TCRAP_Public/070122.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Monday, January 22, 2007, Vol. 10, No. 15

                            Headlines

A U S T R A L I A

AWB LIMITED: Pays More Than AU$6.5 Million to 5 Executives
ENVIRO SITE: To Declare Dividend for Unsecured Creditors
KEVNDI PTY: Members to Hear Liquidator's Report on Feb. 12
KNIGHT BROS: Enters Wind-Up Proceedings
LOGAN MAY: Members Resolve to Wind Up Firm

METAL STORM: Appoints Lee Finniear as Chief Executive Officer
PROFITABLE BUSINESS: Members Appoint Liquidators
REMLANE PTY: Members to Receive Wind-Up Report on February 14
RYMO PTY: Members' Final Meeting Slated for February 14
TAHA SUPERANNUATION: Schedules Final Meeting on February 12

TAHA WAGERING: Liquidator to Present Wind-Up Report on Feb. 12
TEEMORE PTY: Members Opt to Wind Up Firm
TULSA PTY: To Declare Final Dividend for Priority Creditors
WATSON DINNISON: To Declare First and Final Dividend on Feb. 7


C H I N A   &   H O N G  K O N G

ALFRED KEYNES: Court Sets Wind-Up Hearing for January 31
CONIC CARPET: Members to Receive Liquidator's Report on Feb. 28
DANA CORP: Has Until September 3 to File Restructuring Plan
DANA CORP: Court Sets Feb. 8 Bidding Deadline for Engine Biz
DANA CORP: Wants to Implement Sypris' Parts' Re-Sourcing Program

GOLD LUCKY: Members Agree to Shut Down Business
HILLDUN LTD: Undergoes Voluntary Liquidation
HONG KONG FUJIDENDKI: Members Opt to Wind Up Firm
HOPSON DEVELOPMENT: S&P Places BB+ Credit Rating on WatchNeg
JACUZZI BRANDS: Extends Solicitation Deadline Until February 6

JING WEI: Final Meeting Slated for February 28
MING KWONG: Members Decide to Close Business
MOSAIC CO: Expects to File Delinquent Form 10-Q by End of Jan.
OGC MANAGEMENT: Wind-Up Hearing Set on February 7
PROFIT CONTAINER: Creditors Must Prove Debts by February 28

QING XIN: Creditors' Proofs of Debt Due on February 12
SMART MANNER: Members Pass Resolution to Wind Up Firm
TCL MULTIMEDIA: December 2006 TV Sales Down 19%
TRILEASE INTERNATIONAL: Joint Liquidators Cease to Act
VOLKSWAGEN AG: Supervisory Board Restructures Management

* Real Estate Developers not Materially Affected by New Taxes


I N D I A

BRITISH AIRWAYS: T&G Union Favors Settlement Over Strike Action
BRITISH AIRWAYS: GMB Union's Shop Stewards Reject Pension Offer
BRITISH AIRWAYS: Reducing Fuel Surcharge on Longhaul Flights
GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally
KARNATAKA BANK: Board Allots 3,200 Shares

KOTAK MAHINDRA: Schedules Board Meeting on January 22
KOTAK MAHINDRA: Issues 65,602 Shares Under Equity Options Plan
NTPC LTD: Names K. B. Dubey as New Projects Director
ORIENTAL BANK: Board Meeting Set on January 24
POWER FINANCE: Set to Offer Shares in IPO on January 31


I N D O N E S I A

ALCATEL-LUCENT: Vodafone Expands Wireless Service by AL Solution
EXCELCOMINDO PRATAMA: Plans Bond Issue To Raise Capital
GARUDA INDONESIA: 2006 Net Lost Narrows to IDR298 Billion
GENERAL NUTRITION: Posts 11.1% Growth in 2006 Same-Store Sales
NUTRO PRODUCTS: More Than 100 Property Owners Sue Firm

PERUSAHAAN GAS: Supervisory Board Begins Probe on Shares Decline
TELKOM INDONESIA: Expands With Juniper Networks Routing Platform
VERITAS DGC: CGV Reveals Allocations of Merger Consideration


J A P A N

JAPAN AIRLINES: Shares Rise After JPY60-Bil. Loan Announcement
NORTHWEST AIRLINES: Files Plan of Reorganization in New York
NORTHWEST AIRLINES: S&P Says Plan Filing Won't Affect Ratings
PGMI INC: Announces Result of Annual Shareholder Meeting
SANYO ELECTRIC: Awards US$370-Mil. Polysilicon Contract to Hoku


K O R E A

ACTUANT CORP: Earns US$25.1 Mil. in First Quarter Ended Nov. 30
SK CORP: Incheon Unit Short-listed Among Tiger Oil Bidders
TOWER AUTOMOTIVE: Posts US$16.6-Mil. Net Loss in November 2006


M A L A Y S I A

AMSTEEL CORP: Bourse Extends Plan Filing Deadline to March 7
ANTAH HOLDINGS: SC Exempts Share Disposal from Guideline
ANTAH HOLDINGS: December 2006 Loan Default Totals MYR258.6 Mil.
EKRAN BERHAD: Appeals Bursa's Decision to Suspend Securities
HALIFAX CAPITAL: Inks US$23.2-Million Ship Building Contract

PROTON HOLDINGS: Chery Auto Shows Interest in Car-Making Tie-Up


N E W   Z E A L A N D

AIR NEW ZEALAND: Slashes Domestic Airfares up to 26%


P H I L I P P I N E S

BANK OF COMMUNICATIONS: Philtrust Extends Offer to January 31
BANK OF COMMUNICATIONS: Wants to Consider Other Bidders
NATIONAL POWER: Remits PHP2.6-B dividends to National Government
* Philippine Consumer Confidence Up, MasterCard Survey Reveals


S I N G A P O R E

ARMSTRONG INDUSTRIAL: In Talks to Acquire Three Auto Companies
ARMSTRONG INDUSTRIAL: Shareholder Reduces Deemed Holdings
CKE Restaurants: Appoints VP for Regional Marketing and Media
CKE Restaurants: Stock Repurchase Program Increased by US$50 MM
COMPACT METAL: Discloses Shareholders' Change of Interests

GRANT PRIDECO: Jay Mitchell Quits Treasurer Post
GUL TECHNOLOGIES: Completes Share Purchase Agreement Deal
PACIFIC RIM: Creditors' Proofs of Debt Due on Feb. 12
PALEMBANG COASTAL: Creditors Must Prove Debts by Feb. 8
PETROLEO BRASILEIRO: Bids for Gas Export Contract with Bolivia

PETROLEO BRASILEIRO: Investing in Proinfa Renewable Projects
PETROLEO BRASILEIRO: Talking with Consortium in Ceara Project
QUINTILES TRANSNATIONAL: Inks Agreement with ClinfoSource
REFCO INC: CFTC Objects to Mr. McNeil's Case Conversion Request
REFCO INC: Payments to Professionals Reaches US$145.3 Million

SEA CONTAINERS: Can Decide on Leases Until May 13
SEA CONTAINERS: Can File Chapter 11 Plan Until June 12


T H A I L A N D

KASIKORNBANK: Fourth Qtr. Earnings Soars Due to Unit's Closing
TMB BANK: Moody's Takes Junior Subordinated Notes (P)Ba1 Rating
* Fitch Sees Stable Outlook for AsPac Technology Sector in 2007

     - - - - - - - -

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

AWB LIMITED: Pays More Than AU$6.5 Million to 5 Executives
----------------------------------------------------------
On January 17, 2007, AWB Limited submitted its 2006 Annual
Report to the Australian Securities Exchange.

According to the Australian Associated Press, based on the
report, five former executives of AWB Limited pocketed salaries
and benefits totaling more than AU$6.5 million in their final
year at the company.

The sum includes almost AU$1 million to former chief financial
officer Paul Ingleby, AAP says.

The figures, contained in the annual report, also revealed that
the company made termination payments totaling more than
AU$1.2 million to two former executives who could face criminal
charges over the kickbacks scandal, the Daily Telegraph says.

The Grains Council of Australia said the payouts were
"scandalous," the Daily Telegraph relates, adding that Labor
also condemned the payments.

Opposition public accountability spokeswoman Penny Wong said
"AWB has to explain to its shareholders and the Australian
public how it can justify these exorbitant payouts in light of
the company's performance."

However, an AWB spokesman said the executives received money to
which they were legally entitled, AAP notes.  "It is important
to note that none of the former executives has been charged with
any offence," the spokesman said.

AAP notes acting Prime Minister and Nationals leader Mark Vaile
as refusing to criticize the payments and as saying "that is a
matter that the board of AWB will have to justify with their
shareholders."

AAP recounts that in November, Commissioner Terence Cole
recommended 11 former AWB executives to face further
investigation for possible breaches of criminal and corporations
law.  The AWB executives include:

   1. former rural services chief Charles Stott,
   2. former trading manager Peter Geary,
   3. former in-house lawyer, and company secretary Jim Cooper,
      and
   4. former chief financial officer Paul Ingleby

These executives were paid AU$3.5 million between them in their
final year at AWB, the Daily says, adding that these officers
could face fraud-related charges under the federal and Victorian
Crimes Acts, and the Corporations Act.

Former AWB managing director Andrew Lindberg, who was cleared of
any wrongdoing by the Cole inquiry, left the company with a
payout of more than AU$3 million, AAP adds.

A full-text copy of AWB's 2006 Annual Report is available for
free at:

              http://ResearchArchives.com/t/s?18bc

                          About AWB

AWB Limited -- http://www.awb.com.au/-- is Australia's leading  
agribusiness and one of the world's largest wheat marketing
companies.  It is also one of Australia's top 100 publicly
listed companies.  The Company is the exclusive manager and
marketer of all Australian bulk wheat exports through what is
known as the Single Desk.  The Company markets wheat, and a
range of other grains, into more than 50 countries, with
Australian wheat exports worth up to AU$5 billion per year.  
AWB's footprint includes more than 430 outlets through its
subsidiary landmark and has offices across the world.  The
company employs more than 2,700 staff reaching over 100,000
customers.  AWB is also one of the nation's largest suppliers of
rural merchandise, distributors of fertilizer, marketers of
livestock, brokers of rural real estate and handlers of wool.

In late 2005, AWB was accused of knowingly paying AU$290 million
in kickbacks to the Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food
program.  A UN report then found out that AWB paid the kickbacks
to a Jordanian trucking company linked to Hussein's deposed
regime.  The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the
company's role in and the Government's alleged "knowledge" of
the scandal.  The "Cole Inquiry" is currently underway.  The
scandal is anticipated to create great political repercussions
to the Australian Government, given the country's contribution
to military action against President Hussein in the 2003
invasion of Iraq.

However, after auditing AWB's financial results for the fiscal
year ended September 30, 2006, Brett Kallio, a partner at Ernst
& Young, disclosed that there is inherent uncertainty
surrounding the consolidated entity with regard to matters
associated with the Federal Inquiry into certain Australian
companies in relation to the United Nations Oil-for-Food
Programme.

Mr. Kallio noted that there is uncertainty as to the nature of
the findings of the Oil-for-Food Inquiry and the resultant
impact, if any, on the company's financial position, financial
performance, cash flows and its operations arising directly or
indirectly from the Inquiry.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on July
12, 2006, that six American wheat farmers have launched a AU$1-
billion class action against AWB in the United States, claiming
its dealings in overseas markets damaged their own incomes.  
According to the TCR-AP report, more farmers are considering
joining the class action.

The TCR-AP also previously reported that Australian law firm
Maurice Blackburn Cashman was considering a class action against
AWB on behalf of shareholders who lost money in the wake of the
Cole Inquiry.

AWB's September 30, 2006, balance sheet showed total assets of
AU$5.65 billion and total liabilities of AU$4.52 billion
resulting to total shareholders' equity of AU$1.12 billion.


ENVIRO SITE: To Declare Dividend for Unsecured Creditors
--------------------------------------------------------
Enviro Site & Civil Pty Ltd, which is subject to a deed of
company arrangement, will declare a dividend for its unsecured
creditors on Jan. 23, 2007.

Creditors who were unable to submit their proofs of debt by
Jan. 16, 2007, are excluded from sharing in the distribution.

The deed administrator can be reached at:

         P. A. Lucas
         P. A. Lucas & Co
         Chartered Accountants
         Level 8, ING Building
         100 Edward Street, Brisbane Qld 4000
         Australia

                       About Enviro Site

Enviro Site & Civil Pty Ltd  -- http://www.envirosite.com.au/--  
is located in Queensland, Australia.  The company is engaged in
the demolition business, with specialization in marine
demolition, asbestos removal, and environmental rehabilitation.


KEVNDI PTY: Members to Hear Liquidator's Report on Feb. 12
----------------------------------------------------------
The members of Kevndi Pty Ltd -- formerly known as Davidson
Measurement Pty Ltd -- will meet on Feb. 12, 2007, at
10:30 a.m., to hear the report of D. R. Vasudevan, the appointed
liquidator, regarding the company's wind-up proceedings.

On June 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that the company's sole member decided to liquidate its
business and appointed Mr. Vasudevan as liquidator.

The Liquidator can be reached at:

         D. R. Vasudevan
         Pitcher Partners
         Level 19, 15 William Street
         Melbourne, Victoria 3000
         Australia

                        About Kevndi Pty

Kevndi Pty Ltd is a distributor of industrial machinery and
equipment.

The company is located in Victoria, Australia.


KNIGHT BROS: Enters Wind-Up Proceedings
---------------------------------------
At an extraordinary general meeting held on Dec. 8, 2006, the
members of Knight Bros Pty Ltd -- trading as Doran's Fine Foods
-- resolved to voluntarily wind up the company's operations.

Subsequently, William John Fletcher and Katherine Elizabeth
Barnet were appointed as joint and several liquidators at the
creditors' meeting held that same day.

The Joint and Several Liquidators can be reached at:

         William John Fletcher
         Katherine Elizabeth Barnet
         Bentleys MRI
         Chartered Accountants
         GPO Box 740, Brisbane Queensland 4001
         Australia

                       About Knight Bros

Knight Bros Pty Ltd is a distributor of canned fruits,
vegetables, preserves, jams, and jellies.

The company is located in Tasmania, Australia.


LOGAN MAY: Members Resolve to Wind Up Firm
------------------------------------------
On Dec. 20, 2006, the members of Logan May Pty Ltd met and
resolved to voluntarily wind up the company's operations.

In this regard, Michael Owen was appointed as liquidator.

The Liquidator can be reached at:

         Michael Owen
         Chartered Accountant
         BDO Kendalls
         Level 18, 300 Queen Street
         Brisbane, Qld 4000
         Australia

                        About Logan May

Logan May Pty Ltd is an investor relation company.

The company is located in Queensland, Australia.


METAL STORM: Appoints Lee Finniear as Chief Executive Officer
-------------------------------------------------------------
Metal Storm Limited has appointed Dr. Lee Finniear as Chief
Executive Officer of the company, effective from February 19,
2007.

Dr. Finniear took his undergraduate degree from Loughborough
University UK with first class honours in Civil Engineering.  He
holds a PhD in an engineering related field.  He has worked in
the UK, Asia, and the USA, and has held senior executive roles
in technology companies that service defence organizations
worldwide.  In his most recent role as CEO of Derceto Ltd, he
operated businesses in New Zealand, the USA and the UK.  He has
strong business contacts in the American market and direct
experience with Defence Industry acquisition procedures in this
country.

The Executive Chairman, Terry O'Dwyer, said "[Dr. Finniear] has
had extensive experience taking developed concepts through to
commercial products, orders and sales," Mr. O'Dwyer said.  
"Metal Storm has significantly progressed its capacity toward
commercialized products over the last 12 months and consequently
the timing of Dr. Finniear's appointment as CEO is another part
of the careful process by the Company to build its sales,
partnering, and delivery capability."

Mr. O'Dwyer will cease to act in an executive capacity on Dr.
Finniear's appointment.

                       About Metal Storm

Metal Storm Limited -- http://www.metalstorm.com/-- is  
headquartered in Brisbane, Australia, and incorporated in
Australia, with an office in Arlington, Virginia.  Metal Storm
works with government agencies and departments, as well as
industries, to develop a variety of systems utilizing the Metal
Storm non-mechanical, electronically fired stacked ammunition
system.

Metal Storm reflected a loss of AU$10,914,600 in its Annual
Financial Report for the year ended December 31, 2005, which was
attributable to members of its parent company.  The Directors
noted that they are actively seeking funding to continue the
Company's operations.

After auditing the Company's 2005 Annual Report, Winna Irschitz,
a partner at Ernst & Young, raised significant uncertainty
regarding the Company's and its consolidated entity's ability to
continue as going concerns.

As stated in the 2005 Annual Report, Metal Storm's continuing
viability, and ability to continue as a going concern and to
meet debts and commitments as and when they fall due is
dependent on its ability to secure additional equity funding in
the near future and to continue the development and progress the
commercialization of its electronically initiated "stacked
projectile" weapons systems.


PROFITABLE BUSINESS: Members Appoint Liquidators
------------------------------------------------
On Dec. 21, 2006, the members of Profitable Business Concepts
Pty Ltd met and appointed Susan Carter and Jason Bettles as the
company's liquidators.

The Liquidators can be reached at:

         Susan Carter
         Jason Bettles
         Worrells Solvency & Forensic Accountants
         Level 6, 50 Cavill Avenue
         Surfers Paradise, Queensland 4217
         Australia
         Telephone:(07) 5553 3444
         Facsimile:(07) 5570 1884

                   About Profitable Business

Profitable Business Concepts Pty Ltd is engaged with commercial
economic, sociological, and educational research.

The company is located in Queensland, Australia.


REMLANE PTY: Members to Receive Wind-Up Report on February 14
-------------------------------------------------------------
The members of Remlane Pty Ltd will meet on Feb. 14, 2007, at
9:15 a.m., to receive a report of the company's wind-up
proceedings from the company's liquidator.

According to the Troubled Company Reporter - Asia Pacific, the
company will declare the first and final dividend on Feb. 7,
2007.

The TCR-AP also recounts that the company entered voluntary
wind-up on Oct. 11, 2006.

The liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia

                       About Remlane Pty

Remlane Pty Ltd operates metals service centers and offices.

The company is located in Victoria, Australia.


RYMO PTY: Members' Final Meeting Slated for February 14
-------------------------------------------------------
A final meeting of the members of Rymo Pty Ltd will be held on
Feb. 14, 2007, at 10:15 a.m., to consider the liquidator's
account on the company's wind up and property disposal exercise.

The Troubled Company Reporter - Asia Pacific previously reported
that the company was placed under voluntary wind-up on Oct. 11,
2006.

The liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia

                         About Rymo Pty

Rymo Pty Ltd operates miscellaneous retail stores.

The company is located in South Australia, Australia.


TAHA SUPERANNUATION: Schedules Final Meeting on February 12
-----------------------------------------------------------
Taha Superannuation (No 3) Pty Ltd, which is in voluntary
liquidation, will hold a final meeting for its members on
Feb. 12, 2007, at 10:00 a.m.

During the meeting, the members will receive the report of
Liquidator Robyn Beverley McKern regarding the company's wind-up
proceedings and property disposal exercises.

The Liquidator can be reached at:

         Robyn Beverley Mckern
         McGrathNicol+Partners
         Level 8, IBM Centre, 60 City Road
         Southbank, Victoria 3006
         Australia
         Telephone:(03) 9038 3137
         Website: http://www.mcgrathnicol.com

                    About Taha Superannuation

Taha Superannuation (No 3) Pty Ltd is an investor relation
company.

The company is located in New South Wales, Australia.


TAHA WAGERING: Liquidator to Present Wind-Up Report on Feb. 12
--------------------------------------------------------------
A final meeting of the members of Taha Wagering Systems Pty Ltd,
which is in voluntary liquidation, will be held on Feb. 12,
2007, at 10:00 a.m.

At the meeting, Liquidator Robyn Beverley McKern will present a
report regarding the company's wind-up proceedings and property
disposal activities.

The Liquidator can be reached at:

         Robyn Beverley Mckern
         McGrathNicol+Partners
         Level 8, IBM Centre, 60 City Road
         Southbank, Victoria 3006
         Australia
         Telephone:(03) 9038 3137
         Website: http://www.mcgrathnicol.com

                       About Taha Wagering

Taha Wagering Systems Pty Ltd provides amusement and recreation
services.

The company is located in Victoria, Australia.


TEEMORE PTY: Members Opt to Wind Up Firm
----------------------------------------
The members of Teemore Pty Ltd met on Dec. 13, 2006, and
resolved to voluntarily wind up the company's operations.

Accordingly, Mark Pearce was appointed as liquidator.

The Liquidator can be reached at:

         Mark Pearce
         Pearce & Heers
         Insolvency Accountants
         Level 8, 410 Queen Street
         Brisbane       
         Australia
         Telephone:(07) 3221 0055
         Facsimile:(07) 3221 8885

                        About Teemore Pty

Teemore Pty Ltd operates automotive repair shops.

The company is located in Queensland, Australia.


TULSA PTY: To Declare Final Dividend for Priority Creditors
-----------------------------------------------------------
Tulsa Pty Ltd -- formerly trading as Pandora Panetteria -- will
declare a first and final dividend for its priority creditors on
Jan. 31, 2007.

Creditors who were unable to prove their debts by Jan. 17, 2007,
are excluded from sharing in the dividend distribution.

The joint and several liquidators can be reached at:

         Terry Grant Van Der Velde
         David Michael Stimpson
         SV Partners
         SV House, 138 Mary Street
         Brisbane, Queensland 4000
         Australia

                         About Tulsa Pty

Tulsa Pty Ltd makes bread and other bakery products, except
cookies, and crackers.

The company is located in Queensland, Australia.


WATSON DINNISON: To Declare First and Final Dividend on Feb. 7
--------------------------------------------------------------
Watson Dinnison Pty Ltd will declare a first and final dividend
for its creditors on Feb. 7, 2007.  Failure to submit proofs of
debt by that day, will exclude a creditor from sharing in the
distribution.

As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Oct. 11, 2006.

The liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia

                     About Watson Dinnison

Watson Dinnison Pty Ltd operates paperboard mills.

The company is located in Victoria, Australia.


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

ALFRED KEYNES: Court Sets Wind-Up Hearing for January 31
--------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Alfred Keynes International Property Consultants Ltd on Jan. 31,
2007, at 9:30 a.m.

Chan Tung Leong filed the petition with the Court on Oct. 20,
2006.

Chan Tung Leong's solicitors can be reached at:

         K.F. Chan & Co.
         Room 1209, Nan Fung Tower
         173 Des Voeux Road, Central
         Hong Kong

                       About Alfred Keynes

Alfred Keynes International -- http://www.akiproperties.com/--  
provides a full range of property services, which includes
international real estate consultants, surveying & valuation,
building consultancy and property management.

The company is located in Wanchai, Hong Kong.


CONIC CARPET: Members to Receive Liquidator's Report on Feb. 28
---------------------------------------------------------------
The members of Conic Carpet Ltd will meet on Feb. 28, 2007, at
4:00 p.m., to receive the report of Yeung Chi Wai, the appointed
liquidator, regarding the company's wind-up proceedings and
property disposal exercises.

As reported by the Troubled Company Reporter - Asia Pacific,
Mr. Yeung was appointed as the company's liquidator on May 6,
2006.

The Liquidator can be reached at:

         Yeung Chi Wai
         Rooms 301-2
         Lucky Building
         39 Wellington Street
         Central, Hong Kong


DANA CORP: Has Until September 3 to File Restructuring Plan
-----------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York extended Dana Corp. and its
debtor-affiliates' exclusive periods to:

   -- propose a plan of reorganization through and including
      Sept. 3, 2007; and

   -- solicit acceptances of that plan through and including
      Nov. 2, 2007.

The Official Committee of Unsecured Creditors did not object to
the Debtors' request to extend their exclusive periods although
it noted that the extension is unusually long.

The Creditors Committee said it has taken comfort in the fact
that the Debtors have prepared and submitted to the Committee a
list of numerous milestones they intend to meet to timely emerge
from Chapter 11 in the third quarter of 2007.

The Creditors Committee noted, however, that the Debtors'
ability to meet certain internally generated deadlines is not
necessarily dispositive of their ability to confirm a Chapter 11
plan that maximizes creditor recoveries.  The Creditors
Committee said that if it determines, for any reason, that cause
exists to terminate exclusivity, it reserves its right to bring
a motion to terminate exclusivity.

                        About Dana Corp.

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

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

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

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

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.

(Dana Corporation Bankruptcy News, Issue No. 29; Bankruptcy
Creditors' Service Inc., (http://bankrupt.com/newsstand/or  
215/945-7000).

Following Dana Corporation's announcement that it has filed for
Chapter 11 bankruptcy court protection and defaulted on its debt
agreements, Fitch downgraded Dana's issuer default rating to 'D'
from 'C'.

Fitch also affirms and removes from Rating Watch Negative the
'CC' rating and 'RR4' recovery rating on Dana's unsecured notes.  
These ratings will be withdrawn in 30 days.  The 'B-' rating on
the pre-petition senior secured facility and the recovery rating
of 'RR1' are being withdrawn, as the facility is expected to
achieve full recovery through the establishment of US$1.45
billion in debtor-in-possession facilities.

Moody's Investors Service assigned B3 ratings to the US$1.45
billion debtor-in-possession financing of Dana Corporation as a
Debtor-in-Possession.  The DIP financing consists of a US$750
million super priority senior secured asset based revolving
credit and a US$700 million super priority senior secured term
loan B.


DANA CORP: Court Sets Feb. 8 Bidding Deadline for Engine Biz
------------------------------------------------------------
Dana Corp. and its debtor-affiliates revised their bidding
protocol, proposed order for bidding procedures, and notice of
sale and solicitation bids for the sale of their Engine Products
Business to include the Official Committee of Unsecured
Creditors, the Official Committee of Equity Security Holders,
the Official Committee of Non-Union Retirees and the Unions as
recipients of the submitted "Qualifying Bids."

The revised bidding protocol includes the Committees and the
Unions in the selection process of the best and highest bidder.  
Professionals representing the Retiree Committee and the Unions
will also be allowed to attend the Auction.

The revised bidding protocol also provides that it does not
prejudice any party's rights under the Promec Shareholders'
Agreement.  The Debtors will notify Condumex of any proposed
purchase of their share in Promec in accordance with the
requirements of the Shareholders' Agreement.  The revised
bidding protocol does not impair Condumex's right to object to
any transfer of the Debtors' interest in Promec or their
interest in the Technical Assistance and Trademark License
Agreement.

Furthermore, the revised bidding protocol provides that the
obligations to pay the Break-up Fee and the Expense
Reimbursement will be superpriority administrative expense
claims in the Debtors' bankruptcy cases, senior to all other
superpriority administrative expense claims other than those
arising under the Debtors' postpetition financing or claims
falling within the carve-out under that facility.

In the Revised Bidding Protocol, the Debtors included members of
the Muskegon, Caldwell and Churubusco CBAs in the service list.

A full-text copy of the revised bidding protocol is available
for free at:

              http://ResearchArchives.com/t/s?1819

                            Court Order

The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York approves the bidding
procedures, as revised, to govern the auction for the sale of
the Debtors' Engine Products Business.

All Qualified Bids must be submitted on Feb. 8, 2007.

If more than one Qualifying Bid is received, an auction will be
held on Feb. 12, 2007.

If no other Bid is received, the Court will conduct a hearing to
consider the sale of the Engine Products Business to MAHLE on
Feb. 14, 2007.

             Objections to Original Bidding Procedures

1. UAW and USW

The International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America, and the United Steel,
Paper and Forestry, Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers International Union pointed out
that the terms in the asset purchase agreement with MAHLE GmbH
is contrary to the terms of the collective bargaining agreements
covering the Muskegon, Michigan, and Caldwell, Ohio, union
employees.

Babette A. Ceccotti, Esq., at Cohen, Weiss and Simon, LLP, in
New York, noted the APA provides that the assumed liability will
be limited to liabilities relating to post-retirement welfare
benefit plan coverage for Union Transferred Employees and any
member of the Muskegon and Caldwell CBAs who retired with
eligibility in the CBAs' post-retirement welfare benefits.

The Debtors and MAHLE, however, have not requested nor held any
negotiation sessions with the Unions to discuss any changes to
the Caldwell and Muskegon CBAs.  Thus, Ms. Ceccotti said, it is
unclear what effect the sale of the Acquired Assets will have on
the Union-represented employees and retirees.

The Unions further pointed out that the bidding procedures for
the sale of the Engine Products Business do not contain enough
procedural protections to provide them with sufficient time to
bargain with the Debtors over the effects of the sale and to
bargain with MAHLE or the ultimate purchaser.

To ensure that the sale process fully preserves jobs and retiree
benefits, the Unions suggested that the bidding procedures
provide:

   (a) for them to receive notice of all competing bids,
       including contact information, so that they can discuss
       the bidder's intentions regarding future employment and
       benefits;

   (b) that all competing bidders and MAHLE are given copies of
       all of the CBAs;

   (c) them with a copy of a marked-up APA submitted by any
       bidder;

   (d) that they have the right to attend the Auction; and

   (e) that they reserve the right to object to, and submit
       additional arguments against any subsequent motions for
an
       order authorizing the Debtors' sale of assets or for an
       order pursuant to Sections 1113 or 1114 of the Bankruptcy
       Code.

2. Condumex

Grupo Condumex, S.A. de C.V., noted that the proposed bidding
procedures purport to include the acquisition of the Debtors'
interests in Promotora de Industrias Mecanicas S.A. de C.V., a
joint venture among Dana Corporation, Sealed Power Technologies
Corporation of Nevada, and Condumex.

Jim L. Flegle, Esq., at Loewinsohn & Flegle, LLP, in Dallas,
Texas, told the Court that pursuant to a Shareholders'
Agreement, dated Aug. 21, 2000, Condumex has right to first
refusal on any transfer of the Debtors' shares in Promec.  From
the documents provided by the Debtors to Condumex, Mr. Flegle
notes that it seems the Debtors, MAHLE or any other potential
buyer may have the right to refuse to purchase the Promec
shares, with little or no notice given to Condumex.

Thus, Condumex objects to the Bidding Procedures to the extent:

   (1) it adversely affects any of its rights relating to
Promec,
       including but not limited to its Right of First Refusal
       and the rights of any party pursuant to the Technical
       Assistance and Trademark License Agreement;

   (2) the bidding procedures and the proposed sale would be
free
       and clear of the Promec Power Rights; and

   (3) it does not provide an adequate opportunity to review the
       relevant documents and schedules, and to the extent that
       the proposed procedures would allow the Debtors, MAHLE,
or
       a third-party purchaser to change the terms of the
       purchase without adequate notice to Condumex.

Accordingly, Condumex asked the Court to deny approval of the
proposed bidding procedures.

Condumex wanted the Bidding Procedures and transactions to
require any prospective purchaser to comply with and be bound by
the Promec Rights.

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

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

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

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

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.

(Dana Corporation Bankruptcy News, Issue No. 29; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000).

Following Dana Corporation's announcement that it has filed for
Chapter 11 bankruptcy court protection and defaulted on its debt
agreements, Fitch downgraded Dana's issuer default rating to 'D'
from 'C'.

Fitch also affirms and removes from Rating Watch Negative the
'CC' rating and 'RR4' recovery rating on Dana's unsecured notes.  
These ratings will be withdrawn in 30 days.  The 'B-' rating on
the pre-petition senior secured facility and the recovery rating
of 'RR1' are being withdrawn, as the facility is expected to
achieve full recovery through the establishment of US$1.45
billion in debtor-in-possession facilities.

Moody's Investors Service assigned B3 ratings to the US$1.45
billion debtor-in-possession financing of Dana Corporation as a
Debtor-in-Possession.  The DIP financing consists of a US$750
million super priority senior secured asset based revolving
credit and a US$700 million super priority senior secured term
loan B.


DANA CORP: Wants to Implement Sypris' Parts' Re-Sourcing Program
----------------------------------------------------------------
Dana Corp. and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the Southern District of New York to
take all actions necessary to implement a re-sourcing program of
parts supplied by Sypris Technologies Inc.

The Debtors' production of certain component parts, including
finished axle shafts, ring gears and pinions, depends on their
ability to obtain at competitive costs certain critical
component subparts for certain of the Parts.

The Debtors receive their main supply of these Parts from Sypris
Technologies Inc. under a series of long-term executory
contracts.  Since their bankruptcy filing, the Debtors have
purchased, on the average, US$3,900,000 in Parts every week from
Sypris.  The pricing for most of the Parts under the Supply
Contracts is now at a significant premium above what the Debtors
believe they could obtain in the market, Corinne Ball, Esq., at
Jones Day, in New York, says.

Moreover, the Supply Contracts have been subject to substantial
disputes and litigation since before their bankruptcy filing,
Ms. Ball adds.  The disputes have arisen from and involved:

   (a) the Temporary Payment Assurances Agreement, dated
       December 15, 2005, between Sypris and the Debtors, under
       which Sypris obtained favorable adjustments to the
       Debtors' payment terms;

   (b) Sypris' later assertion that the Debtors have defaulted
       under the TPAA, from which Sypris obtained a further
       favorable adjustment of the Debtors' credit terms;

   (c) the near shutdown of key Dana operations a day before
       their bankruptcy filing, when Sypris advised the Debtors
       that it intended to halt its daily "just in time"
       shipments of Parts unless and until the Debtors agreed to
       eliminate credit terms entirely and go into "cash-in-
       advance" payment terms;

   (d) Sypris' April 27, 2006, Notice of Recoupment Rights and
       Lift Stay Motion, which sought to implement various
       setoffs and recoupments that the Debtors disputed; and

   (e) Sypris' disagreements with the Debtors over issues
       related to the purchase of materials to be used in the
       production of Parts in Morganton, North Carolina.

In May 2006, the Debtors entered into a Settlement Agreement
with Sypris, which afforded them continued supply of Parts from
Sypris without the immediate threat of additional litigation.  
Sypris also benefited from the Settlement Agreement in terms of,
among other things, the immediate payment of US$9,200,000 as
partial satisfaction of its administrative claim and a right to
apply setoff in satisfaction of its claims for certain
prepetition purchase debts after reconciliation.

One key element of the Settlement Agreement is the requirement
that most ongoing and future contract disputes between the
parties be submitted to binding arbitration.  Accordingly, in
June 2006, the parties began a multi-phase arbitration
proceeding.  

In December 2006, the parties received the Final Award of
Arbitrator Relating to the Pricing and Sourcing of Gear Sets,
resolving some, but not all, of the disputes between the parties
concerning the relevant terms of the Supply Contracts.  
Remaining disputes still need to be resolved through subsequent
phases of the Arbitration, Ms. Ball says.

According to Ms. Ball, despite the Settlement Agreement and the
Arbitration, the Debtors have confronted and continue to
confront a variety of challenges with respect to Sypris,
including:

   -- the economic burden of paying above-market prices for
      Sypris' Parts, which the Debtors estimate could cost them
      approximately US$115,000,000 in the aggregate during the
      remaining term of the Supply Contracts;

   -- the costs and burdens to the Debtors of the Arbitration
      and the many pre-Arbitration disputes and court
      proceedings involving Sypris and the Supply Contracts;

   -- the uncertainties for the Debtors of the outcome of future
      phases of the Arbitration and of Sypris' claims for
      damages;

   -- the intensity of the discussions with Sypris and the
      practical bearing of the difficult relationship of the
      parties on the remaining term of the Supply Contracts;

   -- the Debtors' inability thus far to reach a consensus with
      Sypris; and

   -- the eventual obligation of the Debtors to assume or reject
      the Supply Contracts.

In light of these challenges, the Debtors have been compelled to
explore the availability of alternatives to Sypris.  For several
months now, the Debtors have been conducting due diligence and
analysis of several alternative suppliers and market pricing for
the Parts, Ms. Ball informs the Court.  

The Debtors' investigation has confirmed that Alternative
Suppliers are willing to supply many of the Parts at pricing
that is significantly more favorable than that contained in the
Sypris Supply Contracts.

Accordingly, the Debtors wish to embark on a staged program to
evaluate those alternatives more fully and ultimately secure
them if they are determined, in the Debtors' business judgment,
to be reliable and preferable, Ms. Ball tells Judge Lifland.

                      The Re-Sourcing Program

The Debtors have classified purchase orders into three
categories:

   1. Tooling P.O.'s -- Initial purchase orders with certain
      Alternative Suppliers for the creation of "production
      intent" tooling and equipment needed to produce the Parts.

   2. PPAP P.O.'s -- Corresponding purchase orders for limited,
      test quantities of the Parts, to be subjected to the Part
      Production Approval Process.

   3. Requirements P.O.'s -- Subject to successful Tooling and
      PPAP, purchase orders for supply of the Debtors'
      requirements for the Parts.

The Debtors have designed three Stages for the Re-Sourcing
Program:

A. Stage One focuses on large-steer axle beams, axle shafts,
   machining of drive-axle differential cases, and full-float
   axle-tube assemblies.

   With respect to each of the Stage One Parts, the Debtors
   propose that they promptly will enter into Tooling P.O.s and
   PPAP P.O.'s with certain Alternative Suppliers whom they
   already have identified.  In developing the Re-Sourcing
   Program, the Debtors have conducted specific and material,
   though preliminary and non-committal, discussions with the
   list of Alternative Suppliers.

   The Debtors' maximum estimated expenditure under the Stage
   One Tooling P.O.'s and PPAP P.O.s is US$4,900,000, which the
   Debtors plan to pay over time as progress installments, per
   schedules to be negotiated in the Tooling P.O.s and PPAP
   P.O.'s.  Extrapolating from the volumes of the past 12
   months, the Debtors project that they can achieve net annual
   savings of approximately US$6,700,000, as a result of using
   Alternative Suppliers for the Stage One Parts.

B. In Stage Two, the Debtors propose to re-source:

      * ring forgings for approximately US$577,000 and a lead
        time of approximately 44 weeks;

      * pinion forgings for approximately US$190,500 and a lead
        time of approximately 40 weeks;

      * input shaft forgings for approximately US$29,400 and a
        lead time of approximately 20 weeks;

      * king pins for no material Capital Expense and a lead
        time of approximately only 12 weeks;

      * steer arms for approximately US$250,000 and a lead time
        of approximately 44 weeks;

      * tie rod arms for approximately US$250,000 and a lead
        time of approximately 44 weeks; and

      * full-float axle tube assembles not re-sourced in Stage
        One, at a Capital Expense of approximately US$1,703,000
        and a lead time of approximately 48 weeks.

C. In Stage Three, the Debtors propose to re-source:

      * helical gear forgings for approximately US$144,200 and a
        lead time of approximately 28 weeks;

      * precision forgings for approximately US$30,000 and a
        lead time of approximately 15 weeks;

      * forging and machined knuckles for approximately
        US$600,000 and a lead time of approximately 30 weeks;
        and

      * carriers and caps for approximately US$970,000 and a
        lead time of approximately 24 weeks.

Stage One will lay the foundation for obtaining 50% of the
Debtors' axle shaft requirements from certain Alternative
Suppliers.  The remaining 50% will be re-sourced from a separate
Alternative Supplier, who has indicated willingness to invest
approximately US$405,000,000 in equipment and a new machine shop
to produce the Parts to the Debtors.  To fund these investments,
the Alternative Supplier intends to seek project financing,
according to Ms. Ball.

The Debtors' current plan is to negotiate a long-term supply
contract with the Alternative Supplier, to be contingent on
their successful project financing and expansion of their
production facility, as well as upon successful Tooling and
PPAP.

The Debtors expect that lead time needed for the Alternative
Supplier's financing and expansion, as well as their PPAP, will
be extensive, including no fewer than 10 months for the Tooling.

To position the Debtors to receive a steady supply of Parts from
an Alternative Supplier by early 2008, Ms. Ball contends that
they would need to commence negotiations with an Alternative
Supplier no later than Feb. 1, 2007, if negotiations with Sypris
have not by then resulted in a mutually beneficial resolution of
the parties' disputes.

                          About Dana Corp.

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

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

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

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

The Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances to
that plan.

(Dana Corporation Bankruptcy News, Issue No. 29; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000).

Following Dana Corporation's announcement that it has filed for
Chapter 11 bankruptcy court protection and defaulted on its debt
agreements, Fitch downgraded Dana's issuer default rating to 'D'
from 'C'.

Fitch also affirms and removes from Rating Watch Negative the
'CC' rating and 'RR4' recovery rating on Dana's unsecured notes.  
These ratings will be withdrawn in 30 days.  The 'B-' rating on
the pre-petition senior secured facility and the recovery rating
of 'RR1' are being withdrawn, as the facility is expected to
achieve full recovery through the establishment of US$1.45
billion in debtor-in-possession facilities.

Moody's Investors Service assigned B3 ratings to the US$1.45
billion debtor-in-possession financing of Dana Corporation as a
Debtor-in-Possession.  The DIP financing consists of a US$750
million super priority senior secured asset based revolving
credit and a US$700 million super priority senior secured term
loan B.


GOLD LUCKY: Members Agree to Shut Down Business
-----------------------------------------------
The members of Gold Lucky Ltd met on Jan. 8, 2007, and passed a
special resolution to voluntarily wind up the company's
operations.

In this regard, Ng Kin Yung Tony was appointed as liquidator.

The Liquidator can be reached at:

         Ng Kin Yung, Tony
         805 Capitol Centre
         5-19 Jardine's Bazaar, Causeway Bay
         Hong Kong


HILLDUN LTD: Undergoes Voluntary Liquidation
--------------------------------------------
On Dec. 29, 2006, the members of Hilldun Ltd resolved to
voluntarily liquidate the company's business and appointed
Robert Michael James Atkinson and Antony Nigel Tyler as joint
and several liquidators.

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

The Joint and Several Liquidators can be reached at:

         Robert Michael James Atkinson
         Antony Nigel Tyler
         9/F, Central Tower
         Cathay City, 8 Scenic Road
         Lantau, Hong Kong


HONG KONG FUJIDENDKI: Members Opt to Wind Up Firm
-------------------------------------------------
On Jan. 9, 2007, the members of Hong Kong Fujidenki Co. Ltd
passed a special resolution 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

                   About Hong Kong Fujidenki

Hong Kong Fujidenki Co. Ltd --
http://www.szfujielectric.com.cn/fuji/hkeng/company/index.htm--
was established in March 1986.  It is a wholly owned subsibiary
of Fuji Electric Imaging Device Co., Ltd. in Japan.  Hong Kong
Fujidenki manufactures and markets photoconductive drums for the
copiers, printers, and fax machine industries.


HOPSON DEVELOPMENT: S&P Places BB+ Credit Rating on WatchNeg
------------------------------------------------------------
On Jan. 19, 2007, Standard & Poor's Ratings Services said that
it had placed its BB+ long-term corporate credit rating on
Hopson Development Holdings Ltd on CreditWatch with negative
implications.

This follows Hopson's recent issue of a zero coupon convertible
bond due 2010.  At the same time, Standard & Poor's also
assigned its BB+ issue rating to the convertible bond.  This
issue rating and the BB+ rating on the company's US$350 million
senior notes due 2012 were both placed on CreditWatch with
negative implications.
     
The CNY1,830.4 million -- about US$235 million -- issue is
denominated in Chinese renminbi but settled in U.S. dollars.  
The net proceeds from the issue will be used to fund property
developments and for potential land acquisitions.

"The CreditWatch placements reflect the possibility that
Hopson's debt leverage may be maintained at a high level for
longer than we previously expected," said Standard & Poor's
credit analyst Jacphanie Cheung.  "We view the convertible bond
as a debt-like instrument." It represents a 27% increase in the
company's total debt, which stood at HK$6.8 billion at the end
of June 2006.
     
Hopson's plan to use about RMB1.45 billion of the proceeds to
finance land acquisitions could result in higher capital
requirements for future development costs, while its accelerated
growth strategy could heighten execution risk.  Nevertheless, as
the bond has a zero coupon, it will not add any interest burden
and should provide some financial flexibility.
     
The CreditWatch placements are expected to be resolved after a
detailed review of Hopson's business plan and the potential
financial impact. Standard & Poor's will focus on the pace and
the magnitude of Hopson's expansion, and whether it is on track
to transform its previous business plan into cash flow.


JACUZZI BRANDS: Extends Solicitation Deadline Until February 6
--------------------------------------------------------------
Jacuzzi Brands Inc. has extended the expiration date of its
reported cash tender offer and consent solicitation with respect
to its 9-5/8% Senior Secured Notes due 2010.

As a result of the extension, the tender offer and consent
solicitation will now expire at 5:00 p.m., New York City time,
on Feb. 6, 2007, unless terminated or further extended.

Pursuant to the terms of the Offer to Purchase and Consent
Solicitation Statement of Jacuzzi, dated Dec. 4, 2006, as a
result of the extension of the tender offer for more than ten
business days from the scheduled expiration date of Jan. 22,
2007, the price determination date will be extended and the
total consideration for the Notes as described in the Statement
will be recalculated.  The Total Consideration for the Notes
will now be determined as of 10:00 a.m., New York City time, on
Jan. 23, 2007 unless otherwise extended.

As of 5:00 p.m., New York City time, on Jan. 9, 2007, Jacuzzi
had received tenders and consents for US$379,950,000 in
aggregate principal amount of the Notes, representing 99.99% of
the outstanding Notes.

The consummation of the tender offer is conditioned upon, among
other things:

    i) the consummation of the previously announced acquisition
       of Jacuzzi by affiliates of Apollo Management, L.P.; and

   ii) the receipt by affiliates of Apollo of US$985 million in
       new debt financing relating to the transactions and the
       availability of funds therefrom to pay the tender offer
       consideration described above.

If any of the conditions are not satisfied, Jacuzzi may
terminate the tender offer and return tendered Notes, may waive
unsatisfied conditions and accept for payment and purchase all
validly tendered Notes that are not validly withdrawn prior to
expiration, may extend the tender offer or may amend the tender
offer.

The complete terms and conditions of the tender offer and
consent solicitation are described in the Statement and the
related Consent and Letter of Transmittal, copies of which may
be obtained by contacting D.F. King & Co., Inc., the Information
Agent for the tender offer and consent solicitation, at (212)
269-5550 or (800) 859-8509.

Questions regarding the tender offer and consent solicitation
may be directed to the Dealer Manager and Solicitation Agent for
the tender offer and consent solicitation: Credit Suisse
Securities LLC, which may be contacted at (800) 820-1653 (toll-
free) or at (212) 538-0652.

Headquartered in West Palm Beach, Florida, Jacuzzi Brands, Inc.
-- http://www.jacuzzibrands.com/-- through its operating  
subsidiaries, is a global producer of branded bath and plumbing
products for the residential, commercial and institutional
markets. The company's Bath Products segment manufactures
whirlpool baths, spas, showers, sanitary ware, including sinks
and toilets, and bathtubs for the construction and remodeling
markets. Its Plumbing Products segment manufactures professional
grade drainage, water control, commercial brass and PEX piping
products for the commercial and institutional construction,
renovation and facilities maintenance markets. The products are
marketed through brand names, including JACUZZI, SUNDANCE, ZURN
and WILKINS, a Zurn company (WILKINS).

The company has an engineering and sourcing center in Zhuhai,
China.

The Troubled Company Reporter - Asia Pacific reported on
October 16, 2006, that Standard & Poor's Ratings Services placed
its ratings, including the 'B+' corporate credit rating, on
Jacuzzi Brands Inc. on CreditWatch with negative implications.


JING WEI: Final Meeting Slated for February 28
----------------------------------------------
The final meeting of the members and creditors of Jing Wei
Development Company Ltd will be held on Feb. 28, 2007, at 11:00
a.m., to consider the liquidator's account of the company's
wind-up proceedings.

According to the Troubled Company Reporter - Asia Pacific, the
company held a meeting for its creditors on March 22, 2005.

The liquidator can be reached at:

         Chow Cheuk Lap
         Room 201-3 & 205
         China Insurance Group Building
         141 Des Voeux Road, Central
         Hong Kong


MING KWONG: Members Decide to Close Business
--------------------------------------------
At an extraordinary general meeting held on Jan. 8, 2007, the
members of Ming Kwong Association Ltd decided to close its
business and appointed Lo Shui San Zue as liquidator.

The Liquidator can be reached at:

         Lo Shui Shan Zue
         7/F, Pearl Oriental Tower
         225 Nathan Road, Kowloon
         Hong Kong


MOSAIC CO: Expects to File Delinquent Form 10-Q by End of Jan.
--------------------------------------------------------------
The Mosaic Company has notified the Securities and Exchange
Commission that it was not able to file its quarterly report on
Form 10-Q for the fiscal quarter ended Nov. 30, 2006, on a
timely basis.  The 10-Q Report was due on Jan. 9, 2007.

The company says the delay in filing the 10-Q Report is because
of the implementation of its new enterprise resource planning
system in October 2006, which has necessitated additional time
to accurately complete its quarterly financial consolidation
process and to prepare the related information to be included in
the 10-Q Report.

In its notice to the SEC, Mosaic stated that, based on currently
available information, it believes that:

   -- net sales for the fiscal quarter ended Nov. 30, 2006, were
      slightly higher than net sales reported for the same
fiscal
      quarter in the prior year and net earnings for the fiscal
      quarter ended Nov. 30, 2006 are expected to be
      approximately equivalent to the net earnings reported for
      the same fiscal quarter in the prior year;

   -- operating earnings for its Phosphates and Potash business
      segments for the second quarter of fiscal 2007 will be
      materially lower than those reported for the same fiscal
      quarter in the prior year period, and an operating profit
      is expected to be reported in its Offshore segment
compared
      to an operating loss for the same prior year period;

   -- mosaic will report a large foreign currency transaction
      gain during the second quarter of fiscal 2007 due to the
      weakening of the Canadian dollar; and

   -- the effective tax rate for its second fiscal quarter will
      be materially lower than the tax rate in the second
quarter
      of fiscal 2006.

"We are working through start-up issues with a very complex,
tightly integrated commercial and financial system and our focus
is on accuracy," stated Larry Stranghoener, Mosaic's Executive
Vice President and Chief Financial Officer.  "Current business
conditions are good, with solid demand and improved pricing for
all three major nutrients, especially in North America.  We look
forward to a strong second half performance," Mr. Stranghoener
added.

Mosaic also noted that its earnings release to report interim
financial results for the fiscal quarter ended Nov. 30, 2006 has
also been delayed.  Mosaic stated that it is working to complete
the 10-Q Report as expeditiously as possible, and anticipates
that it will be filed by the end of January 2007.

                    About The Mosaic Company

Plymouth, Minn.-based Mosaic Company -- http://www.mosaicco.com/
-- is a producer of phosphate and potash combined, as well as
nitrogen and animal feed ingredients.  The company operates its
business through four business segments.  The Phosphates segment
operates mines and concentrates plants in Florida that produce
phosphate fertilizer and feed phosphate, and concentrates plants
in Louisiana that produce phosphate fertilizer.  The Potash
segment mines and processes potash in Canada and the United
States.  The Offshore segment consists of sales offices,
fertilizer blending and bagging facilities, port terminals and
warehouses in several countries, as well as production
facilities in Brazil, China and Argentina.  The Nitrogen segment
includes activities related to the North American distribution
of nitrogen products that are marketed for Saskferco Products
Inc. as well as nitrogen products purchased from third parties.

                         *     *     *

On December 12, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings affirmed and removed The
Mosaic Company from Rating Watch Evolving, where it was
originally placed on July 26, 2006.  Fitch has also assigned
ratings to new issues following the completion of Mosaic's
refinancing.

Fitch's rating actions affected around US$2.5 billion of
outstanding debt, including the undrawn US$450 million revolving
credit facility and US$1.06 billion of term debt.  The Rating
Outlook is Stable.

Fitch affirmed these ratings:

The Mosaic Company

   -- Issuer Default Rating at BB-; and
   -- Senior secured revolver rating at BB+.

Mosaic Global Holdings

   -- IDR at BB-;
   -- Senior unsecured notes at BB; and
   -- Senior unsecured notes and debentures at BB-.

Phosphate Acquisition Partnership LP

   -- IDR at BB-; and
   -- Senior secured note rating at BB-.

Fitch has withdrawn Mosaic Global Holdings senior secured term
loan rating at BB+.

Fitch has assigned:

The Mosaic Company

   -- Senior secured term loans rating BB+; and
   -- Senior unsecured notes rating BB.

Mosaic Colonsay ULC

   -- IDR BB-; and
   -- Senior secured term loan rating BB+.


OGC MANAGEMENT: Wind-Up Hearing Set on February 7
-------------------------------------------------
On Dec. 4, 2006, Cheung Kwok Choy Belly filed before the High
Court of Hong Kong a petition to wind up the operations of OGC
Management Services Ltd.

The petition will be heard on Feb. 7, 2007, at 9:30 a.m.

Cheung's solicitor can be reached at:

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


PROFIT CONTAINER: Creditors Must Prove Debts by February 28
-----------------------------------------------------------
Creditors of Profit Container Drayage Company Ltd are required
to submit their proofs of claim by Feb. 28, 2006.  

According to the Troubled Company Reporter - Asia Pacific, the
company was placed under voluntary wind up on Dec. 8, 2006, due
to its liabilities.

The liquidator can be reached at:

         Leung Shi Ho
         27/F Tung Wai Commercial Building
         111 Gloucester Road, Wanchai
         Hong Kong


QING XIN: Creditors' Proofs of Debt Due on February 12
------------------------------------------------------
The creditors of Qing Xin Chen Shi Company Ltd are required to
submit their proofs of debt by Feb. 12, 2007, to be included in
the company's distribution of dividend.

As reported by the Troubled Company Reporter - Asia Pacific, the
company was placed under liquidation on Dec. 20, 2006.

The joint and several liquidators can be reached at:

         Lee Kar Yum
         Tsang Hin Fai
         Rooms 1910-1913, 19th/F
         Hutchison House, Central
         Hong Kong


SMART MANNER: Members Pass Resolution to Wind Up Firm
-----------------------------------------------------
On Jan. 9, 2007, the members of Smart Manner Ltd passed a
special resolution to voluntarily wind up the company's
operations.

In this regard, Wong Chun Keung was appointed as liquidator and
was authorized to divide the company's assets.

The Liquidator can be reached at:

         Wong Chun Keung
         29/F, K. Wah Centre
         191 Java Road, North Point
         Hong Kong


TCL MULTIMEDIA: December 2006 TV Sales Down 19%
-----------------------------------------------
Television shipments from TCL Multimedia Technology fell 19% in
December 2006 as compared from the same period a year earlier,
The Standard notes.

In addition, domestic handset shipments from its sister computer
company TCL Communication Technology Holdings dropped 28% year
on year.

Based on TCL Corp's -- parent company of TCL Multimedia --
filing with the Shenzhen Stock Exchange, sales of color-TV sets
from TCL Multimedia in December plunged to two million from 2.4
million the previous year, while in November, sales declined 4%
compared with November 2005.

The Standard relates that its European unit has dragged down the
group's earnings.

As reported by the Troubled Company Reporter - Asia Pacific on
Oct. 24, 2006, TCL Corp returned to black as the group posted a
net profit of CNY31.02 million or US$3.93 million in the July-
September period, swinging from a CNY446.36-million loss in the
same quarter in 2005.  Sales, however, slipped to CNY11.25
billion in the third quarter of 2005 from CNY12.11 billion in
the third quarter of the previous year, largely because of a 14%
drop in total TV sales volume, operating profit on core business
climbed to CNY1.75 billion from CNY1.44 billion, the TCR-AP
noted.

Moreover, the TCR-AP added that restructuring its European unit
would cost about EUR45 million, covering provisions for
redundancies or retrenchment benefits for employees.

Meanwhile, sales of mobile phones by TCL Communication fell to
1.01 million units in December, down from 1.4 million the year
before.

The Standard also recounts that on Jan. 12, TCL Corp said in a
statement that the mainland stock- exchange regulators would
likely label the Shenzhen-traded shares "special treatment" as
it expects to report a second year of net losses.  If labeled
"special treatment," the shares would need to adhere to 5% daily
trading limits, instead of the usual 10%.

                          *     *     *

Headquartered in New Territories, Hong Kong, TCL Multimedia
Technology Holdings Limited -- http://www.tclhk.com/-- designs,  
manufactures and sells electronic products like colored TV, DVD
players, VCD players, home cinema hi-fi systems, mobile
handsets, Internet-related information technology products,
refrigerators and washing machines.  Its other activity includes
trading electronic parts and components used in the production
of color television sets.

                          *     *     *

On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific
reported that the company posted CNY763 million losses of TCL
Multimedia Technology Holdings Limited's European operations,
which caused losses of the TCL Corp. group to widen to CNY737.56
million.

Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is
expecting to post a loss for the full-year because first-half
losses had been so large.  In the first half of this year, TCL
reported a net loss of CNY737.56 million, after a loss of
CNY320.24 million for 2005.

TCR-AP recounts that in 2004, TCL acquired the TV unit of French
electronics firm Thomson, which uses the Thomson brand in Europe
and RCA in North America.  TCL grouped all its TV businesses
under TMT.


TRILEASE INTERNATIONAL: Joint Liquidators Cease to Act
------------------------------------------------------
On Jan. 2, 2007, Gabriel Chi Kok Tam and Edward Simon Middleton
ceased to act as joint and several liquidators of Trilease
International Ltd.

The Troubled Company Reporter - Asia Pacific previously reported
that Mr. Middleton presented the company's wind-up report during
the members' meeting held on that day.

The former Liquidators can be reached at:

         Gabriel Chi Kok Tam
         Edward Simon Middleton
         KPMG
         8/F Prince's Building
         10 Chater Road, Central
         Hong Kong

                  About Trilease International

Trilease International Limited -- http://www.14185.tradebig.com  
-- was incorporated in Hong Kong in January 1984.  The company
is engaged with cross-border leasing and other sophisticated
financial techniques used in Hong Kong and China.

The company is located in Causeway Bay, Hong Kong.


VOLKSWAGEN AG: Supervisory Board Restructures Management
--------------------------------------------------------
The Supervisory Board of Volkswagen AG unanimously agreed to the
restructuring of the Board of Management and the Group Executive
Committee put forward by Martin Winterkorn, chairman of the
board, on Jan. 11.

The Board decided to disband the Volkswagen and Audi brand
groups.

                       Board of Management

Wolfgang Bernhard, chairman of the board of management of the
Volkswagen brand and member of the board of management of
Volkswagen AG, will, by mutual consent, leave the company
effective Jan. 31, as a result of the reallocation of
responsibilities within the Volkswagen Group.

Dr. Winterkorn will take over the chairmanship of the Board of
Management of the VW brand in addition to his other tasks.

Dr. Winterkorn will also lead the Group Research and
Development, a new area of responsibility to be created.

Jochem Heizman will lead the Group Production, a new area of
responsibility, effective Feb. 1.  Dr. Heizmann was previously
responsible for production at the Audi brand.

The third new area of responsibility is Group Sales.  The holder
of this position will be decided at a later date.  The
responsibility for volumes, revenue and earnings remains fully
with the brands.

                   Other Management Changes

Stephan Gruehsem has been appointed the new Head of Group
Communications and, as a new member of the Group Management,
will be appointed General Representative of Volkswagen AG
effective Feb. 1.

The departments Group Investor Relations and Group External
Relations will be integrated into Group Communications.  Mr.
Gruehsem was previously Head of Corporate Communications at Audi
AG; he will initially be taking on the new responsibilities in
addition to his previously held post.

Ulrick Hackenberg has been appointed Member of the Board of
Management with responsibility for Development for the
Volkswagen brand with effect from Feb. 1.  He will be taking
over this position from Dr. Wolfgang Bernhard who previously
held this position.  Dr. Hackenberg was previously Head of
Concept Development, Body Development, Electronics and
Electrical Systems.

Werner Neubauer, previously General Representative of Volkswagen
AG, responsible for the Components Division, will be appointed
Member of the Board of Management of the Volkswagen brand with
responsibility for Components effective Feb. 1.

Headquartered in Wolfsburg, Germany, the Volkswagen Group --  
http://www.volkswagen.de/-- is one of the world's leading   
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Africa, and Asia,
including China, Volkswagen has more than 343,000 employees
producing over 21,500 vehicles or are involved in vehicle-
related services on every working day.

                        *    *    *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,  
and the overall situation in the important automotive markets  
remained difficult.  It also expected tougher competition in the  
Chinese and U.S. markets, and the rise in fuel prices to  
influence consumer confidence.


* Real Estate Developers not Materially Affected by New Taxes
-------------------------------------------------------------
Fitch Ratings said on January 19, 2007, that the credit profiles
of the larger mainland China-based property developers will not
be materially affected by the recent government announcement on
the collection of land appreciation taxes starting next month.

On January 16, 2007, the State Administration of Taxation issued
a notice giving out details on the calculations and relevant
deductions of the land appreciation tax.  "Given the tax was
first introduced in 1993 but has not been enforced properly, the
market views the notice and the resulting implementation of the
land appreciation tax to be another measure to curb the
residential property market," said Michael Wu, associate
director with Fitch's Corporate team.  The tax authorities will
determine capital gain on each project, as measured by the
difference between sales and cost of land and buildings.  The
property developers will be taxed on a project basis with tax
rates increasing from 30% to 60% in accordance with the size of
capital gains. If the capital gain is less than 16.7% of sales,
the land appreciation tax will be waived.

Fitch views that the land appreciation tax will hit the gross
margins of property developers directly. The agency estimates
that a typical property developer, with a gross margin of around
30% to 35%, is unlikely to suffer a 10 percentage point
reduction in its gross margin. In other words, if the tax is
enforced without concessions, and developers do not take any
remedial actions, typical gross margins will be reduced to
around 20% to 25%.  The impact will be higher on developers with
higher margins, given the progressive nature of the tax, though
these developers are likely to have stronger overall cash flows
to withstand the increased costs.

"Though the new initiative is an immediate negative factor to
developers, its impact is mitigated by various positive
macroeconomic factors," said Mr. Wu.  "The prospects for the
Chinese residential property market is still positive in the
medium-to-long term, as urbanization, availability of mortgage
finance and strong GDP growth will continue to provide strong
support to demand for housing units," Mr. Wu added.  The agency
also notes that the tax is targeted at developers, not buyers,
and so the impact on property demand should be limited.

However, speculators may choose to delay their property
purchasing decisions until they become more comfortable with the
longer-term regulatory environment.

From the supply side, some property developers may reallocate
their resources, increasing their focus on middle to low end
properties, which typically generate lower gross margins, and
therefore are subject to lower land appreciation tax rates.  
However, these efforts will be balanced against the developers'
reading of the market outlook for the various sub-segments,
their ability to re-prioritize projects, and any view that they
might have on the possible change or reversal of the new tax
regime.

Cash flows of developers with higher indirect costs, such as
sales and administration costs, which are excluded from the
computation of the value addition, are likely to be hurt the
most.  This supports Fitch's view that larger developers, which
typically have lower indirect costs and greater flexibility in
prioritizing projects due to economies of scale, will be less
affected by the new taxes.  It is possible that some of the
additional costs may be passed on to end users in the form of
higher property prices, given the strong demand.  What is
certain is that property developers need to focus on reducing
their indirect costs to preserve their bottom lines.


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

BRITISH AIRWAYS: T&G Union Favors Settlement Over Strike Action
---------------------------------------------------------------
The Transport & General Workers Union, representing 11,000 cabin
crew employees of British Airways Plc, is considering a
negotiated settlement with the airline as talks with top
management on Tuesday aimed at averting a possible strike action
failed to reach an agreement, Bloomberg News reports citing T&G
Deputy General Secretary Jack Dromey.

The airline intends to pursue more discussions with union
officials in an effort to find a peaceful outcome that would
protect the travel plans of its customers, a spokesman for
British Airways said in a statement.

BA Chief Executive Willie Walsh reiterated that there was "no
justification" for carrying out a strike action and insisted
that the proposed pension scheme was the best possible option,
BBC News relates.

The Wall Street Journal have reported that 96% of T&G union's
cabin crew members, who are employed at BA, voted in favor of a
strike action over the airline's proposed deal that would narrow
a GBP2.1-billion pension deficit.

According to The Journal, the airline failed to address the
grievances of the cabin crews with regards to the implementation
of sickness-absence policies, staffing levels in aircraft
cabins, and issues of pay and responsibility levels.

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

                          *     *     *

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


BRITISH AIRWAYS: GMB Union's Shop Stewards Reject Pension Offer
---------------------------------------------------------------
British Airways Plc is facing a potential strike action after
union leaders unanimously rejected the airline's proposed deal
that would cut a GBP2.1-billion pension deficit, Tracy Alloway
writes for Bloomberg News.

Rose Conrody, a spokeswoman for GMB union's shop stewards, told
Bloomberg that the proposal favored higher paid workers such as
pilots.

Some 4,500 members of the GMB union, who are employed at BA,
will vote on the pension scheme tomorrow and decide whether to
carry the industrial action.

                   Pilots Endorse Pension Deal

Meanwhile, the British Airline Pilots' Association (BALPA) had
unanimously endorsed the pension offer and is set to reveal
balloting results of its 3,000 members on Feb. 9, Reuters
relates.

"We are disappointed with the position taken by the GMB,"
British Airways said in a statement.  "We have just concluded 16
months of talks by accepting a collective proposal put forward
by the four trade unions."

                       Terms of the Scheme

As reported in the TCR-Europe on Jan. 11, under the proposals
there will be a normal retirement age of 65 with a contribution
rate of 5.25% and the ability for employees to pay a higher
pension contribution rate of 8.5% to retire at 60.  Staff can
still choose to retire earlier than the normal retirement age
but with are reduced pension.

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

Future pensionable pay rises will be capped to inflation and
pension growth in retirement remains at 5%.

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

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

The airline's annual contributions for the next ten years of
GBP280 million, up from GBP272 million in November last year,
will clear the remaining deficit.  The GBP8-million increase
represents the cost of improved contributions and keeping LPI at
5%.

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

GMB is the smallest union of the four trade unions that make up
the British Airways Forum.  The three other trade unions
comprising the BA Forum are BALPA, Amicus and Transport &
General Workers union.

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

                          *     *     *

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


BRITISH AIRWAYS: Reducing Fuel Surcharge on Longhaul Flights
------------------------------------------------------------
British Airways Plc is to reduce its fuel surcharge on its
shorter longhaul routes from Jan. 12 as a result of a fall in
the price of oil.

As a result, the fuel surcharge on tickets sold in the U.K. for
longhaul flights scheduled at under nine hours in duration will
be reduced from GBP35 per sector to GBP30 per sector (GBP60
return trip).

The fuel surcharge on longer-range services, will remain at
GBP35 per sector (GBP70 return trip) to reflect the higher fuel
consumption on these flights.

The shorthaul fuel surcharge will remain unchanged at GBP8 per
sector (GBP16 a return trip).

"The cost of oil has reduced in recent weeks and therefore we
believe that it is right that our customers benefit from lower
prices on shorter flights. Robert Boyle, British Airways'
commercial director, said.  

"Reducing the fuel surcharge on some of our longhaul flights
means that the amount customers pay better reflects the cost of
fuel to BA for their specific flight.

"Despite the recent drop in oil price, our fuel costs remain a
real burden.  It is our second largest cost after employee
costs," Mr. Boyle added.

The reduced fuel surcharge on certain longhaul flights will
apply to tickets issued from Jan. 12.

British Airways will also reduce its fuel surcharges by
equivalent levels in all markets.

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

                          *     *     *

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


GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally
-----------------------------------------------------------
General Motors Corp. sold 9.09 million cars and trucks around
the world in 2006, according to preliminary sales figures
released.  It marked the third time (2006, 2005, and 1978) the
world's largest automaker has sold more than 9 million vehicles
in a calendar year.

2006 global sales were down less than 1% from the 9.17 million
vehicles sold in 2005, reflecting a number of factors, including
planned cuts of 75,000 vehicles in daily rental fleet sales in
the United States and offsetting growth in other global markets.

"GM had some notable sales successes as we continued to expand
in key growth markets around the world in 2006," John
Middlebrook, GM vice president, Global Sales, Service and
Marketing Operations said.

"In 2006, we saw 18% growth in the Asia/Pacific region, and 17%
growth in the Latin America, Africa, and Middle East region.  
We're also seeing improving results in Europe where we sold more
than 2 million vehicles for the first time."

The expansion of GM's four global brands -- Chevrolet, HUMMER,
Saab, and Cadillac -- is showing concrete signs of success.

Global sales of GM's value brand, Chevrolet, were 4.3 million
vehicles compared with 2005 sales of 4.37 million.  Chevrolet
showed growth in all three regions outside North America, with
the strongest performance in the Latin America, Africa and the
Middle East region, with an additional 19% (144,000 vehicles)
delivered over the 2005 level.  Chevrolet also performed well in
the Asia/Pacific region, which also was up 19%.  There was a 15%
increase in Chevrolet sales in Europe, compared with 2005.  The
Chevrolet Aveo helped Chevrolet field a strong competitor in the
very competitive global small car market.

GM also retains its strong truck portfolio, evidenced by HUMMER
sales that grew nearly 34% globally in 2006, with 82,000
vehicles delivered, compared with 61,000 in 2005.  This
performance was paced by the continued strength of the midsize
H3.  While much of this growth was in the United States (up
26%), HUMMER also saw significant expansion in Mexico and
Canada.

Saab's 2006 global sales set a record at more than 133,000
vehicles.  Saab had its highest sales volume ever in Europe,
exceeding 90,000 vehicles and record sales in Spain, Belgium,
and Canada.

Cadillac posted a sales increase outside of North America last
year, thanks to 22% sales growth in Europe.

Global sales highlights include:

   * At 4.97 million vehicles, 2006 sales outside of the United
     States accounted for about 55% of GM's total global sales,
     growing at close to 7% compared with 2005, outpacing the
     industry average growth rate of 6%.  The industry has seen
     a 10 million vehicle increase in the global automotive
     market in the past five years, and the market now tops 67
     million.

   * In the Asia/Pacific region, GM sales of 1.26 million
     vehicles topped 1 million vehicles for the second
     consecutive year, and GM China saw more than 32% sales
     growth compared with 2005, outpacing the country's industry
     growth rate of 26%.  GM was the top-selling automaker in
     China in 2006, with 877,000 vehicles sold.  For the first
     time, GM sold more Buicks in China (304,000) than in the
     United States (241,000).

   * In the Latin America, Africa and Middle East region, GM
     sales reached an all-time record 1.03 million vehicles,
     exceeding 1 million vehicles for the first time, up 17% in
     volume compared with 2005.  Truck sales were up 21% and car
     sales were up 16%.  GM saw volume increases in 10 of 11
     major Latin America, Africa, and Middle East markets in
     2006.  GM do Brazil set an all-time domestic sales record
     with 410,000 vehicles delivered.

   * In Europe, GM sales -- for the first time -- exceeded
     2 million vehicles, up about 1%.  Growth in Eastern Europe,
     up 59%, led the increase.  Cadillac, Corvette, HUMMER,
     Saab, and Chevrolet set European sales records for their
     brands.  Chevrolet achieved record sales of more than
     340,000 vehicles, up 15%.  Saab sold more than
     90,000 vehicles, beating its previous European sales record
     of 82,000 sold in 2005.

Several of GM's regional brands also experienced notable growth
in 2006.

Opel and Vauxhall sold 1.6 million vehicles, growing share in
14 European markets.  The brands achieved segment leadership
with Meriva and Zafira -- in the monocab segment -- and second
position with Astra in the popular compact segment.

Saturn sales in the United States and Canada were up 5% compared
with 2005, largely on the popularity of the new 2007 Aura, Sky,
and Vue Green Line Hybrid.  Saturn expects stronger sales this
year as it continues the launch of the Outlook crossover and
welcomes the Ion small-car replacement, Astra.

GM Holden sold 147,000 vehicles in 2006 and the brand
strengthened its second-place position in Australia, as the
Commodore remained that country's best-selling car for the 11th
consecutive year.

As GM executes the North America turnaround plan, much media
attention has focused on the global sales horse races between GM
and its competitors.  "Being the largest car company in the
world can't be a focus, it has to be a by-product of giving
people in each market the vehicles they really want.  GM enjoys
that position today," Mr. Middlebrook said.  

"GM employees remain focused on delivering cars and trucks that
lead in design, quality and technology.  We believe our newest
products reflect that commitment.  But no one should question
our continued resolve to compete head-to-head with every
automaker."

                     About General Motors Corp.

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

                          *     *     *

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

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


KARNATAKA BANK: Board Allots 3,200 Shares
-----------------------------------------
Karnataka Bank Ltd's board of directors, at its meeting on
Jan. 5, 2007, allotted a total of 3,200 shares, the bank informs
the Bombay Stock Exchange.

The issuance is out of the entitlement kept in abeyance during
previous issues:

   Shares relating to bonus issue 2002:          400
   Shares relating to rights issue 2003:         400
   Shares relating to rights issue 2005:       2,400
                                               -----
                                               3,200

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

Fitch Ratings gave Karnataka Bank a support rating of 5.


KOTAK MAHINDRA: Schedules Board Meeting on January 22
-----------------------------------------------------
Kotak Mahindra Bank Ltd's board of directors will hold a meeting
to take on record the unaudited financial results of the bank
for the quarter ended Dec. 31, 2006.

The board meeting is set on Jan. 22, 2007.  On the same day, the
bank will also host a conference call.  The details of the
conference are:

   Time: 1700 IST
   Primary Access Toll Number: 91- 22 - 2781 3065
   Secondary Access Number: 91- 22 - 6776 3765

As previously reported in the Troubled Company Reporter - Asia
Pacific, Kotak Mahindra's consolidated profit after tax for the
quarter ended Sept. 30, 2006, was INR93.90 crore.

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial  
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra.


KOTAK MAHINDRA: Issues 65,602 Shares Under Equity Options Plan
--------------------------------------------------------------
Kotak Mahindra Bank Ltd's ESOP Allotment Committee allots 65,602
of the company's equity shares of INR10 each at a meeting on
Jan. 10, 2007.

The stock issuance was pursuant to the exercise of stock options
granted under the company's Equity Options Plan 2002-03:
   
   Plan Series 2002-03/03:   9,000 equity shares
   Plan Series 2002-03/05:  54,375 equity shares
   Plan Series 2002-03/06:   2,227 equity shares

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial  
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra.


NTPC LTD: Names K. B. Dubey as New Projects Director
----------------------------------------------------
NTPC Ltd informs the Bombay Stock Exchange that K. B. Dubey took
over the company's Director (Projects) post with effect from
Jan. 12, 2007.

A filing with the BSE also reveals that Mr. Dubey acquired,
through public offering, 3,180 shares of the company on Jan. 12.

Mr. Dubey, a mechanical engineering graduate from Pant Nagar
University, previously held the position of Executive Director,
(Corporate Monitoring) in NTPC, a post at the company's Web site
states.

Headquartered in New Delhi, India, NTPC Limited --
http://www.ntpc.co.in/-- formerly known as National Thermal  
Power Corporation Limited, is engaged in generation and sale of
bulk power.  It operates in two business segments: Generation
and Other business.  The company is also engaged in providing
consultancy, project management and supervision, oil and gas
exploration and coal mining.  NTPC Limited operates coal
stations and gas stations.

On February 2, 2005, Standard and Poor's Ratings Service gave
NTPC Ltd's long-term foreign issuer credit a BB+ rating.


ORIENTAL BANK: Board Meeting Set on January 24
----------------------------------------------
Oriental Bank of Commerce will hold a meeting on Jan. 24, 2007,
for the board of directors to consider and take on record the
bank's reviewed financial results.  Specifically, the board will
consider OBC's financial statements for the quarter and nine
months ended Dec. 31, 2006.

As previously reported by the Troubled Company Reporter - Asia
Pacific, OBC's net profit sharply rose by 51% to INR2.495
billion for the three months ended Sept. 30, 2006, from the
INR1.653 billion in the corresponding period last year.

Headquartered in New Delhi, India, Oriental Bank of Commerce --
http://www.obcindia.com/-- is a scheduled commercial bank.  The
company's domestic services include deposits, comprised of term
deposits, savings accounts, current accounts and the Suvidha
deposit scheme; advances, which consist of corporate advances, a
range of retail credit products and specialty schemes, and
government business, comprised of direct tax collection, pension
disbursement and savings bonds.  It also provides non-resident
Indian banking solutions, including non-resident external
accounts, non-resident ordinary accounts, foreign currency non-
resident accounts and resident foreign currency accounts.  It
also offers debit card services.  The bank also provides
treasury services and merchant banking services.  The bank has
introduced products and services, such as Anywhere Branch
Banking, Cash Management Service, Telebanking, automated teller
machines and Internet banking through select branches.  During
the fiscal year ended March 31, 2006, the Bank had a total of
1,148 branches.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Aug. 21, 2006, that Fitch Ratings assigned a long-term foreign
currency issuer default rating of BB+ to Oriental Bank of
Commerce.  The Bank's individual and support ratings have been
affirmed at C/D and 4, respectively.  The outlook on the ratings
is stable.


POWER FINANCE: Set to Offer Shares in IPO on January 31
-------------------------------------------------------
Power Finance Corporation Ltd is set to offer 11,73,16,700 of
its shares in an initial public offering on Jan. 31, 2007,
reports say.

The IPO, which the company previously saw by March 2007,
comprises a public issue of up to 114,816,700 equity shares and
a reservation of up to 2,500,000 shares for subscription by
employees.

According to the Business Standard, the shares will be offered
in the price band of INR73 to INR85 per share.  Hence, the
company expects to raise INR856 crore at the lower band and
INR997 crore at the upper band of the offer.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 26, 2006, the lead managers for the issue are ENAM
Financial Consultants Pvt Ltd, ICICI Securities Ltd and Kotak
Mahindra Capital Company.  Karvy Computershare Pvt Ltd is the
registrar for the issue.

The IPO will close on Feb. 6, 2006.

Power Finance Corporation Ltd http://www.pfcindia.com/is a   
financial institution in the power sector committed to the
integrated development of the power and associated sectors by
channeling the resources and providing financial, technological
and managerial services.  The company's products and services
include term loan, buyer's line of credit, loan to equipment
manufacturers, equipment leasing and consultancy services.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 28, 2005, Standard & Poor's Ratings Services gave Power
Finance a BB+ long-term foreign and local currency issuer credit
rating.  The outlook is stable.


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

ALCATEL-LUCENT: Vodafone Expands Wireless Service by AL Solution
----------------------------------------------------------------
Alcatel-Lucent said that mobile operator Vodafone Netherlands
has deployed a network-based Alcatel-Lucent enterprise solution
to enable Vodafone Netherlands to expand the capabilities of its
Wireless Office service.

The Alcatel-Lucent solution provides Vodafone Netherlands with
an opportunity that both addresses the demands of enterprises
and transforms the way employees communicate.  With this
network-based solution, Alcatel-Lucent offers enterprises an
alternative choice to meet their communications and business
needs.  Employees' benefit from mobility while having access to
their company communications resources, which can increase
productivity by eliminating the need to be in the office to
access fixed-line PBX or Centrex communications services.

In addition, Alcatel-Lucent is offering network integration
services, including design and engineering support, for the
enterprise solution being offered to Vodafone.

Vodafone's enhanced Wireless Office Service is a network-based
IP Centrex solution that enables business customers to use
mobile phones to access communications features that previously
would only have been available via fixed telephones in a
company's offices.  Features that Vodafone is initially making
available on mobile phones are extension dialing, hunt groups to
route a call to an available line, placing calls in queue,
conferencing, and call transfer.  In addition, the solution
comprises a receptionist switchboard for handling calls to a
company's prime number, geographical numbers (fixed numbers),
company numbers (088) and Call Management Software for easy call
management by end users.

"For business customers it's critical to be able to communicate
anywhere anytime.  Vodafone has acknowledged this and has
introduced its Wireless Office service, which provides the best
of both worlds: the functionality of fixed communications with
the flexibility of mobile communications," says Jeroen Hoencamp,
Director Enterprise Business Unit at Vodafone Netherlands.

"Vodafone's mobile plus strategic objective is to innovate and
deliver on customers total communications needs.  Alcatel-Lucent
has helped us establish the new service, which is a next step in
realizing our strategic objective for the enterprise market."

"There is a new business generation that demands services that
match their professional and personal lifestyles, and it is our
mission to help service providers meet these customers' needs,"
said Luc Defieuw, head of Alcatel-Lucent's activities in the
Benelux, Nordic and Baltic countries.  "Vodafone now is in a
unique position to offer its customers a full mobile solution
for company communications."

Alcatel-Lucent's mobile enterprise voice solution for Vodafone
includes the Alcatel-Lucent Feature Server, Alcatel-Lucent
Network Controller, Alcatel-Lucent Media Gateway, Alcatel-Lucent
Firewall Brick and Alcatel-Lucent VitalSuite(R) Performance
Management Software.

                   About Vodafone Libertel N.V

Vodafone is one of the largest mobile telecommunications
companies in the Netherlands and is part of the worldwide
Vodafone Group, the world's leading telecommunications company
for mobile telephony with over 191 million proportionate
customers on five continents.  The Vodafone Group has holdings
in the share capital of mobile operators in 26 countries and
collaborative arrangements with partner networks in 34
countries.

                      About Alcatel-Lucent

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

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

                          *     *     *

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

   -- Issuer Default Rating to BB from BBB-; and

   -- Senior unsecured debt to BB from BBB-.

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

The Rating Outlook for Alcatel-Lucent is Stable.

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

   -- Issuer Default Rating BB-;

   -- Senior unsecured debt BB-;

   -- Convertible subordinated debt B; and

   -- Convertible trust preferred securities B.

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

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

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

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

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


EXCELCOMINDO PRATAMA: Plans Bond Issue To Raise Capital
-------------------------------------------------------
PT Excelcomindo Pratama Tbk plans to raise IDR1.5 trillion by
issuing bonds in the second quarter of 2007, Business Times
reports.  The proceeds will help finance the company's capital
spending.

The Troubled Company Reporter - Asia Pacific reported on
Dec. 12, 2006, that Excelcomindo Pratama plans to raise as much
as US$400 million in debt in 2007 to expand its mobile phone
network in Indonesia.

Hasnul Suhaimi, Excelcom's president director, said in an
interview that the company's shareholders have approved to
obtain US$430 million loans, in which around a third of it, or
about IDR1.5 trillion, would be in bonds, Business News relates.

Excelcom plans to boost its capital spending in 2007 to
US$700 million from US$500 million in 2006, press reports note.
Excelcom plans to improve its mobile communication network
coverage by increasing the number of base transceiver stations
to between 10,000 and 11,000 from 7,200.

Moreover, the company, Mr. Suhaimi added, is aiming to increase
its subscriber base to 15 million in 2007 from 9.5 million last
year.

Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications  
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
(VoIP) services.  In addition, Excelcomindoprovides voice, data
and other value-added cellular telecommunications services.  Its
product lines include jempol, bebas and xplor.  The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
call centers.  Excelcomindo starter packs and voucher reloads
are also sold by independent retailers.

Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%.  TM and
its parent Khazanah together hold 73.7% in XL.

                          *     *     *

A May 23, 2006 report of the Troubled Company Reporter - Asia
Pacific stated that Moody's Investors Service has upgraded the
foreign currency senior unsecured bond rating of Excelcomindo
Finance Company B.V. to Ba3 from B1.  The outlook is stable.  At
the same time, Moody's has affirmed PT Excelcomindo Pratama's
Ba2 local currency corporate family rating.  The rating outlook
remains stable.

A subsequent TCR-AP report says that Fitch Ratings, on June 5,
2006, upgraded PT Excelcomindo Pratama's Long-term foreign
currency and local currency Issuer Default Ratings to 'BB-' from
'B+'.  The outlook on the ratings is stable.


GARUDA INDONESIA: 2006 Net Lost Narrows to IDR298 Billion
---------------------------------------------------------
PT Garuda Indonesia posted a narrower net loss for 2006, due to
reduced operating costs and improved efficiency, Reuters
reports.

Reuters cites Garuda President Director Emirsyah Satar as
telling reporters that the airline posted a net loss of
IDR298.3 billion last year, compared with a loss of
IDR688.5 billion in 2005.  He attributed this to the substantial
increase in the number of Garuda's routes that had become
profitable.

Mr. Satar said that overall, the airline's domestic operation
has improved significantly from 2005, but its international has
not recovered and that a lower number of travelers to the island
of Bali was a key factor.

Garuda's revenue fell 2% to IDR11.31 trillion due to the
appreciation of the rupiah during 2006, but in U.S. dollar
terms, sales have risen 3.2%, the report discloses.

Reuters says that for the January-November period, the number of
passengers traveling Garuda rose 5% year-on-year to 7.6 million,
but the company has not published full-year operational figures.

The Government has put Garuda on a list of 18 companies it plans
to privatize in 2007, as it tries to restructure the airline,
Reuters points out.

                         About Garuda

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

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

The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before, the report
discloses.

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

Reuters reported that Garuda's outstanding debt, mostly owed to
the ECA, fell to US$749 million as of November 2006 from
US$794.5 million by the end of 2005.


GENERAL NUTRITION: Posts 11.1% Growth in 2006 Same-Store Sales
--------------------------------------------------------------
General Nutrition Centers, Inc., the largest global specialty
retailer of nutritional supplements, said that its same store
sales result for the fourth quarter and full year of 2006.

Domestic same store sales for the fourth quarter of 2006
increased 6.5% for corporate stores and 2.8% for domestic
franchise stores.

Corporate same store sales include Internet sales, which added
1.8% to corporate same store sales growth.  For the year, same
store sales in domestic corporate stores increased 11.1%, while
same store sales in domestic franchise stores increased 5.7%.

Internet sales added 1.5% to corporate same store sales for the
entire year.  This is GNC's sixth consecutive quarter of
positive same stores sales growth.

"We have had a very successful year as a result of the
strategies we've initiated to solidify our position as a market
leader through rest-to-market products and innovative product
development resulting in successful new launches, as well as
diversified marketing efforts and improved promotional campaigns
driving new consumers to GNC," said President and Chief
Executive Officer Joseph Fortunato.  "Performance has been
strong across all of our major categories throughout the year.

Strength in our core business allows us to seek out new
opportunities for growth, while we continue to improve the
operations and strategies that are working now."

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

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

The Troubled Company Reporter reported on Nov. 8, 2006, that
Standard & Poor's Ratings Services placed ratings on General
Nutrition Centers Inc., including the 'B' corporate credit
rating, on CreditWatch with developing implications.

The Troubled Company Reporter - Asia Pacific reported on Nov. 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 US & Canadian Retail sector,
the rating agency confirmed its B2 Corporate Family Rating for
General Nutrition Centers.

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
   ----------           -------  -------  ------   ----------
   US$75MM Gtd. Sr.
   Sec. Revolver        B1       Ba2      LGD1     4%

   US$96.2MM Gtd. Sr.
   Sec. Term Loan B     B1       Ba2      LGD2     13%

   US$150MM 8.625% Gtd.
   Senior Notes         B3       B1       LGD3     40%

   US$215MM 8.5% Gtd.
   Sr. Sub. Notes       Caa1     Caa1     LGD5     81%


NUTRO PRODUCTS: More Than 100 Property Owners Sue Firm
------------------------------------------------------
San Diego attorney Michael Padilla filed a lawsuit against Nutro
Products Inc. on behalf of 107 owners of property around the pet
food factory, Daily Press says.

According to the report, the lawsuit asks the San Bernardino
County Superior Court to bar Nutro from emitting any noxious
odor and seeks unspecified damages for each plaintiff.

Mr. Padilla said that the disruption of the use and enjoyment of
the plaintiffs' property is compelling.  Moreover, property
owners are legally bound to disclose the noxious odor to
potential buyers, the report says.

Daily Press recounts that Mr. Padilla took the case after Leroy
Allen of Spring Valley Lake approached him.  Residents around
the factory and people living in Victorville have been
complaining about the smell to the local air quality district
and to the city of Victorville.

In July 2006, the Mojave Desert Air Quality Management District
ordered the company to come up with an odor abatement plan and
to obliterate all odors by March 30, 2007, Daily Press points
out.

The report relates that the company brought odor specialists and
also isolated odor sources and escape routes, but, as seasons
progressed, some residents could still smell the strong odor of
dog food.

The report relates that the company has one more tactic
remaining and that is to extend the factory's ventilation stack
with 108-foot chimney, with the goal of emitting odor at a
higher altitude.  Daily Press cites Plant Manager Allen Arias'
letter to the city clerk as indicating that the company has
received the go ahead from the Victorville Planning Commission.

Regarding the lawsuit, Mr. Arias said that he was disappointed
that it was filed before the deadline for complete odor
abatement, since they have been working aggressively and are
spending several millions of dollars to address odor issues from
the plant, the report posts.

In early December, the Spring Valley Lake homeowner's
association filed its own lawsuit to halt production at the
Nutro Products plant, Daily Press recounts.  The lawsuit also
seeks damages for the intrusion of noxious odors into the
community as well as the diminishing of property values there,
the report points out.

The report adds that the latest suit seeks both general damages,
which relate to a diminishing of the quality of life and cannot
be quantified, and specific damages, which can be measured in
real dollars.

Mr. Padilla clarified that the latest lawsuit is not a class-
action lawsuit because each plaintiff has been affected
differently, Daily Press notes.

Based in City of Industry, California, Nutro Products, Inc.
-- http://www.nutroproducts.com/-- formulates and manufactures  
dry and canned food, biscuits, and treats for dogs and cats.  
The company's brand names include Natural Choice, MAX, and
Gourmet Classics.  Its products are available in feed stores and
pet supply shops, such as Petco and PetSmart, across the US and
Canada.  Nutro's products are also distributed worldwide,
including Indonesia, Peru and Austria, among others.

The Troubled Company Reporter - Asia Pacific reported on
Oct. 18, 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. Consumer
Products sector, the rating agency confirmed its B2 Corporate
Family Rating for Nutro Products, Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100 million Sr.
   Secured Revolving
   Credit Facility
   Due Jan. 26, 2012      B1       Ba3     LGD2       29%

   US$470 million Sr.
   Sec. Term Loan
   Due July 26, 2013      B1       Ba3     LGD2       29%

   US$165 million Sr. Flt.
   Rt. Global Notes
   Due Oct. 15, 2013      B3       B3      LGD5       75%

   US$150 million 10.750%
   Sr. Sub. Global Notes
   Due April 15, 2014    Caa1     Caa1     LGD6       91%


PERUSAHAAN GAS: Supervisory Board Begins Probe on Shares Decline
----------------------------------------------------------------
The capital markets and financial institutions supervisory board
-- Bapepam-LK -- has begun investigating possible irregularities
that may be behind the sharp fall in the price of PT Perusahaan
Gas Negara (Persero) Tbk's shares, Antara News reports, citing
Bapepam-LK Chairman Fuad Rahmany.

Antara recounts that PGN shares slumped by 23.32% to close at
IDR7,400 after the company announced that it was postponing the
start of the commercial operation of its new gas pipeline
between South Sumatra and West Java.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 17, 2007, PGN decided to delay opening a key pipeline by
six months.  PGN President Sutikno had explained that the
company will delay until September the shipment of natural gas
through the pipeline from South Sumatra to western Java,
originally due to open in March.  A second link, scheduled to
begin operation last November, will start up in March, Mr.
Sutikno said.  He blamed the delay on problems related to buying
land along the route.

A subsequent TCR-AP report stated the shares in PGN were
suspended for one day after plunging more than a fifth, wiping
out US$1 billion off the firm's market capitalization, following
news of the pipeline delay.

Mr. Rahmany said that he had issued a letter of instruction to
undertake an investigation of the case, and both PGN management
and brokerage houses will be questioned over the matter.  Mr.
Rahmany also indicated that the management will be questioned
about whether there was negligence in complying with disclosure
requirements.

According to Reuters, Bapepam-LK's move follows a demand by the
minister in charge of state-owned enterprises, Sugiharto, to
investigate the PGN affair.

Bloomberg News reported last week that the Indonesian Government
had been gearing up for the investigation on PGN's management
and several foreign brokerages that sold the PGN shares.  
Bloomberg also noted that the Government had asked the Jakarta
Stock Exchange to head the probe and find out whether insider
trading took place.

Mr. Rahmany, when asked about the possibility of insider
trading, replied that the Board needed to investigate before
arriving at a conclusion.  Mr. Rahmany, Reuters says, declined
to identify the brokerage firms it will investigate.

Headquartered in Jakarta, Indonesia, PT Perusahaan Gas Negara
(Persero) Tbk -- http://www.pgn.co.id/-- is a gas and energy  
company that is comprised of two core businesses: distribution
and transmission.  For distribution, PGN signs long-term supply
agreements with upstream operators, which give the company
scheduled and reliable gas volumes and fixed gas prices.  These
volumes are subsequently sold to commercial and industrial
customers under gas sales agreements.  Under these agreements,
sales volumes are take-or-pay and the gas pricing is fixed and
in US dollar.  On the transmission business, PGN ships gas on
behalf of the upstream suppliers under a fixed US dollar tariff
with ship-or-pay volumes agreements.   The company is 59.4%
owned by the Government of Indonesia

The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service has affirmed the
Ba2 corporate family rating of PT Perusahaan Gas Negara
(Persero) Tbk.  At the same time, Moody's has affirmed the Ba3
debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed
by PGN.  The ratings outlook is stable.  This affirmation
followed the recent announcement of a delay in the South
Sumatera West Java gas commercialization.

The TCR-AP reported on Dec. 21, 2006, that Standard & Poor's
Ratings Services revised the outlook on Perusahaan Gas to
positive from stable.  The ratings on the company are affirmed
at 'B+'.

On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency
assigned these ratings to PT Perusahaan Gas Negara Tbk:

   -- Long-term foreign currency Issuer Default Rating 'BB-';

   -- Long-term local currency IDR 'BB-'; and

   -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due
      2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN
      and its subsidiaries 'BB-'.


TELKOM INDONESIA: Expands With Juniper Networks Routing Platform
----------------------------------------------------------------
Siemens and Juniper Networks, Inc., disclosed that PT
Telekomunikasi Indonesia Tbk, Indonesia's leading
telecommunications service provider, has further expanded its
IP/MPLS-based core infrastructure with additional Juniper
Networks M-series multi service routing platforms including the
M320.  The upgrade, performed by Siemens, builds on PT Telkom's
existing M-series routers, deployed last year as part of an
initial Next Generation Network rollout.  The new deployment
spans 17 cities, connecting soft switch systems and legacy
routers.

"After more than a year of intensive use, our earlier M-series
deployment has demonstrated the superiority and flexibility of
Juniper's JUNOS Operating System," said Mr. Abdul Haris, PT
Telkom's Director of Network and Solutions and the service
provider's Chief Technology Officer.  "We were also impressed by
the routers' traffic engineering capability, strict QoS
adherence even under extremely heavy load, and Juniper's high
availability features, such as fast reroute and in-service
upgrading.  We are confident to stay with Juniper and its
routing solutions for our long-term NGN strategy."

The M-series multi service routers are part of the Juniper
Networks family of best-of-class routing platforms, which also
include the market leading E-series Broadband Services Routers
and T-series next-generation core routers.  Juniper Networks E-,
M- and T-series routing platforms deliver industry-leading
levels of performance, reliability and scale to enable service
providers to deliver high-quality voice, video, data and other
advanced services over an IP/MPLS network with assured levels of
performance and security.  The T-series is the industry's most
proven core routing platform and, with the multi-chassis TX
Matrix technology, allows service providers to scale to multi-
terabit rates without the risks associated with new and unproven
technologies.

"Our M-series deployment at PT Telkom is a great example of the
benefits of migrating to a next generation IP/MPLS-based
infrastructure," said Adam Judd, vice president of Asia Pacific
for Juniper Networks. "Asia Pacific's need for capacity to
deliver advanced services - including VoIP, realtime video,
broadband access, and VPN services - continues to grow, and
service providers such as PT Telkom are leveraging Juniper's
industry leading platforms to address this demand and capture
new revenue opportunities."

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

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

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

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


VERITAS DGC: CGV Reveals Allocations of Merger Consideration
------------------------------------------------------------
Compagnie Generale de Geophysique-Veritas announced on Jan. 18,
2007, the final allocations of merger consideration in its
acquisition of Veritas DGC Inc.

In the transaction, stockholders of Veritas were offered a
choice of receiving CGV ADSs or cash for each of their shares,
subject to certain limitations.

Of the 40,420,483 shares of Veritas common stock outstanding as
of the merger, approximately:

   -- 33,004,041 of the shares, or 81,7%, had elected to receive
      cash,

   -- 5,788,701 of the shares, or 14,3%, had elected to receive
      CGG ADSs; and

   -- 1,627,741 of the shares, or 4.0%, did not make a valid
      election.

Stockholders electing cash will receive, on average, 0.9446 CGV
ADSs and US$45.32 in cash per share of Veritas common stock.  
Stockholders electing ADSs and stockholders making no valid
election will receive 2.0097 CGV ADSs per share of Veritas
common stock.

In aggregate, approximately US$1.5 billion and approximately
46.1 million shares of CGV ADSs will be paid to Veritas
stockholders as merger consideration.

                         About Veritas



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

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

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


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

JAPAN AIRLINES: Shares Rise After JPY60-Bil. Loan Announcement
--------------------------------------------------------------
Share prices in Japan Airlines jumped last week as investors bet
that restructuring steps including fresh funding and job cuts
could help achieve a recovery in the airline's operations and
finances, e-TravelBlackboard relates.

According to Bloomberg News, shares of Japan Airlines closed at
their highest in six months -- rising 5.1% to JPY247 at the
3 p.m. close on Jan. 15 in Tokyo -- after the carrier said it
plans to seek JPY60 billion (US$500 million) in loans by
March 31 to help pay debt.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 16, Japan Airlines said it will seek about JPY60 billion in
loans from Development Bank of Japan and other main lenders to
cover the redemption of convertible bonds.  Specifically, the
airline will use the funds to pay investors who ask for bonds to
be redeemed early.

Bloomberg recounts that Japan Airlines sold JPY100 billion of
eight-year convertible bonds in 2004.  Investors have the option
of asking the airline to redeem the bonds in cash or shares as
early as March.

Bloomberg says that the shares on Jan. 15 closed 44% below the
securities' conversion price of JPY440, increasing the
likelihood that investors will opt for cash.

There were also media reports on the airline's mid-term business
plan, which was said to include changes such as a 6% work force
cut, removing approximately 10 unprofitable domestic routes, and
the sale of group companies.

The TCR-AP reported on Jan. 17 that Japan Airlines intends to
sell part of its holdings in two subsidiaries -- Jalux Inc. and
Tokyo Humania Enterprise Inc. -- in its efforts to improve its
financial condition.

Moreover, an earlier TCR-AP report revealed that the airlines is
considering cutting some 3,000 jobs over the next two to three
years through an early retirement program.  As a first step,
Japan Airlines aims to cut more than 1,000 jobs through an early
retirement offering in the year to March 2008.

e-TravelBlackboard cites Okasan Securities analyst Yoshihisa
Miyamoto as commenting: "These reports on the mid-term business
plan came at the same time that investors were feeling the stock
price was bottoming out.  I don't know whether or not these
plans are true, but they show the company's eagerness to turn
profitable."

Mr. Miyamoto added, "We can't yet say the company's operations
have fully recovered. . . but its stock price will likely
reflect investors' views that the worst is over."

Mr. Miyamoto also revealed that the airline has to reduce its
debt and to deal with the slow demand from individual domestic
travelers.

There are reports that the airline will announce a new business
plan on February 6.

                       About Japan Airlines

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

                          *     *     *

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

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

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


NORTHWEST AIRLINES: Files Plan of Reorganization in New York
------------------------------------------------------------
Northwest Airlines Corporation and certain of its subsidiaries
have filed their joint Chapter 11 plan of reorganization with
the United States Bankruptcy Court for the Southern District of
New York.

The plan provides for the treatment of claims of creditors, the
implementation of agreements with key labor groups, lenders and
suppliers, as well as the raising of new equity capital for
Northwest.

"The filing of our plan of reorganization is a key milestone in
our ongoing restructuring efforts and begins Northwest's
emergence from Chapter 11 protection," Doug Steenland, Northwest
Airlines president and chief executive officer, said.

"Over the past 16 months, we have achieved the three key
objectives we set for our restructuring: we have removed
US$2.4 billion in annual costs from the business, we have
restructured our fleet and entered into new aircraft purchase
agreements, and we have significantly strengthened our balance
sheet.  We remain on track to report a pre-tax profit for the
full year 2006.

"By returning to profitability, we will enable our employees,
whose sacrifices have been essential to the successful
reorganization of Northwest, to share in its success.  For our
employees, a healthy Northwest will ensure a future of job
security, pension and retirement benefits, profit-sharing
payments and access to a valuable claim."

                     Restructuring Progress

Discussing the airline's restructuring milestones to date, Mr.
Steenland said, "We have moved through the bankruptcy process
quickly because of our success in addressing key cost and
revenue issues including labor costs and pensions, new
agreements with key suppliers, restructuring the Northwest
fleet, and substantially reducing debt.

"Key to our successful restructuring efforts to date are the
permanent labor savings agreements we have reached with the
International Association of Machinists and Aerospace Workers,
the Air Line Pilots Association, the Aircraft Mechanics
Fraternal Association, the Aircraft Technical Support
Association, the Transport Workers Union of America, and the
Northwest Airlines Meteorologists Association, which have helped
us realize the US$1.4 billion in annual labor savings we
required.

"Recognizing the importance of pensions to our employees, we
worked together over the past several years with our union
leadership and the Congress on a carefully crafted solution, the
Pension Protection Act, which has preserved pension benefits for
the 73,000 Northwest pension plan participants.  We have always
believed saving our pension plans was the right thing to do for
our valued employees, and despite the many obstacles we faced
along the way, we did not waver from this commitment.

"To ensure that Northwest has an efficient and comfortable
fleet, we reaffirmed purchase agreements with Airbus, Boeing, GE
Aircraft Engines and Pratt & Whitney that allow us to continue
to modernize our long-range fleet with A330 and 787 aircraft.  
We also negotiated additional purchase agreements with
Bombardier and Embraer for new, dual-class regional jetliners
that will improve our domestic product."

Discussing the airline's regional aircraft strategy, Mr.
Steenland said, "We have nearly completed agreements with our
three Airlink partners -- Pinnacle, Mesaba and Compass -- which
will be operating the regional aircraft that will provide
convenient connections to Northwest's global network through its
three domestic hubs.

"In addition, our operational costs were improved by reshaping
our maintenance organization, which resulted in greatly improved
economics while continuing Northwest's historic operational
reliability."

Speaking to the restructured balance sheet, Mr. Steenland said,
"We have completed a US$975 million refinancing of existing bank
obligations at more favorable terms while gaining access to
US$250 million in incremental liquidity.  Our new facility can
be converted to permanent exit financing, securing the debt
financing Northwest needs to emerge from Chapter 11 protection.

"The completion of this refinancing clearly demonstrated that
our key stakeholders in the capital markets recognized
Northwest's progress towards its restructuring goal of positive
cash flow and sustained profitability."

"Reversing US$4.2 billion in losses since early 2001 was not an
easy task, but one that was essential to the future of the
airline," Mr. Steenland added.  "Through our many restructuring
actions, we expect to report a significant year-over-year
improvement in pre-tax earnings from 2005 to 2006."

                       Terms of the Plan

* Creditors

The plan proposes to restructure Northwest's balance sheet
through the elimination of all pre-petition unsecured debt.  In
exchange for their claims, unsecured creditors will receive
common stock of the reorganized Northwest Airlines Corporation,
and the right to purchase additional common stock in a rights
offering.  Terms of a rights offering will be provided at a
later time.  Unsecured creditors whose claims are guaranteed by
certain other Northwest entities will receive an additional
distribution of common stock on their claims.

Because all unsecured creditor claims will not be satisfied in
full, the pre-petition equity holders' interests in Northwest's
common and preferred stock will be cancelled, and those holders
will not receive a distribution.

* Agreements

The plan will implement the favorably renegotiated aircraft
purchase agreements with Airbus, Boeing, Bombardier, GE Aircraft
Engines and Pratt & Whitney, and new aircraft purchase
agreements with Embraer and Bombardier.  The plan will adopt and
put in place the restructured lease and debt obligations for
Northwest's aircraft fleet and airports and other facilities.  
All of these agreements will provide substantial cost savings to
Northwest.

In addition, the plan provides for the assumption of the
company's ratified collective bargaining agreements with each of
its labor groups, except for its flight attendants.  Each labor
group with a ratified collective bargaining agreement has a
negotiated claim as part of that agreement.  The Association of
Flight Attendants does not have an approved claim because it
does not yet have a ratified collective bargaining agreement.  
Should the flight attendants enter into a ratified agreement
prior to Northwest finalizing its plan of reorganization, an
approved claim would also be available to them.

* Equity/Debt

As noted, he plan provides for the option to raise exit equity
financing via an equity rights offering.  The plan also
anticipates that Northwest may supplement the rights offering by
obtaining additional new equity capital from one or more private
equity investors.

Northwest will have the option to convert its existing debtor-
in-possession financing upon its emergence from bankruptcy into
an exit financing facility consisting of a $175 million
revolving credit facility and a US$1.05 billion term loan,
including a US$75 million letter of credit facility, each of
which has a maturity date of August 2013.  Northwest also may
elect to proceed with alternative exit financing if more
attractive terms than those under the existing facility can be
obtained.

* Timing

The bankruptcy court has granted Northwest an extension until
Feb. 15, 2007 to file a disclosure statement providing
additional information and detail regarding the plan.  After
approval by the court, Northwest will distribute the plan and
disclosure statement to its creditors and begin a period of
solicitation of creditors for acceptance of the plan.  Northwest
expects to emerge from Chapter 11 during the second quarter of
2007.

                    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.  


NORTHWEST AIRLINES: S&P Says Plan Filing Won't Affect Ratings
-------------------------------------------------------------
Northwest Airlines Corp. and its Northwest Airlines Inc.
subsidiary (both rated 'D') filed, on Jan. 12, 2007, a proposed
plan of reorganization, foreseeing a second-quarter 2007
emergence from bankruptcy.

"The development has no immediate impact on the companies'
corporate credit ratings, which are based on their bankruptcy
status," said Standard & Poor's credit analyst Philip Baggaley.
"Upon emergence from bankruptcy, we would assign new corporate
credit ratings."  Ratings on certain equipment trust
certificates remain on CreditWatch, excepting 'AAA' rated, bond-
insured certificates, which are not on CreditWatch.  Upon
emergence from bankruptcy, S&P would resolve the CreditWatch
review on affected securities.

The 'BBB-' bank loan rating, also not on CreditWatch, on
Northwest Airlines Inc.'s debtor-in-possession credit facility
is likewise unaffected.  That facility can convert to exit
financing upon the fulfillment of certain conditions and at
Northwest's option, at which time Standard & Poor's would re-
rate it.  The resulting bank loan rating is likely to be
substantially lower than the current rating on the debtor-in-
possession facility, as it would be notched up from Northwest's
new corporate credit rating based on recovery prospects in a
default scenario.

Northwest did not file a disclosure statement, and the proposed
plan of reorganization does not include many important details.  
The company received bankruptcy court permission to defer filing
those items until Feb. 15, 2007.  The company noted that the
plan provides for an option to raise equity through a rights
offering, and that Northwest may obtain additional equity
investment from private equity sources.  Because of this, the
company's capital structure upon emergence is not yet finalized,
and recovery for impaired classes of creditors, including
unsecured creditors, remains to be determined.  The airline has
not yet negotiated a contract with its flight attendants, who
are working under terms and conditions imposed by Northwest,
with the court's permission.  However, conclusion of a contract
is not a precondition to emerge from Chapter 11.

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.


PGMI INC: Announces Result of Annual Shareholder Meeting
--------------------------------------------------------
PGMI, Inc., held its first annual meeting of shareholders on
Jan. 18, 2007, in Honolulu, Hawaii.  The meeting was well
attended by shareholders from Japan, Hawaii and the U.S.
Mainland.  The business of the Company, as outlined in a recent
Proxy mailed to shareholders, was discussed and the votes of
those in attendance were tabulated and consolidated with proxy
votes already received.

The slate of directors proposed in the proxy was elected by a
majority with a quorum of all shareholders eligible to vote
either in attendance or represented by proxy.  The following
newly elected directors will serve until the next annual meeting
of shareholders in 2008:

   -- Shinichi Kanemoto currently serves as president and Chief
      Executive Officer of Marugin, positions he has held since
      1993.  Effective December 9, 2005, Mr. Kanemoto became the
      President, Chief Executive Officer and a director of PGMI,
      Inc.

   -- Eiichi Kanemoto currently serves as Executive Director of
      Marugin, a position he was appointed to in 1993.
      Effective December 9, 2005 he became Secretary and a
      member of the Board of Directors of PGMI, Inc.

   -- Mark Buck served as President, Chief Executive Officer and
      Chief Financial Officer of the Company from March 2002
      until December 9, 2005, and has been a member of the Board
      of Directors since March 2002.

   -- Brian Weiss has served as director of the Company since
      November 2006.  He has 13 years of experience in corporate
      finance, accounting, SEC reporting, restructuring, mergers
      and acquisitions.

   -- Akira Oyake has served as director of the Company since
      November 2006.  Mr. Oyake has over 33 years of experience
      in product sales and marketing.

The second item on the agenda was the proposal to ratify the
Board's appointment of McKennon, Wilson & Morgan LLP as the
Company's independent registered public accounting firm for the
fiscal year 2006.  The third item up for vote was the adoption
of the 2006 Stock Incentive Plan.  Both of these measures passed
by a majority with a quorum of all shareholders eligible to vote
either in attendance or represented by Proxy.

The fourth item on the schedule was the proposal to amend the
Articles of Incorporation to effect a Reverse Stock Split.  This
measure did not pass because a quorum of Common Shareholders
necessary for approval was not in attendance or represented by
proxies received.  The reverse stock split will not take effect
and the capital structure will remain unchanged.

Shinichi Kanemoto, the president of PGMI, Inc., addressed those
in attendance at the shareholders meeting and made the following
comments, "I would like to thank all of the Company's
shareholders, both those in attendance and those unable to
attend, for their support.  The Company has had a year of strong
growth adding its two largest stores bringing its current number
of operating locations to 15.  Plans call for the development of
two additional stores in the coming year.  This rapid growth
will help keep PGMI in the forefront of the evolving and
consolidating Pachinko industry.  In addition to its traditional
Pachinko gaming operation, the Company has expanded into the
Internet Cafe business, further demonstrating its commitment to
making its locations relevant to the life of modern Japan.  The
Company is also exploring the option of expanding operations
outside of Japan as a result of the growing interest in
Pachinko."

Also in attendance was PGMI shareholder Salevaa Atisanoe, the
high-profile retired sumo Yokozuna (grand champion) Konishiki.
He gave a first hand account of the place that Pachinko holds in
Japan when he said, "Pachinko stores are like community centers
in Japan where friends can get together to catch up.  The modern
stores carry many of the necessities of daily life and sought
after luxury goods.  For a large number of Japanese, the stores
are a regular stop in their daily lives.  When you travel across
Japan you will find that even the smallest town, too small to
even have a restaurant, will have Pachinko."

                       Going Concern Doubt

As reported in the Troubled Company Reporter on Oct. 10, 2006,
McKennon, Wilson & Morgan LLP expressed substantial about PGMI
Inc.'s ability to continue as a going concern after auditing the
Company's financial statements for the fiscal years ended June
30, 2006 and 2005.  The auditing firm pointed to the company's
losses, working capital deficiency at June 30, 2006, and
commitments to fund new store expansions.

                          About PGMI Inc.

PGMI Inc. provides pachinko gaming entertainment in Japan.  The
company traces its origin to its founder Gakushin Kanemoto's
pachinko business in 1951.  It later incorporated in Japan as
Marugin Co., Ltd in 1972.  The management team brings many
decades of experience in the pachinko industry to PGMI.  
Currently the company operates 13 locations in Japan.


SANYO ELECTRIC: Awards US$370-Mil. Polysilicon Contract to Hoku
---------------------------------------------------------------
Sanyo Electric Co. has awarded Hoku Scientific Inc., a maker of
fuel cell components, a seven-year contract that allows Hoku to
supply polysilicon to Sanyo, Bloomberg News reports.  The deal
is valued at as much as US$370 million.

Hoku Materials, a division of Kapolei, Hawaii-based Hoku
Scientific, will produce the polysilicon for use in solar-fuel
cells beginning in 2009, Bloomberg cites the company as saying
in a statement.  The agreement calls for Hoku to supply Sanyo
through December 2015.

The report notes that, according to Hoku, Sanyo will pay
US$2 million when the contract is signed and place about
US$111 million, or 30% of the total, in escrow.

Hoku will begin building a US$260 million plant to produce the
solar cells and will seek as much as half that amount in loans,
Bloomberg relates.

The report points out that Sanyo and Hoku each has the right to
terminate the agreement if Hoku cannot secure the financing,
Hoku's statement contains.

                      About Sanyo Electric

Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading   
manufacturers of consumer electronics products.  The company has
operations in Brazil, Germany, India, Ireland, Spain, the United
States and the United Kingdom, among others.

Sanyo, according to press reports, has struggled after an
earthquake damaged a key chip-making plant in 2004.  It has been
undergoing extensive restructuring, including job cuts and
alliances with companies to lower production costs.

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

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


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

ACTUANT CORP: Earns US$25.1 Mil. in First Quarter Ended Nov. 30
---------------------------------------------------------------
Actuant Corporation reported first quarter fiscal 2007 net
earnings of US$25.1 million, which compares favorably with net
earnings of US$21.3 million for the first quarter of fiscal
2006.

First quarter sales increased to US$343 million from US$284
million in the prior year, driven by strong base business growth
and approximately US$25 million of sales from acquired
businesses.

Excluding foreign currency exchange rate changes and sales from
acquired businesses, first quarter fiscal 2007 sales increased
approximately 9% from the comparable prior year period.  This
increase was driven by growth in all four reportable segments,
including strong growth in the Industrial and Actuation Systems
segments.

At Nov. 30, 2006, the company's balance sheet showed US$1.2
billion in total assets, US$845.8 million in total liabilities,
and US$397 million in total stockholders' equity.

Net debt was US$455 million, unchanged from the beginning of the
quarter.  Consistent with prior years, Actuant's first quarter
cash flow was impacted by seasonal trends including working
capital growth and employee incentive compensation payments for
the prior year.

Robert C. Arzbaecher, president and chief executive officer of
Actuant, commented, "Actuant is off to a solid start in fiscal
2007 with 9% core sales growth, which was slightly ahead of our
expectations.  Additionally, first quarter EPS increased
approximately 16% from last year, driven by higher sales and the
benefit of prior year acquisitions."

Mr. Arzbaecher continued, "We were especially pleased with the
performance of our Industrial segment, which generated strong
increases in both core sales and profit margins.  Our overall
profit margins were down year-over-year as a result of
unfavorable sales mix and lower Actuation System and Electrical
segment profitability.  Our previously announced European
Electrical restructuring activities continue on plan, although
there was limited financial impact this quarter."

He added, "We are also pleased with our acquisition progress,
both in integrating previously announced acquisitions and in
identifying new acquisition opportunities.  We've had success in
supplementing our core revenue growth with acquisitions, and
this combination has helped Actuant double its sales over the
last three years."

Full-text copies of the company's consolidated financial
statements for the quarter ended Nov. 30, 2006, are available
for free at http://researcharchives.com/t/s?1856

Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial  
company with operations in more than 30 countries, including
Australia, China, Hong Kong, India, Japan, Taiwan and South
Korea.  The Actuant businesses  are market leaders in highly
engineered position and motion  control systems and branded
hydraulic and electrical tools and  supplies.  Since its
creation through a spin-off in 2000, Actuant has grown its sales
from US$482 million to over US$1 billion and its market
capitalization from US$113 million to over US$1.5 billion.  The
company employs a workforce of approximately 6,000 worldwide.  
Actuant Corporation trades on the NYSE under the symbol ATU.

The Troubled Company Reporter - Asia Pacific reported on
Oct. 24, 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. manufacturing
sector, the rating agency affirmed its Ba2 Corporate Family
Rating for Actuant Corporation.

Additionally, Moody's held its Ba2 ratings on the company's
US$250 million Senior Unsecured Revolver Due 2009, and US$250
million Senior Term Loan Due 2009.  Moody's assigned those
debentures an LGD3 rating suggesting lenders will experience a
43% loss in the event of a default.

Actuant Corp.'s 2% Convertible Senior Subordinated Debentures
due 2023 carry Standard & Poor's B+ rating.


SK CORP: Incheon Unit Short-listed Among Tiger Oil Bidders
----------------------------------------------------------
SK Corp. unit SK Incheon Oil Co. said it was short-listed among
bidders vying to purchase a stake in Tiger Oil Corp., The Korea
Herald reports.

According to the report, SK Corp.'s Incheon unit wants to
acquire a 56% stake of Tiger Oil, 40% of which is held by
Singapore Petroleum Co. and 15% by Japan Energy & Carbon Trading
Corp.

SK Incheon spokesperson Hong Uk-pyo told the news agency that
the unit received on Jan. 17, the notice that it was included in
the list of bidders.  Mr. Hong is not aware how many other
companies had been chosen to bid for the stake.

The Troubled Company Reporter - Asia Pacific on Jan. 15, 2007,
reported that SK Corp. plans to revive a stalled initial public
offering of its stake in SK Incheon.  SK also plans to list the
Incheon unit in the Korean stock market.  The company intended
to sell its stake in the unit through a listing in the London
Stock Exchange in December 2006 but later advised postponement
of its planned IPO and will just make a follow-up decision
"after January 2007, after taking into consideration any and all
business-related circumstances."

Headquartered in Seoul, South Korea, SK Corp. --
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
include Peru in Latin America.

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


TOWER AUTOMOTIVE: Posts US$16.6-Mil. Net Loss in November 2006
--------------------------------------------------------------

             Tower Automotive, Inc., and Subsidiaries
               Unaudited Consolidated Balance Sheet
                     As of November 30, 2006
                          (In Thousands)

Cash and cash equivalents                              US$4,377
Accounts receivable                                     140,912
Inventories                                              51,312
Prepaid tooling and other                                14,453
                                                   ------------
TOTAL CURRENT ASSETS                                    211,054
                                                   ------------
Property, plant and equipment, net                      494,254
Investment in and advances to affiliates                778,621
Other assets, net                                        49,539
                                                   ------------
TOTAL ASSETS                                       US$1,533,468
                                                   ============

CURRENT LIABILITIES NOT SUBJECT TO
    COMPROMISE:
Current maturities of L-T debt and capital lease      
    Obligations                                       US$14,250
Current maturities of DIP borrowings                    605,000
Accounts payable                                        126,184
Accrued liabilities                                     104,440
                                                   ------------
    TOTAL CURRENT LIABILITIES                           849,874
                                                   ------------
Liabilities subject to comprise:                      1,401,922

Non-Current Liabilities Not Subject to
    Compromise:
Long-term debt, net of current maturities                84,751
Other non-current liabilities                            18,638
                                                   ------------
TOTAL LIABILITIES                                     2,355,185
                                                   ------------
STOCKHOLDERS' DEFICIT:                                 (821,717)
                                                   ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT:       US$1,533,468
                                                   ============


             Tower Automotive, Inc., and Subsidiaries
                Unaudited Statement of Operations
                      November 1 to 30, 2006
                          (In Thousands)

Revenues                                             US$116,471
Cost of sales                                           115,064
                                                   ------------
Gross profit                                              1,407

Selling, general and administrative expenses              6,114
Restructuring & asset impairment charges, net             7,622
Other operating income                                     (248)
                                                   ------------
Operating income (loss)                                 (12,081)

Interest expense                                          8,891
Interest income                                            (104)
Intercompany interest (income)/expense                   (2,448)
Chapter 11 and related reorganization items              (2,037)
                                                   ------------
Income (loss) before provision for income taxes,        
    equity in earnings of joint ventures, and
    minority interest                                   (16,383)

Provision (benefit) for income taxes                        213
Income (loss) before equity in earnings of  JVs         (16,596)
Equity in earnings of joint ventures, net of tax            (17)
                                                   ------------
NET INCOME/(LOSS)                                    (US$16,613)
                                                   ============


             Tower Automotive, Inc., and Subsidiaries
                Unaudited Statement of Cash Flows
                      November 1 to 30, 2006
                          (In Thousands)

OPERATING ACTIVITIES:
Net loss                                             (US$16,613)

Adjustments required to reconcile net loss
    to net cash provided by (used in)
    operating activities:

Chapter 11 & related reorganization items, net           (4,575)
Restructuring and asset impairment, net                   6,662
Depreciation                                              9,097
Equity in earnings of joint ventures, net                    17
Change in working capital & other operating items        14,645
                                                   ------------
Net cash provided by (used in) operating activities       9,233


INVESTING ACTIVITIES:
Cash disbursed for purchase of PPE                       (3,325)
                                                   ------------
Net cash used for investing activities                   (3,325)

FINANCING ACTIVITIES:
Proceeds from non-DIP borrowings                              -
Repayments of non-DIP borrowings                             (1)
Borrowings from DIP credit facility                      69,500
Repayments of borrowings from DIP facility              (71,500)
                                                   ------------
Net cash provided by (used in) financing activities      (2,001)
                                                   ------------
Net change in cash and cash equivalents                   3,907
                                                   ------------
Cash and Cash Equivalents, beginning of period              470
                                                   ------------
Cash and Cash Equivalents, end of period               US$4,377
                                                   ============

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: in
China, Japan and Korea.

                          *     *     *

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

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

                          *     *     *

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


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

AMSTEEL CORP: Bourse Extends Plan Filing Deadline to March 7
------------------------------------------------------------
On Jan. 15, 2007, the Troubled Company Reporter - Asia Pacific
reported that Amsteel Corp Bhd asked the Bursa Malaysia
Securities Bhd to extend until July 31, 2007, the deadline for
the submission of its regularization plan.

However, according to the TCR-AP report, the bourse rejected the
company's extension request.

The company subsequently appealed the Bursa's decision, along
with the mandate to suspend trading and commence a delisting
procedure on the company's securities.

In an update, Amsteel received a letter from Bursa Malaysia
dated Jan. 17, 2007:

    a. granting the company an extension of time until Feb. 7,
       2007, to make the requisite announcement of the company's
       regularization plans in accordance with paragraph 8.14C
       of the Listing Requirements and PN17; and

    b. submit its regularization plans on March 7, 2007, or one
       month after the requisite announcement was made.  The
       plan will be submitted to the Securities Commission and
       other relevant authorities for approval.

The bourse further decided that:

-- in the event the company submits its regularization plans to
   the relevant authorities for approval within the Extended
   Submission Deadline, Bursa Malaysia will await the outcome of
   the company's submission; and

-- the company must proceed to implement its regularization
   plans expeditiously within the timeframes or extended
   timeframes stipulated by the Approving Authorities in the
   event it obtain all Approving Authorities' approval necessary
   for the implementation of its regularization plans.

The bourse's Letter also stated that Bursa Malaysia'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:

   * the company fails to make the Requisite Announcement by
     Feb. 7, 2007;

   * the company fails to submit the regularization plans to the
     approving authorities for approval on or before the expiry
     of the Extended Submission Deadline;

   * the company fails to obtain the approval from any of the
     approving authorities necessary for the implementation of
     its regularization plans and does not appeal to the
     approving authorities within the timeframe prescribed to
     file an appeal;

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

   * the company fails to implement its regularization plans
     within the timeframe or extended time frames 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 the bourse or such other date as may be specified
and de-listing procedures will be commenced against the company.

                          *     *     *

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.

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 March 7, 2007.


ANTAH HOLDINGS: SC Exempts Share Disposal from Guideline
--------------------------------------------------------
On December 13, 2006, the Troubled Company Reporter - Asia
Pacific reported that Antah Holdings Bhd seeks to dispose its
entire 60% equity interest in Antah Melco Sales & Services Sdn
Bhd as part of its restructuring scheme.

The TCR-AP stated that Antah and Mitsubishi Electric Asia Pte.
Ltd. had, on Dec. 1, 2006, entered into a share purchase
agreement for the disposal of the company's equity interest in
AMSS, comprising 600,000 ordinary shares priced at MYR1.00 each,
equal to MYR1,894,394.  The proceeds from the proposed AMSS
share purchase would be used to fund the day-to-day operations
of Antah, until the completion of the Proposed Restructuring
Scheme.  Any balance proceeds not utilized would be used to
repay the company's creditors.

The TCR-AP also noted that Antah proposed to seek the Securities
Commission's exemption from classifying the Proposed AMSS
Disposal as "a significant change in business direction"
pursuant to Chapter 10 of the SC's Policies and Guidelines on
Issue/Offer of Securities, as a condition to the transaction
pushing through.  

In an update, the SC approved the company's request for
exemption under Section 32(5) of the Securities Commission Act,
1993.

                          *     *     *

Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--  
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing.  The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management
services, and investment holding.

The Group discontinued its beverage and security services
operations.  The Group operates in Malaysia, Australia, United
Kingdom, and Singapore.

Antah's balance sheet as of Sept. 30, 2006, showed insolvency
with total assets at MYR691.364 million and total liabilities at
MYR1.059 billion.  Shareholders' deficit amounted to
MYR369.42 million.


ANTAH HOLDINGS: December 2006 Loan Default Totals MYR258.6 Mil.
--------------------------------------------------------------
Antah Holdings Bhd filed with the Bursa Malaysia Securities Bhd
a report on its default status on its credit facilities as of
December 31, 2006.

As of end-December, Antah Holdings' default plus interest owed
to financial institutions totaled MYR258,600,000:

   Lender                                      Loan Default
   ------                                      ------------
   RHB Sakura Merchant Bankers Berhad          MYR8,472,000
   RHB Bank Berhad                                2,992,000
                                                  4,302,000
   OCBC Bank Berhad                               7,733,000
                                                  1,363,000
   Mizuho Corporate Bank Ltd                     36,950,000
   Standard Chartered Bank Malaysia Berhad        6,940,000
   EON Bank Berhad                                5,267,000
   Bank of Tokyo-Mitsubishi (M) Berhad            1,934,000
   Aseambankers Malaysia Berhad                     985,000
   AmBank Berhad                                  1,222,000
   Arab Malaysian Bank Berhad                     4,303,000
   Bank Pertanian Malaysia                       10,501,000
   Malayan Banking Berhad                        17,133,000
   DBS Bank Ltd                                 121,396,000
   Deutsche Bank (M) Berhad                       5,222,000
   Affin Bank Berhad                              8,712,000
   Malayan Banking Berhad                        10,647,000
                                                  2,526,000
                                              -------------
                                             MYR258,600,000

                          *     *     *

Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--  
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing.  The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management
services, and investment holding.

The Group discontinued its beverage and security services
operations.  The Group operates in Malaysia, Australia, United
Kingdom, and Singapore.

Antah's balance sheet as of Sept. 30, 2006, showed insolvency
with total assets at MYR691.364 million and total liabilities at
MYR1.059 billion.  Shareholders' deficit amounted to
MYR369.42 million.


EKRAN BERHAD: Appeals Bursa's Decision to Suspend Securities
------------------------------------------------------------
Ekran Bhd asked the Bursa Malaysia Securities Bhd not to suspend
its securities from trading until it clarifies its status with
the Securities Commission.

The bourse plans to suspend Ekran's shares on January 24, 2007,
after the company failed to submit its regularization plan to
the SC and other relevant authorities for approval.

As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 11, 2007, Ekran earlier appealed the Bursa's decision
denying the company's request to extend until July 7, 2007, its
deadline to submit a regularization plan.  In addition, the
bourse also denied the company's request to be lifted from its
Amended PN17 affected issuer status list.

The TCR-AP noted however that the company submitted before the
bourse its rationalization/recovery plan along with its
application to be lifted from the PN17 status on Dec. 29, 2006.

Ekran's rationalization and recovery plan addresses, among
others, the:

   a.  repayment scheme for all the Group's bank borrowings;
   b.  review of the Group's business operations; and
   c.  recovery of the Group's outstanding debts.

In an update, Ekran wants to clarify with the bourse that its
plan does not require the SC's approval in its implementation,
as it does not involve any capital restructuring or issue of new
securities.

The company also told the bourse that the rationalization/
recovery plan is already in progress, which the company strongly
believes that if successfully implemented, will solve its
present financial and operational status.

However, in order to comply with the listing requirements of the
bourse, Ekran again filed its rationalization and recovery plan
with the Bursa.  Subsequent with the filing, the company also
asked the SC to clarify whether Ekran needs their approval to
implement the plan.

Meanwhile, as the company believes that they are no longer
affected in any criteria for classification under Amended PN17,
said that they will continue to pursue its application for
upliftment from its current listing status.

                          *     *     *

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

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


HALIFAX CAPITAL: Inks US$23.2-Million Ship Building Contract
------------------------------------------------------------
Halifax Capital Bhd has won a shipbuilding contract worth
US$23.2 million with PT Kasih Industri Indonesia, the BizNews
reports.

Under the contract, Halifax would be supplying four sets of tugs
and barges to Kasih Industri.  Completion and delivery of the
ships are expected within two years.   

Meanwhile, BizNews adds that the company has entered into a
memorandum of agreement with Brooke Dockyard and Engineering
Works Corp for the establishment of a working relationship for
carrying out the works of building vessels and ships, within or
outside Malaysia.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Halifax Capital Berhad
-- fka. Setron (Malaysia) Berhad -- is principally engaged
investment holding, and assembly and sale of electrical and
electronic products.  Setron Sales & Service (M) Sdn. Bhd., the
Company's wholly owned subsidiary, is engaged in the
distribution of electrical and electronic products.

The company is considered an affected listed issuer under
Practice Note 17 as the its shareholders' equity on consolidated
basis is less than 25% of the issued and paid-up share capital
of the listed issuer and such shareholders' equity is less than
the minimum issued and paid up share capital.


PROTON HOLDINGS: Chery Auto Shows Interest in Car-Making Tie-Up
---------------------------------------------------------------
Chery Automobile Co is seeking cooperation with Malaysia's state
controlled automaker, Proton Holdings Bhd, in a bid to explore
the Malaysian market, the People Daily says, citing a report
from the Shanghai Securities News.

The paper notes Tan Sri Cam Thiam Hong, executive chairman of
Alado Corp., Chery's Malaysian distributor, as saying that Chery
plans to commission Proton to assemble two Chery models -- the
B14 multi-purpose vehicle and the T11 cross-country vehicle --
for sale in Malaysia.

Negotiations are underway and would be completed within three
months, Mr. Tan said, adding that Proton would assemble 50 to 60
Chery vehicles at the initial stage of the cooperation.

It was not clear however whether the two models will be
assembled under Chery's brand or Proton's, the People Daily
relates.

Chery is expected to sell 2,000 vehicles -- including the A160,
QQ, QQR and B140 -- in Malaysia this year and the Chinese
automaker plans to put out new models to grab a larger market
share.

People Daily recounts that the cooperation between Chery and
Alado dates back to November 2004 when the automaker first
attempted to enter the markets of the Association of Southeast
Asian Nations with the help of the Malaysian company.

                          *     *     *

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

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

As reported by the Troubled Company Reporter - Asia Pacific on
Dec. 6, 2006, Proton Holdings' fiscal second-quarter loss
widened as lower revenue and higher expenses pressured
Malaysia's national carmaker.  Based on the company's financial
report for the three months ended Sept. 30, 2006, Proton had a
loss of MYR250.3 million compared with a loss of MYR154.3
million in the same quarter a year earlier.

The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner.


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

AIR NEW ZEALAND: Slashes Domestic Airfares up to 26%
----------------------------------------------------
From January 24, Air New Zealand's domestic airfares will fall
by up to 26%, for travel from a month later, One News reports.

But it is understood the airline would make cuts of more than
15% on its cheapest fares on many routes, including the main
trunk routes and regional routes, ShareChat News cites a report
from the New Zealand Herald.

According to Chief Executive Officer Rob Fyfe, the move is
expected to generate more demand for domestic travel, which
"will benefit both customers and shareholders," the report
relates.

Air New Zealand is committed to growing the business and the
only way to do that is by stimulating demand, Mr. Fyfe said.

Mr. Fyfe also revealed that work is currently underway on
"pricing initiatives" for the Tasman and Pacific Island markets
as well as long haul routes, tvnz.com relates.

The airlines' staff is working on a review of the airline's
trans-Tasman and long-haul pricing, and further announcements on
those routes are expected, the Australian Associated Press
relates.

The move to cut domestic fares is being viewed as an attempt to
stave off competition and may also be a reaction to falling
forward bookings, One News says.

As reported in the Troubled Company Reporter - Asia Pacific on
January 16, 2007, Air New Zealand had no plans of cutting
airfares despite the recent drop of jet fuel prices.

According to the airlines' chief financial officer Rob McDonald,
"Air New Zealand's passengers will benefit from reduced fuel
costs and competitive pricing, but gestures like a AU$5
reduction in fuel surcharges are not in our view an appropriate
response," ShareChat relates.

                      About Air New Zealand

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

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

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


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

BANK OF COMMUNICATIONS: Philtrust Extends Offer to January 31
-------------------------------------------------------------
On Jan. 4, 2007, the Troubled Company Reporter - Asia Pacific
cited a report from Business World stating that Philtrust Bank
Co. launched a PHP2.16-billion bid to gain control of the
Philippine Bank of Communications.

Philtrust offered to acquire 72.039 million shares of PBCom,
representing 41.74% of PBCom's more than 172.5 million total
issued and outstanding common and preferred shares at PHP30
apiece, the report said.

In November, Philtrust accepted a letter-offer from the Nubla
and Chung families, who hold a combined stake of 58.26% in
PBCom, for the sale of their holdings, the TCR-AP said, but
noted that the Luy Family also has a 36% stake in PBCom.

Thus, without the Luys' consent, the sale of the bank cannot be
completed, the Manila Standard Today says.

Sources said the Luy family found the price well below the
market price of around PHP55 in November, Manila Standard
relates.  

PBCom president Roman Azanza said the market price of the shares
did not necessarily reflect its true value as buyers must also
consider the trading volume, the paper further says, noting that
PBCom shares are thinly traded in the stock market.

According to the paper, the Luy family ignored Philtrust's
offer, claiming that the government has voided the move.  

The Offer was set to close on Jan. 17, 2007.

Yet, Philtrust has extended its Offer to Jan. 31, the Manila
Standard reports.

The report cites Philtrust's disclosure to the Philippine Stock
Exchange stating that it is extending the Offer to comply with
Section 19 of the Securities Regulation Code.

The code does not set deadlines but sets the parameter on the
issues or shares that can be covered by a tender offer, the
paper says.

                        About Philtrust

The Philippine Trust Company, also known as Philtrust Bank, is
one of the oldest private commercial banks in the Philippines.
Founded on October 16, 1916, its history parallels the growth of
contemporary Philippine Banking System.  Known for its
conservatism, it has acquired and enjoyed public confidence and
reputation for reliability and efficient service throughout the
years.

A report from the Manila Standard Today dated January 17, 2007,
stated that Philtrust ranked as the country's 20th largest bank
in terms of total assets as of the first half of 2006, with
assets of PHP53.49 billion.

Philtrust ranked 18th in terms of deposits with PHP45.995
billion.   It is 19th in terms of loans with PHP16.58 billion,
the paper revealed.

             The Philippine Bank of Communications

Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different   
products and services through its different divisions and it has
a broad range of credit facilities, which are either denominated
in local currency or foreign.  Its Trust Division handles common
trust funds, investment advisory accounts and employee benefit
trusts.  Aside from these, the bank also offers money market
placements and traditional products such as peso deposits.

Fitch Ratings gave Philippine Bank of Communications an
Individual Rating of 'D/E.'


BANK OF COMMUNICATIONS: Wants to Consider Other Bidders
-------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
January 4, 2007, Philtrust Bank Co. launched a PHP2.16-billion
bid to gain control of the Philippine Bank of Communications.

However, according to the Manila Standard Today, the Luy family
ignored Philtrust Bank's offer, claiming that the government has
voided the move.

Since the Luys are the single-biggest stockholder of PBCom,
enough to give them veto power in the PBCom board, without their
consent, the sale of PBCom cannot be completed, the paper says.

According to Edwin Luy, a director of PBCom, they "intend to
seek legal relief," Manila Standard relates.  "With the exercise
voided, we can get back to square one and consider other
bidders," Mr. Luy said.

The Manila Standard reveals that other parties that have earlier
expressed interest in PBCom are business tycoon Lucio Tan, a
group led by investment banker Jaime Gonzalez, Security Bank,
and Union Bank of the Philippines.

Industry sources said Lucio Tan had a first crack at the Luy's
family shares in PBCom after he deposited PHP2 billion in the
bank when it experienced a run in late 2003, the paper relates.

Philtrust chairman and former central bank governor Jaime Laya
urged regulators to step in, saying that a consolidation of the
two banks was good for the system, Manila Standard relates.

However, according to the paper, the Luys prefer the bidding of
PBCom shares instead.

Jaime Gonzalez, chairman of the Export and Industry Bank, has
put together a group to make a bid for PBCom but put the plan on
hold, Manila Bulletin notes.

                    PDIC will not intervene

The Philippine Deposit Insurance Corporation could not force the
sale of the bank, Manila Standard cites PDIC president Michael
Osmena as saying.

Under PBCom's rehabilitation program, owners of PBCom must sell
a block of 67% if they decide to divest during the five-year
period, the paper relates.  PDIC assumes authority to bid out
the shares after the rehabilitation program even if the owners
do not want to sell the bank.

"The shareholders must resolve the issue among themselves but
they must abide by the agreement they signed with us which is to
sell as a block," Mr. Osmen told reporters.

                        About Philtrust

The Philippine Trust Company, also known as Philtrust Bank, is
one of the oldest private commercial banks in the Philippines.
Founded on October 16, 1916, its history parallels the growth of
contemporary Philippine Banking System.  Known for its
conservatism, it has acquired and enjoyed public confidence and
reputation for reliability and efficient service throughout the
years.

A report from the Manila Standard Today dated January 17, 2007,
stated that Philtrust ranked as the country's 20th largest bank
in terms of total assets as of the first half of 2006, with
assets of PHP53.49 billion.

Philtrust ranked 18th in terms of deposits with PHP45.995
billion.   It is 19th in terms of loans with PHP16.58 billion,
the paper revealed.

             The Philippine Bank of Communications

Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different   
products and services through its different divisions and it has
a broad range of credit facilities, which are either denominated
in local currency or foreign.  Its Trust Division handles common
trust funds, investment advisory accounts and employee benefit
trusts.  Aside from these, the bank also offers money market
placements and traditional products such as peso deposits.

Fitch Ratings gave Philippine Bank of Communications an
Individual Rating of 'D/E.'


NATIONAL POWER: Remits PHP2.6-B dividends to National Government
----------------------------------------------------------------
In its weekly publication dated January 15, 2007, the National
Power Corporation reported that it has turned over
PHP2.6 billion in dividends to the national government, after
posting an unprecedented PHP85.99 billion net income in 2005.

National Power made the remittance to the Bureau of Treasury on
December 29, 2006, President Cyril C. Del Callar said.

The remittance is in compliance with Republic Act 7656, which
requires government-owned and -controlled corporations to
declare part of their annual net earnings as dividends to the
National Government.  RA 7656 was signed into law in 1993 by
then president Fidel V. Ramos.

National Power formally informed the BTr of the dividend
remittance in a letter dated January 2, 2007.  The amount of the
remittance was recommended by the Department of Finance to the
Office of President, as prescribed by RA 7656.

It will be remembered that after almost ten years of being in
the red, National Power made a dramatic financial turn-around in
2005 by posting a net income of almost PHP86 billion, the
highest-ever in its 70-year corporate existence.  Among other
factors, National Power attributed its sterling financial
performance in 2005 to a rigorous cost-cutting program, which
generated savings of almost PHP25 billion.  This cost reduction
program consisted of such measures as:

   (a) Economic load dispatching of the corporation's power
       plants;

   (b) Improving the operational efficiency of power plants;

   (c) Availing of discounts on some of the corporation's fuel
       deliveries;

   (d) Optimizing the use of local coal, which is less expensive
       than imported coal;

   (e) Cutting down on operating expenses;

   (f) Deferment of some capital expenditures; and

   (g) Reduced contractual obligations from some independent
       power producers

Apart from the cost-cutting measures, the other factors, which
contributed to the financial upturn in 2005 were:

   1. the Energy Regulatory Commission's approval of adjustments
      in National Power's Generation Rate Adjustment Mechanism
      and Incremental Currency Exchange Rate Adjustment, as well
      as the corporation's application for a rate adjustment
      under its Return-On-Rate-Base with Time-Of-Use Program;

   2. the strong showing of the peso against major foreign
      currencies, which significantly eased the corporation's
      burden of paying its long-term, yen- and dollar-
      denominated debts; and

   3. the absorption by the national government of PHP200
      billion of National Power's outstanding liabilities, as
      provided by the Electric Power industry Reform Act.

                       About National Power

Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned  
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities.  It works
with independent producers under a build-operate-transfer
program.  With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies.  To comply with the privatization bill
approved by the Philippine Congress, the Company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

                          *     *     *

National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers.  The Company posted a PHP29.9 billion loss in
2004, after a net loss of PHP117 billion in 2003.

The Government absorbed National Power's PHP200 billion debt,
which was incurred when the government-owned-and-controlled
corporation adopted international accounting standards, forcing
the Company to report its foreign exchange losses.

The Troubled Company Reporter - Asia Pacific reported on April
5, 2006, that for 2005, National Power posted a PHP16-million
profit for the first time in seven years, on the Energy
Regulation Commission's approval of a rate increase, the use of
improved fuel mix and better fuel prices.


* Philippine Consumer Confidence Up, MasterCard Survey Reveals
--------------------------------------------------------------
A MasterCard survey shows that Philippine consumers are more
optimistic about the first half of 2007.

From a score of 51.9 in the second half of 2006, Filipino
consumers registered a score of 57.2 for the first half of 2007,
the survey revealed.

The twice-yearly survey is based on responses from about 400
middle and high-income consumers in each of 12 Asian markets and
on responses from 600 consumers in China, all taken in October.
It aims to measure confidence in the six months ahead.  A score
of 0 is most pessimistic, 100 is most optimistic and 50 is
neutral.

The survey showed that consumers were fairly optimistic across
the region and were more upbeat than six months ago, although
confidence was weak in South Korea and Taiwan, amid fears about
employment, and sentiment was subdued in Malaysia and Australia.

The latest MasterIndex of Consumer Confidence registered an
average score of 64.3, up from 57.4 in the same survey six
months ago.

                          *     *     *

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

On January 10, 2007, Fitch Ratings assigned a Long-term foreign
currency rating of 'BB' to the Republic of the Philippines'
(rated foreign currency Issuer Default 'BB') US$1 billion global  
bond maturing in 2032 and priced to yield 6.55%.

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

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


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

ARMSTRONG INDUSTRIAL: In Talks to Acquire Three Auto Companies
--------------------------------------------------------------
Armstrong Industrial Corp. plans to acquire three automotive
suppliers to boost its product range, and expects to close one
deal later this year, Reuters reports.

"We will be quite aggressive on mergers and acquisitions this
year," Armstrong's Deputy Chief Executive Steven Koh told
Reuters in an interview.  "We're talking to three companies now
-- one in Singapore, one in Malaysia and one in Thailand -- and
we have budgeted about SGD15-SGD25 million to buy the three
firms."

Armstrong, Mr. Koh continues, plans to take majority stakes in
each of the three firms, which have combined sales of about
SGD50 million.  

According to Reuters, the acquisitions will be funded through a
mix of internal cash and bank loans.

Armstrong had cash and cash equivalents of SGD14 million as of
June 2006, the news agency notes.  With the planned
acquisitions, the company intends to borrow about SGD10 million
from banks.

                    About Armstrong Industrial

Armstrong Industrial Corp. Ltd -- http://www.armstrong.com.sg--   
manufactures and sells precision die-cut foam and rubber moulded
components for a range of applications, including insulating,
dampening, cushioning, and sealing.  The company also provides
architectural and engineering activities and related technical
consultancy.  The company has manufacturing presence in
Singapore, Malaysia, Thailand, China, Indonesia and Vietnam.

                          *     *     *

Moody's Investors Service gave Armstrong Industrial's senior
unsecured debt a Ba2 rating effective on December 16, 1991, and
its subordinated debt a B1 rating effective on October 23, 1986.


ARMSTRONG INDUSTRIAL: Shareholder Reduces Deemed Holdings
---------------------------------------------------------
Ang Meng Huat Anthony, a director of Armstrong Industrial Corp.,
reduced his holdings of deemed shares in the company on Jan. 16,
2007, in a sale in the open market.

Prior to the change, Mr. Ang held 6,342,000 deemed shares with
1.2542% issued share capital.  Presently, Mr. Ang holds
4,342,000 shares with 0.8587% issued share capital.  
Mr. Ang still holds 6,635 direct shares with 0.0013% issued
share capital.

                    About Armstrong Industrial

Armstrong Industrial Corp. Ltd -- http://www.armstrong.com.sg--   
manufactures and sells precision die-cut foam and rubber moulded
components for a range of applications, including insulating,
dampening, cushioning, and sealing.  The company also provides
architectural and engineering activities and related technical
consultancy.  The company has manufacturing presence in
Singapore, Malaysia, Thailand, China, Indonesia and Vietnam.

                          *     *     *

Moody's Investors Service gave Armstrong Industrial's senior
unsecured debt a Ba2 rating effective on Dec. 16, 1991, and
its subordinated debt a B1 rating effective on Oct. 23, 1986.


CKE Restaurants: Appoints VP for Regional Marketing and Media
-------------------------------------------------------------
CKE Restaurants, Inc. has appointed Anne Blumenstein as the Vice
President of Regional Marketing and Media for Carl's Jr.
restaurants, one of the company's subsidiary.

Accordingly, Ms. Blumenstein will oversee all local restaurant
marketing, media planning and placement for Carl's Jr.
advertising and all local and beverage and consumer promotions.  
Ms. Blumenstein replaced Renae Scott, who left the company in
2006.

Before Ms. Blumenstein joined Carl's Jr., she worked as the
director of Jack in the Box's regional marketing division, where
she oversaw the initiatives of more than 2,000 restaurants.

                     About CKE Restaurants

Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants.  The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names.  As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries -- including Singapore.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 14, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on CKE Restaurants Inc. to BB- from B+.
All ratings were removed from CreditWatch, where they were
placed on Oct. 24, 2006, with positive implications.  The
outlook is stable.


CKE Restaurants: Stock Repurchase Program Increased by US$50 MM
---------------------------------------------------------------
CKE Restaurants Inc. disclosed on Jan. 10, 2007, that its stock
repurchase program has been increased to US$150 million.  A
US$50 million increase from its prior value of US$100 million on
Oct. 11.

The company's stock repurchase program has an initial limit
value of US$20 million on Apr. 13, 2004.  Subsequently, the
Board increased its value by US$50 million on July 24, 2006, to
US$100 million.

Currently, the company has utilized approximately US$89.4
million under this program, leaving a balance available for
future repurchases of approximately US$60.6 million.

The company may make repurchases from time to time in the open
market or in privately negotiated transactions in compliance
with the Securities and Exchange Commission guidelines.

"We are very pleased to announce the expansion of our stock
repurchase program for the third time this fiscal year.  Our
improved operating results and financial position continue to
provide the company the ability to return capital to our
stockholders," says Andrew F. Puzder, the company's President
and Chief Executive Officer.

"We believe that the repurchase of our shares continues to
represent an attractive investment opportunity, which the
company will take advantage of through purchases pursuant to
Rule 10b5-1 of the Securities Exchange Act of 1934, as amended,
through open-market purchases as market conditions may warrant
and through privately negotiated transactions as these
opportunities may present themselves," added Mr. Puzder.

                     About CKE Restaurants

Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants.  The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names.  As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries -- including Singapore.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 14, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on CKE Restaurants Inc. to BB- from B+.
All ratings were removed from CreditWatch, where they were
placed on Oct. 24, 2006, with positive implications.  The
outlook is stable.


COMPACT METAL: Discloses Shareholders' Change of Interests
----------------------------------------------------------
Compact Metal Industries Ltd has unveiled a series of changes to
the stake of its shareholders.

Tan Kay Sing sold some of his deemed shares in Compact Metal to
meet his financial obligations reducing his stake to 6,072,000
deemed shares with 2.745% issued share capital.  Prior to the
sale, Mr. Tan held 6,472,000 deemed shares with 2.926% issued
share capital.  Mr. Tan still holds 755,000 direct shares with
0.341% issued share capital.

Director Tan Kay Kiang also sold some of his deemed shares to
meet his financial obligations.  Presently, Mr. Tan holds
6,072,000 deemed shares with 2.745% issued share capital.  In
the past, Mr. Tan held 6,472,000 deemed shares with 2.926%
issued share capital.  Mr. Tan's holdings of direct shares
remains as it is at 323,000 with 0.146% issued share capital.

Another director, Tan Kay Tho, also sold some of his deemed
shares to meet his financial obligations reducing his stake to
6,447,000 deemed shares with 2.914% issued share capital.  
Before the sale, Mr. Tan held 6,847,000 deemed shares with
3.095% issued share capital.

Tan Chin Hoon, also a director of the company, sold his shares
to meet his financial obligations.  Presently, Mr. Tan holds
6,072,000 deemed shares with 2.745% issued share capital.  Prior
to the sale, Mr. Tan held 6,472,000 deemed shares with 2.926%
issued share capital.

                       About Compact Metal

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

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

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

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

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


GRANT PRIDECO: Jay Mitchell Quits Treasurer Post
------------------------------------------------
Jay Mitchell has ceased to act as the treasurer of Grant Prideco
Inc. to take a position with another oilfield service company.

In the meantime, Matt Fitzgerald, the company's Chief Financial
Officer, will be assuming Mr. Mitchell's responsibilities until
a successor is named, the company advises.

Headquartered in Houston, Texas, Grant Prideco Inc. --
http://www.grantprideco.com/-- provides drill bits and related   
equipment.  The company also makes engineered tubular products
for oil field exploration and development, including drill pipe
and drill stem products, large-diameter casings, tubing and
connections, and risers.  Grant Prideco offers sales, technical
support, repair, and field services to customers worldwide.

The company was spun off by drilling equipment maker Weatherford
International in 2000.  The company has global locations in
Singapore, China, Indonesia, Brazil, Columbia, Ecuador, Peru,
Venezuela, Austria, France, Italy and Scotland, among others.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its Ba1 Corporate
Family Rating for Grant Prideco Inc.  Additionally, Moody's
affirmed its Ba1 rating on the company's 6.125% Senior Unsecured
Guaranteed Global Notes Due 2015 and assigned the debentures an
LGD4 rating suggesting noteholders will experience a 55% in the
event of a default.

On Aug. 3, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating and senior unsecured credit ratings on
Grant Prideco Inc. to 'BB+' from 'BB'.  The rating outlook is
stable.


GUL TECHNOLOGIES: Completes Share Purchase Agreement Deal
---------------------------------------------------------
Gul Technologies Singapore Ltd has completed the last tranche of
a transaction pursuant to Schedule 1 of the Share Purchase
Agreement dated April 4, 2003, entered into with EDB Investments
Pte Ltd, Tuan Sing Holdings Limited and Gultech International
Pte Ltd.  

The transaction comprises of:

     (i) the transfer of last tranche of 5,228,572 redeemable
         convertible preference shares of Gultech International
         from EDB Investments to the company for a consideration
         price of SGD6.1 million, that will be satisfied in full
         by Gul Technologies' allotment and issue of ordinary
         shares in the company's capital to EDB Investments; and

    (ii) the transfer of the company's consideration shares from
         EDB Investments to Tuan Sing for a cash consideration
         of SGD6.1 million.

The transaction has resulted the company's increase in issued
share capital from 809,060,346 ordinary shares to 931,060,346
ordinary shares.  

                  About Gul Technologies

Incorporated in Singapore, Gul Technologies Singapore Limited --
http://www.gultech.com/-- is a global supplier with sales and   
representative offices in North America, Asia and Europe.  Its
printed circuit boards are supplied to the Automotive industry
(electronic engine control, power control module, anti-lock
braking systems, speed controls, clusters, telematics etc),
Telecommunications industry (mobile phones, digital enhanced
cordless telephones, land mobile radios), Information Technology
industry (disk and tape drives for computers, network routers,
servers, firewalls, port adapters, voice over internet protocol,
wireless local area network), Healthcare industry (hearing aids,
infusion pumps, glucose monitoring devices), and other products
like instrumentation (programmable logic controllers, industrial
controllers, bar code readers), digital cameras and avionics.  
The company manufactures its products in its production
facilities in China.                        

                          *     *     *

PricewaterhouseCoopers, the company's independent auditors,
raised a going concern issue in their report on the company's
financial statements for the year ended Dec. 31, 2005.  PwC
cited these reasons:

* The group incurred a net loss of US$48.24 million for the
  financial year ended Dec. 31, 2005, and a net loss of
  US$21.75 million for the year 2004.

* As of Dec. 31, 2005, the group and the company are in a
  net liabiltities position of US$27.74 million and US$30.31
  million, respectively.

* The company has not complied with certain debt covenants
  relating to bank borrowings amounting to US$19.82 million.
  Such non-compliance has resulted in the related bank
  borrowing becoming repayable on demand.

* Tuan Sing Holdings Ltd., the ultimate holding corporation,
  has indicated its intention to provide continuing financial
  support to enable the group and the company to meet their
  obligations provided that the group remains a subsidiary.
  However, on Sept. 7, 2005, the company entered into a
  subscription agreement with Nuri Pacific Pte. Ltd which
  would result in the cessation of Tuan Sing's position as
  the ultimate holding corporation of the group.

As reported by the Troubled Company Reporter - Asia Pacific, the
company's balance sheet as of June 30, 2006, showed US$150.38
million in total assets and US$182.51 million in total
liabilities, resulting to a stockholders' deficit of US$32.13
million.


PACIFIC RIM: Creditors' Proofs of Debt Due on Feb. 12
-----------------------------------------------------
Pacific Rim Palm Oil Pte Ltd, which is in members' voluntary
liquidation, requires its creditors to submit their proofs of
debt by Feb. 12, 2007.

Failure to submit proofs of debt by the due date will exclude a
creditor from sharing in the company's distribution of dividend.

The liquidator can be reached at:

         Lau Chin Huat
         c/o 6 Shenton Way #32-00
         DBS Building Tower Two
         Singapore 068809


PALEMBANG COASTAL: Creditors Must Prove Debts by Feb. 8
-------------------------------------------------------
Palembang Coastal Technology (Singapore) Pte Ltd, which is
undergoing members' voluntary liquidation, will be receiving
proofs of debt from its creditors until Feb. 8, 2007.

Failure to comply with the requirement will exclude a creditor
from sharing in the company's dividend distribution.

The Liquidator can be reached at:

         Assan Masood
         c/o MGI Menon & Associates
         50 Robinson Road
         #15-00 VTB Building
         Singapore 068882


PETROLEO BRASILEIRO: Bids for Gas Export Contract with Bolivia
--------------------------------------------------------------
Petroleo Brasileiro SA, the state-run oil firm of Brazil, has
presented a bid for a share of a multibillion contract with
Bolivia to export natural gas to Argentina, Reuters reports.

Reuters relates that Bolivia signed in October 2006 a 20-year
deal to increase the amount of natural gas it exports to
Argentina from a maximum of 7.7 million cubic meters a day
starting in 2010.

Bolivian state oil Yacimientos Petroliferos Fiscales Bolivianos
said in a statement that eight firms would compete to supply the
natural gas.  The bidders include:

   -- Petroleo Brasileiro;

   -- Repsol;

   -- BG Group Plc;

   -- Dong Won;

   -- Canadian Energy;

   -- Pluspetrol;

   -- Vintage; and

   -- Chaco SA.

France's Total is out of the bidding process as it didn't submit
all the required information, Reuters notes, citing Yacimientos
Petroliferos.

According to Reuters, the Bolivian government will disclose the
bidding results on Jan. 19.

Reuters underscores that Bolivian officials said last year that
the deal with Argentina was worth over US$50 billion and that
Yacimientos Petroliferos needed investments of US$1 billion,
mainly to fulfill the new export contract.

Another US$1 billion may be needed to construct a gas pipeline
linking Bolivia with Northeastern Argentina, experts told
Reuters.

The winning bidders will be required to invest heavily to boost
their production capacity, Reuters states.

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: Investing in Proinfa Renewable Projects
------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras is mulling to invest in
Brazil's power incentive program called Proinfa, a company
spokesperson told BNamericas.  Renewable projects under the
program include:

    -- wind projects;

    -- small hydroelectric projects; and

    -- biomass projects.

The company is still thinking over what project to invest in,
the spokesperson told BNamericas.

According to the same report, Proinfa grants incentives to
construct over 3GW of wind, biomass and small hydroelectric
projects.  These are expected to start operations in 2008.

Local reports say that Petrobras is on the way for building a
3MW wind power project in the Rio Grande municipality as local
environment authorities has permitted its construction.  The
project is not under Proinfa.

According to Petrobras' 2007-11 strategic investment plan, the
company has reserved about US$700 million to develop renewable
power projects with a combined capacity of 240MW.  For this
year, the company has allotted BRL500 million or US$232 million
for these kind of projects, BNamericas adds.

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

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

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

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

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

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


PETROLEO BRASILEIRO: Talking with Consortium in Ceara Project
-------------------------------------------------------------
Brazilian mines and energy minister Silas Rondeau will monitor
negotiations between state oil firm Petroleo Brasileiro and a
consortium planning to construct the 1.5-million-ton-per-year
Ceara Steel project, the ministry said in a statement.

Tasso Jereissati, president of the Brazilian social democracy
party, told the AE-Setorial news agency that Petroleo Brasileiro
could become a partner in the Ceara Steel project.

According to AE-Setorial, Petroleo Brasileiro has made a
proposal to take part in the project, which other investors
support.

Business News Americas relates that the steel consortium
negotiating with Petroleo Brasileiro for the Ceara Steel project
is composed of:

   -- BNDES, which has 40% participation in the project;

   -- Dongkuk Steel, with 34%;

   -- Danieli Steel, with 17%; and

   -- CVRD, with 9%.

The Ceara state government will participate in the talks, which
involve finalizing prices and volumes of natural gas shipments
to the steel mill, BNamericas notes.

The report says that Brazil's northeastern region is faced with
gas supply shortages, as local output is not enough to meet
demand.  There are also insufficient pipelines to transport the
fuel from other regions.

A source told BNamericas that Ceara Steel is one of the largest
industrial projects in the region that will depend on gas
supplies.

The mines and energy ministry said in a statement that the
deadline for parties to come to an accord is Feb. 28.  

According to BNamericas, Petroleo Brasileiro would supply
natural gas to fuel the plant, which will start operating in
2009.

The next meeting on the issue between technical parties is
Jan. 30, the ministry said in a statement.

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.


QUINTILES TRANSNATIONAL: Inks Agreement with ClinfoSource
---------------------------------------------------------
Quintiles Transnational Corp. and ClinfoSource entered into a
licensing agreement, a company release dated Jan. 18, 2007,
disclosed.

Under the agreement, ClinfoSource will grant Quintiles the
licensing rights to use ClinfoSource's GCP course content for
the internal training of Quintiles' employees worldwide.

To offer a quality-training program for the employees of
Quintiles is a privilege for ClinfoSource, says Dr. Kay
Ranganathan, President of ClinfoSource.

"Regulatory compliance is part of our culture.  We live and
breathe GCP every day," Tim Toterhi, Director for Global L&D
Strategies and Solutions of Quintiles Transnational, states.
"Through this agreement we can further enhance our world-class
global training program.  We have previewed ClinfoSource's
program and are impressed with their course content, which is an
ideal fit for clinical research training."

                        About ClinfoSource

Headquartered in Danville, CA, ClinfoSource --
http://www.clinfosource.com-- provides comprehensive and easy  
to use GCP training and automated training documentation system
for clinical research professionals.  ClinfoSource's program is
used by pharmaceutical and biotechnology companies, Contract
Research Organizations (CROs), medicals schools, Clinical
Research Organizations and Investigational Site personnel around
the world.

                        About Quintiles

Headquartered near Research Triangle Park, North Carolina,
Quintiles Transnational Corp. -- http://www.quintiles.com/--   
helps improve healthcare worldwide by providing a broad range of
professional services, information and partnering solutions to
the pharmaceutical, biotechnology and healthcare industries.

The company has a regional office in Singapore Science Park,
Singapore, and affiliates in Australia, China and Philippines.

The Troubled Company Reporter - Asia Pacific reported on
Sept. 28, 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 United States
pharmaceutical sector, the rating agency confirmed its B1
Corporate Family Rating for Quintiles.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$1 Billion
   First Lien Term
   Loan                   B1       B1      LGD3       44%

   US$225 Million
   First Lien
   Revolving Credit
   Facility               B1       B1      LGD3       44%

   US$220 Million
   Second Lien Term
   Loan                   B3       B2      LGD5       72%


REFCO INC: CFTC Objects to Mr. McNeil's Case Conversion Request
---------------------------------------------------------------
Commodity Futures Trading Commission asks the Honorable Robert
D. Drain of the U.S. Bankruptcy Court for the Southern District
of New York to deny Michael A. McNeil's request to convert Refco
F/X Associates, LLC's and all Refco companies' cases from a
Chapter 11 case to Chapter 7 of the Bankruptcy Code because the
relief he is seeking is not available under the Bankruptcy Code.

Glynn L. Mays, Esq., Senior Assistant General Counsel of CFTC,
in Washington, D.C., tells the Court that, pursuant to the
limits provided under Subchapter IV of Chapter 7 of the
Bankruptcy Code, any customers of FXA, are not eligible for
relief under that subchapter.

Ms. Mays contends that while, in general, the Commodity Exchange
Act requires that transactions should be conducted on or subject
to the rules of a board of trade designated or registered by the
CFTC as a contract market or derivatives transaction execution
facility, retail foreign currency futures transactions may be
conducted away from a contract market under a CEA statutory
exemption.

According to Ms. Mays, Subchapter IV applies to and requires
that bankruptcy proceedings be conducted under Chapter 7 for any
"commodity broker" as defined in Section 101(6).

Section 101(6) defines commodity broker as a futures commission
merchant with respect to which there is a "customer."  Section
761(9) defines "customer" as an entity that holds a claim
against the futures commission merchant on account of a
commodity contract made, received, acquired, or held by or
through that merchant.  Moreover, Section 761(4) defines
"commodity contract" with respect to a futures commission
merchant, as a "contract for the purchase or sale of a commodity
for future delivery on, or subject to the rules of, a contract
market or board of trade."  That is, Ms. Mays clarifies, only
contracts traded "on exchange" are included.

Ms. Mays notes that Mr. McNeil's claim is that FXA engaged in
futures business, however, the record seems clear that its
business was not "on exchange."  Thus, she asserts, Subchapter
IV of Chapter 7 could not apply.

Furthermore, Ms. Mays says, Mr. McNeil asserted that FXA is
required to liquidate under Subchapter IV on the basis that it
was also a "foreign futures commission merchant," a "leverage
transaction merchant," a "clearing organization," and a
"commodity options dealer."

Rather than go through separate eligibility requirements for
each one of those types of entities under Subchapter IV, Mr.
McNeil provides virtually no factual context for his assertions,
Ms. Mays points out.

                        About Refco Inc.

Headquartered in New York City, Refco Inc. (OTC: RFXCQ) --  
http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  (Refco Bankruptcy News, Issue No. 54; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)

                           Plan Update

On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries,
along with Marc S. Kirschner, the Chapter 11 Trustee for the
estate of Refco Capital Markets, Ltd., delivered a Chapter 11
plan of reorganization and accompanying Disclosure Statement to
the Court.

On Oct. 10, 2006, the Debtors filed an Amended Plan and
Disclosure Statement and on Oct. 13, filed a Modified Amended
Disclosure Statement.  On Oct. 16, 2006, the Court gave its
tentative approval on the Disclosure Statement and the Court
Clerk entered an order on Oct. 20, 2006.

On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and
certain of its direct and indirect subsidiaries, including Refco
Capital Markets, Ltd., and Refco F/X Associates LLC, was
confirmed by the Court.  That Plan became effective on Dec. 26,
2007.  


REFCO INC: Payments to Professionals Reaches US$145.3 Million
-------------------------------------------------------------
Refco Inc. has paid US$145.3 million of fees and expenses to 34
firms of lawyers and restructuring professionals working for the
company or its creditors committee through the end of 2006, the
Associated Press reports.

Court documents disclose that Skadden, Arps, Slate, Meagher &
Flom, the company's lead counsel, collected US$38.8 million in
fees.  J. Gregory Milmoe, Esq., at Skadden Arps, told AP that
the fees were justified given the complexity of the case.  The
final tab could reach to US$180 million, he said.

AP reveals that the company also paid these firms:

   -- Milbank Tweed Hadley & McCloy LLP for US$17.4 million;
   -- AlixPartners LLC for US$24.4 million;
   -- FTI Consulting for US$11.8 million; and
   -- Goldin Associates for US$10.1 million.

Reports show that in December, the company has rewarded
US$1.81 billion to creditors, with the bulk of that amount going
to Refco Capital Markets Ltd. creditors, Refco's offshore unit.  

Refco Capital owns US$83% of the US$670 million Refco still
holds in its safety box.

                        About Refco Inc.

Headquartered in New York City, Refco Inc. (OTC: RFXCQ) --  
http://www.refco.com/-- is a diversified financial services  
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).

                        Plan Update

On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries,
along with Marc S. Kirschner, the Chapter 11 Trustee for the
estate of Refco Capital Markets, Ltd., delivered a Chapter 11
plan of reorganization and accompanying Disclosure Statement to
the Court.

On Oct. 10, 2006, the Debtors filed an Amended Plan and
Disclosure Statement and on Oct. 13, filed a Modified Amended
Disclosure Statement.  On Oct. 16, 2006, the Court gave its
tentative approval on the Disclosure Statement and the Court
Clerk entered an order on Oct. 20, 2006.

On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and
certain of its direct and indirect subsidiaries, including Refco
Capital Markets, Ltd., and Refco F/X Associates LLC, was
confirmed by the Court.  That Plan became effective on Dec. 26,
2006.


SEA CONTAINERS: Can Decide on Leases Until May 13
-------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware extended, until May 13, 2007, Sea
Containers, Ltd. and its debtor-affiliates' original 120-day
period to assume or reject real property leases, pursuant to
Section 365(d)(4) of the Bankruptcy Code.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 15, 2007, the Real Property Leases include the Debtors'
headquarters and office spaces in London, United Kingdom, which
are also being used by the Debtors' direct and indirect U.K.
subsidiaries, related Robert S. Brady, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware.  Mr. Brady also
disclosed that the Debtors conduct substantially all of their
business activities from the Premises.

Mr. Brady informed 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 said an extension is warranted primarily because the
Debtors are current on its obligations under the Premises Leases
and intend to continue to fulfill their obligations under the
Leases on a timely basis, unless the Leases are rejected.

                       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: Can File Chapter 11 Plan Until June 12
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended,
until June 12, 2007, Sea Containers, Ltd. and its debtor-
affiliates' exclusive period to propose and file a plan of
reorganization, and to solicit acceptances of that plan to and
including Aug. 11, 2007.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 15, 2007, Robert S. Brady, Esq., at Young Conaway Stargatt
& Taylor, LLP,in Wilmington, Delaware, told the Court that the
Debtors' sufficiently large and complex cases warrant an
extension of their Exclusive Periods.  As of June 30, 2006, the
Debtors had total assets having a net book value of
US$1,673,000,000, including assets of their 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 the Debtors 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.  

                       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)


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

KASIKORNBANK: Fourth Qtr. Earnings Soars Due to Unit's Closing
--------------------------------------------------------------
Kasikornbank reported a better-than-expected 29% rise in fourth-
quarter earnings due to a tax windfall from closing a
subsidiary, the Bangkok Post reports.

The lender's income statement for the fourth-quarter period
showed net profit of THB3.4 billion, or THB1.44 per share,
topping a mean forecast of THB2.8 billion from 10 analysts
surveyed by Reuters.

The result compared with a profit of THB3.1 billion in the
fourth quarter of 2005 and THB2.7 billion in the third quarter
of 2006.

Adit Laixuthai, th bank's senior vice president said that its
fourth quarter was helped by a tax benefit from which the bank
got about THB1.2 billion after it shut down Ploy Asset
Management.

Meanwhile, Kasikornbank's full-year net profit was down
marginally at THB13.66 billion, compared with THB13.93 billion
in 2005.  The bank said its loan-loss provisions rose to THB1.53
billion in the quarter, while it had transferred its ample
reserves to cover new provisioning requirements.

                          *     *     *

Kasikorn Bank Public Company Limited --
http://www.kasikornbank.com/-- otherwise known as the Thai  
Farmers Bank, was established in 1945 with registered capital of
THB5 million and has been listed on the Stock Exchange of
Thailand since 1976.  It is Thailand's fourth largest bank, with
total assets of THB844 billion (US$22 billion) as at end June
2006.

The bank currently carries Moody's Bank financial strength
rating of D+.

On October 24, 2006, the Troubled Company Reporter - Asia
Pacific, reported that Fitch Ratings affirmed the ratings of
Kasikornbank and removed them from Rating Watch Negative on
which they were placed on September 20, 2006 following the
military coup.  The Outlook on their ratings is now Stable.

After the rating action, Kasikorn's ratings are as follows:

    * Long-term foreign currency IDR BBB+/ Outlook Stable;
    * Short-term foreign currency F2;
    * Individual C;
    * Support 2;
    * Subordinated debt BBB.


TMB BANK: Moody's Takes Junior Subordinated Notes (P)Ba1 Rating
---------------------------------------------------------------
Moody's Investors Service on Jan. 16, 2007, withdrew its (P)Ba1
rating for TMB Bank's proposed junior subordinated debt notes
due 2015, following the bank's decision not to proceed with the
offering.

TMB, headquartered in Bangkok, is Thailand's fifth largest bank,
with 444 branches countrywide.  It had total assets of THB 736.5
billion or US$19.6 billion on September 30, 2006.

The Thai military's stake in TMB has declined significantly
since the Asian financial crisis of 1997 and now stands at about
4.7%.  The Thai Ministry of Finance is the largest shareholder
with 31.2%. Singapore's DBS bank holds 16.1%.


                          *     *    *

Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders  
financial services to all groups of customers.   TMB Bank had
total assets of about THB717 billion as at December 31, 2005.

Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.

Moody's Investor Service gave TMB Bank a 'Ba1' Junior
Subordinated Debt Rating and an 'E+' Bank Financial Strength
Rating.

Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.


* Fitch Sees Stable Outlook for AsPac Technology Sector in 2007
---------------------------------------------------------------  
Fitch Ratings commented that it expects the market conditions
for the Asia-Pacific technology sector to be relatively benign
in 2007, leading to a stable credit outlook for most companies
in the sector.

"Although the long-term underlying operating environment for the
technology sector will remain cyclical due to technological
advancements, intense competition, and lumpy capital
investments, conditions are expected to be relatively stable in
2007," said Chee-Leong Lee, regional head of Fitch's Asia-
Pacific telecom, media and technology team, in a special report
on the industry outlook.  Hence, Fitch expects most of its rated
technology companies to maintain their business and financial
risk profiles throughout the year.

The agency believes that demand will continue to grow for most
technology products, especially for mobile handsets, personal
computers and audio-visual products.  Besides replacement
demand, volume growth should be supported by falling prices,
increased market penetration, and new product
designs/applications.  The emerging markets in Asia-Pacific are
also expected to see strong demand growth in view of their
robust economic growth and rising consumer affluence.

"Sound capacity planning decisions for the capital intensive
technology industry will continue to drive sector demand-supply
dynamics and influence the financial health of companies," added
Mr. Lee.  In that regard, Fitch notes that major thin film
transistor liquid crystal display panel producers are planning
to restrain capacity growth in an effort to improve sector
supply-demand conditions and thereby help to mitigate product
price declines and improve cash generation.  The TFT-LCD panel
producers have been generating negative free cash flow over the
past few years due to hefty capital expenditure.

"Although leveraged buyout transactions by private equity firms
could occur in certain markets or sub-sectors, major
consolidation activity that materially changes the industry's
structure is less likely," commented Mr Lee.  Fitch expects any
future industry consolidation to involve smaller players seeking
to enhance their competitive positions and technological
capabilities.  On the other hand, the agency says that the
positive results from the internal restructuring initiatives of
several Japanese electronics companies may encourage more such
activities.

Against the stable operating conditions, Fitch weighs the
heightened risk of a slowdown in global economic growth in 2007
in view of the expansion over the past few years, which may then
affect demand for technology products.  Operating margins and
earnings will also be affected by continuing pricing pressures
due to production efficiency gains, product commoditisation, and
intensifying competition.  Nevertheless, Fitch expects the
healthy cash flow from operations, moderate capital expenditure
and modest shareholder distributions among most of its rated
technology companies will enable them to generate positive free
cash flow and reduce their requirement for incremental leverage.

The report covers various technology sub-sectors where the Asia-
Pacific region has a strong presence, such as dedicated
integrated circuit foundry services, personal computers, TFT-LCD
panels, and consumer electronics products.  Companies reviewed
include Acer Inc. ('BBB-'/Stable), AU Optronics Corp.
('BB'/Stable), Chartered Semiconductor Manufacturing Ltd ('BBB-'
/Stable), Fujitsu Limited ('BBB'/Positive), Hitachi Ltd
('A'/Negative Watch), LG Electronics Inc ('BBB-'/Stable),
Matsushita Electric Industrial Co., Ltd ('AA-'/Stable),
Mitsubishi Electric Corporation ('BBB+'/Stable), NEC Corporation
('BBB'/Stable), Samsung Electronics Co., Ltd ('A+'/Stable),
Sanyo Electric Co., Ltd ('BB+'/Stable), Sharp Corporation
('A+'/Stable), Sony Corporation ('BBB+'/Negative), Taiwan
Semiconductor Manufacturing Company, Ltd ('A-'/Stable), Toshiba
Corporation ('BBB'/Stable) and United Microelectronics Corp
('BBB'/Stable).



                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Nolie Christy Alaba, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara
Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,
Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
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 ***