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        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  

            Monday, January 15, 2007, Vol. 10, No. 10

                            Headlines

A U S T R A L I A

AAA COMPUTER: Court Appoints Provisional Liquidator
ADVANCED MARKETING: Gets Interim Approval on DIP Facility
ADVANCED MARKETING: Hachette Book Objects to DIP Financing Plea
ADVANCED MARKETING: Court Authorizes Use of Cash Collateral
AKERMAN-APACHE: Members Appoint Joint Liquidators

AMAZING PAINT: To Declare First Interim Dividend on February 14
AYMTOLD PTY: Creditors Must Prove Debts by January 30
BARROJEST PTY: Creditors' Proofs of Claim Due on January 30
CERTIFIED PLUMBING: Commences Wind-Up of Operations
DOUGLAS OGILVIE: Members Decide to Close Business

ENESCO GROUP: Posts US$5.5MM Net Loss for Quarter Ended Sept. 30
ENESCO GROUP: Bank Lenders Limit Credit Facility Advances
EVANS & TATE: Rejects Yarraman Winery Merger Proposal
G & A THOMSON: Undergoes Wind-Up Proceedings
GALIM IMPORTS: Creditors Opt to Liquidate Business

GRACLO PTY: Schedules Final Meeting on February 12
HYDROCARE AUSTRALIA: Placed Under Voluntary Wind-Up
JAD CLOTHING: Members and Creditors to Receive Wind-Up Report
JAMES HARDIE: Dutch Dividend Reduced to 15% Effective Jan. 1
JAMES HARDIE: MRCF to Sue Hardie If AU$1.5-Bil. Deal Crashes

K WONSON: Members Resolve to Wind Up Firm
PRIMELIFE CORPORATION: Court Orders Madden Grove Scheme Wind-Up
PRIMELIFE CORPORATION: To Convert PLFGB Notes to Ordinary Shares
SWIMMING POOL: Enters Wind-Up Proceedings
THEATRE ADVENTURES: Enters Voluntary Liquidation

ULTRA LINE: Members' Final Meeting Slated for February 13
* Arrears On Australian RMBS Transactions Rise, S&P Says


C H I N A   &   H O N G  K O N G

BALCANOONA LTD: Creditors' Proofs of Claim Due on Jan. 26
CITICORP CHINA: Appoints Ying and Chung as Liquidators
CITY FULL: Creditors Appoint Joint Liquidators
CMC MAGNETICS: Moody's Changes Outlook on Ratings to Negative
ESSERY ESTATES: Kong Chi How Johnson Steps Aside

KINGS INFORMATION: Enters Voluntary Wind-Up
LFD (CHINA): Pass Resolution to Wind Up Firm
LOYAL FRIEND: Liquidators Cease to Act
MAINLINE GLOBAL: Shareholders Opt for Voluntary Wind-Up
NEW CHOICE: Creditors and Contributories to Hear Wind-Up Report

ROYAL & SUN: Final Meeting Slated for February 13
SIEBEL SYSTEMS: Members Decide to Wind Up Operations
STARWISE INDUSTRIAL: Court Orders Wind-Up
SUNBO HOLDINGS: Members to Receive Wind-Up Report on Feb. 13
TECHLITE INVESTMENT: Court Issues Wind-Up Order

TRANFORD TRADING: Creditors Must Prove Debts by January 26
YANKTON ENTERPRISES: Commences Wind-Up Proceedings


I N D I A

ALLAHABAD BANK: Sets Board Meeting for Q3 Results on Jan. 24
AMERICAN AXLE: Reveals Results of Special Attrition Program
ANDHRA BANK: Plans Foray Into Life Insurance; Seeks Partner
ANDHRA BANK: Government Names RM Khuntia as Part-time Director
BALLARPUR INDUSTRIES: Confirms Interim Dividend at 12% and 12.5%

BRITISH AIRWAYS: Proposed Pension Plan Cues S&P's Watch Positive
EASTMAN KODAK: S&P's B+ Credit Rating Remains on Watch Negative
EASTMAN KODAK: Fitch Says Health Unit Sale May Improve Prospects
GENERAL MOTORS: 2007 Priorities Include Turnaround Focus
UCO BANK: Govt. Names PL Mittal as Part-time Director

UNION BANK OF INDIA: Hikes Prime Lending Rate to 12%


I N D O N E S I A

AVNET INC: Sets to Release 2Q FY2007 Earnings Results on Jan. 25
GOODYEAR TIRE: Workers' Strike Could Result in US$350-Mil. Loss
GOODYEAR TIRE: Workers Suggest Plan to Save Valleyfield Plant
GOODYEAR: To Continue Attacking Expensive Factories, CFO Says
HILTON HOTELS: Discloses Conversion Period for 3.375% Notes

* Bank Indonesia Wants National Inflation Rate at 3-5 Percent


J A P A N

BANCO BRADESCO: Approves BRL1 Trillion Capital Stock Increase
BANCO BRADESCO: Central Bank Approves Capital Stock Increase
BANCO BRADESCO: Unit Eyes BRL10B Pension Contributions in 2007
DELPHI CORP: Wants Excl. Plan-Filing Period Extended to July 31
DELPHI CORP: Highland Proposes Alternative Framework Agreements

DELPHI CORP: Judge Drain Approves Claims Estimation Procedures
GAP INC: Goldman Sachs Hiring Sparks Rumors on Strategic Options
NIKKO CORDIAL: Chief Denies Capitalization Rumors
NORTHWEST AIRLINES: Posts US$274-Mil. Net Loss in November 2006
PAYLESS SHOESOURCE: Ties Up With Disney on Kids' Footwear Line

SAMSONITE CORP: Earns US$8.9 Million in Quarter Ended October 31
SOJITZ CORP: Mulls Team-Up for Russian Coal Field Project


K O R E A

DURA AUTOMOTIVE: Section 341(a) Meeting Adjourned Sine Die
DURA AUTOMOTIVE: Inks Pact with American Electric and NITCo
KOREA EXCHANGE BANK: Five Foreign Firms Interested to Buy KEB
SK CORP: Increases Number of Affiliates to 176


M A L A Y S I A

AMSTEEL CORP: Appeals Bursa's Rejection of Extension Request
AVANGARDE RESOURCES: Has Yet to Submit Annual Financials
CRIMSON LAND: Inks MOU with Vendors for Proposed Assets Purchase
CRIMSON LAND: Status of Interest Payments on Loan Stocks
HARVEST COURT: Bursa Extends Plan Filing Deadline to Jan. 31

MCSB SYSTEMS: Gets Delisting Notice from Bursa Malaysia
MCSB SYSTEMS: Shares Suspended from Trading
MCSB SYSTEMS: Auditors Refuse Re-Appointment
PAN MALAYSIAN: Awaits SC's OK of Proposed Share Consolidation
PAN MALAYSIAN: Turns Around with MYR15MM Profit in Sept. Quarter

PAN MALAYSIAN: Won't Dispose of MUIB Shares, Contrary to Reports


N E W   Z E A L A N D

SIMPLY INSURANCE: S&P Places BB- Rtg on CreditWatch Developing
* Moody's Issues Annual Report on New Zealand
* NZ RMBS Arrears At Lowest Levels Since September, S&P Says


P H I L I P P I N E S

CENTRAL AZUCARERA: Delays ASM Pending Annual Report Submission
GLOBE TELECOM: To Redeem US$300MM Sr. Unsecured Notes in April
PHILIPPINE AIRLINES: Plans to Cut Debt by 20% Before 2009 Ends
SBARRO, INC: Launches Tender Offer for 11% Senior Notes
SBARRO INC: S&P Raises Corporate Credit Rating to B-

SBARRO INC: MidOcean Partners Deal Cues S&P's Developing Watch
UNION BANK: Hires Macquarie as Lead Manager of Equity Offering


S I N G A P O R E

BENCHMARK ELECTRONICS: Completes Acquisition of Pemstar
BENCHMARK ELECTRONICS: Appoints President and CFO
INTERMEC TECHNOLOGIES: Signs Motorola as RFID Licensee
PAXAR CORPORATION: Inks Strategic Alliance with NGC
PETROLEO BRASILEIRO: Ensuring Natural Gas Supplies at CSA Mill

PETROLEO BRASILEIRO: Launches Cidade do Rio Project Operations
SEA CONTAINERS: Wants Until June 12 to File Chapter 11 Plan
SEA CONTAINERS: Wants Until May 13 to Decide on Leases
SPECTRUM BRANDS: To Cut 100 Jobs Pursuant to Reorganization


T H A I L A N D

DAIMLERCHRYSLER: Chrysler's '06 Sales Outside N. America Up 15%
DAIMLERCHRYSLER: Chrysler Arm to Double International Sales
FEDERAL MOGUL: Court Lifts Stay on Use of U.K. Insurance Claims

     - - - - - - - -

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

AAA COMPUTER: Court Appoints Provisional Liquidator
---------------------------------------------------
On Dec. 21, 2006, the Supreme Court of New South Wales appointed
Sule Arnautovic as provisional liquidator of AAA Computer Tech
Aust. Pty Ltd.

The Provisional Liquidator can be reached at:

         Sule Arnautovic
         Jirsch Sutherland
         Chartered Accountants
         Level 2, 84 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9233 2111
         Facsimile:(02) 9233 2144

                       About AAA Computer

AAA Computer Tech Aust Pty Ltd -- http://www.aaacomput.com--  
trading as Computer Warehouse Sydney is a distributor of
computers and computer peripheral equipment and software.

The company is located in New South Wales, Australia.


ADVANCED MARKETING: Gets Interim Approval on DIP Facility
---------------------------------------------------------
The Hon. Christopher S. Sontchi of the United States Bankruptcy
Court for the District of Delaware, at a hearing on Jan. 3,
2007, authorized Advanced Marketing Services, Inc., and its
debtor-affiliates, on an interim basis, to dip their hands into
the DIP financing facility arranged by Wells Fargo Foothill.

The Debtors sought the Court's authority to obtain from Foothill
and the Senior Lenders, though the DIP Loan Facility, cash
advances and other extensions of credit in an aggregate
principal amount of up to US$75,000,000.

Judge Sontchi held that the Debtors do not have sufficient
available sources of working capital to operate its business in
the ordinary course of business with the postpetition financing.  
According to Judge Sontchi, the Debtors' ability to maintain
business relationships with its vendors, suppliers, and
customers, to pay its employees, and to otherwise fund its
operations, is essential to the Debtors' continued viability.

Judge Sontchi rules that the DIP Lenders have the right to use
the DIP Obligations to credit bid with respect to any bulk or
individual sale of all or any portion of the Debtors' assets
securing the loan.

The Debtors are prohibited from obtaining postpetition loans or
other financial accommodations other than from the DIP Lenders
unless their DIP Obligations have been indefeasibly paid in
full.

                   Loan and Security Agreement

The Debtors are borrowers under a Loan and Security Agreement
dated April 27, 2004, with Wells Fargo Foothill, Inc., as agent,
and a consortium of lenders.  The Senior Facility provides for a
revolving line of credit up to a maximum commitment level of
US$90,000,000.

Curtis R. Smith, AMS's vice-president and chief financial
officer, relates that the Senior Lenders have agreed to continue
to provide liquidity to the Debtors through a DIP Loan Facility,
which carries forward many of the terms of the Senior Facility.

Absent immediate and continued availability of credit, the
Debtors' operations will be severely disrupted, and they will be
forced to cease or sharply curtail operations of some or all of
their businesses, which in turn will eliminate the Debtors'
ability to generate operating revenue and the value of their
businesses as a going concern, Mr. Smith says.

Before agreeing to enter into the DIP Loan Facility with
Foothill and the Senior Lenders, the Debtors engaged in numerous
discussions concerning secured and unsecured financing, as well
as equity or other infusions, with several potential investors.  
Yet, they received only one proposal for debtor-in-possession
financing other than that offered by the Senior Lenders.  Upon
evaluation, the Debtors determined that the alternate proposal
was not viable.   

"No other prospective lender was willing to provide debtor in
possession financing without at least the type of protections
afforded Senior Lenders under the DIP Loan Facility," Mr. Smith
relates.

                    Terms of the DIP Facility

The DIP Facility provides, among other things, that each Lender
with a Revolver Commitment agrees to make Advances to the
Debtors at any one time in amounts not exceeding the Lender's
Pro Rata Share of an amount equal to the lesser of (i) the
Maximum Revolver Amount -- presently set at US$75,000,000 --
less the Letter of Credit Usage, or (ii) the Borrowing Base less
the Letter of Credit Usage.

     Lender                                 Revolver Commitment
     ------                                 -------------------
     Wells Fargo Foothill, Inc.                US$37,500,000
     LaSalle Business Credit, LLC                 16,500,000
     Marathon Structured Finance Fund, L.P.        8,250,000
     Capitalsource Finance LLC                    12,750,000

The Issuing Lender agrees to issue Letters of Credit for the
account of the Borrowers or to purchase or execute an L/C
Undertaking with respect to letters of credit issued by an
Underlying Issuer for the account of the Borrowers.  The Issuing
Lender will have no obligation to issue an L/C if any of these
events would result after giving effect to the issuance of the
requested L/C:

   (1) the L/C Usage would exceed the Borrowing Base less the
       outstanding amount of Advances; or

   (2) the L/C Usage would exceed US$10,000,000; or

   (3) the L/C Usage would exceed the Maximum Revolver Amount
       less the outstanding amount of Advances.

The Borrowing Base under the DIP Loan Agreement determines the
maximum amount that may be borrowed as Advances.  It is a
function of inventory and account values ranging up to 85% of
appraised liquidation values and is subject to various reserves,
including a Dilution Reserve in an amount sufficient to reduce
the advance rate against Eligible Accounts by 1 percentage point
for each percentage point by which Dilution is in excess of 5%.

The interest rate on all Obligations will be calculated based on
Wells Fargo Bank, National Association's prime rate plus 3.50%.

The DIP Agreement was scheduled to close by January 4, 2007.  
The postpetition facility will continue in full force and effect
for a term ending in July 2007.  The Lender Group, upon the
election of the Required Lenders, will have the right to
terminate its obligations under the DIP Loan Agreement
immediately and without notice on the occurrence and during the
continuation of an Event of Default.

The proceeds of the Advances may be used (1) on the Closing
Date, to pay transactional fees, costs, and expenses incurred in
connection with the DIP Loan Agreement, the other Loan
Documents, and contemplated transactions including the funding
in whole or in part of the Carve Out Reserve Fund, and (ii) for
the Debtors' lawful and permitted business and general corporate
purposes including the financing of working capital needs and
capital expenditures, in accordance with the Debtors' 14-week
Budget related to the DIP Loan Facility.

The Budget runs through March 30, 2007, and sets forth the
expenditures that the Debtors critically need to make to allow
them to continue to operate.

The Borrowers agree to pay a variety of fees and charges to
Foothill:

   -- a Letter of Credit fee accruing at 3.50% per annum times
      the Daily Balance of the undrawn amount of all
      outstanding L/C;

   -- on the first day of an each month, an Unused Line Fee
      equal to 0.375% per annum times the result of (a) the
      Maximum Revolver Amount, less (b) the sum of (1) the
      average Daily Balance of Advances that were outstanding
      during the immediately preceding month, plus (2) the
      average Daily Balance of the L/C Usage during the
      immediately preceding month;

   -- a US$750,000 closing fee, which will be fully earned, due,
      and payable on the Closing Date;

   -- a US$5,000 servicing fee per quarter, due and payable, in
      arrears, on the first day of each quarter, commencing with
      the first day of the quarter immediately following the
      Petition Date; and

   -- certain audit, appraisal and valuation fees and charges
      relating to audits and appraisals performed by personnel
      employed by Foothill.

The postpetition obligations due the Lenders by the Debtors will
be entitled to the super-administrative priority afforded under
Section 364(c)(1) of the Bankruptcy Code.

The Lenders' liens and administrative claims will be subject to
a carve out for (i) the fees payable to the Clerk of the
Bankruptcy Court and to the Office of the United States Trustee
relating to the Bankruptcy Cases; and (ii) Professional Fee
Carve Out Expenses of US$2,000,000 prior to a Payoff Event and
US$3,000,000 afterwards.

Moreover, the Debtors covenant that they will not:

   (a) on any measurement date where the Projected Operating
       Cash Flow is a positive amount, have Actual Operating
       Cash Flow for the relevant period that is both less than
       85% of the Projected Operating Cash Flow, and at least
       US$2,500,000 less than Projected Operating Cash Flow, for
       the period; or

   (b) on any measurement date where the Projected Operating
       Cash Flow is a negative amount, have Actual Operating
       Cash Flow for the relevant period that is both less than
       115% of the Projected Operating Cash Flow, and at least
       US$2,500,000 less than the Projected Operating Cash Flow,
       for the period.

Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, clarifies that the terms and covenants set
forth in the Senior Facility are amended and restated in their
entirety by the terms and conditions set forth in the DIP Loan
Agreement.  However, the DIP Loan Agreement does not extinguish
the obligations for the payment of money outstanding under the
Senior Facility, or for the discharge or release of any
security.  Rather, the DIP Loan Agreement provides for the
satisfaction of the prepetition obligations owed to the Senior
Lenders through application of Cash Collateral postpetition -- a
"roll-up" of the prepetition debt.

The Roll-up provision provides that each Senior Lender is
entitled to apply any and all proceeds of the Collateral or the
Senior Collateral or any other consideration it received in
respect of the Senior Obligations in accordance with the Senior
Facility and the Loan Documents, which includes the application
of Senior Collateral -- first, on account of the Senior
Obligations until the Senior Obligations are paid and satisfied,
and then on account of the Postpetition Obligations.  
Furthermore, all outstanding L/C under the Senior Facility are
deemed to be L/C and Obligations under the DIP Credit Agreement.  
Mr. Collins says the Debtors have determined that this provision
is appropriate given that the Senior Lenders are substantially
over-secured.

                  Qualified Transaction Timeline

The Debtors agree with the DIP Lenders to file within 10 days
after the Petition Date a qualified transaction motion calling
for the sale of substantially all or a significant portion of
their business, or a refinancing or debt or equity investment or
other recapitalization.

Within 20 days after the filing of the Qualified Transaction
Motion, the Debtors will attempt to obtain approval of
competitive bidding procedures and to identify a "stalking
horse" bidder in the event they pursue a sale.

The DIP Lenders want the Qualified Transaction Motion approved
within 45 days after the filing.  They also want to receive cash
proceeds from the Qualified Transaction within 50 days.

Mr. Collins says the Debtors believe that the Qualified
Transaction provisions are reasonable given the overall benefits
of the DIP Facility, and given that the Senior Lenders were
unwilling to extend financing without those provisions.

Foothill is represented in the Debtors' cases by Paul S. Arrow,
Esq., and William S. Brody, Esq., at Buchalter Nemer, in Los
Angeles, California, and Kurt F. Gwynne, Esq., at Reed Smith,
LLP, in Wilmington, Delaware.

Judge Sontchi will convene a hearing to consider approval of the
Debtors' request on a final basis on January 24, 2007, at 10:00
a.m.  Objections, if any, are due January 22.

                    About Advanced Marketing

Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized  
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry.  The company
has operations in the U.S., Mexico, the United Kingdom, and
Australia, and employs approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated, filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors.  When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than US$100 million.  The Debtors' exclusive
period to file a Chapter 11 Plan will expire on Apr. 28, 2007.


ADVANCED MARKETING: Hachette Book Objects to DIP Financing Plea
---------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
January 15, 2007, the Hon. Christopher S. Sontchi of the United
States Bankruptcy Court for the District of Delaware authorized
Advanced Marketing Services, Inc., and its debtor-affiliates, on
an interim basis, to dip their hands into the DIP financing
facility arranged by Wells Fargo Foothill.

The Debtors had sought the Court's authority to obtain from
Foothill and the Senior Lenders, though the DIP Loan Facility,
cash advances and other extensions of credit in an aggregate
principal amount of up to US$75,000,000.

                     Hachette & Quarto Object

Hachette Book Group USA, Inc., formerly known as Time Warner
Book Group, has been a supplier of books to Advanced Marketing
Services, Inc., over the past 20 years.  The Debtors have listed
Hachette Book as their fourth largest unsecured creditor,
holding an unsecured claim for US$22,569,624.

Jeffrey A. Marks, Esq., at Squire, Sanders & Dempsey L.L.P, in
Cincinnati, Ohio, says that during the 45 days before the
Debtors filed for bankruptcy, Hachette Book sold books to AMS
for which it has not yet been paid.  Accordingly, Hachette Book
has the right to reclaim the books sold to AMS during that
period under Section 546(c) of the Bankruptcy Code, and to an
administrative expense claim for those books sold to AMS during
the 20-day period before the Petition Date under Section
503(b)(9).

To that end, on Dec. 29, 2006, Hachette Book sent an initial
reclamation demand to Mark D. Collins, Esq. of Richards, Layton
& Finger, P.A., the Debtors' proposed local counsel, demanding
reclamation and reserving its rights to supplement and amend its
reclamation demand upon further review of its books and records.

Hachette Book complain that pursuant to the DIP Loan Facility,
the Borrowers have obligated themselves, via an affirmative
covenant in the DIP Loan Agreement, to comply with the Qualified
Transaction Timeline providing, among other things, that:

   (i) within 10 days after the Petition Date, the Borrowers
       must file a motion to sell all or substantially all of
       their assets, or refinance or recapitalize so as to pay
       the Lenders in full; and

  (ii) within 50 days after filing the Sale Motion, the
       Borrowers must have received cash proceeds from a sale or
       other transaction sufficient to pay the Lenders in full.

Mr. Marks notes that this obligation under the DIP Loan Facility
will fundamentally and irrevocably dictate the course of conduct
of the Debtors' bankruptcy case.  However, the Court, creditors
and other parties-in-interest simply have not been provided
sufficient information or opportunity to determine whether a
sale or other transaction, under the time frame stipulated, is
an appropriate resolution of the bankruptcy case, and is
otherwise in the best interests of the Debtors' estate and
creditors.

Mr. Marks also asserts that:

   (a) The request fails to specify a proposed maximum borrowing
       for the period before the Final Hearing;

   (b) The proposed time frame within which to investigate and,
       if appropriate, challenge, the position of the
       Lender/Senior Lender is too short and is overbroad in
       certain respects;

   (c) Certain provisions relating to the Professional Fee
       Carve-Out Expenses are unclear, specifically, the
       distinction between the US$2,000,000 carve-out that is
       proposed to be in effect before a Payoff Event and the
       US$3,000,000 carve-out after a Payoff Event; and

   (d) The procedure for approval of a Non-Material Amendment is
       inappropriate to the extent that it permits an
       abbreviated approval process for an amendment that may in
       fact be material.  The definition of Non-Material
       Amendment encompasses provisions as any new, subsequent,
       modified, restated or amended covenants or conditions
       acceptable or required by the Lenders.  The covenants or
       conditions could very well include material provisions.

Accordingly, Hachette Book asks the Court to deny the Debtors'
request.

Quarto, Inc.; Quarto Publishing, PLC; Book Sales, Inc.; Creative
Publishing International, Inc.; Walter Foster, Inc.; and Design
Eye Limited, agree with Hachette's arguments.

The Quarto Entities assert claims exceeding US$3,200,000 against
the Debtors.

The Quarto Entities also contend that the US$2,400,000 extension
fee paid on July 31, 2006, to the Lenders under the Debtors'
Loan and Security Agreement with Wells Fargo Foothill, Inc., as
well as the US$750,000 closing fee under the DIP Facility are
excessive and should be subject to close examination and
disallowance.

The Quarto Entities are represented in the Debtors' cases by
Victor A. Sahn, Esq., at Sulmeyer Kupetz, in Los Angeles,
California.

                    About Advanced Marketing

Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized  
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry.  The company
has operations in the U.S., Mexico, the United Kingdom, and
Australia, and employs approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated, filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., and Alexandra B. Feldman, Esq., at O'Melveny &
Myers, LLP, represent the Debtors.  Chun I. Jang, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., are the Debtors' local counsel.  When the Debtors
filed for protection from their creditors, they listed estimated
assets and debts of more than US$100 million.  The Debtors'
exclusive period to file a chapter 11 plan expires on Apr. 28,
2007.  (Advanced Marketing Bankruptcy News, Issue No. 2;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


ADVANCED MARKETING: Court Authorizes Use of Cash Collateral
-----------------------------------------------------------
The Hon. Christopher S. Sontchi of the United States Bankruptcy
Court for the District of Delaware authorized Advanced Marketing
Services Inc. and its debtor-affiliates, on an interim basis, to
use the Secured Lenders' Cash Collateral.

Judge Sontchi rules that it will be an event of default if the
Debtors use the Lenders' Cash Collateral without further
express, written consent of the Lenders.

The Loan and Security Agreement dated April 27, 2004, among the
Debtors, Wells Fargo Foothill Inc., as agent, and a syndicate of
lenders, is secured by a first priority security interest on
substantially all of the Debtors' assets, all products and
proceeds of the assets, and all cash proceeds and all other cash
equivalents and cash collateral.

Curtis R. Smith, AMS's vice-president and chief financial
officer, relates that the Senior Facility imposes numerous
restrictions on the Debtors' ability to access their cash.

Before the Petition Date, virtually all of the Debtors' cash
from operations was swept daily into an account controlled by
Foothill and applied to the loans outstanding, then re-advanced
as loans in accordance with the borrowing base formula as
established and adjusted by Foothill from time to time.

As of the Petition Date, the borrowing base formula under the
Senior Facility totaled US$64,764,447.  In contrast, Mr. Smith
says, the Senior Lenders are secured by approximately
US$147,500,000 in accounts receivable, approximately
US$72,500,000 in inventory, as well as other valuable collateral
including Advanced Marketing Services' interests in foreign
subsidiaries, fixed assets and intellectual property.

As of the Petition Date, the Debtors were obligated to the
Senior Lenders for the principal amount drawn on the Revolving
Loans plus accrued and unpaid interest and certain additional
unpaid fees and expenses totaling US$41,514,347.

Pursuant to an Inter-company Subordination Agreement between the
Debtors and certain of their subsidiaries, as Obligors, and
Foothill, the parties agreed to subordinate the payment of all
indebtedness, liabilities and other obligations of each Obligor
owing to any other Obligor to the payment of the US$41,514,347
Indebtedness.

Mr. Smith reminds the Court that the Debtors have secured a
US$75,000,000 postpetition facility from Foothill.  In that
regard, the Debtors obtained the express consent of the Senior
Lenders to use the prepetition Cash Collateral in connection
with the DIP Loan Facility.

Accordingly, the Debtors seek the Court's authority to use the
Secured Lenders' Cash Collateral.

To secure all postpetition obligations due to the Lenders by the
Debtors, the Debtors propose to grant the Lenders a lien with
priority and senior to all other liens, other than validly
perfected prepetition liens that would otherwise be senior and
prior to the Senior Lenders' prepetition liens, on all of the
Debtors' prepetition, present and future assets.  Moreover, upon
the occurrence of a Default or Event of Default, each Borrower
waives any right to use Cash Collateral.

                          *     *     *

Judge Sontchi will convene a hearing to consider approval of the
Debtors' request on a final basis on January 24, at 10:00 a.m.
Objections, if any, are due January 22.

                     About Advanced Marketing

Based in San Diego, California, Advanced Marketing Services Inc.
-- http://www.advmkt.com/-- provides customized merchandising,  
wholesaling, distribution and publishing services, currently
primarily to the book industry.  The company has operations in
the U.S., Mexico, the United Kingdom and Australia, and employs
approximately 1,200 people worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated, filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors.  When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than US$100 million.  The Debtors' exclusive
period to file a Chapter 11 plan expires on Apr. 28.  (Advanced
Marketing Bankruptcy News, Issue No. 1; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AKERMAN-APACHE: Members Appoint Joint Liquidators
-------------------------------------------------
At a general meeting held on Dec. 22, 2006, the members of
Akerman-Apache (Joint Venture) Pty Ltd appointed Anthony Warner
and Steven Kugel as the company's joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Anthony Warner
         Steven Kugel
         Registered Liquidators
         CRS Warner Sanderson
         Level 5, 30 Clarence Street
         Sydney, New South Wales 2000
         Australia
         Website: http://www.crswarnersanderson.com.au

                      About Akerman-Apache

Akerman-Apache (Joint Venture) Pty Ltd operates drilling oil and
gas wells.

The company is located in New South Wales, Australia.


AMAZING PAINT: To Declare First Interim Dividend on February 14
---------------------------------------------------------------
Amazing Paint Discounts Pty Ltd, which is subject to a deed of
company arrangement, will declare a first interim dividend on
Feb. 14, 2007.

Creditors are required to submit their proofs of debt by
Jan. 30, or they will be excluded from sharing in the dividend.

The deed administrators can be reached at:

         B. R. Silvia
         A. J. Love
         Ferrier Hodgson
         Level 13, 225 George Street
         Sydney, New South Wales 2000
         Australia

                         About Amazing Paint

Established in 1985, Amazing Paint Discounts Pty Ltd is an
independent paint specialist in Australia with 36 stores
throughout Sydney, Brisbane, Wollongong, Newcastle, and
Canberra.


AYMTOLD PTY: Creditors Must Prove Debts by January 30
-----------------------------------------------------
Aymtold Pty Ltd, which is subject to a deed of company
arrangement, will declare a first interim dividend on Feb. 14,
2007.

Accordingly, creditors are required to prove their debts by
Jan. 30, or they will be excluded from sharing in the
distribution.

The deed administrators can be reached at:

         B. R. Silvia
         A. J. Love
         Ferrier Hodgson
         Level 13, 225 George Street
         Sydney, New South Wales 2000
         Australia

                        About Aymtold Pty

Aymtold Pty Ltd -- trading as Amazing Paints -- operates paint,
glass, and wallpaper stores.

The company is located in New South Wales, Australia.


BARROJEST PTY: Creditors' Proofs of Claim Due on January 30
-----------------------------------------------------------
Barrojest Pty Ltd, which is subject to a deed of company
arrangement, will declare a first interim dividend on Feb. 14,
2007.

Creditors are required to file their proofs of claim by
Jan. 30, to be included in the company's distribution of
dividend.

The deed administrators can be reached at:

         B. R. Silvia
         A. J. Love
         Ferrier Hodgson
         Level 13, 225 George Street
         Sydney, New South Wales 2000
         Australia

                       About Barrojest Pty

Barrojest Pty Ltd operates paint, glass, and wallpaper stores.

The company is located in New South Wales, Australia.


CERTIFIED PLUMBING: Commences Wind-Up of Operations
---------------------------------------------------
At a separate meeting held on Dec. 15, 2006, the members and
creditors of Certified Plumbing Services Pty Ltd resolved to
voluntarily wind up the company's operations and appointed Ozem
Kassem as liquidator.

The Liquidator can be reached at:

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

                    About Certified Plumbing

Certified Plumbing Services Pty Limited provides miscellaneous
personal services.

The company is located in New South Wales, Australia.


DOUGLAS OGILVIE: Members Decide to Close Business
-------------------------------------------------
On Dec. 14, 2006, the members of Douglas Ogilvie the Sawmiller
Pty Ltd met and resolved to voluntarily wind up the company's
operations.

Accordingly, Samuel Richwol was appointed as liquidator.

The Liquidator can be reached at:

         Samuel Richwol
         O'Keeffe Walton Richwol
         431 Burke Road, Glen Iris 3146
         Australia
         Telephone:(03) 9822 9823

                     About Douglas Ogilvie

Douglas Ogilvie the Sawmiller Pty Ltd operates sawmills and
planing mills.

The company is located in Queensland, Australia.


ENESCO GROUP: Posts US$5.5MM Net Loss for Quarter Ended Sept. 30
----------------------------------------------------------------
Enesco Group, Inc., reported financial results for the third
quarter ended Sept. 30, 2006.

         Third Quarter 2006 and Recent Highlights

   -- Enesco signed a thirteenth amendment to its U.S. credit
      facility, which has the effect of extending the current
      financing until Dec. 29, 2006, and requires Enesco to
      enter into a definitive agreement by Nov. 30, 2006, for
      a transaction that will refinance the credit facility.

   -- During the quarter, Enesco engaged Mesirow Financial,
      Inc., to assist in pursuing alternative financing and
      reviewing strategic alternatives with the company.

   -- Net revenues for the third quarter were US$50.8 million
      compared to US$75.5 million in the third quarter of 2005,
      largely reflecting the elimination of Precious Moments
      sales as of December 2005, lower than planned supplier
      production in China and shipping delays.

   -- Third quarter gross profit margin increased to 42% versus
      41% from a year ago.

   -- Third quarter SG&A decreased 20% to US$23.8 million from
      US$29.9 million in the third quarter of 2005.

   -- Net loss for the third quarter increased to US$5.5 million
      from a net loss of US$2.1 million in the third quarter of
      2005, primarily due to lower sales during the quarter,
      despite a reduction in operating expenses.

   -- N.C. Cameron & Sons, Enesco's Canadian subsidiary, was
      named 2006 Supplier of the Year by the Canadian Gift &
      Tableware Association.

                          Third Quarter

Net revenues were US$50.8 million compared to US$75.5 million in
the third quarter of 2005.  Third quarter 2006 revenues do not
include U.S. Precious Moments sales while third quarter 2005
included US$10.9 million in U.S. Precious Moments sales.  
Excluding U.S. sales of Precious Moments from the third quarter
of 2005, net revenues in the third quarter of 2006 were down 21%
from the US$64.6 million in the year-ago period.  The sales
decline in the third quarter 2006 primarily reflects the impact
from slower ramp-up of product shipments out of our third-party
warehouse and distribution facility in China due to lower than
planned production in China, lost sales of replenishment product
due to U.S. shipping delays from our third-party warehouse and
distribution facility in Indiana, and lower sales of collectible
products.

Gross profit was US$21.4 million compared to US$31.2 million in
the third quarter of 2005.  Gross profit margin increased to 42%
from 41% in the third quarter of 2005.  Gross profit margin
during the quarter, excluding the impact of Precious Moments
revenues in the year-ago period, decreased 1.8 percentage points
due primarily to higher royalty costs and unrecovered freight
costs.

Selling, general and administrative expenses decreased US$6.1
million, or 20%, to US$23.8 million from US$29.9 million
reported in the third quarter of 2005.  The decrease reflects
reduced salary expense, reduced consulting and temporary
services, and lower commissions due to reduced sales.

Operating loss from the continuing operations for the third
quarter was US$2.4 million compared to operating income of
US$1.2 million in the same period in 2005, due to the impact
from the shortfall in sales that was partially offset by the
improvement in the gross margin percentage and lower SG&A
expenses.

Third quarter net loss was US$5.5 million, or (US$.36) per
diluted share, compared to a net loss of US$2.1 million, or
(US$.14) per diluted share, in the third quarter of 2005. Net
loss for the quarter primarily reflects lower sales despite
lower operating costs.

Basil Elliott, president and Chief Executive Officer of Enesco,
stated, "Management's immediate priority is to secure
replacement financing for the company.  In so doing, we retained
Mesirow Financial, Inc., to assist us in our efforts, as well as
to explore any strategic alternatives.  In addition, we recently
signed an amendment to our existing credit facility, which has
the effect of continuing our current financing until Dec. 29,
2006.  We appreciate our lenders' cooperation and are working
toward fulfilling our obligation to enter into a definitive
agreement by the end of this month, as indicated in the
amendment, for a transaction that will refinance our current
credit facility."

Regarding third quarter results, Mr. Elliott commented,
"Throughout the year, we have been aggressively implementing our
Operating Improvement Plan.  We are beginning to realize
positive initial results from that Plan, most significant of
which has been our effort to reduce the corporate overhead,
general, administrative and marketing costs.  Through the first
nine months of 2006, SG&A costs have been reduced by more than
US$20 million.  We believe that we are on our way to achieve our
2007 goal of generating US$26.7 million in pre-tax annualized
cost savings."

"Our revenues for the quarter were negatively impacted by the
loss of production capacity in China during the first six months
of this year," added Mr. Elliott.  "This was an outcome from the
product rationalization late last year.  While we were able to
secure sufficient capacity for the remainder of 2006 in May,
those product orders, which would have shipped during the summer
months, are expected to ship in the fourth quarter.  As a
result, we expect revenues for the fourth quarter to be higher
in aggregate versus the fourth quarter of 2005. "

                       About Enesco Group

Enesco Group, Inc. --- http://www.enesco.com/-- is a world  
leader in the giftware, and home and garden decor industries.  
Serving more than 44,000 customers worldwide, Enesco distributes
products to a wide variety of specialty card and gift retailers,
home decor boutiques, as well as mass-market chains and direct
mail retailers.  Internationally, Enesco serves markets
operating in the United Kingdom, Canada, Europe, Mexico, and
Australia, among others.  With subsidiaries located in Europe
and Canada, and a business unit in Hong Kong, Enesco's
international distribution network is a leader in the industry.  
Enesco's
product lines include some of the world's most recognizable
brands, including Border Fine Arts, Bratz, Circle of Love,
Foundations, Halcyon Days, Jim Shore Designs, Lilliput Lane,
Pooh & Friends, Walt Disney Classics Collection, and Walt Disney
Company, among others.

                       Credit Default

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Enesco is continuing to aggressively pursue long-term debt
financing.  Enesco previously had agreed to obtain a commitment
for long-term financing by Aug. 7, 2006.  Because Enesco has not
obtained a commitment, the company is in default of its current
credit facility agreement.

Enesco is working with the lenders for possible additional loans
or terms and conditions, but has been advised that the lenders
are not committing to waive the default.


ENESCO GROUP: Bank Lenders Limit Credit Facility Advances
---------------------------------------------------------
Enesco Group Inc. reported that the lenders under its senior
credit facility with Bank of America N.A. and LaSalle Bank N.A.
have elected to allow future advances under the credit facility
only on a limited discretionary basis.

The company continues to seek refinancing for the senior credit
facility and to pursue other restructuring alternatives.  The
company said there could be no certainty as to whether it will
be successful in achieving its goals.

                       About Enesco Group

Enesco Group, Inc. --- http://www.enesco.com/-- is a world  
leader in the giftware, and home and garden decor industries.  
Serving more than 44,000 customers worldwide, Enesco distributes
products to a wide variety of specialty card and gift retailers,
home decor boutiques, as well as mass-market chains and direct
mail retailers.  Internationally, Enesco serves markets
operating in the United Kingdom, Canada, Europe, Mexico, and
Australia, among others.  With subsidiaries located in Europe
and Canada, and a business unit in Hong Kong, Enesco's
international distribution network is a leader in the industry.  
Enesco's product lines include some of the world's most
recognizable brands, including Border Fine Arts, Bratz, Circle
of Love, Foundations, Halcyon Days, Jim Shore Designs, Lilliput
Lane, Pooh & Friends, Walt Disney Classics Collection, and Walt
Disney Company, among others.

                       Credit Default

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Enesco is continuing to aggressively pursue long-term debt
financing.  Enesco previously had agreed to obtain a commitment
for long-term financing by Aug. 7, 2006.  Because Enesco has not
obtained a commitment, the company is in default of its current
credit facility agreement.

Enesco is working with the lenders for possible additional loans
or terms and conditions, but has been advised that the lenders
are not committing to waive the default.


EVANS & TATE: Rejects Yarraman Winery Merger Proposal
-----------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
January 8, 2007, Evans & Tate Limited received a conditional
proposal from United States-based wine company Yarraman Winery,
Inc., for a merger -- by way of a scheme of arrangement -- of
the companies.

According to the TCR-AP, the Board of Evans & Tate noted that it
has neither approved nor dismissed the offer.  The Board
clarified that it is not bound by the Yarraman offer, adding
that it intended to fully consider and evaluate the offer and
provide its view of the offer in due course.

In a statement filed at it Web site, Evans & Tate relates that
it has analyzed the offer together with its advisors.  Evans &
Tate representatives have met with Yarraman representatives and
raised various matters with Yarraman as matters requiring
further consideration and negotiation.  These matters, however,
do not enable Evans & Tate to accept the Offer in its current
form, the company reveals.

                      About Yarraman Winery

Yarraman Winery Inc. -- http://www.yarramanestate.com-- which  
operates through its Australia-based wholly owned subsidiary
Yarraman Estate, commenced trading as a public company in the
USA in December 2005. The company has a current market
capitalization of US$58.75 million (as at December 21, 2006)
with high quality branded winery and vineyard assets.

The company made the strategic decision to publicly list in the
USA to gain access to US equity and distribution markets.  
Following the US listing, the company secured senior managers
from Allied Domecq World Wines as its management team, who bring
many years experience in the global wine industry.

Yarraman produces and sells award-winning premium, super-
premium, and ultra-premium wines made from grapes grown on
vineyards in the Upper Hunter Valley and Gundagai.  The wines
are produced at its 2,500 tonne state of the art winery at
Wybong, in the Upper Hunter Valley.  Yarraman's wines are sold
in Australia and internationally, principally under Yarraman's
own labels.

                    About Evans & Tate

Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine  
company listed on the Australian Stock Exchange.  The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.

In June 2005, rumors began brewing that the winemaker was
carrying total liabilities of AU$127.5 million, of which
AU$102.5 million was interest-bearing debt.  A few days later,
Evans & Tate admitted that it had been coordinating with
insolvency firm KordaMentha on the recommendation of its major
creditor, ANZ Banking Group Limited.  It had appointed
KordaMentha's 333 Performance Management "to improve its
forecasting, planning and business efficiencies."  Evans & Tate
also admitted that it was cash flow negative and had sought an
AU$8.5-million capital injection from ANZ Bank.  The firm
further said that it would cut the value of its wine inventories
by AU$8 million to AU$10 million, offload stock at a discount,
and cut the carrying value of certain wineries.  In July 2005,
Evans & Tate has secured an additional AU$10 million in short-
term working capital from ANZ.

The Troubled Company Reporter - Asia Pacific reported on
July 18, 2006, that Evans & Tate has already written down the
value of its inventory by AU$39 million over the past year and
reported a AU$44-million first-half loss.

In the first half of 2006, Evans & Tate had taken steps to sell
its Griffith and Mildura Wineries to reduce debts, which are
estimated to be more than AU$160 million, and meet restructuring
costs.

On August 25, 2006, it completed the sale of its Griffith winery
in the New South Wales Riverina to TWG Australia, which is the
Australian subsidiary of California-based The Wine Group
LLC, for AU$8 million.  The Griffith Winery Sale, the TCR-AP had
noted, brings the amount that Evans & Tate will get from asset
realization to more than AU$30 million.

Furthermore, a company statement disclosed that on August 29,
2006, the sale of its Mildura Winery to Roberts Estate was
completed for a total consideration of AU$22 million.


G & A THOMSON: Undergoes Wind-Up Proceedings
--------------------------------------------
At an extraordinary general meeting held on Dec. 21, 2006, the
members of G & A Thomson Earthmoving Repairs & Service Pty Ltd
resolved to voluntarily wind up the company's operations.

Subsequently, Daniel I. Cvitanovic was appointed as liquidator
at the creditors' meeting held that same day.

The Liquidator can be reached at:

         Daniel I. Cvitanovic
         Chartered Accountant
         Shop 5, Old Potato Shed
         74-76 Hoddle Street
         Robertson, New South Wales 2577
         Australia
         Telephone: 02 4885 2500
         Facsimile: 02 4885 2995

                      About G & A Thomson

G & A Thomson Earthmoving Repairs & Service Pty Ltd operates
repair shops and provides related services.

The company is located in New South Wales, Australia.


GALIM IMPORTS: Creditors Opt to Liquidate Business
--------------------------------------------------
The creditors of Galim Imports Pty Ltd met on Dec. 13, 2006, and
resolved to liquidate the company's business.

Gideon Rathner and David Coyne were subsequently appointed as
joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Gideon Rathner
         David Coyne
         Lowe Lippmann
         Chartered Accountants
         5 St Kilda Road
         St Kilda, Victoria 3182
         Australia

                       About Galim Imports

Galim Imports Pty Ltd is a manufacturer and distributor of swim
wears.

The company is located in Victoria, Australia.


GRACLO PTY: Schedules Final Meeting on February 12
--------------------------------------------------
Graclo Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on Feb. 12, 2007, at
10:00 a.m.

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

The Liquidator can be reached at:

         R. W. Whitton
         Lawler Partners
         Chartered Accountants
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia

                        About Graclo Pty

Graclo Pty Limited operates miscellaneous retail stores.

The company is located in New South Wales, Australia.


HYDROCARE AUSTRALIA: Placed Under Voluntary Wind-Up
---------------------------------------------------
On Dec. 21, 2006, the shareholders of Hydrocare Australia Pty
Ltd passed a special resolution to voluntarily wind up the
company's operations and appointed John Lord as liquidator.

The Liquidator can be reached at:

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

                   About Hydrocare Australia

Hydrocare Australia Pty Limited is involved with chemical
preparation.

The company is located in New South Wales, Australia.


JAD CLOTHING: Members and Creditors to Receive Wind-Up Report
-------------------------------------------------------------
The members and creditors of JAD Clothing Pty Ltd will meet on
Feb. 9, 2007, at 10:30 a.m., to receive the liquidator's report
regarding the company's wind-up proceedings.

As reported by the Troubled Company Reporter - Asia Pacific, the
company was placed under voluntary liquidation on Oct. 5, 2006.

The Liquidator can be reached at:

         M. C. Donnelly
         Ferrier Hodgson
         GPO Box 4114
         Sydney, New South Wales 2001
         Australia

                       About JAD Clothing

Jad Clothing Pty Limited manufactures blouses and shirts for
women.

The company is located in New South Wales, Australia.


JAMES HARDIE: Dutch Dividend Reduced to 15% Effective Jan. 1
------------------------------------------------------------
In a letter to its securities holders filed with the Australian
Securities Exchange, James Hardie Industries N.V. states that as
a result of recent changes to legislation in The Netherlands,
the Dutch national dividend withholding tax rate has been
reduced from 25% to 15% effective January 1, 2007.  Accordingly,
the dividend payment is, in principle, subject to 15% Dutch
dividend withholding tax.

This 15% rate applies with respect to all dividend payments to
securities holders resident in Australia, irrespective of
whether they hold the securities in their own right, or as a
custodian, nominee, or trustee.

Australian resident securities holders will no longer need to
complete either the Form A or the IB-92 Universeel form to be
entitled to the 15% withholding tax rate.

Securities who are resident outside Australia may be entitled to
an even lower Dutch dividend withholding tax rate by virtue of a
tax treaty between their country of residence and The
Netherlands.  If such a lower rate is applicable, these
securities holders will have to comply with the respective rules
and regulations on an individual basis to get the reduction from
the Dutch dividend withholding tax rate to the rate provided for
in the tax treaty.

James Hardie notes however, that the information it has provided
is only a guide, which should not be relied on as advice.  The
company encourages parties-in-interest that are in doubt about
their tax position, or whether they can claim a refund of Dutch
tax to consult their own tax adviser.

                      About James Hardie

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

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

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

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

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

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


JAMES HARDIE: MRCF to Sue Hardie If AU$1.5-Bil. Deal Crashes
------------------------------------------------------------
The Medical Research and Compensation Foundation is prepared to
sue James Hardie Industries N.V. if shareholders reject a
AU$1.5-billion compensation deal for Hardie's asbestos victims,
The Australian reports.

Hardie established MRCF to meet its asbestos disease
responsibilities.  Hardie established the MRCF on Feb. 15, 2001,
with what turned out to be an AUD1 billion-plus shortfall.

The MRCF will lodge a statement of claim if the extraordinary
general meeting, set for Feb. 7, 2007 in Amsterdam, The
Netherlands, does not approve the agreement.  The MRCF would be
ready to act within a week of the meeting to keep within the
six-year statute of limitations.

The plan has been developed by MRCF chairman Ian Hutchinson and
co-directors Nancy Milne and Graham Kelly.

The Hardie board will recommend to shareholders they approve the
plan to pay up to 35% of Hardie's free cashflow each year into a
new special-purpose fund to meet compensation claims
from future victims of the asbestos Hardie produced up until
1987.

However, Hardie chairwoman Meredith Hellicar told an annual
meeting that some shareholders had expressed concern that the
Company intended to pay the money even though it maintains it
has no legal obligation to do so.

The Australian Securities and Investments Commission is
investigating New South Wales Special Commissioner David
Jackson's findings of wrongdoing by Hardie and its officers in
relation to MRCF's establishment.

James Hardie Industries N.V. uses cellulose-reinforced fiber
cement to create products for residential and commercial
construction, including siding, external cladding, walls,
fencing, and roofing.  The Company makes fiber-reinforced
concrete pipe through its Hardie Pipe business and roofing
through Artisan Roofing. The Company is based in Amsterdam, The
Netherlands.

                      About James Hardie

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

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

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

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

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

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


K WONSON: Members Resolve to Wind Up Firm
-----------------------------------------
The members of K Wonson Pty Ltd met on Dec. 21, 2006, and
resolved to voluntarily wind up the company's operations.

In this regard, Danny Vrkic was appointed as liquidator.

The Liquidator can be reached at:

         Danny Vrkic
         Jirsch Sutherland & Co - Wollongong
         Chartered Accountants
         Level 3, 6-8 Regent Street
         Wollongong, New South Wales 2500
         Australia
         Telephone:(02) 4225 2545
         Facsimile:(02) 4225 2546

                         About K Wonson

K Wonson Pty Ltd operates hotels and motels.

The company is located in New South Wales, Australia.


PRIMELIFE CORPORATION: Court Orders Madden Grove Scheme Wind-Up
---------------------------------------------------------------
On December 21, 2006, Primelife Corporation Ltd. confirmed that
the Federal Court made orders to wind up the unregistered
managed investment scheme relating to the development site in
Madden Grove, Kew owned by Madden Grove Developments Pty Ltd, a
company in which Primelife has a 50% interest.

Primelife also confirmed MGD has agreed with the managers of the
investment syndicate, formed to acquire the Property, to resolve
all outstanding issues in connection with the Property.

The terms of settlement with the investor syndicate are
conditional upon final winding up orders being made by the
Federal Court, which are expected to be made on April 17, 2007.

Primelife Managing Director, John Martin, said that, "Primelife
is pleased that all outstanding issues have been resolved with
the investor syndicate in relation to the Property."

"As a result of the orders made yesterday by the Federal Court,
there are only 2 investment schemes relating to facilities
managed by Primelife yet to enter into the winding up process on
terms acceptable to Primelife," Mr. Martin noted.

"Primelife will continue to focus on delivering on our core
business objectives of providing premium living accommodation
for seniors across Australasia as well as achieving strong
returns for our investors," Mr. Martin concluded.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au/-- develops and manages properties  
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.

Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  ASIC also applied for the schemes to be wound up.

The ASIC alleged that the schemes are not registered, as
required under the Corporations Act.  ASIC brought the Federal
Court proceedings against Primelife and a number of other
defendants including parties who, ASIC alleges, have been
involved in promoting and managing the schemes to a large number
of investors since 1997.

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.


PRIMELIFE CORPORATION: To Convert PLFGB Notes to Ordinary Shares
----------------------------------------------------------------
On December 5, 2006, the Troubled Company Reporter - Asia
Pacific reported that Primelife Corporation Limited has
disclosed that its 9.5% converting notes mature on December 14,
2006.  Accordingly, Primelife's board of directors has
determined to capitalize the December 14, 2006 interest payment
on the PLFGB Notes.

The TCR-AP said that all holders of PLFGB Notes are entitled to
convert all or some of their PLFGB Notes into ordinary shares in
the period November 29, 2006, to December 14, 2006.  PLFGB Notes
that have not been converted before December 14, 2006, will
subsequently automatically convert to Primelife ordinary shares.  

In an update, Primelife advises that it will be converting the
remaining 9.5% PLFGB Notes to fully paid ordinary shares in
Primelife on January 10, 2007.

The conversion price is expected to be AU$1.25 which will
represent eight new Primelife ordinary shares for every 10 PLFGB
Notes held on the Conversion Date.  Primelife expects to
dispatch a conversion notice and transaction confirmation
statement to holders of remaining PLFGB Notes by January 12,
2007.  Holding statements in respect of the new ordinary shares
in Primelife are expected to be despatched by the end of the
month.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au/-- develops and manages properties  
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.

Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  ASIC also applied for the schemes to be wound up.

The ASIC alleged that the schemes are not registered, as
required under the Corporations Act.  ASIC brought the Federal
Court proceedings against Primelife and a number of other
defendants including parties who, ASIC alleges, have been
involved in promoting and managing the schemes to a large number
of investors since 1997.

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.


SWIMMING POOL: Enters Wind-Up Proceedings
-----------------------------------------
At an extraordinary general meeting held on Dec. 21, 2006, the
members of Swimming Pool Interiors Pty Ltd resolved to
voluntarily wind up the company's operations.

Accordingly, Mark Robinson and Graham Stephenson were appointed
as joint and several liquidators at the creditors' meeting held
that same day.

The Joint and Several Liquidators can be reached at:

         Mark Robinson
         Graham Stephenson
         PPB
         Chartered Accountants
         Level 46, MLC Centre
         19 Martin Place, Sydney, New South Wales
         Australia

                      About Swimming Pool

Swimming Pool Interiors Pty Ltd is involved with masonry, stone
setting, and other stone work.

The company is located in Queensland, Australia.


THEATRE ADVENTURES: Enters Voluntary Liquidation
------------------------------------------------
At a general meeting held on Dec. 23, 2006, the members of
Theatre Adventures Pty Ltd passed a special resolution to
voluntarily liquidate the company's business and distribute the
proceeds of its assets disposal.

The liquidator can be reached at:

         Gary Fifer
         Gary E. Fifer & Associates
         19 Northcote Street
         Haberfield 2045
         Australia

                    About Theatre Adventures

Theatre Adventures Pty Ltd -- trading as Organise Pandemonium
and Organise Pandemoniam -- provides management services.

The company is located in New South Wales, Australia.


ULTRA LINE: Members' Final Meeting Slated for February 13
---------------------------------------------------------
A final meeting of the members of Ultra Line Electrical Services
Pty Ltd, will be held on Feb. 13, 2007, at 10:00 a.m.

At the meeting, the members will receive the liquidator's final
account and explanation of his report on the company's wind-up.

As reported in the Troubled Company Reporter - Asia Pacific on
July 25, 2006, Riad Tayeh and Antony de Vries were appointed to
manage the Company's wind-up activities.



The Joint and Several Liquidator can be reached at:

         Riad Tayeh
         Level 3, 95 Macquarie Street
         Parramatta
         Australia

                        About Ultra Line

Ultra Line Electrical Services Pty Ltd is a special trade
contractor.

The company is located in New South Wales, Australia.


* Arrears On Australian RMBS Transactions Rise, S&P Says
--------------------------------------------------------
Residential mortgage loans underlying prime Australian
residential mortgage-backed securities (RMBS) transactions that
are in arrears by more than 30 days rose to 1.10% in November
2006, according to statistics published by Standard & Poor's
Rating Services, on January 12, 2007.

The report, Australian RMBS Arrears Statistics, for the month
ending Nov. 30, 2006, provides a comprehensive analysis of
arrears statistics on loans underlying Australian RMBS.  
Residential mortgage loans funded through RMBS exceed $150
billion, which is a substantial portion of the residential
mortgage market in Australia.

Standard & Poor's database, which tracks the performance of
residential mortgages, covers the entire Australian RMBS market.  
It is the most comprehensive source of RMBS statistics in
Australia and provides a valuable insight into the performance
of the broader residential mortgage market in Australia.

"Arrears on both prime low and prime full documentation
residential mortgage loans rose over November, contributing to
the overall rise in the prime figures for the month," Standard &
Poor's surveillance analyst Sarah Raisbeck said.  They rose to
2.44% and 0.93% respectively in November 2006.

The overall prime statistics rose to 1.10% in November as
measured by the Australian Prime Standard & Poor's Mortgage
Performance Index (SPIN).  "Prime residential mortgage loans
that are in arrears by more than 90 days were at 0.40% at the
end of November, maintaining the high levels in 2006," said Ms.
Raisbeck.

Arrears greater than 30 days on loans underlying Australian
subprime RMBS increased to 13.25% over the month of November, up
from 12.59% at the end of October, as measured by Standard &
Poor's Australian Subprime SPIN.

Standard & Poor's Mortgage Performance Index (SPIN) measures the
weighted-average arrears greater than 30 days past due on
residential mortgage loans on both publicly and privately rated
Australian RMBS transactions.  The SPIN is calculated for prime
and subprime residential mortgage loans.  The indices identify
the percentage of loans in arrears in each of the 31-60 days,
61-90 days, and 90+ days arrears categories. Each SPIN is
calculated on a monthly basis using information provided to
Standard & Poor's by the issuers of each RMBS transaction.

Australian RMBS Arrears Statistics -- November 2006 and
Australian SPIN -- November 2006 are available at Standard &
Poor's Web site at http://www.standardandpoors.com.au/


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

BALCANOONA LTD: Creditors' Proofs of Claim Due on Jan. 26
---------------------------------------------------------
Creditors of Balcanoona Ltd are required to file their proofs of
claim to the appointed liquidators Ying Hing Chiu and Chung Miu
Yin Diana by Jan. 26, 2007.

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

The Joint Liquidators can be reached at:

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


CITICORP CHINA: Appoints Ying and Chung as Liquidators
------------------------------------------------------
Ying Hing Chiu and Chung Miu Yin Diana were appointed as joint
and several liquidators of Citicorp China Investment Management
Ltd by virtue of a special resolution of the company passed on
Dec. 29, 2006.

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


CITY FULL: Creditors Appoint Joint Liquidators
----------------------------------------------
On Jan. 5, 2006, the creditors of City Full (China) Ltd
appointed Cosimo Borrelli and Jacqueline Fangonil Walsh as the
company's joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Cosimo Borrelli
         Jacqueline Fangonil Walsh
         1401, Level 14
         Tower 1, Admiralty Centre
         18 Harcourt Road
         Hong Kong

CMC MAGNETICS: Moody's Changes Outlook on Ratings to Negative
-------------------------------------------------------------
O January 11, 2007, Moody's Investors Service changed to stable
from negative the outlook for both CMC Magnetics Corporation's
B1 corporate family rating and its Ba2.tw national scale issuer
rating.

This rating action reflects the lowering of CMC's refinancing
risk given its repayment of large maturing debts at the end of
2006.

"Near-term refinancing risk has eased through the company's
repayment of its NT$3 billion commercial paper in third quarter
of 2006, refinancing/repayment of its NT$6 billion euro-
convertible bonds in November 2006, as well as the repayment of
NT$1.65 billion in December 2006" explains Moody's Assistant
Vice President/Analyst Ken Chan.

"Neither is there currently any material maturing debt over the
next twelve months," he adds.

"Moreover, the average price of the principal raw material for
optical storage media products - polycarbonate (PC) -- dropped
from over US$3.5/KG in 2005 to around US$2.5/KG at the end of
2006 as additional PC capacity has gradually come on-stream.  
This has boosted CMC's profitability from its 2005 trough," says
Chan, also Moody's lead analyst for CMC.

However, even though there is no imminent refinancing risk over
the next twelve months -- given the commoditized nature and
inherent volatility of the optical storage media business --
there is still room for CMC to improve its capital structure and
reduce its reliance on short-term debt.  The company also needs
to strengthen its balance sheet liquidity in order to address
refinancing risk over the longer term.  Such risk is captured at
the current ratings level.

Nevertheless, upward rating pressure could evolve over time if
the company:

   1) lengthens its debt maturity profile and further improves
      balance sheet liquidity such as accumulation of cash
      reserves or the arrangement of committed bank facilities;
      and

   2) sustains its operating performance and credit profile over
      the cycle - RCF/TD exceeding 20-25% and (EBITDA-
      Capex)/Interest of over 2-3x.

On the other hand, the rating could experience downward pressure
if:

   1) the company fails to demonstrate capex discipline, which
      then exerts pressure on balance sheet liquidity to meet
its
      debt obligations over the next two years; and

   2) there is deterioration in cash flow generation, arising
      from unexpected increases in raw material costs and
      weakening DVD demand, such that RCF/TD is below 10-15% and
      (EBITDA-Capex)/Interest drops below 0.5-1.0x over the
      cycle.

CMC Magnetics Corporation, headquartered in Taiwan, is one of
the world's largest optical storage media manufacturers.


ESSERY ESTATES: Kong Chi How Johnson Steps Aside
------------------------------------------------
On Dec. 13, 2006, Kong Chi How Johnson ceased to act as
liquidator of Essery Estates Ltd.

According to the Troubled Company Reporter - Asia Pacific, Mr.
Johnson presented the company's wind-up account on Dec. 13,
2006.

The former Liquidator can be reached at:

         Kong Chi How, Johnson
         29/F, Wing On Centre
         No. 111 Connaught Road Central
         Hong Kong


KINGS INFORMATION: Enters Voluntary Wind-Up
-------------------------------------------
At an extraordinary general meeting held on Jan. 12, 2007, the
shareholders of Kings Information (H.K.) Company Ltd passed a
special resolution to voluntarily wind up the company's
operations.

In this regard, Yip Chung Lam was appointed as liquidator and
was authorized to divide the company's assets.

The Liquidator can be reached at:

         Yip Chung Lam
         21/F, Fee Tat Commercial Centre
         No. 613 Nathan Road, Kowloon
         Hong Kong


LFD (CHINA): Pass Resolution to Wind Up Firm
--------------------------------------------
On Dec. 31, 2006, the shareholders of LFD (China) Ltd passed a
special resolution to voluntarily wind up the company's
operations and appointed Rainer Hok Chung Lam and John James
Toohey as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

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


LOYAL FRIEND: Liquidators Cease to Act
--------------------------------------
On Dec. 29, 2006, Fu Kwok Ching and Ha Man Kit Marcus ceased to
act as liquidators of Loyal Friend Ltd.

The Troubled Company Reporter - Asia Pacific has reported that
the liquidators were appointed on June 20, 2006.

The former Liquidators can be reached at:

         Fu Kwok Ching
         Ha Man Kit Marcus
         Room 609, 6/F, Austin Tower
         22-26A Austin Avenue
         Tsim Sha Tsui, Kowloon
         Hong Kong


MAINLINE GLOBAL: Shareholders Opt for Voluntary Wind-Up
-------------------------------------------------------
On Dec. 29, 2006, the shareholders of Mainline Global Hong Kong
Ltd agreed to voluntarily wind up the company's operations.

Accordingly, 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

                      About Mainline Global

Mainline Global Hong Kong Limited is a distributor of computers
and computer peripheral equipment and software.

The company is located in Quarry Bay, Hong Kong.


NEW CHOICE: Creditors and Contributories to Hear Wind-Up Report
---------------------------------------------------------------
The creditors and contributories of New Choice Holdings Ltd will
meet on Feb. 14, 2007, at 10:00 a.m., to receive a report of the
company's wind-up proceedings from the company's liquidator.

The Joint and Several Liquidator can be reached at:

         Desmond Chiong
         Ferrier Hodgson Limited
         14/F Hong Kong Club Building
         3A Chater Road, Central
         Hong Kong


ROYAL & SUN: Final Meeting Slated for February 13
-------------------------------------------------
A final meeting of Royal & Sun Alliance Insurance (Hong Kong)
Ltd will be held on Feb. 13, 2007, at 3:00 p.m., to consider the
liquidator's account of the company's wind-up proceedings.

The Liquidator can be reached at:

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

                       About Royal & Sun

Royal & Sun Alliance Insurance (Hong Kong) Ltd --
http://www.royalsunalliance.com.hk/-- provides personal and  
business insurance packages.

The company is located in Quarry Bay, Hong Kong.


SIEBEL SYSTEMS: Members Decide to Wind Up Operations
----------------------------------------------------
On Dec. 31, 2006, the members of Siebel Systems Asia Ltd decided
to voluntarily wind up the company's operations and appointed
Rainier Hok Chung Lam and John James Toohey as joint and several
liquidators.

The Joint and Several Liquidators can be reached at:

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


STARWISE INDUSTRIAL: Court Orders Wind-Up
-----------------------------------------
The High Court of Hong Kong issued a wind-up order against
Starwise Industrial Ltd on Dec. 20, 2006.

The Troubled Company Reporter - Asia Pacific previously reported
that Bangkok Bank Public Company Ltd filed the petition with the
Court on Oct. 25, 2006.

                   About Starwise Industrial

Starwise Industrial Ltd -- http://www.starwise.com.hk/-- is a  
manufacturer and exporter of halogen and electronic ballasted
energy saving lamps in a variety of configurations.

The company is located in Tsuen Wan, N.T., Hong Kong.


SUNBO HOLDINGS: Members to Receive Wind-Up Report on Feb. 13
------------------------------------------------------------
The members of Sunbo Holdings Ltd will meet on Feb. 13, 2007, at
10:00 a.m., to receive a report on the company's wind-up
proceedings from Liquidator Lai Wing Kin.

According to the Troubled Company Reporter - Asia Pacific, the
company entered liquidation on May 30, 2006.

The Liquidator can be reached at:

         Lai Wing Kin
         76/F, Two International Finance Centre
         8 Finance Street, Central
         Hong Kong


TECHLITE INVESTMENT: Court Issues Wind-Up Order
-----------------------------------------------
On Dec. 27, 2006, Techlite Investment Ltd received a wind-up
order from the High Court of Hong Kong.

As reported by the Troubled Company Reporter - Asia Pacific,
Standard Chartered Bank (Hong Kong) Ltd filed the wind-up
petition before the Court on Oct. 27, 2006.


TRANFORD TRADING: Creditors Must Prove Debts by January 26
----------------------------------------------------------
Creditors of Tranford Trading Ltd are required to file their
proofs of claim by Jan. 26, 2007, to Liquidator Poon Ka Lee
Barry, for them to share in the company's dividend distribution.

As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of operations on Sept. 18, 2006.

The Liquidator can be reached at:

         Poon Ka Lee, Barry
         1607, ING Tower
         308 Des Voeux Rd Central
         Hong Kong


YANKTON ENTERPRISES: Commences Wind-Up Proceedings
--------------------------------------------------
On Dec. 20, 2006, Yankton Enterprises Ltd commenced a wind-up of
its operations and appointed Philip Richard Nicholls as
provisional liquidator.

The Provisional Liquidator can be reached at:

         Philip Richard Nicholls
         1408 World-Wide House
         19 Des Voeux Road Central
         Hong Kong


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

ALLAHABAD BANK: Sets Board Meeting for Q3 Results on Jan. 24
------------------------------------------------------------
Allahabad Bank's board of directors will hold a meeting on
Jan. 24, 2006, to take on record the bank's financial results.  
The financial statements at issue, which have been duly reviewed
by the bank's statutory auditors, are for the third quarter
ended Dec. 31, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 9, 2006, Allahabad Bank reported a INR2.100-billion net
profit for the Sept. 2006 quarter.

Allahabad Bank -- http://www.allahabadbank.com/-- is a public   
sector bank in India.  The company's offerings include personal
loans, AllBank-Expo scheme, loan against National Savings
Certificate and Kisan Vikas Patra, housing finance, furnishing
loan, car finance and education loan.  The Company offers a
range of deposit schemes to the non-resident Indians.  The
company has retail banking boutique branches all over India.
The company's other services include AllBank-Property, All
Ayushman Bima Yojana, Cash Management Services, Kisan Credit
Card, Flexi-Fix Deposit, Gold Deposit, SSI Finance, Gold Card
Scheme for Exporters, Kisan Shakti Yojana, Bancassurance and
Mutual fund, Real Time Gross Settlement and Clean Note Policy.

The Troubled Company Reporter - Asia Pacific reported on
Sept. 14, 2006, that Fitch Ratings assigned an Individual
rating of C/D to Allahabad Bank.  The Support rating is affirmed
at '4'.  The outlook on the rating is stable.


AMERICAN AXLE: Reveals Results of Special Attrition Program
-----------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., disclosed on
Jan. 11, 2007, that 1,473 UAW represented associates agreed to
participate in AAM's special attrition program.

AAM's special attrition program was offered to all UAW
represented associates at AAM's master agreement facilities.
AAM's master agreement facilities are located in Detroit,
Michigan; Three Rivers, Michigan; Buffalo, New York; Tonawanda,
New York; and Cheektowaga, New York.

Under this special attrition program, AAM offered a range of
early retirement incentives, buy-outs and educational
opportunities to its associates.  Associates who retired as part
of this program will retain all vested pension and
postretirement benefits.  Associates who accepted a buy-out will
retain vested pension benefits but forfeited other
postretirement benefits.

Approximately 265 retirement-eligible associates participated in
this program, while an additional 1,208 associates elected one
of the buyout options at these facilities.  More than 1,300 of
these associates have left the company before year-end 2006.

"The special attrition program accelerates our ability to
realign our hourly workforce with actual and projected
production and market conditions," said AAM Co-Founder,
Chairman, & CEO Richard E. Dauch.  "The structural cost benefit
to AAM resulting from the special attrition program and other
related restructuring actions should exceed US$100 million
annually.  This will enhance our ability to invest in the
continuing expansion of AAM's product portfolio, served markets,
customer base and global manufacturing footprint."

On October 4, 2006, AAM estimated that it would incur special
charges of as much as US$150 - US$250 million in 2006 for the
special attrition program and other restructuring activities.
AAM currently estimates that the total cost of the special
attrition program will approximate US$140 million.  This
includes an estimated charge of US$10 million for pension and
postretirement benefit curtailment and special termination
benefits.  This includes costs associated with salaried
workforce reductions and supplemental unemployment benefits
estimated to be payable to UAW represented associates who are
expected to be permanently idled through the end of the current
collective bargaining agreement in February 2008, AAM now
expects to incur special charges in a range of US$175 - US$200
million for these items in 2006.

In addition, AAM also announced that it plans to idle a portion
of its U.S. production capacity dedicated to the mid-size light
truck product range.  As a result of these plans and other
capacity rationalization initiatives, AAM expects to incur asset
impairment charges of as much as US$200 million in the fourth
quarter of 2006.

AAM has scheduled a conference call to review its fourth quarter
and full year results on February 2, 2007, at 10:00 a.m. EDT.
Interested participants may listen to the live conference call
by logging onto AAM's investor Web site at
http://investor.aam.com/ or calling (877) 278-1452 from the  
United States or (706) 643-3736 from outside the United States.

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

The Troubled Company Reporter - Asia Pacific reported on
Dec. 21, 2006, Moody's Investors Service confirmed American Axle
& Manufacturing Holdings Inc.'s Corporate Family Rating of Ba3
and affirmed American Axle & Manufacturing, Inc.'s Speculative
Grade Liquidity rating of SGL-2.

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

The outlook is negative.


ANDHRA BANK: Plans Foray Into Life Insurance; Seeks Partner
-----------------------------------------------------------
Andhra Bank is in the lookout for a partner to start a life
insurance venture, the Business Standard reports.

According to Business Standard, the bank already held talks with
Japan's The Dai-ichi Mutual Life Insurance, but the negotiations
did not push through because of differences over shareholding
pattern.  

Andhra Bank Executive Director Kalyan Mukherjee explained to
Business Standard that the bank would not participate in the
venture if its shareholding goes below 26%.

"If the shareholding goes below 26% then its only an investment
and not a venture, the paper quotes Mr. Mukherjee as saying.

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

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

                          *     *     *

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


ANDHRA BANK: Government Names RM Khuntia as Part-time Director
--------------------------------------------------------------
Andhra Bank informed the Bombay Stock Exchange that India's
Ministry of Finance nominated Rama Chandra Khuntia, of New
Delhi, as part-time non-official director on the bank's board.

The appointment is effective for a period of three years from
Dec. 20, 2006.

The government's recent nominations to the director post of the
bank's board include that of G B Singh who replaced Rakesh
Singh, the Troubled Company Reporter reported on Nov. 9.

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

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

                          *     *     *

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


BALLARPUR INDUSTRIES: Confirms Interim Dividend at 12% and 12.5%
----------------------------------------------------------------
Ballarpur Industries Ltd's members, at the company's 61st annual
general meeting on Dec. 12, 2006, have agreed to the
confirmation of interim dividend:

   -- at 12% paid during the year on the 12% redeemable non-
      convertible cumulative preference shares of INR100 each;
      and

   -- at 12.5% paid during the year on the company's equity
      shares.

The company's members also agreed on a final dividend at 27.5%
(including 12.5% interim dividend already paid) on the Equity
Shares for the financial year ended June 30, 2006.

The members also approved:

   -- the adoption of the company's audited balance sheet as
      of June 30, 2006, the profit and loss account for the
      financial year ended on that date, and the directors and
      auditors report on those financials;

   -- the reappointment of B Hariharan as a director of the
      company;

   -- not to reappoint Vice Admiral K K Nayyar & Dr Ram S
      Tarneja who retired by rotation at the AGM and not to fill
      up the resulting;

   -- the reappointment of K K Mankeshwar & Co., Chartered
      Accountants, Nagpur, as the company's auditors to hold
      office from the conclusion of the AGM until the conclusion
      of the next AGM;

   -- the appointment of A S Dulat as a director of the
      company, liable to retire by rotation;

   -- the appointment ofa Gautam Thapar as the company's
      chairman with effect from July 1, 2006, liable to retire
      by rotation;

   -- the appointment of R R Vederah as the company's
      managing director for a period of four years with effect
      from July 1, 2006, not liable to retire by rotation;

   -- the payment of remuneration to B Hariharan - Group
      Director (Finance), with effect from July 1, 2006;

   -- the authority of the board of directors to appoint
      branch auditors to audit the accounts of the company's
      various units and branch offices and to fix their
      remuneration; and

   -- the payment of remuneration, to the non-executives
      including the company's independent directors, subject to
      the necessary provisions & approvals.

                    About Ballarpur Industries

Headquartered in Ballarpur, India, Ballarpur Industries Limited
-- http://www.bilt.com/-- is writing and printing paper company
based in India.  BILT has five product groups: coated wood-free,
uncoated wood-free, copier, creamwove and business stationery.
There are three types of products in the coated wood-free
segment: two side coated paper, two side coated boards and
single side coated products.  The company is also a manufacturer
and exporter of paper, with a presence in all segments of the
usage spectrum that includes writing and printing paper,
industrial paper and specialty paper

On April 12, 2004, Standard and Poor's Ratings Service gave
Ballarpur Industries BB- ratings for both its long-term local  
and foreign issuer credit.


BRITISH AIRWAYS: Proposed Pension Plan Cues S&P's Watch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' long-term
corporate credit rating and its 'BB-' senior unsecured debt
rating on U.K.-based airline British Airways PLC on CreditWatch
with positive implications.

This follows an announcement that the airline's four unions are
to recommend its proposals to address changes to clear the
deficit at BA's New Airways Pensions Scheme.

"The CreditWatch placement reflects the positive implications of
the proposed pension-deficit solution for BA's capital
structure, future cash flows, and business operations," said
Standard & Poor's credit analyst Leigh Bailey.  "The proposals
should allow the group to maintain credit metrics consistent
with an investment-grade rating."

The proposals present a structured, manageable plan for the
progressive clearance of a substantial liability, and provide
important clarity on the future growth of cash contributions to
BA's main pension scheme.  In addition, the company should now
be able to focus resources on its plans for fleet renewal and
replacement.

At Sept. 30, 2006, BA reported GBP3.8 billion of total on-
balance-sheet financial debt.

Under BA's pension proposal, the company will make a one-off
contribution of GBP800 million and up to GBP150 million more in
contributions over the next three years, subject to financial
targets.  Together with a one-off employee saving of GBP400
million and changes to future benefits, the GBP2.1 billion NAPS
deficit will be reduced by more than one half to GBP900 million.
In the short term, leverage will decrease moderately reflecting
the benefits of employee savings.  BA's one-off contribution
payment will likely come from existing cash balances, which is
neutral for the company's financial profile.  Over the next 10
years, the capital structure should progressively improve as
BA clears the remaining deficit through annual contributions.

To resolve the Credit Watch status, Standard & Poor's will meet
with management to discuss the final outcome of the pension
proposals; current and future trading expectations; and the
company's funding strategy, and plans for fleet renewal and
investment.

"Any upgrade of the long-term corporate credit rating will
likely be limited to one notch, and remains subject to
successful acceptance of the pension proposals," said Mr.
Bailey.

                     About British Airways

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


EASTMAN KODAK: S&P's B+ Credit Rating Remains on Watch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services said its ratings, including
the 'B+' corporate credit rating, on Eastman Kodak Co. remain on
CreditWatch with negative implications.

The ratings were placed on CreditWatch on Aug. 2, 2006,
following the company's announcement that it had reached an
agreement to sell its Health Group to Onex Healthcare Holdings
Inc., a subsidiary of Onex Corp., for up to US$2.55 billion.  
The purchase price is composed of US$2.35 billion in cash at
closing and potential additional consideration of US$200 million
depending on future operating performance of the Health Group.

The company stated that it will use some of the proceeds to
entirely pay off its US$1.15 billion outstanding senior secured
term loan, but the use of the balance of the funds is still
under management review.  The transaction is expected to close
in the first half of 2007.  The Rochester, N.Y.-based imaging
company had US$3.3 billion in debt as of Sept. 30, 2006.

"Debt reduction from the proceeds of the transaction may not
fully offset what we regard as a negative shift in the company's
business portfolio," said Standard & Poor's credit analyst Tulip
Lim. "We are concerned about this, given the weakened
fundamentals of Kodak's traditional businesses and the
importance of developing its digital operations."

In resolving the CreditWatch listing, S&P will include an
updated assessment of the company's near- and intermediate-term
profit and cash flow potential in light of technology migration
pressures, implementation challenges, and competition facing the
remaining businesses.  The evaluation will also consider the
ultimate use of proceeds from the pending sale of Kodak's Health
Group.

                     About Eastman Kodak Co.

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

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


EASTMAN KODAK: Fitch Says Health Unit Sale May Improve Prospects
----------------------------------------------------------------
Fitch views the proposed sale of Eastman Kodak Company's Health
Group for US$2.35 billion as potentially having modest positive
credit implications for the company's senior unsecured debt
based on recovery, as Kodak plans to use US$1.15 billion of the
proceeds to fully repay its outstanding secured term debt.

Fitch currently rates Kodak, with a Negative Rating Outlook:

    -- Issuer Default Rating B;
    -- Secured credit facilities BB/RR1; and
    -- Senior unsecured debt B-/RR5.

Fitch believes the B- senior unsecured debt could potentially be
upgraded one notch based on the prospects for higher recovery
rates as a result of the proposed reduction of secured debt in
the capital structure.  However, in the absence of further
material improvement in digital revenue growth and
profitability, the IDR of B is likely to remain unchanged in the
near term as the decline in total debt is offset by the loss of
profits and business diversification benefits provided by the
Health Group following its divestiture.  Fitch will re-evaluate
Kodak's ratings subsequent to the closing of the transaction,
which is expected to occur in the first half of 2007, subject to
regulatory and other approvals.

The current recovery ratings and notching reflect Fitch's
recovery expectations under a distressed scenario.  Fitch
believes that the enterprise value of the company, and thus,
recovery rates for its creditors, will be maximized in a
restructuring scenario rather than a liquidation scenario.  
Fitch applies a significant discount to Kodak's EBITDA and
utilizes a 4 times distressed EBITDA multiple, which considers
Kodak's current multiple and multiples paid for prior
acquisitions, assuming that a stress event would indicate
business model difficulties, resulting in multiple contraction
under a stressed scenario.  

The current RR1 recovery rating for Kodak's secured bank
facility reflects Fitch's belief that 100% recovery is
realistic.  As is standard with Fitch's recovery analysis, the
revolver is fully drawn and cash balances fully depleted to
reflect a stress event.  The current RR5 Recovery Rating for the
senior unsecured debt reflects Fitch's estimate that a recovery
of only 10%-30% would be achievable.

Fitch estimates the Health Group generated US$2.5 billion of
revenue for the latest 12 months ended Sept. 30, 2006, and
operating EBITDA of approximately US$475 million-US$500 million,
or approximately 30% of Kodak's total operating EBITDA in the
period.  The Health Group is Kodak's second most profitable
business segment after the steadily declining Film and
Photofinishing Systems Group, accounting for US$286 million, or
approximately 51%, of total segment operating profit in the LTM
ended Sept. 30, 2006, based on Fitch's estimates.

Pro forma for the divestiture of the Health Group, Fitch expects
Kodak's total liquidity will increase to approximately US$3.1
billion-US$3.6 billion from US$2.1 billion as of Sept. 30, 2006,
due to the seasonally strong fourth quarter and net proceeds
after debt reduction from the sale of the Health Group.  Fitch
will monitor the outcome of Kodak's ongoing review of potential
uses for the remaining proceeds from the divesture.  Further
liquidity is provided by an undrawn US$1 billion secured
revolving credit facility due October 2010.

Fitch estimates pro forma total debt will decline to
US$1.6 billion from US$2.8 billion as of Dec. 31, 2006,
including estimated secured debt reduction of US$550 million in
the fourth quarter of 2006.  Fitch estimates full-year 2006 net
debt reduction of approximately US$740 million, indicating that
Kodak is likely to achieve its full-year debt reduction goal of
US$800 million.  Fitch believes the decline in total debt offset
by the divesture of the Health Group will decrease pro forma
leverage to 1.6x compared with approximately 2.2x at Sept. 30,
2006, and 1.8x at Dec. 31, 2006.  Pro forma interest coverage is
expected to improve to approximately 12x from nearly 6x for the
LTM ended Sept. 30, 2006, due to the redemption of variable-rate
secured debt, which carries a higher interest rate than the
remaining fixed-rate debt on the balance sheet.  Fitch believes
the company's near-term debt maturities are manageable, as the
next material debt maturity is not until 2008, when US$274
million of debt matures.

                     About Eastman Kodak Co.

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

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


GENERAL MOTORS: 2007 Priorities Include Turnaround Focus
--------------------------------------------------------
General Motors Chairman and Chief Executive Officer Rick Wagoner
disclosed the company's priorities this year.

According to Mr. Wagoner, General Motors 2007 priorities are:

   -- focusing on the North America turnaround;

   -- driving aggressively in emerging markets;

   -- maximizing the benefits of running the business globally;

   -- building on GM's comprehensive advanced propulsion
      strategy; and

   -- improving business results, especially earnings and cash
      flow.

For the North American turnaround, Mr. Wagoner pointed out that
product excellence was the most important element of the
strategy and will remain GM's number-one focus,
StreetInsider.com says.

According to RTT News, GM expects global capital spending to
increase from under US$8 billion in 2005 and 2006, to between
US$8.5 and US$9 billion in 2007 and 2008.

Mr. Wagoner admits that there is a lot more work to do but
believes the company stands in a much favorable position than a
year ago, Reuters relates.

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.


UCO BANK: Govt. Names PL Mittal as Part-time Director
-----------------------------------------------------
India's Ministry of Finance, Department of Economic Affairs,
appointed P L Mittal, Chartered Accountant, Chandigarh, as part-
time non-official director in UCO Bank Ltd's board of directors.

The appointment, under Chartered Accountant Category, is
effective from Jan. 2, 2007.

UCO Bank Limited -- http://www.ucobank.in/-- is a commercial   
bank that also operates two international financial centers, in
Hong Kong and Singapore.  It has approximately 2000 service
units spread all over India.  It undertakes foreign exchange
business in more than 50 centers in India.  The company also has
foreign exchange dealing operations at four centers.  It caters
to the segments of economy, such as agriculture, industry, trade
& commerce, service sector and infrastructure sector.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual
rating to 'D' from 'D/E'. At the same time, Fitch affirms the
bank's support ratings at 4. All ratings are with a stable
outlook.


UNION BANK OF INDIA: Hikes Prime Lending Rate to 12%
----------------------------------------------------
Effective Jan. 1, 2007, Union Bank of India's Benchmark Prime
Lending Rate increased from 11.50% p.a. to 12% p.a.  All UBI
loans linked to BPLR would undergo an upward revision in
interest rates.

In a report by The Financial Express, UBI Chairman and Managing
Director MV Nair expressed his concern over the rising interest
rates.

"Any further rise in interest rates will not be in the interest
of business," FE quoted Mr. Nair as saying.

According to Mr. Nair, UBI's home loan experienced a slowdown
due to the series of rate hikes last year.

Union Bank of India -- http://www.unionbankofindia.com/-- is   
one of the 10 largest Indian banks with total assets of over
INR800 billion as on March 31, 2006.  Union Bank was
incorporated in 1919 at Mumbai and was nationalized during the
first round of bank nationalization in 1969.  Until August 2002,
GoI fully owned the bank; currently, GoI has a 55% stake.
The bank has a nationwide presence with a geographically
diversified branch network.  As of March 31, 2006, it had 2,082
branches and 145 extension counters.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Oct. 23, 2006, that Fitch Ratings upgraded the Bank's individual
rating to 'C/D' from 'D.'

Moody's Investors Service gave the bank's foreign long-term bank
deposits a Ba2 rating.


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

AVNET INC: Sets to Release 2Q FY2007 Earnings Results on Jan. 25
----------------------------------------------------------------
Avnet, Inc., disclosed that its second quarter fiscal year 2007
earnings announcement is scheduled to be Web cast live via the
Internet at http://www.ir.avnet.com/on January 25, 2007.  Avnet  
will issue a press release outlining its financial results
followed by an interactive Web cast at 2:00 p.m. Eastern, 1:00
p.m. Central, 12:00 p.m. Mountain and 11:00 a.m. Pacific time.

Roy Vallee, Avnet's chairman and chief executive officer, and
Ray Sadowski, Avnet's chief financial officer, along with other
members of Avnet's senior management team, will comment on the
Company's results and respond to participants' questions, which
may be submitted via the Internet.

Please log on to the Web cast at least 15 minutes prior to the
start of the event to register and download any necessary
software.  Additional financial information accompanying the Web
cast will also be available at http://www.ir.avnet.com/

Avnet, Inc., headquartered in Phoenix, Arizona, is one of the  
largest worldwide distributors of electronic components and  
computer products, primarily for industrial customers.  Revenues  
for the fiscal year ended July 1, 2006 were US$14.3 billion.  It  
has operations in these Asia-Pacific countries: Indonesia,  
Australia, China, Hong Kong, India, Japan, Malaysia, New  
Zealand, Philippines and Singapore.

The Troubled Company Reporter - Asia Pacific reported on  
November 6, 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 U.S. technology  
semiconductor and distributor sector, the rating agency affirmed  
its Ba1 corporate family rating on Avnet, Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$400MM 8.00% Sr.
   Unsecured Notes
   due 2006               Ba1      Ba1     LGD3        49%

   US$250MM 6.00% Sr.
   Unsecured Notes
   due 2015               Ba1      Ba1     LGD3        49%

   US$300MM 6.625% Sr.
   Unsecured Notes
   due 2016               Ba1      Ba1     LGD3        49%

   US$300MM 2.00%
   Convertible Sr.
   Debentures due 2034    Ba1      Ba1     LGD3        49%

   Shelf - Sr.
   Unsecured            (P)Ba1    (P)Ba1   LGD3        49%

   Shelf - Subor.       (P)Ba2    (P)Ba2   LGD6        97%


GOODYEAR TIRE: Workers' Strike Could Result in US$350-Mil. Loss
---------------------------------------------------------------
The Goodyear Tire & Rubber Co. disclosed that a recent strike at
12 of its United States tire factories would result in a loss of
at least US$350 million, BBC News reports.

About 15,000 workers refused to work for two months, protesting
threats to jobs and health benefits.  The dispute, which may
have cost the company up to US$35 million a week in lost
production and sales, was settled in early January, BBC states.

However, Goodyear's shares rose by 1% after the company revealed
that it expects to save US$610 million in the wake of new worker
contracts, BBC relates.

"We recognize that there were short-term negatives from the
strike," Goodyear CEO Robert Keegan said.  "However, on balance,
the improvements in our system far outweigh those negatives."

According to the report, the company will set up a fund to pay
for healthcare for retired staff under the deal agreed by unions
earlier this month, but will probably close a plant in Texas by
2008.

Goodyear warned that the full financial brunt of the strike will
be reflected in its fourth quarter results due to be published
in February.  Experts predict a substantial loss for the three-
month period, BBC reports.

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

The Troubled Company Reporter - Asia Pacific reported on
Jan. 9, 2007, that Fitch Ratings has affirmed ratings for The
Goodyear Tire & Rubber Company and removed the ratings from
Rating Watch Negative.  The ratings were placed on Rating Watch
Negative on Oct. 18, 2006, when the company announced a US$975
million draw down of its bank revolver.  Goodyear's debt and
recovery ratings are as follows:

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

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

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

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

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

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

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


GOODYEAR TIRE: Workers Suggest Plan to Save Valleyfield Plant
-------------------------------------------------------------
Workers at the Goodyear Tire & Rubber Company's factory in
Salaberry-de-Valleyfield, Quebec, say that they have a plan to
keep the plant open, despite the company's announcement that it
will be shut down, CBC News reports.

According to the report, a union representative said that the
plant could be lucrative if it is transformed to produce higher-
demand products and that workers want Goodyear to invest in new
equipment and produce 17- to 19-inch specialized tires that are
a hot commodity in the automobile sector.

The report notes that the plan could preserve many of the 1,000
jobs expected to disappear when Goodyear winds down production
at the factory later this year.

Joseph Gargison, Quebec vice-president of the Communications,
Energy & Paperworkers' Union of Canada, which represents some of
the laid-off employees, said that the Workers have yet to meet
with Goodyear to discuss the plan, but that encounter is in the
works, CBC relates.

The report points out that Mr. Garison said the plan will also
need Government support and programs to become a reality and to
improve the deal.

The union's plan, which was endorsed by Bloc Quebecois Leader
Gilles Duceppe, would create more jobs than Goodyear's designs
for the factory, which would transform it into a materials
mixing center with about 200 workers, the report adds.

                      About Goodyear Tire

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Jan. 9, 2007, that Fitch Ratings has affirmed ratings for The
Goodyear Tire & Rubber Company and removed the ratings from
Rating Watch Negative.  The ratings were placed on Rating Watch
Negative on Oct. 18, 2006, when the company announced a US$975
million draw down of its bank revolver.  Goodyear's debt and
recovery ratings are as follows:

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

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

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

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

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

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

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


GOODYEAR: To Continue Attacking Expensive Factories, CFO Says
-------------------------------------------------------------
Goodyear Tire & Rubber Co. Chief Financial Officer Richard
Kramer said that the company will continue to attack high-cost
factories in its drive to reduce its global footprint of high-
cost facilities, Market Watch reports.

The report relates that Goodyear is in the midst of a three-year
plan to reduce the high-cost plant footprint by 8% to 12%,
leaning on plant closures and other means to accomplish the
goal.

Market Watch cites Mr. Kramer as telling analysts that Goodyear
is not done retooling its footprint.  Mr. Kramer said that the
company should be able to better compete given recent union-
contract changes, but noted that they continue to face stiff
competition from foreign competitors with lower cost bases.

Mr. Kramer further said that Goodyear is successfully managing
raw material costs despite the volatility of certain commodity
prices including rubber, the report notes.  Goodyear had been
able to raise price in the marketplace, Mr. Kramer added,
referring to the company's ability to offset commodities
pressure by passing costs onto the consumer.

                      About Goodyear Tire

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Jan. 9, 2007, that Fitch Ratings has affirmed ratings for The
Goodyear Tire & Rubber Company and removed the ratings from
Rating Watch Negative.  The ratings were placed on Rating Watch
Negative on Oct. 18, 2006, when the company announced a US$975
million draw down of its bank revolver.  Goodyear's debt and
recovery ratings are as follows:

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

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

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

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

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

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

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


HILTON HOTELS: Discloses Conversion Period for 3.375% Notes
-----------------------------------------------------------
Hilton Hotels Corp. disclosed that its 3.375% Convertible Senior
Notes due 2023 have become convertible into Hilton common stock
at the option of the holders and will remain convertible during
the fiscal quarter ending March 31, 2007.  Any determination
regarding the convertibility of the 3.375% Notes during future
periods will be made in accordance with the terms of the
Indenture governing the 3.375% Notes.

The 3.375% Notes became convertible because the closing sale
price of Hilton's common stock for at least 20 consecutive
trading days during the 30 consecutive trading day period ending
on the last trading day of the calendar quarter ended Dec. 31,
2006, was greater than 120% of the conversion price in effect on
such last trading day.

The 3.375% Notes are currently convertible at a conversion price
of US$22.50 per share, which represents a conversion rate of
approximately 44.4444 shares of Hilton's common stock per
US$1,000 principal amount of Notes.  The 3.375% Notes are
convertible into Hilton common stock in accordance with the
terms and subject to the conditions of the Notes and the
Indenture under which the Notes were issued.

                       About Hilton Hotels

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

                          *     *     *

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

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

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

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

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

   Minimum Leases
   Commitments           Ba2      Ba2      LGD4       53%

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

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

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

   Senior unsecured
   debt shelf            Ba2      Ba2      LGD4       53%

   Subordinate debt
   Shelf                 Ba3      B1       LGD6       97%

   Preferred             B1       B1       LGD6       97%


* Bank Indonesia Wants National Inflation Rate at 3-5 Percent
-------------------------------------------------------------
Bank Sentral Republik Indonesia wants the national inflation
rate to be between three and five percent, equal to inflation
rates in neighboring countries, Tempo Interactive reports.

According to the report, BI Governor Burhanuddin Abdullah said
that people who tend to spend their money fast cause high
inflation rates.  The report notes that the tendency was
influenced by people's expectations regarding the high inflation
rate that occurred in 2005.

Mr. Abdullah said that this tendency must be altered and people
must get used to a low inflation rate in the future, Tempo
relates.

The report further cites Mr. Abdullah as saying that to make
people get used to something is a long term and structural
matter and this is called an inflation targeting framework,
adding that consumers' behavior and expectations were the cause
of high core inflation.

The core inflation rate in the calendar year of 2006 reached
6.03% and this was in fact affected by the Rupiah exchange rate.
But, Mr. Abdullah said that the resultant core inflation was
lower than people's expectations.

                          *     *     *

As reported in the TCR-AP on July 27, 2006, Standard & Poor's
Ratings Service raised its long-term foreign currency rating for
Indonesia to 'BB-' from 'B+', and the long-term local currency
rating to 'BB+' from 'BB'.  S&P also affirmed the country's 'B'
short-term rating.

Fitch gave Indonesia a BB- long-term foreign currency rating.
Indonesia carries Moody's 'B1' rating.


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

BANCO BRADESCO: Approves BRL1 Trillion Capital Stock Increase
-------------------------------------------------------------
Banco Bradesco approved during a special stockholders' meeting
on Dec. 28 to increase capital stock by BRL1,200,000,000 to
BRL14,200,000,000, from BRL13,000,000,000, through the
subscription of 21,818,182 new book-entry, registered stocks,
with no par value, being 10,909,152 common stocks and 10,909,030
preferred stocks.

The stocks subscribed and integrated in the capital increase
shall be fully entitled to Dividends and Monthly and possibly
Complementary Interest on Own Capital to be declared as from the
date of their inclusion in the stockholders' position, which
will take place after the approval of the respective process by
the Brazilian central bank, as well as, to other advantages
attributed to the Banco Bradesco stocks.

                      About Banco Bradesco

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

                          *     *     *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
maintained the 'BB+' ratings on both of Banco Bradesco SA's
foreign and local currency counterparty credit rating, however
it changed the ratings outlook to positive from stable on both
ratings:

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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

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


BANCO BRADESCO: Central Bank Approves Capital Stock Increase
------------------------------------------------------------
The Central Bank of Brazil approved on Jan. 2, 2007, the capital
increase process of Banco Bradesco S.A.'s subscription of
stocks, which was disclosed in a Special Stockholder's Meeting
on Oct. 5, 2006, and ratified on Dec. 28, 2006.

Consequently, the new subscribed stocks will be incorporated
into the stockholders position on Jan. 9, 2007, becoming free
for trading.

As reported in the Troubled Company Reporter on Jan. 3, 2007,
Banco Bradesco approved during a special stockholders' meeting
on Dec. 28 to increase capital stock by BRL1,200,000,000 to
BRL14,200,000,000, from BRL13,000,000,000, through the
subscription of 21,818,182 new book-entry, registered stocks,
with no par value, being 10,909,152 common stocks and 10,909,030
preferred stocks.

The stocks subscribed and integrated in the capital increase
will be fully entitled to Dividends and Monthly and possibly
Complementary Interest on Own Capital to be declared as from the
date of their inclusion in the stockholders' position, which
will take place after the approval of the respective process by
the Brazilian central bank, as well as, to other advantages
attributed to the Banco Bradesco stocks.

                      About Banco Bradesco

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

                          *     *     *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
maintained the 'BB+' ratings on both of Banco Bradesco SA's
foreign and local currency counterparty credit rating, however
it changed the ratings outlook to positive from stable on both
ratings:

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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

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


BANCO BRADESCO: Unit Eyes BRL10B Pension Contributions in 2007
--------------------------------------------------------------
Marco Antonio Rossi -- president of Bradesco Vida e Previdencia,
the pension unit of Banco Bradesco SA -- told Business News
Americas that the firm expects new pension contributions to
increase 15% to BRL10 billion this year, compared with last
year.

Mr. Rossi commented to BNamericas, "Over the past 12 years, new
contributions have always grown over 20% a year, but staying
above 20% this year will be a difficult challenge.  Growth will
be a bit more timid in 2007, but we're working with a bigger
base.  That's what we want to happen anyway.  I'd rather grow
10% a year in a large market than 20% a year in a small market."

BNamericas relates that the latest figures from private pension
association Anapp indicated that new contributions increased
20.6% to BRL19.4 billion in the first 11 months of 2006,
compared with the same period in 2005.

Mr. Rossi expects full-year growth for 2006 to stay over 20% as
December is considered the best month of the year for the
private pension sector, the report says.

Mr. Rossi told BNamericas that sales of Vida Gerador de
Beneficio Livre or VGBL plans will continue to drive growth.
VGBL contributions increased 38.3% to BRL13.0bn reais in the
first 11 months of 2006, compared with the same period in 2005.

Banco Bradesco's size and range allow it to offer plans to all
income segments, unlike other local private pension providers
that aim for high-income investors, BNamericas notes, citing Mr.
Rossi.

Mr. Rossi told BNamericas, "We see a lot of young professionals,
people who make 2,000 or 3,000 reais a month, coming in to buy
VGBL plans.  Sometimes we see low-income earners, people who
make up to 1,000 reais a month, buying VGBL plans."

As previously reported, the VGBL and Plano Gerador de Beneficio
Livre or PGBL schemes replaced the traditional plans in 2002.
The two plans hold savings in investment funds, only allowing
withdrawals under penalty.  VGBL plans target taxpayers who file
simplified returns.  PGBL plans are for those who file itemized
returns.

Private pension providers no longer offer the traditional plans
that guaranteed a minimum pension for holders.  A VGBL or PGBL
holder gets 100% of the fund's returns, although there is no
guaranteed minimum.

                 About Bradesco Vida e Previdencia

Bradesco Vida e Previdencia is Brazil's largest private pension
provider with a 37.9% market share in terms of contributions.
The unit also offers life insurance and expects to increase 2006
revenues 25% to BRL10 billion.

                       About Banco Bradesco

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

                          *     *     *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
maintained the 'BB+' ratings on both of Banco Bradesco SA's
foreign and local currency counterparty credit rating, however
it changed the ratings outlook to positive from stable on both
ratings:

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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

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


DELPHI CORP: Wants Excl. Plan-Filing Period Extended to July 31
---------------------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the Honorable Robert
D. Drain of the United States Bankruptcy Court for the Southern
District of New York to further extend their:

   (a) exclusive period to file a plan of reorganization through
       July 31, 2007; and

   (b) exclusive period to solicit acceptances of that plan
       through Sept. 30, 2007.

After intensive negotiations with their statutory committees,
General Motors Corporation, and potential plan investors since
June 2006, the Debtors were successful in negotiating a
framework for a potential reorganization plan and securing a
commitment from an investor group to invest substantial sums in
the reorganized Debtors, John Wm. Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates.

The Framework Agreements represent a major milestone in the
Debtors' reorganization, illustrate the Debtors' continuing
commitment to a consensual resolution of the principal issues in
their restructuring, and signify demonstrable progress toward a
plan of reorganization, Mr. Butler asserts.

The Debtors, however, require more time to conduct further
negotiations contemplated by the Framework Agreements, as well
as to formulate and submit a disclosure statement and plan of
reorganization that conform to the requirements of the Framework
Agreements, Mr. Butler says.  The Debtors hope to submit a
consensual reorganization plan during the first quarter of 2007,
according to Mr. Butler.

Mr. Butler notes that the Debtors have continued discussions
with their six U.S. labor unions to achieve the goals of their
Transformation Plan.  The Debtors have also made significant
strides in the claims reconciliation process.  As of Dec. 8,
2006, the debtors have objected to approximately 8,300 claims,
totaling approximately $8,900,000,000.

In addition, Mr. Butler states, since the Debtors last sought an
extension of the Exclusive Periods, they have:

   -- undertaken and consummated the sale of substantially all
      of the assets of MobileAria, Inc.;

   -- completed the sale of their New Brunswick, New Jersey
      battery manufacturing facility to Johnson Controls, Inc.;

   -- entered into an agreement with Electronic Data Systems
      Corporation and EDS Information Services, LLC for the
      outsourcing of global desktops, service desk, and
      mainframe systems hosting; and an agreement with Hewlett
      Packard Company, which provides for the outsourcing of
      server systems hosting;

   -- settled certain claims and allegations asserted by the
      Securities and Exchange Commission;

   -- entered into attrition plans with the Debtors' unions
      under which approximately 83% of the eligible IUE-CWA
      workforce elected to participate; and

   -- sought approval to enter into a replacement financing
      facility, which would result in an estimated financing
      costs savings of approximately $8,000,000 per month.

Nevertheless, the Debtors' cases are large and the multi-
dimensional scope of actions that must be taken to address
Delphi's restructuring requirements are exceedingly complex, Mr.
Butler notes.

The Debtors still have significant tasks to complete before
proposing a plan of reorganization, Mr. Butler points out.  
Unresolved contingencies still exist.  Under the Plan Framework
Support Agreement, the Debtors must reach agreements with a
number of parties and constituencies, including reaching
agreements on new or amended CBAs with each of their U.S. labor
unions and agreements resolving the Debtors' many significant
GM-related issues.

Thus, under these circumstances, the Debtors' requested
extension of the Exclusive Periods is justified, Mr. Butler
emphasizes.

                            Responses

1. Creditors Committee

The Official Committee of Unsecured Creditors believes that a
six-month extension of the Exclusive Periods is inappropriate.

The Debtors already have received two six-month extensions of
the Exclusive Periods and still have not achieved a plan
framework that is acceptable to most of their major
stakeholders, Robert J. Rosenberg, Esq., at Latham & Watkins
LLP, in New York, points out.

The Debtors' proposal to enter into framework agreements with
Appaloosa Management L.P. and other third party plan investors
have been contested by, among others, the Creditors Committee,
the Equity Committee, some of the U.S. labor unions, the U.S.
Trustee, and Highland Capital Management, LP, Mr. Rosenberg
notes.  Other parties may file objections in the future.

The Creditors Committee, however, consents to a 60-day extension
of the Periods for these reasons:

   -- GM already has obligated itself to support the Appaloosa
      Framework Agreements until April 2, 2007; and

   -- The terms of the Agreements are still capable of being
      revised so as to be acceptable to the Creditors Committee.

2. Equity Committee

The Official Committee of Equity Security Holders shares many of
the reservations expressed by the Creditors Committee, Debra M.
Torres, Esq., at Fried, Frank, Harris, Shriver & Jacobson LLP,
in New York, tells the Court.  The Equity Committee, however,
does not object to the Debtors' request at this time.

"It is of critical importance to the Equity Committee that any
plan of reorganization be the result of a fair and open process
in which potential bidders or plan investors are able to compete
on a level playing field, and which ensures that the highest and
best offer is obtained by the Debtors to maximize value for all
constituencies," Ms. Torres relates.  "If exclusivity is
extended, the Debtors must proceed with an open and fair process
designed to maximize value that does not favor any party, and
does not involve any special provisions, side agreements, extra-
contractual understandings or other terms that would have the
effect of chilling the bidding and thus precluding the Debtors
from obtaining maximum value for all of their constituencies."

3. Highland Capital

Highland Capital objects to an extension of the Exclusive
Periods to the extent it is intended to give the Appaloosa Plan
Investors an advantage over and possibly scare off other
potential suitors for the Debtors by making it appear that the
Appaloosa Framework Agreements are the sole structure for a plan
of reorganization available to and being considered by the
Debtors.

Highland Capital has delivered a commitment letter to Delphi
Corporation's board of directors outlining its proposal and
commitment to invest up to $4,700,000,000 in new common stock of
reorganized Delphi in a transaction similar to that being
proposed by the Appaloosa Plan Investors.  Since submitting its
proposal to the Debtors, Highland has attempted to negotiate a
confidentiality agreement with the Debtors that protects the
legitimate needs of the Debtors, but enables Highland Capital to
take the steps necessary to effectuate the transaction set forth
in the Highland Commitment Letter, including working with the
various creditor and equity constituencies in the Debtors' cases
and working with potential investors, Judith Elkin, Esq., at
Haynes and Boone, LLP, in New York, relates.

The Debtors have indicated that they are willing to sign a
confidentiality agreement with Highland Capital only if Highland
is prevented from or severely restricted in its ability to speak
substantively with potential investors and other parties-in-
interest in these cases, Ms. Elkin informs the Court.  "The
Debtors are using the stick of a chilling confidentiality
agreement as a way to block dialogue with parties who may need
to be involved in the restructuring of the Debtors, other than
through the Appaloosa Framework Agreements."

Most major creditor and equity constituencies in the Debtors'
cases, including all statutory committees, have objected to the
Appaloosa Framework Agreements, Ms. Elkin notes.  If exclusivity
is extended solely for the purpose of allowing the Debtors to
attempt to effectuate a plan based on the Appaloosa Framework
Agreements, the Debtors will have wasted valuable time if the
Agreements deteriorate or are terminated, Ms. Elkin says.

Accordingly, Highland Capital asks the Court to deny the
Debtors' request.

In the alternative, Highland Capital asks the Court to require
the Debtors to:

   (a) cooperate with other potential plan sponsors so that they
       can enter into a reasonable confidentiality agreement in
       order to enable them to receive information, speak with
       potential investors and speak with the other
       stakeholders;

   (b) negotiate potential plan structures with parties-in-
       interest other than the Appaloosa Plan Investors; and

   (c) consider plan structures other than that contained in the
       Appaloosa Framework Agreements.

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

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


DELPHI CORP: Highland Proposes Alternative Framework Agreements
---------------------------------------------------------------
Highland Capital Management LP asks the United States Bankruptcy
Court for the Southern District of New York to deny Delphi Corp.
and its debtor-affiliates' request to enter into an Equity
Purchase & Commitment Agreement and a Plan Framework Support
Agreement or, in the alternative, reschedule the Motion's
hearing on or before Jan. 22, 2006, to allow Delphi's board of
directors adequate time to review the Highland Commitment.

Judith Elkin, Esq., at Haynes and Boone, LLP, in New York,
contends that the Appaloosa Framework Agreements are
fundamentally unfair to the common stockholders of Delphi
Corporation and are not in Delphi's best interests for these
reasons:

   -- The Appaloosa Plan Investors will receive a 1.75%
      Commitment Fee worth US$20,000,000 to purchase Preferred
      Stock that they are only offering to themselves;

   -- The Appaloosa Plan Investors' exclusive right to acquire
      Preferred Stock gives them disproportionate control of the
      board of directors and exclusive approval rights over
      future business decisions of the reorganized Company;

   -- Under the Appaloosa Framework Agreements, unsecured
      creditors will be overpaid by approximately US$232,200,000
      and junior creditors will be overpaid by approximately
      US$129,000,000 since common stock will be used to
      partially pay creditor claims at lower than market values;

   -- The Plan Investors require Delphi to pay a US$100,000,000
      Break-up Fee; and

   -- The Debtors filed their motion to enter into the Appaloosa
      Framework Agreements on December 18, 2006.

The Motion should not be heard on an expedited basis especially
when its review and consideration is set to occur during and
shortly after a holiday period when many financial and other
necessary parties are unavailable or have limited availability,
Ms. Elkin argues.

Consequently, Highland Capital Management, LP, informs the Court
that it delivered a commitment letter to Delphi's board of
directors on Dec. 21, 2006.  Under its Commitment Letter,
Highland proposes to invest up to US$4,700,000,000 in new Common
Stock of reorganized Delphi in a transaction similar to the
proposed Appaloosa Framework Agreements, but consistent with the
principles of fairness embodied in the Bankruptcy Code, Ms.
Elkin informs the Court.  The Highland Commitment Letter also
specifies the terms of and support for a plan of reorganization
that is based on Highland Capital's investment in the Delphi
Common Stock.

According to Ms. Elkin, the Highland Commitment will provide
these benefits:

   -- The ability of the present board of directors to submit a
      proposal to the Court that is consistent with its
      fiduciary duties to all of its stakeholders and should
      garner the support of the Official Committee of Equity
      Security Holders.

   -- Delphi's ability to obtain US$4,700,000,000 of capital
      without offering a US$1,200,000,000 preferred stock deal
      to the Appaloosa Plan Investors that significantly dilutes
      the existing stockholders, allows the Appaloosa Plan
      Investors to take control of the Company through its
      preferential acquisition of almost 30% of the Delphi's
      equity and grants special veto rights to the Appaloosa
      Plan Investors on significant Delphi transactions in the
      future.

   -- The ability to proceed with a rights offering that does
      not guarantee an allocation of 6,300,000 shares to the
      Appaloosa Plan Investors.

   -- The ability to endorse the management of the Company, as
      announced on December 18, 2006, while at the same time
      ensuring that the management will report to an independent
      board of directors that is not subject to the whims of and
      controlled by the Appaloosa Plan Investors.

   -- A transaction that accepts the negotiated deal between the
      Company and General Motors Corporation, which should be
      equally supported by GM and the statutory committees.

   -- A transaction that offers existing stockholders the
      ability to capture the economic value of the enterprise,
      rather than allowing the Appaloosa Plan Investors to take
      that value in violation of the spirit and letter of the
      Bankruptcy Code.

   -- A transaction that will be embraced by the market because
      it is reflective of, and enhances, the current value of
      the Company.

The market recognizes the inherent fairness of the Highland
Commitment because common shares are trading 30% higher after
the Highland Commitment was announced, Ms. Elkins says.

                          More Objections

1. U.S. Trustee

The United States Trustee opposes the Equity Purchase and
Commitment Agreement and the Plan Framework Support Agreement on
two grounds:

   (i) The EPCA calls for the payment of millions of dollars of
       fees and expenses, as allowed administrative claims under
       Section 503(b)(1) of the Bankruptcy Code, to non-retained
       professionals for the entities that will fund the
       Debtors' emergence from bankruptcy.  Those fees and
       expenses will be paid with no oversight by the statutory
       committees, the Fee Committee, the U.S. Trustee or the
       Bankruptcy Court, Alicia M. Leonhard, Esq., in New York,
       points out.

  (ii) The PSA appears to be a sub rosa plan of reorganization
       that circumvents the disclosure statement and plan
       confirmation approval process set forth in Section 1123,
       1125 and 1129 of the Bankruptcy Code.  The PSA also
       restricts the rights of creditors and parties-in-interest
       to meaningfully participate in plan negotiations.  "The
       [PSA] is no more than a term sheet for a plan that has
       yet to be filed.  It should only be considered in the
       context of continued plan negotiations," Ms. Leonhard
       contends.

As administrative claimants, the professionals of the Plan
Investors should file applications under Section 503, rather
than obtain blanket approval of retroactive and prospective fees
and expenses without any review by parties-in-interest or the
Court, Ms. Leonhard asserts.

With respect to all of the professionals except Appaloosa
Management L.P., without more information, the U.S. Trustee
cannot determine whether the fees and expenses are reasonable,
"actual and necessary," subject to Section 503(b)(4), or a
reasonable exercise of the Debtors' business judgment, Ms.
Leonhard emphasizes.  Moreover, Appaloosa must demonstrate that
it made a substantial contribution to the Debtors' cases in
representing an Ad Hoc committee of Equity Security Holders
under Section 503(b)(4), Ms. Leonhard adds.

Thus, the U.S. Trustee asks the Court to order the Plan
Investors' professionals to file applications under Section 503
for review and approval under the appropriate standard prior to
any payment of fees and expenses under the EPCA.

Ms. Leonhard notes that the PSA dictates many of the terms of
the plan.  It determines the maximum aggregate of allowed
unsecured claims.  It codifies a settlement of General Motors'
claim apparently without the agreement of the Official Committee
of Unsecured Creditors or the Official Committee of Equity
Security Holders.

Under the PSA, the parties have determined the value of the
shares of stock for plan distribution purposes.  The parties
have also decided how much is needed to resolve the pension
obligations in an agreement that does not include the Pension
Benefit Guaranty Corporation.  However, there has been no
disclosure as to the how the terms were derived or opportunity
for those affected to vote, Ms. Leonhard cites.

Accordingly, the U.S. Trustee asks the Court to disapprove the
PSA as a sub rosa plan.

2. IUOE Locals

The terms of the EPCA and the PSA and the rights afforded the
Plan Investors will have a substantial impact on employee claims
and the Section 1113 and 1114 proceedings, Barbara S. Mehlsack,
Esq., at Gorlick, Kravitz & Listhaus, P.C., in New York, avers.

Accordingly, the International Union of Operating Engineers
Local Union Nos. 18S, 101S and 832S seek to protect the claims
of their members and their rights under their collective
bargaining agreements.

The IUOE Locals represent 21 employees in three facilities of
Delphi, located in Rochester, New York; Olathe, Kansas; and
Columbus, Ohio.

The IUOE Locals complain that the payment of US$76,000,000 in
Commitment Fees and US$13,000,000 in Transaction Expenses under
the EPCA is justified solely on the bare bones recital that the
Investors would not otherwise have entered into the terms of the
EPCA.

Under the EPCA, the Plan Investors' obligation to consummate the
contemplated transactions are conditioned on the Debtors
reaching consensual agreements with its major labor union by
January 31, 2007, including terms and conditions affecting plant
closings, asset dispositions and resolution of union claims.

"In view of [Delphi's] insistence on 'pattern bargaining' with
the IUOE Locals, seeking to bind them to the terms of the major
union contracts, for all practical purposes the fate of the IUOE
Locals' agreements are in the hands of the Plan Investors," Ms.
Mehlsack asserts.

The IUOE Locals have sought to negotiate with Delphi a spin off
of assets and liabilities attributable to IUOE represented plan
participants to a well-funded multi-employer plan but have been
stone walled by the Debtors, according to Ms. Mehlsack.  The
PSA, however, provides that Delphi will do a spin off of plan
assets and liabilities without regard to Delphi's collective
bargaining obligations regarding the Pension Plan for Hourly
Employees, Ms. Mehlsack notes.

The PSA also provides that all employee-related obligations are
flow through claims that will be unimpaired but excludes
collective bargaining-related employee claims from flow though
status, Ms. Mehlsack argues.

Thus, the IUOE Locals ask the Court to deny the Debtors' Motion
as currently proposed.

3. IBEW and IAMAW

The International Brotherhood of Electrical Works Local 663 and
International Association of Machinists and Aerospace Workers
District 10 do not oppose the introduction of new equity through
an appropriate equity purchase agreement.  IBEW and IAM,
however, complain that the EPCA and the PSA, as drafted,
inappropriately interfere with Section 1113 and 1114
negotiations.

"The Agreements, in their present form, inappropriately
predetermine the plan of reorganization to the detriment of
employees represented by the IBEW and IAM in comparison to
unrepresented employees, while providing exorbitant fees to Plan
Investors, and specified recoveries to, without specified
commitment by, General Motors," Marianne Goldstein Robbins,
Esq., at Previant, Goldberg, Uelmen, Gratz, Miller & Brueggeman,
S.C., in Milwaukee, Wisconsin, argues.

IBEW and IAM complain that the US$76,000,000 in Commitment Fees
and the US$100,000,000 Alternative Transaction Fee under the
ECPA are exorbitant and utilize resources, which could otherwise
be funding the Debtors' contractual obligations to their
employees.

The Alternate Transaction Fee will also prevent appropriate
consideration of alternate sources of equity, Ms. Robbins
asserts.  From the filing of objecting parties, it appears that
there are alternative sources of equity, which should be
considered before exorbitant fees are incurred, Ms. Robbins
notes.

Moreover, since Debtors have insisted that the IBEW and IAM
agree to provisions negotiated with the UAW, the authority for
negotiating agreements between the Debtors and the IBEW and IAM
is transferred to the UAW and the Investors, in violation of the
provisions of Sections 1113 and 1114 of the Bankruptcy Code.

The PSA defines what general unsecured creditors will receive --
claims will be limited to US$1,700,000,000.  However, the amount
of general unsecured claims has not been determined and these
may include claims of union represented employees and retirees,
Ms. Robbins points out.

           Appaloosa, et al., Join In Debtors' Request

Appaloosa Management L.P., A-D Acquisition Holdings, LLC,
Harbinger Capital Partners, LLC, Harbinger Del-Auto Investments
Company, Ltd., and the rest of the Appaloosa Plan Investors
support the Debtors' request and assert that the Appaloosa
Framework Agreements are in the best interests of the Debtors
and their estates.

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

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


DELPHI CORP: Judge Drain Approves Claims Estimation Procedures
--------------------------------------------------------------
Delphi Corp. and its debtor-affiliates obtained permission from
the Honorable Robert D. Drain of the United States Bankruptcy
Court for the Southern District of New York to:

   (a) schedule special hearings to consider contested claims
       matters;

   (b) establish certain procedures governing the filing and
       contents of responses of claimants to omnibus claims
       objections;

   (c) establish certain procedures for the service of omnibus
       claims objections;

   (d) establish certain procedures governing the adjudication
       of contested claims matters; and

   (e) limit the service of orders by Kurtzman Carson
       Consultants, LLC, the Debtors' claims and noticing agent,
       entered with respect to omnibus claims objections to
       avoid unnecessary costs to the Debtors' estates.

In particular, the Court rules that any response to a claims
objection or an omnibus claims objection must:

   -- be in writing;

   -- conform to the Federal Rules of Bankruptcy Procedure, the
      Local Bankruptcy Rules for the Southern District of New
      York, and the Oct. 26, 2006, Amended Eighth Supplemental
      Case Management Order;

   -- be filed with the Court in accordance with General
      Order M-242;

   -- be submitted in hard copy form directly to the chambers of
      Judge Drain; and

   -- be served upon the Debtors and their counsel.

Every Response must contain, at a minimum:

   -- the title of the claims objection to which the Response is
      directed;

   -- the name of the claimant and a brief description of the
      basis for the claim amount;

   -- a concise statement setting forth the reasons why the
      claim should not be disallowed, expunged, reduced, or
      reclassified;

   -- unless already set forth in the proof of claim previously
      filed with the Court, documentation sufficient to
      establish a prima facie right to payment

   -- to the extent that the claim is contingent or fully or
      partially unliquidated, the amount that the claimant
      believes would be the allowable amount of its claim upon
      liquidation of the claim or occurrence of the contingency,
      as appropriate; and

   -- the addresses to which the Debtors must return any reply
      to the Response, if different from the addresses presented
      in the claim.

All contested claims for which a timely Response is filed will
be automatically adjourned to a future hearing, the date of
which will be determined by the Debtors, in their sole
discretion, by serving the Claimant with a notice, Judge Drain
states.

If the amount in dispute for a Contested Claim exceeds
US$1,000,000 or a Contested Claim asserts unliquidated claims;
the Claimant or the Claimant's principal place of business, as
applicable, is located within 90 miles of Troy, Michigan; and
that Contested Claim is scheduled by the Debtors for a Claims
Objection Hearing, the Debtors and the Claimant will hold an in-
person meet and confer at a neutral location in Troy, Michigan,
or another agreeable location.

If a Contested Claim is scheduled by the Debtors for a Claims
Objection Hearing, and if the amount in dispute for the
Contested Claim is less than or equal to US$1,000,000; the
Contested Claim asserts unliquidated claims and the Claimant
irrevocably agrees in writing that the allowed Claim Amount will
be limited to a maximum of US$1,000,000; or the Claimant or the
Claimant's principal place of business, as applicable, is
located more than 90 miles from Troy, Michigan, the Debtors and
the Claimant will hold a telephonic meet and confer within 10
business days of service of the Notice of Claims Objection
Hearing.

The Court rules that the Claims Estimation Procedures will not
apply to these claimants:

   * Cadence Innovation LLC,
   * Pension Benefit Guaranty Corporation,
   * Robert Bosch GmbH,
   * Technology Properties, Ltd.,
   * The State of California Environmental Protection Agency,
   * The State of Michigan Environmental Protection Agency,
   * The State of Ohio Environmental Protection Agency, and
   * The United States Environmental Protection Agency.

The Claims Estimation Procedures will also not apply to nine
additional claimants with respect to these claims:

   Claimant                                   Claim No.
   --------                                   ---------
   Banc of America Securities LLC               10758
   Barclays Capital Inc.                        11658
   Bear, Stearns & Co. Inc.                     10732
   Citigroup Global Markets, Inc.               10731
   Credit Suisse Securities (USA) LLC           10763
   Merrill Lynch, Peirce, Fenner & Smith Inc.   10761
   Morgan Stanley & Co. Inc.                    10762
   UBS Securities LLC                           10759
   Wachovia Capital Markets, LLC                10760

The Excluded Parties or the Debtors are not precluded from
seeking to establish appropriate alternative claims resolution
procedures, Judge Drain clarifies.

The Court permits Gary Whitney and NuTech Plastics Engineering,
Inc., to submit a request to lift the stay subject to the
Debtors' right to object to the request.

A number of the Excluded Parties objected to the Debtors'
request.  Other Objecting Creditors include:

   * ATEL Leasing Corp.,
   * Electronic Data Systems Corporation,
   * H.E. Services Company,
   * Hitachi Chemical (Singapore) Pte. Ltd.,
   * InPlay Technologies, Inc.,
   * Kilroy Realty, L.P.,
   * Kyocera Industrial Ceramics Corporation,
   * L&W Engineering Co.,
   * Motion Industries, Inc.,
   * Omega Tool Corp.,
   * ORIX Warren, LLC, and
   * U.S. Timken Co.

The Objections have been resolved, overruled, or withdrawn.

The Claims Estimation Procedures will hasten claims
reconciliation and administration, John Wm. Butler, Jr., Esq.,
at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago,
Illinois, avers.

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

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


GAP INC: Goldman Sachs Hiring Sparks Rumors on Strategic Options
----------------------------------------------------------------
The Gap Inc. hired Goldman Sachs Group Inc. last month, CNBC's
David Faber states.

According to reports, analysts speculated that Goldman Sachs's
involvement with the clothing company could mean that Gap is
either up for sale, will spin off its brands, or will undergo a
leveraged buyout.

The announcement also renewed speculation that Gap chief
executive officer Paul Pressler and other senior executives'
tenure are at an end, Reuters said.

The company's shares surged yesterday to 11% before closing up
at over 7% at US$20.26 per share.

                         About Gap Inc.

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

                          *     *     *

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

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

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

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


NIKKO CORDIAL: Chief Denies Capitalization Rumors
-------------------------------------------------
Nikko Cordial Corp.'s president, Shoji Kuwashima, has denied
rumors that the company is close to asking major shareholders
for fresh capital to stabilize its management, Kyodo News
reports.

"Although it is true that we are considering how to push
business operations with a broad range of policy options in
sight, I do not see any relationship between this matter and
such a recapitalization issue," Mr. Kuwashima tells Kyodo News.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 27, 2006, Mr. Kuwashima was tapped by Nikko Cordial to be
its new chief after then President Junichi Arimura and Chairman
Masashi Kaneko resigned from their posts to take responsibility
for the accounting scandal.

Earlier TCR-AP reports related that the Securities and Exchange
Surveillance Commission began investigating Nikko Cordial for
allegedly falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.

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

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

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

According to Mr. Kuwashima, Nikko Cordial is now trying to
enhance financial performance in each of its business segments.
The deliberations, however, "do not mean that we have a
premeditated conclusion that we will receive new capital" from
other companies, he said.

The Japan Times notes that while Mr. Kuwashima did not confirm
rumors that Nikko Cordial may approach Mizuho Financial Group
Inc. and other firms for fresh capital, he said, "The investment
talk began in the aftermath of the accounting problem."

                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: Posts US$274-Mil. Net Loss in November 2006
---------------------------------------------------------------

                 Northwest Airlines Corporation
        Unaudited Condensed Consolidated Balance Sheet
                      As of November 30, 2006

ASSETS

Current assets:
   Cash and cash equivalents                   US$1,693,000,000
   Unrestricted short-term investments              589,000,000
   Restricted cash, cash equivalents &
      short-term investments                        401,000,000
   Accounts receivable, net                         634,000,000
   Flight equipment spare parts, net                109,000,000
   Prepaid expenses & other                         348,000,000
                                                ---------------
Total current assets                              3,774,000,000

Property and equipment:
   Flight equipment, net                          7,432,000,000
   Other property & equipment, net                  577,000,000
                                                ---------------
Total property & equipment                        8,009,000,000

Flight Equipment under capital leases, net           21,000,000

Other assets:
   International routes                             634,000,000
   Investments in affiliated companies               39,000,000
   Other                                            893,000,000
                                                ---------------
Total other assets                                1,566,000,000
                                                ---------------
Total assets                                  US$13,370,000,000

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current liabilities:
   Air traffic liability                       US$1,722,000,000
   Accounts payable & other liabilities           1,398,000,000
   Current maturities of long-term debt
      & capital lease obligations                   172,000,000
                                                ---------------
Total current liabilities                         3,292,000,000

Long-term debt                                    3,427,000,000

Deferred Credits & other liabilities:
   Long-term pension & postretirement
      Health care benefits                          142,000,000
   Other                                            188,000,000
                                                ---------------
Total deferred credits & other liabilities          330,000,000

Liabilities Subject to Compromise                14,273,000,000

Preferred redeemable stock subject to Compromise    278,000,000

Common Stockholders' Equity (Deficit)
   Common stock                                       1,000,000
   Additional paid-in capital                     1,504,000,000
   Accumulated deficit                           (7,353,000,000)
   Accumulated other comprehensive income (loss) (1,369,000,000)
   Treasury stock                                (1,013,000,000)
                                                ---------------
Total common stockholders' equity (deficit)      (8,230,000,000)
                                                ---------------
Total Liabilities &
   Stockholders' Equity (deficit)             US$13,370,000,000

                 Northwest Airlines Corporation
   Unaudited Condensed Consolidated Statement of Operations
                  For Month Ended November 30, 2006

Operating Revenues
   Passenger                                     US$712,000,000
   Regional carrier revenues                        101,000,000
   Cargo                                             86,000,000
   Other                                             82,000,000
                                                ---------------
   Total Operating Revenues                         981,000,000

Operating Expenses
   Aircraft fuel and taxes                          246,000,000
   Salaries, wages, and benefits                    200,000,000
   Aircraft maintenance materials and repair         83,000,000
   Selling and marketing                             56,000,000
   Other rentals and landing fees                    45,000,000
   Depreciation and amortization                     42,000,000
   Aircraft rentals                                  18,000,000
   Regional carrier expenses                        104,000,000
   Other                                            113,000,000
   Other unusual items                               22,000,000
                                                ---------------
   Total Operating Expenses                         929,000,000

Operating Income (Loss)                              52,000,000

Other Income (Expense)
   Interest expense, net                            (52,000,000)
   Investment income                                 13,000,000
   Reorganization items, net                       (290,000,000)
   Other, net                                         3,000,000
                                                ---------------
   Total other income (expense)                    (326,000,000)
                                                ---------------
Income (Loss) Before Income Taxes                  (274,000,000)

   Income tax expense (benefit)                               -
                                                ---------------
Net Income (Loss)                               (US$274,000,000)

                 Northwest Airlines Corporation
   Unaudited Condensed Consolidated Statements of Cash Flows
                 For Month Ended November 30, 2006

Cash Flows from Operating Activities:
   Net income (loss)                            (US$274,000,000)
   Adjustments to reconcile net loss to net
      cash provided by (used in)
      operating activities:
      Depreciation and amortization                  42,000,000
      Pension and other postretirement benefit
         contributions less than expense             13,000,000
      Changes in certain assets & liabilities      (118,000,000)
      Long-term vendor deposits/holdbacks             7,000,000
      Reorganization items                          290,000,000
      Other, net                                     (8,000,000)
                                                ---------------
Net cash provided by operating activities           (48,000,000)

Cash Flows from Reorganization Activities:
   Net cash provided by (used in)
      reorganization activities                     (12,000,000)

Cash Flows from Investing Activities:
   Capital expenditures                             (88,000,000)
   Proceeds from sales of short term investment       5,000,000
   Decrease (increase) in restricted cash
      cash equivalents & short-term investments     262,000,000
   Other, net                                         1,000,000
                                                ---------------
Net cash provided by (used in) investing
   activities                                       180,000,000

Cash Flows from Financing Activities:
   Proceeds from long-term debt                     203,000,000
   Payments of long-term debt and capital
      lease obligations                            (244,000,000)
   Other, net                                                 -
                                                ---------------
Net cash provided by (used in)
   financing activities                             (41,000,000)
                                                ---------------
Increase (Decrease) in Cash and
   Cash Equivalents                                  79,000,000

Cash & cash equivalents at beginning of period    1,614,000,000
                                                ---------------
Cash & cash equivalents at end of period       US$1,693,000,000


                     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.


PAYLESS SHOESOURCE: Ties Up With Disney on Kids' Footwear Line
--------------------------------------------------------------
Disney and Payless ShoeSource have strengthened their
relationship with plans to develop their first 'direct-to-
retail' licensed footwear collection.  The multi-year deal will
bring together the Payless and Disney design teams to create a
special line of fun, high-quality footwear styles featuring
Disney and Disney*Pixar characters.  Payless will source, market
and sell the line through its nearly 4,600-store chain and on
Payless.com.

Payless has sold Disney-themed footwear and accessories for
several years; however, the two companies will now work more
closely on shoe design, creative direction and retail marketing.
"Payless' mission is to democratize fashion and design in
footwear and accessories for the family and this new Disney
collection will platform us to achieve our mission," said Matt
Rubel, CEO of Payless ShoeSource.  "Payless is the number one
footwear retailer for kids' shoes; Disney is a premier kids'
brand company.  Together, we'll create a fun, exciting and
creative line that will inspire kids, while allowing parents to
pay less."

Payless and Disney will innovate in the kids' footwear arena
with eye-catching designs, creative art styles and intriguing
shoe silhouettes.  Character styles will include: Disney
Princess -- Disney's US$3.4 billion girl's lifestyle brand;
Power Rangers -- Disney's #1 boy's brand; Winnie the Pooh; and
an assortment of Disney*Pixar characters from The Incredibles
and Finding Nemo.  The first products are currently scheduled to
be in stores in Spring 2007 with an expanded line in time for
next year's back-to-school season.

"Payless is ideal for our first direct-to-retail footwear
collaboration because the company is well-aligned with Disney's
goal to create quality, on-trend products for kids and
families," said Andy Mooney, chairman of Disney Consumer
Products.  "Being closely involved with the shoe design process
is a significant step for us, and we plan to have a truly
integrated relationship with Payless, the nation's leading
footwear retailer, from creative to point of sale."

                 About Disney Consumer Products

Disney Consumer Products is the business segment of The Walt
Disney Company that extends the Disney brand to merchandise
ranging from apparel, toys, home decor and books to interactive
games, food and beverages, stationery, electronics and animation
art.  This is accomplished through the work of DCP's various
lines of business: Disney Toys, Disney Softlines, Disney Home,
Disney Food, Health & Beauty, Disney Stationery, Disney
Publishing, Buena Vista Games, Baby Einstein, the Muppets
Holding Company and Disney Shopping, Inc.'s catalog and
http://disneyshopping.com/ The Disney Store, which debuted in  
1987, also falls under DCP, through stores currently owned and
operated by unaffiliated third parties under licensing
agreements in North America and Japan, and wholly owned stores
in Europe.  For more information about DCP, please visit its Web
site at http://www.disneyconsumerproducts.com/

                    About Payless ShoeSource

Headquartered in Topeka, Kansas, Payless ShoeSource, Inc. --
http://www.payless.com/-- is a family footwear specialty  
retailer with 4,605 retail stores, as of fiscal yearend
Jan. 28, 2006 (fiscal 2005), including 22 stores not open for
operations.  The company's Payless ShoeSource retail stores in
the United States, Canada, the Caribbean, Central America, South
America and Japan sold 182 million pairs of footwear, in fiscal
2005.  The company operates its business in two segments --
Payless Domestic and Payless International.  The Payless
Domesticsegment includes retail operations in the United States,
Guam and Saipan.

In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for Payless
Shoesource, Inc. and upgraded its B2 rating on the company's
US$200 million 8.25% senior subordinated notes to B1.

Moody's also assigned an LGD4 rating to notes, suggesting
noteholders will experience a 64% loss in the event of a
default.


SAMSONITE CORP: Earns US$8.9 Million in Quarter Ended October 31
----------------------------------------------------------------
Samsonite Corp. reported US$8.9 million of net income on
US$285.9 million of net sales for the quarter ended Oct. 31,
2006, compared with a US$3 million net loss on US$248.7 million
of net sales for the same period in 2005.
   
Sales in all geographic areas increased.  Sales from Asian
operations increased 43.9%, followed by European operations,
Latin America, and North America, with increases of 13.5%,
11.5%, and 7.1%, respectively.  In absolute terms, the biggest
contributors to the increase in sales were Asian operations
followed by European operations, with increases of
US$15.1 million and 14.5 million, respectively.  The increase in
sales in Asian operations is primarily driven by increased
travel and geographic expansion in the region, particularly in
China and India.  

Licensing revenues decreased to US$3.2 million in the third
quarter of fiscal 2007 from US$3.4 million in the third quarter
of fiscal 2006, a decrease of US$200,000 primarily due to the
termination of one of the company's license agreements.

Consolidated gross margin increased by 2.2 percentage points, to
50.7% in the third quarter of fiscal 2007 from 48.5% in the
third quarter of fiscal 2006.

Operating income increased to 25.6 million in the quarter ended
Oct. 31, 2006, compared with US$6.9 million in the prior
quarter.

Income tax expense increased to US$7.2 million in the third
quarter of fiscal 2007 from a benefit of US$400.000 in the third
quarter of fiscal 2006.  

At Oct. 31, 2006, the company's balance sheet showed
US$653 million in total assets, US$668.3 million in total
liabilities, and US$20.1 million in minority interests in
consolidated subsidiaries, resulting in a US$35.4 million total
stockholders' deficit.

Full-text copies of the company's consolidated financial
statements for the quarter ended Oct. 31, 2006, are available
for free at http://researcharchives.com/t/s?181f

At Oct. 31, 2006, the company had cash and cash equivalents of
US$71.5 million and working capital of US$182.9 million.  

Cash availability under the company's senior credit facility was
US$35 million in the U.S., and EUR22 million for its European
subsidiary at Oct. 31, 2006.  At Oct. 31, 2006, the company had
US$4.6 million of letters of credit outstanding under the U.S.
portion of the facility, which reduced the net availability on
the U.S. line of credit to US$30.4 million.  At Oct. 31, 2006,
no amounts were outstanding under the European portion of the
facility.

                          About Samsonite

Samsonite Corporation -- http://www.samsonite.com--  
manufactures, markets and distributes luggage and travel-related
products.  The company's owned and licensed brands, including
Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,
Lacoste and Timberland, are sold globally through external
retailers and 284 company-owned stores.  Executive offices are
located in London.  The company has global locations, including
in Japan, Australia, Indonesia, India, and the United States.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 15, 2006, Standard & Poor's Ratings Services assigned its
loan and recovery ratings to Samsonite Corp.'s US$530 million
senior secured credit facility.  The facility consists of an
US$80 million six-year revolving credit and a US$450 million
seven-year term loan B.  The loan is rated 'BB-' with a recovery
rating of '3', indicating the expectation for meaningful
recovery of principal in the event of a payment default.

The TCR-AP then reported on Dec. 18, 2006, that Moody's
Investors Service confirmed the B1 corporate family
rating for Samsonite Corporation.

Moody's also assigned Ba3 ratings to the proposed US$80 million
senior secured revolving credit facility and US$450 million term
loan B.  Proceeds from the new facilities, along with a portion
out outstanding cash balances, will be used to fund a special
dividend and debt repurchase, and pay associated fees and
premiums.


SOJITZ CORP: Mulls Team-Up for Russian Coal Field Project
---------------------------------------------------------
Sojitz Corp. is considering teaming up with a Russian firm for
the development of a coal field in Siberia, Bloomberg News
reports.

According to Bloomberg's Yoshifumi Takemoto, the Siberian
project will require US$2.8 billion of investment.

Mr. Takemoto further notes that Sumitomo Corp. is also
interested in the project.

Russian companies will take the lead in developing the Elga
deposit in Russia's Republic of Sakha (Yakutia), Bloomberg cites
Sumitomo Managing Executive Officer Michihisa Shinagawa as
saying.

The report says that the Elga field, located about 800
kilometers (500 miles) south of Yakutsk, may produce 30 million
metric tons of coal per year.  It has reserves of 2.7 billion
tons of coal.  Mr. Takemoto states that the field could help
meet growing demand for coal from Japanese steelmakers.  

Moreover, the Elga field could become a prime source of coking
coal for Asia, Bloomberg says.

"The coking coal is of high quality comparable to the premium
hard coking coal from Australia," said Mitsuichi Koizumi, a
researcher at the Institute of Energy Economics, Japan.  "We
would like to tie up with a Russian partner which will lead the
project."

A tender will take place in the first quarter of this year for
the sale of the Republic of Sakha's 39.4% stake in Elgaugol,
which holds a license to mine the Elga field, Bloomberg relates,
citing Russia's Interfax news agency.  The auction, originally
due to be announced in mid-October, was delayed by a legal
dispute between Russian central and regional authorities over
property rights, Interfax added.

The report says that a stake of 75% percent minus one share in
Yakutugol will also be offered at the tender.  Yakutugol is
Russia's leading exporter of coking coal concentrate to the Asia
Pacific region, primarily Japan, South Korea and Taiwan.  
Russian mining and steel group OAO Mechel owns 25% plus one
share in Yakutugol.

                       About Sojitz Corp.

The Sojitz Group was essentially formed through the business
integration between Nichimen Corporation and Nissho Iwai
Corporation, two companies with over a century of history. This
business integration took shape in December 2002 and was
followed on April 1, 2003, by the incorporation of a joint
holding company.  As a public listed company, this holding
company was incorporated to pursue business integration,
management supervision and comprehensive disclosure. Heralding a
new era, the principal operating arms of the Group, Nichimen
Corporation and Nissho Iwai Corporation were merged to form a
new single entity, Sojitz Corporation on April 1, 2004.  On
October 1, 2005, the final phase of business integration was
completed through the merger of the holding company and Sojitz
Corporation.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 8, 2007, Standard & Poor's Ratings Services said its 'BB'
long-term corporate credit rating on Sojitz Corp. remains on
CreditWatch with positive implications.  The ratings were placed
on CreditWatch on April 28, 2006, on expectations that Sojitz's
capital quality would improve rapidly following the company's
announcement of a capital restructuring plan to issue
JPY300 billion in convertible bonds and buy back preferred stock
worth JPY560.4 billion.

The long-term corporate credit rating on Sojitz was raised one
notch to 'BB' on Sept. 29, 2006, reflecting the company's
improved capital quality from the conversion of JPY100 billion
of its CB into common shares as of Sept. 21, 2006, and better
balance between asset risk volume against capitalization and
profitability.


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

DURA AUTOMOTIVE: Section 341(a) Meeting Adjourned Sine Die
----------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
has adjourned sine die the meeting of creditors of Dura
Automotive Systems Inc. and its debtor-affiliates required under
Section 341(a).  The U.S. Trustee had convened the Meeting of
Creditors on Dec. 7, 2006.

The Meeting of Creditors was continued pending the Debtors'
filing of their schedules of assets and liabilities, schedules
of current income and expenditures, and statements of financial
affairs.  The Debtors are expected to file their Schedules in
January 2007.

The Meeting of Creditors offers the opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtors under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

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

                          *     *     *

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

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

                          *     *     *

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Inks Pact with American Electric and NITCo
-----------------------------------------------------------
DURA Automotive Systems Inc. and its debtor affiliates entered
into agreements with American Electric Power, et al., and
Northern Indiana Trading Co. to resolve the utility companies'
objections to the Debtors' adequate assurance procedures.

As reported in the Troubled Company Reporter on Jan. 5, 2007,
Quest Energy, LLC, Northern Indiana Trading Co., American
Electric, et al., Lawrenceburg Utility and Upper Cumberland
Electric filed their objections to the adequate assurance
procedures of DURA Automotive Systems Inc. and its debtor
affiliates.

                 Stipulations with Utilities

(a) AEP, et al.

As previously reported, American Electric Power, Duke Energy
Indiana, Inc., Exelon Energy Company, The Detroit Edison
Company, and the Michigan Consolidated Gas Company objected to
the Debtors' Utility Motion.  After negotiations, the parties
have reached an agreement.

Pursuant to a Court approved stipulation, the Debtors will pay
AEP and Exelon a one-month payment in advance each month under
these terms and conditions:

   a. Commencing in December 2006, the Debtors will tender these
      payments to AEP and Exelon on or before the first business
      day of each month:

          i. AEP -- US$175,000

         ii. Exelon -- US$63,000, consisting US$37,000 for
             electric and US$26,000 for gas.

   b. If payment is not timely received by AEP and Exelon, they
      can terminate service to the Debtors after providing the
      Debtors and their counsel with email and facsimile notice
      of the default and 5 days to cure the default.

The Debtors, and Duke and Detroit Edison/MCG agree that:

   (1) The Debtors will pay Duke a one-month deposit for
       US$10,000 as adequate assurance of payment.  As Duke has
       received a US$6,525 deposit payment from the Debtors,
       Duke can apply the US$6,525 toward the US$10,000 deposit
       and the Debtors have to pay the remaining US$3,475 on or
       before Nov. 22, 2006;

   (2) The Debtors will pay Detroit Edison/MCG a one-month
       deposit in the amount of US$31,000.  As Detroit
       Edison/MC0 has received a US$11,250 deposit payment from
       the Debtors, Detroit Edison/MCG can apply the US$11,250
       to the US$31,000 deposit.  The Debtors have to pay the
       remaining US$19,750 on or before November 22, 2006; and

   (3) The Debtors will pay all future bills from Duke and
       Detroit Edison/MCG by the applicable due date.

The Utilities agree to promptly provide the Debtors with the
amounts of their prepetition claims once they have those
figures.

(b) NITCo

On Nov. 19, 1991, Northern Indiana Trading Company entered into
a contract regarding the purchase of natural gas on behalf of
Dura Automotive Systems, Inc., and Universal Tool & Stamping for
their Sutler, Indiana, facility.

Pursuant to the Contract, NITCo is obligated to attempt to
purchase, at Universal's request and as Universal's agent,
natural gas from natural gas producers on Universal's behalf.  
Following the purchase, NITCo arranges for the transportation of
purchased natural gas to Universal's plant in Butler, Indiana,
Each month, NITCo arranges, on Universal's behalf, for the sale
of any excess gas purchased by Universal.

As compensation for these services, Universal pays NITCo an
"agency fee" each month.

To provide adequate assurance of payment to NITCo for the
Debtors' continued use of its services, the parties had agreed
to these terms:

   1. On or before 4:00 p.m. (Eastern Time) on Dec. 1, 2006, the
      Debtors will pay NITCo, via wire transfer, these amounts:

         i. a security deposit of US$11,734 for postpetition
            services; and

        ii. charges for postpetition utility services that have
            accrued but have not been paid as of December 1,
            2006, in an amount to be identified in writing by
            NITCo by the close of business on November 30, 2006,
            and agreed upon by the Debtors;

   2. Commencing on Dec. 10, 2006, on or before 4:00 p.m.
      (Eastern Time) and continuing monthly on the 10th day of
      each calendar month, NITCo will send the Debtors, via
      facsimile, an invoice for the Debtors' estimated usage for
      the following month based upon Debtors' historical usage
      for that month;

   3. Commencing on Dec. 20, 2006, on or before 4:00 p.m.
      (Eastern Time) and continuing monthly on the 20th day of
      each calendar month, the Debtors will pay NITCo the
      Prepayment Amount, via wire transfer, as payment in
      advance for service to be rendered during the following
      month; and

   4. If the Debtors fail to make any of the agreed payments
      when due, NITCo may provide notice of default to the
      Debtors.  If the Debtors fail to cure the specified
      default within five days after the effective date of the
      notice, NITCo will be authorized to suspend or terminate
      all services as of the close of business on the last day
      of the month in which the default occurs.

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

                          *     *     *

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

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

                          *     *     *

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


KOREA EXCHANGE BANK: Five Foreign Firms Interested to Buy KEB
-------------------------------------------------------------
Several financial institutions showed interest in buying Korea
Exchange Bank from Lone Star Funds, press reports say.

Citing an unnamed official at a Hong Kong financial institution
as source, Yonhap News says that five foreign banks have already
expressed interest in acquiring KEB.

According to the Chosun Ilbo, the potential buyers reportedly
include:

   -- Bank of America,
   -- Industrial and Commercial Bank of China,
   -- Bank of China, and
   -- Development Bank of Singapore.

In 2003, United States-based investment fund Lone Star acquired
a controlling stake in KEB.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 8, 2006, South Korea's Supreme Prosecutors Office declared
that the 2003 KEB sale to the investment fund is illegal.  A
probe to the sale led the prosecutors to conclude that the sale
was conducted "abnormally without following regulations and due
procedure, and the sale price did not reach the adequate level."

The TCR-AP reported on Dec. 18 that Kookmin Bank is still
interested in acquiring KEB after the failed deal.  Lone Star
terminated its agreement to sell its stake in KEB to Kookmin
because of the surrounding investigations.

"People believe that the KEB sale has been suspended, but five
banks are aggressively showing interest in buying KEB," Yonhap
News quoted its Hong Kong source as saying.

Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--  
was established in January 1967 by the Government originally as
a specialist foreign exchange bank.  It retains its strength in
trade finance and foreign exchange.  In terms of assets, it
ranks sixth among Korea's nationwide commercial banks with 7% of
system assets.  It operates a branch network of 317 domestic and
28 overseas offices.  During the economic crisis, significant
exposures to troubled corporate borrowers led to a deterioration
in the bank's financial health.  However, since then, its
operating performance stabilized, and the bank has reported
consecutive quarterly profits since the end of 2003.

Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.

Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.


SK CORP: Increases Number of Affiliates to 176
----------------------------------------------
SK Corp. has now under its wings Rizhao SK Asphalt Co., Ltd.,
increasing the oil refiner's affiliates to 176.

Rizhao SK produces, sells and stores modified asphalt.

The addition of Rizhao SK Asphalt to SK Corp.'s number of
affiliated companies on Dec. 26, 2006, resulted from SK China
Holdings' 51% investment in the asphalt manufacturer.  SK China
is also an affiliate of SK Corp.

As of Dec. 26, 2006, Rizhao SK has assets totaling
KRW3,912,810,000 and shareholder's equity and paid-in capital at
the same amount.  Chang-Kuk Kum is Rizhao's chief executive
officer.

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.


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

AMSTEEL CORP: Appeals Bursa's Rejection of Extension Request
------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
May 19, 2006, Amsteel Corporation Berhad was classified under
Bursa Malaysia Securities Berhad's Amended Practice Note 17
category.   The Company was identified as an affected listed
issuer because:

   -- the auditors have expressed a modified opinion with
      emphasis on the Company's going concern in the Company's
      latest audited financial statement for the financial year
      ended June 30, 2005; and

   -- the Company's consolidated shareholders' equity as of
      June 30, 2005, represented 17.3% of the issued and paid-up
      capital of the Company.

Pursuant to the PN17 classification, the Company is required to
submit a regularization plan to the relevant authorities for
approval by January 7, 2007.

Amsteel, on Dec. 26, 2006, sought to extend the deadline within
which it may file this regularization plan to July 31, 2007.

However, the Bursa Malaysia Securities Berhad rejected the
company's extension request.

Pursuant to Paragraph 8.14C of the Listing Requirements of Bursa
Securities, a suspension was supposed to be imposed on the
trading of the listed securities of the company with effect from
9:00 a.m. on Jan. 12, 2007, and delisting procedures were
supposed to be commenced against the Company.

Yet, Amsteel submitted an appeal to the Bursa Malaysia relating
to the bourse's rejection of the extension request.

Accordingly, in an update, the bourse deferred the suspension of
Amsteel's securities and the commencement of delisting exercise
from the bourse's official list of companies until a decision on
the appeal comes out.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation
Berhad is involved in the provision of plantation management,
property development, management and contractor; hotel operation
and food court.  The Company is also involved in transportation
and logistic services, department stores, nominee services,
trading securities, manufacture and sale of tools, dies, tyres,
rubber compound, light trucks and buses, financial management;
distributes steel products, develops real estate property;
cultivation of rubber and oil palm, golf and country club, sale
and distribute Suzuki motorcycles, beer brewing and mineral
water bottling.

The Company was classified under Bursa Malaysia Securities
Berhad's Amended Practice Note 17 category and is required to
submit and implement a financial regularization plan to avert
delisting procedures.


AVANGARDE RESOURCES: Has Yet to Submit Annual Financials
--------------------------------------------------------
Avangarde Resources Bhd has yet to present to relevant
authorities its audited financial statements for the year ended
December 31, 2005, which was due for filing on April 31, 2006.

The company says that it still has to finalize its financial
statements.

Bursa Malaysia Securities Bhd warned the company that if it
fails to comply with the listing requirements, an action against
it, including the possibility of delisting, would be commenced.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources
Berhad is involved in the construction and development of
housing projects.  The Group has incurred huge losses due to
provision of doubtful debts and writing off of bad debts.  It
was delisted from the Official List of Bursa Malaysia Securities
Berhad due to its inadequate financial condition and its failure
to meet with the requirements of the Bourse.  The Company is now
preparing the Proposed Scheme of Arrangement pursuant to the
Section 176 of the Companies Act to regularize its financial
condition.  The Company will unveil its Proposed Scheme once it
is finalized.

The Company's balance sheet as of June 30, 2006, showed total
assets of MYR20.349 million and total liabilities of
MYR147.824 million, resulting into a stockholders' deficit of
MYR127.475 million.


CRIMSON LAND: Inks MOU with Vendors for Proposed Assets Purchase
----------------------------------------------------------------
Crimson Land Bhd entered into a memorandum of agreement for a
proposed purchase of assets from these vendors:

    1. Citraplus Sdn Bhd;
    2. Olden Goldies (M) Sdn Bhd;
    3. Century Empire Sdn Bhd;
    4. Redang Beach Resort Sdn Bhd;
    5. East West Borneo Sdn Bhd; and
    6. Golden Mig Sdn Bhd.

       Information on the Proposed Assets to be Acquired:

Vendor             Assets Details                     Land Area
------             --------------                     ---------
Citraplus Sdn Bhd  Grant 25182, Lot 41 Sec 41            71,855
                   Town of Kuala Lumpur Dist.           sq. ft.
                   State of Wilayah Persekutuan

Olden Goldies (M)  Geran No. 5336, Lot 612            23,706.13
Sdn Berhad         Seksyen 56 Bandar Kuala Lumpur       sq. ft.
                   Wilayah Persekutuan

Century Empire     HS (D) 14766, PT 986,                 24,908
Sdn Berhad         Section 62 Bandar of Kuala           sq. ft.
                   Lumpur Daerah, State of Wilayah
                   Persekutuan

Redang Beach       GM 44, Lot 95, GM 232                   6.81
Resort Sdn Bhd     Lot 285,GM 233 Lot 286,                acres
                   Lot PT 856,Lot PT 857,
                   Daerah Kuala TerengganuMukim
                   Pulau Redang, Pasir PanjangKechil
  
East West Borneo   H.S. (D) 36690 Lot 14074           2,147.662
Sdn Bhd            Mukim of Setapak District of         sq. ft.
                   Wilayah Persekutuan, State of
                   Wilayah Persekutuan

Golden Mig         Geran 17995 Lot 110423Mukim            5,285
Sdn Bhd            of Hulu Kinta District of            sq. ft.
                   Kinta, State of Perak (Plaza DNA)

The salient terms of the Sale-Purchase Memorandum of Agreement
are:

   * The sale and purchase consideration will be settled by way
     of issuance of ordinary shares and/or other instruments by
     Crimson to Citraplus, Olden Goldies, Century Empire,
     Redang, Borneo and Mig.

   * The sale and purchase of the Assets will be subject to:

     (a) the Sale and Purchase Agreements to be entered into by
         the parties;

     (b) the valuations to be carried out on the Assets; and

     (c) the approvals of the relevant authorities.

The Memorandum of Agreement will be valid for a period of three
months with effect from January 5, 2007, and will automatically
terminate if the terms and conditions relating to the
acquisition of the Assets from the Company are not acceptable to
the parties.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Crimson Land Berhad's
activities are property development, maintenance, investment and
rental services.  The Company is also into investment holding,
property cultivation, growing and trading of marine products,
rental of promotional space, management services and investment
holding.  

The Group operates in Malaysia.

Crimson Land is currently classified under the Amended-PN17
Companies List of the Bursa Malaysia Securities Bhd.

As of September 30, 2006, Crimson Land's balance sheet reflected
insolvency with MYR471.253 million in total assets and MYR472.70
million in total liabilities.  Shareholders' deficit in the
company reached MYR1.44 million.


CRIMSON LAND: Status of Interest Payments on Loan Stocks
--------------------------------------------------------
Crimson Land Bhd updates in a disclosure statement filed before
the Malaysia Securities Bhd its status of interest payments for
the Redeemable Convertible Secured Loan Stocks issued to Ambank
(M) Bhd, EON Bank Bhd and Malaysia Building Society Bhd.

    1. Both AmBank and MBSB have agreed to defer the interest
       payments due on June 30, 2006, and December 31, 2006, to
       June 30, 2007.

    2. The company still awaits EON's reply on the status of the
       interest payments due on June 30, 2006, and December 31,
       2006.

MBSB's acceptance of the Company's request was conditional upon
the written confirmation from AmBank and EON.

Crimson Land issued a total of MYR436,220,000 RCSLS to AmBank,
EON and MBSB.  The interest payments for the RCSLS are payable
semi-annually in arrears on December 31 and June 30 each year
during a 10-year period the RCSLS remain outstanding, except
that the last interest payment will be made on the respective
maturity dates of the RCSLS.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Crimson Land Berhad's
activities are property development, maintenance, investment and
rental services.  The Company is also into investment holding,
property cultivation, growing and trading of marine products,
rental of promotional space, management services and investment
holding.  

The Group operates in Malaysia.

Crimson Land is currently classified under the Amended-PN17
Companies List of the Bursa Malaysia Securities Bhd.

As of September 30, 2006, Crimson Land's balance sheet reflected
insolvency with MYR471.253 million in total assets and MYR472.70
million in total liabilities.  Shareholders' deficit in the
company reached MYR1.44 million.


HARVEST COURT: Bursa Extends Plan Filing Deadline to Jan. 31
------------------------------------------------------------
At Harvest Court Industries Bhd's request, Bursa Malaysia
Securities Bhd extended until January 31, 2007, the time within
which the company may file a regularization plan.

In addition, the bourse also decided that the company must
proceed to implement its regularization plan within the extended
timeframes in the event it obtains all relevant and necessary
authorities' approval.

The Bursa's 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:

   a. the Company fails to submit the regularization plan to the
      Approving Authorities for approval on or before the expiry
      of the Extended Timeframe;

   b. the Company fails to obtain the approval from any of the
      Approving Authorities necessary for the implementation of
      its Regularization plan and does not appeal to the
      Approving Authorities within the timeframe prescribed to
     lodge an appeal;

   c. the Company does not succeed in its appeal against the
      decision of the Approving Authorities; or

   d. the Company fails to implement its regularization plan
      within the timeframe or extended timeframes stipulated by
      the Approving Authorities.

Upon occurrence of any of these events, 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 such other date as may be
specified by Bursa Securities and delisting procedures will be
commenced against the Company.

                          *     *     *

Headquartered in Selangor, Malaysia, Harvest Court Industries
Berhad -- http://www.harvestcourt.com/-- is engaged in kiln  
drying, saw milling and manufacturing of timber doors and
related products. Other activities include development of
residential and commercial properties and jetty services and
provision of construction works and related maintenance
services.  The Group is also involved in the provision of
marketing and management services and investment in shares and
securities.  The Group operates in Malaysia and Australia.

The Group has defaulted on several loan facilities because of a
reduction in sales from 2002 onwards due to a weak global market
as a result of the Iraqi and the severe acute respiratory
syndrome, or SARS, as well as its inability to raise funds via
the equity market due to weak market sentiment.  Due to its
financial position, Harvest Court had embarked on an exercise to
restructure the Company, including a debt restructuring and
capital reduction.  The Company's proposed corporate exercise
was rejected by the Securities Commission in November 2005, on
grounds that the proposals are not comprehensive and are not
capable of resolving all financial problems of the Company.  Its
appeal to reconsider the rejection was also junked by the
Commission on February 24, 2006.  The Harvest Court Board is now
in talks with lenders and major creditors for its next course of
action.

Currently, the company is classified under the Amended PN17
category of the Bursa Malaysia Securities Bhd's official list.


MCSB SYSTEMS: Gets Delisting Notice from Bursa Malaysia
-------------------------------------------------------
MCSB Systems (Malaysia) Berhad disclosed that on Jan. 9, 2007,
it received a delisting notice from Bursa Malaysia Securities
Berhad.

The company is required to immediately enumerate in writing,
along with any documentary evidence, the reasons why its
securities should not be delisted from the Official List of
Bursa Securities.

In the event that Bursa Malaysia decides to delist the company,
the securities of the company will be removed from the Official
List of Bursa Securities after seven market days from the date
of the delisting notice, or another date as specified by the
Bursa Securities.

Conversely, in the event Bursa Securities decides not to delist
the company, other appropriate action may be imposed.

                        About MCSB Systems

Headquartered in Kuala Lumpur, MCSB Systems (Malaysia) Berhad --
http://www.mcsb.com/-- is an information technology services  
company.  The Company's activities include hardware, software,
consultancy and professional services.  The services are
categorized into systems support services, Internet professional
services, outsourcing services, software services, education
services, e-commerce consultancy and development services.  Some
of MCSB Systems (Malaysia) Berhad's subsidiaries include MCSB
Systems (PG) Sdn Bhd, MCSB Systems (Johore) Sdn Bhd and MCSB
Software Development Sdn Bhd.

The company is an affected listed issuer under Bursa Malaysia's
PN 17 category, and is therefore required to submit a plan of
regularization.


MCSB SYSTEMS: Shares Suspended from Trading
-------------------------------------------
MCSB Systems (Malaysia) Berhad's securities have been suspended
from trading on the Bursa Malaysia Securities Berhad starting
January 12, 2007.

The company received the suspension notice on January 8, 2007,
after it failed to file its regularization plan due on the same
date.

                        About MCSB Systems

Headquartered in Kuala Lumpur, MCSB Systems (Malaysia) Berhad --
http://www.mcsb.com/-- is an information technology services  
company.  The Company's activities include hardware, software,
consultancy and professional services.  The services are
categorized into systems support services, Internet professional
services, outsourcing services, software services, education
services, e-commerce consultancy and development services.  Some
of MCSB Systems (Malaysia) Berhad's subsidiaries include MCSB
Systems (PG) Sdn Bhd, MCSB Systems (Johore) Sdn Bhd and MCSB
Software Development Sdn Bhd.

The company is an affected listed issuer under Bursa Malaysia's
PN 17 category, and is therefore required to submit a plan of
regularization.

The company has, on January 9, 2007, received a delisting notice
from Bursa Malaysia Securities Berhad.


MCSB SYSTEMS: Auditors Refuse Re-Appointment
--------------------------------------------
MCSB Systems (Malaysia) Berhad disclosed that at its 25th Annual
General Meeting on December 28, 2006, its shareholders have
approved all the resolutions as stated in the Notice of AGM
contained in the Annual Report for the financial year ended
June 30, 2006, except for the resolution on re-appointment of
Tai, Yapp & Co as auditors of the company.  

The motion on the re-appointment of auditors was not carried out
because Tai, Yapp & Co had declined the re-appointment and
therefore, resigned at the conclusion of the AGM.

The company will convene an extraordinary general meeting once
it receives nomination of new auditors to fill the vacancy.

                        About MCSB Systems

Headquartered in Kuala Lumpur, MCSB Systems (Malaysia) Berhad --
http://www.mcsb.com-- is an information technology services  
company.  The Company's activities include hardware, software,
consultancy and professional services.  The services are
categorized into systems support services, Internet professional
services, outsourcing services, software services, education
services, e-commerce consultancy and development services.  Some
of MCSB Systems (Malaysia) Berhad's subsidiaries include MCSB
Systems (PG) Sdn Bhd, MCSB Systems (Johore) Sdn Bhd and MCSB
Software Development Sdn Bhd.

The company is an affected listed issuer under Bursa Malaysia's
PN 17 category, and is therefore required to submit a plan of
regularization.

The company has, on January 9, 2007, received a delisting notice
from Bursa Malaysia Securities Berhad.


PAN MALAYSIAN: Awaits SC's OK of Proposed Share Consolidation
-------------------------------------------------------------
Pan Malaysian Industries Berhad is still waiting for the
Securities Commission's approval of its Proposed Share
Consolidation and Proposed Disposal submitted on December 15,
2006.

The proposals are part of the company's plan of regularization.

              About Pan Malaysian Industries Berhad

Headquartered in Kuala Lumpur, Pan Malaysian Industries Berhad
is an investment holding company.  The Company operates through
two business segments: retailing, and property and investment
holding.  The Pan Malaysian Group's operation is predominantly
in Malaysia, Hong Kong and Singapore.

The company is an Affected Listed Issuer pursuant to PN17 of the
Bursa Malaysia as it has an unaudited, consolidated adjusted
shareholders' equity deficit of MYR17.55 million as of Dec. 31,
2005, computed on the basis stated in PN17.  The said deficit in
the company's unaudited shareholders' equity on a consolidated
basis was mainly due to the net loss of the PMI Group of
MYR163.13 million for the unaudited nine-month financial period
ended December 31, 2005, due mainly to the sharing of losses of
associated companies which comprised substantially of impairment
losses.

The Group has been suffering recurring losses since 1999.
As of June 30, 2006, Pan Malaysian has total assets of
MYR705,300,000 and total liabilities of MYR727,790,000,
resulting into a stockholders' deficit of MYR33,338,000.


PAN MALAYSIAN: Turns Around with MYR15MM Profit in Sept. Quarter
----------------------------------------------------------------
Pan Malaysian Industries Berhad posted consolidated revenues of
MYR91.52 million in the quarter ended Sept. 30, 2006, 14.89%
higher than the previous corresponding period's revenues of
MYR79.66 million, according to the company's quarterly
financials submitted to the Bursa Malaysia.

For the September Quarter, the company chalked up a
MYR88.69 million in operating expenses and a MYR0.98 million
other operating income, giving it a gross profit of
MYR3.8 million.

Net profit for the period in review amounted to
MYR14.96 million, a turn around from the net loss of
MYR15.71 million in the corresponding period in 2005.

As of September 30, 2006, the company had total assets of
MYR739.17 million and total liabilities of MYR742.55 million,
resulting in a capital deficiency of MYR3.38 million.

              About Pan Malaysian Industries Berhad

Headquartered in Kuala Lumpur, Pan Malaysian Industries Berhad
is an investment holding company.  The Company operates through
two business segments: retailing, and property and investment
holding.  The Pan Malaysian Group's operation is predominantly
in Malaysia, Hong Kong and Singapore.

The company is an Affected Listed Issuer pursuant to PN17 of the
Bursa Malaysia as it has an unaudited, consolidated adjusted
shareholders' equity deficit of MYR17.55 million as of Dec. 31,
2005, computed on the basis stated in PN17.  The said deficit in
the company's unaudited shareholders' equity on a consolidated
basis was mainly due to the net loss of the PMI Group of
MYR163.13 million for the unaudited nine-month financial period
ended December 31, 2005, due mainly to the sharing of losses of
associated companies which comprised substantially of impairment
losses.

The Group has been suffering recurring losses since 1999.
As of June 30, 2006, Pan Malaysian has total assets of
MYR705,300,000 and total liabilities of MYR727,790,000,
resulting into a stockholders' deficit of MYR33,338,000.


PAN MALAYSIAN: Won't Dispose of MUIB Shares, Contrary to Reports
----------------------------------------------------------------
Pan Malaysian Industries Berhad clarifies with the Bursa
Malaysia Securities Berhad that it is "unaware of any plans on
the disposal of Malayan United Industries Berhad shares" it
held.

This is in response to a query made by the bourse on media
reports saying that the company was disposing said stocks.

The company, however, pointed out that its management is
considering various options in an effort to improve the
company's financial position.

              About Pan Malaysian Industries Berhad

Headquartered in Kuala Lumpur, Pan Malaysian Industries Berhad
is an investment holding company.  The Company operates through
two business segments: retailing, and property and investment
holding.  The Pan Malaysian Group's operation is predominantly
in Malaysia, Hong Kong and Singapore.

The company is an Affected Listed Issuer pursuant to PN17 of the
Bursa Malaysia as it has an unaudited, consolidated adjusted
shareholders' equity deficit of MYR17.55 million as of Dec. 31,
2005, computed on the basis stated in PN17.  The said deficit in
the company's unaudited shareholders' equity on a consolidated
basis was mainly due to the net loss of the PMI Group of
MYR163.13 million for the unaudited nine-month financial period
ended December 31, 2005, due mainly to the sharing of losses of
associated companies which comprised substantially of impairment
losses.

The Group has been suffering recurring losses since 1999.
As of June 30, 2006, Pan Malaysian has total assets of
MYR705,300,000 and total liabilities of MYR727,790,000,
resulting into a stockholders' deficit of MYR33,338,000.


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

SIMPLY INSURANCE: S&P Places BB- Rtg on CreditWatch Developing
--------------------------------------------------------------
On January 10, 2007, Standard & Poor's Ratings Services said it
had placed its 'BB-' rating on Simply Insurance New Zealand Ltd.
on CreditWatch with developing implications.

The CreditWatch placement follows Australia-based GE Money's (GE
Money; not rated) decision to review its overall insurance
operations in Australia and New Zealand as part of an ongoing
global initiative.  SINZ, owned by New Zealand-based global
retail financial institution, GE Finance and Insurance Ltd.
(GEFI; not rated), is part of the overall insurance operations
in Australia and New Zealand, and forms part of this strategic
review.  As part of the review, the range of options being
considered includes the possibility of continuing the business,
forming a strategic partnership, or even a possible sale by its
parent.  At this stage, a decision is expected to be made by
March 2007.

The CreditWatch developing placement indicates the uncertainty
about SINZ's future ownership and structure, and that the rating
assigned could be upgraded, downgraded, or affirmed, depending
upon the outcome of the review.  The 'BB-' rating on SINZ
incorporates the benefit of its parent's strong management team,
which has a high level of insurance-related experience.  SINZ,
however, is not explicitly supported by GEFI, and is considered
to be of less strategic importance, given its start-up status,
and small size relative to the group.


* Moody's Issues Annual Report on New Zealand
---------------------------------------------
In its annual report on New Zealand, Moody's Investors Service
says its Aaa ratings and stable outlook reflect the country's
flexible and market-oriented economic policies that have
supported stronger economic performance that is less subject to
external shocks.

"The minority coalition government dominated by the Labor Party,
now in power for a third consecutive term, has demonstrated its
commitment to maintaining fiscal operating surpluses and keeping
debt at a prudent level," said Steven Hess, author of the
report. "This non-partisan policy course has been embraced by
the principal political parties."

Mr. Hess said the debt of the public sector, including crown
entities, is at somewhat less than 40% of GDP and has been
declining.  The central government has a goal of maintaining
debt at around 20% of GDP, a goal that it was close to achieving
by the end of the 2005-2006 fiscal year.

"The external liability position -- the highest negative
position among Aaa rated countries -- is likely to remain high,"
Mr. Hess said.  "However, there are several factors that make
New Zealand's large external liability position less risky than
might appear on the surface."  These include the high proportion
of liabilities denominated in New Zealand dollars and the fact
that almost all of the foreign currency liabilities are hedged.

"Much of the external liabilities of banks in New Zealand have a
related-party nature given that all but one of the banks is
foreign-owned, preventing direct disruption to government
finances or the balance of payments in the unlikely event of
problems," the analyst said.

Mr. Hess further said economic growth is slowing, with real GDP
for 2006 likely to rise at the slowest rate so far this decade.
In 2007, a third consecutive year with growth below 2% is
expected.  Inflation remains above the Reserve Bank's 1%-3%
target range, despite the higher interest rates that have
resulted from the bank's earlier tightening.

The government's financial statements for the 2005-2006 fiscal
year show that the operating balance and operating balance net
of revaluations and accounting changes (OBERAC) were both higher
than earlier estimates. At 5.5% of GDP, OBERAC was a bit down
from the prior year, but remains quite substantial.

"Central government gross debt fell to 22.6% of GDP, and,
netting out liquid assets, the central government has become a
net creditor with a surplus position of 1.3% of GDP," Mr. Hess
said. "The government's current target is to maintain gross debt
at about 20% of GDP rather than reducing it further."

The rating agency's report, "New Zealand: 2006 Credit Analysis,"
is a yearly update to the markets and is not a rating action.


* NZ RMBS Arrears At Lowest Levels Since September, S&P Says
------------------------------------------------------------
Loans underlying New Zealand residential mortgage-backed
securities (RMBS) that are in arrears greater than 30 days fell
in November 2006, according to the latest RMBS statistics
published by Standard & Poor's Ratings Services on January 12,
2007.

The report, New Zealand RMBS Arrears Statistics, for the month
ending Nov. 30, 2006, provides a comprehensive analysis of
arrears and other performance statistics on loans underlying New
Zealand RMBS.  Residential mortgage loans funded through RMBS
now represent more than NZ$1.4 billion, a small but growing
proportion of the New Zealand residential mortgage market.

"Arrears on loans underlying New Zealand prime RMBS fell to
2.19% in November 2006, as measured by the New Zealand Prime
Standard & Poor's Mortgage Performance Index (SPIN)," said
Standard & Poor's surveillance analyst Sarah Raisbeck.  "This is
the lowest level since September 2005 when a level of 2.17% was
recorded."

Arrears levels on both prime low documentation (LoDoc) loans and
prime full documentation (Full Doc) loans in New Zealand fell,
in line with the overall movement.  LoDocs fell to 3.69% and
Full Docs to 1.81%.

"The level of arrears on residential mortgage loans underlying
New Zealand subprime RMBS also fell over November, decreasing to
12.79% in November 2006 from 13.43% in October 2006," Ms.
Raisbeck said.  "Given the small number of loans underlying the
sub asset class, the month-to-month figures can be quite
volatile."

Standard & Poor's Mortgage Performance Index (SPIN) measures the
weighted-average arrears greater than 30 days past due on
residential mortgage loans on both publicly and privately rated
New Zealand RMBS transactions.  The SPIN is calculated for prime
and subprime residential mortgage loans.  The indices identify
the percentage of loans in arrears in each of the 31-60 days,
61-90 days, and 90+ days arrears categories.  Each SPIN is
calculated on a monthly basis using information provided to
Standard & Poor's by the issuers of each RMBS transaction.

New Zealand RMBS Arrears Statistics -- November 2006 and New
Zealand SPIN -- November 2006 are available at Standard & Poor's
Web site at http://www.standardandpoors.com.au/


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

CENTRAL AZUCARERA: Delays ASM Pending Annual Report Submission
--------------------------------------------------------------
Central Azucarera de Tarlac informs the Philippine Stock
Exchange that it has postponed its Annual Stockholders' Meeting
originally scheduled on January 30, 2007, to a later date.

Central Azucarera notes that it still has to file its 17-A
Annual Report for fiscal year 2005-2006, together with its
Financial Statement and the preliminary and definitive
information statements that are dependent on the Annual Report.

As soon as the Annual Report is submitted, the company will
immediately schedule its ASM and send out a formal notice.

On December 4, 2006, the Troubled Company Reporter - Asia
Pacific reported that trading of Central Azucarera shares was
suspended due to its non-submission of its Quarterly Report for
the period ended September 30, 2006.  The suspension remains
pending the company's compliance with the required submission.

                    About Central Azucarera

Central Azucarera de Tarlac was incorporated in 1927 and renewed
in 1976.  It operates a sugar mill and refinery, distillery and
carbon dioxide plants in Barrio San Miguel, Tarlac City.  The
sugar cane milled is sourced within the Tarlac district and
nearby towns of Pampanga.  Affiliate Hacienda Luisita, Inc.,
provides around 1/3 of the mill's cane requirements.

               Auditor Raises Going Concern Doubt

After auditing Central Azucarera's financial report for the
fiscal year ended June 30, 2005, Emmanuel V. Clarino, a partner
at Sycip, Gorres, Velayo & Co. noted the company indicated that
its milling operations were halted due to a labor strike in
November 2004 as a result of a Collective Bargaining Deadlock.  
The dispute was only settled on Dec. 8, 2005.  However, it has
brought considerable hardship to the company's financial and
operational condition.  The company has not been able to pay its
maturing loans with creditor banks.  Thus, the company incurred
a PHP550.4-million net loss, leading to a deficit of
PHP230 million as of June 30, 2005, which has placed the Company
in a tight liquidity position.  These conditions cast
significant doubt on the Company's ability to continue as a
going concern.

The Company's consolidated balance sheet as of June 30, 2005,
showed strained liquidity with PHP1,068,416,381 in total current
assets available to pay PHP1,378,111,272 in total current
liabilities.

The company's ability to continue as a going concern depends
largely on the resolution of labor disputes, successful
negotiation with creditor banks, and the resumption of milling
operations.


GLOBE TELECOM: To Redeem US$300MM Sr. Unsecured Notes in April
--------------------------------------------------------------
On January 12, 2007, Globe Telecom, Inc., disclosed that the
Bangko Sentral ng Pilipinas had approved its application to
redeem its US$300 million senior unsecured notes in April 2007,
five years ahead of its original due date.

Terms of the US$300-Million Senior Unsecured Notes:

   * Original date of issue: April 4, 2002
   * Amount outstanding to date: US$294 Million
   * Coupon: 9.75%
   * Current market rates: Peso at 6.1%, US$ at 5.7%
   * Final maturity: April 12, 2012

Globe has the option to call the notes on or after April 15,
2007, at 104.875% of principal.  Expected interest expense
savings is PHP2.3 billion after-tax -- cumulative over the
remaining life of bonds.

The company said that it is considering redeeming the notes to
take advantage of the low interest rate environment.  Globe will
make the formal call to the trustee after refinancing has been
secured.

"The BSP approval takes us a step further in our plan to redeem
the notes.  We expect to realize significant savings if we
prepay the notes and refinance it at current interest rates,"
Globe Chief Financial Officer Delfin C. Gonzalez, Jr., said.

"This validates the soundness of our debt structuring approach.  
In 2002, we built in a call option to provide us the flexibility
to redeem the bonds should interest rates fall," Mr. Gonzalez
added.

Benchmark 10-year ROP rates have dropped significantly from
8.78% in 2002 when the notes were initially issued, to 6.20% as
of end-2006.  At the same time, Globe's credit rating improved
from BB to BB+ (S&P's long-term foreign issuer credit rating)
and from Ba3 to Ba2 (Moody's senior unsecured debt rating).

Globe also said that it had recently signed an underwriting
agreement with Standard Chartered Bank for a PHP5 billion
corporate note issue to provide funding for the proposed
refinancing.  In addition, it is finalizing another refinancing
loan amounting to US$50 million.  It intends to source from
internal funds the balance of the amount to be prepaid.  The
company is also securing the requisite creditor consents to
permit the call.

"The planned redemption of the notes is in line with our over-
all efforts to lower costs in all aspects of our operations and
to reduce volatility in our P&L.  Foreign exchange fluctuations
and mark-to-market value changes of related derivatives have
resulted in significant volatility in net income following the
adoption of new accounting standards in 2005," Mr. Gonzalez
said.

Based on current market rates, Globe expects to realize
cumulative after-tax savings in interest expense of about
PHP2.32 billion over the remaining life of the notes.

However, in 2007, there will be a one-time impact to net income
of about PHP1.17 billion, largely non-cash in nature, coming
from the decline in mark-to-market values of the related
derivatives.

"This will however not undermine our core operating performance
and will even improve our longer-term financing cost profile as
after-tax savings of P464 million a year in interest expense is
generated over the remaining life of the notes," Mr. Gonzalez
added.

For the first nine months of the year, the company reported
strong earnings growth with net income of PHP9.3 billion, rising
45% from last year's level on the back of sustained subscriber
growth, focused execution of marketing strategies, and effective
cost management.  The planned call is part of a company-wide
cost reduction effort.  "As we refine our processes and re-
engineer our systems, we expect that we will continue to
optimize our cost structures across the whole organization," Mr.
Gonzalez said.

                       About Globe Telecom

Globe Telecom, Inc. -- http://www.globe.com.ph/-- is one of the  
country's major telecommunications companies.  It was
incorporated on January 15, 1935 as a traditional provider of
telex/telegram and VSAT services.  Thereon, it diversified its
business into a cellular, landline and international gateway
facility services provider for long distance telephone calls.

The Company offers a wide range of telecommunications services
to business and residential subscribers, including wireless,
wireline and carrier services.  It has introduced innovative
features like text messaging, Infotext and Handyphone Mobile
Office.  It also offers caller ID, voice mail, call forwarding
and data/fax capabilities.  Recently, it launched various
services like video messaging, streaming video, wireline data
services, over-the-air loading and its latest, MyGLobe G-TV
service, which allows subscribers to view selected TV programs
on mobile phones, among others.

                          *     *     *

Standard and Poors gave Globe Telecom's Long Term Foreign Issuer
Credit and Long Term Local Issuer Credit both a BB+ rating,
effective November 3, 2005, and June 23, 2004, respectively.

On September 1, 2006, the Troubled Company Reporter - Asia
Pacific reported that S&P affirmed its ratings on Globe Telecom
Inc. at 'BB+', with a stable outlook.

On November 3, 2006, Moody's Investors Service affirmed Globe
Telecom's Ba2 senior unsecured foreign currency rating and
changed its outlook to stable from negative.  At the same time,
Moody's has affirmed Globe's Baa2 domestic currency issuer
rating.  The outlook for this rating remains stable.


PHILIPPINE AIRLINES: Plans to Cut Debt by 20% Before 2009 Ends
--------------------------------------------------------------
Philippine Airlines aims to trim its debt by at least 20% by
2009 in order to end a creditor monitoring arrangement, the
International Herald Tribune reports, citing a Bloomberg News
report.

By the end of 2008, Philippine Airlines plans to cut debt to
less than US$800 million from US$1 billion, PAL President Jaime
Bautista said in an interview.

According to The Tribune, the monitoring arrangement restricts
the airlines' ability to grow.

Ending the monitoring arrangement may allow the airline to
obtain cheaper financing for its expansion plans, particularly
Boeing 777-300ERs, The Tribune says, noting that PAL wants to
start flying six long-haul Boeing 777-300ERs from 2009.  

According to Mr. Bautista, "there is a probability we can get
out of rehabilitation in 2008.  We haven't discussed the plan
with our creditors.  It will be easier to discuss when we've
reduced our debt."

Bloomberg recounts that PAL entered the monitoring arrangement
in 1999, after it nearly collapsed under
US$2.3 billion of debt in June 1998.  The agreement means
creditors have to approve major expenses, like new planes, the
paper explains.

Mr. Bautista revealed that the airline has received offers from
at least four banks and leasing companies as it seeks financing
for five Airbus A320s.  By the end of next year, the carrier
plans to have bought 12 A320s, leased four more and also leased
four A319s, The Tribune relates.

The 777s are more difficult to secure financing for because they
are about three times more expensive than A320s, Bloomberg says.

As reported in the Troubled Company Reporter - Asia Pacific on
December 18, 2006, Philippine Airlines has confirmed an order of
two Boeing 777-300ER planes, valued at US$250 million each.
The airline had signed a firm order for two planes for delivery
in 2010 and would be leasing two more for delivery in 2009.  PAL
also has purchase rights for another two planes for delivery
between 2011 and 2012, the TCR-AP said.

Bloomberg relates that, according to Boeing's Web site, 777-
300ER costs as much as US$264.5 million, noting that airlines
usually pay less than list prices, as they negotiate discounts.

Newer aircraft would also allow Philippine Airlines to cut its
fuel usage, which accounts for 35% of its costs, Mr. Bautista
noted.

                   About Philippine Airlines

Philippine Airlines -- http://www.philippineairlines.com/-- is  
the Philippines' national airline.  It was the first airline in
Asia and the oldest of those currently in operation.  With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights.  As of 2005, it claims
to serve 21 domestic airports and 31 foreign cities.  Its main
hub is the Ninoy Aquino International Airport in the capital
city of Manila.

Following labor problems and its failure to settle debts, PAL
filed for rehabilitation in June 1998, and is slated to complete
its 10-year debt rehabilitation program in 2009.

A March 21, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the airline company will continue a
government-led rehabilitation program even as creditors neither
approved nor rejected the program to leave the protection of the
Securities and Exchange Commission.

A report by the Manila Times in July 2006 said that since its
corporate rehabilitation in 1998, PAL reduced its debts to
PHP237.23 billion from PHP496.02 billion by selling assets and
using the proceeds to pay off maturing debts.


SBARRO, INC: Launches Tender Offer for 11% Senior Notes
-------------------------------------------------------
Sbarro, Inc. is offering to purchase for cash any and all of the
outstanding US$255,000,000 principal amount at maturity of 11%
Senior Notes due 2009 issued by it, on the terms and subject to
the conditions set forth in the Offer to Purchase and Consent
Solicitation Statement dated Jan. 8, 2007.  

Sbarro is also soliciting consents to eliminate most of the
restrictive covenants in the indenture under which the Notes
were issued.
    
On Nov. 22, 2006, Sbarro and its shareholders entered into a
definitive agreement with MidOcean SBR Holdings LLC -- an
affiliate of MidOcean Partners III, LP, aka MidOcean -- whereby
MidOcean will acquire Sbarro.  In connection with the
acquisition, Sbarro expects to enter into a new US$150.0 million
senior secured term loan facility and a new US$25.0 million
senior secured revolving facility.  Sbarro expects to raise
US$150.0 million through the issuance of new senior unsecured
notes.

Sbarro intends to use US$300.0 million of the additional cash
available from its new senior secured credit facilities and the
issuance of new senior unsecured notes to finance the
acquisition and the tender offer.
    
The total consideration for each US$1,000 principal amount of
the Notes tendered and accepted for purchase pursuant to the
tender offer will be US$1,020.83.  Sbarro will pay accrued and
unpaid interest up to, but not including, the applicable payment
date.  Each holder who validly tenders its Notes and delivers
consents on or prior to Jan. 22, 2007, shall be entitled to a
consent payment, which is included in the total consideration
above, of US$10 for each US$1,000 principal amount of Notes
tendered by such holder if such Notes are accepted for purchase
pursuant to the tender offer.  Holders who tender after the
Consent Date, but prior to the Expiration Date, shall receive
the total consideration minus the consent payment.  Holders who
tender Notes are required to consent to the proposed amendments
to the indenture.
    
The tender offer by Sbarro will expire at midnight, New York
City time, on Feb. 6, 2007, unless extended or earlier
terminated by Sbarro.  The consent solicitation will expire on
the Consent Date, unless extended.

Tenders of Notes prior to the Consent Date may be validly
withdrawn and consents may be validly revoked at any time prior
to the Consent Date, but not thereafter unless the tender offer
and the consent solicitation are terminated without any Notes
being purchased.  Sbarro reserves the right to terminate,
withdraw or amend the tender offer and consent solicitation at
any time subject to applicable law.
    
Sbarro expects to pay for any Notes purchased pursuant to its
tender offer and consent solicitation in same-day funds on a
date promptly following the Expiration Date.  Sbarro may accept
and pay for any Notes tendered prior to the Consent Date at any
time after the Consent Date, in its sole discretion.
    
Sbarro's tender offer is subject to the conditions set forth in
the Offer Document, including the receipt of consents of the
holders representing at least a majority in aggregate principal
amount of the Notes outstanding under the indenture,
consummation of the acquisition of Sbarro by MidOcean and Sbarro
obtaining the financing necessary to pay for the Notes and
consents in accordance with the terms of the tender offer and
consent solicitation.
    
Sbarro has retained Credit Suisse Securities (USA) LLC and Banc
of America Securities LLC to act as Dealer Managers and
Solicitation Agents in connection with the tender offer and
consent solicitation.  Questions about the tender offer and
consent solicitation may be directed to:

           Credit Suisse Securities (USA) LLC
           Phone: (800) 820-1653 (toll free)
                  (212) 325-7596 (collect)

                        or

           Banc of America Securities LLC
           Phone: (888) 292-0070
                  (704)-388-9217 (collect).

Copies of the Offer Document and other related documents may be
obtained from the information agent for the tender offer and
consent solicitation at:

           DF King & Co., Inc.
           Phone: (800) 290-6426 (toll free)
                  (212) 269-5550 (collect).

Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in  
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods.  As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria".  Total revenues for fiscal 2005 were
approximately US$348 million.  The company has restaurants in El
Salvador, Japan, New Zealand and the Philippines.

                          *     *     *

Moody's Investors Service held Sbarro Inc.'s Caa1 Corporate
Family Rating and Caa1 rating on the company's US$255 million
Guaranteed 11% Senior Unsecured Notes due on September 2009 in
connection of the rating agency's implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.


SBARRO INC: S&P Raises Corporate Credit Rating to B-
----------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Melville, New York-based Sbarro Inc. to 'B-' from
'CCC+'.

Concurrently, all ratings were removed from CreditWatch, where
they were placed with developing implications after the report
that the company is being acquired by private equity investors.

The outlook is stable.

At the same time, Standard & Poor's assigned a 'B' rating to
Sbarro Inc.'s US$25 million secured revolver due 2013 and
US$150 million first-lien term loan due 2014.  This and the
recovery rating of '1' indicate that lenders can expect full
recovery of principal in the event of payment default.

Standard & Poor's also assigned a 'CCC' rating to the proposed
US$150 million senior unsecured notes due 2015, which will be
issued under rule 144a with registration rights.  The notes are
rated two notches lower than the corporate credit rating due to
their structural subordination to the credit facility.

"The upgrade is the result of Sbarro's improved operating
performance over the past three years, and Standard & Poor's
expectation that the company can maintain its current level of
performance," said Standard & Poor's credit analyst Diane Shand.

Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in  
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods.  As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria".  Total revenues for fiscal 2005 were
approximately US$348 million.  The company has restaurants in El
Salvador, Japan, New Zealand and the Philippines.


SBARRO INC: MidOcean Partners Deal Cues S&P's Developing Watch
--------------------------------------------------------------
Standard & Poor's Rating Services revised the CreditWatch
listing on Sbarro Inc. to developing from negative.

"The revision comes as the potential for a downgrade has
decreased because the acquisition of the company by MidOcean
Partners will not significantly change the capital structure,"
said Standard & Poor's credit analyst Diane Shand.

"In addition, because the company has had positive operating
performance for the past three years an upgrade is a
possibility."

The corporate credit rating is 'CCC+'.

The Nov. 29, 2006, CreditWatch listing comes after the company's
report that it had agreed to be acquired by private equity
investors, MidOcean Partners, for an undisclosed sum.

The company announced on June 19, 2006, its international
expansion by opening more than 25 restaurants in Guatemala, El
Salvador, Honduras, The Bahamas and Romania.

Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in  
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods.  As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria".  Total revenues for fiscal 2005 were
approximately US$348 million.  The company has restaurants in El
Salvador, Japan, New Zealand and the Philippines.


UNION BANK: Hires Macquarie as Lead Manager of Equity Offering
--------------------------------------------------------------
Union Bank of the Philippines informs the Philippine Stock
Exchange that its Board of Directors has given the bank the go-
signal to engage the services of Macquarie Securities, Inc., as
lead manager of its projected equity offering.

UnionBank plans to raise US$100 million from the undertaking
scheduled within the first quarter of 2007, Manila Standard
Today relates.

According to Manila Standard Today, the Aboitiz family, which
controls UnionBank, wants to strengthen the bank and make it
among the top three banks in the Philippines.

The paper recounts that in March 2006, the bank issued some
PHP2.5 billion worth of unsecured subordinated notes bearing an
annual interest rate of 9.5%.  Its parent company, Aboitiz
Equity Ventures, issued US$125 million worth of unsecured notes
in 2004, which carry an interest of 7.25 % and will mature in
September, Manila Standard notes.

                       About UnionBank

Union Bank of the Philippines -- http://www.unionbankph.com/--  
offers a wide range of products and services to both corporate
and individual clients.  Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance.  It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.

Moody's Investors Service gave UnionBank a 'Ba3' Senior
Unsecured Debt and Long-Term Bank Deposits Ratings effective
May 25, 2006.


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

BENCHMARK ELECTRONICS: Completes Acquisition of Pemstar
-------------------------------------------------------
Benchmark Electronics, Inc. disclosed on Jan. 8, 2007, that it
has completed its acquisition of Pemstar Inc.

The acquisition was pursuant to the Agreement and Plan of Merger
among Benchmark, Autobahn Acquisition Corp. and Pemstar, in
which Pemstar's issued and outstanding share of common stock,
par value at US$0.01 per share, has been converted into the
right to receive Benchmark's 0.16 of a share of common stock,
par value at US$0.10 per share.

The information regarding the exchange of share certificates
will be sent to Pemstar's shareholders.  

                        About Benchmark

Benchmark Electronics, Inc. -- http://www.bench.com/--   
manufactures electronics and provides its services to original
equipment manufacturers of computers and related products for
business enterprises, medical devices, industrial control
equipment, testing and instrumentation products, and
telecommunication equipment.  Benchmark's global operations
include facilities in eight countries. Benchmark's Common Shares
trade on the New York Stock Exchange under the symbol BHE.

The company has operations in United States, Brazil, Mexico,
Europe, and Asia, which includes Thailand, China and Singapore.

                          *     *     *

Standard & Poor's Ratings Services placed its 'BB-' corporate
credit rating on Angleton, Texas-based Benchmark Electronics
Inc. on CreditWatch with positive implications after the company
announced it will acquire Pemstar Inc. in a stock transaction
valued at about US$300 million.

Moody's rates Benchmark's long-term corporate family rating at
Ba3; Bank loan debt at Ba2; and equity linked at B2.  The
ratings were assigned on March 2003.


BENCHMARK ELECTRONICS: Appoints President and CFO
-------------------------------------------------
Benchmark Electronics, Inc. disclosed the appointment of Gayla
J. Delly as the company's president and Donald F. Adam as its
chief financial officer.

Ms. Delly has worked with the company since 1996 and served as
the company's financial officer since May 2001.  In her new
role, Ms. Gayla will assume the responsibility for day-to-day
business operations of Benchmark.

On the other hand, Mr. Adam has worked with the company since
January 2002, and most recently served as Vice President and
Corporate Controller.  In his new role, Mr. Adam will assume the
responsibility for the day-to-day financial activities of
Benchmark.  Prior to joining the company in 2002, Mr. Adam had
over 16 years of public and corporate accounting experience.

                        About Benchmark

Benchmark Electronics, Inc. -- http://www.bench.com/--   
manufactures electronics and provides its services to original
equipment manufacturers of computers and related products for
business enterprises, medical devices, industrial control
equipment, testing and instrumentation products, and
telecommunication equipment.  Benchmark's global operations
include facilities in eight countries. Benchmark's Common Shares
trade on the New York Stock Exchange under the symbol BHE.

The company has operations in United States, Brazil, Mexico,
Europe, and Asia, which includes Thailand, China and Singapore.

                          *     *     *

Standard & Poor's Ratings Services placed its 'BB-' corporate
credit rating on Angleton, Texas-based Benchmark Electronics
Inc. on CreditWatch with positive implications after the company
announced it will acquire Pemstar Inc. in a stock transaction
valued at about US$300 million.

Moody's rates Benchmark's long-term corporate family rating at
Ba3; Bank loan debt at Ba2; and equity linked at B2.  The
ratings were assigned on March 2003.


INTERMEC TECHNOLOGIES: Signs Motorola as RFID Licensee
------------------------------------------------------
Intermec Technologies Corp. granted Motorola Inc. RFID patent
licenses, a company press release states.

With the grant, Motorola becomes Intermec's 24th RFID licensee.  
The other 23 licensees under Intermec's RFID patents, includes:
Accu-Sort, Avery Dennison, AWID, Cisco, Datamax, EM Micro, Feig
Electronics, Hand Held Products, LXE, Metrologic, Paxar, Philips
Semiconductor, PSC, Psion Teklogix, Sato, Sharp Corp., Symbol
Technologies, Texas Instruments, Thingmagic, Toppan Printing,
Tyco-Sensormatic, Transcore and Zebra Technologies.

In the release, Intermec says it will continue to support RFID
end users and suppliers by ensuring that the market has an ample
supply of high quality, properly licensed RFID equipment from
global manufacturers.

                       About Intermec Inc.

Intermec Inc. -- http://www.intermec.com/-- develops,     
manufactures and  integrates technologies that identify, track
and manage supply chain assets.  Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.

The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, United Kingdom and Singapore.

                          *     *     *

On Oct. 31, 2006, Moody's Investors Service confirmed its Ba2
Corporate Family Rating for Intermec Inc., as well as its Ba3
rating on the company's US$400 million Senior Unsecured Shelf in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology for the
U.S. manufacturing sector.

Those debentures were assigned an LGD5 rating suggesting
noteholders will experience an 85% loss in the event of default.

As reported by the Troubled Company Reporter - Asia Pacific on
Dec 20, 2006, Fitch Ratings has affirmed and simultaneously
withdrawn these ratings for Intermec, Inc.:

   -- Issuer Default Rating at 'BB-';
   -- Senior secured bank facility at 'BB+'; and,
   -- Senior unsecured debt at 'BB-'.


PAXAR CORPORATION: Inks Strategic Alliance with NGC
---------------------------------------------------
Paxar Corporation formed a strategic alliance with New
Generation Computing.  The tie-up will combine the strengths and
experience of Paxar and NGC in delivering supply chain
innovations to the apparel and footwear industries, a company
press release states.

Paxar and NGC will integrate their software and service
solutions to simplify and improve the reliability of the
labeling process and ensure the greater compliance of factories.

Paxar believes the integration will also help apparel brands and
retailers protect their brands.  With the help of NGC's e-SPS(R)
web-based software for global sourcing, apparel brands and
retailers can automatically order labels and tags online from
Paxar when the P.O. is issued, or the factory just need to
provide specifications for an in-house printing, the release
says.  The integration of e-SPS time and action calendars will
reduce the delays in label and tag delivery and will also
improve the collaboration and visibility between supply chain
trading partners.

"For our mutual customers, this alliance will provide a simpler,
easier to use capability by leveraging the strengths of our
respective systems.  Apparel manufacturers will find the
advantages in managing and ordering identification products,
while brands and retailers will benefit from increased brand
protection and supply chain visibility", said Steve Babat, Vice
President and Chief Information Officer of Paxar.

"The alliance between NGC and Paxar expands both companies'
product offerings while delivering significant benefits to our
customers," Alan Brooks, president of NGC, says. "Together we
are bringing a new level of efficiency, ease of use and
visibility to production, packaging and logistics," added Mr.
Brooks.

                            About NGC

Headquartered in Miami, New Generation Computing (NGC) --
http://www.ngcsoftware.com/-- is involved in product lifecycle  
management, global sourcing and ERP software for the apparel and
sewn products industries.  NGC is a wholly owned subsidiary of
American Software Inc.

NGC has offices in New York and Los Angeles, as well as China,
India, Mexico and El Salvador.

                        About Paxar Corp.

Paxar Corporation -- http://www.paxar.com/-- provides   
identification solutions to the retail and apparel industry,
worldwide.  

Paxar has subsidiaries around the world, including these Asia-
Pacific countries: Singapore, Australia, Bangladesh, China, Hong
Kong, India, Korea, Sri Lanka and Vietnam.

                          *     *     *

Paxar Corp.'s senior unsecured debt carries Moody's B1 rating.  
Moody's placed the rating on Dec. 23, 1996.


PETROLEO BRASILEIRO: Ensuring Natural Gas Supplies at CSA Mill
--------------------------------------------------------------
Published reports say that Petroleo Brasileiros, the state-owned
oil firm of Brazil, is working with the Rio de Janeiro state
government in studying ways to ensure natural gas supplies for
the CSA steel mill.

Business News Americas underscores that the 5.0-million-ton-per
year slab project is a joint venture between CVRD and
ThyssenKrupp.  The mill will begin operations in 2009.

Rio de Janeiro has chosen CSA as one of its priorities, planning
minister Julio Bueno told Folha de S Paulo.

Folha de S Paulo relates that the CSA steel mill's natural gas
consumption is estimated at 2.1 million cubic meters per day at
peak production.

Petroleo Brasileiro and Rio de Janeiro may have to decrease
supply to other consumers to guarantee gas to the steel mill,
according to reports.

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

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

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

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

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

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


PETROLEO BRASILEIRO: Launches Cidade do Rio Project Operations
--------------------------------------------------------------
Petroleo Brasileiro SA reported that the Cidade do Rio de
Janeiro Floating Production Storage and Offloading or FPSO has
started operating in the Espadarte field, in the Campos Basin.

The Cidade do Rio de Janeiro FPSO unit is 320 meters long, 54
meters wide, and 30 meters tall, corresponding to a 10-story
building.  It will be capable of lifting up to 100,000 barrels
of oil and 2.5 million cubic meters of gas per day.  Installed
at a water depth of 1,350 meters, the new platform can store 1.6
million barrels of oil.  The new project is expected to reach
its full production capacity during 2007.  When operating at
full load, it will be connected to nine underwater wells, five
of which for oil and natural gas production while the other four
are used for water injection.

The FPSO has several technological innovations onboard, among
which a new oil-pumping system developed by the Petrobras
Research Center.  The underwater centrifuge pumping system
assists in lifting the oil from the field to the platform.  The
great advantage, compared to the traditional systems, is that it
is installed externally to the well, on the sea floor,
expediting pump maintenance and replacement.  This technology
will slash operating costs, facilitate remote intervention in
the connected wells, and do away with completion rig use, one of
the most expensive equipment to lease in the international
market.

Contracted from MODEC International LCC, the Cidade do Rio de
Janeiro FPSO will make a significant contribution to maintaining
Brazilian oil self-sufficiency.

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

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

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

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

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

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


SEA CONTAINERS: Wants Until June 12 to File Chapter 11 Plan
-----------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask the United
States Bankruptcy Court for the District of Delaware to extend
their exclusive period to:

   (a) propose and file a plan of reorganization to and
       including June 12, 2007; and

   (b) solicit acceptances of that plan to and including
       August 11, 2007.

Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that since filing for
bankruptcy, the Debtors have concentrated on stabilizing their
business operations, managing a smooth transition to operating
under Chapter 11 protection, and continuing to develop and
implement their restructuring plan which will form the basis of
a confirmable plan of reorganization.  Specifically, the Debtors
have:

   (1) filed several "first day" motions, which have been
       approved by the Court on an interim or final basis;

   (2) sought and obtained interim Court approval to make
       statutory payments to dismissed employees, which relief
       has minimized the disruption to their business operations
       associated with the commencement of the Chapter 11 cases;

   (3) filed a petition with the Bermuda Supreme Court to wind
       up Sea Containers Ltd., and sought the appointment of
       point provisional liquidators with limited powers, which
       appointment provides SCL with the additional protection
       statutory moratorium that ensures that no creditor or
       other party with standing could take action against SCL
       or its assets in Bermuda;

   (4) prepared and filed retention applications for various
       professionals to assist in their reorganization efforts.
       Among other professionals, the Court has approved the
       retention of Sidley Austin LLP, PricewaterhouseCoopers
       LLP, Collinson Grant Ltd., Towers Perrin, and Carter
       Ledyard & Milburn LLP;

   (5) filed an application to employ ordinary course
       professionals and a request to establish compensation
       procedures for professionals, which request was Court-
       approved on November 8, 2006;

   (6) devoted considerable time and resources addressing
       various business issues related to GE SeaCo SRL, as well
       as responding to the request of GE Capital Container SRL
       and GE Capital Container Two SRL for relief from the
       automatic stay to proceed with arbitration; and

   (7) continue to identify and implement significant business
       measures, including valuing and marketing various
       businesses and other assets for sale to maximize the
       value of the businesses and assets located across the
       group and the potential return to the Debtors' creditor
       constituencies.

Mr. Brady tells the Court that the Debtors' sufficiently large
and complex cases warrant an extension of their Exclusive
Periods.  As of June 30, 2006, SCL, on a consolidated basis with
all its subsidiaries, had total assets having a net book value
of US$1,673,000,000, including assets of its former subsidiary
Silja Oy Ab which has since been sold.  

According to Mr. Brady, the company's capital structure adds
additional complexity because many of the Non-Debtor
Subsidiaries have historically relied on SCL to provide
financing for their various operational needs, including funding
for the payment of Non-Debtor Subsidiaries' creditors, funding
required to preserve the value of assets held by Non-Debtor
Subsidiaries, and funding to maintain the business operations of
the Non-Debtor Subsidiaries.  

The Debtors' Chapter 11 Cases have the additional complexity of
dealing with foreign creditors, vendors and legal issues in a
multitude of foreign jurisdictions, including the coordination
with the JPLs and the proceedings in Bermuda, Mr. Brady adds.  

Mr. Brady assures the Court that the extension will not harm the
Debtors' creditors or other parties-in-interest and will be used
for a proper purpose that is to develop a feasible plan of
reorganization, which is in the best interests of all of the
Debtors' constituencies.  

                       About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000)


SEA CONTAINERS: Wants Until May 13 to Decide on Leases
------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask the United
States Bankruptcy Court for the District of Delaware to extend
the original 120-day period to assume or reject real property
leases through and including May 13, 2007, pursuant to Section
365(d)(4) of the Bankruptcy Code.

According to Robert S. Brady, Esq., at Young Conaway Stargatt &
Taylor, LLP, in Wilmington, Delaware, the Real Property Leases
include:

   (1) lease of the 5th, 11th, 12th, 13th and 14th floors of Sea
       Containers House, 20 Upper Ground, in London SEl, United
       Kingdom, between Archlane Limited and Sea Containers
       Services Ltd., dated March 25, 1988, and expiring
       December 24, 2011;

   (2) lease of the second basement, first basement, ground
       12th and 13th floors of Sea Containers House, 20
       Upper Ground London SEl between Archlane Limited and Sea
       Containers Services dated March 25, 1988, and expiring
       December 24, 2011; and

   (3) lease of Arches 1-12 and 15 and 16 beneath Southwark
       Bridge, Southern Approach, Park Street, London SE 1,
       between The Mayor and Commonalty and Citizens of the City  
       of London as Trustees of the Bridge House Estates and Sea
       Containers Services commencing August 20, 2003, and
       expiring December 25, 2011.

The office spaces at Sea Containers House serve as Sea
Containers Services' headquarters and of the direct and indirect
U.K. subsidiaries of Sea Containers Ltd.

Mr. Brady discloses that Sea Containers Services conducts
substantially all of its business activities from the Premises.
For the benefit of SCL, itself, and certain of the Non-Debtor
Subsidiaries, Sea Containers Services' employees at the
Premises, among other things:

   * manage financial and accounting services;

   * operate information technology systems;

   * provide administrative services; and
     
   * manage payroll and other human resource services.  

In addition, certain of the U.K. Subsidiaries and affiliated
entities of the Debtors sublease office space at the Premises
from Sea Containers Services.  

Mr. Brady informs Judge Carey that Sea Containers Services is
not prepared to:

   (i) assume the Premises Leases and obligate the estate for
       the remaining five year terms under the Premises Leases;
       or

   (ii) reject the Leases before the expiration of the 120 days
        set forth in Section 365(d)(4) because Sea Containers
        Services' and the U.K. Subsidiaries' operations would be
        required to immediately relocate.

Mr. Brady says an extension is warranted because:

   (a) Sea Containers Services is current on its obligations
       under the Premises Leases and intends to continue to
       fulfill their obligations under the Leases on a timely
       basis, unless the Leases are rejected;

   (b) as the headquarters of Sea Containers Services and the
       U.K. Subsidiaries, the Premises serve an important role
       in preserving the continuity of the Debtors' ongoing
       operations;

   (c) the Debtors' Chapter 11 Cases are large and complex, and
       it is important that they be afforded a reasonable
       opportunity to address the myriad of issues implicated by
       the ongoing restructuring efforts before they are forced
       to make a long term decision concerning the Premises; and

   (d) the Debtors and its creditor constituencies have not had
       sufficient time to formulate a plan of reorganization,
       which formulation will require the participation of
       multiple constituencies including several with rights
       which may emanate from foreign law.

                       About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight  
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000)


SPECTRUM BRANDS: To Cut 100 Jobs Pursuant to Reorganization
-----------------------------------------------------------
Spectrum Brands, Inc., will cut approximately 100 jobs pursuant
to the company's plan to streamline its business into three
units.

In a press release dated Jan. 10, 2006, Spectrum Brands
disclosed plans to realign the company's four operating segments
into three vertically integrated, product-focused operating
units: Global Batteries & Personal Care, Home & Garden and
Global Pet Supplies.

Spectrum said that the consolidation of the operating segments
will begin immediately and will be reflected in its financial
report for the second quarter of fiscal 2007.

According to Dave Jones, Spectrum Chairman and Chief Executive
Officer, the realignment will make the company a stronger, more
efficient and competitive company.  

"By streamlining the business into three product-oriented
operating units, we will significantly enhance our competitive
focus and improve our cost structure," Mr. Jones says.  "These
changes will allow us to go to market faster with new,
innovative products, as well as improve our ability to
efficiently allocate resources on a worldwide basis.  This
business unit realignment will also facilitate the orderly
execution of the asset sale process we announced in July."

With the changes, the company plans to undertake steps to cut
down costs including a reduction in employee headcount by around
100 employees.  "Our new structure will enable Spectrum to
operate more efficiently and profitably by eliminating
duplicative staff functions and overhead in each of our business
units, and downsizing our corporate infrastructure," Mr. Jones
adds.

Moreover, the company unveiled appointments including:

   * David Lumley as President of Global Batteries & Personal
     Care and Home & Garden, and Co-Chief Operating Officer of
     Spectrum Brands;

   * Remy Burel as President of Europe/ROW;

   * John Heil as Co-Chief Operating Officer of Spectrum Brands;
     and

   * Kent Hussey as Vice Chairman of Spectrum Brands.

                      About Spectrum Brands

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products  
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world.  The company has manufacturing
and distribution facilities in China, Australia and New Zealand,
and sales offices in Melbourne, Shanghai, and Singapore.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 3, 2006, Moody's Investors Service confirmed Spectrum
Brands Inc.'s B3 Corporate Family Rating in connection with the
rating agency's implementation of its new Probability-of-Default
and Loss-Given-Default rating methodology.


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

DAIMLERCHRYSLER: Chrysler's '06 Sales Outside N. America Up 15%
---------------------------------------------------------------
Chrysler Group's sales continued to gain momentum outside North
America and increased 15% over 2005.  It was the highest amount
of growth in the last 10 years, and the total sale of almost
207,000 vehicles made it the number-two sales year during that
same time period.

"It is clear that the road to long-term health for our company
must include an aggressive strategy for international
expansion," Chrysler Group president and chief executive officer
Tom LaSorda said.

By the end of 2007, Chrysler Group will have doubled the number
of vehicles available outside North America when compared with
2003, tripled the number of right-hand-drive offerings and
quadrupled the number of models with a diesel option.

Supported by the strategy to offer more vehicles that meet the
needs of global customers, each of Chrysler Group's three brands
outperformed 2005 sales totals.  Chrysler brand sales increased
6% with a total of 90,807 units, while the Jeep(R) brand was up
2% to 85,591 units.  The expansion of the Dodge brand in markets
outside North America helped raise its year-over-year sales 185%
and close the year with 30,527 units.

For the month of December, International sales were up 25%
(20,845 units) compared with the same month in 2005 (16,667
units), and the year finished upholding the trend of monthly
year-over-year sales gains, now at 19 consecutive months.

Additionally, for the month of December, all major regions
posted sales gains.  Western European sales, which account for
more than half of Chrysler Group's global sales, increased 20%
for the year, and all markets in that region made gains over
2005.  Sales in Italy, the top-selling market with 21,260 units
sold in 2006, increased 12%; while the U.K. sales growth of 40%
was the most significant of all International markets, and
secured it as the number-two selling market outside North
America.

Jeep Grand Cherokee was the highest volume vehicle outside North
America in 2006 with 39,208 units sold; and much like in the
U.S., Chrysler Group minivans contributed to a significant
portion of the year's sales (35,716 units), making it the
second-best seller. New models were also an important factor in
the sales success. After being on the market only seven full
months, Dodge Caliber sold 17,722 units and accounted for
roughly 9% of all Chrysler Group sales outside North America.

"Many of Chrysler Group's new vehicles are beginning to make
their way to International markets," Chrysler Group Executive
Director for International Sales and Marketing Thomas Hausch
said.

"This arrival of the product offensive, along with the
investment that the Company and our dealers made to continuously
improve facilities, vehicle quality and increase customer
satisfaction are drivers of this year's sales accomplishments.  
And we will keep working on these areas to support our continued
profitable growth moving into 2007."

Chrysler Group sells and services vehicles in more than 125
countries around the world, and Chrysler Group sales outside
North America currently account for approximately 8% of the
company's total global sales.  Vehicles available range across
all three Chrysler Group brands, with limited availability on
some trucks and SUV models.  The Company's operations outside
North America have been experiencing year-over-year sales
increases since 2004, and will continue to increase the number
of product offerings, powertrain options, and RHD availability
through 2007.

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


DAIMLERCHRYSLER: Chrysler Arm to Double International Sales
-----------------------------------------------------------
Chrysler Group, DaimlerChrysler A.G.'s U.S. unit, aims to double
its international sales in the next five years, following a
decline in its U.S. results for 2006, Bloomberg News reports.

Chrysler CEO Tom LaSorda said the unit wants to be less
dependent on its U.S. sales, which fell seven percent in 2006.  
U.S. sales account for around 80% of Chrysler Group's sales.

Mr. LaSorda said the company would focus on increasing sales
outside North America adding vehicle features like right-hand
drive and diesel engines.  The company sold 200,000 vehicles
outside North America in 2006.

Chrysler's plans also include:

   -- adding a Taiwan-built cargo van in Mexico; and
   -- manufacturing Sebring sedans in China for domestic sale.

In a TCR report on Jan. 5, Chrysler has signed a deal with Chery
Automobile Co. under which the Chinese automaker will produce
small cars known in the industry as "B-cars" to be distributed
worldwide bearing the Chrysler brand.

DaimlerChrysler has decided to partner with Chery Auto because
higher costs such as labor and healthcare make it difficult for
the company to build small cars profitably in the U.S.,
Bloomberg News reports.

"Their plan is realistic," John Novak, an analyst at Morningstar
Inc. in Chicago, told Bloomberg.  "I think they are a little
late to the game, but they can catch up."

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


FEDERAL MOGUL: Court Lifts Stay on Use of U.K. Insurance Claims
---------------------------------------------------------------
The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court
for the District of Delaware grants the request of Federal-Mogul
Corporation and its debtor affiliates for the lifting of the
automatic stay, to the extent necessary to exercise setoff
rights as contemplated by the settlement agreements relative to
employers' liability insurance coverage of asbestos-related
claims of employees of T&N and the U.K. Debtors.

The Court rules that the Debtors' obligations under the
Collateral Settlement Agreement will not be varied or modified
by the terms of any plan of reorganization.

To the extent that the Debtors' settlement of claims pursuant to
the Settlement Agreements constitute a use or sale of the claims
outside of the ordinary course of business, the Court approves
the use or sale of those claims.  In addition, the Court
authorizes the Debtors to effectuate the use or sale of the
claims consistent with the terms of the Settlement Agreements.

The Bankruptcy Court recently approved the settlement agreement
inked among Federal-Mogul Corporation and its debtor-affiliates
based in the United Kingdom, including T&N Limited and two
insurers resolving the litigation and dispute over the
employers' liability insurance coverage of asbestos-related
claims of employees of T&N and the U.K. Debtors.

The Employers' Liability Insurers are:

   (a) Royal Insurance Company, now Royal & SunAlliance; and
   (b) Brian Smith Syndicate at Lloyd's.

A list of the 58 U.K. Debtors is available for free at
http://ResearchArchives.com/t/s?36e

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's  
largest automotive parts companies with worldwide revenue of
some US$6 billion.  In the Asian Pacific region, the company has
operations in Malaysia, Australia, China, India, Japan, Korea,
and Thailand.  

The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities.  Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.  (Federal-Mogul Bankruptcy News, Issue
No. 120; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)



                            *********

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 ***