TCRAP_Public/070112.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  

             Friday, January 12, 2007, Vol. 10, No. 9

                            Headlines

A U S T R A L I A

ALECTUS PERSONNEL: Members' Final Meeting Slated for February 9
CLARITY NUMBER 7: To Hold Members' Meeting on February 9
CLARITY NUMBER 8: Liquidator Davies to Present Wind-Up Report
CLARITY NUMBER 9: Members to Receive Wind-Up Report on Feb. 9
CROESUS MINING: Enters into Norseman Sales Deal with Davos

CROESUS MINING: Receives Recapitalization Proposal from Ascent
CROYDON PARK: Enters Liquidation Proceedings
DALINI CONSTRUCTIONS: Schedules Final Meeting on February 9
DCR FINER: Appoints Michael G. Jones as Receiver and Manager
DEFINITIVE IT: Members to Hear Liquidator's Report on Feb. 9

GREENACRE PLUMBING: Members to Receive Wind-Up Report on Feb. 9
INTERQUEST PTY: Members' Meeting Scheduled for February 9
ROOFABILITY PTY: Courts Issue Wind-Up Order
SCCAP PTY: Members to Meet on February 9
STORAGE TECHNOLOGY: Members Opt to Liquidate Business

UFJ AUSTRALIA: Members Pass Resolution to Wind Up Firm
VAJODE PTY: Shareholders Resolve to Voluntarily Wind Up Firm
* ASIC Prosecutes 162 Company Officers Before Australian Courts


C H I N A   &   H O N G  K O N G

AMERICA ADVERTISING: First Meetings Slated for January 13
BALCANOONA LTD: Enters Voluntary Liquidation
BERKELEY, BURKE: Placed Under Voluntary Wind-Up
BT ASIA: Shareholders Opt to Close Operations
CENTRE ENTERPRISES: Creditors' Proofs of Debt Due on Feb. 7

DICKSON CONSTRUCTION: Creditors & Contributories to Meet Jan. 17
EASTERN BROADCASTING: Rebar's Filing No Major Impact on Ratings
HEAVY POWER: Court Sets Wind-Up Hearing on February 14
HILL SOURCE: Appoints Joint Liquidators
HITACHI ELECTRIC: Names Chang Kwok Ting as Liquidator

INTERCARGO INSURANCE: Appoints Yao Hing Kwok Danny as Liquidator
KA HING: Court Favors Wind-Up
KAI SHING: Members Appoint Bleach as Liquidator
MSC.SOFTWARE CHINA: Joint Liquidators Cease to Act
QUADRIGA ASSET: Members Agree to Liquidate Business

RAINBOW SKY: Inability to Pay Debts Prompts Wind-Up
SHANGHAI LAND: Liquidator Yeo Boon Ann Steps Aside
WORLD FIREFIGHTERS: Creditors to Prove Claims on January 29
* Bank Run No Major Impact on Taiwan Banking System, S&P Says
* China Shows Rising Influence on Global Steel Trade, Fitch Says


I N D I A

AES CORP: Increases Revolving Credit Facility to US$750 Million
DRESSER-RAND: Discloses Changes in Senior Management Team
GENERAL MOTORS: Eyes More Job Cuts and Overseas Expansion
PUNJAB NATIONAL BANK: Gets Approval for Patenting Rating Model
TATA MOTORS: Inflation Prompts Price Hike for Safari & Sumo

STATE BANK OF INDIA: Enters Tata-Corus Fray, Report Says
STATE BANK OF INDIA: Optimistic in Rural Foray; Sets up Kiosks
SYNDICATE BANK: Board to Meet on Jan. 29 for 3rd-Qtr. Financials
SYNDICATE BANK: Names Two New Directors


I N D O N E S I A

ALCATEL-LUCENT: Signs Distribution Deal With Sphinx
ALCATEL-LUCENT: Dresdner Analysts Maintain "Sell" Rating
BANK BUANA: Pefindo Upgrades Rating To "idA+" From "idA"
GOODYEAR TIRE: Moody's Affirms B1 Corporate Family Rating
NORTEL NETWORKS: UBS Analysts Maintain "Neutral" Rating

PHILLIPS-VAN HEUSEN: Reaffirms Fourth Quarter Earnings Guidance
TELKOM INDONESIA: To Launch Internet-Based TV Services in 2008
VERITAS DGC: Gets Merger Approval from Shareholders


J A P A N

AMERICAN AIRLINES: Reports 79.1% Load Factor in December
HERBALIFE: Expects to Report Higher Sales for Qtr. Ended Dec. 31
MITSUKOSHI LTD: Wants to Renew Agreement with Tiffany & Co.
NIKKO CORDIAL: Placed on Rating Monitor for Downgrading by R&I
NORTHWEST AIRLINES: Inks Agreement to Acquire Mesaba Aviation

NORTHWEST AIRLINES: MAIR Shareholder Balks at Mesaba Bid
TITANIUM METALS: Sells Valtimet Stake to ValTubes for US$75 Mil.
US AIRWAYS: Ups Offer for Delta Air to US$10.2 Billion
US AIRWAYS: S&P Retains Dev. Watch Despite Revised Delta Offer
US AIRWAYS: Reports December 2006 Traffic Results


K O R E A

HYNIX SEMICONDUCTOR: To Spend US$4.7 Bil. on Facility Expansion
SK CORP: To Revive Incheon Unit IPO, WSJ Reports
* Korea Downgrades 2007 Economic Growth Forecast


M A L A Y S I A

KAI PENG: Shareholders Approve Resolutions Set Out in AGM
KL INFRASTRUCTURE: Seeks Approval on South Korean Rail Project
KL INFRASTRUCTURE: Bursa Extends Plan Filing Deadline to Mar. 31
KL INFRASTRUCTURE: Posts MYR22-Million Net Loss for 2nd Quarter
KUMPULAN BELTON: Advisor Appeals Bursa's Extension Denial Order

LITYAN HOLDINGS: Payment Default Almost at MYR18MM as of Dec. 31
MBf CORP: Bourse Extends Plan Filing Deadline to February 8
METROPLEX BERHAD: Posts MYR17-Million Net Loss in 3rd Qtr 2006
OCI BERHAD: Still Working Out Regularisation Plan
OCI BERHAD: Stockholders Approve Various Resolutions

OCI BERHAD: Posts MYR352,000 Net Loss for September 2006 Quarter


N E W   Z E A L A N D

WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating


P H I L I P P I N E S

MANILA ELECTRIC: Stockholders to Receive Cash Dividend on Feb. 5
MANILA ELECTRIC: Reduces Tariff by PHP0.0782 per kWh from Jan.
RIZAL COMMERCIAL: To Issue 250 Million Common Shares
VICTORIAS MILLING: Auditor Raises Going Concern Doubt
* S&P Assigns "BB-" Rating to RP's Global Bonds Maturing 2032

* Continued Economic Growth May Improve Exchange Rate to US$
* RP Sustained Strong Net FDI Inflows in October, BSP Says


S I N G A P O R E

COMPACT METAL: Gets Favorable Ruling on PPG Industries Case
COMPACT METAL: Discloses Shareholders' Change of Interests
INTERSYS HOLDINGS: Creditors' Proofs of Debt Due on Feb. 5
MAE ENGINEERING: Gets SGX-ST's Approval to List and Quote Shares
PARKWAY INFORMATICS: Proofs of Debt Due on Feb. 5

PETROLEO BRASILEIRO: Launches Exchange Offer of Notes
PETROLEO BRASILEIRO: Keppel-Fels May Win P-55 Project Auction
PETROLEO BRASILEIRO: Studying Argentine Diesel Plant Development
SEE HUP SENG: Appoints Vice-Chairman and Directors
VITASENCE BIOTECHNOLOGY: Court Issues Wind-Up Order


T H A I L A N D

ASIA HOTEL: SET Lifts Suspension; Resumes Trading
THAI HEAT: Discloses Resignation of Heads
TOTAL ACCESS: Vows to Abide to New Foreign Ownership Law
TOTAL ACCESS: Plans to Sue TOT if Application Remains Unapproved


* Large Companies With Insolvent Balance Sheets

     - - - - - - - -

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

ALECTUS PERSONNEL: Members' Final Meeting Slated for February 9
---------------------------------------------------------------
The final meeting of the members of Alectus Personnel Pty Ltd
will be held on Feb. 9, 2007, at 10:00 a.m., to consider the
liquidator's account of the company's wind-up proceedings and
property disposal exercises.

The Liquidator can be reached at:

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

                    About Alectus Personnel

Alectus Personnel Pty Limited operates employment agencies.

The company is located in Canberra, ACT, Australia.


CLARITY NUMBER 7: To Hold Members' Meeting on February 9
--------------------------------------------------------
Clarity Number 7 Ltd will hold a meeting for its members on
Feb. 9, 2007, at 10:00 a.m., at Level 15, 201 Sussex Street,
Sydney in New South Wales 1171, Australia.

At the meeting, the members will receive the liquidator's
accounts on how the company was wound up and the property
disposed of.

The Liquidator can be reached at:

         Ronald George Davies
         Level 20, Darling Park Tower 2
         201 Sussex Street
         GPO Box 5085
         DX 77 Sydney New South Wales 2001
         Australia

                     About Clarity Number 7

Clarity Number 7 Limited operates offices of holding companies.

The company is located in Victoria, Australia.


CLARITY NUMBER 8: Liquidator Davies to Present Wind-Up Report
-------------------------------------------------------------
The meeting of the members of Clarity Number 8 Pty Ltd will be
held on Feb. 9, 2007, 10:00 a.m., at Level 15, 201 Sussex
Street, Sydney in New South Wales 1171, Australia.

During the meeting, Liquidator Ronald George Davies will present
a report regarding the company's wind-up proceedings and
property disposal activities.

The Liquidator can be reached at:

         Ronald George Davies
         Level 20, Darling Park Tower 2
         201 Sussex Street
         GPO Box 5085
         DX 77 Sydney New South Wales 2001
         Australia

                     About Clarity Number 8

Clarity Number 8 Pty Limited manufactures flavoring extracts and
flavoring syrups.

The company is located in New South Wales, Australia.


CLARITY NUMBER 9: Members to Receive Wind-Up Report on Feb. 9
-------------------------------------------------------------
The members of Clarity Number 9 Pty Ltd will meet on Feb. 9,
2007, at 10:00 a.m., to receive Liquidator Ronald George Davies'
account of the company's wind-up proceedings and property
disposal exercises.

The Liquidator can be reached at:

         Ronald George Davies
         Level 20, Darling Park Tower 2
         201 Sussex Street
         GPO Box 5085
         DX 77 Sydney New South Wales 2001
         Australia

                     About Clarity Number 9

Clarity Number 9 Pty Limited manufactures photographic equipment
and supplies.

The company is located in New South Wales, Australia.


CROESUS MINING: Enters into Norseman Sales Deal with Davos
----------------------------------------------------------
Croesus Mining, in a filing with the Australian Stock Exchange,
discloses that the Deed Administrators have received a number of
indicative proposals from interested parties.  A short list of
eight parties was identified for the conduct of detailed due
diligence at the Croesus Group's Norseman operations.  

After detailed due diligence by these parties, in early November
2006, the three final offers were received for the acquisition
of the Croesus Group's Norseman operations.

After extensive negotiations with each of these parties, and a
detailed documentation process, on January 3, 2007, Croesus
executed a Share Sale Agreement with Davos Gold Pty Ltd -- a
subsidiary of UK AIM Listed company Davos Resources PLC -- and
Davos Resources PLC for the sale of all the shares in Croesus'
wholly owned subsidiary company, Central Norseman Gold
Corporation Limited, subject to Deed of Company Arrangement,
together with some Croesus Group assets to be transferred into
CNGC prior to completion of the share sale.

CNGC owns and operates Australia's longest operating gold mine
in Norseman, Western Australia.  Croesus Mining notes that these
operations have continued during the course of the
Administration and Deed of Company Arrangement.

The purchase consideration for CNGC and the associated assets to
be transferred to CNGC is AU$66 million plus the assumption of
the liability in connection with Department of Industry and
Resources performance bonds and guarantees for the Norseman
project totaling AU$4.81 million.  This consideration is payable
in the form of:

   (a) cash;

   (b) shares in Davos Resources PLC; and

   (c) convertible notes to be issued by Davos Resources PLC,
       with the notes redeemable/convertible from March/April
       2008 through to March/April 2011.

The completion of the sale under the SSA is subject to a number
of conditions:

   (a) with the creditors of CNGC and Croesus primarily agreeing
       to vary the CNGC Deed of Company Arrangement and, if
       necessary, the Croesus Deed of Company Arrangement,
       respectively, to facilitate the sale;

   (b) Foreign Investment Review Board approval; and

   (c) the approval of Davos Resources PLC sharesholders.

Davos Gold Pty Lt has paid a cash deposit of AU$8 million.  
Subject to the terms of the SSA, this deposit will become non-
refundable.

Subject to satisfaction of the conditions to the SSA, completion
under the SSA is scheduled for March 30, 2007, which may be
extended at the election of the Davos Companies, and subject to
a number of conditions, to April 2007.  At which time, ownership
of CNGC will transfer to Davos Gold Pty Ltd.  Davos Gold Pty Lt
has advised Croesus that CNGC's operations at Norseman will
continue after completion, with all employees of CNGC retaining
their employment.

According to the Sydney Morning Herald, Davos will re-inject
money into Croesus, which will be left as a shell company with
barely any assets after the Norseman sale.  Croesus would then
buy other exploration opportunities, offering its shareholders
the chance to recoup at least some of their funds, the Sydney
Herald further says.

Norseman mine manager Barry Cahill will be appointed the new
chief executive of Davos, which might make further acquisitions,
the paper relates.

                      About Croesus Mining

Headquartered in Kalgoorlie, Western Australia, Croesus Mining
N.L. -- http://www.croesus.com.au/-- explores and produces gold  
through its Davyhurst and Central Norseman exploration projects.

The Troubled Company Reporter - Asia Pacific reported on July 4,
2006, that Croesus Mining has gone into administration after
failing to restructure its finances and meet its hedging debts.
Bryan Hughes and Vincent Smith, of Pitcher Partners Accountants,
Auditors & Advisors, were appointed as joint and several
administrators pursuant to Section 436A of the Corporations Act.

On July 20, 2006, creditors unanimously opted to accept a Deed
of Company Arrangement, which allows the Administrators to
pursue the possibility of restructuring Croesus Group and
realizing further value for the benefit of creditors and
shareholders, than may be received in a liquidation.


CROESUS MINING: Receives Recapitalization Proposal from Ascent
--------------------------------------------------------------
As part of the expression of interest process commenced shortly
after the appointment of Administrators on June 23, 2006,
interested parties were requested to lodge proposals for the
restructuring of the Croesus Group, or any of the companies
within the Croesus Group, including Croesus Mining.

Accordingly, Ascent Capital Holdings Pty Ltd lodged a proposal
for the recapitalization of Croesus.

This recapitalization proposal has since been detailed in a
Recapitalization Deed and which was also executed by the Deed
Administrators and Ascent on January 3, 2007.

Ascent proposes to pay AU$800,000 -- being AU$700,000 for the
benefit of secured creditors and AU$100,000 for the benefit of
unsecured creditors of Croesus -- to consolidate the existing
capital of Croesus on a 1 for 15 basis, and cause Croesus to
issue new shares to raise a minimum of AU$1.6 million.

The Recapitalization Deed is conditional on the creditors of
Croesus voting in favor of a varied Deed of Company Arrangement
to facilitate the recapitalization, as well as shareholder
approval and other matters, including the Australian Securities
Exchange giving its approval to the reinstatement of the trading
of the Croesus shares, as well as other relevant approvals in
accordance with the ASX Listing Rules and the Corporations Act.

If the Recapitalization Deed and the proposed variations to the
Croesus Deed of Company Arrangement are approved by both
creditors and shareholders, and the other conditions are
satisfied, then the Recapitalization Deed should result in a
greater return to creditors than would be the case in the
liquidation of Croesus, and the shareholders of Croesus should
benefit from the reinstatement to the ASX of the trading of
Croesus shares.

                      About Croesus Mining

Headquartered in Kalgoorlie, Western Australia, Croesus Mining
N.L. -- http://www.croesus.com.au/-- explores and produces gold  
through its Davyhurst and Central Norseman exploration projects.

The Troubled Company Reporter - Asia Pacific reported on July 4,
2006, that Croesus Mining has gone into administration after
failing to restructure its finances and meet its hedging debts.
Bryan Hughes and Vincent Smith, of Pitcher Partners Accountants,
Auditors & Advisors, were appointed as joint and several
administrators pursuant to Section 436A of the Corporations Act.

On July 20, 2006, creditors unanimously opted to accept a Deed
of Company Arrangement, which allows the Administrators to
pursue the possibility of restructuring Croesus Group and
realizing further value for the benefit of creditors and
shareholders, than may be received in a liquidation.


CROYDON PARK: Enters Liquidation Proceedings
--------------------------------------------
At a general meeting held on Dec. 20, 2006, the members of
Croydon Park Mechanical Repairs Pty Ltd passed a special
resolution to voluntarily wind up the company's operations and
appointed P. Ngan as liquidator.

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

The Liquidator can be reached at:

         P. Ngan
         Ngan & Co
         Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia

                       About Croydon Park

Croydon Park Mechanical Repairs Pty Ltd operates general
automotive repair shops.

The company is located in New South Wales, Australia.


DALINI CONSTRUCTIONS: Schedules Final Meeting on February 9
-----------------------------------------------------------
Dalini Constructions Pty Ltd, which is in liquidation, will hold
a final meeting for its members and creditors on Feb. 9, 2007,
at 9:00 a.m.

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

The Liquidator can be reached at:

         Adam Shepard
         Star Dean-Willcocks
         Level 1, 32 Martin Place
         Sydney, New South Wales 2000
         Australia
         Telephone: 9223 2944

                   About Dalini Constructions

Dalini Constructions Pty Limited -- trading as Dalini Building
Services -- is involved with the construction of highways except
elevated highway streets.

The company is located in New South Wales, Australia.


DCR FINER: Appoints Michael G. Jones as Receiver and Manager
------------------------------------------------------------
Capital Finance Australia Ltd appointed Michael G. Jones as
receiver and manager of DCR Finer Cars Pty Ltd on Dec. 30, 2006.

The Receiver and Manager can be reached at:

         Michael G. Jones
         c/o Jones Partners
         Chartered Accountants
         Australia
         Telephone:(02) 9251 5222

                        About DCR Finer

DCR Finer Cars Pty Limited -- trading as Bill Dando Finer Cars
-- is a dealer of new and used cars.

The company is located in New South Wales, Australia.


DEFINITIVE IT: Members to Hear Liquidator's Report on Feb. 9
------------------------------------------------------------
The members of Definitive IT Resources Pty Ltd will meet on
Feb. 9, 2007, at 10:00 a.m., to hear the liquidator's report of
how the company was wound up and its properties disposed of.

The Liquidator can be reached at:

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

                      About Definitive IT

Definitive IT Resources Pty Limited provides business services.

The company is located in New South Wales, Australia.


GREENACRE PLUMBING: Members to Receive Wind-Up Report on Feb. 9
---------------------------------------------------------------
The members of Greenacre Plumbing Service Pty Ltd will meet for
their final meeting on Feb. 9, 2007, at 10:00 a.m., to receive
the liquidator's report of the company's wind-up proceedings.

As reported by the Troubled Company Reporter - Asia Pacific, the
company went under a members' voluntary wind-up on May 15, 2006.

The liquidator can be reached at:

         Raymond J. Kemsley
         Raymond Kemsley & Co.
         22-26 Fisher Road, Dee Why
         New South Wales 2099
         Australia

                     About Greenacre Plumbing

Greenacre Plumbing Service Pty Ltd -- trading as Menai Plumbing
-- provides plumbing, heating, and air-conditioning services.

The company is located in New South Wales, Australia.


INTERQUEST PTY: Members' Meeting Scheduled for February 9
---------------------------------------------------------
The meetings of the members of Interquest Pty Ltd will be held
on Feb. 9, 2007, at 10:00 a.m., to consider the liquidator's
account of the company's wind-up proceedings and property
disposal exercises.

The liquidator can be reached at:

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

                      About Interquest Pty

Interquest Pty Ltd provides management-consulting services.

The company is located in New South Wales, Australia.


ROOFABILITY PTY: Courts Issue Wind-Up Order
-------------------------------------------
On Dec. 15, 2006, the Supreme Court of New South Wales and the
Federal Court of Australia issued an order to wind up the
operations of Roofability Pty Ltd.

Accordingly, Steven Nicols was appointed as liquidator.

The Liquidator can be reached at:

         Steven Nicols
         Level 2, 350 Kent Street
         Sydney, New South Wales 2000
         Australia

                     About Roofability Pty

Roofability Pty Ltd manufactures metal-asbestos-tiles and
gutters.

The company is located in New South Wales, Australia.


SCCAP PTY: Members to Meet on February 9
----------------------------------------
The members of SCCAP Pty Ltd will meet on Feb. 9, 2007, at 10:00
a.m., to receive the liquidator's account of the company's wind-
up proceedings and property disposal activities.

The Liquidator can be reached at:

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

                         About SCCAP Pty

SCCAP Pty Limited provides business services.

The company is located in New South Wales, Australia.


STORAGE TECHNOLOGY: Members Opt to Liquidate Business
-----------------------------------------------------
At a general meeting held on Dec. 21, 2006, the members of
Storage Technology of Australia Pty Ltd passed a special
resolution to voluntarily wind up the company's operations and
appointed M. C. Smith as liquidator.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9338 2666
         Web site: http://www.mcgrathnicol.com.au

                    About Storage Technology

Storage Technology of Australia Pty Ltd -- trading as Storagetek
-- provides computer related services.

The company is located in New South Wales, Australia.


UFJ AUSTRALIA: Members Pass Resolution to Wind Up Firm
------------------------------------------------------
The members of UFJ Australia Ltd met on Dec. 22, 2006, and
passed a special resolution to voluntarily wind up the company's
operations.

Subsequently, M. C. Smith was appointed as liquidator.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9338 2666
         Website: http://www.mcgrathnicol.com.au

                        About UFJ Australia

UFJ Australia Limited operates Federal Reserve banks.

The company is located in New South Wales, Australia.


VAJODE PTY: Shareholders Resolve to Voluntarily Wind Up Firm
------------------------------------------------------------
At an extraordinary general meeting held on Dec. 20, 2006, the
shareholders of Vajode Pty Ltd passed a resolution to
voluntarily wind up the company's operations and appointed
Michael G. Jones as liquidator.

In this regard, creditors are required to prove their debts by
Feb. 5, 2007, or they will be excluded from any distribution the
company will make.

The Liquidator can be reached at:

         Michael G. Jones
         Jones Partners
         Insolvency & Business Recovery
         Australia

                       About Vajode Pty

Vajode Pty Ltd -- trading as Rics Nut Warehouse and Nature's
Warehouse -- is involved with the confectionery business.

The company is located in New South Wales, Australia.


* ASIC Prosecutes 162 Company Officers Before Australian Courts
---------------------------------------------------------------
On January 10, 2007, the Australian Securities and Investments
Commission announced the successful prosecution of 162 company
officers over the last three months.  As a result, fines and
costs totaling more than AU$397,000 were imposed.

The prosecutions, concerning 310 contraventions of the
Corporations Act, follow complaints received from the general
public and business community.  The ASIC took this action over
the failure of company officers to assist liquidators and
administrators in the administration of their failed companies
and officers.  The ASIC also took action in relation to
companies that failed to update ASIC registers with the
addresses of their companies and company officers, in an attempt
to hide from creditors.

The Executive Director of Consumer Protection, Greg Tanzer said
this was an important aspect of ASIC's work and showed ASIC
focused on the conduct of a range of businesses and individuals
operating at various levels.

"The requirements of company officers are important and
necessary to protect the interests of individuals, small
businesses and creditors.  The failure of directors to fulfil
their responsibilities generally hurts creditors that have dealt
with the company which is why we pursue company directors who
don't do the right thing."

"ASIC will take action against company officers who hamper the
role of a liquidator in assessing how much the failed company
might be able to return to creditors.  Where company officers
are uncooperative and refuse to provide information on the
company's finances and history, ASIC will step in and take the
necessary action," Mr. Tanzer said.

"It's important the public continue to contact ASIC with their
complaints and concerns.  We rely heavily on information
provided by the public and are committed to acting promptly on
the complaints we receive," Mr. Tanzer further said.

The ASIC notes that these matters were prosecuted summarily
before Local and Magistrates Courts across Australia.

Information relating to all of ASIC's enforcement activities are
contained in individual media releases which can be found on the
ASIC's Web site at http://www.asic.gov.au/ Complaints can be  
lodged with the ASIC via its Web site or by writing to any of
its capital city offices across Australia:

   Manager
   National Assessment & Action
   ASIC
   GPO Box 9827
   In Your Capital City


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

AMERICA ADVERTISING: First Meetings Slated for January 13
---------------------------------------------------------
The first meetings of the creditors and contributories of
America Advertising Ltd will be held on Jan. 13, 2006, at
11:00 a.m. and 11:30 a.m., respectively.

The Troubled Company Reporter - Asia Pacific has reported that
the High Court of Hong Kong issued a wind-up order against the
company on March 23, 2005.

The liquidator can be reached at:

         Pui Chiu Wing
         805 Capital Centre
         5-19 Jardine's Bazaar
         Causeway Bay
         Hong Kong


BALCANOONA LTD: Enters Voluntary Liquidation
--------------------------------------------
At an extraordinary general meeting held on Dec. 19, 2006, the
shareholders of Balcanoona Ltd passed a special resolution to
voluntarily liquidate the company's business.

Consequently, Ying Hing Chiu and Chung Miu Yin Diana were
appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

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


BERKELEY, BURKE: Placed Under Voluntary Wind-Up
-----------------------------------------------
At an extraordinary general meeting held on Dec. 22, 2006, the
members of Berkeley, Burke (Financial Planning) Ltd passed a
special resolution to voluntarily wind up the company's
operations.

In this regard, James T. Fulton and Cordelia Tang were appointed
as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         James T. Fulton
         Cordelia Tang
         905 Silvercord, Tower 2
         30 Canton Road, Tsimshatsui
         Kowloon, Hong Kong


BT ASIA: Shareholders Opt to Close Operations
---------------------------------------------
On Dec. 27, 2006, the shareholders of BT Asia Synergies Ltd
passed a special resolution to voluntarily wind up the company's
operations.

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

The Joint and Several Liquidators can be reached at:

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


CENTRE ENTERPRISES: Creditors' Proofs of Debt Due on Feb. 7
-----------------------------------------------------------
The creditors of Centre Enterprises Ltd are required to submit
their proofs of debt to Liquidator Huen Ho Yin by Feb. 7, 2007.

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

The Liquidator can be reached at:

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


DICKSON CONSTRUCTION: Creditors & Contributories to Meet Jan. 17
----------------------------------------------------------------
The creditors and contributories of Dickson Construction
(Maintenance) Ltd will meet on Jan. 17, 2007, at 10:00 a.m. and
11:00 a.m., respectively.

As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Hong Kong issued an order to wind up the company's
operations on Oct. 4, 2006.

The liquidator can be reached at:

         E. T. O'Connell
         10/F, Queensway Government Offices
         66 Queensway
         Hong Kong


EASTERN BROADCASTING: Rebar's Filing No Major Impact on Ratings
---------------------------------------------------------------
Fitch Ratings said on January 9, 2007, that the current ratings
and Outlook for Taiwan-based Eastern Broadcasting Co., Ltd are
not affected by the filings for corporate reorganization on
January 4, 2007, by China Rebar Company, Ltd and Chia Hsin Food
& Synthetic Fiber Co., Ltd., both members of the Rebar Group.  
RBG directly owns 2.18% of EBC.

Fitch's ratings for Eastern Broadcasting are:

   -- Long-term foreign and local currency Issuer Default
      ratings: BB/Stable

   -- National Long-term rating: BBB+(twn)/Stable

   -- National Short-term rating: F2(twn)

   -- NT$50 million senior unsecured domestic bond due June
2008:
      BB and BBB+(twn)

   -- NT$300m senior unsecured domestic bond due July 2008: BB
      and BBB+(twn)

Fitch said that any negative impact on EBC will be very limited
as EBC, a member of the Eastern Multimedia Group, has kept its
dealings with RBG at arm's length and does not make any debt
guarantee or inter-company loan to RBG or its affiliates,
despite the close personal relationship between the chairman of
EMG and senior executives of CRC and CHFSF.

EBC has also indicated that it has no intention of providing
future financial support to RBG.  The only direct exposure to
CRC and CHFSF relates to outstanding accounts receivables of
NT$2.6 million.  Although EBC has about NT$9.34 million in
deposits with two RBG-related financial institutions that are
facing a loss of public confidence due to the above
reorganization, Fitch notes that they have been placed under
government control and that all deposits will be honoured.

Fitch notes that the financial profile of EBC has remained
healthy.  For the last 12 months ended June 2006, EBC's revenue
increased 2.0% over FY05 to NT$6.3 billion, while operating
EBITDAR strengthened 0.9% to NT$2.4 billion.  Its leverage in
terms of total adjusted debt net of cash/operating EBITDAR was
2.9x for the period.  Liquidity was supported by cash flow from
operations, which equaled its debt due within one year.  In the
second half of 2006, EBC received NT$1.8 billion from the
private offering of 112 million shares to Carlyle Group, with
the proceeds used to pay down NT$1 billion in debt and for
working capital needs.

Established in 1997, EBC maintains a leading market position in
the cable television channel operation segment in Taiwan.  Local
investors, including Eastern Multimedia Group and others, own
60% of EBC, while Carlyle Group holds the remaining 40%.


HEAVY POWER: Court Sets Wind-Up Hearing on February 14
------------------------------------------------------
The High Court of Hong Kong will hear the wind-up petition
against Heavy Power Electronics Ltd on Feb. 14, 2007, at
9:30 a.m.

Pang Yiu Kwong filed the petition with the Court on Dec. 13,
2006.

Pang Yiu's solicitor can be reached at:

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


HILL SOURCE: Appoints Joint Liquidators
---------------------------------------
On Dec. 23, 2006, Chan Chi Bor and Li Fat Chung were appointed
as joint and several liquidators of Hill Source Ltd.

The Joint and Several Liquidators can be reached at:

         Chan Chi Bor
         Li Fat Chung
         Unit 1202, 12/F Malaysia Building
         No. 50 Gloucester Road, Wanchai
         Hong Kong


HITACHI ELECTRIC: Names Chang Kwok Ting as Liquidator
-----------------------------------------------------
Chang Kwok Ting was appointed as liquidator of Hitachi Electric
Service Co. (Hong Kong) Ltd by a written special resolution of
the company passed on Dec. 29, 2006.

The Liquidator can be reached at:

         Chang Kwok Ting
         Certified Public Accountant
         22/F, Guangdong Investment Tower
         148 Connaught Road Central
         Hong Kong


INTERCARGO INSURANCE: Appoints Yao Hing Kwok Danny as Liquidator
----------------------------------------------------------------
Yao Hing Kwok Danny was appointed as liquidator of Intercargo
Insurance Company H.K. Ltd by virtue of a special resolution of
the company passed on Dec. 29, 2006.

The Liquidator can be reached at:

         Yao Hing Kwok, Danny
         3J Evelyn Towers
         38 Cloudview Road, North Point
         Hong Kong


KA HING: Court Favors Wind-Up
-----------------------------
The High Court of Hong Kong issued a wind-up order against Ka
Hing Transportation Engineering Company Ltd on Dec. 20, 2006.

According to the Troubled Company Reporter - Asia Pacific, Siu
Wing Chuen filed the wind-up petition against the company on
Oct. 25, 2006.


KAI SHING: Members Appoint Bleach as Liquidator
-----------------------------------------------
The members of Kai Shing Chemicals Ltd met on Dec. 22, 2006, and
passed a special resolution to appoint Malcolm Andrew Bleach as
liquidator.

The Liquidator can be reached at:

         Malcolm Andrew Bleach
         Rooms 1501-3, Far East Consortium Building
         121 Des Voeux Road, Central
         Hong Kong


MSC.SOFTWARE CHINA: Joint Liquidators Cease to Act
--------------------------------------------------
Ying Hing Chiu and Chung Miu Yin Diana ceased to act as joint
and several liquidators of MSC.Software China (Hong Kong) Ltd on
Jan. 2, 2007.

As reported by the Troubled Company Reporter - Asia Pacific, the
liquidators presented their wind-up report during the members'
meeting on Oct. 23, 2006.

The former Liquidators can be reached at:

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


QUADRIGA ASSET: Members Agree to Liquidate Business
---------------------------------------------------
The members of Quadriga Asset Management Ltd met on Dec. 27,
2006, and resolved to voluntarily wind up the company's
operations.

Subsequently, Liu Kam Lung was appointed as liquidator and was
authorized to divide the company's assets.

The Liquidator can be reached at:

         Liu Kam Lung
         G/F, 119 Waterloo Road
         Kowloon
         Hong Kong


RAINBOW SKY: Inability to Pay Debts Prompts Wind-Up
---------------------------------------------------
On Dec. 28, 2006, the creditors of Rainbow Sky Enterprises Ltd
met and passed a special resolution to wind up the company's
operations due to its liabilities.

In this regard, Ng Kwok Wai and Lui Chi Kit were appointed as
joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Ng Kwok Wai
         Lui Chi Kit
         Unit A, 14/F JCG Building
         16 Mongkok Road, Mongkok
         Kowloon, Hong Kong


SHANGHAI LAND: Liquidator Yeo Boon Ann Steps Aside
--------------------------------------------------
On Dec. 15, 2006, Yeo Boon Ann ceased to act as joint and
several liquidator of Shanghai Land Holdings Ltd.

On the same day, the company's members received the liquidator's
wind-up report, the Troubled Company Reporter - Asia Pacific
recounts.


The former Joint and Several Liquidator can be reached at:

         Yeo Boon Ann
         18/F, Two International Finance Centre
         8 Finance Street, Central
         Hong Kong


WORLD FIREFIGHTERS: Creditors to Prove Claims on January 29
-----------------------------------------------------------
Liquidator Ho Siu Kau requires the creditors of World
Firefighters Games and Conference 2006 Ltd to submit their
proofs of claim by Jan. 29, 2007.

Failure to prove claims by the due date will exclude a creditor
from sharing in any distribution the company will make.

The Liquidator can be reached at:

         Ho Siu Kau
         Room 1406, China Insurance Group Building
         141 Des Voeux Road, Central
         Hong Kong


* Bank Run No Major Impact on Taiwan Banking System, S&P Says
-------------------------------------------------------------
On January 10, 2007, Standard & Poor's Ratings Services said
that because of effective government action, the recent small
deposit run on the Chinese Bank is not expected to have a
significant impact on system confidence or stability in Taiwan.

Chinese Bank is part of the Rebar Asia Pacific Group.  As a
result of the group's financial troubles, Great Chinese Bills
Finance Corp., an affiliate that mainly deals with domestic
institutional creditors, failed to honor payment obligations due
on Jan. 5, 2007.  Panic among depositors was triggered by an
announcement on Jan. 4, 2007, that two other Rebar group
affiliates -- China Rebar Co. and Chia-Hsin Food and Synthetic
Fiber Co.-- had filed for insolvency protection.
     
The Taiwan government tends to support imperiled retail deposit-
taking financial institutions.  The island's financial regulator
ordered taskforce to take over the bank on Jan. 6, 2007, and has
vowed to protect its depositors, which account for less than 1%
of total banking system deposits.

The regulator also instructed Taiwan Cooperative Bank Ltd. and
Cathay United Bank Co. Ltd. (A/Stable/A-1) to jointly assist in
the operations of Great Chinese BFC, primarily to ensure
adequate liquidity management.
     
It is uncertain how far the government will cover the non-
deposit obligations of Chinese Bank and Great Chinese BFC --
including obligations held by institutional investors and other
creditors -- or those of other imperiled financial institutions
in the future.  The regulator has in the past exerted its
influence over some larger mainly state-run banks to ease
liquidity pressure on some stressed financial institutions.  
However, along with the privatization of state-run banks and
deregulation, the regulator's ability to offer full-scale
support is weakening.
     
The possible collapse of the highly leveraged Rebar group is not
expected to hit the banking industry too hard.  Lending to the
two insolvent group affiliates is estimated at only 0.2% of
total outstanding loans, while overall lending to the Rebar
group is estimated at less than 1%.  We estimate Taiwan's ratio
of non-performing assets stood at 3%-4% at the end of 2006,
which incorporates some of the group's low-quality assets.
     
Given the vulnerable financial profiles of most Rebar group
members, the majority of banks doing business with the group
have kept a lid on their lending and built up additional loss
reserves.  The impact on Mega International Commercial Bank Co.
Ltd., one of the largest creditors to the group, is expected to
be minimal because its exposure accounts for only a small
proportion of its total business.  Mega Bank's official non-
performing loan ratio was only 1% and its loan loss coverage
ratio was a robust 102% at the end of October 2006.

Mega Bank's moderate profitability and satisfactory
capitalization are likely to absorb any potential increase in
credit costs.


* China Shows Rising Influence on Global Steel Trade, Fitch Says
----------------------------------------------------------------
Fitch Ratings commented on January 10, 2007, that China's steel-
makers have shown strong resolve in their bid to lead the steel
industry in their recent negotiations for the contract price of
iron ore.

As the sole representative of the Chinese steelmakers, Baoshan
Iron & Steel Co. took an active role at an early stage in the
negotiation process and succeeded in being the first steel-maker
to settle the benchmark price with a 9.5% increase from the 2006
level.

The agency views that the early settlement of the iron ore price
will be positive for market participants in terms of eliminating
uncertainty for the steel-makers, and is also a sign that China
is determined to improve its market influence in the global
steel industry.

The decisive and highly efficient negotiation process may be
seen as a reaction by China to the announcement that the world's
second and third largest steel-makers, Japan's Nippon Steel and
South Korea's POSCO, will hold joint discussions with iron ore
providers to leverage their buying power.

"The fierce competition among global steel-makers and the
ongoing demand-supply imbalance has again benefited major
upstream iron ore suppliers, which led to the new contract price
being struck at the upper end of the forecast range of 5% to
10%", said Danny Chen, associate director of Fitch's Corporate
ratings team in Beijing.

"However, Fitch expects that this benchmark will turn out to be
the de facto global standard, which indicates Baosteel's growing
importance in the negotiation process and reflects its delegated
authority from the Chinese government, as well as cohesion
between the various industry bodies to achieve a unified stance
representing China's steel-makers.

This will help to support China's credibility as a leading
player in the global steel sector," added Mr. Chen.

The fact that the price hike reached the upper end of the
anticipated range indicates the ongoing strength of demand from
the Chinese market and the continuing tight global supply of
iron ore.  Fitch notes that China's steel mills have intensified
their efforts to mine domestic iron ore deposits in an attempt
to lessen their dependence on imported ore, which saw the
domestic supply of iron ore grow by some 28.8% to 644 million
tonnes in 2006, with a further rise of 10% expected in 2007.

The dynamics of supply and demand will be more balanced in 2007
and into 2008.  However, the low iron content of Chinese ore
means that China will remain heavily dependent on imports.  
Fitch expects that China's crude steel output will grow 15%
year-on-year to 480 million tonnes in 2007, which implies an
additional 80 million tonnes of demand for iron ore.

The China Iron & Steel Association predicts that China will
import a total of 355 million tonnes of iron ore in 2007,
indicating a 10% increase year-on-year.

Although raw materials prices like iron ore, coking coal and
electricity have risen consistently for the last three years,
the impact should remain manageable for China's major steel
companies.  The 9.5% hike in the iron ore price will only raise
production costs by RMB60/tonne, or reduce gross margins by less
than 2%, and the impact will be further lessened given the
likely ongoing appreciation of the renminbi.  Also, the impact
will be much less for high value-added producers like Baosteel,
Angang Steel Company Limited and Wuhan Iron & Steel Co., as
their gross margins are much higher than the commodity steel
producers.

However, looking ahead, the Chinese steel market will be
affected by some unfavorable factors in 2007, including new
production capacity coming on-stream, rising trade tensions over
steel exports, and tightening macroeconomic policies in the
Chinese real estate market.

"With China's discount to U.S. and European steel prices
narrowing, and export growth slowing, domestic spot prices may
be capped and there may be further downside pressure going
forward," Mr. Chen said.


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

AES CORP: Increases Revolving Credit Facility to US$750 Million
---------------------------------------------------------------
AES Corporation disclosed in a regulatory filing with the U.S.
Securities and Exchange Commission that on Dec. 6 and Dec. 26,
2006, it entered into amendments for its senior secured credit
facility.

The amendments are part of a single plan and increase the size
of the revolving credit facility from US$650 million to
US$750 million.

The amendment was entered into by:

    * AES Corp., as borrower;

    * AES Hawaii Management Company, Inc., AES New York Funding,
      L.L.C., AES Oklahoma Holdings, L.L.C., and AES Warrior Run
      Funding, L.L.C., as Subsidiary Guarantors;

    * Citicorp Usa, Inc., as Agent and as a Revolving Fronting
      Bank;

    *  Citibank N.A., as Collateral Agent;

    * Bank of America, N.A., Deutsche Bank Trust Company
      Americas, Lehman Commercial Paper, Inc., UBS AG, Stamford
      Branch, Union Bank California, N.A., CALYON - New York
      Branch, and Societe Generale - New York Branch, as
      Revolving Fronting Banks; and

    * Barclays Bank PLC, as a Committing Bank.

A full-text copy of Amendment No. 9 to the Third Amended and
Restated Credit and Reimbursement Agreement, dated as of
Dec. 29, 2006, is available for free at:

           http://ResearchArchives.com/t/s?182c

A full-text copy of Amendment No. 8 to the Third Amended and
Restated Credit and Reimbursement Agreement, dated as of Dec. 6,
2006, is available for free at:

          http://ResearchArchives.com/t/s?182d

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 China, India and Sri Lanka.

                          *     *     *

Fitch affirmed The AES Corporation's Issuer Default Rating at
'B+'. Fitch also affirmed and withdrew the ratings for the
company's junior convertible debt.  Fitch said the rating
outlook for all remaining instruments is stable.

In March 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on diversified energy company The AES
Corp. to 'BB-' from 'B+'.  S&P said the outlook is stable.

Moody's affirmed the ratings of The AES Corporation, including
its Ba3 Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


DRESSER-RAND: Discloses Changes in Senior Management Team
---------------------------------------------------------
Dresser-Rand Group Inc. disclosed that the company will make
changes in responsibilities for three members of its senior
management team.

"We believe that the actions we are announcing are important to
continue to develop our successful leadership team, as
rotational assignments are a fundamental part of our development
efforts, said Dresser-Rand's President and Chief Executive
Officer, Vincent R. Volpe, Jr.  These changes will occur during
the first quarter of this year to allow for orderly transition
in each area."

Jean-Francois Chevrier, currently Vice President and General
Manager, European Operations, will become Vice President and
General Manager, North American Operations.  Mr. Chevrier will
have responsibility for the Burlington Iowa, Olean, Wellsville,
and Painted Post, New York operations, including engineering and
drafting centers.  Additionally, he will have responsibility for
the global Research and Development Engineering organization.  
His sixteen years experience with Dresser-Rand includes
operations and engineering positions for Turbo Products,
including Director of Special Projects in Olean, New York. Prior
to joining Dresser-Rand, he worked in operations management for
a subsidiary of Peugeot in its military and aerospace equipment
businesses.  Mr. Chevrier has a BSME from Tarbes University in
France.  He and his wife Marie-Christine will relocate to Olean,
New York.

Walter J. Nye, currently Executive Vice President, Product
Services Worldwide, will assume responsibility for the European
Served Area as the Vice President and General Manager.  Mr. Nye,
who brings over 31 years of experience in Dresser-Rand, will
have responsibility for the German, Norwegian, and French
operations.  Additionally, he will assume responsibility for
Field Operations, New Unit Sales, and Product Services Sales
organizations in Europe.  His prior experience with Dresser-Rand
includes positions as Controller, Turbo Products Division,
President of the Services Division and a variety of management
positions in accounting and operations.  Mr. Nye has a BA from
St. Bonaventure University.  He and his wife Michele will
relocate to Le Havre, France.

Christopher Rossi, currently Vice President and General Manager,
North American Operations, will become Executive Vice President,
Product Services Worldwide, assuming responsibility for all
aftermarket parts and services sales.  Mr. Rossi will also have
responsibility for the Controls Strategic Business Unit, and
Dresser-Rand's merger and acquisition initiatives Over the past
20 years with Dresser-Rand, Mr. Rossi has held various
leadership positions within Dresser-Rand, including General
Manager, Painted Post Operations, Vice President, Supply Chain
Management Worldwide and several operations and engineering
positions within the Reciprocating Compressor Division.  Mr.
Rossi has an MBA in Corporate Finance from the University of
Rochester, and a BSME from Virginia Tech. He and his wife
Georgia and their two children will relocate to Houston, Texas.

Dresser-Rand is among the largest suppliers of rotating
equipment solutions to the worldwide oil, gas, petrochemical,
and process industries.  It operates manufacturing facilities in
the United States, France, Germany, Norway and India, among
others, and maintains a network of 24 service and support
centers covering 105 countries.

                          *     *     *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


GENERAL MOTORS: Eyes More Job Cuts and Overseas Expansion
---------------------------------------------------------
General Motors Corp. warned of more job cuts in 2007, BBC News
reports citing Chief Executive Rick Wagoner.

The company shut down 12 sites and shed over 34,000 jobs to trim
US$9 billion from operating costs in 2006, following a
US$10.6 billion net loss in 2005.

Despite the job cuts, GM will continue its expansion overseas,
where sales outperformed its U.S. business for third straight
year.  GM is struggling to keep up with Asian rivals in the
U.S., where company sales dipped 8.7% in 2006 while pursuer
Toyota posted a 13% hike in sales, BBC News relays.

"I like being number one, and I think our people take pride in
it," Mr Wagoner told BBC News.  "We're not going to sit back and
let somebody else pass us by."

Mr. Wagoner said that GM would improve productivity,
profitability and its competitive edge to remain as the world's
leading car producer.  The company is also rolling out new
vehicles as well as unveiling its new Camaro convertible concept
car at the Detroit Motor Show in the weekend.

The company will also negotiate for more concessions on a new
four-year contract with United Auto Workers (UAW) Union, as it
focuses on lightening its health care burden, BBC News reports.

"We are not fully competitive yet," Mr. Wagoner said. "We need
to make progress in the 2007 negotiations.

"These are tough issues. . . and health-care has put us at a
US$5 billion disadvantage.  The structure we have doesn't work
in today's global industry."

GM plans to hike its average transaction price, mainly through
ongoing reductions in discount offers.

BBC News relays that GM's health care costs account for US$1,500
of each new car compared to US$200 at Toyota.

                      About General Motors

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

                          *     *     *

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

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


PUNJAB NATIONAL BANK: Gets Approval for Patenting Rating Model
--------------------------------------------------------------
Punjab National Bank got the necessary approvals for patenting
its rating model, PNB Trac, for its entire category of lending,
The Financial Express reports.

According to the report, PNB developed 13 models for rating
different categories of borrowers, which rating models have been
deployed bank wide through a Web-enabled software.  

PNB would be able to do credit ratings on its own for its
lendings, the newspaper says.  In terms of rating, the bank
already has data for default rates for the last five years.

PNB believes that the default rates and migration matrix are
comparable to that of leading credit international rating
agencies such as Standard & Poor's, Moody's and Fitch, and those
with international benchmarks.

The newspaper notes that PNB is among few banks that have rated
their entire loan portfolio.  The loans with exposure above
INR20 lakh have been rated individually while loans with
exposure under INR20 lakh are rated segment-wise on portfolio
basis in terms of Basel-II accord, the paper added.

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.


TATA MOTORS: Inflation Prompts Price Hike for Safari & Sumo
-----------------------------------------------------------
Tata Motors Ltd raised the prices of its Safari sports utility
vehicle and Sumo multi-utility vehicle by as much as INR15,000,
domain-b.com reports.

According to the report, Safari would be pricier by INR10,000 to
INR15,000, while Sumo variants would be costlier by INR5,000.

Rising input costs and other inflationary prices prompted Tata
Motors to hike the prices.

Tata Motors launched on Jan. 10 a new range of its Indica V2
hatchback in petrol and diesel variants.  The company priced the
new Indica range between INR2.55 lakh and INR3.49 lakh for the
petrol version, while Indica V2 diesel would be priced between
INR3.22 lakh and INR4.13 lakh

Tata Motors Limited -- http://www.tatamotors.com/-- is mainly  
engaged in the business of automobile products consisting of all
types of commercial and passenger vehicles, including financing
of the vehicles sold by the Company.  The Company's operating
segments consists of Automotive and Others.  In addition to its
automotive products, it offers construction equipment,
engineering solutions and software operations.  During the
fiscal year ended March 31, 2006, the Company sold 454,129
vehicles. Its commercial vehicle sales were 245,022 in the
domestic and overseas market in fiscal 2006.  The Company
created a new segment in the domestic commercial vehicle market
by launching a mini truck, TATA ACE in May 2005.  It achieved a
sale of 209,107 passenger vehicles in the domestic and overseas
market (including the sale of 209 Fiat cars) in fiscal 2006.
Tata Motorfinance, the vehicle-financing business of the
Company financed 96,247 new vehicles during fiscal 2006.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services raised its
corporate credit ratings for Tata Motors to 'BB+' from
'BB'.  The outlook is stable.  At the same time, Standard &
Poor's has raised its rating on Tata Motors' senior unsecured
notes to 'BB+' from 'BB'.

Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.


STATE BANK OF INDIA: Enters Tata-Corus Fray, Report Says
--------------------------------------------------------
The State Bank of India is working on the Tata-Corus deal, The
Financial express reports, citing SBI Chairman Op Bhatt.

Steel producer Tata Steel Ltd. is currently competing to acquire
Corus Group Plc.  Recent reports reveal that its rival for the
Anglo-Dutch steelmaker is Brazil's Companhia Siderurgica
Nacional.

Mr. Bhatt told the newspaper that SBI will be one of the funding
entities for Tata should the Corus deal prosper.  The amount of
funding is yet to be decided, he added.

According to the newspaper, the deal could mark the entry of SBI
into funding takeover deals.

Mr. Bhatt admitted that the bank has been involved in in global
acquisition deals but the participation is yet "very small."

"We will be bigger now.  We are now looking at the whole issue,"
FE quoted Mr. Bhatt as saying.

Deals like Tata-Corus size require that the bank should have
several million dollars of money ready with itself or it should
have the ability to raise that kind of money, Mr. Bhatt pointed
out.

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.


STATE BANK OF INDIA: Optimistic in Rural Foray; Sets up Kiosks
--------------------------------------------------------------
The State Bank of India showed optimism on its venture into the
rural business when it decided to set up 5,000 to 6,000 rural
kiosks.

In addition to the rural kiosks, the bank also commenced new
rural pilot initiatives that encourage banking habits among the
rural masses, Umesh Kumar of The Financial Express relates.

The bank started the pilot projects in Indian states like
Mizoram, Uttaranchal, Tamil Nadu, Andhra Pradesh, Kerala, SBI Op
Bhatt, chairman & managing director, told the newspaper.  The
bank plans to extend the projects all over the country.

"Our rural branch, wherever they are, takes care of the complete
banking needs of the clientele there besides the much hyped
agriculture lending only," the paper quoted the CMD as saying.

Mr. Bhatt sees the rural business as enormous pointing out that
there are around 6.5 lakh villages in India, many of which
doesn't have roads or electricity.

SBI's growth for the agriculture funding has been at the rate of
30-35% per year for the last three years, Mr. Bhatt added.

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.


SYNDICATE BANK: Board to Meet on Jan. 29 for 3rd-Qtr. Financials
----------------------------------------------------------------
Syndicate Bank Ltd's board will hold a meeting on Jan. 29, 2007,
to take on record the bank's unaudited financial results for the
third quarter ended Dec. 31, 2006.

As previously reported in the Troubled Company Reporter - Asia
Pacific, Syndicate Bank's net profit for the quarter ended
Sept. 30, 2006, soared to INR2.051 billion from the
INR1.752 billion gained in the corresponding quarter in 2005.

Syndicate Bank Ltd  -- http://syndicatebank.in/-- provides a  
range of banking services.  The bank's services include
deposits, loans, recoveries and electronic funds transfer.  The
bank has also tied up with United India Insurance Company to
provide general insurance.  As of March 31, 2006, the bank had
2006 branches.  The bank has 38 specialized branches, which
focus on business segments, such as small and medium
enterprises.

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


SYNDICATE BANK: Names Two New Directors
---------------------------------------
In a filing with the Bombay Stock Exchange, Syndicate Bank
discloses the central government's naming of two new directors:

   1. Suresh Kumar Rustagi, as Workmen Employee Director on the
      bank's board; and

   2. Kawaljit Singh Oberoi, as Part-Time Non-Official Director
      on the bank's board.

Mr. Rustagi's appointment will be effective for three years from
the date of his appointment -- Jan. 3, 2007 -- or until his
successor is appointed or till he ceases to be a workmen
employee of the bank whichever is earliest.  Mr. Oberio will
have a term of three years from Jan. 2, 2007, or until further
order whichever is earlier.

Syndicate Bank Ltd  -- http://syndicatebank.in/-- provides a  
range of banking services.  The bank's services include
deposits, loans, recoveries and electronic funds transfer.  The
bank has also tied up with United India Insurance Company to
provide general insurance.  As of March 31, 2006, the bank had
2006 branches.  The bank has 38 specialized branches, which
focus on business segments, such as small and medium
enterprises.

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


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

ALCATEL-LUCENT: Signs Distribution Deal With Sphinx
---------------------------------------------------
Alcatel-Lucent said that it has expanded its U.K. channel
coverage with the signing of a distribution deal with Sphinx,
one of the UK's foremost independent distributors.  This deal
forms a central part of Alcatel-Lucent's new strategy to
significantly extend its UK channels coverage through the
recruitment of leading channel partners.  Sphinx will distribute
Alcatel-Lucent's enterprise voice solutions to its own data
resellers and also to new and existing Alcatel-Lucent voice
resellers with an ultimate goal of providing end users in the UK
with a viable alternative for voice and data infrastructure
solutions.

While offering a full portfolio of complementary IT products,
Sphinx will not carry any competitive products to Alcatel-
Lucent's enterprise voice solutions.  This focus will enable
Sphinx to deliver superior marketing initiatives, training
programs, and technical support, all of which will help
resellers to improve their enterprise offerings and boost their
revenues.  A dedicated team has also been set up within Sphinx
to assist Alcatel-Lucent resellers with business development
activities as well as with pre- and post-sales technical
support.

By supplying Alcatel-Lucent's complete portfolio of enterprise
IP telephony solutions -- including the Alcatel-Lucent OmniPCX
Enterprise, designed for large enterprises, and the Alcatel-
Lucent OmniPCX Office, optimized for small-to-medium sized
businesses -- Sphinx is intent on offering customers the ability
to choose the solutions from the marketplace that best fit their
needs.  Sphinx will also offer Alcatel-Lucent's range of contact
center solutions and unified communication applications.

"We are very enthusiastic about the signing of this agreement
with Sphinx.  It is a highly strategic move for the new Alcatel-
Lucent in the UK; the current UK IP telephony market is widely
predicted to grow, so it's vital we have a distribution partner
that is focused on helping resellers deliver solutions that
provide true value and choice to end users while closing more
deals," said Graeme Allan, for Alcatel-Lucent enterprise
activities in UK and Ireland.  "Sphinx's commitment to Alcatel-
Lucent as its sole voice vendor is key to the expansion of our
UK channel operations.  While multi-vendor distributors have
little or no incentive to promote competing solutions to the
same reseller, Sphinx has no split loyalties, and will champion
Alcatel-Lucent solutions to all voice resellers."

"Convergence is having a wholesale affect on the way the channel
operates; businesses are looking to integrate IT, voice and data
systems onto a single network so it's crucial that resellers
expand their expertise," said Mark Hatton, managing director,
Sphinx.  "We spent a considerable time looking at the best way
to enter the IP telephony market and are delighted to be working
with Alcatel-Lucent, one of the global leaders.  By adding
Alcatel-Lucent voice solutions to our security and networking
product portfolio, our resellers now have access to a range of
best-of-breed solutions that meets all the technology needs of
today's enterprise."

                          About Sphinx

As one of the UK's leading independent IT Distributors, Sphinx
provides technology products from market leaders and innovators
in the converging areas of Security, Networking and Telecoms.
These products are supported and complemented by a substantial
range of value added services which assist Reseller partners to
successfully develop appropriate, cost-effective technology
solutions, right for their market and their customers.

                      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.


ALCATEL-LUCENT: Dresdner Analysts Maintain "Sell" Rating
--------------------------------------------------------
Analysts at Dresdner Kleinwort maintain their "sell" rating on
Alcatel-Lucent, News Ratings reports.

According to the report, the target price is set to EUR8.

In a research note published on Jan. 9, 2007, the analysts
mentioned that Tellabs' sales and earnings warning for the
December quarter is a cause for concern regarding Alcatel-
Lucent's first combined earnings results, scheduled to be
reported on February 9, the report says.

The report points out that the company's near-term performance
is likely to be negatively impacted by the overspending in North
America and Bell South's capex freeze prior to its merger AT&T,
the analysts say.

                      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.


BANK BUANA: Pefindo Upgrades Rating To "idA+" From "idA"
--------------------------------------------------------
P.T. Pefindo Credit Rating Indonesia upgraded its rating for PT
Bank Buana Indonesia Tbk to "idA+" from "idA", while the Bank's
subordinated debt I/2004 amounting to IDR300 billion is upgraded
to "idA" from "idA-".

The rating upgrades reflect a strengthening business position
following the presence of UOB as the majority shareholder.  The
upgrades also reflect the Bank's strong capital base and
improving profitability level.  However, these strengths have
been partly offset by the Bank's weakening asset quality during
the years under review.

As of 1H06, the Bank's total assets amounted to
IDR17.4 trillion, represented about 1.2% market share of the
banking industry's total assets.  BBIA has also been well known
as one of conservative banks in the country with a strong
franchise in trading sector.  BBIA was established in 1956 as a
result of a merger Bank Pembinaan Nasional, Bank Kesejahteraan
Masyarakat, and Bank Aman Makmur.  As of June 30, 2006, the
Bank's shareholders structure consisted of PT Sari Dasa Karsa,
UOB Int. Inv. Private Ltd, Eddy Muljanto, Karman Tandanu and
Public.  To support its daily banking activities, as of
September 2006, BBIA employed 5,514 staffs to operate 202
offices in 29 major cities in Indonesia.  In addition to 123
self owned ATMs, the Bank's ATM network has also been connected
to ALTO, ATM Bersama, Visa Plus, and Prima (BCA) networks.

Headquartered in Jakarta, PT Bank Buana Indonesia Terbuka  --
http://www.bankbuana.com-- provides public deposits, investment   
portfolio, and other financial services, including: demand,
savings and time deposits, Bank Indonesia promissory notes,
bonds, consumer loans, retail commercial loans, and corporate
loans.  Other financial services include exports, imports,
transfers, collection, issuing of bank guarantees and foreign
currency transactions.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
December 15, 2006, Fitch Ratings affirmed Bank Buana's:

   -- Long-term foreign currency Issuer Default rating at 'BB-';

   -- Long-term local currency Issuer Default rating at 'BB-';

   -- Short-term foreign currency rating at 'B';

   -- Individual rating at 'C/D'; and

   -- Support rating at '3'.


GOODYEAR TIRE: Moody's Affirms B1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1.  Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed as
was the company's Speculative Grade Liquidity rating of SGL-2.
The outlook has reverted to stable from negative.

The actions follow the resolution of Goodyear's organized labor
contract with the USW in North America and more detailed
disclosure of the settlement's applicable terms and benefits.
Moody's would expect the company over time to achieve
significant efficiencies from the new contract and other
restructuring actions.  Collectively, those developments will
position the company's metrics in the B1 rating category. In the
near-term, however, debt could peak at higher levels from the
ramp-up of production, re-structuring expenditures from
announced plant closures, and funding the contribution to a new
VEBA account.  Although improvement in Goodyear's performance is
weighted towards 2008 and beyond, Moody's is comfortable that
the company has sufficient liquidity to weather an interim
period, and, thereafter, its coverage and leverage ratios would
be on a recovery path from an enhanced cost structure, increased
productivity, lower legacy costs and stream-lined manufacturing
footprint.

Ratings affirmed:

Goodyear Tire & Rubber Company

   -- Corporate Family Rating, B1

   -- Probability of Default, B1

   -- first lien credit facility, Ba1, LGD 2, 10%

   -- second lien term loan, Ba3, LGD 3, 35%

   -- third lien secured term loan, B2, LGD 4, 63%

   -- 11% senior secured notes, B2, LGD 4, 63%

   -- floating rate senior secured notes, B2, LGD 4, 63%

   -- 9% senior notes, B2, LGD 4, 63%

   -- 8 5/8 % senior unsecured notes due 2011, B2, LGD-4, 63%

   -- floating rate unsecured note due 2009, B2, LGD-4, 63%

   -- 8 1/2% senior notes, B3, LGD 6, 94%

   -- 6 3/8% senior notes, B3, LGD 6, 94%

   -- 7 6/7% senior notes, B3, LGD 6, 94%

   -- 7% senior notes, B3, LGD 6, 94%

   -- senior unsecured convertible notes, B3, LGD 6, 94%

   -- Speculative Grade Liquidity rating, SGL-2

Goodyear Dunlop Tyres Europe

   -- Euro revolving credit facilities, Ba1, LGD 2, 10%

   -- Euro secured term loan, Ba1, LGD 2, 10%

The last rating action was on November 16, 2006, at which time
ratings on the company's US$1.0 billion of unsecured notes with
maturities in 2009 and 2011 were assigned.

Goodyear has stated that the terms of the new labor contract
along with other actions announced during 2006 and early January
2007 will enable it to surpass its goals of reducing high cost
tire manufacturing capacity and achieving a more competitive
cost structure in its North American operations.  Collectively,
the actions at USW plants in North America are expected to
generate annual savings of US$300 million in 2009, which
represents more than 3% of that segments sales.  Savings from
actions at its Valleyfield, Quebec plant (estimated at roughly
US$40 million/year once implemented) and its Moroccan operations
would be supplemental to that figure.  The Tyler, TX plant will
operate through 2007, and Valleyfield, Quebec will continue tire
production through the first half of this year.  The bulk of the
savings will not be realized until 2008 and beyond.  In order to
achieve those savings, some "up-front" expenditure will be
required.  These could lead to an increase in indebtedness
during 2007 as working capital requirements are affected by the
ramp of domestic production, contributions are made to the VEBA
(of which at least US$700 million will be cash), cash
restructuring costs for Valleyfield (estimated to be
US$40-US$45 million) and Tyler, TX in early 2008 (estimated to
be US$45-US$50 million) are incurred, and any supplemental
retirement "buy-outs" envisioned under the new USW agreement are
considered.  Potentially offsetting those requirements would be
prospective proceeds from asset sales and/or an equity offering
which the company is evaluating.

Goodyear's Corporate Family rating of B1 continues to recognize
strong scores for several factors in Moody's Automotive Supplier
Methodology.  These factors include the company's substantial
scale, global brands with refreshed product offerings, leading
market share, diversified geographic markets, and improved debt
maturity and liquidity profiles.  Scores for those qualitative
attributes would normally track to a higher Corporate Family
rating.  However, the B1 rating considers Goodyear's relatively
weak quantitative scores including leverage, which has stepped-
up from recent borrowings and could increase further in the
near-term, low EBIT returns and weak FCF/debt ratios.
Contributions to pension plans will remain substantial for
another year before declining in 2008.  Scores from those
quantitative factors counter qualitative strengths.  The company
faces challenges in restoring its balance sheet, and contending
with various contingent liabilities.  Debt levels should crest
during 2007 and leverage measurements retreat as savings begin
to be realized from the terms in its North American labor
settlement and other actions.  Realization of those efficiencies
will require successful execution.

The stable outlook considers the prospective benefits Goodyear
is likely to achieve from the new labor contract and other
restructuring actions that will ultimately lead to improved
financial performance and lower leverage statistics.  Existing
cash and access to a sizable committed revolving credit facility
provide sufficient resources to manage through what could be a
choppy interim period during which demand in North American
replacement tire markets may not experience any material growth
and raw material costs remain volatile.  While metrics for
trailing periods covering the strike and its lingering effects
in early 2007 may suggest lower rating categories, leverage and
coverage measurements are expected to improve as savings are
realized and demand stabilizes.  Moody's also anticipates
Goodyear's year-end balance sheet will confirm lower under-
funded pension liabilities.  The company is positioned with good
liquidity and faces minimal debt maturities until 2009.

A positive outlook or higher ratings could develop could develop
if debt/EBITDA were to fall to 4 times or below and
EBIT/interest were to be sustained above 2 times while
generating positive free cash flow.  Application of proceeds
from prospective asset sales or material equity issuance to
reduce leverage could also facilitate stronger ratings.  
Downward pressure on the rating or a negative outlook could
develop if replacement tire demand in North America were to
weaken and produce lower margins.  Similarly, higher raw
material costs, which were not recovered from pricing actions or
productivity gains, or an inability to realize savings
associated with the new USW labor contract could also lead to
lower profitability.  Evidence of this could come from negative
free cash flow, EBIT/interest declining below 1.25 X, or
debt/EBITDA metrics maintained at or above 5 times beyond 2007.

The SGL-2 liquidity rating represents good liquidity over the
coming year.  This stems from continuing extensive cash
resources, which were supplemented by a US$1 billion note
offering in November (net of retiring US$515 million of
maturities in December '06 and March '07), and access to a
committed $1 billion revolving credit.  Moody's would anticipate
that a portion of cash resources will be utilized for funding a
new VEBA trust, working capital requirements generated from the
ramp of production in North America as well as the cash portion
of restructuring costs at Tyler, TX and Valleyfield, Quebec.
Repayment of revolving credit borrowings in early January
restored external liquidity, and the company continues with
adequate cushion under its financial covenants.  Terms of its
bank credit agreement provide flexibility on the use of any
potential asset sale proceeds and provide some source for
alternate liquidity to develop.

                    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.


NORTEL NETWORKS: UBS Analysts Maintain "Neutral" Rating
-------------------------------------------------------
Analysts at UBS maintain their "neutral" rating on Nortel
Networks Corp, while revising their estimates for the company,
New Ratings reports.

According to the report, Nortel's target price has been raised
from US$23.50 to US$26.00.

The report says that in a research note published on Jan. 10,
2006, the analysts mentioned that the CDMA -- Code Division
Multiple Access -- outlook for 2007 has improved.  Analysts said
that once the Rev A rollouts are mostly completed, CDMA revenues
are expected to decline by 6% in 2008, the report points out.

The report discloses that the upward revision in the target
price reflects a marginally increased long-term normalized
operating margin estimate.

The EPS estimate for 2007 has been raised from US$0.56 to
US$0.66, while the EPS estimate for 2008 has been reduced from
US$1.60 to US$1.50, the report adds.

                        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.


PHILLIPS-VAN HEUSEN: Reaffirms Fourth Quarter Earnings Guidance
---------------------------------------------------------------
Phillips-Van Heusen Corporation, in conjunction with its
presentation by Company management at the Cowen & Co. 5th Annual
Consumer Conference, stated that it expects to at least meet the
its earnings guidance provided on November 20, 2006, for the
fourth quarter of 2006 ending February 4, 2007.

The Web cast of the conference can be accessed by logging onto
http://www.pvh.com/and going to the "News Release" page under  
the "Investor Relations" tab.

For the quarter, the Company is estimating that GAAP earnings
per share will be at least US$0.43, as previously said.  This
compares to 2005 fourth quarter earnings per share of US$0.41,
which did not include the impact of expensing stock options.  If
stock options were expensed in the fourth quarter 2005, the
impact would have been US$0.05 per share under the provisions of
SFAS 123.  The Company's estimate for the fourth quarter 2006
includes an increase over the prior year of US$25 million in
national advertising to support the Calvin Klein, Van Heusen,
IZOD and Arrow brands, up from a US$20 million increase
previously projected.

The Company's acquisition of substantially all of the assets of
Superba, Inc., was completed at the beginning of January and, as
noted in its November 20, 2006 press release, is not expected to
have a material effect on 2006 results.

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

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

The Troubled Company Reporter - Asia Pacific reported on
Dec. 14, 2006, that Moody's Investors Service upgraded Phillips
Van Heusen Corporation's corporate family rating to Ba2 from
Ba3.

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

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


TELKOM INDONESIA: To Launch Internet-Based TV Services in 2008
--------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk plans to launch Internet-based
television services next year, Reuters reports, citing Bisnis
Indonesia.

The report notes that Telkom President Director Arwin Rasyid
said that the technology had passed local tests and would
continue to be developed until June before the company launches
it commercially.

According to Reuters, Mr. Rasyid said that Telkom will launch
Internet Protocol TV by early 2008 at the soonest and that he
saw a market potential of 500,000 customers.

It will be the first Internet-based television service in
Indonesia, although some pay-TV services through satellite and
cable have become available in recent years, the report points
out.

Reuters adds that the company has a market capitalization of
US$22.4 billion, provides a wide range of services from fixed-
line and wireless telephone to Internet and pay-TV.

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-'.


VERITAS DGC: Gets Merger Approval from Shareholders
---------------------------------------------------
Veritas DGC Inc. and Compagnie Generale de Geophysique both said
that after their respective shareholders meeting, they received
the necessary approvals from their respective shareholders to
complete their merger, Oil Online reports.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 21, 2006, Compagnie Generale and Veritas held separate
meetings for their shareholders on January 9, 2007, in
connection with the proposed combination of the two companies.

Oil Online relates that Veritas stockholders voted to adopt the
merger agreement pursuant to which Veritas will merge with a
subsidiary of CGG and that CGG stockholders approved the
issuance of CGG ADSs to Veritas stockholders.

Upon satisfaction of other customary conditions, the proposed
merger is expected to close on January 12, 2007, the report
says.

Veritas stockholders are expected to receive CGG ADSs, cash or a
combination thereof subject to the allocation procedure
described in a proxy statement dated November 30, 2006, in
exchange for their shares of Veritas common stock, the report
says.

The report adds that the combined company will be renamed
"Compagnie Generale de Geophysique-Veritas," abbreviated as
"CGGVeritas" and that the trading symbol of the combined
company's ADS on the New York Stock Exchange will be "CGV".

                          About Veritas

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

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

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


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

AMERICAN AIRLINES: Reports 79.1% Load Factor in December
--------------------------------------------------------
American Airlines reported a December load factor of 79.1%
-- an increase of 0.2 points compared to the same period last
year.  Traffic decreased 1.1% year over year as capacity
decreased 1.3%.

Domestic traffic decreased 1.9% year over year on 2.2% less
capacity.  International traffic increased by 0.4% relative
tolast year on a capacity increase of 0.3%.

American Airlines boarded 8.1 million passengers in December.

American Airlines -- http://www.AA.com/-- is the world's  
largest airline.  American, American Eagle and the
AmericanConnection regional airlines serve more than 250 cities
in over 40 countries, including Japan.  The combined network
fleet numbers more than 1,000 aircraft.  American Airlines is a
founding member of the oneworld Alliance, whose members serve
more than 600 destinations in over 135 countries and
territories.

At Dec. 31, 2005, AMR Corporation's equity deficit doubled to
US$1.478 billion from a US$581 million deficit from Dec. 31,
2004.

                           *     *     *

As reported in the Troubled Company Reporter on April 25, 2006,
Standard & Poor's Ratings Services placed its ratings on AMR
Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc.
(B-/Watch Pos/--) on CreditWatch with positive implications.
The CreditWatch placement reflected improving earnings and cash
flow prospects, which should translate into a strengthened
financial profile.  The 'B+' bank loan rating on American's $773
million credit facility was placed on CreditWatch, but the '1'
recovery rating (which addresses recovery prospects in a default
scenario) was not placed on CreditWatch.


HERBALIFE: Expects to Report Higher Sales for Qtr. Ended Dec. 31
----------------------------------------------------------------
Herbalife Ltd. anticipates reporting record net sales between
US$482.7 and US$484.7 million for its fourth quarter ended
Dec. 31, 2006, when it files its annual report on Form 10-K with
the United States Securities and Exchange Commission in late
February 2007, reflecting a year-over-year increase between
18.0% and 18.5%.  The expected net sales results reflect strong
double-digit growth in the U.S., Mexico and several South
American and Southeast Asian markets.

"Our distributors had a tremendously successful year expanding
their businesses into new markets and more deeply penetrating
existing markets," said Michael O. Johnson, the company's chief
executive officer.  "As a result, we believe the 2006 goal of
exceeding US$3.0 billion in retail sales has been achieved," he
continued.

Based on its expected net sales growth, the company anticipates
that fourth quarter 2006 diluted earnings per share will be
within its previously announced range of US$0.52 to US$0.55,
excluding expenses associated with its realignment for growth
initiative.

                       2007 Guidance

Based upon its preliminary fourth quarter 2006 financial
results, the company is updating its full year 2007 guidance to
reflect current business trends and is also providing first
quarter 2007 guidance.

For the full year 2007, the company is reaffirming its
previously announced diluted earnings per share guidance of
US$2.40 to US$2.47, excluding expenses associated with its
realignment for growth initiative.  This guidance reflects net
sales growth of between 6.0% and 10.0% (compared with 10.0% to
15.0% initially issued on Nov. 6, 2006), coupled with improved
operating margins and a lower effective tax rate.

The company's outlook for net sales growth in 2007 reflects
current business trends, primarily slower than expected net
sales growth in Mexico.  The company expects the adverse impact
on overall 2007 net sales growth from this recent trend in
Mexico will be partially offset by net sales growth in several
other countries, primarily the U.S.

The company is also providing first quarter 2007 guidance with
expected net sales growth in the range of between 6.0% and
10.0%, an effective tax rate between 35.0% and 36.0% and diluted
earnings per share guidance in the range of US$0.50 to US$0.55,
excluding expenses associated with its realignment for growth
initiative.

Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--  
Herbalife, now in its 26th year, conducts business in 62
countries.  The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China, as well as major distribution centers in Japan,
Netherlands, the United States and Mexico.

Herbalife of Japan K.K. is headquartered in Minato-ku, Tokyo.

                          *     *     *

Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.


MITSUKOSHI LTD: Wants to Renew Agreement with Tiffany & Co.
-----------------------------------------------------------
Tiffany & Co., the world's second-largest luxury jeweler, said
that an agreement with Mitsukoshi Ltd. is set to expire on
Jan. 31 and may affect a third of its stores in Japan, Mary Jane
Credeur writes for Bloomberg News.

The report notes that Mitsukoshi has indicated its willingness
to renew the agreement.

Tiffany, in a filing with the United States Securities and
Exchange Commission, said that negotiations with Mitsukoshi are
ongoing.

Bloomberg cites Mark Aaron, head of investor relations at
Tiffany, as saying in a conference call with analysts and
investors that the New York-based jeweler wants to reach an
agreement in the "near future."

According to Bloomberg, Tiffany gets about 10% of its net sales
from the 19 boutiques it has in Mitsukoshi-operated stores.  If
the January 31 deadline passes without a new deal, the boutiques
will continue operating as usual unless one of the companies
decides to close them, Mr. Aaron explained.

The Mitsukoshi locations, Bloomberg points out, are one-third of
Tiffany's 53 total stores in Japan.  The boutiques are typically
one-half to one-third the size of U.S. stores, which measure
about 5,000 square feet, Mr. Aaron said in an interview.  Japan
is Tiffany's second-largest market behind the U.S.

Tiffany and Mitsukoshi have had a relationship since 1972.
Tiffany began operating boutiques in Mitsukoshi stores in 1993.

                        About Mitsukoshi

Mitsukoshi Ltd. was established through the merger of Mitsukoshi
Ltd, Nagoya Mitsukoshi, Chiba Mitsukoshi, Kagoshima Mitsukoshi,
and Fukuoka Mitsukoshi.  The company operates department stores
throughout Japan, selling clothing, food, household goods,
cosmetics, and general merchandise.

Standard & Poor's gave Mitsukoshi BB- Long-Term Foreign and
Local Issuer Credit Ratings.

Mikuni Credit Ratings gave the company a 'B' rating on its
mortgage debt, and a 'B' rating on its senior debt.


NIKKO CORDIAL: Placed on Rating Monitor for Downgrading by R&I
--------------------------------------------------------------
Rating and Investment Information, Inc., has placed Nikko
Cordial Corp's Issuer Rating of 'A' on the Rating Monitor with a
view to downgrading.

Nikko Cordial Securities, Inc.'s Issuer Rating of 'A' was also
placed on the Rating Monitor with a view to downgrading.

R&I recounts that in relation to the inappropriate accounting
procedures taken by its consolidated subsidiary Nikko Principal
Investments and NPI Holdings, a non-consolidated subsidiary, on
the report for an exchangeable bond transaction, Nikko Cordial
Corporation (Issuer Rating: A) announced on December 28, 2006,
the delay of semi-annual securities report for fiscal year
ending March 2007 from January 4 to February 2, and the
scheduled date of the adjusted financial statements for past
fiscal years from January 15 to February 28.

The effects from this financial statements revision will be
limited.  However, because Tokyo Stock Exchange has extended the
period of Nikko Cordial's stock on TSE's Monitoring Post, not
only Nikko Cordial will be unable to avoid limitations on its
ability to raise funds in the capital markets for the immediate
future, but there will also be a negative impact on the group's
operating base.  Nikko Cordial has removed the former executive
officers, established the special investigation committee and
taken actions to strengthen internal control.  Therefore, R&I
believes the probability the TSE will impose even more severe
penalties, such as the delisting of Nikko Cordial's stock, to be
low at this point in time.  Nevertheless, R&I considers it will
be necessary to follow the progress of the situation and the
affect this incident will have on Nikko Cordial Corporation's
overall business activities.  Consequently, R&I has placed the
rating of Nikko Cordial Corporation on the Rating Monitor with a
view to downgrading.

The financial statements of Nikko Cordial Securities Inc.
(Issuer Rating: A) will not be affected by the revisions to
Nikko Cordial Corporation's financial statements.  Nevertheless,
Nikko Cordial Securities' rating reflects the creditworthiness
of the entire Group.  Therefore, R&I has placed the rating of
Nikko Cordial Securities on the Rating Monitor.  Commercial
Paper rating (a-1) will not be placed on the Rating Monitor.
Similarly, the rating of Nikko Citigroup Ltd. (unlisted; Issuer
Rating: AA-) reflects its crucial position as the core company
of Citigroup's corporate finance and investment banking business
in Japan.  Therefore, the rating will not be placed on the
Rating Monitor.

R&I Ratings:

Issuer: Nikko Cordial Corp. (Sec. Code: 8603)

Issue: Bonds Rated      Issue Date  Redemption  Issue Amt. (mn)
------------------      ----------  ----------  --------------
Unsec. Str. Bonds No.2  03/12/2003  03/12/2008     JPY35,000
Unsec. Str. Bonds No.3  06/25/2003  06/25/2010     JPY20,000
Unsec. Str. Bonds No.4  02/24/2004  02/24/2009     JPY50,000
Unsec. Str. Bonds No.5  08/05/2004  08/05/2008     JPY70,000
Unsec. Str. Bonds No.6  10/21/2004  10/21/2011     JPY30,000
Unsec. Str. Bonds No.7  10/21/2004  10/21/2014     JPY20,000
Unsec. Str. Bonds No.8  12/22/2004  12/22/2014     JPY30,000

Issuer Rating: (A); Placed on the Rating Monitor with a view to
               downgrading

Issuer: Nikko Cordial Securities, Inc. (Sec. Code: Unlisted)
Issuer Rating: (A); Placed on the Rating Monitor with a view to
               downgrading

Issuer: The Nikko Bank (Luxemburg) S.A.
Programme: Medium-term Note Programme
Issue Limit: JPY30,000 million
Note: Guaranteed by Nikko Cordial Securities, Inc.
Issuer Rating: (A); Placed on the Rating Monitor with a view to
               downgrading

                About Nikko Cordial Corporation

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

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

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


NORTHWEST AIRLINES: Inks Agreement to Acquire Mesaba Aviation
-------------------------------------------------------------
Northwest Airlines Corp. has struck a definitive stock purchase
agreement to acquire Mesaba Aviation, Inc., the (Minnesota-St.
Paul) Star Tribune reports.

Northwest spokesman William Mellon said the company intends to
file a plan of reorganization on January 16, 2007, incorporating
the deal, the Star Tribune says.  

Northwest also wants Mesaba to file a Chapter 11 plan by
January 15.

As part of the transaction, Mesaba will receive US$10 million
cash and a US$145-million general unsecured claim in Northwest's
bankruptcy estate, the Star Tribune relates.

"There are no significant open issues requiring further
negotiation," Northwest said in a statement, according to
Bloomberg News.  Northwest deems the Mesaba Claim to be a fair
and adequate consideration for the value being transferred to
the company.

Riley Investment Management LLC, one of MAIR Holdings'
shareholders, believes that Northwest's offer is grossly
inadequate.  Riley states in a press release that the total
value of the Mesaba estate exceeds US$300,000,000.  The amount
accounts for Mesaba's original claim amount plus the
US$100,000,000 value of Mesaba's SAAB Business.

Northwest said that the acquisition would secure Mesaba's future
by locking flight operations and positioning Mesaba for growth,
Star Tribune relates.  Northwest will contract with Mesaba to
keep flying 49 Saab turboprops if the sale is finalized,
Northwest Senior Vice President of Finance David Davis stated in
his letter to Mesaba's creditors.

Mesaba's Official Committee of Unsecured Creditors favors the
deal.

MAIR Holdings, Inc., which owns Mesaba, has not expressed
support for the transaction, Mr. Mellon told the Star Tribune.

Riley says it intends to pursue all avenues to ensure that the
sale is not consummated.  Riley notes that contrary to what has
been stated in the press, Mesaba Airlines has not agreed to any
terms of the Northwest deal.  "We believe this would require
board approval at Mesaba as well as board approval at MAIR,
neither of which has occurred," Riley states in a press release.

Riley emphasizes that MAIR Holdings shareholders are not opposed
to Northwest acquiring Mesaba.  MAIR Holdings shareholders
believe Mesaba's claim is higher than US$145,000,000.

Riley alleges that Northwest destroyed value for MAIR Holdings
shareholders, Mesaba and its employees.  "We believe that not
only is Northwest Airlines not offering fair value for Mesaba,
it also pursued a strategy of destroying value in order to
purchase Mesaba's at a huge discount to its fair value.  At
best, Northwest and its executives ignored clear conflict of
interest issues and at worst, fraud occurred," Riley states in
its press release.  Northwest owns 28% of MAIR Holdings, and a
Northwest director also sat on MAIR Holding's board.

Mesaba currently has the exclusive right to file a Chapter 11
plan until February 12, 2007.  Mesaba's Creditors Committee has
asked Judge Gregory F. Kishel of the U.S. Bankruptcy Court for
the District of Minnesota to approve its request to file a
Chapter 11 plan on behalf of Mesaba to meet Northwest's Jan. 15
deadline.  

Riley plans to object to the Mesaba Creditors Committee's
request.  Riley states in its press release that it would offer
a competing Chapter 11 plan if Mesaba's exclusivity period is
terminated.  MAIR Holdings' other large shareholders support
Riley's actions.

Judge Kishel has yet to rule on the request of Mesaba's
Creditors Committee.

According to the Star Tribune, Northwest's board of directors
will meet on January 10, 2007, to vote on the deal.  The deal is
subject to approval by both the Mesaba Bankruptcy Court and the
U.S. Bankruptcy Court for the Southern District of New York.

                      About Mesaba Aviation

Headquartered in Eagan, Minnesota, Mesaba Aviation, Inc., dba
Mesaba Airlines -- http://www.mesaba.com/-- operates as a
Northwest Airlink affiliate under code-sharing agreements with
Northwest Airlines.  The Company filed for chapter 11 protection
on Oct. 13, 2005 (Bankr. D. Minn. Case No. 05-39258).  Michael
L. Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman PA,
represents the Debtor in its restructuring efforts.  Craig D.
Hansen, Esq., at Squire Sanders & Dempsey, L.L.P., represents
the Official Committee of Unsecured Creditors.  When the Debtor
filed for protection from its creditors, it listed total assets
of US$108,540,000 and total debts of US$87,000,000.

                    About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents.  The company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930).  Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts.  The Official Committee of
Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld
LLP as its bankruptcy counsel in the Debtors' chapter 11 cases.  
When the Debtors filed for protection from their creditors, they
listed US$14.4 billion in total assets and US$17.9 billion in
total debts.  The Debtors' exclusive period to file a chapter 11
plan expires on Jan. 16, 2007.


NORTHWEST AIRLINES: MAIR Shareholder Balks at Mesaba Bid
--------------------------------------------------------
Riley Investment Management LLC has opposed Northwest Airlines
Corp.'s proposal for Mesaba Airlines Inc.

As a large shareholder of MAIR Holdings, Inc., the owner of
Mesaba Airlines, Riley Investment Management LLC believes that
Northwest Airlines' proposed offer to acquire Mesaba Airlines in
exchange for the allowance of Mesaba US$145 million claim
against Northwest is grossly inadequate considering the total
value of the Mesaba estate to be in excess of US$300 million.  
The company will pursue all avenues to ensure that such a
transaction is not consummated.

The company's contemplated actions may include any or all of
these: filing objections to the creditors' current motion
requesting the termination of exclusivity period for filing a
plan of reorganization, pursuing litigation against various
parties to the transaction, offering our own competing plan of
reorganization if exclusivity is terminated, or entering into
discussion with MAIR Holdings or other regional carriers.

Additionally, Riley would like to note that contrary to what has
been stated in the press, Mesaba Airlines has not agreed to any
terms of the Northwest agreement.  Riley believes this would
require board approval at Mesaba as well as board approval at
MAIR, neither of which has occurred.

Riley believes that Northwest Airlines has destroyed value for
MAIR shareholders, Mesaba and Mesaba's employees, enabling
Northwest to buy Mesaba below fair market value and avoid fairly
paying Mesaba's valid claims in the Northwest bankruptcy.  Its
unions and the press have unfairly criticized MAIR and Mesaba
management for actions Riley believes were forced by Northwest.  
Northwest's bankruptcy filing and request for new RFPs for
additional flying forced Mesaba to subject its employees to new
labor contracts so that Mesaba could make attractive proposals
to Northwest to continue to fly aircraft.  Northwest is now
attempting to purchase Mesaba and use this low cost structure as
a vehicle to continue and buildup Northwest's regional business
with all future value only going to Northwest Airlines.

Riley has provided a timeline of events related to the Mesaba
bankruptcy and Northwest Airlines.

   * Prior to Mesaba bankruptcy filing: Mesaba operates a fleet
     of 63 SAAB-340 and 35 Avro-Regional Jet aircraft for NWA.
     Trailing twelve-month revenue at Mesaba through 9/30/2005
     was US$416MM.

   * Aug. 29, 2005:  Northwest signs a new ASA with Mesaba in
     which MAIR is required to invest US$31.7 million into
     Mesaba.  Under the terms, Mesaba would operate 35 AVRO and
     up to 15 CRJ-200/440 aircraft along with all of the
     existing 63 SAAB aircraft under a 10-year contract.

   * Sept. 9, 2005: Bryan Ebensteiner, NWA Director of Airlink
     Planning, sends an email to MAIR inquiring whether MAIR had
     made the required US$31.7 payment to Mesaba; Mesaba advises
     NWA that it had made the payment.

   * Sept. 12, 2005: After it is ensured that liquidity had been
     provided to Mesaba from MAIR, Northwest fails to make its
     regular semi-monthly payment to Mesaba of US$18.5 million
     for the second half of August.

   * Sept. 14, 2005:  Northwest files for bankruptcy.  Riley
     finds it hard to imagine that Northwest management did not
     know that it was contemplating filing for bankruptcy two
     weeks prior when it signed a new ASA with Mesaba.  Shares
     of MAIR drop from US$9.50/share to US$4.50/share costing
     MAIR shareholders US$100 million in value.  A few days
     after Northwest files for bankruptcy, Doug Steenland, CEO
     of Northwest, resigned from the board of directors of MAIR.

   * Sept. 26, 2005: Northwest failed to make the full semi-
     annual payment to Mesaba for the first half of September,
     reducing the payment to US$1.9 million.  Total missed
     payments are approximately US$36.4 million.

   * Aug. 16, 2006: Mesaba files a US$250 million claim against
     Northwest Airlines, which does not include the value of its
     current SAAB business which we value at an additional
     +US$100 million.

   * Nov. 27, 2006:  After Northwest's bankruptcy filing, Mesaba
     was forced to seek labor concession with its unions in
     order to continue operations and ensure continued and
     future business with Northwest.

     Labor currently has a US$22.7 million claim against Mesaba
     for contract concession.

   * Dec. 20, 2006:  Northwest offers Mesaba a US$145 million
     claim in total to purchase the entire company.  In all
     Riley values the offer at 63% of the value of Mesaba prior
     to filing for bankruptcy, which ignores incremental value
     which would have accrued to Mesaba since under the new ASA,
     where it had rights to operate the next 35 CRJ aircraft in
     Northwest's regional fleet.

   * Dec. 22, 2006: Northwest settles with Pinnacle Airlines for
     a US$377.5 million claim and awards Pinnacle a new ASA that
     allows it to continue flying for Northwest as a standalone
     public entity.  Terms of the new ASA allow Pinnacle to
     continue to operate all of its existing 124 CRJ-200/440
     aircraft plus up to an additional 17 CRJ-200/440 aircraft
     for 10 years.  15 of these CRJ's were originally promised
     to Mesaba when they signed their ASA.  In all, Riley
     estimates the value Pinnacle's award to be worth US$530
     million, which is approximately 135% of the estimated value
     of its prior contract.

In light of the items mentioned, Riley believes that not only is
Northwest Airlines not offering fair value for Mesaba, it also
pursued a strategy of destroying value in order to purchase
Mesaba's at a huge discount to its fair value.  At best,
Northwest and its executives ignored clear conflict of interest
issues (Northwest owns 28% of MAIR and a director of Northwest
also sat on MAIR's board) and at worst, fraud occurred.  Under
the proposed transaction, Northwest stands to reap the entire
economic benefit of Mesaba's labor concessions with cheaper
flying costs for Northwest going forward, but only after Mesaba
and therefore MAIR shareholders pay for the US$22.7 million
claim owed to Mesaba's labor unions.

To be clear, Riley is not opposed to Northwest acquiring Mesaba,
as it believes all parties including employees, creditors,
customers and shareholders can be made whole under appropriate
terms.  But Riley is strongly opposed to the offer of US$145
million.  In light of this, we will continue to pursue any and
all strategies that will maximize value for shareholders of
MAIR.

                      About Mesaba Aviation

Headquartered in Eagan, Minnesota, Mesaba Aviation Inc. dba
Mesaba Airlines -- http://www.mesaba.com/-- operates as a  
Northwest Airlink affiliate under code-sharing agreements with
Northwest Airlines.  The Company filed for chapter 11 protection
on Oct. 13, 2005 (Bankr. D. Minn. Case No. 05-39258).  Michael
L. Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman PA,
represents the Debtor in its restructuring efforts.  Craig D.
Hansen, Esq., at Squire Sanders & Dempsey, L.L.P., represents
the Official Committee of Unsecured Creditors.  When the Debtor
filed for protection from its creditors, it listed total assets
of US$108,540,000 and total debts of US$87,000,000.

                     About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/  
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents.  The Company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930).  Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts.  The Official Committee of
Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld
LLP as its bankruptcy counsel in the Debtors' chapter 11 cases.  
When the Debtors filed for protection from their creditors, they
listed US$14.4 billion in total assets and US$17.9 billion in
total debts.  The Debtors' exclusive period to file a chapter 11
plan expires on Jan. 16, 2007.


TITANIUM METALS: Sells Valtimet Stake to ValTubes for US$75 Mil.
----------------------------------------------------------------
Titanium Metals Corporation has completed the sale of its 43.7%
interest in Valtimet SAS to ValTubes, SAS for US$75 million in
cash.

Valtimet SAS is a manufacturing joint venture between Timet,
ValTubes SAS, Sumitomo Metals Industry and Sumitomo Corp formed
in 1997 for the manufacture of welded stainless steel and
titanium tubing.  The company had contributed its wholly owned
titanium tubing facility to the Valtimet joint venture in 1997.

The company will report a pre tax gain on the sale of its
interest in Valtimet of approximately $39 million in its fourth
quarter results.  TIMET and Valtimet also entered into a new
long-term agreement pursuant to which TIMET will supply up to
2,500 metric tons of titanium strip annually to Valtimet for use
in the manufacture of welded titanium tubing.

Steven L. Watson, vice chairman and chief executive officer,
said, "This sale transaction allows us to monetize our minority
non-controlling joint venture interest position in Valtimet at
an attractive value and redeploy the proceeds into expansion of
our productive capacity or other growth opportunities in our
core and emerging business segments that we believe will provide
the opportunity for an increased return on investment.  The new
supply agreement provides us the opportunity to continue to
participate in the welded tubing market segment on attractive
terms.  After application of the proceeds of the sale to pay
down our bank borrowings, we will have no net debt.  We have a
strong balance sheet and significant sources of capital and
liquidity to allow us to capitalize on capacity expansion
projects across all stages of our production process and invest
in other growth opportunities as we continue to respond to the
long-term positive outlook across major current and emerging
markets."

Headquartered in Denver, Colorado, Titanium Metals Corporation
(NYSE: TIE) -- http://www.timet.com/-- is a worldwide producer  
of titanium metal products.

The company has sales offices in Japan, Australia, China, Saudi
Arabia, India, and Taiwan.

                          *     *     *

Moody's Investors Services placed a Caa1 issuer rating and B3 LT
Corp Family Rating on Titanium Metals.


US AIRWAYS: Ups Offer for Delta Air to US$10.2 Billion
------------------------------------------------------
US Airways Group, Inc., disclosed that it has increased
its offer to merge with Delta Air Lines, Inc.

Under the revised proposal:

   * Delta's unsecured creditors would receive US$5.0 billion
     in cash and 89.5 million shares of US Airways stock.

   * When applying the same valuation methodology and
     assumptions as described in Delta's Disclosure Statement,
     US Airways' advisor Citigroup estimates this new proposal
     will provide between US$12.7 and US$15.4 billion in value
     to Delta's unsecured creditors, which represents a
     significant premium over the US$9.4 to US12.0 billion
     valuation that Delta places on its stand-alone plan.

   * Based on the closing price of US Airways stock as of
     Tuesday, Jan. 9, 2007, the new proposal has a current
     market value of approximately US$10.2 billion.

The merger is expected to be accretive to US Airways' earnings
per share in the first full year after completion of the merger.

The increased offer is set to expire on Feb. 1, 2007, unless
there is affirmative creditor support for commencement of due
diligence, making the required filings under Hart-Scott-Rodino,
as well as the postponement of Delta's hearing on its Disclosure
Statement scheduled for Feb. 7, 2007.

US Airways has committed financing from Citigroup and Morgan
Stanley for the proposed transaction for US$8.2 billion,
representing US$5.0 billion to fund the cash portion of the
offer and US$3.2 billion in refinancing existing obligations at
both US Airways and Delta.

US Airways Chairman and Chief Executive Officer Doug Parker
stated, "While our original proposal offered substantially more
value to Delta's unsecured creditors than the Delta stand-alone
plan, we are making this revised offer to eliminate any doubt
that a merger with US Airways offers Delta's unsecured creditors
significantly more value.  Without the support of the creditors,
our offer is set to expire on Feb. 1.  It is time for this
process to move forward. We continue to believe that this is the
right time to create a better airline that provides more choice
to consumers, increased job security for both airlines'
employees and generates more value for all of our stakeholders."

Consumers across the nation will benefit from greater choice and
lower fares from the "New" Delta.  Since the combination of
America West and US Airways in 2005, US Airways has lowered
leisure and business fares by up to 83 percent in about 1,000
markets.  Every domestic destination served today by either US
Airways or Delta will continue to be served by the New Delta,
which will provide consumers across the nation access to a
larger network that connects them to more people and places.

Employees also will benefit from working for a larger and more
competitive airline.  As US Airways has already announced,
frontline employees of the New Delta will move to the higher
cost structure of the combined airlines, and there will be no
furloughs of frontline employees of either Delta or US Airways.  
The combination of US Airways and America West, which was
accomplished without any involuntary mainline furloughs despite
capacity reductions of 15 percent, demonstrates that a merger
can be in the best interests of employees, not just
shareholders.

"This is a transaction that makes sense for US Airways
stockholders, Delta creditors, the employees and customers of
both companies, and the communities that we serve," said Mr.
Parker.

The revised US Airways proposal retains the same conditions as
the original offer and is conditioned on satisfactory completion
of a due diligence investigation, which the company believes can
be completed expeditiously, approval by Delta's Bankruptcy Court
of a mutually agreeable plan of reorganization that would be
predicated upon the merger, regulatory approvals, and the
approval of the shareholders of US Airways.

Citigroup Corporate and Investment Banking is acting as
financial advisor to US Airways, and Skadden, Arps, Slate,
Meagher & Flom LLP is acting as primary legal counsel, with
Fried, Frank, Harris, Shriver & Jacobson LLP as lead antitrust
counsel to US Airways.

                         About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest  
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.

                        About US Airways

Headquartered in Arlington, Virginia, US Airways Group Inc.'s
(NYSE: LCC) -- http://www.usairways.com/-- primary business  
activity is the ownership of the common stock of:

            * US Airways, Inc.,
            * Allegheny Airlines, Inc.,
            * Piedmont Airlines, Inc.,
            * PSA Airlines, Inc.,
            * MidAtlantic Airways, Inc.,
            * US Airways Leasing and Sales, Inc.,
            * Material Services Company, Inc., and
            * Airways Assurance Limited, LLC.

Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).  
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts.  In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.

The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005.  The Debtors completed their
merger with America West on the same date.

US Airways, US Airways Shuttle, and US Airways Express operate
approximately 3,800 flights per day and serve more than
230 communities in the U.S., Canada, Europe, the Caribbean, and
Latin America.  The new US Airways is a member of the Star
Alliance, which provides connections for customers to
841 destinations in 157 countries worldwide.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.


US AIRWAYS: S&P Retains Dev. Watch Despite Revised Delta Offer
--------------------------------------------------------------
Standard & Poor's Ratings Services stated that its ratings on US
Airways Group, including the 'B-' corporate credit ratings on US
Airways Group and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
remain on CreditWatch with developing implications, where they
were initially placed on Nov. 15, 2006.

US Airways revised its proposal to merge with Delta Air Lines
Inc., under which both companies would combine upon Delta's
emergence from bankruptcy, expected in the first half of 2007.

The revised proposal, for which US Airways already has
US$8.2 million of committed financing, would provide
approximately US$10 billion in cash and stock to Delta's
unsecured creditors, an approximate 19% increase over the
previous proposal.  The combination would result in one of the
world's largest airlines and US Airways still estimates annual
revenue/cost synergies of US$1.7 billion when fully phased in
over a two-year period.  The revised proposal will expire on
Feb. 1, 2007, unless there is affirmative creditor support for
commencement of due diligence, a Hart Scott Rodino filing, and a
postponement of Delta's scheduled Feb. 7, 2007, bankruptcy
disclosure statement hearing.  Delta's official creditor
committee, the principal group whose approval is needed for the
merger, has hired airline industry veteran Gordon Bethune as its
advisor, a development that US Airways' views as positive.

"If US Airways is successful in completing the merger with Delta
and realizing US Airways' expected synergies, ratings could be
raised modestly," said Standard & Poor's credit analyst Betsy
Snyder.

"If US Airways completes the merger but encounters problems with
integrating both airlines, particularly among the different
labor groups, ratings could be lowered."

Standard & Poor's will assess the combined entity's operational
synergies and the effect of the increased level of debt on its
financial profile in resolving the CreditWatch.

                          *     *     *

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.


US AIRWAYS: Reports December 2006 Traffic Results
-------------------------------------------------
US Airways Group, Inc., reported December, fourth quarter and
year ending traffic results for 2006.  For America West operated
flights, revenue passenger miles for the month were 1.9 billion,
down 2.6% from December 2005.  Capacity was 2.5 billion
available seat miles, down 3.4% from December 2005.  The
passenger load factor for December was 77.1% versus 76.5% in
December 2005.

For US Airways mainline operated flights, RPMs for December 2006
were 3.0 billion, an increase of 13.7% from December 2005.  
Capacity was 4.0 billion ASMs, up 6.8% from December 2005.  The
passenger load factor for the month of December was 75.2% versus
70.7% in December 2005.

"Demand continued to be strong during December, and our 35,000
employees did a fantastic job of taking care of our customers
during the busy holiday travel season by safely transporting
more than five million passengers during the month.  We also
posted continued strong revenue improvements with passenger
revenue per available seat mile estimated to be up over five% on
a year-over-year basis for December," said US Airways President
Scott Kirby.

                    Integration Update

US Airways is also providing a brief update on the integration
process between US Airways and America West.  Listed are major
accomplishments from the month of December:

   -- Reached a final labor agreement, including transition
      items, with the Transport Workers Union, representing
      about 150 dispatchers.

   -- Successfully implemented new front-end reservations
      software at five stations in preparation for the
      transition to one reservations system in 2007.  The
      remaining stations are set to have the new front end
      software by the end of January.

America West and US Airways report combined operational
performance numbers to the Department of Transportation.  For
the month of December 2006, US Airways will report a domestic
on-time performance of 70.9% and a completion factor of 98.5%.

Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.

The company and its affiliates filed for chapter 11 protection
on Aug. 11, 2002 (Bank. E.D. Va. Case No. 02-83984).  Under a
chapter 11 plan declared effective on March 31, 2003, USAir
emerged from bankruptcy with the Retirement Systems of Alabama
taking a 40% equity stake in the deleveraged carrier in exchange
for US$240 million infusion of new capital.

US Airways and its subsidiaries filed their second chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).  
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts.  In the company's
second bankruptcy filing, it listed US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.  The Debtors'
chapter 11 plan for its second bankruptcy filing became
effective on Sept. 27, 2005.  The Debtors completed their merger
with America West on the same date.

On March 31, 2006, the Court entered a final decree closing the
chapter 11 cases of four affiliates.  Only US Airways, Inc.'s
chapter 11 case remains open.

US Airways (NYSE: LCC) and America West's merger created the
fifth largest domestic airline employing nearly 35,000 aviation
professionals.  US Airways, US Airways Shuttle and US Airways
Express operate approximately 3,800 flights per day and serve
more than 230 communities in the U.S., Canada, Europe, the
Caribbean and Latin America.  US Airways is a member of Star
Alliance, which provides connections for our customers to 841
destinations in 157 countries worldwide.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.

                          *     *     *

On Jan. 10, 2006, Standard & Poor's Ratings Services stated that
its ratings on US Airways Group, including the 'B-' corporate
credit ratings on US Airways Group and its major operating
subsidiaries America West Holdings Corp., America West Airlines
Inc., and US Airways Inc., remain on CreditWatch with developing
implications, where they were initially placed on Nov. 15, 2006.


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

HYNIX SEMICONDUCTOR: To Spend US$4.7 Bil. on Facility Expansion
---------------------------------------------------------------
Hynix Semiconductor Inc. plans to spend KRW4.4 trillion
(US$4.69 billion) to expand and upgrade production facilities,
Korean.net says, citing a regulatory filing by the company.

The filing points out that the planned investment is an increase
of about 2% from last year's budget of KRW4.3 trillion.

The investments include KRW469 billion for Hynix's venture with
China's STMicroelectronics NV.

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.


SK CORP: To Revive Incheon Unit IPO, WSJ Reports
------------------------------------------------
SK Corp plans to revive a stalled initial public offering of its
stake in SK Incheon Oil, Kate Linebaugh of The Wall Street
Journal says, citing people familiar with the plan.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 14, 2006, SK Corp. intended to sell its stake in the
Incheon unit through a listing in the London Stock Exchange in
December.  

SK Corp. later postponed its planned IPO and advised it will
make a follow-up decision "after January 2007, after taking into
consideration any and all business-related circumstances."

In a TCR-AP report dated Dec. 13, SK Corp. dropped UBS AG as an
advisor for the listing.

Now, WSJ's sources say, the oil refiner not only will be
reviving the London IPO but will also list the Incheon unit in
the Korean market.

SK Corp. previously just aimed for the London listing because
South Korea regulations disallow a company to list after it has
posted an annual net loss.  SK Incheon incurred a KRW167-billion
net loss in 2005.  With the rumors on the domestic listing, the
unit is expected to post a profit in 2006.

An SK spokesperson, however, told WSJ that there has been no
decision on reviving the deal.

Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is an energy and petrochemical company  
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina.  SK Corp.
currently explores, develops and produces oil in 13 nations that
span Africa, Asia and the Americas.

Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency
Long-Term Debt Rating effective February 17, 2006.


* Korea Downgrades 2007 Economic Growth Forecast
------------------------------------------------
With reduced exports and weak private spending, the South Korean
Government, on Jan. 4, 2006, revised downward its economic
growth forecast for 2007, Korea.net relates.

According to the latest forecast of the country's Ministry of
Finance and Economy, the Korean economy would expand 4.5% this
year down from its previous forecast of 4.6% and an estimated 5%
growth last year.

The reduced demand for Korean exports is expected with the local
currency's gain to the U.S. dollar and a slowdown in the U.S.
economy.  Domestic spending is also expected to log a weaker-
than-expected pace of growth due to mounting household debt and
low employment.

The Ministry also downgrades forecasts on:

   -- domestic spending growth from 4.2% last year to to 3.9% in
      2007;

   -- export growth from 14.6% to 10%; and

   -- corporate capital spending from 7.5% to 6.5%.

Furthermore, the Ministry expects the country's current account
surplus to fall to US$1 billion from US$6 billion due to a
widening service account deficit, which will nearly double to
US$2.56 billion this year.


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

KAI PENG: Shareholders Approve Resolutions Set Out in AGM
---------------------------------------------------------
The shareholders of Kai Peng Bhd approved all the resolutions
set out in the company's 28th Annual General Meeting held on
December 29, 2006.

As reported by the Troubled Company Reporter - Asia Pacific on
December 8, 2006, the company passed these resolutions for
shareholders approval:

    1. to receive and adopt the Audited Financial Statements for
       the year ended June 30, 2006, together with the related
       reports of the directors and auditors;

    2. to approve the payment of Directors' Fees for the year
       ended June 30, 2006;

    3. to re-elect the director Dato' Wan Ismail Bin Abd Rahman
       who retired pursuant to Article 78 of the Company's
       Articles of Association;

    4. to re-elect director Encik Mohd Rodzi Bin Salleh who
       retired pursuant to Article 83 of the Company's Articles
       of Association; and

    5. to appoint Anuarul Azizan Chew & Co. as auditors
       and to authorize the directors to fix their remuneration.

                          *     *     *

Headquartered in Selangor, Darul Ehsan, Malaysia, Kai Peng
Berhad Kai manufactures, markets and distributes steel products.  
Other activities include provision of information and
communication technology services, undertaking steel fabrication
and engineering works and investment holding.  Operations are
carried out principally in Malaysia.

Kai Peng was, on May 9, 2006, classified under Practice Note 17
of Bursa Malaysia Securities Berhad after its shareholders'
equity failed to meet the listing requirement.  As an affected
listed issuer, the company is required to submit a financial
regularization plan or risk the possibility of delisting.

On November 9, 2006, the Troubled Company Reporter - Asia
Pacific reported that the external auditors of Kai Peng Berhad,
Ernst & Young, have raised a substantial doubt on the company's
and the group's ability to continue as going concerns after
auditing Kai Peng's financial statements for the fiscal year
ended June 30, 2006.

Specifically, Ernst & Young raised substantial doubt on the
company's ability to continue as a going concern after pointing
out these factors in Kai Peng's June 30, 2006 financial
statements:

   -- that the group and the company reported net losses of
      MYR62,181,981 and MYR53,789,921 respectively;

   -- that the group and the company's current liabilities
      exceeded their current assets by MYR77,245,002 and
      MYR49,988,562 respectively; and

   -- that the group and the company's June 30, 2006, balance
      sheet showed shareholder's deficit of MYR36,300,109 and
      MYR34,116,889 respectively.

As of September 30, 2006, the company's balance sheet showed
insolvency with MYR105.29 million of total assets, MYR142.93
million in total liabilities, resulting to a shareholders'
deficit of MYR37.64 million.


KL INFRASTRUCTURE: Seeks Approval on South Korean Rail Project
--------------------------------------------------------------
KL Infrastructure Bhd, together with Mtrans Holdings Sdn Bhd,
seek approval from relevant authorities in connection with their
Gangnam Monorail Project in Seoul, South Korea.

The monorail project proposal, submitted to the Seoul
Metropolitan Government for implementation, is a 6.7-kilometer
monorail transit system costing US$175 million.  Discussions
with regard to the Project are still under way.

                          *     *     *

KL Infrastructure Group Berhad is principally engaged in the
concession and operation of an intra-city public transit system
called the KL Monorail.  Its other activities include provision
of advertising space on columns and stations along KL Monorail
project route, property development and investment holding.  The
Group's activities are carried out principally in Malaysia.

The Group has been incurring losses in the past years due to its
high operating expenses and loan-interest payments.

KL Infrastructure Group Berhad disclosed on Sept. 28, 2006, that
it has become an affected listed issuer pursuant to the
provisions of Amended Practice Note 17/2005, as its auditors
have expressed a modified opinion on its going concern and based
on its nine months accounts from January 31, 2006.  KLINFRA's
shareholders' equity on a consolidated basis is less than 50% of
the issued and paid-up capital.


KL INFRASTRUCTURE: Bursa Extends Plan Filing Deadline to Mar. 31
----------------------------------------------------------------
Bursa Malaysia Securities Bhd extended until March 31, 2007, KL
Infrastructure's deadline to submit its regularization plan to
the Securities Commission and other relevant authorities.

In addition, the bourse further decides that:

   a. in the event the company submits its regularization plans
      to the approving authorities within the extended time
      frame, Bursa Securities will await the outcome of the
      company's submission; and

   b. the company must proceed to implement its regularization
      plans expeditiously within the timeframes or extended
      timeframes stipulated by the approving authorities in the
      event it obtains all approvals necessary for the
      implementation of its regularization plans.

Bursa Securities' decision is without prejudice to its right to
proceed to suspend the trading of the company's securities and
to commence delisting procedures against the company in the
event that:

   1. the company fails to submit the regularization plans to
      the approving authorities on or before the expiry of the
      extended submission deadline;

   2. the company fails to obtain the approval from any of the
      approving authorities necessary for the implementation of
      its regularization plans and does not appeal to the
      approving authorities within the timeframe or extended
      timeframe prescribed to lodge an appeal;

   3. the company does not succeed in its appeal against the
      decision of the approving authorities; or

   4. the company fails to implement its regularization plans
      within the timeframe or extended timeframes agreed to by
      the approving authorities.

Upon occurrence of any of the events set, a suspension will be
imposed on the trading of the listed securities of the company
upon the expiry of five market days from the date the company is
notified by Bursa Securities or any other date as may be
specified by Bursa Securities and delisting procedures will be
commenced against the company.

                          *     *     *

KL Infrastructure Group Berhad is principally engaged in the
concession and operation of an intra-city public transit system
called the KL Monorail.  Its other activities include provision
of advertising space on columns and stations along KL Monorail
project route, property development and investment holding.  The
Group's activities are carried out principally in Malaysia.

The Group has been incurring losses in the past years due to its
high operating expenses and loan-interest payments.

KL Infrastructure Group Berhad disclosed on Sept. 28, 2006, that
it has become an affected listed issuer pursuant to the
provisions of Amended Practice Note 17/2005, as its auditors
have expressed a modified opinion on its going concern and based
on its nine months accounts from January 31, 2006.  KLINFRA's
shareholders' equity on a consolidated basis is less than 50% of
the issued and paid-up capital.


KL INFRASTRUCTURE: Posts MYR22-Million Net Loss for 2nd Quarter
---------------------------------------------------------------
KL Infrastructure Group Bhd recorded a net loss of MYR22.11
million on MYR10.28 million revenues in the second quarter ended
October 31, 2006, as compared with the MYR19.62-million net loss
on MYR8.32 million revenues posted in the same quarter last
year.

The company's consolidated balance sheet as of end-October 2006
showed strained liquidity with current assets of MYR6.91 million
available to pay MYR31.1 million in current liabilities.

KL Infrastructure's total assets as of October 31, 2006,
amounted to MYR1.34 billion and its total liabilities aggregated
to MYR1.32 billion, resulting to a shareholders' equity of
MYR15.17 million.

                          *     *     *

KL Infrastructure Group is principally engaged in the concession
and operation of an intra-city public transit system called the
KL Monorail.  Its other activities include provision of
advertising space on columns and stations along KL Monorail
project route, property development and investment holding.  The
Group's activities are carried out principally in Malaysia.

The Group has been incurring losses in the past years due to its
high operating expenses and loan-interest payments.

KL Infrastructure Group Berhad disclosed on Sept. 28, 2006, that
it has become an affected listed issuer pursuant to the
provisions of Amended Practice Note 17/2005, as its auditors
have expressed a modified opinion on its going concern and based
on its nine months accounts from January 31, 2006.  KLINFRA's
shareholders' equity on a consolidated basis is less than 50% of
the issued and paid-up capital.


KUMPULAN BELTON: Advisor Appeals Bursa's Extension Denial Order
---------------------------------------------------------------
Bursa Malaysia Securities Bhd, on Dec. 28, 2006, rejected
Kumpulan Belton Bhd's application to extend the time within
which it is required to submit its Regularization Plan.

Pursuant to Paragraph 8.14C(4) of the Listing Requirements of
Bursa Securities, in the event that the company fails to submit
its revised Regularization Plan to the relevant authorities for
approval by its Jan. 7, 2007 deadline, a suspension will be
imposed on the trading of the company's listed securities --
with effect from Jan. 12 -- and delisting procedures will be
commenced against the Company.

Thus, in an update, OSK Securities Bhd, Kumpulan Belton's
corporate advisor, appealed to the Bursa Securities its decision
denying the company's extension request.

Because of the appeal, the bourse decided to defer the
suspension and delisting of the company's securities until
further notice.

                          *     *    *

Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton
Berhad -- http://www.beltongroup.com-- manufactures and sells  
automotive suspension parts and components.  Other activities
include property development and investment, provision of
machining and heat treatment services and investment holding.  
Operations of the Group are carried out in Malaysia and
Australia.

Kumpulan Belton was identified as an affected listed issuer of
Practice Note 17, as its consolidated shareholders' equity as of
December 31, 2005, was less than 25% of its issued an paid up
capital.  As an affected issuer, the Company is required to
submit a Regularization Plan to the relevant authorities for
approval and implement the Regularization Plan within the
timeframe stipulated by the relevant authorities.


LITYAN HOLDINGS: Payment Default Almost at MYR18MM as of Dec. 31
----------------------------------------------------------------
Lityan Holdings Bhd provides the Bursa Malaysia Securities Bhd
an update on the status of its default to credit facilities as
of December 31, 2006.

As of end-December 2006, Lityan Holdings' default, plus interest
owed to financial institutions, total MYR17.57 million:

                                             Total Principal and
Lender                Type of Facility       Interest in Default
------                ----------------       -------------------
RHB Bank Berhad       Overdraft Facility           MYR285,824.93
                      of MYR225,000/-

RHB Bank Berhad       Overdraft Facility              571,728.17
                      of MYR450,000/-

Bank Islam Malaysia   Letter of Credit              9,625,365.26
Berhad Labuan         Facility/ Murabah
Offshore Branch       Working Capital
(Formerly known as    Financing/ Revolving
Bank Islam (L) Ltd)   Al-Bai-Bithaman-Ajil
                      Facility of US$10-Mil.
                      (Secured)

Bank Islam Malaysia   Revolving Al-Bai-             5,831,349.42
Berhad Labuan         Bithaman-Ajil Facility
Offshore Branch       of US$5 million
                      (secured)

Ambank Berhad         Overdraft Facility            1,254,760.29
                      of MYR1 million           ----------------
                                                MYR17,569,028.07

                          *     *     *

Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides  
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.  
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding.  The Group carries out its operations in
Malaysia and the Philippines.

On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category.  On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring itself onto stronger financial footing via an
injection of new viable businesses.

The company's balance sheet as of end-September 2006 reflected
total assets of MYR69.62 million and total liabilities of
MYR146.92 million, resulting in a shareholders' deficit of
MYR77.29 million.


MBf CORP: Bourse Extends Plan Filing Deadline to February 8
-----------------------------------------------------------
The Bursa Malaysia Securities Bhd extended the time within which
MBf Corporation Berhad is required to submit its regularization
plan to the Securities Commission and other relevant
authorities.

MBf Corp was given until February 8, 2007, to submit its plan.

Bursa Malaysia informs the company that:

    a. in the event it submits its regularization plans to the
       Approving Authorities within the extended timeframe,
       Bursa Securities will await the outcome of the
       company's submission; and

    b. it must proceed to implement its regularization plans
       expeditiously within the timeframes or extended
       timeframes stipulated by the Approving Authorities in the
       event it obtains its approval necessary for the
      implementation of its plans.

Bursa Securities' decision is without prejudice to its right to
proceed to suspend the trading of the securities of the company
and to commence delisting procedures against the company in the
event that:

    -- it fails to submit its regularization plans to the
       Approving Authorities on or before the expiry of the
       extended timeframe;

    -- the company fails to obtain the approval from any of the
       Approving Authorities necessary for the implementation of
       its regularization plans and does not appeal to the
       Approving Authorities within the timeframe or extended
       timeframe prescribed to lodge an appeal;

    -- the company does not succeed in its appeal against the
       decision of the Approving Authorities; or

    -- the company fails to implement its regularization plans
       within the timeframe or extended timeframes stipulated
       by the Approving Authorities.

Upon occurrence of any of the events outlined, a suspension will
be imposed on the trading of the listed securities of the
company after five market days from the date the company is
notified by Bursa Securities or such other date as may be
specified by Bursa Securities and delisting procedures will be
commenced.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, MBf Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products and property
development. Other activity include investment holding.

The Group operates in three main areas, namely, Malaysia,
Indonesia and Hong Kong and Taiwan collectively.  The Group's
principal activities are mainly operated in Malaysia except for
the credit card business, which is carried out in Indonesia.  
The Group has no significant operations in Hong Kong and Taiwan
other than certain residual assets from a subsidiary that has
since been liquidated in Taiwan.

The Company is classified under Bursa Malaysia Securities
Berhad's Practice Note 17 category and is required to formulate
a plan to raise its shareholders' equity to avoid getting
delisted.


METROPLEX BERHAD: Posts MYR17-Million Net Loss in 3rd Qtr 2006
--------------------------------------------------------------
Metroplex Bhd incurred a MYR17.46-million net loss on
MYR39.98 million revenues in the third quarter ended October 31,
2006, as compared with the MYR18-million net loss on
MYR33.82 million revenues recorded in the same quarter in 2005.

The company's consolidated balance sheet as of end-October 2006
showed strained liquidity with MYR488.37 million in current
assets available to pay MYR1.43 billion in current liabilities.

In addition, as of October 31, 2006, the company was facing
solvency problem with MYR1.22 billion in total assets and
MYR1.46 billion in total liabilities resulting a shareholders'
deficit of MYR241.23 million.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong, and the Philippines.

On April 28, 2005, Morgan Stanley Emerging Markets Inc. had
filed a wind-up petition against the company with the Kuala
Lumpur High Court.  In the event the wind-up petition succeeds,
the company will be put into liquidation.

As of October 31, 2006, the company reported MYR1.22 billion in
total assets and MYR1.46 billion in total liabilities, resulting
in a shareholders' deficit of MYR241.23 million.


OCI BERHAD: Still Working Out Regularisation Plan
-------------------------------------------------
OCI Berhad, in a regulatory filing with the Bursa Malaysia
Securities Berhad, discloses that it is still in the midst of
working out its regularization plan.

The company has another six months -- until July 5, 2007 -- to
submit a Regularisation Plan to the relevant authorities for
approval.

                        About OCI Berhad

OCI Berhad manufactures adhesives used in the production of
shoes for the footwear, toy making, building/construction,
automotive, furniture and packaging industries.

The company is an affected listed issuer as the auditors have
expressed a modified opinion with emphasis on the company's
going concern in the company's audited financial statements for
the financial year ended June 30, 2006.  Moreover, the
shareholders' equity of the company on a consolidated basis as
at June 30, 2006, represented 40.8% of the company's issued and
paid-up capital.


OCI BERHAD: Stockholders Approve Various Resolutions
----------------------------------------------------
OCI Berhad, in a regulatory filing with the Bursa Malaysia
Securities Berhad, discloses that these resolutions have been
duly carried and passed by its members who were present during
the 23rd Annual General Meeting held on Dec. 28, 2006:

   * Adoption of audited accounts for the year ended June 30,
     2006, the reports of the directors and auditors.

   * Re-election of Liu Te-Chi as Director.

   * Re-election of Yeo Wee Thow, at Yeo Ngo Tee, as Director.

   * Approval of Directors' fees for the year ended June 30,
     2006.

   * Re-appointment of Ernst & Young as auditors and the
     authorization to fix auditors' remuneration.

   * Authority to allot and issue shares pursuant to Section
     132D of the Companies Act 1965.

                        About OCI Berhad

OCI Berhad manufactures adhesives used in the production of
shoes for the footwear, toy making, building/construction,
automotive, furniture and packaging industries.

The company is an affected listed issuer as the auditors have
expressed a modified opinion with emphasis on the company's
going concern in the company's audited financial statements for
the financial year ended June 30, 2006.  Moreover, the
shareholders' equity of the company on a consolidated basis as
at June 30, 2006, represented 40.8% of the company's issued and
paid-up capital.


OCI BERHAD: Posts MYR352,000 Net Loss for September 2006 Quarter
----------------------------------------------------------------
OCI Berhad posted a MYR24.87-million consolidated revenue for
the first quarter ending September 30, 2006, a 22.72% decrease
from the MYR32.19-million revenue it recorded in the same
quarter in 2005, according to the company's financials submitted
to the Bursa Malaysia.

Cost of sales also decreased by 19.15% to MYR21.97 million for
the period in review, giving the company a gross profit of
MYR2.91 million, 42.07% lower than the gross profit of
MYR5.02 million recorded in the previous comparative period.

The company reported a net loss of MYR352,000 for the quarter
ended September 30, 2006, against a net profit of MYR483,000 in
the same quarter in 2005.

As of September 30, 2006, the company had total assets of
MYR110.71 million, total liabilities of MYR92.69 million and
total shareholders' equity of MYR18.01 million.

                        About OCI Berhad

OCI Berhad manufactures adhesives used in the production of
shoes for the footwear, toy making, building/construction,
automotive, furniture and packaging industries.

The company is an affected listed issuer as the auditors have
expressed a modified opinion with emphasis on the company's
going concern in the company's audited financial statements for
the financial year ended June 30, 2006.  Moreover, the
shareholders' equity of the company on a consolidated basis as
at June 30, 2006, represented 40.8% of the company's issued and
paid-up capital.


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

WEIGHT WATCHERS: S&P Affirms BB Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating for New York, N.Y.-based commercial weight-loss
service provider Weight Watchers International Inc.  

At the same time, all WWI ratings were removed from CreditWatch,
where they were placed with negative implications on Dec. 20,
2006, reflecting WWI's increasingly aggressive financial policy
following the company's announcement that it plans to launch a
"modified Dutch auction" self-tender offer for up to 8.3 million
shares of its common stock at a price range between US$47 and
US$54 per share.

At the same time, Standard & Poor's assigned its 'BB' rating to
the company's proposed US$700-million term loan A-1 and US$500-
million term loan B, with a recovery rating of '2', indicating
the expectation for substantial (80%-100%) recovery of principal
in the event of a payment default.  S&P also lowered the
existing bank loan ratings on WWI's US$350-million term loan A
and US$500-million revolving credit facility to 'BB' from 'BB+'
and the recovery rating on these facilities to '2' from '1'.  
The rating outlook is negative.

Proceeds from the new US$1.2 billion of term loans will be used
to finance the tender offer and to repay outstanding debt at
wholly owned subsidiary WeightWatchers.com (WW.com,
B+/Positive/--).  Artal Luxembourg S.A., WWI's majority
shareholder, plans to retain its 55.2% pro rata share of common
stock outstanding following the completion of the Dutch auction
repurchase.  WWI intends to repay the outstanding balance of
WW.com's senior secured credit facilities, which consist of a
US$170-million first-lien term loan and a US$45-million second-
lien term loan.  S&P expect all ratings on WW.com to be
withdrawn upon the completion of the planned refinancing of its
existing senior secured debt.

Headquartered in New York, U.S.A., Weight Watchers International
Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/
-- provides weight management services, with a presence in 30
countries around the world, including Brazil, Netherlands, and
New Zealand.  The company serves its customers through Weight
Watchers branded products and services, including
meetings conducted by Weight Watchers International and its
franchisees.


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

MANILA ELECTRIC: Stockholders to Receive Cash Dividend on Feb. 5
----------------------------------------------------------------
The Manila Electric Company said that its common stockholders of
record as of January 10, 2007, will receive a cash divided
equivalent to PHP1.0 per share on February 5, 2007.

This is the first cash dividend declaration of the company after
seven years, after an improvement in its financial condition.  
It will be recalled that Meralco's financial situation after a
30-billion refund ordered by the Supreme Court in November 2002.  
The refund is on-going up to the present.

In the past, Meralco had been regularly declaring cash dividend
on its common shares of stock, twice a year, at a rate ranging
from PHP0.50 to PHP1.25 per share during the period 1992-2000,
and the last one was paid on March 31, 2000.

                      About Manila Electric

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

                          *     *     *

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

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


MANILA ELECTRIC: Reduces Tariff by PHP0.0782 per kWh from Jan.
--------------------------------------------------------------
Manila Electric Co., says it will reduce its tariff by PHP0.0782
per kilowatt-hour from January 2007.

The reduction was a result of the company's successful
negotiations with Philippine banks about refinancing
PHP12 billion in loans, which had eased its foreign exchange
burden.

This will allow Meralco to remove currency exchange rate
adjustment charges from electricity bills.

"We will temporarily stop collecting the CERA, starting in the
January 2007 billing, pending reconciliation and final
accounting of all CERA collections," Meralco says.

                      About Manila Electric

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

                          *     *     *

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

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


RIZAL COMMERCIAL: To Issue 250 Million Common Shares
----------------------------------------------------
The Board of Directors of Rizal Commercial Banking Corporation
has approved the plan to pursue the bank's strategic capital
build-up by issuing 250 million shares of new common stock
through an additional public offering, subject to approval by
the Securities and Exchange Commission, Philippine Stock
Exchange, and the Bangko Sentral ng Pilipinas.

The offering will consist of a primary offer of new shares to be
offered from the bank's authorized but un-issued common shares.

RCBC management will determine the price at a later date based
on a discount to the volume-weighted average price of the shares
on the PSE for ten trading days of a stipulated period.

This development came on the heels of the recent successful
issuance of US$100 million hybrid tier 1 shares in the last
quarter of 2006, and the issuance of PHP1 billion worth of
perpetual but non-cumulative preferred shares.

In addition to further building its capital base, the bank has
also managed to significantly reduce its non-performing loans
and Real and other Properties Acquired through the Special
Purpose Vehicle Law and private sales, totaling more than PHP5
billion for the year.

The bank is aggressively increasing its capital to drive the
growth of its portfolio and distribution reach consistent with
long-term expansion plans.  This is within the objective of
attaining a capital base that more than comfortably meets the
Basel 2 requirements, which the BSP will implement at the
beginning of the third quarter of 2007.

RCBC said that as of Sept. 2006, its capital adequacy ratio had
exceeded 15%, well above the 10% minimum requirement of Basel 2.

The bank has plans of expanding its ATM network and opening 15
new branches this year, among others.  In 2007, RCBC is expected
to bolster its standing as one of the top five largest private
domestic commercial banks.

                        New CEO Steps In

The bank expects that more dynamic strategies for growth and
expansion will come in the next 12 months, with the entry on
February 1, 2007, of its new chief executive officer Lorenzo
Tan, who will build on the strategic platforms for growth left
by retired CEO Rizalino Navarro.

As of end September 2006, RCBC posted a net income of PHP1.159
billion, 60% higher than PHP724 million recorded in the same
period of 2005.

                           About RCBC

Rizal Commercial Banking Corporation -- http://www.rcbc.com/--  
is a universal bank principally engaged in all aspects of
banking, and provides services such as deposit products, loans
and trade finance, domestic and foreign fund transfers,
treasury, foreign exchange and trust services.  In addition, the
Bank is licensed to enter into forward currency contracts to
service its customers and as a means of reducing and managing
the Bank's foreign exchange exposure.

On November 2, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings has assigned a final rating
of 'B-' to Rizal Commercial Banking Corporation's hybrid issue
of up to US$100 million.  The rating action follows the receipt
of final documents conforming to information previously
received.

The TCR-AP also reported on Nov. 6, 2006, that Moody's Investors
Service revised the outlook for RCBC's foreign currency senior
debt rating of Ba3, foreign currency Hybrid Tier 1 of B3, and
foreign currency long-term deposit rating of B1 to stable from
negative.  The outlook for RCBC's foreign currency Not-Prime
short-term deposit rating and bank financial strength rating of
E+ remains stable, the TCR-AP said.

The TCR-AP reported on Oct. 24, 2006, that Standard & Poor's
Ratings Services assigned its 'CCC' rating to RCBC's (RCBC;
B/Stable/B) US$100 million non-cumulative step-up callable
perpetual capital securities.


VICTORIAS MILLING: Auditor Raises Going Concern Doubt
-----------------------------------------------------
In its financial report for the year ended August 31, 2006,
filed with the Philippine Stock Exchange, Victorias Milling
Company, Inc. revealed strained liquidity with PHP528,904 in
total current assets available to pay PHP2,281,089 of total
current liabilities coming due within the next 12 months.

Victorias Milling's August 31, 2006 balance sheet also showed
total assets of PHP7,697,535, and total shareholders' deficit of
PHP1,903,365.

After auditing the company's financial statements for the years-
ended August 31, 2006, and 2005, which have been prepared on the
assumption that the company will continue operating on a going
concern basis, C.L. Manabat & Co., the independent auditors
appointed by the stockholders, pointed at the company's:

   (a) accumulated deficit of PHP3.6 billion and PHP3.8 billion
       as of August 31, 2006, and 2005, respectively, and

   (b) capital deficiency of PHP1.9 billion as of August 31,
       2006 and 2005, respectively,

which adversely affected its financial condition and cash flow
position.

Consequently, Victorias Milling defaulted on payments of its
maturing liabilities to creditors, which are currently under a
debt restructuring program.

These conditions, among others, raise formidable challenge to
Victorias Milling's ability to continue as a going concern
entity.  However, the financial statements do not include any
adjustment relating to the recoverability and classification of
asset carrying amounts and the settlement and classification of
liabilities that may be necessary should the company be unable
to continue as a going concern entity, C.L. Manabat notes.

                      Rehabilitation Plans

The company provides these salient features of the
Rehabilitation Plan as of September 25, 1998, subject to the
terms of the First Addendum to the Rehabilitation Plan dated
February 5, 1999, and of the Second Amendment to the
Rehabilitation Plan dated July 22, 1999, as approved by the
Securities and Exchange Commission in its Order dated August 17
and 19, 1999:

   (a) Reduction in the authorized capital stock of VMC from
       PHP2.7 billion consisting of 270 million shares of common
       stock at PHP10 par value per share to PHP2,563,035,708
       consisting of 2,563,035,708 shares of common stock at
       PHP1 par value per share;

   (b) Fresh capital infusion of around PHP567 million through a
       public bidding which was declared a failure for the
       reason that the deadline for the submission of bids had
       expired without any bid having been submitted;

   (c) The stockholders will have no pre-emptive right to the
       increase of 1.5 billion shares of common stock or any
       shares to be issued to accommodate the conversion of any
       interests earned on the convertible notes to common
       shares;

   (d) VMC will honor its contractual obligations to the MJ
       Ossorio Pension Foundation, Inc.;

   (e) Implementation of a business strategy for operating
       improvements, which include manpower reduction, upgrading
       of certain mills and other equipment, and divestment of
       non-profitable business units;

   (f) Sale of non-strategic assets and subsidiaries;

   (g) Restructuring of loans from banks; and

   (h) Debt-to-equity conversion

However, in view of the failure of the public bidding to raise
fresh capital of around PHP567 million, the Management Committee
submitted an Alternative Rehabilitation Plan as of May 11, 2000,
which was approved by the SEC in its Order dated November 29,
2000.  Its basic features include:

   (a) Increase in the authorized capital stock from PHP2.7
       billion consisting of 270 million shares of common stock
       at PHP10 par value per share to PHP4,605,086,296
       consisting of 4,605,086,296 shares of common stock at
       PHP1 par value per share.

       The new capital stock of PHP4,605,086,296 will be
       allocated among the initial paid in capital of
       PHP1,595,957,670, conversion of convertible notes into
       common shares of VMC in the amount of PHP2.4 billion, and
       ontingent Refined Sugar Invoice/Delivery Orders (RSDOs)
       of PHP609,128,626;

   (b) Conversion into equity of all unpaid interest and part of
       the principal of the unsecured loan amounting to PHP1.1
       billion;

   (c) Conversion of a portion of unsecured loan into
       convertible notes amounting to PHP2.4 billion;

   (d) Restructuring of the secured and unsecured loans into a
       15-year loan, including a 3-year grace period as to
       principal, at 10% annual interest; and

   (e) Call for an acceptable joint venture partner to provide
       additional cash of approximately PHP300 million, payable
       in three years with annual interest of 1.5%, and an
       option to manage VMC during the 3-year life of the loan.

All other terms and conditions of the Original Rehabilitation
Plan remain.  The 15-year debt restructuring agreement took
effect on September 1, 2003.

            Actions by Former Management and Others

Victorias Milling's former management as well as three creditor
banks, filed with the SEC opposition to the Committee's ARP.

However, in an Order dated February 28, 2001, the SEC denied the
appeal of VMC's former management.  Accordingly, the Committee,
through its appointed Chief Operating Officer, took over the
Management of VMC on March 7, 2001.

On July 26, 2005, Victorias Milling informed the Supreme Court
that one of the bank creditors has already withdrawn its
opposition and has signed the Debt Restructuring Agreement as
well as other documents relative thereto.

In its separate Manifestations dated January 25, 2006, and May
15, 2006, VMC informed the Supreme Court of unsecured creditors'
participation in the Rehabilitation Plan as well as their
execution of the Debt Restructuring Agreement and other
documents relative thereto.  In the Resolution dated June 5,
2006, the Supreme Court noted these manifestations.

            Management Plans on Going Concern Issue

In its continuing efforts to achieve successful operations and
effective implementation of the rehabilitation plan, VMC has
focused its corporate objectives, goals, strategies, and
measures to attain sustainable financial stability through,
among others:

   (a) synchronization of the refined sugar and raw sugar
       operations;

   (b) expansion of the boiling house to balance capacity with
       that of the A and C mill;

   (c) enhancement of mill efficiency;

   (d) increase profitability by addressing cost efficiency
       (which include, among others, trimming down of corporate
       overtime expenses, minimizing contracted labor/services,
       and sourcing out and maximizing use of cheaper fuel
       substitutes instead of bunker fuel), and improving
       tolling fees; and

   (e) ongoing program of rightsizing manpower.

Moreover, the Committee has undertaken five action plans to
improve VMC's financial position and its corporate governance
structure:

   1) Recapitalization and quasi-reorganization to reduce the
      deficit through reduction in capital stock and application
      of appraisal increment;

   2) Conversion of debt into equity;

   3) Conversion of debt into convertible notes;

   4) Improvement of cash flows

      As provided for in the Debt Restructuring Agreement, in
      the event VMC's net cash flow at the end of a crop year
      exceeds the projected net cash flow for that particular
      crop year as provided for in the ARP, VMC will pre-pay in
      inverse order the restructured loans without penalty equal
      to 75% of the incremental net cash flow (defined as net
      income after tax plus depreciation and other non-cash
      charges).

      As of August 31, 2006, and 2005, the actual net cash flows
      did not exceed the projected net cash flows for both years
      as provided for in the ARP.

   5) Election of a New Board of Directors

      On December 16, 2002, a special stockholders' meeting was
      held and a new set of Board of Directors was constituted
      to replace the Committee.  The new Board consists of:

      -- three representatives from the existing stockholders,
      -- one representative from the secured creditors,
      -- six representatives from the unsecured creditors, and
      -- one strategic partner

      The SEC issued an Order dated January 27, 2003, appointing
      Atty. Luis Ma. G. Uranza as the Rehabilitation Receiver to
      monitor, together with the new Board, the implementation
      of the ARP.

     On February 7, 2006 annual stockholders' meeting, a new set
     of Board.

Accordingly, VMC's management notes that the company's
continuation as a going concern entity is dependent upon its
ability to achieve the action plans and programs of the ARP and,
consequently attain profitability.

                     About Victorias Milling

Headquartered in Victorias City, Bacolod, Victorias Milling
Company Inc. -- http://www.victoriasmilling.com/-- was  
organized in 1919 and is engaged in the acquisition,
construction, maintenance and operation of sugar mills, as well
as other related business activities.  Through the years, the
company has expanded its operations to include a foundry, a
machine shop, a fabrication shop, a food canning company, an
organic fertilizer plant and a piggery.

On July 4, 1997, the Company filed an application with the
Securities and Exchange Commission to suspend payments to
creditors.  On July 8, 1997, the SEC issued a stay order
restraining all Victorias Milling creditors or any of its
subsidiaries from enforcing their claims, to allow the Company
or any of its subsidiaries to continue to their normal business
operations.  The SEC also ordered the formation of a Management
Committee to oversee the Company's operations and
rehabilitation.

The Management Committee was tasked to submit a feasible and
viable rehabilitation plan for VMC.

The Company is currently undergoing debt restructuring.


* S&P Assigns "BB-" Rating to RP's Global Bonds Maturing 2032
-------------------------------------------------------------
On January 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
BB+/Stable/B) proposed US$1.0 billion global bond issue maturing
in 2032.

"The ratings and stable outlook on the Philippines reflect
better prospects for policy continuity and fiscal consolidation
after last year's full implementation of the expanded VAT law,
along with a stabilizing political backdrop," said Standard &
Poor's credit analyst Agost Benard.

Besides resilient economic growth and relatively strong external
liquidity, progress in the administration's fiscal consolidation
program is increasingly supporting the ratings.  Decreasing
overall public sector borrowing requirements, a declining
reliance on external funding, and a rising proportion of
concessional versus commercial external borrowing are
contributing to improved debt ratios and diminishing external
vulnerability.

"Current developments point to an increased likelihood that
overall deficit reduction and fiscal rationalization will
continue and deepen, even as some risks to political stability,
administrative effectiveness, and policy implementation remain,"
said Mr. Benard.  "The 2006 fiscal deficit, is likely to have
been well outperformed at a projected 1.5% of GDP, against a
targeted 2.1%, a significant progress notwithstanding the
contribution of spending constraints owing to the reinstated
budget."

Nonetheless, fiscal rectitude and strengthening revenue
administration need to become sufficiently entrenched to address
the country's key ratings constraint posed by its still
significant public sector and external leverage, and the
attendant debt-servicing burden.

Total public sector debt (excluding central bank debt,
guaranteed contingent liabilities of public sector entities, and
netting out intra-government debt holdings), at an estimated 75%
of 2006 GDP, is well in excess of the average median 46.4% for
similarly rated countries.  Public sector external debt at 23.7%
of current account receipts also reveals a much higher external
leverage than what is generally associated with sovereigns in
this rating category.  Likewise, the debt-servicing burden (as
measured by general government interest to general government
revenues) of around 30% is nearly three times higher than for
the 'BB' median.

The outlook and ratings on the Philippines could benefit if
fiscal and public sector reforms, including privatization of the
electricity sector, yield a material decline in government debt,
such that the debt-servicing burden and external leverage are
closer aligned with the 'BB' rating category.  Conversely, if
these processes lapse or become derailed by political
imperatives or vested interests, the outlook could again come
under downward pressure.


* Continued Economic Growth May Improve Exchange Rate to US$
------------------------------------------------------------
The value of the Philippine peso could improve to 45 to the
dollar if the economy continues to grow.  "If the peso follows
its improvement last year, the exchange rate could hit PHP45 to
the dollar," said Albay Rep. Joey Salceda, who was a financial
analyst before he became a congressman.

Mr. Salceda predicted that the exchange rate could hit PHP46 or
PHP45 to US$1 if the administration managed the economy well.

Investors and businessmen are concerned about the forthcoming
combined congressional-local elections in May 14, 2007.  While
the nation should go through an election, the authorities should
not ignore the economy.  There should be prudent election
spending.

Overspending will be inflationary and would worsen the budget
deficit.  There are few things that the administration should do
to sustain the country's economic growth and the favorable
investment climate.  There must be prudent spending.

Mr. Salceda stressed that the May elections should be honest,
peaceful, and orderly, since creating chaos and violence will
not build investor confidence.

Inflation is expected to rise at a slower 4.6% due to the
continued strengthening of the peso against the dollar and a
drop in fuel prices.

A lower inflation rate may give the Bangko Sentral ng Pilipinas
more room to cut the central bank's lending rate.  A lower
benchmark interest rate may boost lending to businesses and
consumers, helping President Arroyo achieve her goal of lifting
economic growth to at least 5.7% in 2007.

                          *     *     *

On January 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
BB+/Stable/B) proposed US$1.0 billion global bond issue maturing
in 2032.

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%.

On November 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.

The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.


* RP Sustained Strong Net FDI Inflows in October, BSP Says
----------------------------------------------------------
In a press release posted at its Web site, the Bangko Sentral ng
Pilipinas states that non-resident investors continued to bring
capital into the Philippines, with the October level of net
Foreign Direct Investment (FDI) amounting to US$304 million,
more than twice the level recorded a year ago.  FDI inflows were
bolstered by the upbeat investor sentiment as the economy
continued to post strong macroeconomic fundamentals as evident
in the better-than-expected fiscal position, steadily declining
inflation, and comfortable external payments position.  As a
result, net FDI inflows for the ten-month period amounted to
US$1.96 billion, which is about 75% higher than the level in the
comparable period last year.

The reversal of the Other Capital account to a net inflow of
US$938 million from a net outflow of US$89 million for the same
period in 2005 was behind the much improved performance of net
FDI flows.  The Other Capital account consists largely of
intercompany borrowing/lending between foreign direct investors
and their local subsidiaries, branches or affiliates.  
Electronic and automotive firms benefited mainly from these
types of transactions during the review period.

Also contributing to the robust FDI flows was equity capital
which recorded a net inflow of US$1.02 billion.  Equity capital
placements were channeled mostly to manufacturing (such as
semiconductors, circuit manufacturing, health
care/chemical/steel products, airconditioning systems, cigarette
paper mill), services (such as shipping crew training, business
process outsourcing, medical research, construction and
facilities management), real estate, financial intermediation,
and construction.

The Netherlands, the U.S., Japan, the United Kingdom, the
Federal Republic of Germany, and Switzerland were the major
sources of FDI inflows.

                          *     *     *

On January 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
BB+/Stable/B) proposed US$1.0 billion global bond issue maturing
in 2032.

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%.

On November 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.

The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.


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

COMPACT METAL: Gets Favorable Ruling on PPG Industries Case
-----------------------------------------------------------
The High Court of Singapore entered an interlocutory judgment
with costs in favor of Compact Metal Industries Ltd on Dec. 29,
2006.  The favorable ruling was entered in a case filed by the
Compact Metals against PPG Industries (Singapore) Pte Ltd.

The case, which was filed in June 2005, was in relation to the
project to refurbish the Monetary Authority of Singapore
Building.  Facade Master Pte Ltd, a subsidiary of Compact Metal
was to undertake the paint application works and PPG Industries
was to supply the paint.

However, PPG Industries supplied a customized paint that was not
featured in the standard color charts.  The composition of the
paint that was initially supplied was unique and had not been
previously used.  Accordingly, considerable difficulties were
encountered and it was after months of adjustments, trial and
error that a satisfactory quality was achieved.

Thus, in June 2005, Compact Metal initiated a legal action
against PPG Industries, which PPG responded by filing a
counterclaim of SGD630,000 for the paint it supplied and invoice
to the company.  The Court dismissed the counterclaim.

The damages payable to Compact Metal pursuant to the
interlocutory judgment will be assessed before a registrar.

                      About Compact Metal

Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products.  The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects.  Its other
activities include trading aluminium and related products, and
hotel ownership and others.

As reported by the Troubled Company Reporter - Asia Pacific on
August 10, 2006, auditors KPMG raised significant doubt on
Compact Metal's ability to continue as a going concern, citing
reasons that include:

     i. the group's and company's current liabilities that
        exceeded their current assets by SGD81.96 million and
        SGD78.82 million, respectively, as of December 31, 2005;

    ii. the group's and company's recorded net liabilities
        attributable to equity holders of the parent of
        SGD43.10 million and US$43.83 million, respectively, as
        of December 31, 2005; and

   iii. the group's recorded recurring losses with net losses
        attributable to equity holders of the parent of
        US$24.09 million for the year ended December 31, 2005.


COMPACT METAL: Discloses Shareholders' Change of Interests
----------------------------------------------------------
Shining Holdings Pte Ltd, a substantial shareholder of Compact
Metal Industries Ltd sold some of its direct shares to meet its
financial obligations.

After the sale, Shining Holdings reduced its direct shares from
18,537,000 with 8.379% issued share capital, to 16,087,000
direct shares with 7.272% issued share capital.

Tan Kay Tho, who previously held 2,347,920 direct shares in the
company with 1.061% issued share capital, now holds 347,920
direct shares with 0.157% issued share capital

Another shareholder Tan Kay Kiang previously held 674,000 direct
shares with 0.305% issued share capital.  Presently, Mr. Tan
holds 323,000 direct shares with 0.146% issued share capital.

Tan Chin Hoon held 21,022,000 deemed shares with 9.503% issued
share capital.  Presently, Mr. Tan holds 19,022,000 deemed
shares with 8.599% issued share capital.

Tan Kay Sing, another shareholder, now holds 19,022,000 deemed
shares with 8.599% issued share capital down from his previous
holding of 21,022,000 deemed shares with 9.503% issued share
capital.

                      About Compact Metal

Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products.  The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects.  Its other
activities include trading aluminium and related products, and
hotel ownership and others.

As reported by the Troubled Company Reporter - Asia Pacific on
August 10, 2006, auditors KPMG raised significant doubt on
Compact Metal's ability to continue as a going concern, citing
reasons that include:

     i. the group's and company's current liabilities that
        exceeded their current assets by SGD81.96 million and
        SGD78.82 million, respectively, as of December 31, 2005;

    ii. the group's and company's recorded net liabilities
        attributable to equity holders of the parent of
        SGD43.10 million and US$43.83 million, respectively, as
        of December 31, 2005; and

   iii. the group's recorded recurring losses with net losses
        attributable to equity holders of the parent of
        US$24.09 million for the year ended December 31, 2005.


INTERSYS HOLDINGS: Creditors' Proofs of Debt Due on Feb. 5
----------------------------------------------------------
Intersys Holdings Pte Ltd, which was placed under members'
voluntary liquidation, requires its creditors to submit their
proofs of debt by Feb. 5, 2007, to be included in the company's
distribution of dividend.

The liquidator can be reached at:

         Helmi Bin Ali Bin Talib
         c/o 20 Kramat Lane
         #05-05/06/07 United House
         Singapore 228773


MAE ENGINEERING: Gets SGX-ST's Approval to List and Quote Shares
----------------------------------------------------------------
Mae Engineering Limited disclosed on Jan. 5, 2007, that it has
obtained the in-principle approval from the Singapore Stock
Exchange Limited for the listing and quotation of up to
350,000,000 new ordinary shares at an issue price of SGD0.05.  
This was in relation to the Proposed Acquisition of 38% interest
in the issued and paid-up capital of Lereno Sdn Bhd.

The Proposed Acquisition will be subject to the compliance with
the SGX-ST's listing requirements and guidelines.

Mae Engineering made it clear tha the in-principle approval is
not to be taken as an indication of the merits of the Proposed
Acquisition, the new Mae Shares, the company, its subsidiaries
or securities.

A circular to seek the shareholders' approval for the Proposed
Acquisition will be dispatched in due course.

Mae Engineering also disclosed the approval of the Board to form
these companies:

   (a) Lereno Bio-Chem Holdings Pte Ltd, as a 100% wholly-owned
       subsidiary of the company, to act as the holding company
       for Mae Engineering's biofuel and related businesses;

   (b) Lereno BC (Singapore) Pte Ltd, a 100% wholly-owned
       subsidiary of Lereno Bio-Chem, will be used in building
       and developing biofuel plant and related businesses in
       Singapore or elsewhere; and

   (c) REI Horizon Private Limited

Mae Engineering agreed to the formation of REI Horizon, a joint
venture company, with Indonesian partners and others to secure,
own, and develop biofuel plants and other related biofuel
projects and businesses in Indonesia or elsewhere.  The
enlistment of Suganda Setiadi Kumia, Mae Engineering's
Indonesian Director, and other partners in REI as shareholders
were also approved.

The shareholding structure of REI will comprise of:

    Fook Yuan International Pte Ltd           56%
    Lereno Bio-Chem Holdings Pte Ltd          36%
    Others                                     8%
                                             ----
    Total shareholdings in REI                100%

Mr. Kumia and his family own Fook Yuan.

Moreover, Mae Engineering unveiled that it has entered into a
confidential discussions with prospective and established
international trading/investment houses for potential co-
operation and co-investment in the development, construction and
financing the company's proposed biofuel plants and projects
planned for Singapore, Indonesia and other places.

                     About MAE Engineering

Headquartered in Singapore, MAE Engineering Limited is engaged
in the provision of integrated electrical and mechanical
engineering services including designing, planning and
procurement.  These services are categorized into electrical
installations, mechanical installations, electrical power supply
installations, instrumentation and building automation as well
as maintaining electrical and mechanical systems.  The Group
also offers consulting and specialist services to oceanariums
and aquariums.  The Group has disposed off its prawn and fish
farming as well as edutainment businesses, after suffering
accumulated losses of SGD48 million as of September 30, 2005.
The company also suffered a liquidity crunch since September 30,
2005, when its total current liabilities of SGD23,695,000
exceeded its total current assets of SGD5,582,000.

As of March 31, 2006, the company's balance sheet showed
SGD7,404,000 in total assets and SGD27,257,000 in total
liabilities, resulting in a SGD19,853,000 stockholders' equity
deficit.


PARKWAY INFORMATICS: Proofs of Debt Due on Feb. 5
-------------------------------------------------
Parkway Informatics 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 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


PETROLEO BRASILEIRO: Launches Exchange Offer of Notes
-----------------------------------------------------
Petroleo Brasileiro SA said in a statement that it has started
an exchange offer of old notes for new ones through PIFCo, its
international finance unit.

Business News Americas relates that the debt swap operation
involves the exchange of five series of old notes for US$500
million of global notes that mature in 2016.  The exchange will
end on Feb. 1.

According to BNamericas, Petroleo Brasileiro wants to remove
US$1.76 billion of debt maturing 2008-14 from the market.  The
global notes pay a yearly coupon of 6.125%.

Petroleo Brasileiro said in a statement that the operation is
being arranged by Morgan Stanley and is managed by Swiss bank
UBS Securities.

BNamericas underscores that Petroleo Brasileiro has been
restructuring and reducing its debt, taking advantage of US$20
billion in cash reserves.  The firm conducted last year debt and
share buyback operations using its cash reserves.

Petroleo Brasileiro's net debt decreased to BRL19.6 billion in
September 2006, from BRL20.8 billion in 2005, according to
company information.

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: Keppel-Fels May Win P-55 Project Auction
-------------------------------------------------------------
A consortium led by Keppel-Fels presented the lowest price for
the construction of the P-55 semi-submersible platform for
Petroleo Brasileiro SA, at US$1.65 billion, Valor Economico
reports.

Business News Americas relates that the P-55 is expected to have
capacity to produce 180,000 barrels per day from the deepwater
Roncador field in the Campos basin.  The P-55 will start
operating in 2011.

According to BNamericas, the Atlantico Sul consortium offered
US$1.81 billion.

Valor Economico notes that the offers were opened during a
public ceremony in Rio de Janeiro.

A spokesperson of Petroleo Brasileiro told BNamericas that the
firm's tender commission is studying the offers.

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: Studying Argentine Diesel Plant Development
----------------------------------------------------------------
Petroleo Brasileiro, the state-run oil firm of Brazil, has
started analyzing the development of a planned US$2.3-billion
diesel refinery in Argentina, Business News Americas reports,
citing a spokesperson of the planning and public works ministry.

BNamericas relates that four other firms are studying the
project.  These are:

   -- Repsol YPF;

   -- Chevron;

   -- Pan American Energy; and

   -- the Esso fuel distribution unit of ExxonMobil.

According to BNamericas, the firms agreed to conduct studies for
project development.  However, no official document was signed.

Cristian Folgar, the Argentine deputy fuels minister, told
Infobae that project feasibility studies could be completed by
year-end with operations starting up in 2010.

BNamericas says the refinery could be constructed in Comodoro
Rivadavia in Chubut.  It can produce up to 3 million cubic
meters of diesel yearly.

The private sector would fund US$1.6 billion of the refinery
project.  Institutional investors like local pension fund
managers would finance the balance, BNamericas states.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded  
in 1953.  The company explores, produces, refines, transports,
markets, distributes oil and natural gas and power to various
wholesale customers and retail distributors in Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

                          *     *     *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


SEE HUP SENG: Appoints Vice-Chairman and Directors
--------------------------------------------------
See Hup Seng Limited disclosed on Jan. 10, 2007, that it has
appointed:

   * Lee Chee Seng, as the company's Vice Chairman and Director;
     and

   * Goh Yeo Hwa as the company's Director.

Mr. Lee has been the Executive Director of Jiutian Chemical
Group Ltd, which is responsible for corporate finance and
strategic planning.  Between April 2001 and November 2003,
Mr. Lee served as the Non-executive Director of Malaysian
Plantation Bhd, a Malaysian holding company for Alliance Bank
Malaysia, and was a member of the board on its banking and
finance subsidiaries.

On the other hand, Mr. Go has been the Director of Wee Hur
Construction Pte Ltd for the past 10 years.

                      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.


VITASENCE BIOTECHNOLOGY: Court Issues Wind-Up Order
---------------------------------------------------
The High Court of Singapore entered an order to wind up the
operations of Vitasence Biotechnology Pte Ltd on Dec. 8, 2006.

Ogilvy & Mather (Singapore) Pte Ltd filed the wind-up petition
against the company.

The liquidator can be reached at:

         Don Ho
         c/o Don Ho & Associates
         20 Cecil Street #12-02 & 03
         Singapore 049705


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

ASIA HOTEL: SET Lifts Suspension; Resumes Trading
-------------------------------------------------
The Stock Exchange of Thailand decided to lift its suspension
and non-compliance signs it posted on Asia Hotel plc's
securities, allowing the hotel to resume trading in the Tourism
& Leisure Sector Services starting Jan. 22, 2006.

According to SET President Patareeya Benjapolchai, Asia Hotel is
considered to have met the exhange's criteria for exemption from
delisting.

Asia Hotel and its subsidiaries have been earning net operating
profits from their core business -- hotel and property rental --
for three consecutive quarters from first quarter 2006, to third
quarter of the same year, Ms. Patareeya pointed out.

As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 11, 2006, Atipong AtipongSakul expressed a going concern
doubt on the company after reviewing the company's first half
period financial statement.  The going concern was specifically
blamed on the THB1.141 million consolidated working capital
deficit of the company at the end of June 30, 2006.

However, the company's consolidated financial statements ended
Sept. 30, 2006, showed positive shareholder's equity of
THB931.78 million.

Mrs. Patareeya noted that Asia Hotel's strategic shareholders,
namely controlling shareholders, directors, executive management
including their related or associated persons holding in a total
of 26,843,230 shares or 83.89% of the paid up capital confirmed
to the SET that they would not sell their securities within one
year from the day the company resumes trading under the Tourism
& Leisure Sector Services Industry.

                          *     *     *

Headquartered in Bangkok, Thailand, Asia Hotel Public Company
Limited was incorporated on March 24, 1964, and has been
publicly listed   since 1989.  The Company and its two
subsidiaries, Asia Pattaya Hotel Company Limited and Asia
Airport Hotel Company Limited, are involved in the hotel
business, with its principal activities consisting of room
service and operating restaurants.  Another subsidiary, Zeer
Property Company Limited is primarily involved in the
construction and the building of shopping complexes.

On July 4, 2006, Asia Hotel Public Company Limited submitted a
report to the Stock Exchange of Thailand outlining the progress
of its rehabilitation plan.

In its update, Asia Hotel discloses that in June 2006, it was
able to amend the terms and conditions of the August 1999 Debt
Restructuring Agreements with the five financial institutions.  
As of June 30, 2006, the Company's total outstanding debt
amounts to THB1.49 billion.  

Specifically, the Company says that the significant amendments
pertain to:

   1. the reduction of the accrued interest from THB599.88
      million to THB214.34 million;

   2. the extension of the payback period from 10 years
      (2006-2016) to 15 years (2006 -2021); and
        
   3. the reduction of the interest rate from MLR-1% in 2006 and
      MLR 2007-2016 to MLR-0.5% for the whole payback period
      from 2006 to 2021.

On September 11, 2006, the Troubled company Reporter - Asia
Pacific reported that the company's consolidated balance sheet
as of June 30, 2006, showed strained liquidity with current
assets at THB170.87 million available to pay THB220.492 million
in current liabilities.

Total liabilities of the company and its subsidiaries at the end
of June 2006 amounted to THB3.310 billion while total assets is
at THB4.210 billion.  Shareholders' equity amounted to
THB900.153 million.

Atipong AtipongSakul expressed a going concern doubt on the
company after reviewing its current financial statement.  The
going concern was specifically blamed on the THB1.141 million
consolidated working capital deficit of the company at the end
of June 30, 2006.

ASIA's securities have been posted with the Suspension sign
since 2002.


THAI HEAT: Discloses Resignation of Heads
-----------------------------------------
Thai Heat Exchange Pcl informed the Stock Exchange of Thailand
on the resignations of three members of the company's
management:

Name                  Date of Resignation     Position
----                  -------------------     --------
Surapon Lisahapanya   Dec. 27, 2006           Vice Chairman
                      (Passed Away)

Olan Charuchinda      Jan. 8, 2007            Senior Vice Pres.

Surin Wanpensakul     Jan. 8, 2007            Asst. Vice Pres.


                          *     *     *

Headquartered in Bangkok, Thailand, Thai Heat Exchange Public
Company Limited -- http://www.thaiheat.com/-- has been  
manufacturing quality condenser coils, evaporator coils for
automobile and room air-conditioners and other application such
as slab coils, cooler coils, heater coils, refrigeration coils,
box air-conditioners, and cater to the various sectors of its
large clientele.

Thai Heat reported a net loss of THB26.45 million in the first
half of this year, compared with a profit of THB13.09 million in
the same period last year, attributed partly to gains from debt
restructuring.


TOTAL ACCESS: Vows to Abide to New Foreign Ownership Law
--------------------------------------------------------
Telenor Asia Pte, the major shareholder of Thailand's Total
Access Communication Pcl DTAC said it is willing and ready to
comply with the government's new policy on foreign ownership
limits and voting rights, the Bangkok Post reports.

Sigve Brekke, chief executive officer of DTAC and United
Communication Industry (Ucom), told the paper that Telenor was
not worried about the new policy and that it remained confident
that its shareholding structure in Ucom and DTAC was in
compliance with the revised law and regulations.

Hence, Mr. Brekke believes there is no need to dilute or
restructure Telenor's existing shareholding stakes.

Mr. Brekke also made it clear that the Norwegian telecom company
also had no plan, as of now, to either divest its investment in
the Thai telecom market or postpone the planned listing of DTAC
on the Thai stock market, which is scheduled by in first half of
this year.

Under the current shareholding structure of DTAC, Telenor  holds
33% of the shares in the mobile company, with Ucom holding 43%,
a free float of 16% in the Singapore stock market, and 6% held
by TOT Plc, Bangkok Post relates.  As for Ucom, 47% of the
shares are held by Telenor Asia, 42% by Thai Telco Holdings,
with a free float of 10.6%.

Mr. Brekke also said it was too early to say if DTAC and Ucom
violated the new law, as the policy was still unclear in draft
details and practices.  "We are sitting still and waiting for a
clear policy."

                          *    *    *

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

                          *     *     *

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

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

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


TOTAL ACCESS: Plans to Sue TOT if Application Remains Unapproved
----------------------------------------------------------------
Total Access Communication is threatening to file a lawsuit
against TOT Plc if it does not accept the application filed by
DTAC for an additional 1.5 million phone numbers into its
network, the Nation reports.

According to the company's chief executive officer, Sigve
Brekke, his company would release the additional 1.5 million
mobile numbers into the market on Jan. 15, 2007, and, before
then, try to persuade TOT to avoid a legal battle.

As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 1, 2006, Total Access Communication already secured
Thailand's National Telecommunications Commission's approval for
an additional 1.5-million phone numbers.

The Nation however relates that TOT is declining to integrate
into its network the new numbers on the grounds that the DTAC
had not paid their access charges.

Mr. Brekke said they would pay a quarterly interconnection
charge to TOT instead of paying the access charge as in the
past.  It will pay the interconnection charge at a rate of
THB1.25 per minute, instead of the access charge at THB8 per
minute.

The Nation relates that up to now, private cellular firms
operating on concession terms from another state agency, CAT
Telecom, have to pay access charge to TOT for connecting calls
to other networks via its facilities.  

However, DTAC says they now want to pay only the interconnection
charge, fixed under new regulations that require all telecom
operators to share voice revenues between the two networks
involved in a call.

A telecom company needs all other operators to integrate its new
numbers into their switching systems so that the numbers can be
recognized by other networks, the paper explains.  TOT's refusal
to register new numbers from DTAC calls from other networks will
not reach the new numbers if the calls are relayed through TOT's
network.

Meanwhile, the NTC has already ordered TOT to accept the
cellular operator's additional numbers or face possible
punishment in the form of a fine or loss of its telecom license.  
The commission will meet representatives from TOT to hear the
state agency's reasons for not accepting the numbers.

                          *     *     *

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

                          *     *     *

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

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

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


* Large Companies With Insolvent Balance Sheets
-----------------------------------------------

                                                      Total
                                           Total   Shareholders
                                          Assets      Equity
Company                        Ticker      ($MM)      ($MM)
-------                        ------     ------   ------------

AUSTRALIA

Allstate Explorations NL          ALX      12.65      -51.62
Austar United Communications Ltd. AUN     231.54      -52.58
Hutchison Telecommunications
   (Aust) Ltd.                    HTA    1696.65     -786.31
Indophil Resources NL             IRN      37.79      -69.96
Intellect Holdings Limited        IHG      15.01       -0.83
KH Foods Ltd                      KHF      62.30       -1.71
Lafayette Mining Limited          LAF      78.17     -127.82
Life Therapeutics Limited         LFE      59.00       -0.38
RP Data Ltd                       RPX      24.25       -6.30
Stadium Australia Group           SAX     135.23      -41.84
Tooth & Company Limited           TTH      97.05      -70.08


CHINA AND HONG KONG

Artel Solutions Group
  Holdings Limited                931      29.19      -18.65
Asia Telemedia Limited            376      10.89       -5.50
Bestway International
  Holdings Limited               2994      25.00       -0.67
Chang Ling Group                  561      77.48      -76.83
Chengdu Book - A               600083      21.50       -3.07
China Liaoning International
  Cooperation Holdings Ltd.       638      20.12      -42.96
China Kejian Co. Ltd.              35      54.71     -179.23
Datasys Technology
  Holdings Ltd                   8057      14.1        -2.07
Dynamic Global Holdings Ltd.      231      39.43       -2.21
Everpride Biopharmaceutical
   Company Limited               8019      10.16       -2.16
Fujian Changyuan Investment
   Holdings Limited               592      31.36      -54.04
Guangdong Kelon Electrical
   Holdings Co Ltd                921     685.74      -96.88
Guangdong Meiya Group
   Company Ltd.                   529     107.16      -49.54
Hainan Overseas Chinese
   Investment Co. Ltd.         600759      32.70      -15.28
Hans Energy Company Limited       554      94.75      -10.76
Heilongjiang Sun & Field
   Science & Tech.                620      29.96      -49.18
Hualing Holdings Limited          382     242.26      -28.15
Huda Technology & Education
   Development Co. Ltd.        600892      17.29       -0.19
Hunan Anplas Co., Ltd.            156      94.17      -65.04
Hunan GuoGuang Ceramic
   Co., Ltd.                   600286      87.44      -68.55
Hunan Hengyang                 600762      68.45       -7.20
Innovo Leisure Recreation
   Holdings Ltd.                  703      13.68       -2.01
Jiamusi Paper Co. Ltd.            699     120.30      -56.84
Jiangxi Paper Industry
   Co. Ltd                     600053      19.58      -12.80
Junefield Department
   Store Group Limited            758      16.80       -6.34
Loulan Holdings Limited          8039      13.01       -1.04
Mindong Electric Group Co., Ltd.  536      21.63       -1.50
New City (Beijing) Development
   Limited                        456     242.25      -21.46
New World Mobile Holdings Ltd     862     295.66      -12.53
Orient Power Holdings Ltd.        615     176.86      -64.20
Shenyang Hejin Holding
   Company Ltd.                   633      83.18      -20.87
Shenz China Bi-A                   17      39.13     -224.64
Shenzhen Dawncom Business Tech
   and Service Co., Ltd           863      79.84      -37.30
Shenzhen Shenxin Taifeng
   Group Co., Ltd.                 34      95.27      -44.65
Shenzen Techo Telecom Co., Ltd.   555      14.84       -6.25
Sichuan Changjiang Packaging
   Holding Co. Ltd.            600137      13.11      -72.76
Sichuan Topsoft Investment
   Company Limited                583     113.12     -148.61
SMI Publishing Group Ltd.        8010      10.48       -7.83
Songliao Automobile Co. Ltd.   600715      49.56       -3.76
Success Information
   Industry Group Co.             517      88.67      -18.67
Taiyuan Tianlong Group Co.
   Ltd                         600234      13.47      -87.63
UDL Holdings Limited              620      12.04       -9.31
Winowner Group Co. Ltd.        600681      38.03      -62.88
Xinjiang Hops Co. Ltd          600090      86.63      -11.26
Yantai Hualian Development
   Group Co. Ltd.              600766      59.99       -7.66
Yueyang Hengli Air-Cooling
   Equipment Inc.                 622      49.89      -17.71
Zarva Technology Co. Ltd.         688     101.76     -102.01
Zhejiang Haina Sporting and
  Touring Goods Co. Ltd.          925      21.43      -33.33


INDONESIA

Ades Waters Indonesia Tbk        ADES      21.35       -8.93
Eratex Djaja Ltd. Tbk            ERTX      30.30       -1.21
Hotel Sahid Jaya                 SHID      71.05       -4.26
Jakarta Kyoei Ste                JKSW      44.72      -38.57
Mulialand Tbk                    MLND     141.33      -45.99
Panca Wiratama Sakti Tbk         PWSI      39.72      -18.82
Steady Safe                      SAFE      19.65       -2.43
Toba Pulp Lestrari Tbk           INRU     403.58     -198.86
Unitex Tbk                       UNTX      29.08       -5.87
Wicaksana Overseas
   International Tbk             WICO      43.09      -46.36
Sekar Bumi Tbk                   SKBM      23.07      -41.95
Suba Indah Tbk                   SUBA      85.17       -9.18
Surya Dumai Industri Tbk         SUDI     105.06      -30.49


JAPAN

Mamiya-OP Co., Ltd.              7991     152.37      -67.11
Montecarlo Co. Ltd.              7569      66.29       -3.05
Nihon Seimitsu Sokki Co., Ltd.   7771      23.82       -1.10
Tsuchiya Twoby Home Co., Ltd.    1753      24.01       -2.05
Sumiya Co., Ltd.                 9939      89.32      -11.57
Yakinikuya Sakai Co., Ltd.       7622      79.44      -11.14


MALAYSIA

Antah Holdings Bhd                ANT     184.60      -98.30
Ark Resources Berhad              ARK      25.91      -28.35
Cygal Bhd                         CYG      58.47      -69.79
Comsa Farms Bhd                   CFB      50.74      -25.55
Mentiga Corporation Berhad       MENT      22.13      -18.25
Metroplex Bhd                     MEX     323.51      -49.28
Mycom Bhd                         MYC     222.58     -136.17
Lityan Holdings Bhd               LIT      22.22      -19.11
Olympia Industries Bhd           OLYM     272.49     -281.44
Pan Malay Industries             PMRI     199.08       -6.30
Panglobal Bhd                     PGL     188.83      -60.07
Park May Bhd                      PMY      11.04      -13.58
PSC Industries Bhd                PSC      62.80     -116.18
Sateras Resources Bhd             SRM      43.84      -27.08
Setegap Berhad                    STG      19.92      -26.88
Wembley Industries Holdings Bhd   WMY     111.72     -204.61


PHILIPPINES

APC Group Inc.                    APC      67.04     -163.14
Atlas Consolidated Mining and
   Development Corp.               AT      33.59      -57.17
Cyber Bay Corporation            CYBR      11.54      -58.06
East Asia Power Resources Corp.   PWR      92.55      -64.61
Fil-Estate Corporation             FC      33.30       -5.80
Filsyn Corporation                FYN      19.20       -8.83
Gotesco Land, Inc.                 GO      17.34       -9.59
Prime Orion Philippines Inc.     POPI      98.36      -74.34
Swift Foods Inc.                  SFI      26.95       -8.23
Unioil Resources & Holdings
   Company Inc.                   UNI      10.64       -9.86
United Paragon Mining Corp.       UPM      21.19      -21.52
Universal Rightfield Property
   Holdings Inc.                   UP      45.12      -13.48
Uniwide Holdings Inc.              UW      61.45      -30.31
Victorias Milling Company Inc.    VMC     127.83      -32.21


SINGAPORE

ADV Systems Auto                  ASA      14.32       -8.54
China Aviation Oil (Singapore)
   Corporation                    CAO     211.96     -390.07
Compact Metal Industries Ltd.     CMI      54.36      -25.64
Falmac Limited                    FAL      10.90       -0.73
Gul Technologies Singapore
   Limited                        GUL     152.80      -27.74
HLG Enterprise                   HLGE     150.70      -12.72
Informatics Holdings Ltd         INFO      22.30       -9.14
L&M Group of Companies            LNM      57.98       -5.20
Liang Huat Aluminium Ltd.         LHA      19.30      -76.43
Lindeteves-Jacoberg Limited        LJ     225.52      -53.23
Pacific Century Regional          PAC    1381.26     -107.11
See Hup Seng Ltd.                 SHS      17.36       -0.09


SOUTH KOREA

BHK Inc                          3990      24.36      -17.38
C & C Enterprise Co. Ltd.       38420      28.05      -14.50
Cenicone Co. Ltd.               56060      36.82       -1.46
Cheil Entech Co. Ltd.           53330      37.25       -0.31
DaeyuVesper Co. Ltd.            41140      19.06       -1.60
Dewell Elecom Inc.              32590      10.93       -6.92
Everex Inc.                     47600      23.15       -5.10
EG Greentech Co.                55250     186.00       -1.50
EG Semicon Co. Ltd.             38720     166.70      -12.34
Tong Yang Major                  1520    2332.81      -86.95
TriGem Computer Inc             14900     629.32     -292.96


THAILAND

Bangkok Rubber PCL                BRC      70.19      -56.98
Central Paper Industry PCL      CPICO      40.41      -37.02
Circuit Electronic
   Industries PCL              CIRKIT      20.37      -64.80
Daidomon Group Pcl              DAIDO      12.92       -8.51
Datamat PCL                       DTM      12.69       -6.13
Kuang Pei San Food Products
   Public Co.                  POMPUI      12.51       -9.87
Sahamitr Pressure Container
   Public Co. Ltd.               SMPC      20.77      -28.13
Sri Thai Food & Beverage Public
   Company Ltd                    SRI      18.29      -43.37
Tanayong PCL                    TYONG     178.27     -734.30
Thai-Denmark PCL                DMARK      21.37      -18.88
Thai-Wah PCL                      TWC      91.56      -41.24



                            *********

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 ***