TCRAP_Public/070111.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

           Thursday, January 11, 2007, Vol. 10, No. 8

                            Headlines

A U S T R A L I A

AGRI-HORT IRRIGATION: Creditors' Proofs of Debt Due on Feb. 2
BASTILLE SECURITIES: Members Appoint Joint Liquidators
HASBRO: Debenture Holders May Convert Share Into Common Stock
KINGS BAY: To Hold Members' Final Meeting on February 9
MR. KEBABS: Court Issues Wind-Up Order

ONE STOP STEEL: To Declare First and Final Dividend on Feb. 23
OPSTF PTY: Members Decide to Wind Up Firm
PAUL SEGAERT (ACT): Members' Meeting Slated for February 9
PAUL SEGAERT R&D: Members to Receive Wind-Up Report on Feb. 9
PHILMET PTY: Liquidator to Present Wind-Up Report on Feb. 2

PROJECT TRADING: Creditors Opt to Shut Down Operations
PSIVIDA LIMITED: Signs Licensing Agreement with Faber Research
QUIKTRAK NETWORKS: To Declare First Dividend on February 16
SAMCOL INVESTMENTS: Members to Hear Wind-Up Report on Feb. 9
SM & KL ISKOWICZ: Placed Under Voluntary Wind-Up

SOVEREIGN PRUDENTIAL: ASIC Cancels Capital's Services License
SYORIN PTY: To Declare Dividend on February 9
TH OPTICAL: Members Agree to Close Business


C H I N A   &   H O N G  K O N G

3TOGO.COM: Court Orders Wind-Up
ASTONVILLE LTD: Members to Receive Wind-Up Report on Jan. 31
BENQ CORP: U.S.-German Investors May Bid for Bankrupt Mobile Arm
BONDSINASIA LTD: To Hold Members' Annual Meeting on Feb. 2
CENTRE ENTERPRISES: Shareholders Opt to Close Business

DANA CORP: Seeks Court Nod to Amend US$1.45BB DIP Debt Agreement
EASTERN MEDIA: Ratings Unaffected by Rebar's Bankruptcy Filing
GH WATER: Moody's Takes Ba3 Credit Rating after Payment of Debt
GITI TIRE: Moody's Hands (P)B2 Corporate Family Rating
GITI TIRE: S&P Assigns B+ Corporate Credit Rating

GLOBAL NET: Members' Final Meeting Fixed on February 6
GLOBAL POWER: Wants Removal Period Extended Until March 27
GLOBAL POWER: Wants to Reject Executory & Lease Contracts
GLOBAL POWER: Wants Until April 26 to Decide on Leases
GOLDEN BAUHINIA: Faces Wind-Up Proceedings

H.E.A. (INVESTMENTS): Creditors Must Prove Debts by Jan. 19
HANG CHE: Creditors' Proofs of Debt Due on January 15
INTELSAT LTD: Unit to Redeem Outstanding US$1B Floating Notes
INTERNATIONAL PAPER: Completes Sale of Kraft Papers Business
KONSGREAT LTD: Appoints Joint Liquidators

MABUCHI PRECISION: Shareholders Agree to Wind Up Operations
MEI EXCEL: Final Meeting Slated for January 31
PETROLEOS DE VENEZUELA: Moving London Office to Madrid
REBAR GROUP: Two Units File Insolvency Protection
REBAR GROUP: Prosecutors Start Probe into Likely Financial Scam

SAMPOERNA HK: Schedules Members' Final Meeting on February 6
SHINGS MANUFACTURING: Names Tam and Tse as Liquidators
SUNDAY ENTERPRISES: Members Pass Resolution to Wind Up Firm
TEH KON: Members Opt for Voluntary Wind-Up
WIDE CHEER: Creditors' Proofs of Claim Due on January 15

YEARSSOUND (HK): Falls Into Wind-Up


I N D I A

AES CORP: President Exercises Options for 299,600 Shares
AES CORP: Faces Setback on Venezuela's Planned Nationalization
BRITISH AIRWAYS: Agrees to Trade Unions' Pension Scheme Proposal
BRITISH AIRWAYS: Traffic Figures Slide in December 2006
GENERAL MOTORS: Plans to Double 2007 Sales in India

PUNJAB NATIONAL BANK: Ties Up with Nepal's Everest Bank
RELIANCE INDUSTRIES: Sees Joint Project in Iraq with ONGC
RELIANCE INDUSTRIES: To Buy Land for Contract-Farming Venture
STATE BANK OF INDIA: Revises Interest Rates on Domestic Deposits
* India Needs to Reform Market, Moody's-ICRA Says


I N D O N E S I A

ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site
ANIXTER INT'L: May Repurchase Up to 1 Million Common Shares
GNC CORP: Supports Passage of Adverse Event Reports Bill
GOODYEAR TIRE: Closes Global Tire Fabric Operations Sale
HILTON HOTELS: Launching Construction Works for Buffalo Thunder

HILTON HOTELS: To Launch Warsaw Hotel & Convention Center
INCO LTD: Completes Amalgamation with Itabira Canada
METSO OYJ: Completes Takeover of Aker Kvaerner's Pulping Unit
METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB
NORTEL NETWORKS: Completes Sale of UMTS Ops to Alcatel-Lucent

NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic
PERTAMINA: To Invest US$1.65 Billion in Projects for 2007
TELKOM INDONESIA: To Spin Off Fixed-Wireless Unit, Telkom Flexi


J A P A N

CONTINENTAL AIRLINES: Posts 79.5% December 2006 Load Factor
EDDIE BAUER: Reports that Antitrust Act Waiting Period Expired
EDDIE BAUER: Seeks Approval of Proposed Sale from Stockholders
GAP INC: Weak Sales Prompt Fitch's Ratings Downgrade
GAP INC: December Sales Down 4%; Comparable Store Sales Down 8%

GAP INC: Earns US$189 Million in Quarter Ended October 28
JAPAN AIRLINES: Considers Slashing 3,000 Jobs in 2-3 Years
JAPAN AIRLINES: Reveals New Year Vacation Period Traffic Results
XEROX CORP: Names John McDermott Chief Information Officer


K O R E A

ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition
ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mil.
ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops
HYNIX SEMICONDUCTOR: To Mass-Produce Improved Memory Chips
NACF: US$250-Mil. Senior Unsecured Notes Gets S&P's 'A-' Rating


M A L A Y S I A

EKRAN BERHAD: Appeals Bourse Rejection on Extension Request
EKRAN BERHAD: Plans to Sell 138 Wooden Houses for MYR13.8 Mil.
EKRAN BERHAD: Approves All Resolutions for AGM
ELBA HOLDINGS: Faces Possible Delisting of Securities
FOAMEX INT'L: Launches Rights Offering to Complete Reform

PROTON HOLDINGS: Malaysia Government Prefers Foreign Bidders
PROTON HOLDINGS: Former PM Says Car-Maker Needs New Management
PSC INDUSTRIES: Updates on Default Status
SETEGAP BERHAD: SC Gives Final Extension to Disposal of Assets


N E W   Z E A L A N D

DENNY'S CORP: Reports December Same-Store Sales


P H I L I P P I N E S

ATLAS CONSOLIDATED: Sets Special Stockholders Meeting for Feb. 9
CLIENTLOGIC CORP: Moody's Lifts Corporate Family Rating to B2
CLIENTLOGIC CORP: S&P Lifts Corporate Credit Rating to B+ from B
CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp.
DEVELOPMENT BANK: Grants PHP410-Mil. Loan to Batangas Hospital

DEVELOPMENT BANK: Says Maritime Dev't Program is Successful
EXPORT & INDUSTRY BANK: Says Performance Improved in 2006
HERTZ CORP: Parent Discloses Strategies to Boost Competitiveness
MAGNUM HOLDINGS: Chairman F.H. Suarez Jr. Steps Down from Post
PHIL. LONG DISTANCE: Gov't Keen on Closing Stake Sale in 1st Qtr

SAN MIGUEL CORP: Ferdinand K. Constantino Sells 61,816 Shares
* Fitch Assigns 'BB' Rating to RP's US$1 Billion Global Bond


S I N G A P O R E

GLENEAGLES MEDICAL: Liquidators to Receive Claims Until Feb. 5
PDC CORP: Shareholder Reduces Holdings of Direct Shares
PDC CORP: Subsidiary Awarded for Tender Bid of Land
PETROLEO BRASILEIRO: Inks Power Plant Pact with Copel
PETROLEO BRASILEIRO: Reports Oil & Gas Viability in 3 Basins

PETROLEO BRASILEIRO: Unit Commences Debt Exchange Offer on Notes
RESPONSIVE LEASING: Pays Dividend to Creditors
SEE HUP SENG: Appoints Yap Sew as Member of Nominating Committee
SEE HUP SENG: Discloses Shareholders' Change of Interests
STATS CHIPPAC: To Discuss 2006 4th Qtr. Results on Jan. 25

WEIAN INVESTMENTS: Creditors Must Prove Debts by Feb. 5


T H A I L A N D

COMPUTER SCIENCES: Unveils Federal Contracts in Third Quarter
DAIMLERCHRYSLER: Inks Agreement with Insurers Settling Dispute
DAIMLERCHRYSLER: U.S. Dec. Sales Decrease 1%; 2006 Sales Down 5%
FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest
FEDERAL-MOGUL: Court Sets Disclosure Statement Hearing on Feb. 2

KASIKORNBANK: Joins BAY to Grant THB2.6 Bil. Loan to Jungceylon
KRUNG THAI: Authorities Asks to Halt Payment for Fire Trucks
PHELPS DODGE: New Cerro Verde Starts Copper Concentrate Output
SIAM COMMERCIAL: Mulls 20% Increase on Credit-Card Rate

     - - - - - - - -

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

AGRI-HORT IRRIGATION: Creditors' Proofs of Debt Due on Feb. 2
-------------------------------------------------------------
Agri-Hort Irrigation Solutions Pty Ltd will declare the first
and final dividend to employees and unsecured creditors on
Feb. 9, 2007.

Accordingly, creditors are required to submit their proofs of
debt by Feb. 2, 2007, or they will be excluded from sharing in
the distribution the company will make.

The liquidator can be reached at:

         Bruce Gleeson
         c/o Jones Partners
         Chartered Accountants
         Australia
         Telephone:(02) 9251 5222

                   About Agri-Hort Irrigationc

Agri-Hort Irrigation Solutions Pty Ltd is engaged with plumbing,
heating, and air-conditioning services.

The company is located in New South Wales, Australia.


BASTILLE SECURITIES: Members Appoint Joint Liquidators
------------------------------------------------------
At a general meeting held on Dec. 19, 2006, the members of
Bastille Securities Pty Ltd appointed Anthony Warner and Steven
Kugel as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Anthony Warner
         Steven Kugel
         Registered Liquidators
         CRS Warner Sanderson
         Level 5, 30 Clarence Street
         Sydney, New South Wales 2000
         Australia

                    About Bastille Securities

Bastille Securities Pty Limited provides security services.

The company is located in New South Wales, Australia.


HASBRO: Debenture Holders May Convert Share Into Common Stock
-------------------------------------------------------------
Hasbro Inc. disclosed that, as a result of the company's common
stock closing above US$23.76 per share for at least twenty
trading days in the last thirty trading days of the fourth
quarter of 2006, holders of the company's 2.75% Convertible
Senior Debentures due 2021, may elect to convert their
Debentures into shares of Common Stock during the calendar
quarter beginning Jan. 1, 2007, and ending March 31, 2007.

Holders currently have the right to convert their Debentures
into Hasbro Common Stock at the rate of 46.2963 shares per each
US$1,000.00 of principal amount of Debentures.  The Debentures
can only be converted in increments of US$1,000.00.  Holders
will receive a cash payment in lieu of any fractional shares.  
This right will be in effect until March 31, 2007.  Should
Hasbro's Common Stock close at or above 110% of the then
accreted conversion price (110% of the accreted conversion price
is currently US$23.76 per share), on at least 20 of the last 30
trading days in the first calendar quarter of 2007, or in any
subsequent calendar quarters, the right of Holders to convert
their Debentures into shares of the company's Common Stock would
be in effect for the immediately following calendar quarter.

Holders will receive notice from The Bank of Nova Scotia Trust
company of New York informing them of the procedure to follow if
they wish to convert any of their Debentures.

Information can also be obtained by contacting:

          The Bank of Nova Scotia Trust Company of New York
          Attn: Corporate Trust Administration
          One Liberty Plaza
          New York, NY 10006
          Tel: (212) 225-5427

Although the company does not currently have the right to call
the Debentures for redemption, the company will have this right
if the closing price of the Common Stock exceeds 125% of the
then accreted conversion price (125% of the accreted conversion
price is currently US$27.00) for at least twenty trading days in
any thirty trading day period.  If the company calls the
Debentures it must mail notice to the holders at least thirty,
but not more than sixty, days in advance of the proposed
redemption date.  During the period from the giving of this
notice to the proposed redemption date the Holders will have the
right to convert their Debentures into shares of Common Stock
(at a current ratio of 46.2963 shares of stock per US$1,000.00
of principal amount).

The company will evaluate the potential cost and benefit of
calling the Debentures if this right arises, but has yet to make
a determination as to whether this would be to the benefit of
the company and its shareholders.  The contents of this press
release are qualified in their entirety by the terms of the
Debentures as they are sent forth in an Indenture and in the
form of Debenture.

Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. --
http://www.hasbro.com/-- provides children's and family leisure  
time entertainment products and services, including the design,
manufacture and marketing of games and toys ranging from
traditional to high-tech.  The company has operations in
Australia, France, Hong Kong, and Mexico, among others.

                          *     *     *

Moody's Investors Service affirmed the Baa3 long-term debt
rating of Hasbro, Inc. and changed the ratings outlook to
positive from stable to reflect the expectation for continued-
strong operating performance and cash flows, leading to further
debt reduction and credit metric improvement over the near-to-
intermediate-term.  Ratings affirmed include the Baa3 senior
unsecured debt rating and the (P)Ba1 rating for subordinated
debt.


KINGS BAY: To Hold Members' Final Meeting on February 9
-------------------------------------------------------
Kings Bay Developments Pty Ltd will hold a final meeting for its
members on Feb. 9, 2007, at 10:00 a.m., to consider the
liquidator's account of the company's wind-up proceedings.

As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of operations on Sept. 1, 2006.

The liquidator can be reached at:

         Barry Cook
         54 Beechwood Avenue
         Greystanes, New South Wales 2145
         Australia
         Telephone/Facsimile:(02) 9636 2845

                        About Kings Bay

Kings Bay Developments Pty Limited is an investor relation
company.

The company is located in New South Wales, Australia.


MR. KEBABS: Court Issues Wind-Up Order
--------------------------------------
On Dec. 15, 2006, the Federal Court of Australia entered an
order to wind up the operations of Mr. Kebabs (Aust.) Pty Ltd
and appointed Daniel Civil as official liquidator.

The Official Liquidator can be reached at:

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

                        About Mr. Kebabs

Mr. Kebabs (Australia) Pty Limited operates restaurants.

The company is located in New South Wales, Australia.


ONE STOP STEEL: To Declare First and Final Dividend on Feb. 23
--------------------------------------------------------------
One Stop Steel Pty Ltd, which is subject to a deed of company
arrangement, will declare the first and final dividend on
Feb. 23, 2007.

Creditors, who cannot prove their debts by Jan. 31, 2007, will
be excluded from sharing in the dividend distribution.

The joint deed administrator can be reached at:

         Ozem Kassem
         Cor Cordis
         Chartered Accountants
         Level 8, 50 Carrington Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 8221 8433
         Facsimile:(02) 8221 8422

                         About One Stop

One Stop Steel Pty Ltd operates Metals Service Centers and
offices.

The company is located in New South Wales, Australia.


OPSTF PTY: Members Decide to Wind Up Firm
-----------------------------------------
At a general meeting held on Dec. 18, 2006, the members of OPSTF
Pty Ltd decided to voluntarily wind up the company's operations
and appointed R. Shaw and J. Zeckendorf as liquidators.

The Liquidators can be reached at:

         R. Shaw
         J. Zeckendorf
         PO Box 194
         Neutral Bay, New South Wales 2090
         Australia

                         About Opstf Pty

Opstf Pty Ltd is involved in the freight and cargo
transportation.

The company is located in New South Wales, Australia.


PAUL SEGAERT (ACT): Members' Meeting Slated for February 9
----------------------------------------------------------
The meeting of the members of Paul Segaert (ACT) Aluminium
Products Pty Ltd will be held on Feb. 9, 2007, at 9:30 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 declared a first and final dividend on Nov. 1, 2006.

The joint and several liquidators can be reached at:

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

                       About Paul Segaert

Paul Segaert (ACT) Aluminium Products Pty Ltd is involved in the
manufacturing of durable goods.

The company is located in New South Wales, Australia.


PAUL SEGAERT R&D: Members to Receive Wind-Up Report on Feb. 9
-------------------------------------------------------------
The members of Paul Segaert R&D Pty Ltd will meet on Feb. 9,
2007, at 9:30 a.m., to receive a report of the company's wind-up
proceedings from Liquidator P. A. Billingham.

As reported by the Troubled Company Reporter - Asia Pacific, the
company declared a first and final dividend on Nov. 1, 2006.

The Liquidator can be reached at:

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

                       About Paul Segaert

Paul Segaert R&D Pty Ltd manufactures durable goods.

The company is located in New South Wales, Australia.


PHILMET PTY: Liquidator to Present Wind-Up Report on Feb. 2
-----------------------------------------------------------
Philmet Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on Feb. 2, 2007, at
11:00 a.m.

During the meeting, Liquidator Bruce Gleeson will present a
report regarding the company's wind-up proceedings and property
disposal exercises.

The Liquidator can be reached at:

         Bruce Gleeson
         c/o Jones Partners
         Insolvency and Business Recovery
         Level 13, 189 Kent Street
         Sydney, New South Wales
         Australia
         Telephone:(02) 9251 5222

                        About Philmet Pty

Philmet Pty Limited operates Auto and Home Supply Stores.

The company is located in New South Wales, Australia.


PROJECT TRADING: Creditors Opt to Shut Down Operations
------------------------------------------------------
The creditors of Project Trading and Services Pty Ltd met on
Dec. 15, 2006, and resolved to wind up the company's operations.

Brian Silvia was consequently appointed as liquidator.

The Liquidator can be reached at:

         Brian R. Silvia
         Ferrier Hodgson
         GPO Box 4114
         Sydney, New South Wales 2001
         Australia

                     About Project Trading

Project Trading and Services Pty Limited is a constructor of
single-family houses.

The company is located in New South Wales, Australia.


PSIVIDA LIMITED: Signs Licensing Agreement with Faber Research
----------------------------------------------------------------
pSivida Limited (ASX:PSD, NASDAQ:PSDV, Xetra:PSI) announces that
it has entered into a licensing agreement with U.S.-based Faber
Research LLC to develop pSivida's proprietary Durasert(TM),
Zanisert(TM), and Co-Drug(TM) drug delivery technologies for
infectious diseases and diseases of the ear.

The announcement follows an announcement on December 26, 2006,
that pSivida entered into an exclusive negotiation period with a
major global pharmaceutical company to acquire a worldwide,
royalty bearing license to make, use, and sell products using
pSivida's drug delivery technologies.  The pharmaceutical
company will make payments totaling US$990,000 (AU$1.3 million)
to pSivida for the right to exclusively negotiate a licensing
agreement with the company for a period of three months and to
fund the cost of a pre-clinical study.  The commencement of
licensing negotiations follows a 12-month evaluation of
pSivida's technologies by the large global pharmaceutical
company.

Under the terms of the Faber license, Faber receives exclusive
rights to pSivida's technologies for diseases of the ear and for
five specific infectious diseases, namely malaria, HIV/AIDS,
influenza, tuberculosis, and osteomyelitis.  All costs of
development will be born by Faber and its operating company
Auritec Pharmaceuticals Inc (Auritec) and pSivida will receive
royalties and milestones payments.

In addition, pSivida has granted Faber co-exclusive rights to
the Durasert(TM), Zanisert(TM), and Co-Drug(TM) drug delivery
technologies for other infectious diseases.  Under this
arrangement pSivida and Faber can elect to convert their co-
exclusive rights to exclusive rights for a specific infectious
disease indication(s).  We believe this maximizes the potential
to commercialize these technologies in the development of novel
anti-infective drugs, a market which reached US$44 billion in
2005.

pSivida's Durasert(TM) controlled release technology is already
validated in that it forms the basis of the company's ophthalmic
drug delivery products, Retiser(TM), which is FDA approved, and
Medidur(TM), which is currently in Phase III clinical trials.

Auritec has developed novel approaches to extended release drug
delivery with implications for indications including; HIV
microbicides, the treatment of malaria and the prevention of
pandemic influenza.  Auritec also has an active program for the
delivery of drugs to the inner ear.

Dr. Roger Brimblecombe, Chairman and CEO at pSivida said, "We
believe this represents a significant opportunity for our drug
delivery technologies to be exploited in another therapeutic
area - that of infectious diseases and it will be done at no
direct cost to us."

Thomas J. Smith, MD, Chairman and Chief Executive Officer at
Auritec said, "We look forward to the opportunities for
synergies between our companies in the treatment of infectious
diseases."

William H. Slattery, MD, Clinical Professor of Otolaryngology at
the University of Southern California, and Director of Otology
Research at Auritec said, "The ability to utilize pSivida's drug
delivery technologies will accelerate our otology program
significantly."

      About Faber Research LLC and Auritec Pharmaceuticals

Faber is the intellectual property holding company for Auritec,
a private company based in Pasadena, California specializing in
innovative, extended release drug delivery systems.  Auritec was
co-founded by Thomas J. Smith, MD, who was previously Chairman
and co-founder of Control Delivery Systems, Inc., the Boston,
MA. based drug delivery company pSivida acquired in January
2006.

                     About pSivida Limited

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

The company's corporate headquarter is located at:

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

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

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

                      Going Concern Doubt

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

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


QUIKTRAK NETWORKS: To Declare First Dividend on February 16
-----------------------------------------------------------
Quiktrak Networks Ltd, which is subject to a deed of company
arrangement, will declare a first dividend on Feb. 16, 2007.

Creditors are required to submit their proofs of debt on
Jan. 27, 2007, or they will be excluded from sharing in the
dividend.

                     About Quiktrak Networks

Quiktrak Networks -- http://www.quiktrak.com.au/-- is a  
telecommunications company that specializes in providing
solutions for location, tracking and monitoring of vehicles,
people, mobile and fixed assets.

The company is based in Sydney and New South Wales with
operations in Melbourne, Brisbane, and Gold Coast, Australia.


SAMCOL INVESTMENTS: Members to Hear Wind-Up Report on Feb. 9
------------------------------------------------------------
The members of Samcol Investments Pty Ltd will meet on
Feb. 9, 2007, at 10:00 a.m., to hear Liquidator Barry Cook's
report of the company's wind-up proceedings and property
disposal exercises.

According to the Troubled Company Reporter - Asia Pacific, the
members resolved to voluntarily wind up the company's operations
on Nov. 1, 2006.

The Liquidator can be reached at:

         Barry Cook
         54 Beechwood Avenue
         Greystanes, New South Wales 2145
         Australia
         Telephone/Facsimile:(02) 9636 2845

                    About Samcol Investments

Samcol Investments Pty Limited is engaged with Commercial Art
and Graphic Designs.

The company is located in New South Wales, Australia.


SM & KL ISKOWICZ: Placed Under Voluntary Wind-Up
------------------------------------------------
The members and creditors of SM & KL Iskowicz Developments Pty
Ltd met on Dec. 12, 2006, and resolved to voluntarily wind up
the company's operations.

Subsequently, Danny Vrkic was appointed as liquidator.

The Liquidator can be reached at:

         Danny Vrkic
         Jirsch Sutherland & Co
         PO Box 573
         Wollongong, New South Wales 2500
         Australia

                     About SM & KL Iskowicz

SM & KL Iskowicz Developments Pty Limited provides management-
consulting services.

The company is located in New South Wales, Australia.


SOVEREIGN PRUDENTIAL: ASIC Cancels Capital's Services License
-------------------------------------------------------------
The Australian Securities and Investments Commission has
cancelled the Australian financial services license of Sovereign
Capital Limited.

The ASIC cancelled Sovereign Capital's license after finding
that its activities have been well below the standard a
reasonable person would expect of a financial services licensee.

Sovereign Capital was licensed in January 2004 and has been the
responsible entity for the Sovereign Prudential Fund since 1999.

In particular, the ASIC was concerned about Sovereign Capital's
conduct in relation to disclosure, management of conflicts, due
diligence, and fairness between investors.

The ASIC also found, among other things, that Sovereign Capital
has not:

   (a) operated the Fund in an efficient, honest and fair
       manner;

   (b) acted in accordance with financial services laws; nor

   (c) complied with its obligations as a licensee.

Sovereign Capital has the right to lodge an application for a
review of ASIC's decision with the Administrative Appeals
Tribunal.

On December 18, 2006, the Troubled Company Reporter - Asia
Pacific reported that the ASIC has intervened in an application
brought by Sovereign Capital to wind up the Fund because the
ASIC was concerned that Sovereign Capital was not the
appropriate entity to wind up the Fund.

The application was that the Fund be wound up on just and
equitable grounds, because among other things, Sovereign
Capital's professional indemnity insurance was not being
renewed.  The requirement to hold professional indemnity
insurance forms part of Sovereign Capital's license conditions
as a Responsible Entity for the Fund, the TCR-AP said.

Instead of appointing an independent liquidator, the Supreme
Court of Queensland ordered that Sovereign Capital be permitted
to wind up the Fund under the supervision of William Fletcher,
of Bentleys MRI, who was appointed supervising accountant.

                       About Sovereign Prudential

The Sovereign Prudential Fund is involved in lending money to
property developers in New South Wales Victoria and Queensland.  
Based on the information provided to the Court, the Fund has
approximately AU$54 million invested on behalf of approximately
700 investors.


SYORIN PTY: To Declare Dividend on February 9
---------------------------------------------
Syorin Pty Ltd will declare the first and final dividend for
employees and unsecured creditors on Feb. 9, 2007.

Creditors are required to submit their proofs of claim by
Feb. 2, 2007, to be included in the benefit of the dividend.

The Troubled Company Reporter - Asia Pacific has reported that
the company went under voluntary liquidation on Nov. 30, 2006.

The liquidator can be reached at:

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

                        About Syorin Pty

Syorin Pty Limited provides computer related services.

The company is located in New South Wales, Australia.


TH OPTICAL: Members Agree to Close Business
-------------------------------------------
On Dec. 18, 2006, the members of TH Optical Pty Ltd met and
agreed to voluntarily wind up the company's operations.

In this regard, R. Shaw and J. Zeckendorf were appointed as
liquidators.

The Liquidators can be reached at:

         R. Shaw
         J. Zeckendorf
         PO Box 194
         Neutral Bay, New South Wales 2090
         Australia

                        About TH Optical

TH Optical Pty Ltd -- trading as Laubman & Park Optometrists --
operates offices and clinics of Optometrists.

The company is located in Queensland, Australia.


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

3TOGO.COM: Court Orders Wind-Up
-------------------------------
3Togo.com Ltd received a wind-up order from the High Court of
Hong Kong on Dec. 20, 2006.

According to the Troubled Company Reporter - Asia Pacific, New
World Telecommunications Ltd filed the wind-up petition against
the company on Oct. 19, 2006.


ASTONVILLE LTD: Members to Receive Wind-Up Report on Jan. 31
------------------------------------------------------------
The members of Astonville Ltd will meet on Jan. 31, 2007, at
2:00 p.m., to receive a report of the company's wind-up
proceedings from Liquidator Yuen Shu Tong.

The Liquidator can be reached at:

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


BENQ CORP: U.S.-German Investors May Bid for Bankrupt Mobile Arm
----------------------------------------------------------------
BenQ Mobile GmbH & Co OHG, the bankrupt German unit of Taiwan-
based BenQ Corp., has attracted potential investors, including
an unidentified U.S.-German consortium with IT and
telecommunications backgrounds, according to published reports.

"The German-American group is one of several groups interested
in BenQ," Regine Petzsch, a spokeswoman for insolvency
administrator Martin Prager, was quoted by the IDG News Service
as saying.  "There is a sense of urgency with the negotiations
because everyone realizes that the longer the plants remain
idle, the more difficult it will be to start them up again."

Ms. Petzsch declined to comment on the identity of the
interested parties.

John Blau of IDG News Service states that ministry officials in
Dusseldorf and Bavaria are looking for ways to rescue the
company's facilities in Kamp-Lintfort, Bocholt and Munich.

Ministry officials, investors, Siemens executives, BenQ Mobile
workers' council representatives, the investor group and Mr.
Prager discussed the consortium's offer Jan. 8 at a special
meeting at the Ministry of Economics in the state government of
North Rhine Westphalia in Dusseldorf, Mr. Blau reports.

According to German news magazine Spiegel, citing unnamed
sources, the investor group is seeking:

   -- up to EUR100 million in state-backed credit lines;

   -- compensation for employing 800 BenQ Mobile employees, who
      have since been transferred to a temporary organization
      funded by Siemens and the Federal Employment Agency; and

   -- rights to BenQ Corp.'s brand names.  

Spiegel reveals that Hansjorg Beha, a technology investor and
former IT director at then Daimler-Benz, is one of the members
of the U.S.-German syndicate.

                     Sentex Sensing Bid

Meanwhile, Henrik Rubinstein, Sentex Sensing Tech.'s chief
executive, told Die Welt that Sentex plans to bid for BenQ
Mobile, AFX News Limited relates.

Terms of the deal were not disclosed.

A Munich Court opened insolvency proceedings against BenQ Mobile
on Jan. 1 after Mr. Prager failed to meet a Dec. 31 deadline in
finding a buyer for the company.

CIO Magazine related that potential buyers were obliged to take
over the entire company and its work force prior to the Dec. 31,
2006 deadline.  However, as of Jan. 1, potential investors can
bid to acquire all or a part of the company, without the law
binding them to take over any former employees, CIO Magazine
said.

As reported in the TCR-Europe on Sept. 29, the board of
directors of BenQ Corp. decided to discontinue capital injection
into BenQ Mobile in order to stem unsustainable losses in the
latter's operations.  Subsequently it filed an insolvency
petition for the German mobile phone unit.

Bloomberg News reported that more than 3,000 manufacturing
workers have been affected in the company's insolvency
proceedings after it disclosed of plans to reduce two-thirds of
its work force.  The mobile unit took over a factory in Kamp
Lintfort in western Germany from Siemens, which cost Siemens
more than US$1 billion.  Under the agreement, BenQ will have the
right to use the Siemens brand for five years.  Siemens owns a
2.5 percent stake in BenQ Corp.

                          About Siemens

Siemens (Berlin and Munich) -- http://www.siemens.com/-- is a  
global powerhouse in electrical engineering and electronics.  

The company has around 461,000 employees working to develop and
manufacture products, design and install complex systems and
projects, and tailor a wide range of services for individual
requirements.  Siemens provides innovative technologies and
comprehensive know-how to benefit customers in 190 countries.

Founded more than 155 years ago, the company focuses on the
areas of Information and Communications, Automation and Control,
Power, Transportation, Medical, and Lighting.  In fiscal 2005
(ended September 30), Siemens had sales from continuing
operations of EUR75.4 billion and net income of EUR3.058
billion.

                          About BenQ

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

BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany.  BenQ Mobile filed for insolvency
in Germany on Sept. 29.  The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.  
BenQ Mobile has lost market share against giant competitors.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 5, 2006, Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.  The
outlook on the long-term rating is negative.  At the same time,
Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.

The ratings reflect BenQ's:

   * continuing operating losses from its handset operations;
   
   * high leverage; and

   * the competitive nature and low profitability of the LCD
     monitor industry.


BONDSINASIA LTD: To Hold Members' Annual Meeting on Feb. 2
----------------------------------------------------------
Bondsinasia Ltd will hold an annual meeting for its members on
Feb. 2, 2007, at 11:00 a.m., to consider the liquidator's
account of the company's wind-up proceedings during the
preceding year.

The Troubled Company Reporter - Asia Pacific has reported on
April 4, 2006, that the company's members received Liquidator
Edward S. Middleton's report on the company's wind-up and
property disposal exercises.

The liquidator can be reached at:

         Edward Middleton
         27/F, Alexandra House
         18 Chater Road, Central
         Hong Kong


CENTRE ENTERPRISES: Shareholders Opt to Close Business
------------------------------------------------------
On Dec. 22, 2006, the shareholders of Centre Enterprises Ltd
passed a special resolution to voluntarily wind up the company's
operations.

Subsequently, Huen Ho Yin was appointed as liquidator and was
authorized to divide the company's assets.

The Liquidator can be reached at:

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


DANA CORP: Seeks Court Nod to Amend US$1.45BB DIP Debt Agreement
----------------------------------------------------------------
In support of its ongoing reorganization and anticipated
emergence from Chapter 11 bankruptcy protection later this year,
Dana Corporation has filed a motion in the U.S. Bankruptcy Court
for the Southern District of New York, seeking to amend its
US$1.45 billion debtor-in-possession credit agreement.  The
motion is scheduled to be heard by the court on Jan. 24, 2007.

Among other things, Dana intends to reduce the amount of its
unused revolving credit facility under the DIP credit agreement
to correspond with changes in its borrowing base.  As it
continues to sell its non-core assets, these changes will adjust
the structure of Dana's debt facilities to more closely align
with the needs of the business.  In order to ensure that Dana
continues to have adequate liquidity notwithstanding such
reduction, Dana is seeking court approval for an increase in the
amount available under its term loan facility from US$700
million to US$900 million, as well as for certain financial
covenant modifications and technical changes to its DIP credit
agreement.  Citigroup Corporate and Investment Banking, the
administrative agent for the lenders under the DIP credit
agreement, has agreed to underwrite the proposed increase in the
term loan facility.

"While we are pleased with the restructuring progress that Dana
has achieved over the past nine months, especially under
challenging market conditions, the additional funding and
financing flexibility that will result from the proposed
amendment position us to complete our restructuring and emerge
from Chapter 11," said Dana Chairman and CEO Mike Burns.  "We
are also pleased with the confidence that our DIP agent,
Citigroup, has demonstrated in our reorganization efforts by
underwriting the proposed increase to our DIP facility."

                       About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs  
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies.  Dana employs 46,000
people in 28 countries.  Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.  Dana has facilities in China, Argentina and
Italy.

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.  (Dana Corporation Bankruptcy News, Issue No. 29;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


EASTERN MEDIA: Ratings Unaffected by Rebar's Bankruptcy Filing
--------------------------------------------------------------
Fitch Ratings said on January 9, 2007, that the ratings and
outlooks of Taiwan-based Eastern Media International Corporation
are not affected by the January 4, 2007, filings for corporate
reorganization by China Rebar Company, Ltd. and Chia Hsin Food &
Synthetic Fiber Co., Ltd., both members of the Rebar Group.  

EMI is rated Long-term Issuer Default 'BB' and National Long-
term 'BBB+(twn)', both with Stable Outlooks.

EMI inevitably suffers some impact on management reputation as a
result of the family relationship between Gary L. Wang, the
chairman of EMI, and the chairmen and presidents of both CRC and
CHFSF.  However, Fitch views that the credit profile of EMI
remains intact despite this event.

EMI has maintained a cash rich position since the end of 2005.  
As at January 5, 2007, excluding its subsidiaries, the company
had a cash balance of NT$3.2 billion, higher than its total debt
of NT$1.9 billion.  Eastern Broadcasting Co., Ltd., one of its
major subsidiaries, currently has debt of NT$5 billion.  In the
last twelve months ended June 2006, its consolidated revenues
and operating EBITDAR reached NT$20.7 billion and NT$4.4 billion
respectively.

EMI keeps its operations at arm's length from RBG. EMI doest not
provide debt guarantees or inter-company loans to any member of
RBG. Although EMI provides shipping and warehousing services to
CHFSF, EMI does not have accounts receivables from CHFSF
outstanding at the moment.

EMI has made assurances to Fitch both prior to and after this
event that the company has no intention of providing financial
support to RBG. Fitch views that this incident is unlikely to
lead to changes to the ownership of or strategy for EMI.  EMI is
likely remain under the control of its chairman, Mr. Wang,
senior management and Eastern Multimedia Group companies, as
altogether, these parties own a combined share of more than 20%
of EMI's shares.

EMI does not have any stake in CRC or CHFSF.  Any likely
negative impact as a result of its equity investments would be
limited to a TWD105m provision loss for 2007, resulting from the
recent liquidity crisis at Great Chinese Bills Finance
Corporation.  GCBFC was subsequently taken under custody by
other banks on January 7, 2007, as per the directive of Taiwan's
Financial Supervisory Commission.

Fitch will continue to monitor the situation for possible
contagion development within EMG and will take any necessary
rating actions.

Established in 1975, EMI and its subsidiaries have interests in
marine transport, warehousing, trading, media, estate
development, logistics, and entertainment businesses.


GH WATER: Moody's Takes Ba3 Credit Rating after Payment of Debt
---------------------------------------------------------------
Moody's Investor Service has on January 9, 2007, withdrawn its
Ba3 senior secured bank credit facility rating for GH Water
Supply (Holdings) Ltd following the full repayment of its
tranche B debt.

At the same time, Moody's has withdrawn the company's associated
Ba2 corporate family rating.

GH Water's primary asset is a 99% shareholding interest in
Guangdong Yue Gang Water Supply Company Limited, a Sino-foreign
co-operative joint venture which holds a 30-year sole and
exclusive right, granted by Guangdong Government and expiring in
2030, to supply and sell unprocessed natural water from
Guangdong Province to Hong Kong and a non-exclusive right to
supply and sell unprocessed natural water to Shenzhen and
Donggguan.


GITI TIRE: Moody's Hands (P)B2 Corporate Family Rating
------------------------------------------------------
Moody's Investors Service has assigned on January 9, 2007, a
provisional (P)B2 corporate family rating to GITI Tire Pte Ltd.  
At the same time, Moody's has assigned a provisional (P)B3
rating to its proposed 5-year USD200 million senior secured note
issuance.

The ratings outlook is stable.  This is the first time that
Moody's has assigned ratings to GITI.

Major part of the proceeds will be on lent to GT Asia Pacific
Holdings Pte Ltd (GT Asia) -- the ultimate holding company -- to
refinance its maturing debts.

The remainder will be earmarked for capital expenditure, general
corporate purposes and possible acquisition of additional tire
businesses, either inside or outside China.

"GITI's ratings reflect its strong competitive position in
China's growing market and its low-cost structure as compared
with its global peers," says lead analyst Angela Choi, adding,
"On the other hand, the rating is constrained by the company's
high level of leverage, weak liquidity profile and private
family ownership structure."

In accordance with Moody's global rating methodology for auto
suppliers, GITI's:

    * competitive position;
    * business diversification;
    * revenue growth profile; and
    * profitability

are consistent with a rating profile of Ba or better.

These strengths, however, are tempered by its;

    -- weak capital structure and credit metrics;
    -- negative free cash flow position;
    -- heavy reliance on short-term debt; and
    -- its moderate size on a global scale.

These characteristics are more in line with a single-B rating or
below.  Overall, the Moody's model scores GITI as a Ba3 credit.

Nonetheless, Moody's believes that a (P)B2 rating is appropriate
in light of GITI's private ownership by the Liem family, which
has full control over its board and top management.  Other than
GITI, the Liems have substantial interests throughout Asia and
some of their companies showed records of default during the
Asian financial crisis.

Moody's further notes that GITI's lack of a track record -- in
terms of disclosure, transparency and corporate governance -- is
another weakness when compared to other rated entities globally.  
Furthermore, Moody's is concerned about GITI's decision to on
lend major part of the proposed note proceeds to fund its
financially weak parent for debt refinancing, thereby slowing
improvements in GITI's already stretched balance sheet.

Given GITI's status as an immediate holding company and the fact
that about 75% of its debt will remain at the operating
subsidiary level post-bond issuance, the bond rating is rated
one-notch lower to reflect the risk of structural subordination.  
Subsidiary debt will account for approximately 40% of the total
consolidated assets over the next 2 years.

The rating would experience upward pressure if:

    1) a material improvement occurs in the group's liquidity
       position and/or debt maturity profile; and

    2) a sustained improvement in financial profile with
       adjusted total debt/EBITDAR falls below 4 x, and
       EBITDA/interest exceeds 3x-3.5x, while the company
       demonstrates prudence in its expansion plan and maintains
       its competitive position in China.

On the other hand, the rating would experience a downward trend
if:

   1) adjusted total debt/EBITDAR stays above 6x and/or
      EBITDA/interest drops below 1.5x-2x on a sustained basis;

   2) its cash holding policy changes, such that unrestricted
      cash falls below RMB750m; and

   3) any further evidence emerges of cash leakage/upstreaming
to
      group companies and shareholders.

GITI is the largest motor vehicle tire manufacturers in China.  
As a holding company, it is incorporated in Singapore and
headquartered in Shanghai.  All of its 6 production plants are
located in mainland China.  It is a private company ultimately
owned by the Liem family, which has a Singaporean-Indonesian
background.  GITI also has a minority interest in PT Gajah
Tunggal TBK, an Indonesian tire producer.


GITI TIRE: S&P Assigns B+ Corporate Credit Rating
-------------------------------------------------
On January 9, 2007, Standard & Poor's Ratings Services said that
it had assigned its 'B+' corporate credit rating to GITI Tire
Pte. Ltd.  The outlook is stable.  At the same time, Standard &
Poor's assigned its 'B-' issue rating, subject to review of
final documentation, to a proposed issue of up to US$200 million
in senior secured notes due 2012.

The issue rating is two notches below the corporate credit
rating as the senior secured notes are subordinated to
substantial bank debt held by the company's operating
subsidiaries in China.

The proceeds of the proposed issue will be used to extend a
US$160 million loan to its sole and immediate parent company, GT
Asia Pacific Holdings Pte. Ltd. (GT Asia), to pay off a US$160
million three-year amortizing credit facility due in 2009.  The
remainder of the proceeds will be used to fund GITI's future
investments and for working capital requirements.
     
According to Standard & Poor's credit analyst Xiaoming Song, the
rating on GITI reflects:

   * inherent industry risk;

   * weak cash flow protection and high leverage; and

   * concerns over aggressive investments and related party
     transactions.

These weaknesses, however, are partly offset by:

   * the company's leading market position;
   * strong distribution capabilities; and
   * low-cost position.

GITI is a Singapore/Indonesia-based company that has tire-making
operations in China.  The company operates in a highly
fragmented and competitive industry.  GITI is exposed to high
volatility in raw materials costs, but its ability to fully pass
through to consumers on a timely basis is constrained.
     
GITI's financial profile was materially weakened in 2006 as
rubber prices rocketed in the second half of the year.  In 2007,
following the proposed bond issue, the company's EBITDA interest
cover is expected to be 2.5x and its ratio of funds from
operations to total debt at about 20%.  Leverage ratios are
expected to remain high with a ratio of debt to EBITDA at 5.2x
and ratio of debt to capitalization at 73%. We are concerned
that the company may make dividend payments or engage in
transactions that materially affect its financial standing.  The
covenants of the proposed issue temper this risk.
     
Positively, GITI is expected to maintain its leading position in
the home market and to improve its position as a global player
as the company increases export sales.  GITI's leading position
will continue to benefit the company in terms of scale of
production, operating efficiency, and diversity in products and
markets.

GITI has a substantial cost advantage over its global peers in
overseas market sales.  GITI's total labor and personnel costs
account for about 12% of its total operating costs compared with
20%-30% for its global peers.


GLOBAL NET: Members' Final Meeting Fixed on February 6
------------------------------------------------------
A final general meeting of the members of Global Net Garment
Manufacturing Ltd will be held on Feb. 6, 2007, at 3:00 p.m., to
consider the liquidator's account of the company's wind-up
proceedings.

According to the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on April 24, 2006.

The liquidator can be reached at:

         Chan Wah Kei, Brian
         Room 1105, Eastern Commercial Centre
         393-407 Hennessy Road
         Hong Kong


GLOBAL POWER: Wants Removal Period Extended Until March 27
----------------------------------------------------------
Global Power Equipment Group and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware to extend,
until March 27, 2007, the period within which they can remove
civil actions.

The Debtors tell the Court that they are currently focusing on
responding to information requests submitted by the Official
Committee of Unsecured Creditors, preparing schedules of assets
and liabilities and statements of financial affairs and other
critical issues relating to its chapter 11 case.

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 to Reject Executory & Lease Contracts
---------------------------------------------------------
Global Power Equipment Group and its debtor-affiliates ask the
U.S Bankruptcy Court for the District of Delaware for permission
to reject executory contracts and unexpired leases of real
property.

The Debtors tell the Court that they experienced considerable
losses from its Heat Recovery Steam Generation business and
predict a future negative cash usage of approximately US$22
million for the completion of the business.

Additionally, the Debtors concluded that the cost to complete
the business will exceed any potential revenue and will generate
a negative cash flow of approximately US$400,000.

The Debtors also tell the Court that they will have no further
use of the property covered by the lease after Dec. 31, 2006.

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 Until April 26 to Decide on Leases
------------------------------------------------------
Global Power Equipment Group and its debtor-affiliates ask the
U.S Bankruptcy Court for the District of Delaware to further
extend, until April 26, 2007, the period within which it can
assume, assume or assign, or reject unexpired leases of
nonresidential real property.

The Debtors tells the Court that they have five unexpired
leases of nonresidential real property, including, the Debtors'
headquarters in Tulsa, Oklahoma; two of Williams Group
facilities in Stone Mountain, Georgia and Lakeland, Florida; and
Branden Group facilities in Tulsa, Oklahoma.

The Debtors assure the Court that any lessor will not be harmed
as a result of the requested extension, since they will continue
to comply with their postpetition obligations.

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.


GOLDEN BAUHINIA: Faces Wind-Up Proceedings
------------------------------------------
The High Court of Hong Kong will hear a wind-up petition filed
against Golden Bauhinia Travel Ltd on Feb. 14, 2007, at
9:30 a.m.

Chen Aijuan filed the petition with the Court on Dec. 8, 2006.

Chen Aijuan's solicitor can be reached at:

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


H.E.A. (INVESTMENTS): Creditors Must Prove Debts by Jan. 19
-----------------------------------------------------------
H.E.A. (Investments) Ltd will declare a dividend.

In this regard, creditors are required to prove their debts by
Jan. 19, 2007, or they will be excluded from sharing in the
dividend.

The Troubled Company Reporter - Asia Pacific has reported that
on Dec. 22, 2006, the shareholders of H.E.A. (Investments)
passed a special resolution to voluntarily wind up the company's
operations.

The Joint and Several Liquidators can be reached at:

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


HANG CHE: Creditors' Proofs of Debt Due on January 15
-----------------------------------------------------
The creditors of Hang Che Lee Company Ltd are required to submit
their proofs of debt to Liquidators Chan Shet Hung Suzanne and
Li Chi Chung by Jan. 15, 2007, to share in any distribution the
company will make.

As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of operations on Dec. 19, 2006.

The Liquidators can be reached at:

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


INTELSAT LTD: Unit to Redeem Outstanding US$1B Floating Notes
-------------------------------------------------------------
Intelsat, Ltd., disclosed that Intelsat Subsidiary Holding
Company, Ltd. intends to redeem all of its outstanding US$1.0
billion Floating Rate Senior Notes due 2012.  

Intelsat Subsidiary Holding Company, Ltd. has issued a notice of
redemption pursuant to the indenture for the Notes stating that
it intends to redeem all of the Notes on Feb. 2, 2007, at a
redemption price equal to 101% of the principal amount of the
Notes plus accrued and unpaid interest thereon to the Redemption
Date.  The redemption of the Notes is conditioned upon Intelsat
Subsidiary Holding Company, Ltd. receiving sufficient funds on
the Redemption Date from a term loan borrowing by its parent
Intelsat (Bermuda), Ltd.  The term loan borrowing is expected to
be made pursuant to a new unsecured credit agreement that
Intelsat (Bermuda), Ltd. intends to enter into to fund the
Redemption Payment, which borrowing will be guaranteed by
Intelsat Subsidiary Holding Company, Ltd. and the same
subsidiaries of Intelsat Subsidiary Holding Company, Ltd. that
guarantee the Notes.

Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony,   
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.

In Asia, Intelsat has sales offices in Australia, China, Japan,
and Singapore.

                           *     *     *

Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat. The
ratings were also removed from Rating Watch Negative, where they
had originally been placed on Aug. 30, 2005.  Fitch said the
Rating Outlook is Stable.

Moody's Investors Service affirmed the B2 corporate family
rating of Intelsat, Ltd., and downgraded the corporate family
rating of PanAmSat Corporation to B2, given the greater clarity
regarding the final capital structure and the near-term
completion of the PanAmSat acquisition by Intelsat.


INTERNATIONAL PAPER: Completes Sale of Kraft Papers Business
------------------------------------------------------------
International Paper closed on the sale of its kraft papers
business to Stone Arcade Acquisition Corp. for approximately
US$155 million and two payments totaling up to US$60 million,
payable five years from the close of the transaction, contingent
upon business performance.  The kraft papers business includes
the Roanoke Rapids, N.C., mill and the Fordyce, Ark., Ride Rite
dunnage bag plant.

The kraft papers business, which will now be known as KapStone
Paper and Packaging Corporation, produces approximately 400,000
tons of kraft papers, used in a variety of end-use products
including approximately 9 million Ride Rite dunnage bags.  The
business employs approximately 700 people.

                      About Stone Arcade

Founded in 2005, Stone Arcade Acquisition Corporation is a
publicly traded specific purpose acquisition corporation.  Stone
was formed for the purpose of identifying and effecting an asset
acquisition or business combination with an unidentified
business in the paper, packaging, forest products and related
industries.

Based in Stamford, Connecticut, International Paper Company
(NYSE: IP) -- http://www.internationalpaper.com/-- is in the  
forest  products industry for more than 100 years.  The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia,
specifically Japan and China.  These businesses are complemented
by an extensive North American merchant distribution system.  
International Paper is committed to environmental, economic and
social sustainability, and has a long-standing policy of using
no wood from endangered forests.

                           *     *     *

Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper
Company on Dec. 5, 2005.


KONSGREAT LTD: Appoints Joint Liquidators
-----------------------------------------
Jacky Chung Wing Muk and Edward Simon Middleton were appointed
as joint and several liquidators of Konsgreat Ltd by a special
resolution passed on Dec. 27, 2006.

The Joint and Several Liquidators can be reached at:

         Jacky Chung Wing Muk
         Edward Simon Middleton
         KPMG
         8/F, Prince's Building
         10 Chater Road, Central
         Hong Kong


MABUCHI PRECISION: Shareholders Agree to Wind Up Operations
-----------------------------------------------------------
On Dec. 29, 2006, the shareholders of Mabuchi Precision
Industries Hong Kong Ltd passed a special resolution to
voluntarily wind up the company's operations.

In this regard, Darach E. Haughey and Lai Kar Yan Derek were
appointed as the company's joint and several liquidators and
were authorized to divide the company's assets.

The Joint and Several Liquidators can be reached at:

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

                    About Mabuchi Precision

Mabuchi Precision Industries Hong Kong Ltd. --
http://www.mabuchi-motor.co.jp-- is a manufacturer of precision  
parts for small electric motors and generators.

The company is located in Kowloon, Hong Kong.


MEI EXCEL: Final Meeting Slated for January 31
----------------------------------------------
The final meeting of the members and creditors of MEI Excel Ltd
-- trading as St. Savio Kindergarten -- will be held on Jan. 31,
2007, at 2:30 p.m. and 3:00 p.m., respectively, to consider the
liquidator's account of the company's wind-up proceedings.

According to the Troubled Company Reporter - Asia Pacific, the
company's creditors met on Sept. 9, 2005, to consider
liquidation matters.

The liquidator can be reached at:

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


PETROLEOS DE VENEZUELA: Moving London Office to Madrid
------------------------------------------------------
Sources told Expansion that Petroleos de Venezuela SA, the
state-run oil firm of Venezuela, will move its European office
to Madrid from London, due to its good relationship with Spanish
company Repsol YPF SA.

Expansion notes that Petroleos de Venezuela will supervise the
market development in Europe, Middle East and Asia from its
Spanish office.

According to Expansion, Petroleos de Venezuela won't be
marketing hydrocarbons from its Madrid headquarters.  

However, some analysts told Expansion that Petroleos de
Venezuela's move will imply an increase in crude oil sales to
Spain.

Petroleos de Venezuela exports 7% of its output to Europe, and
supplies 5% of Spain's oil consumption, Dow Jones Newswires
states.

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

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


REBAR GROUP: Two Units File Insolvency Protection
-------------------------------------------------
On January 4, 2007, China Rebar Co. and Chia Hsin Food and
Synthetic Fiber Co. Ltd., both part of Taiwan's premier business
conglomerate the Rebar Group, filed insolvency protection after
incurring huge losses over the past years, the China Post
reports.

Accordingly the Taiwan Stock Exchange immediately announced that
both China Rebar and Chia Hsin shares will be subject to same-
day settlement effective January 8.  Both companies may get de-
listed from the Taiwan Stock Exchange depending on the court's
ruling, the Post notes.

The paper relates that China Rebar and Chia Hsin registered
losses of NT$13.8 billion and NT$11.4 billion, respectively,
over the past seven years.  Both have borrowed heavily from
dozens of banks, of about NT$28 billion in total.

In addition, both companies pay monthly interest of about NT$50
million and NT$40 million, respectively, shouldering great
financial burdens as they tried to keep their operations
running.

Founded in 1959, China Rebar runs department stores and textile
and construction businesses in Taiwan.  According to the Post,
China Rebar's most famous department store, Idee, remains
profitable, with 2006 turnover registered at NT$9.65 billion.

"We do not have plans to sell Idee as it still makes money," the
paper cites Wang Ling-mei, president of China Rebar, as saying.

Accroding to Chia Hsin president Wang Ling-yi, it had to file
insolvency protection after its lenders turned down a request to
extend a NT$14 billion syndicate loan, which is due this
September.  The syndicate loan is provided by several banks, the
largest of which is Mega Financial Holding Corp, the Post
relates.

The paper recounts that losses stemmed from Chia Hsin's founding
of a NT$12 billion fiber plant in 1994, to which China Rebar
provided significant funding.

Companies under the group range from Eastern Television to the
Chinese Bank to Asia Pacific Broadband Wireless, a telecom
operator, headed by Mr. Wang's various children, the Post says.

                          *     *     *

Headquartered in Taiwan, China Rebar Company Limited's principal
activities are clothes merchandising.  The Group's other
activities are manufacturing, buying and selling metal products,
cement making, and knitted products.  Its metal products are
aluminum doors and windows.

The Group also has leasing and selling commercial buildings,
residential buildings and houses, and operating hotels and
restaurants.


REBAR GROUP: Prosecutors Start Probe into Likely Financial Scam
---------------------------------------------------------------
The Taipei District Prosecutors' Office tasked five prosecutors
to lead a large team of investigators to probe into possible
financial scam within the companies of the Rebar Group, the
China Post says.

The team is comprised of staff from the Cabinet-level Financial
Supervisory Commission and the Investigation Bureau under the
Ministry of Justice to handle the probe.

Chief Prosecutor Chuang Cheng was appointed to lead the
investigators to look into an alleged breach of trust, diversion
of funds, and insider trading involving corporate stocks, the
Post relates.

On January 9, 2007, the team started examining accounts of China
Rebar and Chia Hsin Food & Synthetic Fibre.  The two companies
filed for insolvency protection under the Rebar Group on
December 29, 2006, the Post recounts.

The paper says prosecutors are also expected:

   (a) to look into the massive sale of the shares of the two
       listed companies before the formal filing for
       restructuring; and

   (b) to examine the financial operations of The Chinese Bank
       and other financial firms in the group to determine if
       there was excess lending to affiliated firms.

The paper also reveals that the investigators are looking for
Rebar Group founder Wang You-theng, who already left for Hong
Kong with his wife on December 30.

Investigators have already prevented 19 people, including 12
board members of The Chinese Bank and seven of Wang's children
from leaving Taiwan, the Post notes.

Meanwhile, the massive withdrawals of deposits by customers from
The Chinese Bank have forced the government to take over the
bank and induced successive drops in share prices on the Taiwan
stock market.

Lawmakers from both the ruling and opposition parties demanded
that Finance Minister Ho Chih-chin to resign for what they
described as dereliction of duty over the bank run.

Mr. Ho offered his assurance that customers' deposits at the
bank, no matter whatever the amount, will be fully protected by
the government, the Post says.

In total, the CDIC and the Financial Reconstruction Fund have
managed to acquire NT$30 billion in cash from the Central Bank
and other banks to deal with the crisis.  The CDIC took over the
Chinese Bank following a bank run on January 5, 2007, the Post
recounts.

On January 11, 2007, the Troubled Company Reporter - Asia
Pacific cited a report from the China Post stating companies
under the group range from Eastern Television to the Chinese
Bank to Asia Pacific Broadband Wireless, a telecom operator,
headed by Mr. Wang's various children.

                          *     *     *

Headquartered in Taiwan, China Rebar Company Limited's principal
activities are clothes merchandising.  The Group's other
activities are manufacturing, buying and selling metal products,
cement making, and knitted products.  Its metal products are
aluminum doors and windows.

The Group also has leasing and selling commercial buildings,
residential buildings and houses, and operating hotels and
restaurants.


SAMPOERNA HK: Schedules Members' Final Meeting on February 6
------------------------------------------------------------
Sampoerna Hong Kong Co. Ltd will hold a final general meeting
for its members on Feb. 6, 2007, at 11:00 a.m., to consider the
liquidator's account of the company's wind-up proceedings.

The liquidator can be reached at:

         Cheung Po Kwan
         20/F, Euro Trade Centre
         21-23 Des Voeux Road Central
         Hong Kong


SHINGS MANUFACTURING: Names Tam and Tse as Liquidators
------------------------------------------------------
On Dec. 28, 2006, the members of Shings Manufacturing Company
Ltd passed a special resolution to appoint Tam Chun Wan and Tse
Chiang Kwok Nassar as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Tam Chun Wan
         Tse Chiang Kwok, Nassar
         Room 403, 4/F, Wing On House
         71 Des Voeux Road Central
         Hong Kong

SUNDAY ENTERPRISES: Members Pass Resolution to Wind Up Firm
-----------------------------------------------------------
On Dec. 27, 2006, the members of Sunday Enterprises Ltd passed a
special resolution to voluntarily wind up the company's
operations and appointed Jacky Chung Wing Muk and Edward Simon
Middleton as joint and several liquidators.

Accordingly, the Liquidators were authorized to distribute the
company's assets.

The Joint and Several Liquidators can be reached at:

         Jacky Chung Wing Muk
         Edward Simon Middleton
         8/F, Prince's Building
         10 Chater Road, Central
         Hong Kong


TEH KON: Members Opt for Voluntary Wind-Up
------------------------------------------
At an extraordinary general meeting held on Dec. 27, 2006, the
members of Teh Kon (Hong Kong) Ltd passed a special resolution
to voluntarily wind up the company's operations and appointed
Chan Wing Kee Andrew as liquidator.

The Liquidator can be reached at:

         Chan Wing Kee Andrew
         Flat B, 13/F
         Hop Ying Comm. Bldg
         755 Nathan Rd, Kowloon
         Hong Kong


WIDE CHEER: Creditors' Proofs of Claim Due on January 15
--------------------------------------------------------
Liquidators Chan Shet Hung, Suzanne and Li Chi Chung require the
creditors of Wide Cheer Investment Ltd to submit their proofs of
claim by Jan. 15, 2007.

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

The Liquidators can be reached at:

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


YEARSSOUND (HK): Falls Into Wind-Up
-----------------------------------
The High Court of Hong Kong issued an order to wind up the
operations of Yearssound (Hong Kong) Ltd on Dec. 20, 2006.

As reported by the Troubled Company Reporter - Asia Pacific,
Standard Chartered Bank (Hong Kong) Ltd filed the petition with
the Court on Oct. 19, 2006.


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

AES CORP: President Exercises Options for 299,600 Shares
--------------------------------------------------------
AES Corp. said in a fling with the United States Securities and
Exchange Commission that Paul T. Hanrahan, the firm's president
and chief executive, has exercised options for 299,600 shares of
common stock under a prearranged trading plan.

Mr. Hanrahan said in the filing that he exercised the shares on
for US$2.20 to US$19.50 apiece and then sold them for US$22.03
to US$22.31 apiece.

The Associated Press relates that the stock sale was conducted
under a prearranged 10b5-1 trading plan that lets an AES Corp.
insider to set up a program in advance for such transactions and
proceed with them even if he or she comes into possession of
material nonpublic information.

Insiders file Form 4s with the SEC to report transactions in
their firm's shares.  Open market purchases and sales must be
reported within two business days of the transaction, AP states.

                         About AES Corp.

AES Corporation -- http://www.aes.com/-- is a global power  
company.  The company operates in South America, Europe, Africa,
Asia and the Caribbean countries.  Generating 44,000 megawatts
of electricity through 124 power facilities, the company
delivers electricity through 15 distribution companies.

The company has presence in India, China and Sri Lanka.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology.  Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.


AES CORP: Faces Setback on Venezuela's Planned Nationalization
--------------------------------------------------------------
Dow Jones Newswires reports that AES Corp. faced a setback in
its Venezuelan operations when the nation's President Hugo
Chavez disclosed plans to nationalize the electricity sector.

President Chavez said in his televised speech, "All those
strategic sectors like electricity -- all those things that were
privatized, nationalize them."

The Associated Press relates that President Chavez didn't
specify whether he meant complete nationalization, but said any
vestiges of private control over the energy sector should be
undone.

The nationalization appeared likely to affect Electricidad de
Caracas -- owned by AES Corp. -- and CA Nacional Telefonos de
Venezuela, aka CANTV, AP notes.

Dow Jones underscores that AES Corp. owns 86% of C.A. La
Electricidad de Caracas, the largest electricity utility in
Venezuela with over a million customers in Venezuela, mainly in
Caracas.

According to Dow Jones, AES Corp. paid US$1.6 billion in June
2000 to purchase 82% of the shares in Electricidad de Caracas.  
The Venezuelan Supreme Court was probing the acquisition of
Electricidad de Caracas.  The court had said that it would
review a lawsuit filed in 2000 alleging that AES Corp.'s
acquisition of the Venezuelan electricity utility was invalid,
as it lacked the approval of the National Assembly.

Meanwhile, AES Corp. said in its third quarter report that it
believes that it fulfilled all existing laws with respect to the
acquisition of Electricidad de Caracas and that there are
meritorious defenses to the allegations in the lawsuit.

Dow Jones underscores that AES Corp.'s third quarter results
didn't provide details of the finances for its Venezuelan
operations.

Dow Jones says that when AES Corp.'s first tender offer for
Electricidad de Caracas was first disclosed in April 2000,
President Chavez said it was a clear sign of investors' trust in
Venezuela.

"They (AES Corp.) didn't think twice about investing in
Venezuela.  The president of this company told me a lot of
foreign investors are interested in Venezuela," Dow Jones
states, citing President Chavez.

Dennis Bakke was the head of AES Corp. at the time of the sale,
Dow Jones states.

                         About AES Corp.

AES Corporation -- http://www.aes.com/-- is a global power  
company.  The company operates in South America, Europe, Africa,
Asia and the Caribbean countries.  Generating 44,000 megawatts
of electricity through 124 power facilities, the company
delivers electricity through 15 distribution companies.

The company has presence in India, China and Sri Lanka.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology.  Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.


BRITISH AIRWAYS: Agrees to Trade Unions' Pension Scheme Proposal
----------------------------------------------------------------
British Airways welcomed the decision by its trade unions in the
BA Forum to recommend changes to its New Airways Pension Scheme
(NAPS), which has a GBP2.1 billion deficit.

The British Airways Forum represents the airline's four unions
and is recommending acceptance of the proposal and will now
consult with members formally.

The company has agreed to make a one off contribution of
GBP800 million into the fund subject to acceptance of benefit
changes.  Together with a one-off employee saving of
GBP400 million and changes to future benefits, the NAPS pension
deficit will be reduced by more than half from an existing
GBP2.1 billion to GBP0.9 billion and the company's annual
contributions will be around GBP280 million a year for the next
ten years.

British Airways' chief executive, Willie Walsh, said: "This is
great news.  Together with the NAPS Trustees and staff, we have
found a shared solution that helps secure the pensions of our
33,500 NAPS members and removes a major blocker to future
investment in British Airways.  This brings the NAPS deficit and
ongoing contributions to a level which is affordable by British
Airways and effectively tackles one of the most fundamental
issues we face."

A funding plan to clear the NAPS deficit over 10 years was
agreed with the pension scheme trustees in 2006, subject to
members accepting changes to future benefits.

Under the proposals there will be a normal retirement age of 65
with a contribution rate of 5.25 percent and the ability for
employees to pay a higher pension contribution rate of 8.5
percent to retire at 60.  Staff can still choose to retire
earlier than the normal retirement age but with a reduced
pension.

There will also be a normal retirement age of 55 with a
contribution rate of 9 percent on top of the cost of retiring at
60.  This option is available to all staff.

Future pensionable pay rises will be capped to inflation and
pension growth in retirement remains at five percent.

The company will make a one-off contribution of GBP800 million
and up to GBP150 million more in contributions over the next
three years subject to financial targets.

Together with the one-off employee saving of GBP400 million and
changes to future benefits, the GBP2.1 billion deficit will be
more than halved to GBP0.9 billion.

The airline's annual contributions for the next ten years of
GBP280 million, up from GBP272 million in November last year,
will clear the remaining deficit.  The GBP8-million increase
represents the cost of improved contributions and keeping LPI at
five percent.

The NAPS trustees approved the funding plan to clear the deficit
last year.

                      About British Airways

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and   
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited.  BA has offices in India and Guatemala.

                          *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


BRITISH AIRWAYS: Traffic Figures Slide in December 2006
-------------------------------------------------------
British Airways disclosed its traffic and capacity statistics
for December 2006.

In December 2006, passenger capacity, measured in Available Seat
Kilometers, was 0.1% below December 2005.  Traffic, measured in
Revenue-Passenger-Kilometers, was lower by 0.5%.  This resulted
in a passenger load factor down 0.3 points versus last year, to
73.9%.  The decrease in traffic comprised a 2.8% increase in
premium traffic and a 1% decrease in non-premium traffic.
Cargo, measured in Cargo-Ton-Kilometers, decreased by 11.6%.
Severe fog conditions in the run up to Christmas led to the
cancellation of more than 800 flights, affecting European and
domestic services. Overall load factor fell by 0.6 points to
70.5%.

For the September to December quarter, ASKs rose by 0.5%, with
RPKs flat.  This resulted in passenger load factor down 0.4
points, to 73.7%.  This comprised a 2.8% increase in premium
traffic and a 0.6% increase in non-premium traffic.  CTKs fell
by 9%.

Underlying market conditions are broadly unchanged.

                     Strategic Developments

The airline launched a new five times a week service From
Heathrow to Calgary and a new five times a week service from
Gatwick to Salzburg.

The T&G's cabin crew branch is balloting its members on
industrial action.  The company has been in talks for some time
with the T&G and Amicus on changes to work practices that would
contribute toward the airline's drive to achieve a
GBP450-million reduction in costs by March 2008.  Talks
continue.

In response to the Government's announcement of a 100% increase
in Air Passenger Duty, the airline called for tax reform and
said at least GBP87 million should be ring-fenced for spending
on emissions-reducing renewable energy projects in the
developing world, thereby offsetting all the airline's
emissions.

The New Year flight sale featured discounts on 4.5 million seats
to 140 destinations worldwide.

Avis and Vanguard have been selected as the airline's worldwide
car rental partners.

                      About British Airways

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and   
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited.  BA has offices in India and Guatemala.

                          *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


GENERAL MOTORS: Plans to Double 2007 Sales in India
---------------------------------------------------
General Motors Corp. aims to double its sales in India in 2007,
the Press Trust of India reports, citing GM India Vice President
Ankush Arora.

General Motors sold 36,000 units in India in 2006, Mr. Arora
relates.  The company is targeting 72,000 this year.

To arrive at their goal, the company plans to enter into
untapped segments and ride on new car launches.

The PTI report notes of GM India's evident expansion in the
country, including:

   -- the increase in capacity of the company's Halol facility
      near Baroda from 60,000 to 85,000 units;

   -- the expansion of the company's network of dealerships and
      workshops; and

   -- the opening of a new production facility at Talegaon near
      Pune, where it will have an initial production capacity of
      140,000 units.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the  
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 327,000
people around the world.  It has manufacturing operations in
33 countries and its vehicles are sold in 200 countries.  GM
sells cars and trucks under these brands: Buick, Cadillac,
Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab,
Saturn and Vauxhall.

The company also has operations in India.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services 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 March 29, 2006.  S&P said the outlook is
negative.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 billion secured term loan of General Motors
Corp.  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 General Motors and Saturn
Corp.


PUNJAB NATIONAL BANK: Ties Up with Nepal's Everest Bank
-------------------------------------------------------
Punjab National Bank ties up with the Everest Bank of Nepal to
share automated teller machines, the Press Trust of India
reports.

"PNB and Everest Bank have joined hands to provide cheaper cash
withdrawal services by sharing their ATMs," PTI quotes Punjab
National Bank Chairman S. C. Gupta as saying.

The arrangement, which is reportedly the first cross-border
arrangement by any Indian bank, would enable PNB customers to
use ATMs of 13 banks in Nepal.

According to the report, PNB would under the tie-up charge only
INR50 for cash withdrawals by their customers in Nepal compared
to the usual INR150 that customers shell out per cash withdrawal
from ATMs outside India under International Switching network of
MasterCard.

PNB holds 20% of Everest Banks' equity.

Everest Bank, a small private bank, has about 20 branches and
five ATMs in Nepal and a representative office in New Delhi, PTI
notes.

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

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


RELIANCE INDUSTRIES: Sees Joint Project in Iraq with ONGC
---------------------------------------------------------
Reliance Industries Ltd and government-run rival Oil and Natural
Gas Corp are in talks to jointly develop Tuba oil field in
southern Iraq, Reuters says, citing top ONGC officials as
source.

Reuters relates that ONGC, Reliance and Algeria's Sonatrach
attempted to secure the field in Iraq in 2000 for production of
crude oil.

An unnamed senior company officer told Reuters that ONGC had
initiated discussions with Reliance and Sonatrach to revive the
consortium and pursue the opportunity jointly.

According to the unnamed source, the talks are still at a
preliminary stage.  ONGC and Reliance are expected to hold a 30%
stake each in the project-specific consortium and Sonatrach
would hold the remaining 40%, Reuters' source added.

ONGC's chairman and managing director, R. S. Sharma, confirmed
the discussions.

Because of its shattered economy, Iraq is expected to pass laws
allowing the regions to negotiate oilfield contracts with
foreign investors, Reuters says.

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

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

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


RELIANCE INDUSTRIES: To Buy Land for Contract-Farming Venture
-------------------------------------------------------------
Reliance Industries Ltd is planning to acquire over 2,000 acres
for its contract-farming venture in Karnataka, The Economic
Times reports, citing unnamed sources.

According to The Times' sources, the area could turn out as one
of RIL's center for farm produce exports.

The company is also reportedly considering entry into contract
farming operations in Haryana and Maharashtra, which could mean
acquiring 10 acres in all the 175 talukas in Karnataka and a
similar holding in each of the 27 districts, the report notes.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 6, 2006, RIL announced its venture into Fruit and Vegetable
chain as part of its planned retail network.

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

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

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


STATE BANK OF INDIA: Revises Interest Rates on Domestic Deposits
----------------------------------------------------------------
The State Bank of India informed the Bombay Stock Exchange that
it revised its interest rates on domestic term deposits.

According to SBI, a special interest rate of 8.25% p.a. will be
offered on domestic term deposits of INR15 lakhs and above but
less than INR1 crore for all maturities of one year and above.  
The revised rate is effective starting Jan. 8, 2007, and will
expire on March 31, 2007.

The bank makes it clear that all other interest rates remain the
same.

As reported in the Troubled Company Reporter - Asia Pacific on
SBI recently revised its Benchmark Prime Lending Rate by 50 bps
from 11.00% p.a. to 11.50% p.a.

State Bank of India is headquartered in Mumbai, and at the end
of March 2006 had total assets of INR4,939 billion
(US$111 billion).

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 7, 2006, Standard & Poor's Ratings Services assigned its
'BB+' issue rating to the proposed issue of US$300 million
senior unsecured, five-year, floating-rate foreign currency
notes to be issued by State Bank of India through its London
branch.

On April 21, 2006, the TCR-AP reported that Fitch Ratings has
affirmed State Bank of India's Long-term Issuer Default rating
at BB+, Short-term rating at "B", Individual rating at "C" and
Support rating at '3'.  The outlook on the ratings is stable.

Additionally, Standard and Poor's Rating Service gave State Bank
of India a BB+ long-term foreign issuer credit rating on
February 2, 2005.

Moody's Investors Service placed a Ba2/Not Prime rating on State
Bank of India's foreign currency bank deposits, a Ba2/Not Prime
rating on its domestic currency bank deposits, and a D Bank
Financial Strength Rating in June 2006.


* India Needs to Reform Market, Moody's-ICRA Says
-------------------------------------------------
In a joint research paper, Moody's Investors Service and ICRA
Ltd say that further reform of India's financial markets is
needed if the country is to expand the sources and availability
of credit to meet rising demand from the private sector.

"India's accelerating economic development is spurring demand
for credit, while Indian companies are expanding domestically
and abroad, and a large and growing middle class is showing
greater willingness to utilise credit," the authors of the just-
released paper say.

"Meanwhile, much of India's infrastructure is of poor quality,
and requires enormous amounts of capital for improvements to
sustain its economic expansion," they add in the report, which
is entitled "New Era for India's Economy Spurs Need for More
Varied Debt Markets."

The report covers a broad range of topics, including the
specifics of the country's growing credit requirements, the
government's debt burden and its impact, constraints on
liquidity, some concerns of the Reserve Bank of India, whether
banks can keep pace with credit demand, the reforms needed to
develop markets for corporate bonds and structured finance, and
foreign currency borrowings.

The authors say that the Indian government accepts the need for
many of the reforms discussed in the report, but as is often the
case the principal challenges lie in implementation.

For now, in India, the domestic banking system remains the
mainstay provider of credit, both to the government and to the
private sector, the report says.  However, local banks may be
unable to meet future demand fully.

"A major problem is the government's need to finance its own
high level of debt, which has historically crowded-out the
availability of credit to the private sector," the authors say,
adding, "This debt burden is unlikely to fall significantly in
the near term."

Consequently, notwithstanding current concerns about excessive
credit growth and inflationary pressures, the maintenance of
high rates of economic growth over the long term may require
further financial market reforms to expand the sources and
availability of credit.

"On the demand side, such reforms would include easing
investment guidelines for pension funds and insurance companies,
which both restrict their ability to invest in non-governmental
paper, and inhibit the emergence of a deeper and broader credit
culture through the financial system," the report says.

"On the supply side, reforms could promote the domestic
corporate bond market as a viable alternative to bank lending,"
the report says, adding, "Additional reforms could encourage
development of the domestic structured finance market, which
would increase the capacity of banks to lend."

A further easing of restrictions on foreign currency borrowings
may also be necessary, particularly to meet the infrastructure
sector's long-term funding needs.

Domestic credit in India has been growing at about 30% per
annum, while bank deposit growth has been about 20%. The high
rate of credit growth has resulted in banks providing funding in
part by liquidating assets. Furthermore, the current favourable
conditions for global liquidity, including a high appetite for
emerging market risk, will not continue indefinitely, the report
says.

The lead author of the report was Chetan Modi, Representative
Director for Moody's India.  It can be found on
http://www.moodys.com/and http://www.icraratings.com/


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

ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site
-------------------------------------------------------------
Alcatel-Lucent appointed Gerard Le Bihan to lead its site in
Lannion, France, replacing Nicolas Le-Guennec.  He will also
keep its operational functions in Alcatel-Lucent convergence
activities.

Mr. Le-Guennec, who has lead the legacy Alcatel site in Lannion
since 2002, is becoming responsible for the global real estate
portfolio of Alcatel-Lucent within the nine Regional Units
established in Europe & South (Central & Latin America, France,
Iberia, Italy, Middle-East, Africa, South Asia, South East
Europe).

Mr. Le Bihan joined Alcatel in 1981, and made his career there.  
Between 1981 and 2001, he managed different technical functions,
especially in the ATM environment.  In 2002, he joined the
Mobile communications activities as Project director for new
product and network integration focusing on IMS development.  
Since 2004, he was Senior architect in charge of the portfolio
renovation for both the circuit and data product lines.  Gerard
Le Bihan has an engineer degree of ENST Brest (Ecole Nationale
Superieure de Telecommunications).  He is currently 48 years
old.

                     About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that  
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                          *     *     *

As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


ANIXTER INT'L: May Repurchase Up to 1 Million Common Shares
-----------------------------------------------------------
Anixter International Inc. disclosed that under a previously
authorized share repurchase program it may repurchase up to 1
million of its outstanding common shares with the exact volume
and timing dependent on market conditions.

Anixter currently has approximately 39.5 million shares
outstanding.

Anixter International Inc. -- http://www.anixter.com-- is the   
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.

The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5.0 million square feet of space, and our presence in 220
cities in 45 countries, including Indonesia, Australia, China,
Hong Kong, India, Malaysia, New Zealand, the Philippines,
Singapore, Taiwan, and Thailand.

The Troubled Company Reporter -- Asia Pacific reported on
Oct. 13, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the Wholesale
Distribution (Excluding Healthcare) sector, the rating agency
confirmed its Ba1 Corporate Family Rating for Anixter
International Inc.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$200 million
   5.95% Unsecured
   Notes                  Ba1     Baa3    LGD2        28%

   US$155 million
   Subordinated
   LYON's notes           Ba3     Ba2     LGD6        94%

   US$100 million
   Shelf                P(Ba1)  P(Baa3)   LGD2        28%

Fitch Ratings affirmed these ratings for Anixter International
Inc. and its wholly owned operating subsidiary, Anixter Inc.:

  Anixter:

    -- Issuer Default Rating 'BB+'
    -- Senior unsecured debt 'BB-'

  AI:

    -- Issuer Default Rating 'BB+'
    -- Senior unsecured notes 'BB+'
    -- Senior unsecured bank credit facility at 'BB+'

Fitch's action affects approximately US$700 million of public
debt securities.  The Rating Outlook is Stable.


GNC CORP: Supports Passage of Adverse Event Reports Bill
--------------------------------------------------------
GNC Corp. supported the passage of the Dietary Supplement and
Nonprescription Drug Consumer Act, also known as the Adverse
Event Reports or AER bill.  The Act requires the distributors of
dietary supplement and over-the-counter drug products to submit
any serious adverse event report attributed to their products to
the United States Food and Drug Administration within 15
business days of receiving the report.  This new law becomes
effective one year after its passage on Dec. 26.

GNC applauds the lawmakers who drafted and supported the passage
of this bill believing that it will highlight the safety of
dietary supplements and over-the-counter drugs, and that such
additional federal oversight will further increase consumer
confidence in these products.  GNC is committed to helping
people Live Well and recognizes that product safety is a pillar
of that commitment.

"We already have a system in place for reporting adverse events
and we will we continue to build upon that system in 2007 to
ensure it complies with the new law," stated Susan Trimbo, PhD,
Sr. Vice President of Scientific Affairs.  "This kind of
legislation improves the industry as a whole through
accountability which, in turn, increases consumer confidence in
dietary supplements.  We stand behind the quality of our
products and our manufacturing standards."

Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary
of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of   
health and wellness products, including vitamins, minerals,
herbal, and specialty supplements (VMHS), sports nutrition
products and diet products.  The company sells its products
through a worldwide network of more than 5,800 locations
operating under the GNC brand name and operates in three
business segments: retail, franchise and manufacturing/
wholesale.

GNC's Asian operations include those in Indonesia and the
Philippines.

                          *    *    *

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 23, 2006, Moody's Investors Service downgraded the
corporate family rating of GNC Parent Corporation to B3 and the
US$425 million holding company note issue to Caa2.

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

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


GOODYEAR TIRE: Closes Global Tire Fabric Operations Sale
--------------------------------------------------------
Goodyear Tire & Rubber Co has closed the sale of its tire fabric
operations to Hyosung Corp. pending post-closing adjustments and
completion of the sale of its Americana, Brazil, operation.

As part of the transaction, Goodyear Tire will complete the
previously announced sale of its Brazil operation to Hyosung in
the first quarter of 2007, pending government and regulatory
approvals.  This portion of the transaction represents less than
5% of the sale price.
    
Goodyear Tire said the decision to sell the operations, which
produce and treat fabric that is used in tires, is part of the
company's strategy to focus activity and investment in its core
consumer and commercial tire businesses.
    
In addition, the companies have signed a multi-year supply
agreement.  

Goodyear said it believes that the supply agreement could
provide it with significant cost savings and improved cash flow.
    
Robert J. Keegan, Goodyear Tire chairperson and chief executive
officer, said, "We thank our fabric associates for their many
important contributions to Goodyear over the decades.  We look
forward to a long and rewarding relationship with Hyosung."
    
Goodyear Tire's global tire fabric operation includes plants in:

          -- Americana, Brazil;
          -- Colmar-Berg, Luxembourg;
          -- Decatur, Alabama; and
          -- Utica, New York.

                        About Hyosung

Headquartered in Seoul, South Korea, Hyosung Corp. is one of
Korea's largest industrial conglomerates, with multiple
businesses in textiles, industrial materials, chemicals, power
and industrial systems, construction, information technology and
trading.  Hyosung Tire Reinforcements has produced tire cord
since 1968 and operates globally including North America, Korea
and China.

                    About Goodyear Tire

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Jan. 9, 2007, that 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'.

The TCR-AP also reported on Jan. 5, 2007, that Standard & Poor's
Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on
Oct. 16, 2006, as a result of the labor dispute at several of
the company's North American plants.

Moreover, 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.


HILTON HOTELS: Launching Construction Works for Buffalo Thunder
---------------------------------------------------------------
Hilton Hotels Corp. reported that construction works for Buffalo
Thunder Resort will start this month.

Buffalo Thunder Resort is located on Highway 84/285, 12 miles
north of Santa Fe.  The new construction will be on the 587-acre
site that is home to the Towa GolfSM Course, designed by Hale
Irwin and Bill Phillips, and adjacent to the 81-unit Homewood
Suites by Hilton Hotels.

Buffalo Thunder is designed to be a Four-Star destination resort
and will include the 390-room Hilton Santa Fe North, a luxury
spa and fitness facility, several restaurants, entertainment
venues, meeting space and a new upscale casino.  Construction is
expected to be completed in 2008.

Governor George Rivera said, "The beginning of construction is
the result of years of planning and investment by the Pueblo of
Pojoaque.  Buffalo Thunder, the name of the new resort, was
chosen because it is a symbol of spiritual strength for Native
Americans."

Governor Rivera noted that the resort also will create new jobs
for the area.

"This international destination resort will mean the addition of
approximately 600 new and good paying jobs to New Mexico.  The
people of the Pojoaque Valley and northern New Mexico will have
the opportunity to hold quality jobs in the entertainment,
hospitality and service areas.  Not only will this new
enterprise create jobs, it will establish careers," Governor
Rivera stated.

According to Governor Rivera, the hiring process is still months
away.  But once it begins Hilton Hotels will be conducting
employee training.  The Pueblo of Pojoaque also will utilize the
training services of the Northern New Mexico College in
Espanola.

The Pueblo of Pojoaque, through the Buffalo Thunder Development
Authority and certain other of its tribal corporations, is the
owner of the entire destination resort.  Hilton Hotels Corp.
will manage the hotel and resort.

"Hilton is one of the most recognizable brands in the
hospitality industry and the largest hotel company in the world,
and having that name attached to our project reflects our
commitment to quality," Governor Rivera said.

Ben Fusco, Hilton Hotels' area vice president, commented,
"Hilton Hotels Corp. is extremely pleased to be working with the
Pueblo of Pojoaque on this unique project that, when completed,
promises to result in a prominent and novel addition to our
company's growing portfolio of worldwide resorts."  The new
facility will feature 66,000 square feet of meeting space and
includes a 1,200 seat ballroom.  There also will be:

          -- a 16,000-square foot Native American themed
             spa/salon and exercise facility,

          -- a 12,700-square foot retail promenade,

          -- an 8,000-square foot children's recreation area,
             and

          -- a 100 seat outdoor performance space.

The new state-of-the-art, upscale Las Vegas style casino, to be
operated by the Pueblo of Pojoaque's new corporation, Buffalo
Thunder Inc., will be 151,000 square feet with 1,200 slot
machines 25 table games, a horse and dog simulcast wagering area
and a 10-table poker room.

Architects for the project are Thalden-Boyd of Tulsa, OK, a firm
specializing in Native American casino design.  The destination
resort will be built in the traditional Pueblo style.

The Centex Corp. with headquarters in Dallas, TX is the
contractor for the project and under a directive from the Pueblo
of Pojoaque, will be utilizing local contractors and local labor
as much as possible.

The substantial planned infrastructure of the project includes
construction of an environmentally responsible, state-of-the-art
wastewater treatment facility that will have 100 percent water
recycling capability.  The project will harvest and purify
rainwater through the use of settlement basins.  When completed,
all irrigation for the Towa Golf Course will come from recycled
water.

The substantial planned infrastructure of the project includes
construction of an environmentally responsible, state-of-the-art
wastewater treatment facility that will have 100 percent water
recycling capability. In addition, plans call for the
"harvesting" and purification of rainwater through the use of
settlement basins.

Access to the new resort is via the Buffalo Thunder interchange
on Highway 84/285 that was completed in 2004.  The interchange
is at the southern border of the Pueblo.  On the overpass
leading to the Resort is the word Posuwageh.  This is the
original name of the Pueblo in the indigenous Tewa language.

               Buffalo Thunder Resort Fact Sheet

Project Description Overview

The project consists of construction of:

          -- a 390-room hotel (The Hilton Santa Fe North);
          -- a luxury spa and fitness facility;
          -- dining areas;
          -- entertainment venues;
          -- 66,000 square feet in meeting space; and
          -- a new casino with 1,200 slot machines, 25 table
             games and a 10-table poker room.

Architects:

          -- Thalden-Boyd Architects (St. Louis, Tulsa, Las
             Vegas)

          -- Native American casino design specialists.  

Contractor:

          Centex Corp.
          Dallas, Texas

                      Construction Calendar

Construction starts January 2007 and will be completed September
2008.

                        Project Location

The new construction will take place at the Buffalo Thunder
located on Highway 84/285 (exit 177) on 587 acres of Pueblo of
Pojoaque tribal land.  It is approximately 12 miles north of the
Santa Fe Plaza and approximately two miles south of the Cities
of Gold Casino, also owned by the Pueblo of Pojoaque. The
project is located in an area between the existing Towa Golf
Course clubhouse and the Homewood Suites.

The Pueblo of Pojoaque will own the Hilton Santa Fe North at
Buffalo Thunder Resort through the Buffalo Thunder Development
Authority and it will be operated under a management contract
with the Hilton Hotels Corp.  The 5-story hotel will consist of
390 upscale rooms with Pueblo-themed decor and a two-level
Presidential Suite with a private outdoor "observatory".

                       Resort Amenities

Located in the new facility will be several restaurants
including:

          -- a 350-seat buffet;

          -- a sports bar;

          -- a dance club and a flair bar located near the
             casino floor with 100 seats and entertainment
             stage;

          -- a 16,000-square foot spa, salon and exercise
             facility, indoor and outdoor pools, tennis courts
             and sand volleyball courts;

          -- an 8,000-square foot children's recreation area
             featuring computer labs, kiddy pools, library, and
             theater;

          -- a 12,700-square foot retail promenade and a 100-
             seat outdoor performance space.

                        Conference Center

There will be 66,000 square feet of meeting space and ballrooms
including a 1,200 seat main ballroom, a 650 seat junior ballroom
and eight breakout rooms.  

               The Casino at Buffalo Thunder Resort

The new 151,000-square foot casino will be operated by the
Pueblo of Pojoaque similar to the existing Cities of Gold Casino
and the Sports Bar Race Book and Casino.  The Casino at Buffalo
Thunder Resort will feature 1,200 slot machines, 25 table games;
simulcast wagering, and a 10-table poker room.
There will be 1,400 parking spaces including RV and bus parking.

                     About Pueblo of Pojoaque

The Pueblo of Pojoaque is a federally recognized tribe with 373
members located on 13,500 acres approximately 12 miles north of
Santa Fe.  The leaders, elected every two years, are:

          -- George Rivera, Governor;
          -- Linda Diaz, Lt. Governor;
          -- Stephanie Crosby, Secretary; and,
          -- Mary Ann Katherine Fierro, Treasurer.

The Pueblo of Pojoaque is one of eight pueblos in northern New
Mexico.  The Pueblo of Pojoaque also owns and operates several
other businesses including the Cities of GoldSM Casino, the
Sports Bar Race Book Casino, the 124 room Cities of Gold Hotel &
Conference Center, the 127-unit Butterfly Springs Apartments,
the Butterfly Mobile Home Park, the Pojoaque Supermarket, the
Pojoaque True Value Hardware Store, the Pojoaque Visitor Center
and Gallery, the Pojoaque Convenience Store, the Pojoaque Travel
Center, the O Eating House restaurant and a laundry mat.  A
bowling alley is under construction at the Cities of Gold Casino
and a 63-unit RV park will be completed in the summer 2007.  The
Homewood Suites by Hilton Hotels and the new Wedding Chapel are
part of the Buffalo Thunder Resort.  The Pueblo of Pojoaque
employs 900 persons.  The new project, when completed, will
employ an additional 600 persons.

                  About Buffalo Thunder Resort

Buffalo Thunder Resort is the umbrella name of the entire resort
area.  Currently Buffalo Thunder Resort is home to the 27-hole
Towa Golf Course (opened September 2002), the 81-room Homewood
Suites by Hilton (opened February 2005) and the Wedding Chapel
at Pojoaque (October 2006).

                       About Hilton Hotels

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,   
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.

                          *     *     *

Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Senior Notes
   with an average
   rate of 8.1%
   due 2007 - 2031       Ba2      Ba2      LGD4       53%

   Chilean inflation
   indexed note
   effective rate
   7.65% due 2009        Ba2      Ba2      LGD4       53%

   3.375%
   Contingently
   convertible
   senior notes
   due 2023              Ba2      Ba2      LGD4       53%

   Minimum Leases
   Commitments           Ba2      Ba2      LGD4       53%

   Term Loan A
   at adjustable
   rates due 2011        Ba2      Ba2      LGD4       53%

   Term Loan B
   at adjustable
   rates due 2013        Ba2      Ba2      LGD4       53%

   Revolving loans
   at adjustable
   rates, due 2011       Ba2      Ba2      LGD4       53%

   Senior unsecured
   debt shelf            Ba2      Ba2      LGD4       53%

   Subordinate debt
   Shelf                 Ba3      B1       LGD6       97%

   Preferred             B1       B1       LGD6       97%


HILTON HOTELS: To Launch Warsaw Hotel & Convention Center
---------------------------------------------------------
Hilton Hotels Corp. will open the Warsaw Hotel and Convention
Center in March.

The 29-story Warsaw Hotel and Convention Center opens in Poland,
which will be meant for meetings and conventions.

The Hilton Warsaw Hotel and Convention Centre will house the
largest and most modern conference facilities in the city of
Warsaw.  The 3000 square meters of flexible event space is
double the size of any hotel meeting space now available.

Wolfgang M. Neumann, president of Hilton Europe & Africa, said,
"Warsaw is known for its dramatic history, but more than ever it
is emerging as the EU's (European Union) newest and best value
meeting and convention destination. Located within easy reach of
the major European source markets of London, Paris and
Frankfurt, the city offers an unusual backdrop: modern
skyscrapers coexist with communist constructions while the
historic old town is home to a vibrant restaurant and bar scene.
All this is supported by excellent service standards."

Bert Fol, general manager of the hotel, said, "From the moment
you walk into the hotel with its light-flooded 19-meter high
lobby, to the spacious meetings and guest rooms, this is a hotel
that is opening up the destination.  It is an inspiring product
in the hub of an inspiring city.  When it opens in March, it
will be a premier meetings facility by any world standard."

Central to the hotel's meetings offerings is the Warsaw Hall, a
1406 square meter pillar-less ballroom featuring five-meter high
ceilings, a panel of floor-to-ceiling windows along one wall
(with blinds allowing total blackout), and the most
sophisticated technology in the capital including Guest-Tec-
provided wired and wireless Internet allowing 1000 users to log
on simultaneously.  The ballroom is positioned for large-scale
product launches and sales conventions and has a capacity for
1850 attendees theater style with an adjacent 520 square meter
exhibition hall for display booths and breakout meetings.
Furthermore, the ballroom can be configured into five separate
soundproof spaces for smaller meetings, allowing for the
transformation of a room for 750 into a themed banquet in a
guaranteed turnaround time of 60 minutes.

Hilton Warsaw also features 14 meeting rooms, all with natural
daylight, electronic signage, broadband access for email and
streamed data and projector.  A business center located over two
floors will be serviced by experienced staff and outfitted with
color laser printers, faxes, copiers and desktop PCs with
Internet access.  All 314 guest rooms come equipped with 27-inch
LCD screens and special software known as the Conference
Manager, which provides real-time event information directly to
the guest room television.

The hotel is set to become an entertainment destination for
local residents.  It will house a 188-seat modern restaurant
known as Meza, the stylish Pistachio bar and the city's largest
and most luxurious fitness center, the 3800 square meter Holmes
Place, which is complimentary to all guests.  Hilton Warsaw will
also have a casino offering Vegas-style entertainment and
underground parking facilities for 350 cars.

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,   
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.

                          *     *     *

Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Senior Notes
   with an average
   rate of 8.1%
   due 2007 - 2031       Ba2      Ba2      LGD4       53%

   Chilean inflation
   indexed note
   effective rate
   7.65% due 2009        Ba2      Ba2      LGD4       53%

   3.375%
   Contingently
   convertible
   senior notes
   due 2023              Ba2      Ba2      LGD4       53%

   Minimum Leases
   Commitments           Ba2      Ba2      LGD4       53%

   Term Loan A
   at adjustable
   rates due 2011        Ba2      Ba2      LGD4       53%

   Term Loan B
   at adjustable
   rates due 2013        Ba2      Ba2      LGD4       53%

   Revolving loans
   at adjustable
   rates, due 2011       Ba2      Ba2      LGD4       53%

   Senior unsecured
   debt shelf            Ba2      Ba2      LGD4       53%

   Subordinate debt
   Shelf                 Ba3      B1       LGD6       97%

   Preferred             B1       B1       LGD6       97%


INCO LTD: Completes Amalgamation with Itabira Canada
----------------------------------------------------
CVRD Inco Limited fka Inco Limited completed the amalgamation of
Inco Limited and Itabira Canada Inc., a wholly owned subsidiary
of Companhia Vale do Rio Doce, to continue as "CVRD Inco
Limited".  As a result of the amalgamation, CVRD now owns 100%
of the common shares of CVRD Inco.

Under the amalgamation, which was effective on Jan. 4, 2007,
holders of Inco Limited common shares (other than dissenting
shareholders and affiliates of CVRD) received, for each such
share held by them, one Class A redeemable preferred share of
CVRD Inco.  The Class A redeemable preferred shares were then
redeemed for CDN$86 per share in cash, the same price paid under
CVRD's successful take-over bid for Inco Limited in October
2006.  

Inco Limited's common shares were delisted from the Toronto
Stock Exchange at the close of trading today and will no longer
be traded on any stock exchange.  CVRD Inco has applied to cease
to be a reporting issuer under Canadian securities laws and has
suspended its reporting obligations under United States
securities laws.  

Former holders of Inco Limited common shares can obtain more
information regarding how to obtain the cash payable to them in
connection with the redemption of their shares in the meeting
materials relating to the special meeting of shareholders held
on Jan. 3, 2007.  These meeting materials are available on the
Inco Limited website at http://www.inco.com/

Former Inco Limited registered shareholders with any questions
or requests for assistance in surrendering their certificates
may contact Computershare Investor Services Inc. by telephone
toll free in North America at 1-866-612-8058 or overseas at 1-
514-982-7555.

                   Stockholders' Approval

As previously reported in the Troubled Company Reporter - Asia
Pacific, at a special meeting held on Jan. 3, 2007, in Toronto,
Canada, shareholders of Inco Limited overwhelmingly approved the
amalgamation of Inco with Itabira Canada.

                      About Inco Ltd.

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

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


METSO OYJ: Completes Takeover of Aker Kvaerner's Pulping Unit
-------------------------------------------------------------
Metso Oyj completed the acquisition of Aker Kvaerner's Pulping
and Power businesses.  The businesses were transferred to Metso
on Dec. 29, 2006.  The European Commission clearance for the
acquisition was received on Dec. 12, 2006.

The cash and interest-bearing debt-free acquisition price,
agreed in April 2006 when the sales and purchase agreement was
signed, was approximately EUR335 million.  The final transaction
price will be based on the balance sheet at the time of the
closing.  Metso will disclose of the final transaction value,
including the adjustments related to the remedy package, after
the parties have agreed upon the closing balance sheet.

Metso has also completed the sales and purchase agreement of the
remedy package concerning the divestment of Metso Paper's and
Aker Kvaerner's overlapping pulping businesses to the Canadian
Groupe Laperriere & Verreault Inc. (GL&V).  The remedy package
was transferred to GL&V on Dec. 29, 2006.  The divestment of the
remedy package was conditional on the approval received from the
European Commission on Dec. 12, 2006.  The parties have agreed
that the transaction value will not be disclosed.

                       About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA
-- http://www.akerkvaerner.com/-- through its subsidiaries and  
affiliates, provides engineering and construction services,
technology products and integrated solutions.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C.  The group operates in
Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany,
Netherlands, Poland, Russia, Spain, Sweden, United Kingdom,
Australia, China, India, Indonesia, Japan, Malaysia, Singapore,
South Korea, Thailand, Brazil, Chile, Canada and the United
States.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and  
paper industry, rock and minerals processing, the energy
industry and selected other industries.

The company also has operations in Indonesia.

                          *     *     *

Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating.  The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.


METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB
------------------------------------------------------------
Metso Oyj finalized on Dec. 29, 2006, the divestment of the
shares of Metso Powdermet AB in Sweden to Sandvik AB following
the regulatory approvals.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and  
paper industry, rock and minerals processing, the energy
industry and selected other industries.

The company also has operations in Indonesia.

                          *     *     *

Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating.  The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.


NORTEL NETWORKS: Completes Sale of UMTS Ops to Alcatel-Lucent
-------------------------------------------------------------
Nortel Networks Corp. has closed the sale of assets and
liabilities related to its UMTS access business to Alcatel-
Lucent.

The sale closed on Dec. 31, 2006.  As previously announced, the
transaction is for US$320 million in cash less significant
deductions and transaction related costs.  

The closing of the sale follows the signing of the definitive
agreement on Dec. 4, 2006, and the signing of the non-binding
Memorandum of Understanding between the companies on Sept. 1,
2006.

As part of the agreement, approximately 1,700 of Nortel's UMTS
access employees have transferred to Alcatel-Lucent.  Regulatory
approvals have been met.  With the completion of this sale,
Alcatel-Lucent acquired the UMTS access product portfolio,
associated patents and tangible assets as well as customer
contracts from Nortel.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that  
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

                        About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized  
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.


NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic
-------------------------------------------------------------
Nortel Networks Corp. and Telefonica O2 Czech Republic, the
largest provider of wireless voice and data services in the
Czech Republic, have teamed to show how operators can use
broadband wireless spectrum more efficiently.

The two companies successfully demonstrated Europe's first
CDMA2000 1xEV-DO Rev A call in the Telefonica O2 Czech Republic
network at 450 MHz radio spectrum.  This broadband capability is
expected to enable Telefonica O2 Czech Republic to deliver more
IP wireless services such as mobile music and interactive 3D
gaming, VoIP, and high-speed file transfers; and support real-
time interactive access to services such as push-to-talk, mobile
television and video telephony.

"We are glad that the 1xEV-DO Rev A deployment pilot has been
successfully accomplished," said Pavel Kolar, Chief Network
Infrastructure Officer, Telefonica O2 Czech Republic.  "We have
experienced significant improvement on the throughput and
latency of Rev A data transfer.  It clearly demonstrates that
the latest CDMA2000 technology evolution, in combination with
excellent radio propagation in the 450 MHz band, delivers
improved customer benefits."

"Nortel's 11-year experience with CDMA is helping us develop
leading-edge solutions which benefit wireless operators by
increasing revenue potential and enhancing the subscriber
experience," said Wim Te Niet, president Central Region EMEA,
NorTel: "With Telefonica O2 Czech Republic we're showing how
Nortel's unique blend of broadband access products, IP core
experience, network services and ability to deliver simple
network upgrades helps to get the best from the wireless
spectrum."

The call was enabled by a simple upgrade from 1xEV-DO Rev 0 to
Rev A technology. Using the same 1.25 MHz channel, CDMA2000
1xEV-DO Rev A provides both forward and reverse links with more
capacity and higher data rates, with up to 3.1 Mbps in the
forward link and 1.8 Mbps in the reverse link.  These faster
data rates combined with Quality of Service (QoS) and low
latency, enables the provision of 3.5G services such as wireless
gaming, streaming audio and video, and high performance push-to-
talk capabilities.  In addition to the Nortel upgrade, the
demonstration was achieved using an ADU-500A CDMA EV-DO Rev A
wireless modem from AnyDATA.

Nortel CDMA 450 equipment creates networking efficiencies that
help drive reduced capital and operating costs.  The 1xEV-DO Rev
A implementation only required one hardware addition -- the Rev
A channel card -- on the Telefonica O2 Czech Republic network to
enable the new service and maximize the operator's existing
investment in 450 MHz spectrum and core network equipment.

Nortel has provided EV-DO equipment to 21 of the 37 commercial
networks with leading operators worldwide including Verizon
Wireless and Sprint in the United States, Bell Mobility and
Telus in Canada. Nortel was the first to commercially offer EV-
DO in South America with Embratel, Brazil; in Central America
with Telefonica Guatemala; and is now the first to deliver EV-DO
at 450 MHz in Eastern Europe with Telefonica O2 Czech Republic.

               About Telefonica O2 Czech Republic

Telefonica O2 Czech Republic a.s. offers the most comprehensive
portfolio of voice and data services in this country.  Special
attention is paid to exploiting growth potential, in particular
the company's data and Internet business. Telefonica O2 Czech
Republic operates the largest fixed and mobile network including
a unique 3rd generation network, CDMA (for data) and UMTS,
enabling the transport of voice, data and video.

                         About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized  
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.


PERTAMINA: To Invest US$1.65 Billion in Projects for 2007
---------------------------------------------------------
The Indonesian Government, as the main shareholder of PT
Pertamina (Persero), has approved the oil and gas company's plan
to invest up to IDR14.9 trillion (US$1.65 billion) in projects
this year, Antara News reports.

According to the report, most of the funds will go towards the
Cepu oil and gas block project in East Java and the Pondok
Tengah gas field project in Bekasi, West Java.

The report notes that Pertamina finance director Frederick
Siahaan said that funding for the projects will be acquired
through a loan worth US$500 million and from other sources
including bonds.

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

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

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

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


TELKOM INDONESIA: To Spin Off Fixed-Wireless Unit, Telkom Flexi
---------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk plans to spin off its fixed-
wireless operation, Telkom Flexi, into a separate unit in
February, Reuters reports, citing the company chief.

Reuters cites Telkom President Director Arwin Rasyid as saying
that the move was aimed at providing greater flexibility for
Telkom Flexi in fixed wireless telecommunications, where the
company faces competition.

The report notes that operators, which provide mobile
telecommunications with limited range, use code division
multiple access technology, rather than the more widely used GSM
standard.

Mr. Rasyid told Reuters that the CDMA market is getting more
developed and competition is tougher and the spin-off will
create more efficiency.

The report points out that Mr. Rasyid did not say whether Telkom
plans to sell Telkom Flexi in the future.

Reuters notes that Telkom Flexi contributed more than
IDR2 trillion to Telkom Indonesia's total revenue, which was
expected to reach IDR51.3 trillion in 2006.

Mr. Rasyid also said that Telkom Flexi planned to spend IDR2
trillion to IDR3 trillion for capital spending this year, the
report adds.

Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com
-- provides local and long-distance telephone service in
Indonesia.  Known as Telkom, the company also offers fixed-
wireless service, leased lines, and data transport through
affiliates.

As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service gave Telekomunikasi
Indonesia a Ba1 local currency corporate family rating.

Standard & Poor's Ratings Services gave the company foreign and
local currency corporate credit ratings of BB+.

Fitch Ratings has assigned Telkom Indonesia Long-term foreign
and local currency Issuer Default Ratings of 'BB-'.


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

CONTINENTAL AIRLINES: Posts 79.5% December 2006 Load Factor
-----------------------------------------------------------
Continental Airlines reported a December consolidated load
factor of 79.5% in December 2006, 1.8 points above the December
2005 consolidated load factor.  Its mainline load factor of
79.9% in December 2006, about 1.9 points above the December 2005
mainline load factor, and a domestic mainline load factor of
81.8% -- 2.1 points above December 2005.  All three were records
for the month.  

Continental Airlines had an international mainline load factor
of 77.5% in December 2006, 1.7 points above December 2005.
    
During the month, Continental recorded a US Department of
Transportation on-time arrival rate of 73.4% and a December
mainline completion factor of 99.6%.
    
In December 2006, Continental Airlines flew 7.5 billion
consolidated revenue passenger miles or RPMs and 9.4 billion
consolidated available seat miles or ASMs, resulting in a
traffic increase of 6.9% and a capacity increase of 4.4% as
compared to December 2005.  In December 2006, Continental
Airlines flew 6.6 billion mainline RPMs and 8.3 billion mainline
ASMs, resulting in a mainline traffic increase of 7.1% and a
4.6% increase in mainline capacity as compared to December 2005.  
Domestic mainline traffic increased 5.4% to 3.7 billion RPMs in
December 2006, compared with December 2005.  Domestic mainline
capacity increased 2.8% to 4.5 billion ASMs in December 2006
from December 2005.
    
For December 2006, consolidated passenger revenue per available
seat mile or RASM is estimated to have increased between 3.5%
and 4.5% compared with December 2005.  Mainline passenger RASM
is estimated to have increased between 5.5% and 6.5% in December
2006, compared with December 2005.  

For November 2006, consolidated passenger RASM increased 3.3%
compared with November 2005, while mainline passenger RASM
increased 4.6% from November 2005.
    
Continental Airlines estimates fourth quarter consolidated RASM
to have increased between 4.1% and 4.4% in 2006, compared with
the fourth quarter 2005.  Fourth quarter cost per available seat
mile or CASM is expected to be in line with its most recently
provided guidance.  As a result, the company expects to report a
modest loss for the quarter, excluding special charges.
    
Continental Airlines ended the fourth quarter of 2006 with
unrestricted cash and short-term investments of approximately
US$2.48 billion.
    
December 2006 sales at continental.com increased 19.0% over
December 2005.
    
Continental Airlines' regional operations had a record December
load factor of 77.0% in December 2006, 1.6 points above the
December 2005 load factor.  Regional RPMs were 864.7 million and
regional ASMs were 1,122.5 million in December 2006, resulting
in a traffic increase of 5.8% and a capacity increase of 3.6%
versus December 2005.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout the Americas, Europe and
Asia.  It serves 15 European cities, 7 South American cities,
Tel Aviv, Hong Kong and Tokyo.  International operations are
carried out throughout Europe, Canada, Mexico, Central and South
America, Caribbean and also Tel Aviv, Hong Kong and Tokyo.  More
than 400 additional points are served via SkyTeam alliance
airlines.  With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year.  Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 10, 2006,
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s.  Moody's affirmed the B3 corporate
family rating.  Moody's said the outlook is stable.

The TCR reported on Oct. 23, 2006, that Standard & Poor's
Ratings Services affirmed its ratings, including the 'B' long-
term and 'B-3' short-term corporate credit ratings, on
Continental Airlines Inc.  The outlook is revised to stable from
negative.  Continental has about US$17 billion of debt and
leases.

At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.  Fitch said
the rating outlook was stable.


EDDIE BAUER: Reports that Antitrust Act Waiting Period Expired
--------------------------------------------------------------
Eddie Bauer Holdings, Inc., disclosed that, with respect to its
proposed sale to Eddie B Holding Corp., the waiting period
required under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 has expired without a request for additional information
from the United States Federal Trade Commission.

The Company has entered into a definitive agreement for the sale
of Eddie Bauer to Eddie B Holding Corp. for US$9.25 per share in
cash.  The transaction is expected to close in the first quarter
of 2007, subject to the satisfaction of other previously
disclosed closing conditions.

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

The Troubled Company Reporter - Asia Pacific reported on
Oct. 23, 2006, that Moody's Investors Service confirmed its B2
Corporate Family Rating for Eddie Bauer, Inc. and its B2 rating
on the company's US$300 million term loan, in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology for the U.S. and Canadian
Retail sector.  In addition, Moody's assigned an LGD4 rating to
those notes, suggesting noteholders will experience a 55% loss
in the event of a default


EDDIE BAUER: Seeks Approval of Proposed Sale from Stockholders
--------------------------------------------------------------
Eddie Bauer Holdings, Inc., commenced mailing its definitive
proxy statement to stockholders for approval of its proposed
sale to Eddie B Holding Corp. for US$9.25 in cash per share.

The Company has scheduled a special meeting of stockholders for
Jan. 25, 2007, to consider and vote on the proposed Merger
Agreement.  Stockholders of record as of Dec. 21, 2006, will be
entitled to vote on the transaction.

The company's board of directors has unanimously determined that
the Merger Agreement is advisable and in the best interests of
Eddie Bauer's stockholders and recommends stockholders vote
"FOR" adoption of the Merger Agreement.

Prior to reaching its decision, the Board of Directors conducted
an evaluation of the alternatives available to maximize
stockholder value, including, among other things, the
advisability of remaining independent and attempting to
implement a turnaround of the business.  Based on its analysis,
the Board of Directors concluded that the proposed sale
represents the best opportunity to maximize value for Eddie
Bauer stockholders.  In addition, the proposed all-cash
consideration provides stockholders with fair and certain value
as well as an immediate cash return.  Both Goldman, Sachs & Co.
and William Blair & Company L.L.C. issued separate opinions that
the proposed purchase price is fair to Eddie Bauer stockholders
from a financial point of view.

Stockholders with questions regarding the solicitation may
contact the company's proxy solicitor Innisfree M&A Incorporated
at (888) 750-5834.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Eddie Bauer Holdings Inc. and Eddie B Holding Corp., a company
owned by affiliates of Sun Capital Partners Inc. and Golden Gate
Capital, have entered into a definitive agreement under which
Eddie B Holding Corp. has agreed to acquire Eddie Bauer for
US$9.25 per share in cash.

                   About Sun Capital Partners

Sun Capital Partners Inc. is a private investment firm focused
on leveraged buyouts, equity, debt, and other investments in
companies that can benefit from its in-house operating
professionals and experience.  Sun Capital affiliates have
invested in and managed more than 135 companies worldwide with
combined sales in excess of $30 billion since Sun Capital's
inception in 1995.  Sun Capital has offices in Boca Raton, Los
Angeles, New York, London, and Shenzhen.

                   About Golden Gate Capital

Golden Gate Capital -- http://www.goldengatecap.com/-- is a  
private equity firm with over $2.6 billion of capital under
management dedicated to investing in change-intensive
opportunities.  The firm's charter is to partner with world-
class management teams to make equity investments in situations
where there is a demonstrable opportunity to significantly
enhance a company's value.  The principals of Golden Gate
Capital have a long and successful history of investing with
management partners across a wide range of industries and
transaction types.

                      About Eddie Bauer

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

The Troubled Company Reporter - Asia Pacific reported on
Oct. 23, 2006, that Moody's Investors Service confirmed its B2
Corporate Family Rating for Eddie Bauer, Inc. and its B2 rating
on the company's US$300 million term loan, in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology for the U.S. and Canadian
Retail sector.  In addition, Moody's assigned an LGD4 rating to
those notes, suggesting noteholders will experience a 55% loss
in the event of a default


GAP INC: Weak Sales Prompt Fitch's Ratings Downgrade
----------------------------------------------------
Fitch has downgraded its ratings on The Gap, Inc. as:

   -- Issuer Default Rating to 'BB+' from 'BBB-'; and,
   -- Senior unsecured notes to 'BB+' from 'BBB-'.

The Rating Outlook is Negative.

The rating action affects approximately US$513 million of debt.

The downgrade reflects the company's continued weak same store
sales trends which have resulted in lower operating margins and
weaker credit metrics.  As a result, the company has announced
that management and the board of directors are together
reviewing Gap's and Old Navy's brand strategies.  The weak
operating trends and the uncertainty related to the strategic
review of the portfolio are reflected in the Negative Rating
Outlook.  The ratings continue to consider the company's
competitive operating environment as well as its diverse store
base and liquidity position.

Gap has reported negative comparable store sales for 28 of the
last 31 months.  Most recently, for the holiday period of
December 2006 comparable store sales were down 8%, on top of a
decline of 9% in December 2005.  The weakness is particularly
evident at the company's two largest banners, Gap and Old Navy,
which account for 85% of revenues and is despite the company's
efforts to improve the quality and assortment of the merchandise
and service levels in the stores.

The weak comparable store sales trends have resulted in
continued promotional activity, which, together with efforts to
improve service levels, have resulted in lower operating
margins.  For the latest twelve months ended Oct. 28, 2006 EBIT
margin declined to 8.4% from 12.8% in fiscal year 2004.  Given
the weak holiday sales results, Gap announced a reduction of its
full year 2006 guidance with EBIT margin expected to be about 7%
compared with previous guidance of 10%.  

As a result, Fitch anticipates that credit measures will
deteriorate further from current levels of 2.8x EBITDAR coverage
of interest and rents and 2.9x leverage, measured by total
adjusted debt/EBITDAR, for the latest twelve months ended
Oct. 28, 2006.  Fitch expects that EBITDAR coverage of interest
and rents will fall below 2.5x, and leverage, measured by total
adjusted debt/EBITDAR will increase to over 3.0x.  Also, further
margin deterioration will constrain cash flow generation over
time.

In addition, as a result of the weak comparable store sales
results, the company announced that management and the board of
directors would review Gap's and Old Navy's brand and
merchandising strategies.  However, given the time frame for
implementing and executing on a new strategy, it is not likely
that any meaningful improvement from this review would be
apparent until late 2007 at the earliest.  In addition, while it
is unclear what will be the result of the strategic review, any
capital structure changes could result in a weaker credit
profile for the company given the company's low level of funded
debt.  Nonetheless, Gap's current liquidity position remains
strong, with US$2.4 billion of cash and short term investments
as of Oct. 28, 2006.

                          About Gap Inc.

Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an   
international specialty retailer offering clothing, accessories
and personal care products for men, women, children and babies
under the Gap, Banana Republic, Old Navy, Forth & Towne and
Piperlime brand names.  Gap Inc. operates more than 3,100 stores
in the United States, the United Kingdom, Canada, France,
Ireland and Japan, among others.  In addition, Gap Inc. is
expanding its international presence with franchise agreements
for Gap and Banana Republic in Southeast Asia and the Middle
East.


GAP INC: December Sales Down 4%; Comparable Store Sales Down 8%
---------------------------------------------------------------
Gap Inc. discloses on Jan. 4, 2007, that net sales of
US$2.34 billion for the five-week period ended Dec. 30, 2006,
which represents a 4% percent decrease compared with net sales
of US$2.44 billion for the same period ended Dec. 31, 2005.  The
company's comparable store sales for December 2006 decreased 8%
compared with a 9% decrease in December 2005.

Comparable store sales by division for December 2006 were:

    * Gap North America: negative 9% versus negative 10% last
      year

    * Banana Republic North America: positive 2% versus negative
      5% last year

    * Old Navy North America: negative 10% versus negative 10%
      last year

    * International: negative 8% versus negative 3% last year.

"Although Banana Republic continued to make good progress in its
turnaround, we continued to experience negative traffic trends
at Gap and Old Navy," said Sabrina Simmons, senior vice
president, corporate finance, Gap Inc.  "Given the weak traffic
trends, we needed to take significant action on promotions and
markdowns at these two brands which drove Gap Inc.'s overall
merchandise margins significantly below last year.  We expect
continued margin pressure into January as we work to clear
remaining holiday product at Gap and Old Navy."

Based on its holiday sales performance, the company said that it
is revising its fiscal 2006 guidance.  The company now expects
full-year earnings per share to be US$0.83 to US$0.87 versus
previous guidance of US$1.01 to US$1.06.  Full-year operating
margins are now expected to be about 7% and free cash flow is
now expected to be about US$650 million for the year.

The company reiterated that it expects the percent increase in
inventory per square foot at the end of the fourth quarter of
fiscal 2006 to be in the low-single-digits versus prior year.

"We are clearly disappointed with Gap and Old Navy's holiday
sales and overall performance for the year," said Paul Pressler,
president and CEO, Gap Inc.  "Given that we did not gain the
traction we had expected, the management team, with the active
involvement of our board of directors, is currently reviewing
Gap and Old Navy's brand strategies.  We are committed to making
the necessary changes to improve performance."

Year-to-date net sales of US$14.75 billion for the 48 weeks
ended Dec. 30, 2006, decreased 2% compared with net sales of
US$15.07 billion for the same period ended Dec. 31, 2005.  The
company's year-to-date comparable store sales decreased 7%
compared with a 5% decrease in the prior year.

As of Dec. 30, 2006, Gap Inc. operated 3,184 store locations
compared with 3,126 store locations last year.

                         About Gap Inc.

Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an   
international specialty retailer offering clothing, accessories
and personal care products for men, women, children and babies
under the Gap, Banana Republic, Old Navy, Forth & Towne and
Piperlime brand names.  Gap Inc. operates more than 3,100 stores
in the United States, the United Kingdom, Canada, France,
Ireland and Japan.  In addition, Gap Inc. is expanding its
international presence with franchise agreements for Gap and
Banana Republic in Southeast Asia and the Middle East.

                          *     *     *

Fitch Ratings, on Jan. 9, 2006, has downgraded its ratings on
The Gap, Inc. as:

   -- Issuer Default Rating to 'BB+' from 'BBB-'; and,
   -- Senior unsecured notes to 'BB+' from 'BBB-'.

The Rating Outlook is Negative.  The rating action affects
approximately US$513 million of debt.

As reported in the Troubled Company Reporter on Nov. 21, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured ratings on San Francisco-based The Gap Inc.
to 'BB+' from 'BBB-'.  The outlook is stable.


GAP INC: Earns US$189 Million in Quarter Ended October 28
---------------------------------------------------------
Gap Inc. reported net earnings for the third quarter ended
Oct. 28, 2006, of US$189 million, compared with US$212 million,
for the same period in 2005.

Third quarter net sales were US$3.9 billion, compared with
US$3.9 billion for the same period last year.  Comparable store
sales decreased 5%, compared with a 7% decrease for the same
period last year.

"Our third quarter results reflect that each brand is at a
different stage in its turnaround," said Paul Pressler,
president and CEO.  "We are pleased with the solid performance
at Banana Republic and continued progress each month of the
quarter at Gap brand; however, Old Navy's results were
disappointing.  Heading into the holiday season, our teams are
focused on driving strong execution."

The company disclosed that it ended the third quarter with
US$2.4 billion in cash and short-term investments.  This
represents US$1.9 billion more in cash and investments than
total debt.  For the 39 weeks ended Oct. 28, 2006, free cash
flow was an inflow of US$214 million, compared with an outflow
of US$120 million last year.  The increase was driven primarily
by reductions in working capital.  The company still expects to
generate at least US$800 million in free cash flow in fiscal
2006.

On Aug. 3, 2006, the company's Board of Directors authorized
US$750 million for its share repurchase program in addition to
the US$500 million authorization that was announced at the
beginning of fiscal year 2006.

During the third quarter, the company repurchased 16 million
shares for US$271 million.  As of Nov. 15, 2006, the company has
utilized US$344 million of its US$750 million authorization, for
a total of 20 million shares repurchased.  At the end of the
third quarter, the company's outstanding shares were 822
million.

The company paid a dividend of US$0.08 per share in the third
quarter, compared with a dividend of US$0.045 per share in the
same period last year.

The company reported that inventory per square foot was flat at
the end of the third quarter compared with a 7% decline in the
third quarter of the prior year.  The% increase in inventory per
square foot at the end of the fourth quarter is still expected
to be in the low-single digits, compared with an 11% decrease
last year.

Inventory per square foot at the end of the first quarter of
fiscal 2007 is expected to be flat, compared with a 5% decrease
in the first quarter of the prior year.

The company's growth strategy is to build and expand its brands
through new product categories and through international, online
and real estate growth.  In the third quarter, Banana Republic
continued its expansion in Japan, and the first Gap franchise
stores opened in Singapore and Malaysia.

The company has built a world-class online business, with the
October launch of Piperlime (an online shoe business) being the
most recent example.  An additional 10 new Forth & Towne stores
opened in the third quarter.

Through Oct. 28, 2006, the company opened 160 store locations
and closed 56 store locations.  Net square footage for the third
quarter increased 2% compared to a 3% increase the same period
last year.  For fiscal 2006, the company still expects to open
about 190 store locations and to close about 125 store
locations.  Net square footage is still expected to increase
between 2 and 3% for fiscal 2006.

                          About Gap Inc.

Gap Inc. -- http://www.gapinc.com/-- is an international  
specialty retailer offering clothing, accessories and personal
care products for men, women, children and babies under the Gap,
Banana Republic, Old Navy, Forth & Towne and Piperlime brand
names.  Gap Inc. operates more than 3,100 stores in the United
States, the United Kingdom, Canada, France, Ireland and Japan.  
In addition, Gap Inc. is expanding its international presence
with franchise agreements for Gap and Banana Republic in
Southeast Asia and the Middle East.

                          *     *     *

Fitch Ratings, on Jan. 9, 2006, has downgraded its ratings on
The Gap, Inc. as:

   -- Issuer Default Rating to 'BB+' from 'BBB-'; and,
   -- Senior unsecured notes to 'BB+' from 'BBB-'.

The Rating Outlook is Negative.  The rating action affects
approximately US$513 million of debt.

As reported in the Troubled Company Reporter on Nov. 21, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured ratings on San Francisco-based The Gap Inc.
to 'BB+' from 'BBB-'.  The outlook is stable.


JAPAN AIRLINES: Considers Slashing 3,000 Jobs in 2-3 Years
----------------------------------------------------------
Japan Airlines Co. Ltd is considering cutting some 3,000 jobs
over the next two to three years through an early retirement
program, AFX News Limited, citing the Mainichi Shimbun.

As a first step, Japan Air aims to cut more than 1,000 jobs
through an early retirement offering in the year to March 2008,
the report notes.

AFX relates that Japan Air is expected to include the job
reduction in a new turnaround plan to be released on Feb. 6,
2006.

                      About Japan Airlines

Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger  
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  Japan Airlines flies to the United States, Brazil and
France.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
October 10, 2006, that Moody's Investors Service affirmed its
Ba3 long-term debt ratings and issuer ratings for both Japan
Airlines International Co., Ltd and Japan Airlines Domestic Co.,
Ltd.  The rating affirmation is in response to the planned
restructuring of the Japan Airlines Corporation group on Oct. 1,
2006 with the completion of the merger of JAL's two operating
subsidiaries, JAL International and Japan Airlines Domestic.
JAL International will be the surviving company.  The rating
outlook is stable.

Meanwhile, Fitch Ratings Tokyo analyst Satoru Aoyama said that
the company's debt obligations and expenses for new aircraft
have placed it in an unfavorable financial position.  Fitch
assigned a BB- rating on the Company, which is three notches
lower than investment grade.

On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt ratings on the Company.


JAPAN AIRLINES: Reveals New Year Vacation Period Traffic Results
----------------------------------------------------------------
Japan Airlines Group revealed the results for the Japanese "New
Year" vacation period, from December 28, 2006, to January 8,
2007.  The total number of passengers traveling on JAL Group
international and domestic passenger routes was marginally up on
the same vacation period last year.

Internationally, JAL recorded a large jump in the number of
passengers traveling from Japan to China, up nearly 31% on the
same period of the previous New Year. The airline also saw a
moderate increase in the number of passengers traveling from
Japan to Korea and Southeast Asia: up respectively by 3.3%, and
5.6%.

Overall international seat capacity was 3.7% down on the same
period last year following network restructuring, notably on
transpacific routes.

The JAL Group operated an additional 100 flights, both scheduled
and charter, to such resort destinations as Guam, Hawaii, Palau
and Macau.

JAL Group's average international seat load factor was 77.2%, up
approximately 2 points on the same period last year.

A total of 1,538,766 passengers traveled domestically within
Japan on JAL Group airlines, nearly 1% up on last year.  JAL
Group operated an additional 44 flights to meet demand on
popular domestic routes.

Domestic Japan seat load factor was 66.2%, up around 2.1 points
on the same period last year.

Extreme weather conditions that affected Japan over the vacation
period, including strong winds and heavy snowfalls, led to the
cancellation of 152 flights on domestic routes and 27 flights on
international routes.

For complete details, please visit the JAL Web site at
http://www.jal.com/en/press/0000801/801.html

                      About Japan Airlines

Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger  
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  Japan Airlines flies to the United States, Brazil and
France.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
October 10, 2006, that Moody's Investors Service affirmed its
Ba3 long-term debt ratings and issuer ratings for both Japan
Airlines International Co., Ltd and Japan Airlines Domestic Co.,
Ltd.  The rating affirmation is in response to the planned
restructuring of the Japan Airlines Corporation group on Oct. 1,
2006 with the completion of the merger of JAL's two operating
subsidiaries, JAL International and Japan Airlines Domestic.
JAL International will be the surviving company.  The rating
outlook is stable.

Meanwhile, Fitch Ratings Tokyo analyst Satoru Aoyama said that
the company's debt obligations and expenses for new aircraft
have placed it in an unfavorable financial position.  Fitch
assigned a BB- rating on the Company, which is three notches
lower than investment grade.

On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt ratings on the Company.


XEROX CORP: Names John McDermott Chief Information Officer
----------------------------------------------------------
John McDermott has been named chief information officer of Xerox
Corp.  Mr. McDermott was previously vice president, corporate
strategy and alliances for Xerox.

As CIO, Mr. McDermott is responsible for Xerox's business
information systems including managing the company's global
information technology infrastructure and telecommunications.

Mr. McDermott joined Xerox in August 2002 as head of strategy,
responsible for leading strategic management processes and
development activities as well as the company's relationship
with alliance partners and with Fuji Xerox Co. Ltd.

Prior to joining Xerox, Mr. McDermott led the technology
practice for the consulting firm of Marakon Associates, where,
in addition to his advisory roles with large information
technology clients, he served as Marakon's chief information
officer.

Mr. McDermott's appointment is effective immediately.  He
reports to Ursula Burns, president of Xerox Business Group
Operations.  Mr. McDermott replaces Patricia Cusick, who retired
from Xerox last year.

A resident of Ridgefield, Conn., Mr. McDermott holds a
bachelor's degree from Hampshire College and a master's degree
in business administration from Yale University.

Headquartered in Stamford, Connecticut, Xerox Corporation
(NYSE: XRX) -- http://www.xerox.com-- develops, manufactures,  
markets, services, and finances document equipment, software,
solutions, and services worldwide.  It offers digital monochrome
and color systems for customers in the graphic communications
industry and enterprises, as well as various prepress and post-
press options.  Xerox Corporation markets its products through
direct sales force, as well as through a network of independent
agents, dealers, value-added resellers, and systems integrators.
The company has operations in Japan, Italy and Nicaragua.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 1, 2006,
Moody's raised these ratings on Xerox Corp:

   -- Senior unsecured to Baa3 from Ba1;

   -- Senior unsecured shelf registration to (P) Baa3 from
      (P) Ba1;

   -- Trust preferred to Ba1 from Ba2;

   -- Subordinated shelf registration to (P) Ba1 from (P) Ba2;
      and

   -- Preferred shelf registration to (P) Ba1 from (P) Ba2.

   Xerox Credit Corp.

   -- Senior unsecured to Baa3 from Ba1 (support agreement from
      Xerox Corporation).


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

ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition
----------------------------------------------------------------
Fitch Ratings expects that Arrow Electronics Inc.'s proposed
acquisition of Agilysys Keylink Systems Group for US$485 million
in cash will not affect the company's ratings or Positive Rating
Outlook.  

However, Fitch believes further meaningful debt-financed
acquisitions could result in a revision of Arrow's Rating
Outlook to Stable or negative rating actions.

Fitch currently rates Arrow as:

   -- Issuer Default Rating of BB+;
   -- Senior unsecured notes of BB+; and
   -- Senior unsecured bank credit Facility of BB+.

Arrow recently announced that it has entered into a definitive
agreement to acquire substantially all the assets of Keylink, a
leading enterprise and computing solutions distributor, from
Agilysys Inc. for US$485 million in cash.  Simultaneously, Arrow
entered into a long-term procurement agreement with Agilysis'
value-added reseller business.

With approximately US$1.6 billion of sales for calendar year
2006, pro forma for the Agilysis procurement agreement, Fitch
believes the proposed acquisition will consolidate Arrow's
already leading position in distributing enterprise computing
solutions, and strengthen Arrow's exposure to Keylink's leading
suppliers, International Business Machines and Hewlett Packard.

In addition, Arrow expects Keylink to generate approximately
5.5%-6.0% operating EBIT margins in 2007, including expectations
for modest cost reductions, which would be accretive to Arrow's
corporate-wide profitability, which Fitch estimates was at 4.7%
for the latest 12 months ended Sept. 30, 2006.

While recognizing these anticipated positives, this transaction,
if consummated, would be Arrow's fifth acquisition over the past
year and the first to be debt-financed.  Including expectations
for positive free cash flow for the fourth quarter ended
Dec. 31, 2006, but with just US$253 million of cash and cash
equivalents as of Sept. 30, 2006, Fitch expects Arrow will fund
the majority of the purchase price with either its US$600
million senior unsecured revolving credit facility expiring
June 2010 and/or US$550 million accounts receivable
securitization facility expiring February 2008, both of which
were undrawn as of Sept. 30, 2006.

Nonetheless, even assuming the transaction is fully funded with
borrowings under these facilities, total debt adjusted for rent
expense to operating EBITDAR will remain below 3.0 times.  Fitch
believes that Arrow will continue to pursue acquisition
opportunities, mainly in the more fragmented global enterprise
computing market, which, depending on materiality, could
pressure Fitch's Positive Rating Outlook in the future.

                          *     *     *

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- is a global provider of products,  
services and solutions to industrial and commercial users of
electronic components and computer products.  Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories.  In Asia Pacific, the
company operates in Australia, China, Hong Kong, India,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Korea.


ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mil.
----------------------------------------------------------------
Arrow Electronics Inc. has signed a definitive agreement
pursuant to which Arrow will acquire substantially all of the
assets and operations of the Agilysys KeyLink Systems Group for
US$485 million in cash.  

Arrow will also enter into a long-term procurement agreement
with the Agilysys Enterprise Solutions Group, Agilysys' value-
added reseller business.

Based in Cleveland, Ohio, KeyLink is a leading value-added
distributor of enterprise servers, storage and software in the
United States and Canada.  Through approximately 500 employees,
KeyLink provides complex solutions from industry leading
manufacturers to more than 800 reseller partners.  Pro forma
sales for the 2006 calendar year are expected to be
approximately US$1.6 billion, which include revenues that will
be associated with the above-mentioned procurement agreement.

"With this acquisition, we will become the leading distributor
of enterprise products for both International Business Machines
Corp. and Hewlett Packard Company, as well as the leading value-
added distributor of storage and software," stated William E.  
Mitchell, Chairman, President and Chief Executive Officer of
Arrow Electronics, Inc.  "Keylink is a natural complement to our
existing enterprise computing solutions business with its value-
added approach and its resellers' focus on small and medium
sized customers."

"Our partnership will create significant cross selling
opportunities to further accelerate our growth in the global
enterprise computing solutions distribution market," stated M.
Catherine Morris, president, Arrow Enterprise Computing
Solutions.  All field sales positions will remain intact to
ensure that we will continue to provide our customers and
suppliers with superior levels of service."

"We believe KeyLink will further benefit from Arrow's
considerable global scale, vast customer base, strong financial
resources and leadership in the technology distribution market,"
said Arthur Rhein, chairman, president and chief executive
officer of Agilysys.  "As a result of this transaction, both
Agilysys and Keylink will be better positioned to achieve their
full potential as Agilysys focuses solely on growing its
information technology solutions business.  We wish Arrow well
as they continue to grow their business," added Mr. Rhein.

"The acquisition is expected to be US$0.18 to US$0.22 accretive
in the first 12 months and will further strengthen our industry
leading return on invested capital, while generating an expected
US$30 million in operating cash flow annually," added Paul J.
Reilly, senior vice president and chief financial officer of
Arrow Electronics, Inc.

The transaction, which will be funded with cash-on-hand plus
borrowings under Arrow's existing committed liquidity
facilities, is subject to customary closing conditions,
including obtaining the necessary government approvals, and is
expected to be completed within 90 days.  Goldman, Sachs & Co.  
acted as financial advisor and Milbank, Tweed, Hadley & McCloy
LLP acted as legal counsel to Arrow in connection with this
transaction.

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- is a global provider of products,  
services and solutions to industrial and commercial users of
electronic components and computer products.  Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories.  In Asia Pacific, the
company operates in Australia, China, Hong Kong, India,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Korea.

                          *     *     *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.  
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  The rating
outlook is positive


ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops
--------------------------------------------------------------
Arrow Electronics Inc. has completed its previously disclosed
acquisition of the storage and security distribution business of
InTechnology plc for a purchase price of around US$80 million.

"The acquisition of InTechnology's storage and security
distribution business enables us to further expand our
Enterprise Computing Solutions business into the United Kingdom,
Europe's second largest IT market," stated M. Cathy Morris,
president, Arrow Enterprise Computing Solutions.  "We expect
this transaction to create further opportunities for us in the
growing storage and security software markets.  We expect this
transaction to be US$.02 to US$.04 accretive in 2007."

InTechnology Distribution, which is headquartered in Harrogate,
England and has approximately 200 employees, delivers storage
and security solutions to value-added resellers in the United
Kingdom.  Total 2006 sales are expected to exceed US$400
million.

"The addition of InTechnology's storage and security
distribution business is a key strategic step towards our goal
of becoming the preeminent provider of enterprise computing
solutions in Europe," stated Kurt Schoeffer, managing director,
DNS. "This transaction will enable us to provide a more
comprehensive suite of solutions for our reseller customers,"
added Steve Pearce, chief operating officer, InTechnology plc.

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- is a global provider of products,  
services and solutions to industrial and commercial users of
electronic components and computer products.  Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories.  In Asia Pacific, the
company operates in Australia, China, Hong Kong, India,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Korea.

                          *     *     *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.  
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  The rating
outlook is positive


HYNIX SEMICONDUCTOR: To Mass-Produce Improved Memory Chips
----------------------------------------------------------
Hynix Semiconductor Inc., as well as rival Samsung Electronics,
plan to mass-produce drastically improved computer memory chips
this year using the 60-nano technology, The Korea Times reports,
citing industry sources.

Currently, The Times notes, the two companies produce dynamic
random access memory chips based on 80-nano and 90-nano
technologies.

A nanometer is the basic unit of electric wires of microcircuit
inside the semiconductor chips.  The smaller the number is, the
greater the density of the chip can be increased.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 19, 2006, Hynix Semiconductor claimed it has developed the
fastest memory chip for personal computers using a 60-nano
engraving technique.

According to The Times' sources, Hynix will likely begin
producing the improved chips in May while Samsung is expected to
start production as early as March.

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.    
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.


NACF: US$250-Mil. Senior Unsecured Notes Gets S&P's 'A-' Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'A-' rating to
the proposed five-year US$250 million senior unsecured notes to
be issued by Korea's National Agricultural Cooperative
Federation (NACF; A-/Stable/A-2).  The notes are to be drawn
down from a US$2.5 billion global medium term note program.

"Due to the strong likelihood of support from the Korean
government, fluctuation in NACF's fundamental financial profile
is not as likely to affect the credit ratings on the federation
as much as it would for most rated commercial banks in Korea,"
said Standard & Poor's credit analyst YuMee Oh.

The federation generates most of its profits from its banking
operations, the third largest in Korea.  It uses a portion of
its profits to pay for educational programs and to promote the
Korean agriculture and livestock industries.  NACF's diverse
services for the agricultural industry help it to maintain its
good reputation.  Its geographically diverse branch network and
the treasury functions it performs for local governments
increases the stability of its funding.

Standard & Poor's expects the government would have a relatively
high level of motivation to support NACF should it encounter any
financial difficulty, due to its political and economic
importance to the Korean agricultural industry.  However, the
government's legal obligations to NACF are not as concrete as
those on Korea Development Bank (A/Stable/A-1) or Export-Import
Bank of Korea (A/Stable/A-1), which are 100%-government owned
and have explicit positive net worth maintenance clauses.

The stable outlook reflects expectations that the financial
profile of NACF will not deteriorate significantly, although
some concerns exist over lending to the small-to-midsize
enterprise sector.  

                          *     *     *

NACF or National Agricultural Cooperative Federation --
http://www.nonghyup.com/-- and its member cooperatives were  
established in 1961 to enhance the social and economic status of
member farmers and balance the development of the national
economy.  It operates under the directive of the Ministry of
Agriculture & Forestry but its banking business operates under
the Banking Act of Korea.  The Cooperatives main business
activity is the provision of specializes agricultural and
commercial credit and banking services.  

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 9, 2006, Moody's Investors Service maintained NACF's 'D-'
Bank Financial Strength Rating.


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

EKRAN BERHAD: Appeals Bourse Rejection on Extension Request
-----------------------------------------------------------
Ekran Bhd appeals the Bursa Malaysia Securities Bhd's decision
denying the company's request to extend the deadline to submit
its regularization plan to relevant authorities until July 7,
2007.

Pending the decision of the appeal, suspension of Ekran Bhd's
securities and commencement of delisting will be deferred, the
company says.

EKRAN, however, submitted the rationalization/recovery plan and
its application for the upliftment from Amended PN17 status to
the bourse on Dec. 29, 2006.

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

                          *     *     *

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

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

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


EKRAN BERHAD: Plans to Sell 138 Wooden Houses for MYR13.8 Mil.
--------------------------------------------------------------
Ekran Berhad filed before the Malaysia Securities Bhd a proposal
to dispose 138 units of wooden houses to Ayusar Sdn Bhd for
MYR13.8 million cash aggregate.

According to the company, the deal was arrived at on a willing-
buyer willing-seller basis after taking into consideration the
prevailing market value of the properties.  A valuation report
compiled by HASB Consultants (Sarawak) Sdn Bhd on the property
shows a market value of MYR13.8 million and an auction sale
price of MYR11 million.

The original cost of the property was RM19.8 million and was
constructed in 1994.  As of Nov. 30, 2006, net book value is
approximately MYR4.8 million.  The company's expected gain
arising from the proposed disposal is approximately
MYR9 million.

                   Salient Features of the SPA

The sale and purchase of the property will subject to the
fulfillment of these conditions:

a. a first sum of MYR1,380,000 -- which is equivalent to 10% of
   the consideration -- will be paid as deposit and part payment
   of the consideration upon execution of the SPA;

b. a balance sum of MYR12,420,000 will be paid within three
   months from the date of the SPA to the Vendor's solicitors/
   purchaser's solicitors who will hold the balance as
   stakeholders and the same will only be paid to the vendor
   upon the acceptance for registration of the  Memorandum of
   Transfer, as per clauses in the SPA, by the relevant Land
   Registry Office.

The MYR13.8-million proceeds of the property will be used by the
company to settle its debts with Affin Bank.

                          *     *     *

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

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

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


EKRAN BERHAD: Approves All Resolutions for AGM
----------------------------------------------
Ekran Berhad informed the Bursa Malaysia Securities Bhd that it
had duly passed all resolutions for approval during the
company's annual general meeting held on Dec. 28, 2006.

As reported by the Troubled Company Reporter - Asia Pacific, on
December 14, 2006, the company passed these resolutions for
approval:  

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

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

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

         -- Datuk William Lau Kung Hui; and

         -- Dato' Stanley Isaacs;

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

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

         Ordinary Resolution:  

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

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

                          *     *     *

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

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

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


ELBA HOLDINGS: Faces Possible Delisting of Securities
-----------------------------------------------------
Elba Holdings Bhd failed to submit its regularization plan to
relevant authorities for approval on Jan. 7, 2007.

Accordingly, the company had been notified to make a written
representation within five market days starting Jan. 9,
explaining why its securities should not be removed from the
Bursa Malaysia Securities Bhd's official list of securities.

However, the company disclosed that it has no viable
regularization plan under consideration and hence will not be
making any written representations within the accorded five
market days.

                          *     *     *

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

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

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


FOAMEX INT'L: Launches Rights Offering to Complete Reform
---------------------------------------------------------
Foamex International Inc. commenced its equity rights offering
to raise the equity funding necessary for the company to
consummate its chapter 11 plan of reorganization.

A hearing before the U.S. Bankruptcy Court for the District of
Delaware to consider confirmation of the company's plan of
reorganization is scheduled for Feb. 1, 2007.

Under the rights offering, Foamex is distributing to each holder
of record of its common stock as of the close of business on
Dec. 29, 2006, at no charge, one right for each share of common
stock held by such holder on that date.  Each right entitles the
holder to purchase an additional 2.506 shares of Foamex common
stock at US$2.25 per share.  The company is also distributing to
the holder of its Series B preferred stock, at no charge, one
right for each share of Series B preferred stock (which is
convertible into 100 shares of Foamex common stock) held of
record as of the close of business on Dec. 29, 2006.  Each right
issued to the holder of Series B preferred stock entitles the
holder to purchase an additional 250.6 shares of Foamex common
stock at US$2.25 per share.  The rights expire at 5:00 p.m., New
York City time, on Jan. 31, 2007, unless the company extends the
exercise period.

The rights offering materials, including a prospectus, will be
mailed to eligible record holders of the company's common and
Series B preferred stock on Jan. 4, 2007.  Those eligible record
holders that hold their shares through a bank, brokerage firm,
or other nominee should receive the rights offering materials
from their bank, broker, or nominee.

A copy of the prospectus relating to the rights offering also
may be obtained from:

     Investor Relations Department
     Foamex International Inc.
     1000 Columbia Avenue
     Linwood, Pennsylvania 19061
     Telephone (610) 859-3000

or the Securities and Exchange Commission's web site at
http://www.sec.gov/

Information about Foamex's reorganization case is available on
the Foamex web site at http://www.foamex.com/restructuring/

                          *     *     *

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

The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).  Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.  
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.  
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors.  As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts.  (Foamex International Bankruptcy News, Issue No. 34;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


PROTON HOLDINGS: Malaysia Government Prefers Foreign Bidders
------------------------------------------------------------
The Malaysian government will set aside bids by local auto firms
to acquire stakes in Proton Holdings Berhad, instead first
choosing German Volkswagen AG or French PSA Peugeot Citroen as a
partner, Forbes says citing a report from The Edge.

According to The Edge's unnamed sources, the government had
reaffirmed its commitment to the European companies despite
attempts by Malaysian auto firms to acquire stakes in the ailing
national carmaker.

"The assurance came as VW and PSA are confused by the lobbying
efforts of the local automotive groups, whether through
government channels or the media, and have asked for
clarification from the government," a source was quoted as
saying.

The Edge said a decision would be made by the end of March on a
foreign partner for Proton, with bids by Malaysian companies to
be considered after that.

The government, through various agencies, owns 59% of Proton
shares, including a 43% stake held by its investment arm,
Khazanah Nasional.

According to Forbes, three Malaysian automotive companies --
DRB-HICOM, the Naza group and the Mofaz group -- have expressed
interest in acquiring all or part of the government's stake.

Meanwhile, according to The Edge, discussions with Volkswagen
and Peugeot were "fruitful", but that proposals for
collaboration differed.

Volkswagen reportedly intended to acquire a controlling stake in
Proton's manufacturing division, which the weekly said could see
Proton turn into a manufacturing hub for the German firm, while
improving capability.

Peugeot was more inclined towards a relationship, which would
preserve Proton's identity, while collaborating on cheaper
models for export regionally, with a controlling stake less of a
priority, the paper said.

                          *     *     *

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

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

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


PROTON HOLDINGS: Former PM Says Car-Maker Needs New Management
--------------------------------------------------------------
Proton Holdings Bhd should bring in new management to help turn
around the loss-making firm, Reuters reports citing a statement
from former Prime Minister Mahathir Mohamad.

"What I'm sure is, if it stays under the present management,
it's going to go downhill because people are resigning, most of
the engineers are not there," the news agency quoted Dr.
Mahathir as saying.  "It's quite obvious that this management
has destroyed Proton completely," he added.

Dr. Mahathir remains a state-appointed adviser to Proton despite
becoming a staunch critic of the government, Reuters notes.

Proton spokeswoman Faridah Idris failed to comment as she was on
leave, the paper relates.

                          *     *     *

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

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

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


PSC INDUSTRIES: Updates on Default Status
-----------------------------------------
PSC Industries Bhd informed the Bursa Malaysia Securities Bhd on
Dec. 29, 2006, that in relation to default in the company's
payment of loans there is no change to the status except for:

1. Bank Islam Malaysia Berhad - Kuala Lumpur High Court Suit
   No. D4-22A-153-2005.

      On July 20, 2006, the Company announced that the Deputy
      Registrar of Kuala Lumpur High Court had allowed the
      Plaintiff's application for summary judgement with cost
      against the Company for the sum of MYR14,889,360.59, under
      term loan & revolving credit facilities provided to the
      Company.

      Notice of Appeal has been filed against the said decision.  
      Following the hearing on Dec. 8, 2006, the Court has
      adjourned the decision on the Appeal to a later date to be
      notified.

2. Bank Islam Malaysia Berhad - Kuala Lumpur High Court Suit
   No. D4-22A-223-2005.

      On July 20, 2006, the Company announced that the Deputy
      Registrar of Kuala Lumpur High Court had allowed the
      Plaintiff's application for summary judgement with cost
      against the Company for the sum of RM12,735,066.51 (as at
      Nov. 18, 2005), under Al Naqad, Al Bai Bithaman Ajil and
      Murrabahah working capital financing facilities provided
      to the Company.

      Notice of Appeal has been filed against the said decision.  
      Following the hearing on Dec. 8, 2006, the Court has
      adjourned the decision on the Appeal to a later date to be
      notified.

PSC Industries Berhad's principal activities are shipbuilding
and ship repairing.  It is also involved in heavy engineering
construction, provision of shipping management services,
manufacturing of aluminum fast passenger sea ferries, supplies
equipment and machineries, marketing and distributing Exocet
Weapon system, manufacturing of confectioneries, snack food and
related products, general trading, power plant construction and
its support activities, printing, property development, and
property and investment holding.  The PSC Group operates in
Malaysia, Australia and the Republic of Ghana.

The Company is currently formulating a regularization plan
pursuant to Practice Note 17/2005 of the Bursa Malaysia
Securities Berhad's Listing Requirements.  

As of March 31, 2006, the Company's balance sheet showed
MYR212,330,000 in total assets and MYR677,272,000 in total
liabilities, resulting in a MYR464,942,000 stockholders'
deficit.


SETEGAP BERHAD: SC Gives Final Extension to Disposal of Assets
--------------------------------------------------------------
Malaysia's Securities Commission approved Setegap Bhd's
application to extend the time to complete the implementation of
the company's proposed disposal of landed properties in
Damansara and Serdang.

The extension will expire on June 28, 2007.

The SC, however, warned that it is the final extension it will
grant to the company.  Further application for extension will be
turned down, the SC said.

                          *     *     *

Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying.  The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix.  The Group also
provides mechanical and electrical services, leases machinery
and investment holding.

Setegap's cash flow and profitability were affected by the Asian
financial crisis in 1997/98.

As of September 30, 2006, Setegap's balance sheet showed
solvency problems with total assets of MYR71.40 million and
total liabilities of MYR190.92 million.  Shareholders' deficit
reached MYR119.52 million.


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

DENNY'S CORP: Reports December Same-Store Sales
-----------------------------------------------
Denny's Corp. reported same-store sales for its company-owned
Denny's restaurants during the five-week month ended Dec. 27,
2006, compared with the related period in fiscal year 2005.

Sales:               Dec. 2006         4Q-2006          2006

Same-Store Sales       1.0%            1.6%            2.5%
Guest Check Average    2.2%            1.9%            4.4%
Guest Counts          (1.2%)          (0.3%)          (1.8%)

Restaurant Counts:          12/27/06            12/28/05

Company-Owned                  521                 543
Franchised and Licensed      1,024               1,035
                             1,545               1,578

As part of a plan to strengthen the company's restaurant
portfolio, Denny's opened two new company-owned restaurants in
December, one in Fresno, California and the other in Orlando,
Florida.  Also as part of this long-term strategy, Denny's
closed 16 underperforming company
restaurants in the fourth quarter.

During 2006, Denny's reduced its outstanding indebtedness by
approximately US$100 million, or 18%, including US$16 million in
prepayments in the fourth quarter through a combination of asset
sale proceeds and operating cash flow.

Beginning with the first quarter of Denny's 2007 fiscal year,
the company plans to release same-store sales information on a
quarterly basis only.  Denny's expects to release same-store
sales results for the first quarter of 2007 in early April.

F. Mark Wolfinger, Executive Vice President, Growth Initiatives
and Chief Financial Officer, stated, "Based on Denny's positive
same store sales results over the last four years, the company's
strengthened balance sheet and improved cash flow, we believe
the prudent decision is to discontinue the reporting of monthly
same-store sales at this time.  We do not believe that monthly
sales results truly assess the ongoing progress Denny's is
making in its efforts to increase shareholder value over the
long-term."

On Feb. 15, 2007, Denny's expects to release results for its
fourth quarter and year ended Dec. 27, 2006, as well as provide
its strategic and operational outlook for 2007.

                        About Denny's Corp.

Headquartered in Spartanburg, South Carolina, Denny's Corp. --
http://www.dennys.com/-- is America's largest full-service  
family restaurant chain, consisting of 543 company-owned units
and 1,035 franchised and licensed units, with operations in the
United States, Canada, Costa Rica, Guam, Mexico, Puerto Rico,
and New Zealand .

                          *     *     *

On Nov 22, 2006, Moody's Investors Service assigned Denny's
Inc.'s proposed US$350 million senior secured credit facility
consisting of a US$50 million revolver, a US$260 million term
loan B and a US$40 million synthetic letter of credit facility.

At June 28, 2006, Denny's Corporation's balance sheet showed
US$500.3 million in total assets and US$758.2 million in total
liabilities, resulting in a US$257.9 million stockholders'
deficit.


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

ATLAS CONSOLIDATED: Sets Special Stockholders Meeting for Feb. 9
----------------------------------------------------------------
Atlas Consolidated Mining and Development informs the Philippine
Stock Exchange that a Special Stockholders' Meeting will be held
on February 9, 2007, at 10:00 a.m., at the Legend Villa Hotel,
in Pioneer St., Mandaluyong City.

The company's Board of Directors has fixed Jan. 4, 2007, 12:00
noon, as the record date for the determination of stockholders
entitled to a notice of and to vote at the meeting.

                    About Atlas Consolidated

Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano-
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company.  The Company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products.  The
Company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located.  The Cebu copper
mine ceased operations in 1994.  Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite.  The closure has brought huge
losses to the mining firm.

In January 2004, Atlas decided to rehabilitate its assets since
copper and nickel prices have recovered.

According to a TCR-AP report on June 1, 2006, Atlas reported a
capital deficiency of PHP3.035 billion for the year ended
December 31, 2005.  Moreover the Company's auditor, Jaime F. Del
Rosario, of Sycip Gorres Velayo, raised substantial doubt on the
Company's ability to continue as a going concern.

As of Dec. 21, 2006, Atlas Consolidated posted total assets of
US$33.59 million, and total shareholders' equity deficit of
US$57.17 million.


CLIENTLOGIC CORP: Moody's Lifts Corporate Family Rating to B2
-------------------------------------------------------------
Moody's Investors Service upgraded ClientLogic Corp.'s corporate
family rating to B2 from B3.  The rating outlook is stable.

Concurrently, Moody's has assigned a B2 rating to ClientLogic's
US$675-million first lien term loan and US$85-million undrawn
first lien revolving credit facility.  

Proceeds of the current offering will be applied towards the
financing of ClientLogic's proposed merger with SITEL Corp. for
approximately US$440 million in total implied enterprise value
of which approximately US$327 million represents the equity
purchase price.  The transaction is expected to close at the end
of January 2007.  This concludes a review for possible upgrade
initiated in Dec. 2006 following the company's announcement of
its revised plan to merge with SITEL Corporation and SITEL's
recent return to filing timely financial statements with the
SEC.

The upgrade reflects the increased scale that ClientLogic will
have once combined with SITEL as well as the favorable outlook
of the call center outsourcing industry.  The B2 corporate
family rating reflects the substantial risks associated with a
merger of this size, modest free cash flow, sizeable financial
leverage as measured by free cash flow to debt, and moderate
client concentration.  Mitigating these risks is the company's
position as the second largest provider within the highly
competitive call center outsourcing industry and projected cost
savings and synergies expected with the merger

Ratings/assessments:

   -- Corporate family rating -- B2

   -- Probability of default rating -- B3

   -- US$85-million first lien revolving credit facility -- B2,
      LGD-3, 35%

   -- US$675-million first lien term loan -- B2, LGD-3, 35%

ClientLogic Corp. -- http://www.clientlogic.com/-- is a  
business process outsourcing provider in the customer care and
back office processing industries.  ClientLogic's footprint
spans 49 facilities, including in the Philippines, United
Kingdom, United States.


CLIENTLOGIC CORP: S&P Lifts Corporate Credit Rating to B+ from B
----------------------------------------------------------------
Standard & Poor's Rating Services reported that it upgraded its
corporate credit rating on Nashville, Tennessee-based
ClientLogic Corp. to 'B+' from 'B', and removed the ratings from
CreditWatch with positive implications where they were placed on
Oct. 20, 2006.

The outlook is stable.

At the same time, Standard & Poor's assigned a 'B+' rating, the
same as the corporate credit rating, and a recovery rating of
'2' to the company's proposed first lien loan of $760 million.  
The '2' recovery rating on the first lien indicates expectations
for substantial recovery of principal in the event of a payment
default.  Proceeds of the $675 million term loan, in conjunction
with $57 million in equity roll over, will be used to fund the
acquisition of SITEL and to refinance ClientLogic's existing
debt.

"The ratings reflect ClientLogic's uneven performance operating
in a niche oriented and very competitive market, the risk of a
lengthy integration process, as well as high leverage," said
Standard & Poor's credit analyst Stephanie Crane Mergenthaler.

These factors somewhat are offset by increased scale as a result
of the SITEL acquisition, and a diversified blue-chip customer
list and global end markets.

ClientLogic provides outsourced customer-care and fulfillment
services, through its customer contact centers and distribution
warehouses located across the globe.  Many of these services
help ClientLogic's customers manage call volume and customer
service issues through call centers.  SITEL, whose revenue
reached US$1 billion in 2005, is a close competitor to
ClientLogic in
the customer care industry.  The union of these two companies
should significantly increase market share and scale, as sales
are more than two times, placing the combined company in second
place within the customer care outsourcing market.  The
acquisition will also create a much more diversified customer
base across a wide assortment of end markets with a global
footprint.

ClientLogic Corp. -- http://www.clientlogic.com/-- is a  
business process outsourcing provider in the customer care and
back office processing industries.  ClientLogic's footprint
spans 49 facilities, including in the Philippines, United
Kingdom, United States.


CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp.
----------------------------------------------------------
SITEL Corp. and ClientLogic Corp. have entered into an amendment
to the previously announced Agreement and Plan of Merger among
SITEL, ClientLogic and Stagecoach Acquisition Corporation, dated
Oct. 12, 2006.

Under the terms of the amendment, SITEL stockholders will
receive US$4.25 in cash for each outstanding share of common
stock of SITEL held, which represents an increase of US$0.20 per
share in cash from the price of US$4.05 per share in cash
previously agreed with ClientLogic.

The Board of Directors of SITEL has unanimously approved the
amendment to the Merger Agreement.  The transaction will be
completed in the first quarter of 2007 and remains subject to
customary closing conditions, including the approval of SITEL's
stockholders.

On Dec. 6, 2006, prior to SITEL entering into the amendment with
ClientLogic, The Gores Group, LLC and The Calgary Group, LLC and
Jefferies Capital Partners IV LLC revised their previously
announced proposal to acquire all of the outstanding shares of
common stock of SITEL to lower the proposed price of US$4.50 to
US$4.25 per share in cash.

The amendment with ClientLogic required SITEL to terminate the
existing discussions with Gores/Calgary/Jefferies although it
continues to permit SITEL to respond to additional proposals
from third parties in the event the Board of Directors of SITEL
determines in good faith after considering advice from its
outside advisors that failure to do so would be inconsistent
with its fiduciary obligations.

In addition, the amendment increases the expense reimbursement
portion of the amount payable by SITEL upon termination of the
Merger Agreement in circumstances involving an alternative
acquisition proposal by US$1 million.

In connection with the proposed merger with ClientLogic, SITEL
has set Jan. 12, 2007, as the date of its 2006 Annual Meeting of
Stockholders atwhich SITEL will seek, among other things,
stockholder approval of the Merger Agreement, as amended.  
Holders of record of SITEL common stock as of 5:00 p.m., New
York time, on Dec. 5, 2006, will be entitled to vote at the
meeting.  The meeting will be held at the Marriott Regency
hotel, 10220 Regency Circle, in Omaha, Nebraska.

The US$4.25 to be paid in cash in the merger for each SITEL
share represents an approximate 37.5% premium over the volume-
weighted average closing price of SITEL common stock on the New
York Stock Exchange for the thirty days prior to the public
announcement of the execution and delivery of the Merger
Agreement.

                        About ClientLogic

ClientLogic Corp. -- http://www.clientlogic.com/-- is a  
business process outsourcing provider in the customer care and
back office processing industries.  ClientLogic's footprint
spans 49 facilities including in the Philippines, United
Kingdom, United States.

                          *     *     *

On Jan. 7, 2007, Moody's Investors Service upgraded ClientLogic
Corp.'s corporate family rating to B2 from B3.  The rating
outlook is stable.  Concurrently, Moody's has assigned a B2
rating to ClientLogic's US$675-million first lien term loan and
US$85-million undrawn first lien revolving credit facility.  

Standard & Poor's Rating Services upgraded its corporate credit
rating on ClientLogic to 'B+' from 'B', and removed the ratings
from CreditWatch with positive implications where they were
placed on Oct. 20, 2006.

The outlook is stable.

At the same time, Standard & Poor's assigned a 'B+' rating, the
same as the corporate credit rating, and a recovery rating of
'2' to the company's proposed first lien loan of US$760 million.  
The '2' recovery rating on the first lien indicates expectations
for substantial recovery of principal in the event of a payment
default.  Proceeds of the US$675 million term loan, in
conjunction with US$57 million in equity roll over, will be used
to fund the acquisition of SITEL and to refinance ClientLogic's
existing debt.


DEVELOPMENT BANK: Grants PHP410-Mil. Loan to Batangas Hospital
--------------------------------------------------------------
On Jan. 5, 2007, the Development Bank of the Philippines signed
a PHP410-million term loan agreement with the Saint Frances
Cabrini Medical Center for the upgrading of the facilities and
equipment of the Batangas-based hospital.

President & CEO Reynaldo G. David said the loan will finance the
construction of a medical center building, a facility for cancer
treatment, and the acquisition of state-of-the-art radiotherapy
equipment.

Mr. David added that the construction of the medical center
building will allow SFCMC to increase its bed capacity from 100
to 220.  The construction of a cancer treatment facility and
acquisition of modern radiotherapy equipment, meanwhile, will
enable SFCMC to become the only institution to serve cancer
patients in the Southern Luzon region.

Mr. David also emphasized that the loan assistance is in line
with the DBP's thrust to promote the development of basic and
critical social and human infrastructure projects, particularly
in health care.

                          About SFCMC

SFCMC is one of the top tertiary hospitals in Batangas province
serving the Sto. Tomas, Tanauan, and Lipa areas, as well as
nearby towns in Laguna.  It is the preferred health services
provider of some 250 companies, and has established linkages
with respected international health organizations.

            About Development Bank of the Philippines

Development Bank of the Philippines --
http://www.devbankphil.com.ph/-- prides itself for being "the  
Philippines's most progressive development banking institution,"
providing for the medium and long-term financing needs of
enterprises, with emphasis on small and medium-scale industries,
particularly in the countryside.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that Fitch Ratings has affirmed Development
Bank of the Philippines' ratings as follows:

   -- Long-term foreign currency Issuer Default rating of 'BB',

   -- Long-term local currency IDR of 'BB+',

   -- Individual raring of 'C/D' and

   -- Support ratings of '3'.

The TCR-AP also reported on December 5, 2006, that Standard &
Poor's Ratings Services assigned its 'BB-'rating to the
Development Bank of the Philippines' (DBP: foreign currency BB-
/Stable/B, local currency BB+/Stable/B) PHP2.35 billion existing
lower Tier II subordinated notes due 2016, which will have a
tenor of ten years with a call option at the end of five years.
The differential between the 'BB+' counterparty credit rating
and the 'BB-' rating on the lower Tier II notes reflects the
subordinated nature of the notes.

Moody's Investors Service has revised the outlook of Development
Bank's foreign currency long-term deposit rating of B1 and local
currency long-term deposit rating of Ba2 from negative to
stable.


DEVELOPMENT BANK: Says Maritime Dev't Program is Successful
-----------------------------------------------------------
The Development Bank of the Philippines disclosed that its
Domestic Shipping Modernization Program Phase I was highly
successful and the ensuing DSMP II is well on track to meeting
its goals, The Philippine Star reports.

The DBP made the statement after news that lending agency Japan
International Cooperation Agency is disappointed with the way
DBP is running the project, the report says.

The paper relates that DBP senior vice president Corazon D.
Conde referred to an earlier statement made by an expert on
maritime administration -- Nobutaka Kimura -- of the JICA that a
JPY20-billion loan to the DBP was "unable to achieve its
objectives" due to the bank's stringent lending rules that
required an 80% loan value and 50% chattel mortgage collateral
value of the vessel.

"The slow disbursement of DSMP II does not mean the failure of
the program," Ms. Conde said, adding "the Japan Bank for
International Cooperation as a creditor has remained quietly
supportive of our strategic efforts to fully disburse the DSMP
II funds by closing date of Jan. 7, 2007."

The JBIC funded the nautical highways project to link the
archipelago, the report cites a ranking bank official, as
saying.

The Philippine Star relates that DSMP II focused on rural area
development, which means water transport in missionary routes
served only by pump boats.

            About Development Bank of the Philippines

Development Bank of the Philippines --
http://www.devbankphil.com.ph/-- prides itself for being "the  
Philippines's most progressive development banking institution,"
providing for the medium and long-term financing needs of
enterprises, with emphasis on small and medium-scale industries,
particularly in the countryside.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that Fitch Ratings has affirmed Development
Bank of the Philippines' ratings as follows:

   -- Long-term foreign currency Issuer Default rating of 'BB',

   -- Long-term local currency IDR of 'BB+',

   -- Individual raring of 'C/D' and

   -- Support ratings of '3'.

The TCR-AP also reported on December 5, 2006, that Standard &
Poor's Ratings Services assigned its 'BB-'rating to the
Development Bank of the Philippines' (DBP: foreign currency BB-
/Stable/B, local currency BB+/Stable/B) PHP2.35 billion existing
lower Tier II subordinated notes due 2016, which will have a
tenor of ten years with a call option at the end of five years.
The differential between the 'BB+' counterparty credit rating
and the 'BB-' rating on the lower Tier II notes reflects the
subordinated nature of the notes.

Moody's Investors Service has revised the outlook of Development
Bank's foreign currency long-term deposit rating of B1 and local
currency long-term deposit rating of Ba2 from negative to
stable.


EXPORT & INDUSTRY BANK: Says Performance Improved in 2006
---------------------------------------------------------
Export and Industry Bank disclosed in its financial report that
as of September 30, 2006, its total assets stood at
PHP26.1 billion, while total liabilities and equity amounted to
PHP21.3 billion and PHP4.7 billion, respectively.

Net loss for the quarter ended September 30, 2006, decreased to
PHP53.98 million from the PHP383.03-million net loss it recorded
in the same period in 2005.

According to the bank, on a quarter-to-quarter basis, it
performed better in 2006 compared to the previous year.

Impairment losses booked during the 2005 third quarter was
PHP3.6 million in compliance with the requirements of PAS 40 on
Investment Properties resulting from the decline in fair values
of properties and other assets.  In the 2006 third quarter
however, PHP130.7 million was required to be set up to comply
with the requirements of PAS 39 pertaining to the measurement of
financial assets.

Comparing September 2006 against year-end 2005 level, the bank's
total resources increased by PHP1.44 billion or by 5.83%.  
Liquid assets went up by PHP486.98 million or 36%, while trading
and investment securities likewise went up by as much as
PHP1.20 billion as a result of the additional capital infusion
of PHP2.4 billion by the bank's existing and new investors
during the first semester of 2006.

Total liabilities went down by PHP3.74 billion as the bank
liquidated its high cost borrowings to improve its
profitability.

                  December 2005 Equity Restated

The bank further disclosed that its December 31, 2005, equity
was restated to include prior period adjustments amounting to
PHP3.7 billion, pertaining to provisions for impairment losses
to comply with the new PFRS and PAS requirements, resulting to a
decrease in equity from the original amount of PHP3.293 billion
to negative PHP436 million as of that date.

On the other hand, with the approval of the amended articles of
incorporation by both the Bangko Sentral ng Pilipinas and the
Securities and Exchange Commission in April 2006, the par value
of the corporation's common shares was reduced from PHP1.00 to
PHP0.25, with the resulting PHP2.064 billion additional paid in
capital applied against the previous year's deficit.

The reduction in the par value allowed the entry of the
additional capital of PHP3 billion, of which PHP600 million was
received in 2005 while the balance of PHP2.4 billion was
received in April 2006.  The whole PHP3.0 billion additional
capital were issued Class B shares, the bank noted.

                  About Export & Industry Bank

Headquartered in Makati City, Manila, Export and Industry Bank -
- http://exportbank.com.ph/-- has 50 branches and has revived  
former Urban Bank unit under new names.  Its principal activity
is the provision of commercial banking services such as deposit
taking, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange and trust services.

The Bank is saddled with the PHP10 billion non-performing assets
it inherited from Urban Bank when the two banks merged in 2002.

The TCR-AP reported on May 10, 2006, that Exportbank is
scheduled to complete a rehabilitation program, which was
proposed in order to reverse a 2005 net loss of
PHP1.66 million, by 2007.

Under an agreement dated December 29, 2005, the Philippine
Deposit Insurance Corp. will extend annual financial aid of
PHP600 million to the Bank.


HERTZ CORP: Parent Discloses Strategies to Boost Competitiveness
----------------------------------------------------------------
Hertz Global Holdings, Inc., disclosed the first in a series of
initiatives to further improve Hertz's competitiveness and
industry leadership.

The company said that targeted job reductions affecting
approximately 200 employees are intended to help streamline
decision-making and improve service, in part by de-layering
management in several departments.  The job reductions are
occurring at the company's corporate headquarters in Park Ridge,
N.J., the U.S. service center in Oklahoma City, and in U.S.
field operations, and are expected to result in annualized
savings of up to US$15.8 million.  The company anticipates
incurring an estimated US$3.3 million-US$3.8 million
restructuring charge for severance and related costs that will
be taken in the first quarter of 2007.

The company said that the job reductions are occurring in the
context of initiatives intended to improve operational
efficiency and reduce costs worldwide.  The initiatives focus on
reducing new car costs, improving process efficiencies at its
car and equipment rental locations, centralizing purchasing and
organizational restructuring.

"Hertz is generating solid top-line growth and profits, enabling
us to take steps to reduce costs and improve efficiency from a
position of strength," said Mark P. Frissora, Chairman and CEO
of Hertz.

"Job reductions are a difficult decision, and we regret the
impact on affected employees, but the management team recognizes
that fleet cost inflation and competitive conditions require us
to act now. Throughout 2007, Hertz will implement a series of
operational initiatives that should
result in even higher levels of efficiency, enabling the company
to maintain its position as the premium brand and service leader
in our markets," added Mr. Frissora.

              About Hertz Global Holdings, Inc.

Hertz Global Holdings, Inc., the indirect parent corporation of
The Hertz Corp., is the largest worldwide general use car rental
brand and one of the largest equipment rental businesses in the
United States.  In its car rental business segment, Hertz and
its independent licensees and associates accept reservations for
car rentals at approximately 7,600 locations in approximately
145 countries.

                       About Hertz Corp.

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

                          *     *     *

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

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


MAGNUM HOLDINGS: Chairman F.H. Suarez Jr. Steps Down from Post
--------------------------------------------------------------
Magnum Holdings, Inc., informs the Philippine Stock Exchange
that Francis H. Suarez, Jr., has resigned as Director, Chairman,
and Treasurer of the company.

Magnum Holdings notes that Mr. Suarez's resignation was not due
to any disagreement on any matter relating to the company's
operations, policies, or practices.

                    About Magnum Holdings, Inc.

Magnum Holdings, Inc., formerly known as Summit Minerals, Inc.,
was originally organized to engage in mining exploration.  On
February 24, 1994, the Securities and Exchange Commission
approved the change in the Company's primary purpose to that of
a holding company and the change in its corporate name to Magnum
Holdings, Inc.

                 Significant Going Concern Doubt

After auditing Magnum Holdings' financial report for the year
ended December 31, 2005, A.S. Arellano and Co., raised
significant doubt on the Company's ability to continue as a
going concern.  The Auditor cites these reasons:

   * The Company incurred losses of PHP0.78 million,
     PHP0.69 million and PHP0.82 million for the years ending
     December 31, 2005, 2004 and 2003.

     As of December 31, 2005, the Company's capital deficiency
     amounted to PHP89.1 million.

   * The Company is dependent on the continuing support of its
     major stockholder, Sagarmatha, Inc.

     As of December 31, 2005, the Company's current liabilities
     exceeded its current assets by some PHP3.8 million.

   * The losses were attributed primarily to the poor trading
     conditions caused by financial turmoil affecting the region
     as well as representing the cost of maintaining and
     safeguarding the Company's assets and resources.


PHIL. LONG DISTANCE: Gov't Keen on Closing Stake Sale in 1st Qtr
----------------------------------------------------------------
On January 2, 2006, the Troubled Company Reporter - Asia Pacific
cited a report from Sun.Star Daily stating that First Pacific
Co. Ltd. said it will not allow rival bidder, Parallax Venture
Fund, to buy the Government's 111,415 shares, or 6.4% stake in
the Philippine Long Distance Telephone Company.

The Government, the TCR-AP recounted, has received a
PHP25.2-billion offer from Parallax Venture Fund XXCII.  First
Pacific, on the other hand, is waiting for the formal offer from
the Government before proceeding with the "right to match"
offer.

A subsequent TCR-AP report on Jan. 7, 2006, however, related
that Parallax Capital Management and First Pacific Co. Inc. are
both owned by the Salim family, indicating that the public
bidding for the Government's stake in PLDT was rigged.

Yet, a report from Malaya News relates that Finance Secretary
Margarito Teves said there is no problem as to whoever buys the
Government's stake in PLDT.  According to the report, Mr. Teves'
concern is to close the sale within the first quarter to help
the Government maintain a lower budget deficit and balance the
budget after two years.

According to Mr. Teves, the Government cannot bar Parallax from
buying the PTIC stake even if it is found to be owned by the
Salim Group, which is the biggest shareholder of PLDT, Malaya
says.

Mr. Teves said the ownership question is a "legal issue that's
being discussed" but is not material to the bidding process.

"There's no evidence Parallax is owned by the Salim Group.  
Also, there's no restriction against any financially able
company to participate in the bidding process," Mr. Teves said.

Malaya notes that other shareholders in the Philippine
Telecommunications Investment Corp., which owns a stake in PLDT,
have until January 20, 2006, to match the existing bid after
receiving the official notice in line with PTIC's Article of
Incorporation.

If this is not exercised, Mr. Teves said PTIC itself will be
given another 30 days to exercise its right to match.

Various other issues have hounded the sale such as the 15%
discount on the value of underlying shares, resulting in an
estimated PHP4 billion loss on the part of the Government,
Malaya notes.

Mr. Teves said the PTIC shares are "unlisted" and reflect just a
"small" portion of PLDT.

The Department of Finance did not hire a financial adviser for
the sale, Malaya notes.

                           About PLDT

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading  
national telecommunications service provider in the Philippines.  
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.  Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.


SAN MIGUEL CORP: Ferdinand K. Constantino Sells 61,816 Shares
-------------------------------------------------------------
San Miguel Corp. reports to the Philippine Stock Exchange that
on January 5, 2006, Ferdinand K. Constantino, as a principal
officer in the company, sold an aggregate of 61,816 shares
comprising of:

   -- 54,600 Class A Shares, and
   -- 7,216 Class B Shares

                        About San Miguel

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,  
operates food, beverage and packaging businesses.  The Company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The Company
also manufactures glass, metal, plastic, paper and composites
packaging products.

A Troubled Company Reporter - Asia Pacific report on Oct. 12,
2006, stated that Moody's Investors Service affirmed its Ba1
corporate family rating on San Miguel Corp.

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.


* Fitch Assigns 'BB' Rating to RP's US$1 Billion Global Bond
------------------------------------------------------------
On January 10, 2007, Fitch Ratings assigned a Long-term foreign
currency rating of 'BB' to the Republic of the Philippines'
(rated foreign currency Issuer Default 'BB') US$1 billion global
bond maturing in 2032 and priced to yield 6.55%.

The sovereign ratings of the Philippines are supported by steady
declines in the consolidated national government deficit, which
in 2006 is estimated to have fallen to less than 2% of GDP for
the first time in nearly a decade.  National government and
consolidated general government debt have also been in decline,
with the latter estimated by Fitch to be 56% of GDP at end-2006.

Strong remittance flows more than offset the merchandise trade
deficit, and the current account has been in surplus since 2003.
As a result, Fitch forecasts the Philippines' 2007 gross
external financing needs (the current account and external
amortisation payments) will be just 7% of official foreign
exchange reserves.

Despite recent fiscal improvements, the agency noted that
medium-term fiscal challenges remain a rating concern.  
Consolidated national government revenue is still low relative
to GDP, at about 16%, and is insufficient if the government is
to increase expenditure on much-needed infrastructure
improvements.  In addition, the 2007 budget has yet to be
passed, in another example of politics hindering economic
policymaking.


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

GLENEAGLES MEDICAL: Liquidators to Receive Claims Until Feb. 5
--------------------------------------------------------------
Low Sok Lee Mona and Teo Chai Choo, as liquidators for
Gleneagles Medical Global Care Pte Ltd, will be receiving proofs
of debt from the company's creditors until Feb. 5, 2007.

Failure to submit proofs of debt by the due date will exclude a
creditor from sharing in the company's distribution of dividend.

The Liquidators can be reached at:

         Low Sok Lee Mona
         Teo Chai Choo
         c/o Low, Yap & Associates
         4 Shenton Way
         #04-01 SGX Centre 2
         Singapore 068807


PDC CORP: Shareholder Reduces Holdings of Direct Shares
-------------------------------------------------------
PDC Corp Ltd's substantial shareholder, Hsu Hung-Chun, has
reduced his direct shares due to a sale in an open market.

The reduction of shares, which happened on Dec. 29, 2006, left
Mr. Hsu with 150,000,000 direct shares with 12.10% issued share
capital.  Prior to that, Mr. Hsu held 160,000,000 direct shares
with 12.90% issued share capital.

                         About PDC Corp.

Headquartered in Singapore, PDC Corporation Limited is
principally involved in the provision of general construction,
property development, real estate and investment.  Its other
activities are the provision of renovation work of any kind and
for the demolition of any structure, trading, rental and
servicing of industrial machinery and equipment and the
distribution of multimedia products, home automation system,
other high technology products and investment holding.

                          *     *     *

PDC Corporation's Auditors, Ernst & Young, after auditing the
company's financial statements for the year ended Dec. 31,
2005, highlighted a going concern issue.

As at Dec. 31, 2005, the current liabilities of the company and
the Group exceeded current assets by US$3,852,210 and
US$20,001,069 respectively, and their total liabilities exceeded
total assets by US$3,912,981 and US$20,062,940 respectively.


PDC CORP: Subsidiary Awarded for Tender Bid of Land
---------------------------------------------------
On Dec. 28, 2006, PDC Corp Ltd disclosed that its wholly owned
subsidiary, HLH Agri R&D Pte Ltd, has been awarded the tender
bid for the largest of the three plots of land in Lim Chu Kang,
which was offered for sale by the Singapore Land Authority.

HLH Agri R&D, which will focus on agricultural research and
experimentation, bagged the site with a successful bid of
SGD880,000.  The 20-year lease plot has a land area of some
50,900 square meters.

The land acquisition of will be funded by internal sources and
bank borrowings.  However, the acquisition is not expected to
have any material impact on the Group's financial performance.

                         About PDC Corp.

Headquartered in Singapore, PDC Corporation Limited is
principally involved in the provision of general construction,
property development, real estate and investment.  Its other
activities are the provision of renovation work of any kind and
for the demolition of any structure, trading, rental and
servicing of industrial machinery and equipment and the
distribution of multimedia products, home automation system,
other high technology products and investment holding.

                          *     *     *

PDC Corporation's Auditors, Ernst & Young, after auditing the
company's financial statements for the year ended Dec. 31,
2005, highlighted a going concern issue.

As at Dec. 31, 2005, the current liabilities of the company and
the Group exceeded current assets by US$3,852,210 and
US$20,001,069 respectively, and their total liabilities exceeded
total assets by US$3,912,981 and US$20,062,940 respectively.


PETROLEO BRASILEIRO: Inks Power Plant Pact with Copel
-----------------------------------------------------
Companhia Paranaense de Energia aka COPEL, signed on
Dec. 28, 2006, these agreements with Petroleo Brasileiro SA aka
Petrobras:

   1. A Rental Agreement for the Araucaria Gas-powered
      Thermoelectric Plant, established between UEG Araucaria
      and Petrobras, terminating on Dec. 31, 2007, and
      extendable for up to 12 months thereafter should both
      parties so wish.

      The monthly rental charge, which will cover UEG
      Araucaria's costs and taxes, will contain a fixed and a
      variable component.

      The fixed charge will be BRL13.14 per MWh multiplied by
      the reference capacity (428.35 MW) and by the number of
      hours per month.

      The variable charge of BRL33.23 per MWh will be calculated
      in line with the actual amount of electricity generated.

   2. An operational and maintenance service agreement for the
      UEG Araucaria, established between COPEL Geracao and
      Petrobras, terminating on Dec. 31, 2008, or until the
      termination of the Rental Agreement, whichever occurs
      first.

      The monthly value of the services provided will be
      BRL5.86 per MWh multiplied by the reference capacity
      (428.35 MW) and by the number of hours per month.

                        About Copel

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and  
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                          *     *     *

Moody's America Latina upgraded the corporate family rating of
Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its
global scale and to Aa2.br from A3.br on its Brazilian national
scale.

                         About Petrobras

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

                          *     *     *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Reports Oil & Gas Viability in 3 Basins
------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has sent commercial
viability statements relative to 19 new areas (16 offshore and 3
onshore) in the Espirito Santo, Campos, and Santos Basins to the
National Petroleum, Natural Gas, and Biofuel Agency.  A few of
them have become new oil and/or natural gas fields, while others
have been incorporated into existing neighboring fields.

Although the 19 areas are still subject to more detailed
technical assessments for the area development process, it is
estimated that Petrobras' share of the recoverable volumes will
top-out at some 2.1 billion barrels of oil equivalent of oil and
gas in the three basins.

Three areas Petrobras operates in the old BS-500 block, in the
Santos Basin, were declared commercially viable, resulting in
the Tambuata, Pirapitanga and Carapia oil and natural gas
fields, while one area in the old BS-400 block was annexed to
Mexilhao Field.  It is estimated there are recoverable volumes
of some 560 million barrels of oil equivalent in these areas.

Meanwhile, four new offshore and three new onshore areas have
been defined in the Espirito Santo Basin, all of which operated
by Petrobras.  The new Carapo and Camarupim gas fields, and two
other natural gas and light oil areas that will be annexed to
the Golfinho and Canapu fields, have been declared commercially
viable.  It is estimated there are recoverable volumes of some
168 million barrels of oil equivalent in these areas.

Three new fields Saira, Seriema, and Tabuiaia, have been defined
onshore.  Although they have slightly more modest volumes
compared to the basin's offshore portion, these finds are
nonetheless greatly important to maintain the Espirito Santo
Basin's onshore production.

Finally, eight new areas have been declared commercially viable
in the Campos Basin:

   -- the Maromba field, in the old BC-20 block, operated by
      Petrobras in association with Chevron;

   -- the Caratai and Carapicu fields, in the old BC-30 block;
      and

   -- in the old BC-60 block, the Catua, Cacharel, Manganga, and
      Pirambu fields, in addition to one area to be annexed to
      the Baleia Azul Field.

The recoverable volumes are believed to top-out at about 1.37
million boe there.

The new discoveries show the precision of the company's
exploratory program.  Petrobras has a diversified concession,
technology and investment portfolio, over and beyond a qualified
technical staff, which allows it to increase both oil and
natural gas reserves and production on an ongoing basis.

Additionally, in the old BS-4 block, in the Santos Basin, facing
the Rio de Janeiro coast, Shell, as the operator, declared two
new fields commercially viable.  Petrobras holds 40% of the
rights for these fields.

                         About Petrobras

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

                          *     *     *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Unit Commences Debt Exchange Offer on Notes
----------------------------------------------------------------
Petroleo Brasileiro SA aka Petrtiobras disclosed that its wholly
owned subsidiary Petrobras International Finance Company aka
PIFCo has commenced exchange offers of the five series of notes
listed in the table below for new notes and a cash amount.  The
Reopening Notes constitute a further issuance of, and form a
single fungible series with PIFCo's benchmark 6.125% global
notes due 2016 that were issued on Oct. 6, 2006.

Pifco is offering holders of Old Notes an opportunity to
exchange Old Notes for a combination of Reopening Notes and a
U.S. Dollar amount in cash.  For each US$1,000 principal amount
of Old Notes validly tendered and not withdrawn prior to the
Early Tender Date of Jan. 18, 2007, unless extended by Petrobras
and PIFCo, subject to prorationing, holders will
receive a combination of US$1,000 principal amount of our
Reopening Notes and a Cash Payment (Total Exchange Price)
calculated using a fixed-spread pricing formula as set forth in
the applicable prospectus.

The company has designated US$20 of the Total Exchange Price as
the Early Tender Payment, which will be paid only to holders who
validly tender their Old Notes on or prior to the applicable
Early Tender Date and do not validly withdraw their tenders.

                                                    Outstanding
Priority    PIFCo                                   Principal
Order       Notes             CUSIP/ISIN No.        Amount

  1       12.375% Global       71645WAF8 /        US$134,622,000
          Step-Up Notes       US71645WAF86
           due 2008

  2       9.875% Senior        G7028BAA9 /        US$238,246,000
          Notes due 2008      USG7028BAA91;
                               71646FAA5 /
                              US71646FAA57;
                               71646FAB3 /
                              US71646FAB31

  3       9.75% Senior         71645WAB7 /        US$286,356,000
          Notes due 2011      US71645WAB72;
                               G7028BAB7 /
                              USG7028BAB74*;
                               71645WAA9 /
                              US71645WAA99

  4       9.125% Global        71645WAG6 /        US$498,335,000
          Notes due 2013      US71645WAG69


  5       7.750% Global        71645WAJ0 /        US$600,000,000
          Notes due 2014      US71645WAJ09

This table should be used in connection with the calculation of
the Reopen Issue Price of the Reopening Notes and the yield to
maturity of the Original 2016 Notes for the Qualified Reopening
Condition, as stated in the prospectus:

           6.125% Global       71645WAL5 /        US$500,000,000
           Notes due 2016     US71645WAL54

                                        Reference
Priority    Maturity       Bloomberg    Treasury    Fixed Spread
Order        Date           Page       Security        (in bp)

  1       April 1, 2008      BBT 4     4.625% due        10
                                        3/31/08

  2       May 9, 2008        BBT 4     2.625% due        10
                                        5/15/08

  3      July 6, 2011        BBT 5     5.125% due        35
                                        6/30/11

  4      July 2, 2013        BBT 6     4.250% due        95
                                        8/15/13

  5   September 15, 2014     BBT 6     4.250% due       120
                                        8/15/14

The table should be used in connection with the calculation of
the Reopen Issue Price of the Reopening Notes and the yield to
maturity of the Original 2016 Notes for the Qualified Reopening
Condition, as stated in the prospectus:


       October 6, 2016       BBT 6     4.625% due       140
                                        11/15/16

These Notes are admitted to trading on the regulated market of
the Luxembourg Stock Exchange.

The Cash Payment will be determined at 2:00 p.m. New York time
on the first business day after the Early Tender Date of each
Offer, using the fixed-spread pricing formula to determine the
value of the Old Notes and the Reopening Notes.

The amount of the Cash Payment for each US$1,000 principal
amount of Old Notes will equal:

     (i) the applicable Total Exchange Price, minus

    (ii) the Reopen Issue Price of the Reopening Notes, plus

   (iii) the accrued and unpaid interest with respect to the
         relevant series of Old Notes to, but not including, the
         Settlement Date, minus

    (iv) the accrued and unpaid interest with respect to the
         Reopening Notes to, but not including, the Settlement
         Date.

The company's obligation to accept Old Notes tendered in the
Offers is conditioned on the satisfaction of certain conditions
described in the applicable prospectus, including the condition
that we will issue a maximum principal amount of US$500,000,000
of Reopening Notes issuable under all of the Offers.  In the
event that this condition is not satisfied, the company will
accept the series of Old Notes in the priority order set forth
in the chart above and we will prorate the lowest priority
series in order to cause the condition to be satisfied. Old
Notes with an acceptance priority level following the prorated
series of Old Notes will not be accepted for exchange.

Old Notes tendered before the applicable Early Tender Date may
be withdrawn at any time on or prior to 5:00 p.m., New York City
time, on the applicable Early Tender Date but not thereafter.  
Old Notes tendered after the applicable Early Tender Date may
not be withdrawn, except as described in the applicable
prospectus.

The reference yield for the applicable reference treasury
security will be calculated by Morgan Stanley & Co.,
Incorporated and UBS Securities LLC in accordance with standard
market practice as of 2:00 pm New York City time, on Jan. 19,
2007, unless extended by Petrobras and PIFCo, as reported on
the applicable Bloomberg Government Pricing Monitor page
indicated in the chart above, or, if any relevant price is not
available on a timely basis on the applicable Bloomberg Page or
is manifestly erroneous, such other recognized quotation source
as the dealer managers shall select in their sole discretion.

The offers are scheduled to expire at 5:00 pm, New York City
time, on Feb. 1, 2007, unless extended or earlier terminated.  
Settlement of each offer is expected to occur three business
days after the applicable expiration time of that offer.

PIFCo has retained Morgan Stanley & Co., Incorporated and UBS
Securities LLC to act as dealer managers for the offers, The
Bank of New York to act as exchange agent for the offers, The
Bank of New York (Luxembourg) S.A. to serve as Luxembourg agent
for the offers and D.F. King & Co., Inc. to act as information
agent for the offers.

Requests for documents (including the prospectus) may be
directed to:

         D.F. King & Co., Inc.
         48 Wall Street, 22nd Floor
         New York, New York 10005
         Telephone:(212) 269-5550 for banks and brokers
                   (800) 859-8508 for all others

Questions regarding the offers may be directed to:

         Morgan Stanley & Co., Incorporated
         Telephone: (800) 624-1800 (in the United States)
                    (212) 761-1864 (outside the United States);

                     or

         UBS Securities LLC
         Telephone:(888) 722-9555, ext. 4210 (in the United
                   States)
                   (203) 719-4210 (outside the United States)

                         About Petrobras

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

                          *     *     *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


RESPONSIVE LEASING: Pays Dividend to Creditors
----------------------------------------------
Responsive Leasing Singapore Pte Ltd., which is undergoing
liquidation, has paid the first and final dividend to its
creditors on Dec. 22, 2006.

The company paid 0.0877% on account of all received claims.

The company's liquidator can be reached at:

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


SEE HUP SENG: Appoints Yap Sew as Member of Nominating Committee
----------------------------------------------------------------
See Hup Seng Limited unveiled on Dec. 27, 2006, that it has
appointed Yap Sew as new member of the Nominating Committee.  

Accordingly, the Nominating Committee will comprise of:

   * Foo Meng Kee - Chairman (Non-Executive and Independent);

   * Teo Choon Kow - Member (Non-Executive and Independent); and

   * Yap Sew - Member (Executive Director and Chief Executive
     Officer

                      About See Hup Seng

See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is   
engaged in the provision of corrosion prevention services
through a range of marine and industrial blasting and coating
methods.  Its other activities are the provision of tank
cleaning, painting and coating, ship repair, shipbuilding and
scaffolding services, trading and manufacturing of blasting and
painting equipment and investment holding.  The group is
domiciled in Singapore and markets its products and services
domestically and in the People's Republic of China, Hong Kong
and Cayman Islands.

                       Significant Doubt

As reported in the Troubled Company Reporter - Asia Pacific on
May 24, 2006, after reviewing the company's financials for the
year 2005, Moore Stephens -- See Hup Seng's independent
auditors -- expressed, on April 7, significant doubt in the
company's ability to continue as going concern, citing the
company's losses and net current liabilities.  Moore Stephens
adds that the ability of the group and the company to continue
as going concerns is dependent the company's debt restructuring
exercise.


SEE HUP SENG: Discloses Shareholders' Change of Interests
---------------------------------------------------------
See Hup Seng Limited disclosed on Dec. 20, 2006, that
shareholder Merrill Lynch International has acquired 17,000,000
new direct shares in the company with 5.63% issued share
capital.

Another registered holder, Lim Siok Kwee Thomas, has, on Jan. 9,
2007, reduced its direct holdings of shares in the company.

The reduction of Mr. Lim's shares in the company was due to a
sale of 5,000,000 shares in a married deal.

Presently, Mr. Lim holds 27,047,050 direct shares with 8.96%
issued share capital.  Prior to that, Mr. Lim held 32,047,050
direct shares with 10.61% issued share capital.

Tan Ong Huat, also a registered holder in the company, has also
reduced his holdings of shares in the company on Jan. 9, 2007.

Before the change, Mr. Tan held 9,195,000 direct shares with
3.05% issued share capital.  Presently, Mr. Tan holds 8,695,000
direct shares with 2.88% issued share capital.  Moreover,
Mr. Tan doesn't hold deemed shares anymore.  Previously, Mr. Tan
held 1,305,000 deemed shares with 0.43% issued share capital.

                      About See Hup Seng

See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is   
engaged in the provision of corrosion prevention services
through a range of marine and industrial blasting and coating
methods.  Its other activities are the provision of tank
cleaning, painting and coating, ship repair, shipbuilding and
scaffolding services, trading and manufacturing of blasting and
painting equipment and investment holding.  The group is
domiciled in Singapore and markets its products and services
domestically and in the People's Republic of China, Hong Kong
and Cayman Islands.

                       Significant Doubt

As reported in the Troubled Company Reporter - Asia Pacific on
May 24, 2006, after reviewing the company's financials for the
year 2005, Moore Stephens -- See Hup Seng's independent
auditors -- expressed, on April 7, significant doubt in the
company's ability to continue as going concern, citing the
company's losses and net current liabilities.  Moore Stephens
adds that the ability of the group and the company to continue
as going concerns is dependent the company's debt restructuring
exercise.


STATS CHIPPAC: To Discuss 2006 4th Qtr. Results on Jan. 25
----------------------------------------------------------
STATS ChipPAC Ltd. disclosed that it will hold a conference call
with investors and analysts on January 25, 2007, at 8 a.m. in
Singapore to discuss the company's 2006 fourth quarter results
and the company's business outlook.

In New York time, the conference call will be held at 7 p.m. on
Jan. 24, 2007.

The news release containing the fourth quarter 2006 results will
be disseminated on Jan. 24, 2007, after the Nasdaq stock market
closes.

The dial-in number for the live audio call is +1-201-689-8560.
Whereas, a live webcast of the conference call will be available
on the company's website at http://www.statschippac.com.

A replay of the call will be available 2 hours after the live
call through noon on February 1, 2007 -- in Singapore -- or
midnight on January 31, 2007 -- in New York-- at:

         Website: http://www.statschippac.com
         Telephone: at +1-201-612-7415

The account number to access the replay is 3055 and the
conference ID number is 225166.

                       About STATS ChipPAC

Headquartered in Singapore, STATS ChipPAC Ltd. --
http://www.statschippac.com/-- provides semiconductor test and  
assembly services.  The company assembles leaded and laminate
packages and provides related services such as package design
and leadframe and substrate designs.  The company provides these
tests and assembly services to semiconductor companies, which do
not have their own manufacturing facilities.  The company's
offices outside the United States are located in Singapore,
South Korea, China, Malaysia, Taiwan, Japan, the Netherlands and
United Kingdom.

                          *     *     *

Moody's Investors Service gave STATS ChipPAC a Long-Term
Corporate Family Rating of 'Ba2" effective on October 21, 2004
and the company's Senior Unsecured Debt a 'Ba2' rating on
October 28, 2004.

Standard and Poor's Ratings Services gave the company a 'BB' for
both its Long-Term Foreign Issuer Credit Rating and Long-Term
Local Issuer Credit Rating effective on October 7, 2004.


WEIAN INVESTMENTS: Creditors Must Prove Debts by Feb. 5
-------------------------------------------------------
Weian Investments Pte Ltd, which is in members' voluntary
liquidation, will be receiving proofs of debt from its creditors
until Feb. 5, 2007.

Failure to submit proofs of debt by the due date will exclude a
creditor from sharing in the company's distribution of dividend.

The company's liquidators are:

         Low Sok Lee Mona
         Teo Chai Choo
         c/o Low, Yap & Associates
         4 Shenton Way
         #04-01 SGX Centre 2
         Singapore 068807


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

COMPUTER SCIENCES: Unveils Federal Contracts in Third Quarter
-------------------------------------------------------------
Computer Sciences Corp. disclosed that since Oct. 1, 2006, its
Federal Sector business unit has signed 110 previously
unannounced contracts and subcontracts during CSC's fiscal 2007
third quarter, which ends Dec. 29, 2006.  These contracts have a
total estimated value of US$643 million if all contract options
are exercised.

The performance periods for the contracts range from one month
to 10 years.  Civil agencies accounted for 40 awards with a
total value of approximately US$115 million.  Department of
Defense agencies accounted for 70 awards with a total value of
approximately US$528 million.

"CSC's Federal Sector business unit continues its robust
performance and is delivering according to our expectations,"
said CSC Chairman and Chief Executive Officer Van B. Honeycutt.
"These contracts signify the confidence our clients have in
CSC's ability to apply our vast experience and expertise to
deliver business results for projects on the largest and
smallest scales for a diverse cross section of agencies."

Significant areas of award activity include the Departments of
the Navy and Army, the National Aeronautics and Space
Administration, the intelligence community and state and local
agencies.

All expressed contract award terms and values represent the
amounts that CSC expects to receive from the agreements if all
options are exercised.

Headquartered in El Segundo, Calif., Computer Sciences
Corporation (NYSE: CSC) -- http://www.csc.com/-- is an  
information technology services company.  The company's services
include systems design and integration; IT and business process
outsourcing; applications software development; Web and
application hosting; and management consulting.  The company has
operations in Singapore, the United Kingdom and Thailand.

The Troubled Company Reporter - Asia Pacific reported on Jan. 2,
2007, that Computer Sciences Corp. is soliciting consents from
the holders of its US$200 million aggregate outstanding
principal amount of its 6-1/4% Notes due 2009 for a one-time
waiver, to be effective through March 9, 2007, of any default or
event of default under the reporting requirements in the
indentures governing the Notes.


DAIMLERCHRYSLER: Inks Agreement with Insurers Settling Dispute
--------------------------------------------------------------
DaimlerChrysler AG has reached an agreement with insurance
companies concerning a dispute to recover the cost of a US$300
million settlement of a 2003 investor lawsuit regarding the 1998
merger of Daimler-Benz and Chrysler Corp.

The group of insurers includes ACE Ltd., AXA, Gerling, HDI,
Chubb, XL Capital, Zurich Financial, and Basler.

According to Financial Times Deutschland, the insurers will pay
US$221.5 million (EUR168 million) to DaimlerChrysler to settle
the dispute.

American International Group Inc. has agreed to pay US$25
million.

Some U.S. shareholders of Chrysler Corp. seeking US$22 billion
in damages filed the lawsuit.  They said they were fooled into
approving the transaction because executives from both companies
portrayed it as a merger of equals.

The lawsuit cited a 2000 interview with former DaimlerChrysler
Chairman Juergen Schrempp in which he billed the combination as
a merger rather than a takeover was "for psychological reasons"
only.

DaimlerChrysler agreed in August 2003 to pay shareholders around
EUR275 million to settle the suit.

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


DAIMLERCHRYSLER: U.S. Dec. Sales Decrease 1%; 2006 Sales Down 5%
----------------------------------------------------------------
DaimlerChrysler AG, the third largest U.S. automaker, reported
total group sales of 218,530 passenger vehicles in the U.S. for
December 2006, a 1% decrease compared with December 2005.  For
the full calendar year 2006, DaimlerChrysler U.S. passenger
sales were 2,390,585, down 5% compared with the year before when
2,529,254 vehicles were sold.

Chrysler Group, which consists of the Chrysler, Jeep(R) and
Dodge brands, posted sales of 190.415 vehicles in the U.S., an
increase of 1%.

Following global sales growth of 4.7% to 2.83 million units in
2005, Chrysler Group launched 10 all-new vehicles in 2006,
including some of the most fuel-efficient vehicles in the
company's history.

Reinforcing its position as America's favorite convertible
company, the Chrysler Group is raising the roof on the
convertible segment with the all-new 2008 Chrysler Sebring
Convertible.

The vehicle offers what no other convertible has offered before
-- three automatically latching convertible top options in
vinyl, cloth or a body-color painted steel retractable hard top,
all of which can be retracted with a push of a button on the key
fob.  The Chrysler Sebring Convertible achieves excellent fuel
efficiency of 31 mpg and has Flexible-fuel Vehicle engine
availability, making the 2008 Chrysler Sebring Convertible a
solid contender.

Mercedes-Benz USA reported sales of 28,115 units for December,
boosting the company to its thirteenth consecutive year of sales
growth.  The company closed the year with 248,080 units sold, an
11% increase over the previous record year in 2005.

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest
------------------------------------------------------------
Federal-Mogul Corporation and its debtor affiliates withdrew
their request to transfer the equity interests of Servicio de
Componente Automotrices, S.A. de C.V. and Servicios
Administrativos Industriales, S.A. de C.V. to non-debtor
subsidiary Cooperatief Federal-Mogul Dutch Investments
U.A.

The Debtors dropped their transfer plan with respect to the
Mexican units in response to an informal objection raised by a
party-in-interest.  The Debtors did not disclose the identity of
the objecting party.

Accordingly, the Court only grants the Debtors' request with
respect to the transfer of equity interests in Federal-Mogul
Holding Deutschland GmbH to F-M Dutch HoldCo.

            Inter-company Equity Interest Transfers

The Debtors secured an approval from the U.S. Bankruptcy Court
for the District of Delaware for the inter-company transfers of
equity interests in Federal-Mogul Holding Deutschland GmbH and
certain Mexican subsidiaries to Cooperatief Federal-Mogul Dutch
Investments U.A., a non-Debtor subsidiary.

The equity interests are currently held either directly by
Debtors Federal-Mogul Corporation, FM International LLC, and
Federal-Mogul Ignition Company, or indirectly through their non-
debtor affiliates.

The proposed Transfers are part of an international
restructuring that the Debtors intend to consummate before year-
end to maximize the tax-efficiency of their corporate structure
going forward.

The restructuring will ultimately result in many of the Debtors'
foreign subsidiaries being owned through the F-M Dutch HoldCo
structure.  F-M Dutch HoldCo, which was formed in connection
with the Court-authorized French and Italian Recap, is a Dutch
holding company with no current material liabilities and whose
only significant assets are its indirect equity holdings in
Federal-Mogul Holding Italy S.r.L.

The Transfers will result in an estimated annual tax savings
aggregating US$28,000,000, and will preserve a larger portion of
post-tax funds that are repatriated through the F-M Dutch HoldCo
structure.

                         German Transfers

F-M Germany is currently a wholly owned subsidiary of Federal-
Mogul Corp., and is the parent of a number or subsidiaries that
constitute about 60% of the Debtors' operations in Europe.

The Debtors proposed to transfer ownership of F-M Germany from
Federal-Mogul Corp., resulting in F-M Dutch HoldCo directly
holding a 90% equity interest in F-M Germany with the remaining
10% held indirectly through a newly formed German partnership.

The German Transfer allows the Debtors to effectuate their
international restructuring and move funds up the corporate
ownership chain to their United States parent companies.

The German Transfer must be completed by the end of 2006 to
allow the Debtors to take advantage of a number of beneficial
tax attributes that are anticipated to result in an aggregate
tax savings of approximately US$26,000,000.

                        Mexican Transfers

The Debtors' Mexican operations consist of 10 directly and
indirectly held subsidiaries.  None of the Mexican subsidiaries
are Debtors in the Chapter 11 proceedings.

Servicio de Componente Automotrices, S.A. de C.V., is the
principal holding company for the Mexican businesses.  The
current shareholders of SEDECA are:

   (1) Debtor F-M International with a current interest of
       25.52% interest in SEDECA;

   (2) Debtor F-M Ignition with a 70.74% interest in SEDECA; and

   (3) non-Debtor Federal-Mogul Canada Ltd., which is wholly
       owned by Federal-Mogul Corp., with a 3.74% interest in
       SEDECA.

SEDECA directly or indirectly holds 100% of all of the SEDECA
Subsidiaries except:

   * Servicios Administrativos Industriales, S.A. de C.V.;

   * Camshafts Castings de Mexico S. de R.L.; and

   * Federal-Mogul S.A. de C.V.

The Debtors previously proposed to transfer the equity interests
of SEDECA and SAISA to F-M Dutch HoldCo, which will permit the
Debtors to avail themselves of certain tax advantages under
Dutch and Mexican law.

As part of the Mexican Transfer, the shareholders of the Mexican
Subsidiaries will indirectly contribute their ownership
interests in the Mexican Subsidiaries to F-M Dutch HoldCo in
exchange for equity interests in F-M Dutch HoldCo.

The Mexican Transfer is part of the Debtors' overall tax
planning efforts to reduce the tax liability related to their
Mexican operations.  The Debtors estimated that the Mexican
Transfers will result in an ownership structure that will confer
a net US$2,000,000 annual savings in taxes.

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's  
largest automotive parts companies with worldwide revenue of
some US$6 billion.  In the Asian Pacific region, the company has
operations in Malaysia, Australia, China, India, Japan, Korea,
and Thailand.  

The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities.  Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.  (Federal-Mogul Bankruptcy News, Issue
No. 122; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FEDERAL-MOGUL: Court Sets Disclosure Statement Hearing on Feb. 2
----------------------------------------------------------------
The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court
for the District of Delaware will convene a hearing on
February 2, 2007, at 9:00 a.m. (prevailing Eastern time) to
consider the adequacy of the Supplemental Disclosure Statement
relating to Federal-Mogul Corporation and its debtor affiliates'
Fourth Amended Joint Plan of Reorganization.

The Supplemental Disclosure Statement provided information
concerning modification to the holders of certain claims that
are proposed to have their votes re-solicited with respect to
the Fourth Amended Plan.  For most claims against and interests
in the Debtors, however, the Fourth Amended Plan provides for
the same treatment as was contained in the Third Amended Plan,
and it is proposed not to re-solicit votes with respect to the
Fourth Amended Plan from the holders of the claims and
interests.

The deadline for filing objections to the Supplemental
Disclosure Statement is on January 10, 2007, at 4:00 p.m.
(prevailing Eastern time).

Unless an objection to the Supplemental Disclosure Statement is
filed and served by the Objection deadline, parties-in-interest
may be barred from objecting and may not be heard at the
Supplemental Disclosure Statement Hearing.

The Supplemental Disclosure Statement Hearing may be adjourned
from time to time without further notice to all parties.

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's  
largest automotive parts companies with worldwide revenue of
some US$6 billion.  In the Asian Pacific region, the company has
operations in Malaysia, Australia, China, India, Japan, Korea,
and Thailand.  

The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities.  Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.  (Federal-Mogul Bankruptcy News, Issue
No. 121; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


KASIKORNBANK: Joins BAY to Grant THB2.6 Bil. Loan to Jungceylon
----------------------------------------------------------------
Kasikornbank and Bank of Ayudhya are expected to sign loan
agreements amounting to THB2.6 billion with the operator of the
Jungceylon Shoppin0g Complex in Phuket, the Bangkok Post
reports.

Bangkok Post notes that Kasikornbank and Bank of Ayudhya will
each provide half of the loan to Phuket Square with a repayment
term of five to six years.  Phuket Square will use its shopping
complex as collateral.

A source from one of the banks told the paper that it decided to
back Phuket Square because it saw huge potential for the
shopping complex, which is the largest retail centre on Patong
Beach, with a five-star hotel.

Jungceylon, according to the report, will use the loan to expand
its shopping complex and hotel at Patong Beach.  About one-third
of the loan proceeds will be used to renovate and adjust some
internal store designs, a company executive told the Post.  

The remaining funds will be spent to complete two wings on the
Millennium Resort Phuket, due to open sometime this year.  The
six-story, five-star hotel will have 435 rooms.

About 90% of the 75,000 square meters at Jungceylon have been
leased and all tenants plan to open by next month, the paper
says.

                          *     *     *

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

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

On October 24, 2006, the Troubled Company Reporter - Asia
Pacific, reported that Fitch Ratings affirmed the ratings of
Kasikornbank and removed them from Rating Watch Negative on
which they were placed on September 20, 2006 following the
military coup.  The Outlook on their ratings is now Stable.

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

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


KRUNG THAI: Authorities Asks to Halt Payment for Fire Trucks
------------------------------------------------------------
Krung Thai Bank was asked to halt all payment for the fire-
fighting trucks bought in controversial THB6.68 billion deal as
the case is still under investigation, the Nation reports.

In addition, Bangkok Governor Apirak Kosayodhin told the paper
that his office also halted the process of formal inspection and
acceptance of the trucks.

The first installment of the THB845-million payment is due on
February 10, 2007.

Deputy Bangkok Governor Wallop Suwandee told the Nation that the
Bangkok Metropolitan Administration had not used the
firefighting vehicles and the trucks were still the
responsibility of the Austrian supplier Steyr Daimler Puch,
until the BMA formally accepts the delivery after the
investigations are finished.

He said the Bangkok Metropolitan Administration would soon
discuss with the Interior Ministry about what to do with the
firefighting vehicles and equipment after the joint panel from
seven agencies led by Justice Ministry had finished its
investigation.

The project was 60% subsidized by the government and 40% by the
BMA, he said.

The project is also under the investigation of the Assets
Examination Committee.

                          *     *     *

Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/
-- began its operation on March 14, 1966, through the merger of
business between the Agricultural Bank Limited and the
Provincial Bank Limited with the Ministry of Finance as its
major shareholder.

The Bank provides financial assistance to large and small
business, it also renders financial assistance to other state
enterprises, both business-oriented and public utility types.  
Currently the bank is operating 511 domestic and 12 foreign
branches and representative offices.

Fitch Ratings, on September 12, 2006, affirmed the individual
C/D rating of Krung Thai Bank Public Company Limited.

The bank currently carries Moody's Investors Service's bank
financial strength rating of D.


PHELPS DODGE: New Cerro Verde Starts Copper Concentrate Output
--------------------------------------------------------------
Phelps Dodge Corp. reported that the expansion at the Cerro
Verde Mine near Arequipa, Peru, has begun producing copper
concentrate from the mine's primary sulfide ore body.

The first product shipment, approximately 9,500 dry metric tons
of copper concentrate manufactured during pre-operational
trials, was disclosed in regulatory filings with CONASEV, the
government agency that oversees publicly traded companies in
Peru.  The concentrate was sold for processing to Sumitomo Metal
Mining Co. Ltd., one of the major shareholders of the Cerro
Verde Mine.

The new concentrator associated with the expansion is operating
but is not yet at full capacity.  The concentrator continues to
work through normal adjustments associated with the start-up of
a major operation.  Full production will be achieved during the
first half of 2007.

Once it reaches full production, the expansion will allow the
mine to triple annual production from approximately 100,000 tons
of copper to 300,000 tons.  In addition, the expansion is
expected to produce more than 2,000 tons of molybdenum per year.
Cerro Verde estimates that the expansion will extend the mine's
life by approximately 26 years.  Through the expansion,
approximately 1 billion tons of sulfide ore reserves averaging
0.51% copper will be processed through the new concentrator.

                    About Cerro Verde Mine

Phelps Dodge owns 53.6% of the Cerro Verde Mine.  Sumitomo Metal
Mining and Sumitomo Corp. together own 21%.  Compania de Minas
Buenaventura owns 18.5% of the mine, and common shareholders own
6.9%.

Phelps Dodge -- http://www.phelpsdodge.com/-- is among the   
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.

Phelps Dodge has operations in Venezuela, Thailand, China, the
Philippines and Japan, among others.

                        *    *    *

On June 26, 2006, Moody's Investors Services has placed Phelps
Dodge's Ba1 junior preferred shelf rating in CreditWatch for a
possible downgrade.


SIAM COMMERCIAL: Mulls 20% Increase on Credit-Card Rate
--------------------------------------------------------
Siam Commercial Bank will raise its credit-card interest rate to
20% within two months, the Nation reports.

According to Pradeep Roy, the lender's executive vice president,
the increase on the credit card rate for new applicants around
February and March follows that of some foreign bank's credit
card hike.  "I believe local bank swill follow suit due to
funding-cost increase," Mr. Roy added.

However, Mr. Roy claimed that the proposed bank rate will not
impact its cardholders significantly.  The bank's customers who
paid off their debts in installments represented only 30% to 40%
of its total of 1.6 million cards, lower than the industry's
average installment-payment proportion of 55% to 60%.

All holders of the bank's credit cards will be charged 20% in
July, in accordance with Bank of Thailand regulations.

Meanwhile, only this month, the lender increased the minimum
payment for credit-card loans from 5% of the total balance to
8%.  The rate will be raised to 10% in April, in compliance with
central bank rules.

                          *     *     *

Thailand's fourth largest commercial bank, Siam Commercial Bank
-- http://www.scb.co.th/-- provides a wide variety of personal  
and business banking options, including funds management, loan
and investment services, foreign currency exchange, and more.  
The bank has more than 500 branches countrywide, its total
assets added to THB814 billion as of December 31, 2005.

The Troubled Company Reporter - Asia Pacific reported on Aug.
23, 2006, that Moody's Investors Service confirmed Siam
Commercial Bank Public Company Limited's D+ bank financial
strength rating and changed its outlook to positive from stable.

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

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

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




                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Nolie Christy Alaba, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara
Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,
Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***