGI's creditors,
filed a petition in court placing PGI under receivership.  On
September 2 that same year, the court issued a stay order
pursuant to the interim rules of procedures on corporate
rehabilitation.

On July 9, 2004, Pryce submitted a Rehabilitation Plan of its
own to the court as an initial step towards restructuring its
outstanding loans.  The Plan was revised and later approved by
the court on January 17, 2005.  The Revised Plan conforms to the
scheme of liquidating all bank loans and long-term commercial
papers by way of dacion en pago of real estate properties with
certain revisions on the settlement of non-banking and trade and
other payables which are PHP500,000 or below.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on May 23,
2006, that Sycip Gorres Velayo & Co. raised substantial doubt on
Pryce Corp.'s ability to continue as a going concern after
auditing the Company's financials for the quarter ended March
31, 2006.

The Company reported a 38.4% drop in its first-quarter revenue
from PHP465 million in 2005, to PHP286.33 million in 2006.  Net
loss from operations was pegged at PHP22.6 million in the 2006
first quarter, down from the PHP26.6 million in the first
quarter of 2005.  The Company indicated in its financial report
that no dividends have been declared for fiscal 2004 and 2005,
as well as for the first quarter of 2006.


STENIEL MFG.: Records PHP44MM Net Loss in the 2006 3rd Quarter
--------------------------------------------------------------
In a disclosure with the Philippine Stock Exchange, Steniel
Manufacturing Corporation reports that consolidated sales
revenue for the third quarter of 2006 reached PHP145.9 million
with an equivalent volume of 7,415 MT.

This is lower than last year's PHP222.9 million (13,253 MT).
The significant decline in revenues is mainly attributed to the
closure of the Cavite facility, which contributed PHP66.1
million (1,595 MT) for the same period in 2005.  Improved
revenues in Davao as a result of increased all-in and tolling
volume, however, cushioned the impact of the facility's closure.

Meanwhile, the operations in Cebu registered a lower volume as a
result of the loss during the second quarter of the tolling
business.  In terms of ASP, however, the all-in ASP for the
current quarter improved by 7% as compared with 2005's figures.

Gross profit for the current quarter which totaled PHP9.0
million, is lower than the PHP12.7 million posted in 2005.  The
lower GP is mainly a result of decreased volume.

The current quarter's operating expenses on a consolidated basis
of PHP33.0 million is higher the PHP30.8 million in 2005.
Overall, the company reported a loss from operations for the
current quarter of PHP24.0 million as compared with the loss
from operations of PHP18.1 million in 2005.

Other income for the current quarter consists mainly of income
from the lease of certain facilities offset partially by foreign
exchange losses.

The company reported a net loss of PHP44.0 million for the
quarter ending September 30, 2006.

Consolidated financing charges for the current quarter of
PHP21.0 million is the same as those in 2005.

The company failed to meet its quarterly principal amortizations
and interest payments since March 2004.  On May 24, 2006, the
creditor banks declared the company in default.  The company is
currently negotiating with the lender banks for the rescheduling
of its long-term debts.

Operating Plans

As in the past, the company's key strategies are focused towards
growing the existing market base, maintaining a sound financial
position, and improving manufacturing efficiencies to enhance
competitive standing.  The plans and programs include:

   1. The group's marketing strategy will continue to focus on
      re-establishing Steniel's presence among multinationals
      and top corporations at reasonable prices and acceptable
      credit terms.

   2. The company will further enhance operating efficiencies
      group wide by reducing waste levels and bringing down
      manufacturing costs.

   3. Improve the company's liquidity position through the
      effective and efficient management of working capital
      resources.

   4. The company will negotiate for the restructuring and
      renewal of our bank loan facilities, which matured in
      December 2005 in order to support the financial and
      operating plans of the Steniel Group.

                      Financial Condition

Consolidated current assets as at September 30, 2006, totaled
PHP476.3 million as compared with PHP468.2 million as at
December 31, 2005, and PHP536.9 million as at September 30,
2005.

Consolidated current liabilities totaled PHP1.2 billion as at
September 30, 2006, as compared to PHP1.1 billion and PHP1.1
billion as at December 31, 2005 and September 30, 2005,
respectively.  The increase as compared with that of the latest
year-end balance is attributed to increased balances in trade
payables as a result of increased dependence group wide on
suppliers' credit and the accrual of interest on outstanding
bank loans.

A full-text copy of Steniel's financials is available for free
at:

          http://bankrupt.com/misc/STN_17Q_Sep2006.pdf

                     About Steniel Manufacturing

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

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

                          *     *     *

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


SWIFT FOODS: Nine-Month Net Income Reaches PHP40 Million
--------------------------------------------------------
Swift Foods, Inc. registered PHP1.036 billion in revenues as of
3rd quarter of 2006, a slight decrease of about .06% as compared
to PHP1.037 billion posted in the same period of 2005, the
company said in a regulatory filing with the Philippine Stock
Exchange.

Cost of sales and operating expenses decreased by about .05%
when compared to same period of 2005.  The decrease in operating
expenses was due to strict implementation of cost saving
measures.

This resulted to a net income before tax of PHP2.4 million and
PHP40 million for the 3rd quarter of 2006 and for the period
ended September 30, 2006, respectively.

A full-text copy of Swift Foods' financials is available free of
charge at:

          http://bankrupt.com/misc/SFI_17Q_Sep2006.pdf

                       Financial Position

The company's assets as of September 30, 2006, amounted to
PHP1.88 billion as compared to audited December 31, 2005, of
PHP2.035 billion.  Current ratio for the 3rd quarter 2006 was
0.48:1 while 0.50:1 as of December 31, 2005.

Available cash on hand and in banks have been reduced due to
payable payments.

Accounts Receivable decreased by about 35% due to collections
made.

Biological current assets increased by about 42% due to increase
in volume.  Biological non-current assets decreased by 13% due
to culling of matured breeder stocks.

Accounts Payable and Accrued expenses went down by 11% due to
payments made and the decline of bulk raw material purchases due
to implementation of just-in-time method for inventories.

Retirement benefits obligation, Bank loans, and Long-term debt
decreased due to payments made.

                        About Swift Foods

Mandaluyong City-based, Swift Foods, Inc. --
http://swiftfoods.com.ph/-- was incorporated to assume RFM's
business of manufacturing, marketing, and distributing processed
and canned meat products, poultry products, and commercial
feeds.  It is organized into two major divisions -- agribusiness
and meat processing and sales distribution.  Its agribusiness
division produces broiler chickens and feeds while the latter
manufactures processed meat, canned goods, and customized meat
products for fast-food chains.

                Significant Doubt on Going Concern

Teresita M. Baes of Sycip Gorres Velayo & Co., the company's
independent auditors raised significant doubts on the company's
ability to continue as a going concern in the company's 2005
annual report, pointing out that the company has been incurring
net losses of PHP81.95 million for 2005 and PHP485.55 million in
2004, as well as the company's total current liabilities
exceeding its total current assets by PHP797.81 million and
PHP649.28 million, as of December 31, 2005 and 2004,
respectively.


UNIOIL RESOURCES: Sept. 30 Bal. Sheet Upside-Down By PHP570 Mil.
----------------------------------------------------------------
Unioil Resources & Holdings Company, Inc., reports consolidated
revenues of PHP6,953,734 for the third quarter of 2006,
consisting mainly of interest income, the company said in its
quarterly financials submitted to the Philippine Stock Exchange.

The same quarter of 2005 reflected revenues amounting to
PHP8,967,782.

Costs and expenses on the other hand increased by PHP4,124,196
or 11.58% from PHP35,620,205 of the same quarter in 2005.

As of September 30, 2006, the group's balance sheet shows a
deficit of PHP570,005,723.

Consolidated total assets as of September 30, 2006, amounted to
PHP569,023,655 of which approximately 66% represent long-term
assets and receivable.  Total consolidated liabilities amounted
to PHP1,122,200,305 of which 74.01% approximately represent
advances from related parties.  Compared to the balance of
consolidated liabilities as of December 31, 2005, there was an
increase of PHP34.5 million due mainly to the increased in
accounts payable and accrued expenses and deposit liabilities.

                          About Unioil

Headquartered in Makati City, Philippines, Unioil Resources &
Holdings Company, Inc. , formerly Unioil Exploration and Mineral
Development Co., Inc., was organized primarily for the
exploration and  development of petroleum and other mineral
products.  The company changed its name to Unioil & Gas
Development Co., Inc. in November 1992 as it concentrated on oil
exploration.

Unioil transformed itself from a gas and oil exploration and
development company into a holding company engaged primarily in
investment banking and other related concerns like equity and
quasi-equity fund mobilization.  All the oil exploration assets
and liabilities were spun off into another oil exploration
company called Phoenix Energy Corporation, in exchange for
notes, which are now carried on the books of the corporation as
long-term receivables.

                Significant Doubt on Going Concern

On November 25, 2006, the Troubled Company Reporter - Asia
Pacific reported that after auditing Unioil's annual report for
the year ended December 31, 2005, Luis Canete, of Luis Canete &
Company, the Company's independent auditor, raised substantial
doubt about the Company and its subsidiaries' ability to
continue as a going concern.  Mr. Canete noted that Unioil and
its subsidiaries reflected a total deficit of PHP2.11 billion as
of December 31, 2005, and PHP2.10 billion as of December 31,
2004, as well as a capital deficiency of PHP523.32 million and
PHP513.47 million for 2005 and 2004.  The financial statements
of the Parent Company showed a total deficit of PHP1.57 billion
and a capital deficiency of PHP3.05 million as of December 31,
2005.

                     Subsidiaries in Trouble

The Company's accumulated deficit and the resulting negative
equity have resulted mainly from the losses incurred by Unioil's
wholly owned subsidiary, Westmont Investment Corporation, which
encountered difficulties following the Asian financial crisis in
1997.

In 2000, the Securities and Exchange Commission issued a cease
and desist order preventing Wincorp from dealing with the public
for alleged violation of the Revised Securities Act by offering
unregistered securities in the form of confirmation advice.
Following a denial of Wincorp's motion to lift the Cease-and-
Desist Order, the SEC filed a complaint with the Department of
Justice charging Wincorp and its officers and directors with
violation of the Securities Regulation Code.  The case was later
dismissed by the DOJ on October 29, 2002.

Wincorp's wholly owned subsidiaries, Wincorp Securities, Inc.,
and Westmont Forex Corporation, have voluntarily ceased
operations in September 2000 and December 2001.  Another wholly
owned subsidiary, Landwest Corporation, incorporated on Feb. 13,
1996, has not started commercial operations, leaving Winbank,
Inc. as the only subsidiary still in operation.


VITARICH CORP: Posts PHP4.8MM Income for 2006 Third Quarter
-----------------------------------------------------------
Vitarich Corporation reports consolidated sales revenue
amounting to PHP591.1 million for the third quarter of 2006, 10%
lower than the PHP659.7 million posted in 2005.

As of September 2006, total sales was PHP1.7 billion, a 27%
decrease as compared to the sales of PHP2.4 billion in 2005.
The significant decline in revenues is mainly attributed to the
move of the company to reduce its poultry volume and
continuously shifting its focus to its feeds business.

Cost of good sold correspondingly decreased by 28% at the end of
the third quarter as compared than last year.  Amidst the
increasing costs of imported raw materials, the company still
managed to post a positive result of its operating income from
continuing operation of PHP19.5 million for the nine months
period.

Operating expenses on consolidated basis were reduced by 27%,
from PHP370 million of 2005 to PHP269 million, as a result of
prudent spending coupled with continuous strategic activities
implemented by the company to further lower the level of
operating expenses.

Apart from the ongoing cost cutting programs, the company will
continue to focus on instituting the following measures to boost
revenues and minimize expenses:

   * Alternate sourcing of raw materials to produce competitive
     cost of finished products;

   * Continuous implementation of cost-reduction measures; and

   * Concentration on high margin products.

The company posted a net income for the third quarter of
PHP4.8 million as against the losses of PHP69.8 million posted
in 2005.  As of the third quarter of 2006, the company
registered an income after financing charges of PHP8.1 million,
a remarkable improvement from the same period in 2005, which
posted losses of PHP174.4 million.

A full-text copy of the company's financial results is available
for free at:

         http://bankrupt.com/misc/VITA_17Q_Sep2006.pdf

                      Financial Condition

The company's total assets as of September 30, 2006, amounted to
PHP3.4 billion which is almost within December 2005 level.
Consolidated current assets increased by 2% primarily due to the
increase of trade and other receivables by 4% due to lower
collection efficiency.  However, inventories decreased by 5%,
basically due to slow production levels and keeping the
inventories at targeted levels by controlling raw materials
procurement and ensuring prompt delivery of finished goods.

Third quarter cash balance increased to PHP79.9 million from
PHP62.1 million as of the end of 2005.  Likewise, prepaid
expense and other current asset account of PHP18.6 million
decreased by almost 15% from last year of PHP21.7 million.

Trade and other payables went down by 3% due to payments made
and reduction in purchases.

There were no amortization for the excess of face value over the
fair value of the interest-bearing loans, which was recognized
as a result of the company's petition for a corporate
rehabilitation.

Stockholders' equity as of September posted a positive of
PHP228.1 million higher than PHP220.0 million of 2005 basically
due to the net effect of income as of the third quarter.

                          No Dividends

In 1995, Vitarch declared a cash dividend of PHP0.10/share.  For
1996 up to third quarter of 2006, the Corporation did not
declare any dividend because of the losses suffered by it.

                    Corporate Rehabilitation

The company has finalized an amendment agreement with the local
creditors.  The creditors other than those of local creditors
who signed the latest amendment are yet to enter into a formal
agreement with the Company.  Essentially, the company is
proposing for a lower interest rates and longer period of
repayment of loans in view of the substantial losses incurred
for the year 2005 and from previous years.

                         About Vitarich

Bulacan, Philippines-based Vitarich Corporation --
http://www.vitarich.com/-- is among the leading integrated
producers and wholesalers of poultry and animal feed products in
the Philippines.  The Company also develops, produces and sells
animal health products.  It is dedicated to the poultry and
feeds industry, committing all of its resources to the
production of poultry products, including upstream production
activities such as feed milling, and additional ventures where
the company's knowledge of the poultry and feeds production
process provides it with competitive advantage.

Despite the Company's expansion into other areas, its core
business remains rooted in poultry.  VITA is presently engaged
in the manufacture and distribution of various poultry products
like chicken, animal and aqua feeds, and day-old chicks, among
others.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 10, 2006, that after auditing Vitarich's 2005 annual
report, Punongbayan & Araullo raised substantial doubt on the
Company's ability to continue as a going concern, due to
significant losses for the past three years, including net
losses worth PHP249.3 million in 2005 and PHP291.2 million in
2004, resulting in significant deficit amounting to PHP1.8
billion as of Dec. 31, 2005.


VULCAN INDUSTRIAL: Posts Nine-Month Net Loss of PHP1.89 Million
---------------------------------------------------------------
Vulcan Industrial & Mining Corporation reports a consolidated
gross revenue for the nine months ended September 30, 2006,
amounting to PHP43.04 million compared to PHP32.93 million for
the nine months ended September 30, 2005, resulting in net loss
after minority interest of PHP1.89 million compared to net loss
after minority interest of PHP6.66 million in September 30,
2005.

There was an increase in sale of aggregates for the third
quarter of 2006 compared to the third quarter of 2005 due to the
effort exerted by the company to sell more and to reduce costs.
The company's revenue was mainly derived from the sale of
aggregates of subsidiary, Vulcan Materials Corporation, since
the Vulcan Industrial is concentrating on exploration activities
and has no active mine at the moment.  So far the results of the
exploration work in Panaon Island is very encouraging, the
company says.

Total cost and expenses increased to PHP47.11 million as of
September 30, 2006, from PHP46.04 million as of September 30,
2005, due to the increase in the sales and increase in power
cost.

Total assets were PHP815.88 million as of September 30, 2006,
3.02% lower than the PHP841.32 million as of December 31, 2005.
Accounts receivable increased due to the increase in sales
during the quarter and non-collection of some of the non-trade
receivables during the period.  The decrease in investments in
associates was used to partially pay the advances to related
party and other payables.  Deferred charges increased because of
the costs incurred in various exploration activities.

Liabilities were PHP288.64 million as of September 30, 2006,
decreased by 7.54% compared to PHP312.19 million on December 31,
2005.  Liabilities decreased due to the partial payment of some
payables and advances to related party as of September 30, 2006.

Deficit showed a balance of PHP72.85 million as of September 30,
2006, compared to PHP68.78 million on December 31, 2005.

The top five key performance indicators of the Company and its
majority owned subsidiary are as follows:

                          Sept. 30, 2006      Dec. 31, 2005
                         ----------------   ----------------

   Current Ratio                0.22 : 1           0.12 : 1

   Debt to Equity Ratio         0.55 : 1           0.59 : 1

   Equity to Debt Ratio         1.83 : 1           1.69 : 1

   Book Value per Share          PHP0.89            PHP0.89

   Earnings per Share          PHP0.0001           PHP0.028

A full-text copy of Vulcan Industrial's financial results is
available for free at:

          http://bankrupt.com/misc/VUL_17Q_Sep2006.pdf

                    About Vulcan Industrial

Headquartered in Mandaluyong, Vulcan Industrial & Mining
Corporation is engaged mainly in oil and mineral exploration
projects.  One of its successful ventures is the concrete
aggregate project in Rodriguez, Rizal, which was spun-off into a
joint venture company called Vulcan Materials Corporation.  VMC
is on its tenth year of rock aggregate quarrying, crushing and
marketing.

VMC has an edge over the other rock aggregates companies due to
its captive market in D.M. Consunji, Inc., one of the giants in
the construction industry, which owns 49% of VMC, the remaining
51% is owned by Vulcan Industrial.

As of December 31, 2001, the Company is still in the exploration
stage and no discovery of oil and gas in commercial quantities
has been made.  The full recovery of deferred petroleum
exploration costs is dependent on the discovery of oil and gas
in commercial quantities.

                         *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
October 18, 2006, after auditing Vulcan Industrial's financial
report for the year ended December 31, 2005, Sycip, Gorres,
Velayo & Co. raised significant doubt on the Company's ability
to continue operating as a going concern due to its difficulty
in meeting its obligations to creditor banks.

The Company and its subsidiary's current liabilities exceeded
current assets by PHP227.1 million in 2005, and by PHP151.8
million in 2004, and its recurring losses are due to its share
in the net losses of subsidiary Vulcan Materials Corp.


WELLEX INDUSTRIES: Posts Nine-Month Net Loss of PHP29.8 Million
---------------------------------------------------------------
Wellex Industries, Inc. reports a net loss of PHP29.8 million
for the nine months ending September 30, 2006.

The company reported revenues of PHP277,000 for the nine months
ending September 30, 2006.  Cost and expenses amounted to
PHP39.04 million, giving the company a loss from operations of
PHP38.77 million.

Other income amounted to PHP9.0 million.

As of September 30, 2006, the company had total assets of
PHP2.6 billion, total liabilities of PHP742.5 million, and a
stockholders' equity of PHP1.9 billion.

A full-text copy of Wellex's financial results is available for
free at:

          http://bankrupt.com/misc/WIN_17Q_Sep2006.pdf

                     About Wellex Industries

Makati City-based Wellex Industries, Inc. was originally
incorporated as Republic Resources and Development Corporation,
whose primary purpose was to engage in the business of mining
and oil exploration. But due to financial distress, the firm's
business operations have been suspended. The Company's present
activity is focused on reorganizing its operations in
preparation for its new business.

In 1996, WIN's new management has developed a business plan for
the rehabilitation of the company, principally by changing its
primary business from mining and oil exploration to real estate
and energy development. Mining, however, will continue to be one
of the Company's secondary purposes. In 1997, it subsequently
transformed to a holding company for manufacturing concerns with
the entry of the Wellex Group. The Company has since then been
able to initiate projects which have been true to its vision. In
November 1999, WIN formalized the entry of Plastic City
Industrial Corporation (PCIC) into the Group. PCIC is the
Philippines' first fully integrated manufacturer of plastic
products used in a number of industries.

After auditing Wellex Industries' financial statements for the
year ended December 31, 2005, Joycelyn J. Villaflores, of Diaz
Murillo Dalupan and Co. raised significant doubt on the
Company's ability to continue as a going concern since the Group
had been incurring losses in prior years and had a deficit of
PHP1.369 billion and PHPP1.273 billion as of December 31, 2005
and 2004.


WISE HOLDINGS: Sept. 30 Bal. Sheet Upside-Down by PHP687.5 Mil.
---------------------------------------------------------------
Wise Holdings, Inc. reports a net loss of PHP51.1 million for
the period ended September 30, 2006, which is 100% higher than
the net loss of PHP25.6 million for the comparable period in
2005.

The company did not recognize the excess of equity loss over the
carrying costs of its investments in certain subsidiaries.  The
excess amounted to PHP151.5 million and PHP125.2 million for the
periods ended September 30, 2006 and 2005, respectively.  Other
factors contributing to the higher net loss in 2006 are:

   (1) Decrease in commissions and fees - 52% decrease is
       attributed to the reduced volume of fees generated from
       service charges of a subsidiary bank. Fees from service
       charges amounted to PHP19.7 million for the period ended
       September 30, 2006 versus PHP39.9 million in 2005;

   (2) Increase in management, syndication and professional fees
       by 11% increase is mainly due to a one-time fee amounting
       to PHP0.4 million collected by a certain subsidiary for
       professional services rendered;

   (3) 43% decrease in interest income - interest income went
       down from PHP28.3 million as of September 30, 2005 to
       PHP16 million for the comparable period this year. The
       decrease was mainly attributed to the decrease in
       interest income of a subsidiary bank due to the lower
       loans receivable balance in 2006 coupled by the increase
       in nonaccruing accounts. Accruing loans receivable went
       down from PHP292.2 million as of September 30, 2005 to
       only PHP86.9 million as of September 30, 2006;

   (4) Dividend income - 2005 income represents dividends from
       investments in a utility company;

   (5) Interest expense - 31% increase in 2006. Interest expense
       went up from PHP206.4 million for the period ended
       September 30, 2006 to PHP270.8 million for the same
       period this year. The significant increase in 2006 was
       mainly attributed to the proper accrual of interest
       expense due on certain bills payable of a subsidiary
       bank. Accrual of interest due on certain bills payable
       was deferred by said subsidiary in 2005;

   (6) Provision for income tax - this represents final tax on
       cash deposits & placements; the decrease was mainly due
       to the much lower interest rates particularly on Peso
       deposits & placements in 2006;

   (7) Minority interest in net loss of consolidated
       subsidiaries - 18% increase was mainly due to the higher
       net loss of a subsidiary bank for the period ended
       September 30, 2006 as compared to the same period in
       2005; Said subsidiary bank reported a 52% higher net loss
       for 2006.

   (8) Excess of equity loss over costs of investments - the
       company has ceased recognition of its equity share in net
       losses of certain subsidiaries since late 2003 for the
       reason that said losses have exceeded the carrying value
       of the company's investments in those subsidiaries. The
       higher amount in 2006 mainly relates to the higher net
       losses of those subsidiaries for the period ended
       September 30, 2006 as compared to comparable period in
       2005.

As of September 30, 2006, the company reports a stockholders'
equity deficit of PHP687.5 million on total assets of PHP6.6
billion and total liabilities of PHP7.3 billion.

A full-text copy of Wise Holdings' financial results is
available for free at:

          http://bankrupt.com/misc/WHI_17Q_Nov2006.pdf

                      About Wise Holdings

Wise Holdings, Inc., was originally known as Wise and Company,
Inc.  WHI was the parent company of several wholly owned and
majority owned subsidiaries engaged in various industries
including trading of industrial machinery and other products,
real estate development, and insurance services.  WHI was later
restructured when the Jakarta-based Dharmala Group acquired
strategic interest in the company through a purchase of 70%
equity from the original WCI stockholders.  The company was
renamed Dharmala Philippines, Inc., and converted to a purely
management and holding company.  DPI was organized to take
advantage of the goodwill and the regional presence of Dharmala
in the ASEAN region.  The Group operates 124 subsidiaries and
affiliates, maintaining offices throughout the ASEAN region and
in the key cities of London, Sydney and New York.  It is widely
known in the region for trading, construction and financial
operations.

Currently, the company operates through four strategic business
groups: the Trading group, the Financial Services Group, the
Consumer Banking Group, and the Investments Group.

                         Going Concern

On June 5, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Company has incurred substantial losses since
1997.  As shown in the consolidated financial statements for the
period ended September 30, 2005, and 2004, the Company continues
to incur losses amounting to about PHP25.6 million and
PHP31.5 million, respectively.  The Company acknowledged that
these factors, among others, indicate that it may face
difficulties to continue operating in the normal course.

The Company's continuation of its operations in the normal
course is dependent upon its ability to:

   (a) generate sufficient cash flow to meet its obligations on
       a timely basis;

   (b) obtain additional financing or capital infusion; and

   (c) eventually regain profitability.


ZIPPORAH REALTY: Posts PHP18.31-Million Nine-Month Net Loss
-----------------------------------------------------------
Zipporah Realty Holdings, Inc., reports a consolidated net loss
of PHP18,314,986 for the period of nine months or 20.9% lower
than the loss incurred during the same quarter of 2005.

The company has made a PHP5,020,135 sale of condominium units
net of cost of sales during the third quarter of this year. This
was the result of unit swap to its investors as payment of loans
payable.  There was no conversion from Rent to Own Scheme to
Installment Sales.

Interest income was 17.13% lower as of September 30, 2006,
compared with the same quarter in 2005.  This is attributed to
the decreased in collection of accounts on installment
receivables.

Consolidated finance and operating expenses for nine months
ending September 30, 2006 decreased by PHP2,169,645 or 41.98% as
compared to the same period of 2005.  The decrease in the
operating expenses of the Company was mainly due to decrease in
association dues, professional fees and representation expenses
incurred during 2006.

A full-text copy of Zipporah's financial results is available
free of charge at:

          http://bankrupt.com/misc/ZIP_17Q_Sep2006.pdf

                         About Zipporah

Zipporah Realty Holdings, Inc. was originally incorporated as a
mining firm.  Presently, it is primarily engaged in real estate
holding and development with mining as its secondary purpose.
Its main source of revenue comes from sales of real estate
properties.

The Company's subsidiary, EBEDEV, Inc., launched its first
project, the Westmont Village Project along Dr. A. Santos Avenue
in Sucat, Paranaque, which started commercial operations in
January 1996.  The Westmont Village was conceptualized primarily
to answer the needs of young urban professionals and the growing
demands of the medium income market for a condominium project
accessible to the centers of commerce and industry, affordable
and with the amenities of a first-class condominium.

                      Going Concern Doubt

After auditing Zipporah's annual report for the period ended
December 31, 2005, Luis Canete and Co., raised substantial doubt
on the Company and its subsidiary's ability to continue as a
going concern.  The auditor pointed at the Company's deficit of
PHP744.51 million and a net loss of PHP32.67 million in 2005.


* Domestic Liquidity Growth Continues in November
-------------------------------------------------
Demand for money continued to grow in November as domestic
liquidity or M3 growth based on data from the Bangko Sentral ng
Pilipinas' Depository Corporations Survey accelerated to 18.5%
year-on-year from 16.1% in October.  On a month-on-month basis,
M3 growth also rose to 4.0% from 1.4% in October.

The expansion in liquidity continued to be driven by strong
foreign exchange inflows from overseas Filipino workers (OFW)
remittances, portfolio and direct investments.  As in previous
months, these inflows have allowed the BSP and banks to build up
their foreign assets and prepay their foreign obligations.

The growth in domestic credit also contributed to the expansion
in liquidity.  Private sector credit growth accelerated to 3.5%
from 2.9% in the previous month as lending to private firms and
individuals picked up to offset the decline in credit to non-
bank financial corporations. Likewise, net public sector credit
grew by 5.1% from 3.8% in the previous month due mainly to a
significant rise in credit extended to the national government,
other public entities, and local government units.

The BSP has noted that financial deepening in the Philippines
continues to allow liquidity growth to promote economic growth
without price inflation.  Nevertheless, the BSP will continue to
monitor closely the level of domestic liquidity to ensure that
it remains consistent with the government's price stability and
growth objectives.  The overall monetary policy stance will
remain geared towards addressing all emerging risks to inflation
and inflation expectations in a timely manner.

                          *     *     *

"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.


* Inflation Eases Further to 4.3% in December
---------------------------------------------
Headline inflation decelerated to its lowest level since March
2004 at 4.3% in December, which was within the Bangko Sentral ng
Pilipinas' forecast of 4.2%-4.8%.  This was traced mainly to the
slowdown in the inflation rates for food, beverages and tobacco
and fuel, light and water.  The strengthening of the peso has
also contributed to the deceleration in headline inflation.  As
expected, the average inflation rate for 2006 of 6.2% was higher
than the Government's full-year target of 4.0%-5.0%, but lower
than the average inflation rate for 2005 of 7.6%.  On a month-
on-month basis, December inflation was steady at 0.1%.

Year-on-year core inflation also sustained its downtrend,
registering at 4.6% in December from 4.7% in November.  Average
core inflation for 2006 was 5.5%, the lowest average rate
recorded since 2003.

The December CPI data were consistent with the BSP's expectation
of a general deceleration in inflation over the policy horizon.
The steady decline in inflation in the past year has been due to
easing oil prices, a stronger peso and generally stable food
prices.  For 2007, average inflation is likely to settle within
the Government's target range of 4-5 percent in the absence of
further adverse shocks. Limited demand-based price pressures, as
indicated by the sustained slowdown in core inflation, and
manageable inflation expectations support this outlook.  Latest
forecasts also indicate that average inflation in 2008 is likely
to be in line with the 4.0% 1 percentage point target.

Nevertheless, despite recent benign readings in inflation, the
BSP remains watchful of the potential risks to inflation.  These
include the impact on food prices of the El Nino dry spell,
upward adjustments in domestic power costs and wages, and
volatility in world oil prices.  In view of these risks, the BSP
remains vigilant against potential second-round effects on
price- and wage-setting behavior and possible adverse shifts in
the public's inflation expectations.  Monetary authorities will
also continue to pay close attention to a possible excessive
buildup in liquidity conditions that could lead to price
pressures in the future.

                          *     *     *

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

CKE RESTAURANTS: Repurchases 2 Mil. Shares from Pirate Capital
--------------------------------------------------------------
CKE Restaurants, Inc., repurchased two million shares of its
common stock from its largest shareholder, Pirate Capital, LLC,
for US$18.53 per share, which reflects the closing price of the
its common stock on Dec. 28, 2006.

The Company used its revolving credit facility to fund the
approximately US$37.1 million total purchase price.  The
purchase was completed through a privately negotiated
transaction under the company's stock repurchase program.

Following the transaction, Pirate Capital's ownership stake in
the company is approximately 5,048,000 shares or about 7.2% of
the total shares outstanding as of Dec. 29, 2006.

Andrew F. Puzder, president and chief executive officer, said,
"We are very pleased to be able to execute this transaction,
which represents nearly 3% of our outstanding common shares.
Our improved operating results and reduced debt balance have
given us the financial flexibility to execute such a
transaction.  As was the case with the recent conversions of
over 85% of our convertible notes into equity, we remain poised
to take advantage of opportunities to increase shareholder
value."

During fiscal 2007, the company has repurchased over 4.5 million
shares under its stock repurchase program at a cost of
approximately US$79.3 million or approximately US$17.56 per
share.

                     About CKE Restaurants

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

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 14, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on CKE Restaurants Inc. to BB- from B+.
All ratings were removed from CreditWatch, where they were
placed on Oct. 24, 2006, with positive implications.  The
outlook is stable.


COMPACT METAL: Members Pass All Resolutions at EGM
--------------------------------------------------
Under the Rule 704(14) of the Listing Manual of the Singapore
Exchange Securities Trading Limited, the shareholders of Compact
Metal Industries Ltd held an extraordinary general meeting on
Dec. 30, 2006, and all these resolutions were passed:

Ordinary Resolution 1:

   * Approval of Restated and Supplemental Restructuring
     Agreement "RSRA" -- entered between the company, its
     Singapore subsidiaries, creditor banks and Tan family --
     and the Debt Purchase and Conversion Agreement "DPCA";

Ordinary Resolution 2:

   * Approval of the proposed creditor banks' debt conversion,
     proposed investor debt conversion and proposed investor
     further debt conversion;

Ordinary Resolution 3:

   * Approval of the Proposed Rights Issue;

Ordinary Resolution 4:

   * Proposed Investor Share Placement.  That contingent upon
     the passing of Resolutions 1 to 3 and Resolutions 5 to 10:

     -- the Directors will  be authorized to allot and issue to
        the proposed investor the number of new shares and one
        Warrant with each new share issued, equivalent to the
        number of Rights Shares that remain unsubscribed; and

     -- the Directors will be authorized to complete and execute
        all the documents and to approve any amendments,
        alteration or modification to any documents as they may
        consider necessary, desirable or expedient to give full
        effect to this Resolution.

Ordinary Resolution 5:

   * Proposed Ratus Projek Acquisition.  That contingent upon
     the passing of Resolutions 1 to 4 and Resolutions 6 to 10:

     -- approval will be given for the company's acquisition of
        the entire issued and paid-up share capital of Ratus
        Projek, which is subject to the terms of the Ratus
        Projek Acquisition Agreement and that the entry in the
        execution of the Ratus Projek Acquisition Agreement will
        be ratified, confirmed and approved; and

     -- the Directors will be authorized to allot and issue
        214,149,478 new shares at an issue price of US$0.02 each
        pursuant to the Ratus Projek Acquisition Agreement, in
        respect with the existing shares.

Ordinary Resolution 6:

   * Proposed Trade and Professionals' Debt Conversion.  That
     contingent upon the passing of Resolutions 1 to 5 and
     Resolutions 7 to 10:

     -- the Directors will be authorized to allot and issue of
        up to 100,000,000 new shares at an issue price of
        US$0.02 each to the trade creditors and to the company's
        professional advisors, pursuant to the RSRA, for the
        partial settlement of amounts owed to them.

Ordinary Resolution 7:

   * Proposed Grant of Management Options.  That contingent upon
     the passing of Resolutions 1 to 6 and Resolutions 8 to 10,
     the Directors will be authorized to grant:

     -- 40,000,000 Management Options to the proposed investor
        or his nominated person to subscribe for new shares at
        an issue price of US$0.0132 each pursuant to the
        Investment Agreement; and

     -- 8,000,000 Management Options to Mr. John Chew Choy Seng,
        Group General Manager, to subscribe for new Shares at an
        issue price of SGD0.0132 each pursuant to the Investment
        Agreement.

Ordinary Resolution 8:

   * Proposed Grant of Management Options.  That contingent upon
     the passing of Resolutions 1 to 7 and Resolutions 9 and 10,
     the Directors will be authorized to grant 8,000,000
     Management Options to Tan Chin Eng, Tan Hua Joo, Tan Kay
     Tho and Tan Hua Tian, to subscribe for new Shares at an
     issue price of SGD0.0132 each pursuant to the Investment
     Agreement;

Ordinary Resolution 9:

   * Proposed Grant of Management Options.  That contingent upon
     the passing of Resolutions 1 to 8 and Resolution 10: and

     -- the Directors will be authorized under Section 161 of
        the Companies Act, Chapter 50 to allot and issue up to
        80,000,000 new Shares pursuant to the exercise of the
        Management Options.

Ordinary Resolution 10:

   * Proposed Whitewash Resolution.  That contingent upon the
     passing of Resolutions 1 to 9 and subject to the
     satisfaction of all the conditions set out in the
     Securities Industry Council's letter of granting a waiver
     for the proposed investor and his concert parties to make a
     mandatory offer for the remaining shares not owned or
     controlled by him and his concert parties under the
     Proposed Investor Debt Conversion, the shareholders waive
     their rights to receive the Offer under Rule 14 of the Code
     from the proposed investor and parties acting in concert
     with him.

                      About Compact Metal

Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products.  The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects.  Its other
activities include trading aluminium and related products, and
hotel ownership and others.

As reported by the Troubled Company Reporter - Asia Pacific on
August 10, 2006, auditors KPMG raised significant doubt on
Compact Metal's ability to continue as a going concern, citing
reasons that include:

     i. the group's and company's current liabilities that
        exceeded their current assets by SGD81.96 million and
        SGD78.82 million, respectively, as of December 31, 2005;

    ii. the group's and company's recorded net liabilities
        attributable to equity holders of the parent of
        SGD43.10 million and US$43.83 million, respectively, as
        of December 31, 2005; and

   iii. the group's recorded recurring losses with net losses
        attributable to equity holders of the parent of
        US$24.09 million for the year ended December 31, 2005.


COMPACT METAL: Posts Shareholders' Change of Interests
------------------------------------------------------
Compact Metal Industries Ltd disclosed a series of changes to
its shareholders' interest in the company.

Shining Holdings Pte Ltd has reduced its holdings of direct
shares on Jan. 3, 2007.  Previously it held 21,537,000 direct
shares with 9.735% issued share capital.  At present, Shining
Holdings holds 20,537,000 direct shares with 9.283% issued share
capital. Its deemed shares remains as it is at 485,000 shares
with 0.219% issued share capital.

Shining Holdings sold some of its direct shares to meet its
financial obligations thus the reduction of its direct shares.

With regards to the disposal of shares of Shining Holdings, the
other shareholders of the company also posted changes to their
holdings.

Tan Chin Hoon held 22,022,000 deemed shares before the change
with 9.955% issued share capital.  After the change, Mr. Tan
holds 21,022,000 deemed shares with 9.503% issued share capital.

Tan Kay Tho held 22,397,000 deemed shares with 10.124% issued
share capital and 2,347,920 direct shares with 1.061% issued
share capital.  After the change, Mr. Tan holds 21,397,000
deemed shares with 9.672% issued share capital and 2,347,920
direct shares with 1.061% issued share capital.

Tan Kay Kiang previously held 22,022,000 deemed shares with
9.955% issued share capital and 2,323,000 direct shares with
1.050% issued share capital.  Presently, Mr. Tan holds
21,022,000 deemed shares with 9.503% issued share capital and
2,323,000 direct shares with 1.050% issued share capital.

Tan Kay Sing previously held 22,022,000 deemed shares with
9.955% issued share capital and 6,755,000 direct shares with
3.053% issued share capital.  Presently, Mr. Tan holds
21,022,000 deemed shares with 9.503% issued share capital and
6,755,000 direct shares with 3.053% issued share capital.

                      About Compact Metal

Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products.  The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects.  Its other
activities include trading aluminium and related products, and
hotel ownership and others.

As reported by the Troubled Company Reporter - Asia Pacific on
August 10, 2006, auditors KPMG raised significant doubt on
Compact Metal's ability to continue as a going concern, citing
reasons that include:

     i. the group's and company's current liabilities that
        exceeded their current assets by SGD81.96 million and
        SGD78.82 million, respectively, as of December 31, 2005;

    ii. the group's and company's recorded net liabilities
        attributable to equity holders of the parent of
        SGD43.10 million and US$43.83 million, respectively, as
        of December 31, 2005; and

   iii. the group's recorded recurring losses with net losses
        attributable to equity holders of the parent of
        US$24.09 million for the year ended December 31, 2005.


COMPACT METAL: Register and Transfer Books to Close on Jan. 22
--------------------------------------------------------------
Pursuant to the Proposed Rights Issue, Compact Metal Industries
Ltd disclosed that its Register of Members and the Transfer
Books will be closed on Jan. 22, 2007, at 5:00 p.m.

The completed and stamped transfers received by M & C Services
Private Limited, the company's Share Registrar, will be
registered to determine the shareholders' entitlements under the
Proposed Rights Issue.  Moreover, those entitled shareholders
whose securities accounts with The Central Depository (Pte)
Limited are credited with Shares as at the Books Closure Date
will be entitled to the provisional allotments of Rights Shares.

Shareholders, whose registered addresses are outside Singapore
should provide The Central Depository or M & C Services Private
Limited, at least five market days prior to the Books Closure
Date, with an address in Singapore to obtain the Offer
Information Statement if they wish to participate in the
Proposed Rights Issue.

The Central Depository and M & C Services can be reached at:

         The Central Depository (Pte) Limited
         4 Shenton Way
         #02-01 SGX Centre 2
         Singapore 068807; and

         M & C Services Private Limited
         138 Robinson Road
         #17-00 The Corporate Office
         Singapore 068906

                      About Compact Metal

Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products.  The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects.  Its other
activities include trading aluminium and related products, and
hotel ownership and others.

As reported by the Troubled Company Reporter - Asia Pacific on
August 10, 2006, auditors KPMG raised significant doubt on
Compact Metal's ability to continue as a going concern, citing
reasons that include:

     i. the group's and company's current liabilities that
        exceeded their current assets by SGD81.96 million and
        SGD78.82 million, respectively, as of December 31, 2005;

    ii. the group's and company's recorded net liabilities
        attributable to equity holders of the parent of
        SGD43.10 million and US$43.83 million, respectively, as
        of December 31, 2005; and

   iii. the group's recorded recurring losses with net losses
        attributable to equity holders of the parent of
        US$24.09 million for the year ended December 31, 2005.


L&M GROUP: Judicial Management Order Extended for 180 Days
----------------------------------------------------------
The High Court of Singapore has extended the Judicial Management
Order imposed in L&M Group Investments Limited for a period of
180 days from Jan. 5, 2007.

Previously, the company was placed under Judicial Management on
Jan. 11, 2006, which was extended by the Court for a further of
180 days.

                  About L&M Group Investments

Founded in 1971 and listed on the Stock Exchange of Singapore
since 1984, L&M Group Investments Ltd delivers its specialized
engineering and construction services through two divisions --
Geotechnic and Structural Systems.  Geotechnic Division
undertakes the design and construction of geotechnical
engineering and heavy foundation works, the sale of building
products and rental of engineering equipment.  Structural
Systems Division undertakes the design and construction of
structural and civil engineering works.

                          *     *     *

In December 2005, the Company sought to appoint a judicial
manager to revive the Company's operations.  The High Court of
Singapore placed the Company under judicial management on
January 11, 2006, under Bob Low Sie of Messrs Bob Low Sie &
Company.  The Judicial Management Order will remain in force
until January 9, 2007.

As of Nov. 23, 2006, the company has shareholders' deficit of
US$5.20 million, on total assets of US$57.98 million as
reported by the Troubled Company Reporter - Asia Pacific on
Nov. 24.


SEAGATE TECH: To Invest US$272 Million for Substrate Facility
-------------------------------------------------------------
Seagate Technology disclosed on Jan. 4, 2007, that it plans to
build a US$272 million worth of substrate facility in the
Malaysian southern state, according to Herald Tribune Business.

The report also states that the new plant, which is expected to
be launched in 2008, will create up to 2,500 new jobs.

The facility will supply a large portion of the company's
requirement for aluminum substrates - the base platters used in
the assembly of hard disk drives, added in the company's
statement.

"Seagate's substrate facility is designed to position the
company for future growth," said William Watkins Seagate's chief
executive.

The Malaysian plant would enable the company to leverage the
technical expertise and resources of its existing printed
circuit board assembly facility in Senai and media manufacturing
facilities in Singapore.  It would also feed its regional disk
drive assembly operations, Mr. Watkins added.

Seagate's media substrate facility is the company's third
manufacturing operation in Malaysia. It also has a plant in
northern Penang state, which is the world's single largest
manufacturer of thin film magnetic heads, the Herald Tribune
Business also cites.

                    About Seagate Technology

Headquartered in Scotts Valley, California, Seagate Technology,
-- http://www.seagate.com/-- designs, manufactures and markets
rigid disc drives (disc drives or hard drives), which are used
as the primary medium for storing electronic information in
systems ranging from desktop and notebook computers, and
consumer electronics devices to data centers delivering
information over corporate networks and the Internet. Seagate
Technology has R&D and product sites in: Silicon Valley,
California; Pittsburgh, Pennsylvania; Longmont, Colorado;
Bloomington and Shakopee, Minnesota; Springtown, Northern
Ireland; and Singapore.  Manufacturing and customer service
sites are located in: California, Colorado, Minnesota, Oklahoma,
Northern Ireland, China, Malaysia, Thailand and Singapore.

                          *     *     *

Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate.  This concludes the review initiated
by Moody's on Dec. 21, 2005.  The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. The
ratings outlook is stable.

Moody's confirmed these ratings:

     -- Corporate Family Rating: Ba1; and
     -- SGL Rating of 1.

Moody's upgraded these ratings:

   Seagate Technology HDD Holdings:

     -- US$400 million senior notes 8%, due 2009: to Ba1


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

ABICO HOLDINGS: Seeks Extension for Financial Reports Revisions
---------------------------------------------------------------
On Nov. 23, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Stock Exchange of Thailand suspended the
trading of Abico Holdings Pcl's securities.

The SET asked for Abico's amended financial statements for the
year 2005 and for the period ended June 30, 2006, as the bourse
found out that the company:

    1. did not comply with the general accounting standard in
       recording the revenues and liabilities of its subsidiary;
       and

    2. must submit a special audit report concerning the
       relationship between it and two unnamed companies.

The SET wanted Abico to comply with the requirements by Jan. 3,
2007.

In a filing with the bourse on Jan. 5, 2007, Abico admitted that
there was indeed a revision of the financial statement of Abico
Land Co.,Ltd., its subsidiary.  According to Abico, its unit
revised all the accounts involving the sales of the land in its
A-Land project.

In addition, the company seeks for extension of the submission
of the revised financial report as its auditor "had too much
work during the closing period of the fiscal year and was afraid
to make mistake due to haste."

Abico also asks the SET to remove it from the rehabilitation
category and return it to normal industrial category for three
quarters in 2007.  Abico reasoned that during that period the
company will accelerate the implementation of its financial
clarification and audit.

The company expects the implementation to be completed by Oct.
31, 2007.

                          *     *     *

Headquartered in Pathumthani, Thailand, Abico Holdings Public
Company Limited -- http://www.abicogroup.com/-- is into trading
palm oil, real estate development and raw milk producer and
distributor.

On April 12, 2004, Thailand's Central Bankruptcy Court issued an
order for the rehabilitation of the Company and appointed the
Company as the rehabilitation plan manager.  The Company's
rehabilitation plan was then approved by creditors and the
Central Bankruptcy Court.

As reported by the Troubled Company Reporter - Asia Pacific on
September 7, 2006, Abico Holdings Pcl posted a consolidated
THB9.485-million net profit for the quarter ended June 30, 2006.

However, the company's consolidated balance sheet as of June 30,
2006, showed strained liquidity with consolidated current assets
at THB67.897 million available to pay THB181.787 million in
current liabilities.


G STEEL: Benayon Files Resignation from Board
---------------------------------------------
Stephane Benayon on January 5, 2006, filed his resignation from
the board of directors of G Steel Plc.

G Steel informed the Stock Exchange of Thailand regarding the
resignation on Jan. 8.

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

                          *     *     *

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

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

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



                            *********

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

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

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


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Nolie Christy Alaba, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara
Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,
Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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                 *** End of Transmission ***