TCRAP_Public/070201.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

           Thursday, February 1, 2007, Vol. 10, No. 23

                            Headlines

A U S T R A L I A

AUSTAR UNITED: Posts AU$21.3-Million Profit for 2006 Third Qtr.
AUSTAR UNITED: Sets a 10.13% Interest Rate for STARS
AWB LIMITED: Receives Complaint Over U.N. "Oil-for-Food" Fraud
BAR RISTRETTO: Members and Creditors to Receive Wind-Up Report
BDB ENTERPRISES: Schedules Final Meeting on February 28

CLINICAL STRATEGIES: To Hold Members' Final Meeting on Feb. 28
CRESTWORLD PTY: Receivers and Managers Cease to Act
EMPIRE COMMERCIAL: Creditors Opt to Wind Up Firm
GRADWELL MANUFACTURING: Members and Creditors to Meet on Feb. 22
HUTCHISON TELECOMMUNICATIONS: Posts AU$524.70MM Net Loss in 9MO

INDOPHIL RESOURCES: Xstrata Acquires 62.5% of Tampakan Project
INTELLECT HOLDINGS: Posts AU$10.5MM Loss for Year Ended June 30
INTELLECT HOLDINGS: Director Paul Phillips Resigns
INTELLECT HOLDINGS: Cadmus Merger Still in the Works
KH FOODS: Posts AU$39.51-Mil. Net Loss for Full Year 2006

KH FOODS: Completes Renounceable Rights Issue
KH FOODS: Issues 16,430,702 Ordinary Shares
LAFAYETTE MINING: Auditors Raise Going Concern Doubt
LAFAYETTE MINING: Rapu-Rapu Plant Remediation Prog. on Schedule
MANNING & MANNING: To Declare First and Final Dividend

RANTECH AUSTRALIA: Members Opt to Close Business
SPARK BRAND: To Declare First and Final Dividend on March 6
STOKER FIREPLACES: Final Meetings Slated for February 22


C H I N A   &   H O N G  K O N G

AGRICULTURAL BANK: Reform Likely to Start in Second Half
APEX TRADE: Members to Receive Wind-Up Report on February 27
BENQ MOBILE: Claims Registration Ends February 23
BENQ CORP: Bacoc Fails to Submit Bid for Bankrupt Mobile Unit
CERBERUS INVESTMENTS: Creditors Must Prove Debts by Feb. 25

CHINA SOUTHERN: Returns to Profit in 2006 Due to Strong Yuan
CHINA SOUTHERN: Plans to Buy 12 Boeing 777 for US$2.88 Billion
DONG FANG: Sole Shareholder Appoints Liquidators
GRACEROCK LIMITED: Placed Under Voluntary Wind-Up
K SOLUTIONS: Shareholders Pass Resolution to Wind Up Firm

LIN KEE: Members' Final Meeting Slated for February 28
MELO BIOTECH: Sells Computer Business to MIAD Information
MELO BIOTECH: Has CDN$298,318 Stockholders' Deficit at Sept. 30
NETEGRITY CHINA: Ross and Arboit to Act as Liquidators
OG DEVELOPMENT: Wind-Up Hearing Set for February 7

ORIENTAL YOUTH: Creditors' Proofs of Debt Due on February 16
POWER TEAM: Schedules Members' Final Meeting on March 2
SKY LEADER: Court to Hear Wind-Up Petition on February 7


I N D I A

BANK OF INDIA: S&P Lifts Rating to 'BBB-' and Keeps BFSR at 'C'
EXIM BANK: S&P Upgrades Issuer Credit Ratings from BB+ to BBB-
ICICI BANK: S&P Lifts Rating to 'BBB-' and Maintains 'C' BFSR
ICICI BANK: Sharp Rise in Revenue Ups 4th Quarter Profit by 42%
INDIAN OIL: S&P Lifts Corporate Credit Rating to BBB- from BB+

INDIAN OVERSEAS BANK: S&P Keeps 'C' Fundamental Strength Rating
INDUSTRIAL DEVELOPMENT BANK: S&P Lifts BSFR from 'D+' to 'C'
NTPC LTD: S&P Lifts Credit Ratings After India Sovereign Upgrade
POWER FINANCE: Sovereign Upgrade Cues S&P to Lift Ratings
ROYAL & SUN: Writing Down U.S. Operation to Fair Value for 2006

STATE BANK OF INDIA: Bank Rating Stays at 'C', S&P Says
TATA POWER: Moody's Reviews Ratings For Possible Downgrade
UTI BANK: S&P'S Bank Fundamental Strength Rating Still at 'C'
* S&P Raises India's Sovereign Credit Rating to Investment Grade


I N D O N E S I A

BANK BUANA: Fitch Affirms Ratings & Revises Outlook to Positive
BANK DANAMON: Fitch Affirms 'BB-' LT Ratings w/ Positive Outlook
BANK INTERNASIONAL: Fitch Affirms 'B' Short-term Ratings
BANK LIPPO: Fitch Affirms Ratings & Revises Outlook to Positive
BANK MANDIRI: Fitch Affirms B Short-Term Rating w/ Pos. Outlook

BANK NEGARA: Fitch Affirms Ratings & Revises Outlook to Positive
BANK NIAGA: Fitch Affirms Ratings & Revises Outlook to Positive
BANK NISP: Fitch Affirms BB Long-Term Ratings w/ Pos. Outlook
BANK RAKYAT: Fitch Affirms Individual 'C/D' Rating
MARSH & MCLENNAN: To Reveal 4Q & Year-End '06 Results on Feb. 13

TELKOM INDONESIA: To Raise 2007 Capex by 34% to IDR28 Trillion
TUPPERWARE BRANDS: Reports Fourth Quarter EPS at 65 Cents


J A P A N

ELAN CORP: Fourth Quarter and Annual Results Out February 20
FORD MOTOR: Loss Wasn't A Surprise, Says UAW President
JAPAN AIRLINES: To Withdraw from 10 Domestic Routes
JAPAN AIRLINES: To Sell 30% Stake in Jalux to Sojitz
M. FABRIKANT & SONS: Secures Additional Financing from Lenders

NIKKO CORDIAL: Top Executives Aided Fraud, Special Panel Says
NIKKO CORDIAL: Probe Findings Cause Shares to Plunge
SANYO ELECTRIC: Posts JPY7.3-Bil. Group Net Loss for 3rd Quarter
US AIRWAYS: CEO Calls on Senate to OK Airline Industry Changes
US AIRWAYS: Improved Bid Grants Recovery for Delta Air Creditors

US AIRWAYS: Keeps Mum on Upped Delta Air Offer
XM SATELLITE: Could Not Merge With SIRIUS Says FCC Chairman


K O R E A

BOWATER INC: Signs Abitibi-Consolidated All-Stock Merger Deal
BOWATER INC: Abitibi Merger Cues Moody's to Hold Low-B Ratings
INDUSTRIAL BANK OF KOREA: Moody's Maintains BFSR at 'D-'
INDUSTRIAL BANK OF KOREA: JPY50B Samurai Debt Gets S&P's 'A-'


M A L A Y S I A

FOAMEX INT'L: Stockholders Unanimously Support Joint Plan
METROPLEX BERHAD: Bursa Extends Scheme Filing Date to Feb. 28
METROPLEX BERHAD: Court Sets Important Hearing Dates
MYCOM BERHAD: Unit & Olympia Properties Ink Trust Deed with OSK
SOLUTIA INC: Balks at Panel's Intervention on Calpine Talks

SOLUTIA INC: Wants Court to Increase OCP Payment to US$15 Mil.


N E W   Z E A L A N D

ANGLO CERTIFIED: Shareholders Opt to Liquidate Business
BRILL REALTY: Official Assignee Acts as Liquidator
CHEFS FOODS: Shareholders Resolve to Liquidate Business
ELLAR SECURITY: Faces Liquidation Proceedings
HOWARD ELECTRICAL: Court Sets Liquidation Hearing for Feb. 5

M.M.M. LTD: Court to Hear Liquidation Petition on Feb. 2
PINE HAULAGE: Faces CIR's Liquidation Petition
PUKEHANA LTD: Commences Liquidation Proceedings


P H I L I P P I N E S

EXPORT & INDUSTRY BANK: Board Schedules ASM on May 23
PHILIPPINE LONG DISTANCE: Board Declares Cash Dividends
RIZAL COMMERCIAL: Consolidates President-CEO Position
RIZAL COMMERCIAL: BSP Approves 15% Stock Dividend
VITARICH CORPORATION: Receiver Delivers Interim Report

* RP's Sovereign Rating Upgrade Long Overdue, DBS Says
* New 2007 PHP1.13 Trillion Budget to Spur Growth, Officials Say


S I N G A P O R E

AAR CORP: Names Rono Dutta as Strategic Advisor
COMPACT METAL: Directors Reduce Holdings of Deemed Shares
GL CAPITAL: Enters Wind-Up Proceedings
HIGHLAND PARTNERS: Liquidator to Receive Claims Until Feb. 26
ODYSSEY RE: To Release 4th Qtr. Results on February 22

OVERSEAS SHIPHOLDING: Sells 4.6 Million Shares of DHT Stocks
POLYONE CORP: Net Profit Down to US$14.4 Mil. in 4th Qtr. 2006
POLYONE CORP: Taps Chappelow as VP for Research & Innovation
SHIP FINANCE: Sells Suezmax Tankers to Frontline for US$183.7MM
TRANS WORLD: Undergoes Liquidation Proceedings


T H A I L A N D

iTV PCL: May Get Another Extension to Repay Concession Debt
TMB BANK: Chulakorn to Replace Sommai as Executive Chairman

     - - - - - - - -

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

AUSTAR UNITED: Posts AU$21.3-Million Profit for 2006 Third Qtr.
---------------------------------------------------------------
Austar United Communications Limited reported a profit before
interest and tax amounting to AU$21.3 million for the third
quarter of 2006, up 34% from the AU$15.8 million recorded for
the third quarter of 2005, the company said in its third quarter
results announcement.

Total television subscribers were 590,987, following a net
Subscriber gain for the third quarter of 20,109, the second
successive quarter of more than 20,000 additions.

Other highlights for the third quarter include total revenue,
which increased 11% to AU$128.6 million from the same quarter in
2005, driven by this strong Subscriber growth, and a 4%
recurring residential television ARPU increase to
U$69.41 against the same period last year.

   * Customer churn also remained low at 1.15%, down from 1.28%
     in the previous quarter.

   * Average revenue per subscriber is up to AU$69.41 (an
     increase of 4.4%)

   * Increased penetration in residential additional outlets to
     23%

   * Finalisation and payment of capital return to shareholders
     of 16 cents per share.

The company posted a gross margin of AU$71.1 million for the
quarter in review.

Earnings before interest, taxation, depreciation and
amortisation for the nine months increased by 8% to
AU$101.9 million compared to the same period last year.  This
reflected a 13% increase in gross margin to AU$202.5 million,
and a 19% increase in operating expenses to AU$101 million.
These operating cost increases are due to the ongoing success of
AUSTAR's aggressive Subscriber growth strategies and ongoing
investment in new activity which are important to the ongoing
growth of the company.

Chief Executive Officer John Porter said, "this quarter, we
elected to invest in subscriber acquisition to continue the
strong momentum established in the first half of 2006.  Given
the average residential customer life is now over six years,
this increased investment in sales and marketing delivers
terrific returns."

Profit before interest and tax was AU$60.6 million for the nine
months -- a 35% increase compared to the same period in 2005.
This increase reflects the Company's strong operational
performance.

Available liquidity as at September 30, 2006 was up 6.5% to
AU$113.6 million for the quarter compared to the same period
last year.  Capital expenditure increased to AU$25.7 million for
the quarter, reflecting the strong Subscriber gains.

As of Sept. 30, 2006, the company had a net debt standing of
AU$486.4 million.

                       About Austar United

New South Wales, Australia-based Austar United Communications
Limited -- http://www.austarunited.com.au/-- is a subscription  
television provider, offering primarily digital satellite
services to customers in regional and rural areas in Australia.  
AUSTAR also offers dial-up Internet and mobile phone services.  
The company has two business segments: Subscription services and
Radio spectrum licenses.  Subscription services represent
subscription television distribution operations, Internet,
interactive television and mobile telephony operations and
license fee income.  Radio spectrum licenses represent income
and gains earned from the leasing of radio spectrum licenses.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 26, 2007, that Austar's balance sheet as of Jan. 25
recorded US$231.54 million in total assets and
US$52.58 million in stockholders' equity deficit.


AUSTAR UNITED: Sets a 10.13% Interest Rate for STARS
----------------------------------------------------
Austar United Communications Limited has announced a 10.13%
interest rate for the ninth Interest Period on the Subordinated
Transferable Adjustable Redeemable Securities from Oct. 31,
2006, to Jan. 30, 2007, the company said in a press release.

This rate is calculated in accordance with the terms of issue
and is the sum of the 90-day Bank Bill Swap Rate of 6.38% on the
first day of the Interest Period plus the margin of 3.75%.  This
rate is applicable to the interest that will be paid on Jan. 31,
2007.

Interest is only payable to those persons registered as STARS
holders on the record date for that interest payment date.  The
record date applicable to the interest payment date is Jan. 23,
2007.

The interest rate for the next interest period for STARS will be
set on January 31, 2007.

                      About Austar United

New South Wales, Australia-based Austar United Communications
Limited -- http://www.austarunited.com.au/-- is a subscription  
television provider, offering primarily digital satellite
services to customers in regional and rural areas in Australia.  
AUSTAR also offers dial-up Internet and mobile phone services.  
The company has two business segments: Subscription services and
Radio spectrum licenses.  Subscription services represent
subscription television distribution operations, Internet,
interactive television and mobile telephony operations and
license fee income.  Radio spectrum licenses represent income
and gains earned from the leasing of radio spectrum licenses.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 26, 2007, that Austar's balance sheet as of Jan. 25
recorded US$231.54 million in total assets and
US$52.58 million in stockholders' equity deficit.


AWB LIMITED: Receives Complaint Over U.N. "Oil-for-Food" Fraud
--------------------------------------------------------------
Australian wheat exporter AWB Ltd. said in a brief statement to
the Australian Securities Exchange that it had been served with
a class action complaint filed on behalf of northern Iraqi
beneficiaries of the United Nations' oil-for-food program, The
Associated Press reports.

AWB stated that it will seek the dismissal of the suit that is
pending with the United States District Court for the Southern
District of New York.

Osen and Associate, together with three other law firms, filed
the suit against BNP Paribas and AWB Ltd., (Class Action
Reporter, Dec. 26, 2006).   

According to the lawsuit, residents of the Irbil, Dohuk and
Sulaimaniyah areas of Iraq claimed they did not receive the full
benefits to which they were entitled during the period June 10,
1999, to June 3, 2003.

Under the U.N. program Iraq's oil was sold on the world market,
the proceeds of which were to be used to purchase food,
medicines and other items not embargoed after the 1991 Gulf war.

The lawsuit claims BNP paid as much as US$1.5 billion in
kickbacks to Saddam Hussein's deposed government while AWB paid
more than US$200 million.

A U.N. report last year found out that AWB paid US$221.7 million
in kickbacks to a trucking company linked to Hussein's
government (Class Action Reporter, Nov. 20, 2006).

Earlier this year, retired Judge Terence Cole began
investigating AWB for payments it made in Iraq through the
United Nations' oil-for-food program.  

In his final report, public hearings for which began in January,
Judge Cole found AWB, 11 of its former executives, and one
former BHP Billiton executive may have broken Australian laws,
including criminal and banking codes.  

The lawsuit is seeking at least US$200 million in damages under
the Racketeer Influenced and Corrupt Organizations Act, the
Foreign Corrupt Practices Act, and the International Emergency
Economic Powers Act.

For more details, contact Joshua D. Glatter of Osen & Associate,
LLC, 700 Kinderkamack Road, Oradell, New Jersey 07649, (Bergen
Co.), Phone: 201-265-6400, Fax: 201-265-0303, Web Site:
http://www.lawyers.com/osen.

                          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.


BAR RISTRETTO: Members and Creditors to Receive Wind-Up Report
--------------------------------------------------------------
The members and creditors of Bar Ristretto Pty Ltd will meet on
Feb. 28, 2007, at 10:00 a.m., to receive the liquidator's report
regarding the company's wind up proceedings.

As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Oct. 6, 2006.

The liquidator can be reached at:

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

                      About Bar Ristretto

Bar Ristretto Pty Limited is a restaurant.

The company is located in New South Wales, Australia.


BDB ENTERPRISES: Schedules Final Meeting on February 28
-------------------------------------------------------
BDB Enterprises Pty Ltd, which is in liquidation, will hold a
final meeting for its members and creditors on Feb. 28, 2007, at
2:30 p.m.

During the meeting, the members and creditors will receive the
liquidator's final receipts, payments and formal notice of the
end of the administration.

The liquidator can be reached at:

         Jason Bettles
         Worrells Solvency & Forensic Accountants
         Level 6, 50 Cavill Avenue
         Surfers Paradise, Queensland 4217
         Australia
         Web site: http://www.worrells.net.au

                      About BDB Enterprises

BDB Enterprises Pty Ltd provides business services.

The company is located in Queensland, Australia.


CLINICAL STRATEGIES: To Hold Members' Final Meeting on Feb. 28
--------------------------------------------------------------
The members of Clinical Strategies Pty Ltd, which is in
liquidation, will hold a final meeting on Feb. 28, 2007, at
10:00 a.m., to:

   -- receive and adopt the report of the liquidator's act and
      dealings during the conduct of the wind-up;

   -- receive and adopt the Australian Securities and
Investments
      Commission Form 524 Accounts and Statement of the
      liquidator; and

   -- transact other business.

The liquidator can be reached at:

         Ian Alexander Cattanach
         124 Pebble Beach Drive, Runaway Bay
         Queensland, 4216
         Australia

                   About Clinical Strategies

Clinical Strategies Pty Ltd operates computer software stores.

The company is located in Victoria, Australia.


CRESTWORLD PTY: Receivers and Managers Cease to Act
---------------------------------------------------
On Jan. 11, 2007, Bruno A. Secatore and Daniel P Juratowitch
ceased to act as receivers and managers of Crestworld Pty Ltd.

According to the Troubled Company Reporter - Asia Pacific,
Benchmark Debtor Finance Pty Ltd appointed Messrs. Secatore and
Juratowitch as the receivers and managers on June 30, 2006.

The former Receivers and Managers can be reached at:

         Bruno A. Secatore
         Daniel P Juratowitch
         Cor Cordis
         Chartered Accountants
         406 Collins Street, Melbourne 3000
         Australia

                      About Crestworld Pty

Crestworld Pty Ltd -- trading as Transmotion; Medcalf Transport
-- is engaged with the arrangement of transportation of freight
and cargo.

The company is located in Victoria, Australia.


EMPIRE COMMERCIAL: Creditors Opt to Wind Up Firm
------------------------------------------------
The creditors of Empire Commercial Properties Pty Ltd -- trading
as Big Shanes-Mega Camping and Outdoor Store -- met on Jan. 18,
2007, and resolved to wind up the company's operations.

Accordingly, James Alexander Shaw & Paul William Gidley were
appointed as liquidators.

The Liquidators can be reached at:

         James Alexander Shaw
         Paul William Gidley
         Ferrier Hodgson
         Chartered Accountants
         Level 3, 2 Market Street
         Newcastle, New South Wales 2300
         Australia

                     About Empire Commercial

Empire Commercial Properties Pty Ltd -- trading as Greenhills
Camping World and Greenhilss Camping World -- operates sporting
goods stores and bicycle shops.

The company is located in New South Wales, Australia.


GRADWELL MANUFACTURING: Members and Creditors to Meet on Feb. 22
----------------------------------------------------------------
The members and creditors of Gradwell Manufacturing Pty Ltd --
in voluntary liquidation -- will meet on Feb. 22, 2007, at
10:30 a.m., to:

   -- receive an account of the liquidators;

   -- consider and if thought fit destroy the books and records
      of the company; and

   -- discuss other business.

The joint and several liquidators can be reached at:

         Terry Grant van der Velde
         David Michael Stimpson
         SV Partners Pty Ltd
         138 Mary Street
         Brisbane, Queensland
         Australia
         Web site: http://www.svpartners.com.au

                   About Gradwell Manufacturing

Gradwell Manufacturing Pty Ltd operates offices of holding
companies.

The company is located in Queensland, Australia.


HUTCHISON TELECOMMUNICATIONS: Posts AU$524.70MM Net Loss in 9MO
---------------------------------------------------------------
Hutchison Telecommunications (Australia) Limited has announced
in a press release the results for the first half of 2006,
reporting continued improvements in financial performance,
including service revenue growth buoyed by non-voice services
and the rapid expansion of 3's customer base, which nearly
doubled from June 30, 2005.  Now, 3 has over one million
customers including 284,000 customers that upgraded from its 2G
CDMA network, which closed on Aug. 9, 2006.

   * 3G operation now EBITDA positive

   * Service revenue up 16% to AU$423.6 million

   * 284,000 2G customers upgrade to 3G

   * 3G base nearly doubles from June 30, 2005 to 1,044,000

3 is majority owned by Hutchison Telecommunications.

Service revenue for the period increased by 16% on the previous
corresponding period to AU$423.6 million.  Non-voice revenue
increase supported that growth as customers continued to access
more content and data with 3. 3's non-voice ARPU grew from
AU$16 to AU$19 by the corresponding period in 2005, while the
average monthly margin per customer across the combined customer
base was steady at AU$48.

As revenue increased and costs reduced, the business achieved
positive EBITDA of AU$1.3 million for the period, before
accounting for the one-off impact of the 2G upgrade activities.  
Excluding these 2G upgrade costs, operating expenditure fell by
AU$70 million, or almost 18%, on the previous corresponding
period to AU$321.1 million despite the overall increase in the
customer base.  Similarly, the average cost of customer
acquisition was reduced by 38% from AU$427 in the previous
corresponding period to AU$265, on the back of lower handset
prices and an improved range of handsets.

3's customer base rose from 532,000 at June 30, 2005 to
1,044,000 at 30 June 2006, with 922,000, or 88.3%, of 3's
customers being post-paid.  Customers using 3's content services
have also increased.  During the period, 57% of 3's customers
were actively generating billable content events.

3's Mobile TV service expanded during the first half of 2006 to
include new channels such as SBS and MTV.  Customers were also
able to enjoy live action from the soccer World Cup with SBS
live coverage and see the official FIFA video highlights on
their 3 mobile - customers watched over 900,000 World Cup
moments.

3 also provided 24/7 coverage of Network Ten's Big Brother show,
and again saw increased usage over last year, with 3.5 million
streams accessed during the show's season.

Overall, usage of content services grew from 19.6 million events
in the previous corresponding period to 41.6 million events.

The closure of Hutchison's 2G CDMA network and business is
complete and largely accounted for in the reporting period.  The
benefit of savings related to its closure is already being seen
in the business, as is the focus on a single brand and business
- 3.

Financial and operating highlights compared to the prior year
corresponding period include:

   * 16% increase on corresponding period in service revenue to
     AU$423.6 million

   * Positive EBITDA of AU$1.3 million

   * 3's non-voice monthly ARPU up from AU$16 to AU$19

   * Average monthly margin per customer of AU$48, for all
     customers

   * 43% decrease in CAPEX to AU$84 million

   * 18% decrease in running operating expenditure to
     AU$321 million

   * 284,000 customers upgrading from 2G to 3G

   * Increase in 3G customer base from 532,000 to 1,044,000

   * Over 88% of 3's customers are post-paid customers

               Consolidated Financial Statements

The consolidated entity, however, recorded an AU$524.70 million
net loss for the nine months ending June 30, 2006.  

As of June 30, 2006, the group had a capital deficiency of
AU$1.60 billion, on total assets of AU$2.05 billion.

                        About Hutchison

Headquartered in New South Wales, Australia, Hutchison
Telecommunications (Australia) Limited --
http://www.hutchison.com.au/-- is engaged in the ownership and  
operation of wideband code division multiple access (W-CDMA),
third-generation (3G) mobile network (branded 3) across the five
mainland capital cities and national capital, Canberra; the
ownership and operation of a code division multiple access
(CDMA) network (branded Orange) mobile in and around Sydney and
Melbourne, and a national paging and messaging service under the
Orange brand.

3 is part of the global telecommunication operations of
Hutchison Whampoa Limited.  In February 2006, Hutchison re-
branded its CDMA network to 3 CDMA.  3 CDMA provides customer
with voice and basic messaging services.  3 also provides a
range of paging, messaging and portable information services.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 26, 2007, that Hutchison's balance sheet as of Jan. 25
recorded US$1696.65 million in total assets and
US$786.31 million in stockholders' equity deficit.


INDOPHIL RESOURCES: Xstrata Acquires 62.5% of Tampakan Project
--------------------------------------------------------------
Indophil Resources NL discloses that Xstrata Queensland Limited
has exercised its option to acquire 62.5% of the Tampakan
Copper-Gold Project in the southern Philippines, Indophil said
in a press release.

Indophil and Xstrata Copper will now work through a period of
transition with completion of the exercise and management
handover of the project to occur on March 30, 2007.

In welcoming the Xstrata Copper decision, Indophil Managing
Director Tony Robbins, said "Indophil is pleased that Xstrata,
one of the world's leading diversified mining groups, has taken
a direct involvement in what is one of the world's most exciting
copper-gold projects.  This is a great step forward for the
project, Indophil shareholders and all other stakeholders in the
Tampakan project.  We look forward to working closely with the
Xstrata Copper team to ensure that the project development
program remains on track."

Xstrata Copper's decision to exercise its option follows
announcements on Nov. 1, 2006, advising that following the
delivery of Indophil's AU$27 million pre-feasibility study,
Xstrata Copper would solely fund further work to determine its
position.

The Tampakan deposit is one of the largest undeveloped copper-
gold deposits in the South East Asian - Western Pacific region.
The PFS confirmed that the Tampakan project is a two billion
tonne resource containing 11.6 million tonnes of copper and
14.6 million ounces of gold at a 0.3% copper cut-off grade.

The Tampakan project is located on the southern Philippine
island of Mindanao, approximately 65 kilometers north of General
Santos City.  The project is situated on the tri-boundary of
three provinces - South Cotabato, Sultan Kudurat and Davao Del
Sur.  The Tampakan copper-gold deposit is located in the
Province of South Cotabato, in the Municipality of Tampakan.

                      Ownership Breakdown

The beneficial ownership interest in the project is A class
shareholders - Xstrata Copper 62.5%, Indophil Resources NL 32.5%
and Filipino partner Alsons Corporation 5% with B class
shareholders (limited voting and capped dividend rights) to the

Tampakan Mining Corporation and Southcot Mining Corporation (the
Tampakan Group of Companies).

                    About Indophil Resources

Headquartered in Melbourne, Australia, Indophil Resources NL --
http://www.indophil.com/-- conducts mineral exploration and  
evaluation activities in the Philippines.  On April 12, 2005,
Indophil and Xstrata Queensland Limited (Xstrata Copper) signed
a binding letter of agreement to amend the option granted to
Xstrata Copper to acquire a 62.5% interest in the Tampakan
Copper-Gold Project.  According to the revised agreement,
Indophil is required to sole fund an agreed pre-feasibility
study work program.  

The Troubled Company Reporter - Asia Pacific reported on
Jan. 26, 2007, that Indophil's balance sheet as of Jan. 25
recorded US$37.79 million in total assets and US$69.96 million
in stockholders' equity deficit.


INTELLECT HOLDINGS: Posts AU$10.5MM Loss for Year Ended June 30
---------------------------------------------------------------
Intellect Holdings Limited reported sales revenue from
operations of AU$29.8 million in the fiscal year ended June 30,
2006, compared with AU$32.1 million for the prior fiscal year,
the company said in its annual report.

Since the completion of the capital restructure and debt
settlement in 2005, the company has focused its marketing
activities on sales to traditional customers who acknowledge the
quality of the Intellect product and are willing to pay
reasonable prices.  The company also succeeded in further
reducing its overhead base.  As a result, the company recorded
slightly lower turnover but better margin and lower operating
costs during the year.

The changes to operations have had a marked improvement in the
company's financial performance and have assisted in moving cash
flow closer to breakeven.

During the final quarter to June 30, 2006, the company had won
new orders in Austria totaling over AU$6 million to deliver its
high-end desktop and mobile devices.  This award followed
previous European contracts announced in March 2006 totaling
AU$5 million, and highlighted the continuing success of
Intellect's product range in Europe.

The company commenced manufacturing for these new orders during
the June quarter, which resulted in a net cash outflow from
operations.  Fulfillment of these orders is expected to be
completed early in 2006/07, which means the company entered the
new financial year with an order book in place.

Following a successful spin-off in 2004, Intellect retains a 26%
shareholding in TAFMO Ltd.  TAFMO continues to implement its
business plan and has enjoyed its first success in Europe.  As a
result, Intellect also won new orders for terminals on which the
TAFMO software was deployed.  TAFMO recently announced an
extension of its contract with the Commonwealth Bank and a new
contract with the National Australia Bank.  TAFMO now provides
its value added services solutions in Australia to the
Commonwealth Bank, National Australia Bank and St George Bank.

In the financial year, the company recorded an operating loss
before one-off items of AU$5.8 million.  This compares to a loss
before one-off items in the preceding year of AU$16.5 million.
While this is a marked improvement on the operating losses of
prior years, it demonstrates the need for increased revenues and
cost savings to return to profit.

In total, Intellect recorded a net loss of AU$10.5 million in
the financial year compared to a loss of AU$0.9 million in the
prior year.

The reported loss included one-off items totaling AU$4.7 million
most of which were announced at the half-year including
inventory write downs in anticipation of the need to comply with
the European Union directive, effective July 1, 2006, imposing
lead-free requirements for products and components and
provisions for legal costs and restructuring.  The prior years
result included a AU$15.5 million profit on the sale of the
TAFMO value added services business and a AU$2.4 million gain on
debt forgiveness from the debt restructure.

At June 30, 2006 the company held significant available working
capital facilities, which together with cash balances exceeded
AU$7 million.  In addition, the company had outlaid a
considerable amount for pre-purchases of product against firm
orders and as these orders are fulfilled, first half cash flow
in the 2006/07 financial year will benefit accordingly.

               Significant Doubt on Going Concern

After auditing its annual report for the year ended June 30,
2006, PriceWaterhouseCoopers, the company's independent
auditors, stated that there is significant uncertainty whether
the entity will be able to continue as a going concern.  The
auditors pointed out that in the financial year ended June 30,
2006, the company has recorded a net loss of AU$10.5 million and
a net operating cash outflow of AU$3.6 million.  The company
also has net liabilities of AU$1.1 million and net current
liabilities of AU$2.4 million as of June 30, 2006.

The auditors added that the continuing viability, in the short
term, of the consolidated entity and its ability to continue as
a going concern and meet its debts and commitments as and when
they fall due remains dependent upon generating revenues and
cash flows, reducing operating costs, achieving delivery
schedules, working within available funding facilities and
achieving a favorable outcome on legal claims outstanding.

                    About Intellect Holdings

Headquartered in New South Wales, Intellect Holdings Limited --
http://www.intellect.com.au/-- operates predominantly in the  
design, marketing, distribution and manufacturing of security
and electronic funds transfer and encapsulated solid state
keyboard technology.  The company carries out its operations in
Australia/Asia and Europe/Americas.  The areas of operation in
Australia are principally sales, distribution, service, assembly
and research and development, as well as certain head office
activities.  Other distribution operations are carried on from
its Hong Kong office (Intellect Asia Limited).

Belgium is the home country of the main operating entity
Intellect International NV and the physical location of the
company's head office.  Intellect International NV carries out
sales, distribution, service, assembly, manufacturing and
research & development activities.  On July 5, 2006, Intellect
and Cadmus Technology Limited (Cadmus) announced a proposal to
merge their businesses.


INTELLECT HOLDINGS: Director Paul Phillips Resigns
--------------------------------------------------
Intellect Holdings Ltd. announces in a corporate disclosure to
the Australian Securities Exchange that Paul Phillips has
resigned as a director of the company and its subsidiaries --
Intellect Overseas Limited, Intellect Technologies Pty. Ltd. and
Techway Pty. Ltd. -- effective Dec. 31, 2006.

                    About Intellect Holdings

Headquartered in New South Wales, Intellect Holdings Limited --
http://www.intellect.com.au/-- operates predominantly in the  
design, marketing, distribution and manufacturing of security
and electronic funds transfer and encapsulated solid state
keyboard technology.  The company carries out its operations in
Australia/Asia and Europe/Americas.  The areas of operation in
Australia are principally sales, distribution, service, assembly
and research and development, as well as certain head office
activities.  Other distribution operations are carried on from
its Hong Kong office (Intellect Asia Limited).

Belgium is the home country of the main operating entity
Intellect International NV and the physical location of the
company's head office.  Intellect International NV carries out
sales, distribution, service, assembly, manufacturing and
research & development activities.  On July 5, 2006, Intellect
and Cadmus Technology Limited (Cadmus) announced a proposal to
merge their businesses.

               Significant Doubt on Going Concern

After auditing its annual report for the year ended June 30,
2006, PriceWaterhouseCoopers, the company's independent
auditors, stated that there is significant uncertainty whether
the entity will be able to continue as a going concern.  The
auditors pointed out that in the financial year ended June 30,
2006, the company has recorded a net loss of AU$10.5 million and
a net operating cash outflow of AU$3.6 million.  The company
also has net liabilities of AU$1.1 million and net current
liabilities of AU$2.4 million as of June 30, 2006.

The auditors added that the continuing viability, in the short
term, of the consolidated entity and its ability to continue as
a going concern and meet its debts and commitments as and when
they fall due remains dependent upon generating revenues and
cash flows, reducing operating costs, achieving delivery
schedules, working within available funding facilities and
achieving a favorable outcome on legal claims outstanding.


INTELLECT HOLDINGS: Cadmus Merger Still in the Works
----------------------------------------------------
Intellect Holdings Group disclosed that it is still working with
Cadmus Technology Limited on the revised agreement for Cadmus to
acquire Intellect's operating subsidiary, Intellect
International NV, Intellect said in a press release.

Cadmus Managing Director Ian Bailey said that while it is
unfortunate that the process was taking longer than originally
planned, it is also equally important to ensue that both parties
are comfortable with the final agreement to consolidate
Intellect's assets into Intellect International NV.  Mr. Bailey
added that the proposed merger is a complex commercial
transaction, which, both parties want to make sure is the very
best it can be for both sets of shareholders.

Both parties announced the proposed merger in July 2006, the new
proposed merged group would have a strong presence in Asia
Pacific and Europe and will be well placed to capitalize on the
growing adoption of new EMV (Europay, Mastercard, Visa) payment
infrastructure globally.

The proposed merger will result in a wholly owned subsidiary of
Cadmus acquiring all of the shares, options and convertible
notes in Intellect.  In consideration:

   * Intellect shareholders will receive 3.33 Cadmus shares for
     every one Intellect share held.

   * Intellect convertible noteholders will receive 3.33 Cadmus
     shares for every one Intellect share to which they are
     otherwise entitled.  The other terms and conditions will
     remain unchanged except that the conversion price will be
     NZ22 cents per Cadmus share.

   * Intellect optionholders will receive 3.33 options in Cadmus
     (on the same terms and conditions as the current Intellect
     options; however, the exercise price will be NZ28-269
     cents) for every one Intellect option held.

During negotiations of the Scheme of Arrangement terms, and
after reviewing the implications of the structure for
shareholders of both companies it became apparent that the best
outcome was for Intellect to sell its core payment terminal
business and take a shareholding in Cadmus.  The original terms
were changed in October 2006.  

Intellect will undergo a name change and become a technology
investment company with an immediate focus on the payment
sector.  Its key assets will be a 39% shareholding in Cadmus and
a 26% shareholding in TAFMO.  The company will have three
directors appointed to the Cadmus board.

                    About Intellect Holdings

Headquartered in New South Wales, Intellect Holdings Limited --
http://www.intellect.com.au/-- operates predominantly in the  
design, marketing, distribution and manufacturing of security
and electronic funds transfer and encapsulated solid state
keyboard technology.  The company carries out its operations in
Australia/Asia and Europe/Americas.  The areas of operation in
Australia are principally sales, distribution, service, assembly
and research and development, as well as certain head office
activities.  Other distribution operations are carried on from
its Hong Kong office (Intellect Asia Limited).

Belgium is the home country of the main operating entity
Intellect International NV and the physical location of the
company's head office.  Intellect International NV carries out
sales, distribution, service, assembly, manufacturing and
research & development activities.  On July 5, 2006, Intellect
and Cadmus Technology Limited (Cadmus) announced a proposal to
merge their businesses.

               Significant Doubt on Going Concern

After auditing its annual report for the year ended June 30,
2006, PriceWaterhouseCoopers, the company's independent
auditors, stated that there is significant uncertainty whether
the entity will be able to continue as a going concern.  The
auditors pointed out that in the financial year ended June 30,
2006, the company has recorded a net loss of AU$10.5 million and
a net operating cash outflow of AU$3.6 million.  The company
also has net liabilities of AU$1.1 million and net current
liabilities of AU$2.4 million as of June 30, 2006.

The auditors added that the continuing viability, in the short
term, of the consolidated entity and its ability to continue as
a going concern and meet its debts and commitments as and when
they fall due remains dependent upon generating revenues and
cash flows, reducing operating costs, achieving delivery
schedules, working within available funding facilities and
achieving a favorable outcome on legal claims outstanding.


KH FOODS: Posts AU$39.51-Mil. Net Loss for Full Year 2006
---------------------------------------------------------
KH Foods Limited posted a consolidated net loss of
AU$39.51 million for the year ending July 31, 2006, more than
fourfold the AU$8.38 million net loss posted for the year ending
July 31, 2005, the company said in its annual report.

For the year in review, the company recorded consolidated
revenue of AU$104.15 million, other income of AU$2.85 million,
and expenses of AU$146.51 million.

As of July 31, 2006, the company has total assets of
AU$81.33 million, total liabilities of AU$83.57 million, giving
the company a capital deficiency of AU$2.24 million.

                         About KH Foods

KH Foods Limited -- http://www.keithharris.com.au/-- is an  
Australia-based company engaged in the manufacture and sale of
bakery products, such as savories, cakes, desserts and bread.  
It operates in three business divisions: flavor and fragrances
division, which is engaged in the manufacture and sale of
flavors, essences and colors to the food industry, and
fragrances and colors to the industrial and cosmetic industries;
bakery division, which is engaged in the manufacture and sale of
bakery products, and investments division, which is engaged in
investments in shares listed on prescribed stock exchange,
dividend revenue and interest on short term deposits.  The
flavor and fragrances division was sold with effect from Jan.
31, 2005.  Some of its wholly owned subsidiaries include
Jusfrute Limited, United Beverages Pty Ltd, Redland Industries
Pty Ltd, Keith Harris Extracts Pty Ltd and Quotidian No.115 Pty
Ltd.  As of January 22, 2007, Washington H. Soul Pattinson and
Co. Ltd held an 86.62% interest in the company.

As of July 31, 2006, the company has total assets of
AU$81.33 million, total liabilities of AU$83.57 million, giving
the company a capital deficiency of AU$2.24 million.


KH FOODS: Completes Renounceable Rights Issue
---------------------------------------------
On Jan. 22, 2007, KH Foods Limited completed its renounceable
rights issue, the company said in a corporate disclosure lodged
with the Australian Securities Exchange.

In relation to the rights issue, the company issued 91,625,756
new ordinary shares.  The total number of ordinary shares on
issue as of Jan. 22 is as follows:

   Total number of ordinary
   shares on issue prior to
   the Rights Issue                     28,633,054

   Total number of new
   ordinary shares allotted
   on Jan. 22, 2007
   under its Rights Issue               91,625,756

   Total number of ordinary
   shares on issue after the
   Rights Issue                        120,258,810

The company's renounceable rights issue is a key element in its
proposed recapitalization program, which its shareholders
approved on Dec. 14, 2006.

The terms, set out on Dec. 15, 2006, state that 16 new shares
will be issued for every five existing shares.  All shareholders
in Australia and New Zealand will be entitled to participate in
the rights issue.  The new shares will be issued at AU$0.50 per
share, and will rank equally with existing shares.

The company explained that the "rights issue is being undertaken
to raise funds for the purpose of providing sufficient working
capital to enable the company to execute its turnaround
strategy."

                        About KH Foods

KH Foods Limited -- http://www.keithharris.com.au/-- is an  
Australia-based company engaged in the manufacture and sale of
bakery products, such as savories, cakes, desserts and bread.  
It operates in three business divisions: flavor and fragrances
division, which is engaged in the manufacture and sale of
flavors, essences and colors to the food industry, and
fragrances and colors to the industrial and cosmetic industries;
bakery division, which is engaged in the manufacture and sale of
bakery products, and investments division, which is engaged in
investments in shares listed on prescribed stock exchange,
dividend revenue and interest on short term deposits.  The
flavor and fragrances division was sold with effect from Jan.
31, 2005.  Some of its wholly owned subsidiaries include
Jusfrute Limited, United Beverages Pty Ltd, Redland Industries
Pty Ltd, Keith Harris Extracts Pty Ltd and Quotidian No.115 Pty
Ltd.  As of Jan. 22, 2007, Washington H. Soul Pattinson and Co.
Ltd held an 86.62% interest in the company.

                          *     *     *

On Feb. 1, 2007, the Troubled Company Reporter - Asia Pacific
reported that KH Foods posted a consolidated net loss of
AU$39.51 million for the year ending July 31, 2006, more than
fourfold the AU$8.38 million net loss posted for the year ending
July 31, 2005.

As of July 31, 2006, the company has total assets of AU$81.33
million, total liabilities of AU$83.57 million, giving the
company a capital deficiency of AU$2.24 million.


KH FOODS: Issues 16,430,702 Ordinary Shares
-------------------------------------------
KH Foods Limited issues an additional 16,430,702 ordinary
shares, the company said in a corporate disclosure to the
Australian Stock Exchange.

The issue price is at AU$0.50 per share. The fully-paid ordinary
shares were issued on conversion of the convertible notes issued
to Washington H. Soul Pattison and Company Limited and Business
Management Ltd. on December 20, 2006.

                        About KH Foods

KH Foods Limited -- http://www.keithharris.com.au/-- is an  
Australia-based company engaged in the manufacture and sale of
bakery products, such as savories, cakes, desserts and bread.  
It operates in three business divisions: flavor and fragrances
division, which is engaged in the manufacture and sale of
flavors, essences and colors to the food industry, and
fragrances and colors to the industrial and cosmetic industries;
bakery division, which is engaged in the manufacture and sale of
bakery products, and investments division, which is engaged in
investments in shares listed on prescribed stock exchange,
dividend revenue and interest on short term deposits.  The
flavor and fragrances division was sold with effect from Jan.
31, 2005.  Some of its wholly owned subsidiaries include
Jusfrute Limited, United Beverages Pty Ltd, Redland Industries
Pty Ltd, Keith Harris Extracts Pty Ltd and Quotidian No.115 Pty
Ltd.  As of Jan. 22, 2007, Washington H. Soul Pattinson and Co.
Ltd held an 86.62% interest in the company.

                          *     *     *

On Feb. 1, 2007, the Troubled Company Reporter - Asia Pacific
reported that KH Foods posted a consolidated net loss of
AU$39.51 million for the year ending July 31, 2006, more than
fourfold the AU$8.38 million net loss posted for the year ending
July 31, 2005.

As of July 31, 2006, the company has total assets of AU$81.33
million, total liabilities of AU$83.57 million, giving the
company a capital deficiency of AU$2.24 million.


LAFAYETTE MINING: Auditors Raise Going Concern Doubt
----------------------------------------------------
In its Annual Financial Report for the year ended June 30, 2006,
Lafayette Mining Limited and its subsidiaries recorded a
consolidated loss to members of the parent entity of
AU$111,034,348 for the year ended June 30, 2006, or 17.8 cents
per share based on the weighted average number of ordinary
shares on issue during the year.

This loss reflects in large part the financial impacts arising
from the suspension of operations at Rapu Rapu, in the
Philippines.

                       Going Concern Doubt

After reviewing the company's half-year accounts, HLB Mann Judd,
the company's independent auditors, raised significant
uncertainty on the company's going concern "unless its license
to operate the Rapu Rapu polymetallic project on a commercial
basis are fully restored in the near future, and unless ongoing
funding initiatives are successful."

The auditors point out that the balance sheet of the group as of
June 30, 2006, discloses a net working capital deficiency of
AU$89,748,451 and a deficiency in net assets of AU$172,202,840.  
The working capital deficiency takes into account a current
liability of AU$88,547,226 being the current portion of
unrealized losses on base and precious metals forward sales
contracts.

                     About Lafayette Mining

Headquartered in Melbourne, Australia, Lafayette Mining Limited
-- http://www.lafayettemining.com/-- through its subsidiary  
companies and Philippine partners, holds an interest in the
Rapu-Rapu polymetallic project in the Philippines.  Rapu Rapu
Island is approximately 350 kilometers south of Manila. During
the fiscal year ended June 30, 2006, the Company was engaged in
the development of polymetallic mineral prospects on Rapu Rapu
Island and the production of precious metals and base metals.  
The Rapu-Rapu mineral resource supports an eight-year mine life
capable of producing approximately 10,000 tons of copper in
concentrates, 14,000 tons of zinc in concentrates, 50,000 ounces
of gold and 600,000 ounces of silver annually. The project was
suspended by the national government's Department of Environment
and Natural Resources (DENR) after two incidents in 2005 that
resulted in discharges of contaminated liquid.


LAFAYETTE MINING: Rapu-Rapu Plant Remediation Prog. on Schedule
---------------------------------------------------------------
Lafayette Mining Limited discloses that the remediation program
on the island of Rapu Rapu in the Philippines to repair the
damage caused at the Project site by Supertyphoon Reming is
proceeding on schedule.  The base metals plant and ancillary
infrastructure required for the restart of production of copper
and zinc concentrates are expected to be available in early
February 2007.

The remediation program is proceeding with substantial support
from Leighton Contractors (Philippines) Inc., under a phased
"cost plus" open book contract with phase 1 giving priority to
the works required to safely restart production as soon as
possible.

The budget for the first phase of the program is
US$1.06 million, with detailed estimates and work programs to
support all essential pre-operational repairs.  An additional
amount of approximately US$5 million is budgeted for additional
works subject to further engineering analysis and a reassessment
of weather-related design specifications for key facilities such
as the wharf and staff typhoon shelters, having regard to the
unprecedented severity of recent typhoon events in the area.

                       Production Ramp Up

Lafayette is confident that reliable production of commercial
quality copper and zinc concentrates can be rapidly re-
established after the re-start of the base metals plant.  
Existing inventories of copper and zinc concentrate are being
progressively bagged and shipped on spot terms arranged by the
Project's offtaker, LG International.

LG International has provided stockpile-financing facilities to
accelerate access to cashflow, as previously announced.  It is
expected that these arrangements will continue to benefit the
Project by reducing our working capital reliance upon the timing
of the first monthly shipment of 5,000 tonnes of concentrates,
which should occur in March or early April 2007.

                        Working Capital

Working capital for the Project and the remediation program has
been augmented by the US$10 million Multi-option Facility
established by our hedge bank group in late December 2006 and
the imminent receipt of US$1.8 million for the sale of the
balance of the concentrate inventory produced under the
authority of the Temporary Lifting Order.  It is expected that
working capital will be further improved by the issue of
US$15 million of convertible notes the documentation for which
was also signed in late December 2006.  The issue of the
convertible notes remains subject only to certain procedural
requirements and the receipt of a Permanent Lifting Order from
the Philippine Government's Department of Environment and
Natural Resources.

                            Insurance

Insurance claim processes are proceeding although recovery under
the insurance program has been complicated by a dispute with our
insurers regarding coverage of the Company's insurance policies.

Until Nov. 30, 2006, the company carried three separate policies
covering the gold plant, power plant, and base metal facilities.  
From 4:00 p.m. on Nov. 30, 2006, the three policies were
replaced by a single, consolidated policy covering all parts of
the Rapu-Rapu operation.

Lafayette has been advised that the underwriters of all of the
expiring policies should respond to the claim since the
insurable event commenced under the currency of those policies.  
The underwriters of one of the expiring policies (covering the
base metal facilities) are reviewing (and may possibly resist)
their liability for the claim.

                  Hedging and Loan Restructure

The company's project hedge banks have lent a subsidiary of
Lafayette US$13.25 million to settle base metal hedge contracts
that matured on Dec. 29, 2006.  The settlement amount was
marginally lower than the projected amount previously advised to
the market.

Precious metal hedge contracts that matured on Dec. 29, 2006,
were also rolled on an historic rate rollover basis until the
end of March 2007.  Once concentrate production has recommenced
and production levels can be forecast with some confidence, the
maturities of some of the existing precious metal hedge
contracts will be rescheduled so that no more than 70% of
projected production will be due for delivery into hedge
contracts.  Around the same time, loan repayment schedules will
also be re-established in line with the available cashflow
forecast to be generated by the revised production and hedging
schedules.

                  About Lafayette Philippines

Lafayette Mining Philippines, Incorporated, is a subsidiary of
Lafayette Mining, Incorporated.  Lafayette Philippines is
currently developing a polymetallic project involving copper,
gold, zinc and silver on the Island of Rapu-Rapu in the
Philippines.

The Department of Environment and Natural Resources' former
secretary, Mike Defensor, ordered the closing of Lafayette
Philippines in 2005 when the Company's mine tailings were
accidentally spilled into the Albay Gulf in October 2005,
killing thousands of fish and destroying the livelihood of
fishermen in the area.  The Company was also fined PHP10.7
million for violating the Clean Water Act and its environmental
compliance certificate.

                     About Lafayette Mining

Headquartered in Melbourne, Australia, Lafayette Mining Limited
-- http://www.lafayettemining.com/-- through its subsidiary  
companies and Philippine partners, holds an interest in the
Rapu-Rapu polymetallic project in the Philippines.  Rapu Rapu
Island is approximately 350 kilometers south of Manila. During
the fiscal year ended June 30, 2006, the Company was engaged in
the development of polymetallic mineral prospects on Rapu Rapu
Island and the production of precious metals and base metals.  
The Rapu-Rapu mineral resource supports an eight-year mine life
capable of producing approximately 10,000 tons of copper in
concentrates, 14,000 tons of zinc in concentrates, 50,000 ounces
of gold and 600,000 ounces of silver annually. The project was
suspended by the national government's Department of Environment
and Natural Resources (DENR) after two incidents in 2005 that
resulted in discharges of contaminated liquid.

                       Going Concern Doubt

After reviewing the company's half-year accounts, HLB Mann Judd,
the company's independent auditors, raised significant
uncertainty on the company's going concern "unless its license
to operate the Rapu Rapu polymetallic project on a commercial
basis are fully restored in the near future, and unless ongoing
funding initiatives are successful."

The auditors pointed out that the balance sheet of the group as
of June 30, 2006, disclosed a net working capital deficiency of
AU$89,748,451 and a deficiency in net assets of AU$172,202,840.  
The working capital deficiency takes into account a current
liability of AU$88,547,226 being the current portion of
unrealised losses on base and precious metals forward sales
contracts.


MANNING & MANNING: To Declare First and Final Dividend
------------------------------------------------------
Manning & Manning Pty Ltd, which is in liquidation, will declare
a first and final dividend for its priority creditors on
March 22, 2007.

In this regard, priority creditors are required to submit their
proofs of debt by Feb. 20, 2007, to be included in the dividend
distribution.

The liquidator can be reached at:

         R. M. Sutherland
         Jirsch Sutherland
         Chartered Accountants
         Level 2, 84 Pitt Street
         Sydney, New South Wales 2000
         New Zealand
         Telephone:(02) 9233 2111
         Facsimile:(02) 9233 2144

                    About Manning & Manning

Manning & Manning Pty Limited operates used merchandise stores.

The company is located in New South Wales, Australia.


RANTECH AUSTRALIA: Members Opt to Close Business
------------------------------------------------
At a general meeting held on Jan. 19, 2007, the members of
Rantech Australia Pty Ltd resolved to voluntarily wind up the
company's operations and appointed Antony de Vries and Riad
Tayeh as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Antony de Vries
         Riad Tayeh
         de Vries Tayeh
         Level 3, 95 Macquarie Street
         Parramatta, New South Wales 2125
         Australia

                    About Rantech Australia

Rantech Australia Pty Ltd -- http://www.rantechaustralia.com.au/
-- provides luxury bathroom products that combine stylish
elegance with the latest technology.

The company is located in New South Wales, Australia.


SPARK BRAND: To Declare First and Final Dividend on March 6
-----------------------------------------------------------
Spark Brand Communications Pty Ltd, which is subject to a deed
of company arrangement, will declare a first and final dividend
on March 6, 2007.

Accordingly, creditors are required to prove their debts on
Feb. 20, 2007, to share in the distribution.

The deed administrator can be reached at:

         Peter Rodgers
         Rodgers Reidy
         Level 8, 333 George Street
         Sydney, New South Wales 2000
         Australia

                       About Spark Brand

Spark Brand Communications Pty Ltd operates advertising
agencies.

The company is located in New South Wales, Australia.


STOKER FIREPLACES: Final Meetings Slated for February 22
--------------------------------------------------------
Stoker Fireplaces Pty Ltd, which is in voluntary liquidation,
will hold a final meeting for its members and creditors on
Feb. 22, 2007, at 10:30 a.m.

At the meeting, the members and creditors will be asked to:

   -- receive an account of the liquidators;

   -- consider and if thought fit destroy the books and records
      of the company; and

   -- discuss other business.

The joint and several liquidators can be reached at:

         Terry Grant van der Velde
         David Michael Stimpson
         SV Partners Pty Ltd
         138 Mary Street
         Brisbane, Queensland
         Australia
         Web site: http://www.svpartners.com.au

                     About Stoker Fireplaces

Stoker Fireplaces Pty Ltd is a distributor of plumbing and
heating equipments and supplies.

The company is located in Queensland, Australia.


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

AGRICULTURAL BANK: Reform Likely to Start in Second Half
--------------------------------------------------------
Agricultural Bank of China is likely to launch its reform plan
in the second half, Forbes reports citing the China Business
News.

According to the China Business, the National Audit Office is
estimated to complete its full audit in the bank within the
first half, while Deloitte, its independent auditor, is likely
to complete its own audit in May.

"The audit report is important for ABC to determine a schedule
for reforms," China Business quoted a regulatory source as
saying.

The Troubled Company Reporter - Asia Pacific reported on Jan.
23, 2007, that the shareholding reform of the bank has been
decided at the recently held China's Third National Financial
Work Conference.

TCR-AP also noted that the bank's reform plan is estimated to
cost around US$100 billion.

                          *     *     *

The Agricultural Bank of China -- http://www.abocn.com/-- is  
the mainland's fourth largest bank.  It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.

Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.

The Troubled Company Reporter - Asia Pacific reported on June
27, 2006, that the National Audit Office found accounting
irregularities involving CNY51.6 billion, CNY14.27 billion of
which come from deposit business, CNY27.62 billion from loan
grants, and CNY9.72 billion from fraudulent bill issuance.

Fitch Ratings gave the Bank an 'E' Individual rating.


APEX TRADE: Members to Receive Wind-Up Report on February 27
------------------------------------------------------------
The members of Apex Trade Investments Ltd will meet on Feb. 27,
2007, at 10:30 a.m., to receive the liquidator's report
regarding the company's wind-up proceedings.

The Troubled Company Reporter - Asia Pacific reported that the
company appointed Yip Sau Fong as liquidator on Oct. 6, 2006.

The Liquidator can be reached at:

         Yip Sau Fong
         Unit 201, Discovery Bay Office Centre
         No. 2 Plaza Lane
         Discovery Bay
         Hong Kong


BENQ MOBILE: Claims Registration Ends February 23
-------------------------------------------------
Creditors of BenQ Mobile Management GmbH have until February 23
to register their claims with court-appointed insolvency manager
Martin Prager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on March 23, at which time the
insolvency manager will present his first report on the
insolvency proceedings.

The meeting of creditors will be held at:

         The District Court of Munich
         Meeting Room 102
         Infanteriestr. 5
         80097 Munich, Germany      

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Munich opened bankruptcy proceedings
against BenQ Mobile Management GmbH on Jan. 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be contacted at:

         BenQ Mobile Management GmbH
         Haidenauplatz 1
         81667 Munich, Germany

         Attn: Wei-Yui Liou, Manager
         Taoyuan City
         Taiwan

The insolvency manager can be contacted at:

         Dr. Martin Prager
         Barthstr. 16
         80339 Munich, Germany
         Tel: 089-8589633
         Fax: 089-85896350

                        About BenQ

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

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

A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after court-appointed insolvency
administrator Martin Prager failed to meet the deadline in
finding a buyer for the company on Dec. 31, 2006.

                          *     *     *

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

The ratings reflect BenQ's:

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

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


BENQ CORP: Bacoc Fails to Submit Bid for Bankrupt Mobile Unit
-------------------------------------------------------------
Bacoc, the German laptop computer company, failed to submit an
offer for BenQ Mobile GmbH & Co. OHG, the bankrupt German unit
of Taiwan-based BenQ Corp., after creditors rejected bids by two
potential buyers earlier in the month, John Blau of IDG News
Service reports.

Bacoc has been rumored to acquire BenQ's bankrupt mobile unit,
eyeing a two-third reduction of the company's work force and
planning to retain the firm's facility in Kamp-Lintfort in North
Rhine-Westphalia and close down the central office in Munich.  
According to Germany's Handelsblatt newspaper, Bacoc plans to
expand its product range to include mobile phones, targeting
sales of 4.5 million units in 2007.

A spokesperson for insolvency administrator Martin Prager said
creditors have yet to reach an agreement on a possible rescue
plan, although talks with interested bidders still continue.

Investor group SF Capital Partners, led by Hansjoerg Beha, a
former Daimler-Benz executive, pulled out of the bidding race
last week, with sources speculating that the group could not
raise the required funding needed for the acquisition, Mobile
Today reports.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 25, Sentex Sensing Technology Inc. submitted a EUR52
million bid for BenQ Mobile's assets.  Henrik Rubenstein,
Sentex's chief executive officer, told Dow Jones Newswires that
the bid is based on an earn-out model, which would base payments
on BenQ Mobile's financial success in the future.  He added that
the company had secured a "three-digit million euro sum" of
working capital financing.

"We are not too optimistic but we will see what happens by the
end of the month," Regine Petzsch, spokeswoman for
administrators Pluta Rechtsanwalts GmbH told Mobile Today.  "We
do not think that Sentex's interest is to be taken too
seriously.  No one is able to take on the risks so there is not
much hope for the business."

Creditors have not set a deadline to end sale talks with
interested parties.  However, Mr. Prager's spokesman said, the
sooner a rescue plan is found, the better, IDG News Service
relates.

                          About BenQ

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

BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany.  BenQ Mobile filed for insolvency
in Germany on Sept. 29, after BenQ Corp.'s board decided to
discontinue capital injection into the mobile unit in order to
stem unsustainable losses.  The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.

BenQ Mobile has lost market share against giant competitors.

A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.

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

                        *     *     *

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

The ratings reflect BenQ's:

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

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


CERBERUS INVESTMENTS: Creditors Must Prove Debts by Feb. 25
-----------------------------------------------------------
The creditors of Cerberus Investments Ltd are required to submit
their proofs of claim by Feb. 25, 2007.

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

As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Jan. 16, 2007.

The joint and several liquidators can be reached at:

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


CHINA SOUTHERN: Returns to Profit in 2006 Due to Strong Yuan
------------------------------------------------------------
China Southern Airlines is to report its first profit since 2002
after earnings were boosted by a stronger yuan, a higher
domestic fuel surcharge, and throughput growth, the South China
Morning Post reports.

In a brief statement made to the Shanghai Stock Exchange, the
airline company said it expects to post profit in 2006 after
incurring nearly CNY2 billion loss in 2005.

The carrier could book full-year profit of CNY800 million,
including a CNY200 million exceptional gain from the disposal of
aircraft, Credit Suisse analyst Karen Chan told the South China
Post.

In addition, Chinese yuan's gains against the US dollar could
cut the carrier's finance cost by between CNY1 billion and
CNY1.1 billion, Ms. Chan said.

Passenger traffic rose 11.5% to 49.2 million, while cargo volume
increased 5.6% to 818,000 tonnes last year, China Southern
disclosed.

                          *     *     *

Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com-- engages in the operation of  
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

On May 1, 2006, Fitch Ratings has downgraded China Southern
Airlines Company Limited's Foreign Currency and Local Currency
Issuer Default Ratings to B+ from BB-.

The Troubled Company Reporter - Asia Pacific reported in April
2006, that the carrier posted a net loss of CNY1.85 billion for
2005 versus a net loss of CNY48 million a year earlier.


CHINA SOUTHERN: Plans to Buy 12 Boeing 777 for US$2.88 Billion
--------------------------------------------------------------
China Southern Airlines Co. may order as many as 12 Boeing Co.
777 freighters, costing as much as US$2.88 billion, to tap the
country's growing air cargo demand, Bloomberg reports citing
Deputy General Manager Liu Xiaoxiao, as saying.

According to Mr. Liu, the airline plans to operate a fleet of 20
freighters within five years.  

China Southern currently has two 747 freighters, Mr. Liu said.

On Oct. 18, 2006, the Troubled Company Reporter - Asia Pacific
reported that China Southern announced an order for six 777
freighters.

Mr. Liu also disclosed that China Southern is in talks with
overseas airlines, including Air France-KLM, Europe's biggest
carrier, about forming a cargo venture.

"Carriers are trying expand in the more profitable cargo
business to gain from the economic growth," Jack Xu, an analyst
at Sinopac Securities Asia Ltd. in Shanghai told Bloomberg.

Mr. Xu also said that China Southern's yield from carrying cargo
is about three times as much as it is for passenger traffic,
Bloomberg relates.  

                          *     *     *

Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com-- engages in the operation of  
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

On May 1, 2006, Fitch Ratings has downgraded China Southern
Airlines Company Limited's Foreign Currency and Local Currency
Issuer Default Ratings to B+ from BB-.

The Troubled Company Reporter - Asia Pacific reported in April
2006, that the carrier posted a net loss of CNY1.85 billion for
2005 versus a net loss of CNY48 million a year earlier.


DONG FANG: Sole Shareholder Appoints Liquidators
------------------------------------------------
On Jan. 12, 2007, the sole shareholder of Dong Fang Gas
Management Ltd passed a special resolution to appoint Lai Kar
Yan Derek and Darach E. Haughey as joint and several
liquidators.

The Joint and Several Liquidators can be reached at:

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


GRACEROCK LIMITED: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Jan. 16, 2007, the members of Gracerock Ltd passed a special
resolution to voluntarily wind up the company's operations.

Accordingly, Wong Chun Keung was appointed as liquidator and was
authorized to divide the company's assets to its members.

The Liquidator can be reached at:

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


K SOLUTIONS: Shareholders Pass Resolution to Wind Up Firm
---------------------------------------------------------
At an extraordinary general meeting held on Jan. 16, 2007, the
shareholders of K Solutions Ltd passed a special resolution to
voluntarily wind up the company's operations.

In this regard, Leung Chi Wing was appointed as liquidator.

The Liquidator can be reached at:

         Leung Chi Wing
         Office B, 4/F, Kiu Fu Commercial Building
         300 Lockhart Road, Wan Chai
         Hong Kong


LIN KEE: Members' Final Meeting Slated for February 28
------------------------------------------------------
The final meeting of the members of Lin Kee Book-Binding Company
Ltd will be held on Feb. 28, 2007, at 10:00 a.m., to consider
the liquidator's account of how the company was wound up and its
properties disposed of.

As reported by the Troubled Company Reporter - Asia Pacific, the
company appointed Yam Ming Fai as liquidator on Nov. 29, 2006.

The Liquidator can be reached at:

         Yam Ming Fai
         Flat I, 3/F.
         285 King's Road, North Point
         Hong Kong


MELO BIOTECH: Sells Computer Business to MIAD Information
---------------------------------------------------------
Melo Biotechnology Holdings Inc., fka MIAD Systems Ltd., entered
into an asset sale, purchase and transfer agreement with MIAD
Information Systems Ltd., a Canadian corporation.

The majority shareholder of MIAD Information, Michael Green, is
the president and director of the MIAD Systems.

Under the Agreement, the company has agreed to sell to MIAD
Information, and MIAD Information has agreed to purchase, all of
the rights, properties, and assets used in the conduct of the
company's computer distribution and custom assembled personal
computer system business located exclusively in Ontario, Canada.

The transaction does not relate to or affect any of the
company's other business operations.  As consideration for the
purchase of the Computer Business, MIAD Information will assume
all liabilities associated with the company's Computer Business.  

Under the terms of the Agreement, the company will retain no
liability for any aspect of the company's Computer Business.  
Additionally, MIAD Information has agreed to indemnify the
company for any potential liability that may arise out of the
sale of the Computer Business.  

                          *     *     *

Headquartered in Markham, Ontario, Melo Biotechnology Holdings
Inc. fka MIAD Systems Ltd. -- http://www.miad.com/-- supplies  
business computer systems and provides computer maintenance,
installation and networking services to major clients primarily
engaged in the corporate, institutional, municipal, utilities
and education fields.

The company's principal executive office is located in Hong
Kong.

M.L. Strategic Limited is a British Virgin Islands corporation
and is the owner of a majority of the issued and outstanding
shares of the common stock of Melo Biotechnology.

Miad Systems Ltd.'s interim balance sheet, as of June 30, 2006,
showed total assets of CDN$1,886,059 and total liabilities of
CDN$2,306,443, resulting in a total stockholders' deficit of
CDN$420,384.


MELO BIOTECH: Has CDN$298,318 Stockholders' Deficit at Sept. 30
---------------------------------------------------------------
Melo Biotechnology Holdings Inc. reported a CDN$140,168 net loss
on CDN$8.8 million of sales for the year ended Sept. 30, 2006,
compared with CDN$28,492 of net income on CDN$8.3 million of
sales for the year ended Sept. 30, 2005.

The net loss for fiscal 2006 is mainly due to lower reported
gross margins of CDN1.37 million compared to CDN$1.4 million in
fiscal 2005 and the increase in operating expenses.

Cost of sales for the fiscal year ended Sept. 30, 2006, were
CDN$7.4 million compared to CDN$6.9 million for the fiscal year
ended Sept. 30, 2005.  This increase was due to increased costs
of materials, products and parts.  Gross profit on product sales
decreased 2.2 % to CDN$1.37 million in the current fiscal year
from CDN$1.4 million in fiscal 2005.

Operating expenses increased to 17.2% of revenue in fiscal year
2006 compared to 16.5% of revenue in the previous fiscal year.  
Operating expenses in fiscal year 2006 were CDN$138,254 higher
than in the fiscal year 2005 due primarily to the CDN$145,267 of
additional payroll expenses incurred in the current year.

At Sept. 30, 2006, the company's balance sheet showed CDN$1.5
million in total assets and CDN$1.8 million in total
liabilities, resulting in a CDN$298,318 total stockholders'
deficit.

The company's balance sheet at Sept. 30, 2006, also showed
strained liquidity with CDN$1.4 million in total current assets
available to pay CDN$1.8 million in total current liabilities.

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

              http://researcharchives.com/t/s?186f

                          *     *     *

Headquartered in Markham, Ontario, Melo Biotechnology Holdings
Inc. fka MIAD Systems Ltd. -- http://www.miad.com/-- supplies  
business computer systems and provides computer maintenance,
installation and networking services to major clients primarily
engaged in the corporate, institutional, municipal, utilities
and education fields.

The company's principal executive office is located in Hong
Kong.

                          *     *     *

Melo Biotechnology Holdings Inc., at Sept. 30, 2006, had total
stockholders' deficit of CDN$298,318.


NETEGRITY CHINA: Ross and Arboit to Act as Liquidators
------------------------------------------------------
Andrew David Ross and Bruno Arboit were appointed as joint and
several liquidators of Netegrity China Ltd by a special
resolution passed on Jan. 16, 2007.

The Joint and Several Liquidators can be reached at:

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


OG DEVELOPMENT: Wind-Up Hearing Set for February 7
--------------------------------------------------
A liquidation petition filed against OG Development Company Ltd
will be heard before the High Court of Hong Kong on Feb. 7,
2007, at 9:30 a.m.

Hing Yip Holdings (Hong Kong) Ltd filed the petition with the
Court on Dec. 5, 2006.

Hing Yip's solicitors can be reached at:

         Baker & McKenzie
         14/F, Hutchison House
         10 Harcourt Road, Central
         Hong Kong


ORIENTAL YOUTH: Creditors' Proofs of Debt Due on February 16
------------------------------------------------------------
The creditors of Oriental Youth Enterprises Ltd are required to
submit their proofs of debt by Feb. 16, 2007.  

According to the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Jan. 15, 2007.

The liquidator can be reached at:

         Tsang Chi Wai
         Room 2201, Chung Kiu Commercial Building
         47-51 Shantung Street
         Mongkok, Kowloon
         Hong Kong


POWER TEAM: Schedules Members' Final Meeting on March 2
-------------------------------------------------------
Power Team Development Ltd will hold a final meeting for its
members on March 2, 2007, at 11:00 a.m., to consider the
liquidator's account of the company's wind-up proceedings and
property disposal exercises.

According to the Troubled Company Reporter - Asia Pacific, the
company named Chan Chun Hing as liquidator on Dec. 8, 2006.

The Liquidator can be reached at:

         Chan Chun Hing
         Room 1503, Skyline Commercial Centre
         71-77 Wing Lok Street, Sheung Wan
         Hong Kong


SKY LEADER: Court to Hear Wind-Up Petition on February 7
--------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition filed
against Sky Leader Industries Ltd on Feb. 7, 2007, at 9:30 a.m.

Hing Yip Holdings (Hong Kong) Ltd filed the petition against the
company on Dec. 5, 2006.

Hing Yip's solicitors can be reached at:

         Baker & McKenzie
         14/F, Hutchison House
         10 Harcourt Road, Central
         Hong Kong


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

BANK OF INDIA: S&P Lifts Rating to 'BBB-' and Keeps BFSR at 'C'
---------------------------------------------------------------
Standard & Poor's Ratings Services, on Jan. 30, 2007, lifted its
ratings on the Bank of India to BBB-/Stable/A-3 from
BB+/Positive/B.

The rating agency made a similar upgrade on five other banks:

     -- ICICI Bank Ltd.;
     -- Indian Overseas Bank;
     -- Industrial Development Bank of India Ltd.;
     -- State Bank of India; and
     -- UTI Bank Ltd.

The raised ratings followed Standard & Poor's revision of
India's sovereign credit rating to investment grade after the
rating agency determined that the country's economic prospects
remain strong and are rising gradually.

"Indian banks are likely to benefit from the country's stable
and strong economic prospects, with GDP growth expected at more
than 7.5% in the medium term," the rating agency states.

S&P, however, maintains Bank of India's Bank Fundamental
Strength Rating at 'C'.

The agency expects the performance of the six banks, and of
Indian banks in general, to continue to improve in 2007
supported by a sustained rise in fee income, improving/
stabilizing asset quality, despite a possible increase in
absolute NPA, and improving risk management practices.


EXIM BANK: S&P Upgrades Issuer Credit Ratings from BB+ to BBB-
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
and local currency issuer credit ratings on Export-Import Bank
of India to 'BBB-' from 'BB+'.  The outlook of the rating is
stable.

At the same time, the rating agency raised India EXIM's short-
term rating to 'A-3' from 'B'.

The upgrade, made on Jan. 30, 2007, reflect the upgrade in the
ratings on the Republic of India (BBB-/Stable/A-3), and take
into account the entities' close relationship to the sovereign,
based on their public policy role and significance to crucial
economic sectors, Standard & Poor's says.

India EXIM is India's official export credit agency, which
supports the government's export strategy, and foreign trade and
investment policies.  The bank is 100% owned and controlled by
the government.  Standard & Poor's expects India EXIM's public
policy role to remain intact in the near-to-medium term, as the
Indian government is likely to remain committed to increasing
the role of the export sector in the Indian economy.


ICICI BANK: S&P Lifts Rating to 'BBB-' and Maintains 'C' BFSR
-------------------------------------------------------------
Following its upgrade on the government of India's credit
ratings to investment grade on Jan. 30, Standard & Poor's
Ratings Services lifted the ratings of ICICI Bank Ltd. from
BB+/Positive/B to BBB-/Stable/A-3.

Standard & Poor's also made a similar upgrade to five other
Indian banks.

The rating agency, however, made it clear that the Bank
Fundamental Strength Rating of ICICI continues to be 'C'.

"Indian banks are likely to benefit from the country's stable
and strong economic prospects, with GDP growth expected at more
than 7.5% in the medium term," S&P says.

India's sustained healthy economic growth over the past few
years, the agency says, has improved credit demand from
corporations.

The agency expects Indian banks to continue to improve this year
supported by:

   -- a sustained rise in fee income;

   -- improving/stabilizing asset quality, despite a possible
      increase in absolute NPA; and

   -- improving risk management practices.


ICICI BANK: Sharp Rise in Revenue Ups 4th Quarter Profit by 42%
---------------------------------------------------------------
ICICI Bank Limited's board of directors at its meeting on
Jan. 20, approved the bank's audited results for the 4th quarter
of 2006.

ICICI Bank posted a net profit of INR9.101 billion for the
quarter ended Dec. 31, 2006, a 42% increase from the
INR6.401 billion booked in the corresponding period in 2005.

The rise in profit came with the sharp rise in revenues for the
quarter under review.

For the October-December 2006 period, the bank's total income
soared 64% to INR78.052 billion from the INR48.917 billion
earned in the last quarter of 2005.  The bank's expenditures
increased just about the same from INR35.683 billion in the
December 2005 quarter to INR58.291 billion in the December 2006
quarter.

For the last quarter of 2006, the bank booked tax totaling
INR1.751 billion, which includes current period tax of
INR3.656 billion and deferred tax adjustment of
(INR1.905) billion.

The bank's provided much higher provisions and contingencies for
the quarter under review compared to the corresponding quarter
in 2005 -- INR8.910 billion in the December 2006 quarter
compared to INR3.951 billion in the December 2005 quarter.  
According to the bank, the other provisions and contingencies
for the quarter ended Dec. 31, 2006, includes provisions of
INR850.50 million for potential losses from frauds pertaining to
warehouse receipt based financing product for agricultural
credit.

The bank, in a media release, points out that its capital
adequacy at Dec. 31, 2006, was 13.4% (including Tier 1 capital
adequacy of 8.6%), well above the Reserve Bank of India's
requirement of total capital adequacy of 9%.

A copy of ICICI Bank's financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange http://ResearchArchives.com/t/s?1942

Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group  
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance.  It also has
interests in the software development, software services and
business process outsourcing businesses.  The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others.  It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.

                          *     *     *

On Jan. 30, 2007, Standard & Poor's Ratings Services affirmed to
Bank Fundamental Strength Rating of ICICI at 'C'.

Moody's Investors Service, on July 14, 2006, assigned to ICICI a
'C-' Financial Strength Rating.

Fitch Ratings gave the bank a 'C' Individual Rating on Dec. 15,
2005.


INDIAN OIL: S&P Lifts Corporate Credit Rating to BBB- from BB+
--------------------------------------------------------------
On Jan. 30, 2007, Standard & Poor's Ratings Services raised the
corporate credit rating of Indian Oil Corp. Ltd. to 'BBB-' from
'BB+'.  The outlook on the rating is stable.

The revision followed the rating agency's upgrade of India's
sovereign credit rating to 'BBB-'.

"The rating upgrade on IOC is driven largely by expectation of
continued government support to the entity, given the prevailing
policy on pricing of refined products and IOC's prominent
position and role in the energy sector in India," Standard &
Poor's quotes its credit analyst Anshukant Taneja as saying.

The rating agency believes that recent measures such as oil
bonds to compensate for under-recoveries and allowing IOC to
reduce its equity holding in other government-controlled
petroleum sector entities signify strong government support for
the company.

Going forward, as the Indian energy market liberalizes and
market-determined pricing is introduced, Standard & Poor's would
re-assess the level of government support for this entity, the
agency adds.


INDIAN OVERSEAS BANK: S&P Keeps 'C' Fundamental Strength Rating
---------------------------------------------------------------
Along with five other banks in the country, Indian Overseas
Bank's ratings were upgraded by Standard & Poor's Ratings
Services on Jan. 30, 2007, from BB+/Positive/B to
BBB-/Stable/A-3.

The upgrade on the ratings on these banks reflects their
improving standalone profiles supported by a better operating
environment, the rating agency says.  S&P believes Indian banks
will likely benefit from India's stable and strong economic
prospects, with GDP growth expected at more than 7.5% in the
medium term.

The rate revisions followed S&P's upgrade on the country's
sovereign ratings to investment grade.

S&P's Bank Fundamental Strength Rating for IOB, however,
continues to be 'C'.


INDUSTRIAL DEVELOPMENT BANK: S&P Lifts BSFR from 'D+' to 'C'
------------------------------------------------------------
Standard & Poor's Ratings Services, on Jan. 30, 2007, raised its
ratings on Industrial Development Bank of India Ltd. to BBB-
/Stable/A-3 from BB+/Positive/B.

Standard & Poor's also revised the Bank Fundamental Strength
Rating of IDBI to 'C' from 'D+'.

The upgrades, according to the rating agency, reflect the bank's
improving standalone profiles supported by a better operating
environment.  

On the same day, S&P also raised its sovereign credit ratings on
the Republic of India to 'BBB-/A-3' from 'BB+/B' to reflect,
among others, the country strong economic prospects.

The rating agency believes the bank, along with other Indian
banks, will benefit from India's sustained healthy economic
growth because it brings in improved credit demand from
corporations.

"The 'BBB-' long-term foreign currency rating on IDBI continues
to factor in expected extraordinary support from the government
in a distress situation, given IDBI's quasi-policy role in long-
term development finance in India," the agency adds.


NTPC LTD: S&P Lifts Credit Ratings After India Sovereign Upgrade
----------------------------------------------------------------
Right after Standard & Poor's Ratings Services upgraded the
sovereign credit ratings on India to investment grade on
Jan. 30, the rating agency lifted NTPC Ltd.'s corporate credit
rating to 'BBB-' from 'BB+".  The outlook is stable.

Standard & Poor's also raised the issue rating for NTPC's senior
unsecured debt to 'BBB-' from 'BB+'.

The ratings revision for NTPC reflects the stand-alone credit
profile of the company and its dominant market share in the
electricity generation sector, the rating agency explains.

Although NTPC is not expected to be in need of direct financial
support from the government, Standard & Poor's considers that
this is indirectly manifested through the high collections on
sales made to financially weak state-government-owned
electricity utilities.

"Unless the intrinsic credit problems of the SEUs are solved,
NTPC may continue to need such indirect support, implying that
its rating would remain sensitive to sovereign support and
action," Standard & Poor's credit analyst Anshukant Taneja says.


POWER FINANCE: Sovereign Upgrade Cues S&P to Lift Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services, on Jan. 30, 2007, lifted
Power Finance Corp. Ltd.'s long-term foreign and local currency
issuer credit ratings from 'BB+' to 'BBB-'.

The upgrade came after Standard & Poor's raised the sovereign
credit ratings on the Republic of India to 'BBB-/A-3' from
'BB+/B'.

Power Finance Corp. Ltd is the primary government agency for
financing the electricity sector in India, the rating agency
notes.  It is also the largest lender to most state government-
owned electricity utilities, which generate about 60% of
electricity in India and are the country's main electricity
distribution and retail agencies.

According to the agency, the equalization of its ratings with
those of the sovereign takes into account the expectation that
PFC's strategic role and its status as a policy instrument of
the government of India will prevail in the medium term,
implying sovereign support for PFC should the need arise.


ROYAL & SUN: Writing Down U.S. Operation to Fair Value for 2006
---------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc disclosed that in
accordance with IFRS 5, it would be classifying its United
States operation as "held for sale" in its 2006 results.

In line with IFRS 5, the U.S. operation will be written down to
fair value less any disposal costs in the 2006 results.

This write down and the U.S. operation's result for the year
will be shown on one line in the 2006 preliminary announcement
as "discontinued operations," which is outside the Group's
Operating Result.

The write down and the loss for the year are together expected
to total approximately GBP480 million.

                Goldman Sachs Buys Voting Rights

The Goldman Sachs Group Inc. acquired on Jan. 22, 2007,
260,415,764 shares in voting rights of Royal & Sun Alliance, a
company disclosure says.

                   About Royal & Sun Alliance

Headquartered in London, United Kingdom, Royal & Sun Alliance
Insurance Group Plc -- http://www.royalsunalliance.com/--  
provides risk management and insurance solutions through two
divisions focusing on property & casualty business and personal
insurance.  The group consists of three regions -- U.K.,
Scandinavia and International.  The group has operations in Asia
including China, Hong Kong and India, among others.


                          *     *     *

In September 2006, A.M. Best Co. has placed the financial
strength ratings of C++ (Marginal) and the issuer credit ratings
of "b" of the Royal & SunAlliance U.S.A. Insurance Pool and
Royal Surplus Lines Insurance Company under review with
developing implications pending the completion of the proposed
sale of these operations to Arrowpoint Capital, a new company
formed by the existing management team of these operations.  All
the above companies are domiciled in Wilmington, Delaware.  
R&SAUS and RSLIC are U.S. subsidiaries of Royal & Sun Alliance
Insurance Group plc (London, England).

In March 2006, Standard & Poor's Ratings Services lowered its
counterparty credit and insurer financial strength ratings on
Royal & Sun Alliance Insurance Group PLC's U.S. insurance
operations (RSA USA) to 'BB' from 'BB+'.  S&P said the outlook
remains negative.  At the same time, the ratings were withdrawn
at the request of the companies' management.


STATE BANK OF INDIA: Bank Rating Stays at 'C', S&P Says
-------------------------------------------------------
On Jan. 30, 2007, Standard & Poor's Ratings Services raised its
ratings on the State Bank of India along with five other banks
to BBB-/Stable/A-3 from BB+/Positive/B.

Standard & Poor's Bank Fundamental Strength Rating for SBI,
however, remains at 'C'.

The rating action came after the rating agency made a similar
upgrade on the sovereign credit ratings on India -- foreign
currency BBB-/Stable/A-3; local currency BBB-/Stable/A-3.

The upgrade reflects the bank's improving standalone profiles
supported by a better operating environment, the rating agency
explains.  

The agency believes the bank will likely benefit from the
country's stable and strong economic prospects, with GDP growth
expected at more than 7.5% in the medium term.


TATA POWER: Moody's Reviews Ratings For Possible Downgrade
----------------------------------------------------------
Moody's Investors Service, on Jan. 30, 2007, placed the Ba1
corporate family rating and Ba2 senior unsecured debt rating for
Tata Power Company Ltd on review for possible downgrade.

"The review has been prompted by TPC's aggressive expansion
plan, which includes the 4,000MW Mundra Ultra Mega Power
Project, the 1,000MW Maithon project and the 250MW Trombay
project," says Jennifer Wong, Moody's lead analyst for the
company.  "The Mundra UMPP is a greenfield project, involving a
total estimated cost of around INR170 billion (approximately
US$3.8 billion) over the next seven years, and is expected to be
commissioned in 2012-2013.  Moody's expects TPC's credit metrics
to deteriorate as the company will partly utilize debt to fund
these aggressive capex plans," she says.

"Moody's is also concerned by the execution risk involved in
this project, including cost overruns and delays, as TPC
undergoes such an aggressive expansion plan.  It will more than
triple its generation capacity from 2,323MW to over 7,500MW,
even though TPC has yet to demonstrate an ability to manage such
a large scale power project," says Wong, adding "This investment
will also raise the overall business and financial risk profiles
of TPC."

The review will focus on the funding plans for the Mundra UMPP
and other projects, and the consequent impact on TPC's leverage,
debt coverage and liquidity.  The review will also evaluate the
underlying tariff assumptions for the Mundra UMPP; potential
associated counterparty risk as well as the company's risk
appetite for future expansion.

To the extent TPC's Mundra UMPP is majority debt -- funded and
lacks a cost pass-through tariff mechanism with resultant higher
cash flow volatility, the rating could potentially be downgraded
by more than one notch.

TPC is the largest private sector power utility in India with an
installed generation capacity of 2,323MW and a presence across
the power business system in generation (thermal, hydro, solar
and wind), transmission and distribution.  Headquartered in
Mumbai, TPC has a strong presence in the area, meeting about 80%
of its power requirements.


UTI BANK: S&P'S Bank Fundamental Strength Rating Still at 'C'
-------------------------------------------------------------
To reflect its upgrade in the ratings on the Republic of India
(BBB-/Stable/A-3), Standard & Poor's Ratings Services raises its
ratings on UTI Bank Ltd. to BBB-/Stable/A-3 from BB+/Positive/B.

Aside from better operating environment, Standard & Poor's
attributes the upgrade on the bank's ratings to its improving
standalone profiles.  

S&P expects improved credit demand from corporations and further
expansion of Indian banks' retail exposure in the medium term.

The rating agency also expects that UTI's performance, and of
Indian banks in general, to continue to improve in 2007
supported by a sustained rise in fee income, improving/
stabilizing asset quality, despite a possible increase in
absolute Non-Performing Assets, and improving risk management
practices.

UTI's Bank Fundamental Strength Rating continues at 'C', the
rating agency points out.


* S&P Raises India's Sovereign Credit Rating to Investment Grade
----------------------------------------------------------------
Standard & Poor's Ratings Services, on Jan. 30, 2007, raised its
sovereign credit ratings on the Republic of India to 'BBB-/A-3'
from 'BB+/B'.  The outlook is stable.

The upgrade to investment grade reflects the country's strong
economic prospects and external balance sheet, and its deep
capital market, which supports a weak, but improving, fiscal
position.

"India's economic prospects remain strong and are rising
gradually, with GDP trend growth likely to average more than
7.5% in the medium term," Standard & Poor's credit analyst Ping
Chew said. "Gradual reforms and consistent monetary and fiscal
policy stances have also sustained macroeconomic stability.  his
has led to strong growth prospects and attracted foreign and
nonresident Indian capital.  India's strong institutions have
also provided for relative stability in policy, politics, and
business environments against volatility usually associated with
lower income levels."

Moreover, India's external balance sheet is strong due to
reserves accumulation and prudent debt management.  Its foreign-
exchange reserves, now more than 16x short-term debt and 5x
gross financing requirements, provide a buffer from changes in
external and domestic investor confidence.  These strengths are
likely to continue, despite the current account deficits, on the
expectation of strong capital inflows.

"The upgrade also reflects an improving fiscal position.  Fiscal
consolidation commitments across all levels of governments look
to be entrenched," Mr. Chew said.  "Governments are likely to be
able to manage the fiscal vulnerabilities.  India also has a
well-functioning bond market, especially when compared with its
rated peers and income group, providing long-term financing for
the government's deficits.  The pace of deficit narrowing should
continue, and faster than Standard & Poor's initial projection.
The central government's budget deficit for the current year
seems to be back on track to meet its target of 3.8% of GDP due
to strong revenue collection.  State governments' fiscal
estimates for the current year suggest that the combined central
and state government deficit is likely to fall below 7% of GDP.
The secular decline in general government deficits in the medium
term is likely to continue due to tax reform and improved
administrations, and implementation of fiscal responsibility
laws across more state governments, currently enacted by 23 out
of 29 state governments."

Mr. Chew added: "The ratings on India, however, remain
constrained by the country's weak fiscal profile, especially its
high government debt burden and deficit, which is still one of
the worst among all rated sovereigns.  Further rating
improvements will depend on sustained prudent fiscal policy that
leads to a decline in the government debt and interest burden,
and further reforms that lift the country's growth prospects and
income levels.  Inappropriate policy mix that increases the
vulnerability of India's still-weak fiscal flexibility, and
erode external and growth strengths could lead to downward
pressures on the rating."


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

BANK BUANA: Fitch Affirms Ratings & Revises Outlook to Positive
---------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Buana
Indonesia Terbuka as follows:

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

   * Short-term rating 'B',

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

   * Individual 'C/D', and

   * Support '3'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favourable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

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


BANK DANAMON: Fitch Affirms 'BB-' LT Ratings w/ Positive Outlook
----------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Danamon
Indonesia Tbk as follows:

   * Long-term foreign Issuer Default rating 'BB-',

   * Short-term rating 'B',

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

   * Individual 'C/D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favorable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking.  Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services.  The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers.  DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income.  Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.


BANK INTERNASIONAL: Fitch Affirms 'B' Short-term Ratings
--------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank
Internasional Indonesia Tbk as follows:

   * Long-term foreign Issuer Default rating 'BB-',

   * Short-term rating 'B',

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

   * Individual 'C/D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favorable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/
engages in general banking services and in other banking
activities based on Syariah principles.  The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard.  The bank is headquartered in Jakarta,
Indonesia.

With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.


BANK LIPPO: Fitch Affirms Ratings & Revises Outlook to Positive
---------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Lippo Bank Tbk
as follows:

   * Long-term foreign Issuer Default rating 'BB-',

   * Short-term rating 'B',

   * National Long-term rating 'A+(idn)'

   * Individual 'D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favorable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

Headquartered in Jakarta, Indonesia, PT Lippo Bank Tbk
-- http://www.lippobank.co.id/-- offers two product segments:  
Consumer Products, comprised of personal accounts, debit cards,
distribution cards, VIP banking, credit cards, loans,
bancassurance, payment services, loyalty programs and safe
deposit boxes, and Corporate Products, consisting of
LippoKredit, LippoTrade, LippoGiro, LippoDeposit, e-LippoLink
and MFTS. The bank is supported by 134 branch offices, 21 sub
branch offices, 238 cash offices and four-payment service
offices nationwide.


BANK MANDIRI: Fitch Affirms B Short-Term Rating w/ Pos. Outlook
---------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Mandiri as
follows:

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

   * Short-term rating 'B',

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

   * Individual 'D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favourable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

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


BANK NEGARA: Fitch Affirms Ratings & Revises Outlook to Positive
----------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Negara
Indonesia (Persero) Tbk as follows:

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

   * Short-term rating 'B',

   * National Long-term rating 'A+(idn)',

   * Individual 'D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favourable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id/-- is a financial  
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature.  The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore.  The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
a securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.


BANK NIAGA: Fitch Affirms Ratings & Revises Outlook to Positive
---------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Niaga Tbk
as follows:

   * Long-term foreign Issuer Default ratings 'BB-',

   * Individual 'C/D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favorable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk
-- http://www.bankniaga.com/-- has a license to operate as a  
commercial bank, a foreign exchange bank and a bank engaged in
activities based on Syariah principles.  The bank's products and
services include: Funding, Consumer Financing, Business
Financing, Credit and Debit Cards, Private Banking, Preferred
Circle, e-Banking, Corporate Trust, Bancassurance and Treasury
Indicator.  The bank's subsidiaries consist of: PT Niaga Aset
Manajemen and PT Saseka Gelora Finance.  As of January 31, 2006,
the Bank operates 54 domestic branches, 145 domestic supporting
branches, 22 domestic payment points, seven Syariah units and
one overseas branch.


BANK NISP: Fitch Affirms BB Long-Term Ratings w/ Pos. Outlook
-------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank NISP Tbk
as follows:

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

   * Short-term rating 'B',

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

   * Individual 'C/D', and

   * Support '3'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favourable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

PT Bank NISP Tbk -- http://www.banknisp.com/english/index.html
-- categorizes its products into two groups: Funding, which
consists of savings and deposits, and Lending, consisting of
working capital loans, investment loans and consumer loans. In
addition, the bank has three service categories: Individual,
Corporate and Others. As of January 18, 2006, the bank has 29
branch offices, 101 representative offices and 26 cash offices
throughout the country.  The Bank is headquartered in Jakarta,
Indonesia.


BANK RAKYAT: Fitch Affirms Individual 'C/D' Rating
--------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk's as follows:

   * Long-term foreign Issuer Default rating 'BB-',

   * Short-term rating 'B',

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

   * Individual 'C/D', and

   * Support '4'.

The Outlook for the ratings was revised to Positive from Stable.

Fitch also effected the same action on the ratings for nine
other Indonesian banks.

The revision follows a similar change made by Fitch to the
Outlook of the Indonesian sovereign's ratings (FC/LC IDRs
affirmed at 'BB-' (BB minus), Outlook Positive), noting that the
corresponding ratings of the Indonesian banks are constrained by
the sovereign rating.

At the same time, Fitch also notes that the prospects for more
favourable operating conditions this year, including the
reduction in domestic interest rates and greater stability in
inflationary pressures, should also be generally positive for
overall debt servicing ability (and hence loan quality), loan
demand and funding costs for the Indonesian banks.  
Nevertheless, these are likely to occur with a lag given that
key banking indicators including loan growth and system NPLs
were still weak in 2006.

Fitch's own estimates suggest that the banks' gross NPL ratio
equated to 10.5% at end-June 2006, significantly higher than
4.5% at end-2004.  However, stripping out NPLs attributable to
Bank Mandiri, the banks' average gross NPL rate would still be
higher but at a more moderate c.6% of gross loans.  And even for
the two largest state-owned banks there have been recent signs
of progress in the recovery and restructuring among a few of its
larger, mainly corporate, legacy loans, although the process
needs to be monitored closely, given that the risk of loan
reversion is still high in the Indonesian context.

Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- clients services  
comprise Savings, Credits and Syariah.  In addition, the bank
divides its financial and business services into three groups:
Business Services, consisting of bank guarantees, bank
clearance, automatic teller machines and safe deposit boxes;
Financial Services, consisting of bill payments, CEPEBRI,
INKASO, deposit acceptance, online transactions and transfers,
and Other Services, consisting of tax and fine payments,
donations, Western Union and zakat contributions.  During the
year ended December 31, 2005, the bank had one branch office in
Cayman Islands and two representative offices in New York and
Hong Kong, respectively.


MARSH & MCLENNAN: To Reveal 4Q & Year-End '06 Results on Feb. 13
----------------------------------------------------------------
Marsh & McLennan Companies, Inc., plans to announce its fourth
quarter and year-end 2006 results on February 13, 2007, in a
news release to be issued before the market opens.  The release
will also be available on MMC's Web site at http://www.mmc.com/

Michael G. Cherkasky, president and chief executive officer of
MMC, and Matthew B. Bartley, chief financial officer, will lead
a discussion with investors on the financial results, including
a question and answer period, at 10:00 a.m. Eastern Time on
February 13.

To participate in the teleconference, please dial 866 564 7444.
Callers from outside the United States should dial 719 234 0008.
The access code for both numbers is 2424845.  The live audio Web
cast may be accessed at http://www.mmc.com/ A replay of the Web  
cast will be available approximately two hours after the event
at the same Web address.

Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a  
global professional services firm with annual revenues of
approximately US$12 billion.  It is the parent company of Marsh,
the world's leading risk and insurance services firm; Guy
Carpenter, the world's leading risk and reinsurance specialist;
Kroll, the world's leading risk consulting company; Mercer, a
major global provider of human resource and specialty consulting
services; and Putnam Investments, one of the largest investment
management companies in the United States.  Approximately 55,000
employees provide analysis, advice, and transactional
capabilities to clients in over 100 countries, including
Indonesia, Australia, China, India, Japan, Korea and Singapore.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+'
preferredstock ratings to Marsh & McLennan's unlimited universal
shelf.

Standard & Poor's also affirmed its 'BBB' counterparty credit
rating on MMC.  The outlook in negative.

As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Moody's Investors Service assigned provisional
ratings to Marsh & McLennan's new universal shelf registration,
including a (P)Ba1 rating on the Company's provisional preferred
stock.  The rating outlook for MMC remains negative


TELKOM INDONESIA: To Raise 2007 Capex by 34% to IDR28 Trillion
--------------------------------------------------------------
PT Telekomunikasi Indonesia expects to raise capital expenditure
by 34% to IDR27.8 trillion this year, Reuters reports, citing a
company statement submitted to parliament.

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-'.


TUPPERWARE BRANDS: Reports Fourth Quarter EPS at 65 Cents
---------------------------------------------------------
Tupperware Brands reported fourth quarter 2006 results as
follows:

                    Fourth Quarter Summary

    *  Sales up 34% as reported and 29% in local currency to
       US$486.5 million

       -- Beauty units acquired in December 2005 sold US$135.8
          million; organic local currency growth of 6%

       -- Other units' sales up 4% in local currency

    *  EPS at 65 cents including 5 cents from positive foreign  
       exchange

    *  EPS after adjustments at 74 cents, up 20 cents, or 37%
       from last year toward high end of previous guidance
       range, including 2 cents higher foreign exchange than
       included in guidance (see detail in the Non-GAAP  
       Financial Measures Reconciliation Schedule).

                        Full Year Summary

    *  Sales up 36% as reported and 35% in local currency to
       US$1.74 billion

       -- Beauty units acquired in December 2005 sold $496.8
          million; organic local currency growth of 3%

       -- Other units' sales were flat in local currency

    *  EPS at US$1.54 up 13 cents from US$1.41 last year

    *  EPS after adjustments up 20% to US$1.79  

           Financial Measures Reconciliation Schedule)

"We were pleased to finish the year strongly and to be giving
2007 guidance for sales improvements in all segments and pre-tax
income up 11-14%.  It is too early to fully predict the actual
tax rate, but using our current assumption of a low 20% rate
versus the 2006 rate of 12%, we foresee earnings per share,
after adjustments, to be flat to down 5 cents," said Rick
Goings, Chairman and CEO.  "Both beauty segments reported solid
fourth quarter sales growth, as did Tupperware North America and
Asia Pacific.  The quarter also included continued strong growth
in the Tupperware emerging markets," Goings continued.

                    Fourth Quarter Highlights

As a result of a recent re-evaluation of its operating segments,
the Company has changed its segment reporting to move Tupperware
Mexico results into the Tupperware North America segment.  The
nature of the business and products in the Tupperware Mexico
business are more similar to Tupperware United States and
Canada.  Previously reported information has been reclassified
to reflect this change.

                    Tupperware Brand Segments

Both Tupperware Asia Pacific and North America had double-digit
sales increases from last year.  Local currency profit improved
38% in Asia Pacific, and the U.S. loss, declined 86% from last
year.  Sales and profit contributors during the quarter included
Tupperware Mexico and Australia/New Zealand and the key emerging
markets of China, India and Indonesia, which were up 25% in
sales.

Sales in Europe were up 9% as reported and up 1% in local
currency.  Excluding the South African beauty units in this
segment, which only had sales in December 2005 following their
acquisition; local currency sales were 3% lower.  The sales
decline was primarily from Germany where the average active
sales force trend has not improved.  This decline was partially
offset by continued strong growth in Tupperware South Africa and
in the emerging markets of Russia, Turkey and Poland, which were
up 50%.

Local currency profit declined 11% in Europe due to lower gross
margin and higher selling and administrative expenses.

                         Beauty Segments

Sales were up in both beauty segments, led primarily by Fuller
Cosmeticos Mexico along with BeautiControl North America.  Sales
results were also strong in Central and South America.  Current
sales and sales force trends support delivering 2007 growth in
the Company's long-term 7-10% target range.

Profit improved in International Beauty both organically and due
to the inclusion of a full quarter's results this year, while
BeautiControl North America declined compared with last year due
to transition costs incurred for a new manufacturing facility
along with higher operating costs associated with strong
recruiting.

                            Outlook

"We continue to have heightened confidence that we can balance
the puts and calls in our portfolio as we have developed a more
diverse product and geographic mix.  We have many markets
growing and few are experiencing issues with actions in place
for improvement in 2007," said Rick Goings, Chairman and CEO.

                        2007 Full Year

    *  Sales up 3-5% in local currency to US$1.80 - US$1.84
       billion, including about US$14 million from positive
       foreign exchange

    *  EPS of US$1.56 to US$1.61 including:

       -- US$10.0 million re-engineering costs (US$6.4 million
          after tax)

       -- US$7.6 million land gains (US$4.2 million after tax)

       -- US$13.3 million intangible asset amortization (US$9.3
          million after tax)

       -- Higher effective tax rate in the low 20% range vs. 9%
          in 2006

    *  EPS expected to be flat to down 5 cents compared with
       2006, excluding re-engineering costs, intangible asset
       amortization and land gains.

       -- Reflects pre-tax income up 11-14% from higher profit
          from the segments and 4-6 cents positive foreign
          exchange offset by:

          * Higher interest expense of about US$52 million vs.
            US$47 million in 2006

          * Unallocated costs of US$35-37 million

          * Significantly higher effective tax rate in the low-
            20% range

                        Segment Outlook

The 2007 full-year sales outlook is for mid-single digit sales
increases in the Tupperware Asia Pacific and North America
segments, and for a low- single digit sales increase in Europe.
The Europe outlook assumes German sales trends improve during
the year resulting in sales even with 2006.

The return on sales in Europe is expected to increase from 16%
in 2006, and the return on sales in Asia Pacific is expected to
be about even with the 16% achieved in 2006.  North America is
expected to have a return on sales of 4-5%, including a small
profit in the United States vs. a loss in 2006.

Sales by the beauty segments are expected to increase by about
7% with a small improvement in return on sales by the
International Beauty segment and a return on sales by
BeautiControl North America flat to down slightly compared with
2006

                        2007 First Quarter

    *  Sales up 3-5% in local currency to US$436 - US$455
       million, including about US$8 million in positive foreign
       exchange

    *  EPS of 18-23 cents compared with 26 cents last year
       including:
       -- US$3.2 million re-engineering after tax

       -- US$2.2 million intangible asset amortization after tax

    *  EPS of 27 to 32 cents excluding re-engineering costs,
       intangible asset

       amortization and land gains including:

       -- 2-3 cents from positive foreign exchange vs. 2006

       -- Sales improvement in all segments, except Europe

       -- Higher segment profit in Asia Pacific and North
          America, offset by lower segment profit in Europe,
          primarily from Germany, and the beauty segments vs.
          last year

       -- Higher interest expense

Tupperware Brands Corporation is a global direct seller of
premium, innovative products across multiple brands and
categories through an independent sales force of 1.8 million.
Product brands and categories include design-centric
preparation, storage and serving solutions for the kitchen and
home through the Tupperware brand and beauty and personal care
products for consumers through its Avroy Shlain, BeautiControl,
Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands.

The Company's stock is listed on the New York Stock Exchange.
Statements contained in this release, which are not historical
fact and use predictive words such as "outlook" or "target" are
forward-looking statements.  These statements involve risks and
uncertainties which include recruiting and activity of the
Company's independent sales forces, the success of new product
introductions and promotional programs, the ability to obtain
all government approvals on land sales, the success of buyers in
attracting tenants for commercial developments, the effects of
economic and political conditions generally and foreign exchange
risk in particular and other risks detailed in the Company's
most recent periodic report as filed in accordance with the
Securities Exchange Act of 1934.  The Company does not intend to
regularly update forward-looking information.

                   Non-GAAP Financial Measures

The Company has utilized non-GAAP financial measures in this
release, which are provided to assist in investors'
understanding of the Company's results of operations.  The
adjustment items materially impact the comparability of the
Company's results of operations.  The adjusted information is
intended to be more indicative of Tupperware Brands' primary
operations, and to assist investors in evaluating performance
and analyzing trends across periods.

The non-GAAP financial measures exclude gains on land sales and
re- engineering costs.  While the Company is engaged in a multi-
year program to sell land, this activity is not part of the
Company's primary business operation.  Additionally, the gains
recognized in any given period are not necessarily indicative of
gains which may be recognized in any particular future period.
For this reason, these gains are excluded as indicated.  
Further, the Company has recorded gains related to an insurance
settlement related to property damaged during Hurricane Charley
in 2004. The Company reached a preliminary settlement in the
fourth quarter of 2004 and a final settlement in the third
quarter of 2006.  These gains have also been excluded, as they
will not recur.  Also, the Company periodically records exit
costs as defined under Statement of Financial Accounting
Standards No. 146, "Accounting for Costs Associated with Exit or
Disposal Activities" and other amounts related to rationalizing
manufacturing and other re-engineering activities, and believes
these amounts are similarly volatile and impact the
comparability of earnings across quarters.  Therefore, they are
also excluded from indicated financial information to provide
what the Company believes represents a more useful measure for
analysis and predictive purposes.

The Company has also elected to present financial measures
excluding certain items directly related to its acquisition of
Sara Lee Corporation's direct selling business in December 2005.
The financing of the acquisition necessitated one-time payments
to settle outstanding notes prior to their scheduled maturity
dates.  These payments were made in 2005 and will not recur. No
amounts representing incremental interest on the Company's
increased debt level are part of this exclusion.  Additionally,
in accounting for the acquisition, the Company is recording
amortization of certain definite-lived intangible assets,
primarily for the value of the independent sales forces
acquired, and the purchase accounting write-up of the carrying
value of other depreciable assets.  The amortization expense of
these assets will continue for several years; however, based on
the Company's current estimates, this amortization will decline
significantly as the years progress.  As such, the Company
believes that this non-cash charge will not be representative in
any single year of amounts recorded in prior years or expected
to be recorded in future years.  Therefore, they are excluded
from indicated financial information to also provide a more
useful measure for analysis and predictive purposes.
Additionally, the Company received a significant benefit from a
tax-related settlement with its former parent in the fourth
quarter of 2005 that will not recur and has excluded this
benefit from indicated financial information.

Finally, in the fourth quarter of 2006, the Company incurred a
US$1.2 million loss related to a fire at its former
manufacturing facility in Halls, TN.  The amount recorded is
based on its current best estimate.  As more information becomes
available related to this event, adjustments may be necessary.
This loss has been excluded as it is not part of the Company's
ongoing operations and the timing of any adjustments, should
they be necessary, is uncertain.

                    About Tupperware Brands

Tupperware Brands Corporation -- http://www.tupperware.com/--  
is a global direct seller of premium, innovative products across
multiple brands and categories through an independent sales
force of approximately 1.9 million.  Tupperware's product brands
and categories include design-centric preparation, storage and
serving solutions for the kitchen and home through the
Tupperware brand and beauty and personal care products through
its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics,
Nuvo and Swissgarde brands.

The company has operations in Indonesia, Argentina, Australia,
Bahamas, Brazil, China, France, Germany, Philippines, Spain, and
Sweden, among others.

The Troubled Company Reporter - Asia Pacific reported on Oct. 2,
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. rental company sector
this week, the rating agency lowered its Ba2 Corporate Family
Rating for Tupperware Brands Corporation to Ba3.  Additionally,
Moody's revised 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$715 Million
   Sr. Sec. Term Loan
   due 2012               Ba2       Ba1     LGD2      25%

   US$200 Million Sr.
   Sec. Revolving
   Credit Facility
   due 2010               Ba2       Ba1     LGD2      25%


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

ELAN CORP: Fourth Quarter and Annual Results Out February 20
------------------------------------------------------------
Elan Corp. Plc will release its fourth quarter and full year
2006 financial results on Feb. 20, before the United States and
European financial markets open.

The company will host a conference call on at 8:30 a.m. EST and
1:30 p.m. GMT on the same date with the investment community to
discuss its fourth quarter and full year 2006 financial results.

Live audio of the conference call will be simultaneously
broadcast over the Internet and will be available to investors,
members of the news media and the general public.

                        About the company

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology  
company.  Elan shares trade on the New York, London and Dublin
Stock Exchanges.

The company has locations in Bermuda and Japan.

                          *     *     *

As reported in the Troubled Company Reporter - Europe on
Nov. 13, Standard & Poor's Ratings Services assigned its 'B'
rating to Elan Finance plc's proposed offering of US$500 million
senior unsecured notes due 2013, to be issued in a combination
of fixed and floating-rate notes.  Elan Finance plc is a wholly
owned subsidiary of Dublin, Ireland-based specialty
pharmaceutical company Elan Corp. plc.  The notes are guaranteed
on a senior unsecured basis by Elan and all of its existing
material subsidiaries.

Outstanding ratings on Elan (including the 'B' corporate credit
rating) and its related entities were affirmed.  The ratings
outlook is stable.

Also, Moody's Investors Service assigned a B3 rating to the
proposed new senior unsecured notes of Elan Finance plc
reflecting a guarantee from Elan Corporation plc and material
subsidiaries.  At the same time, Moody's affirmed Elan's
existing ratings (B3 Corporate Family Rating) and the stable
rating outlook.

The rating outlook is stable.

Rating assigned:

Elan Finance plc

    * B3 fixed rate senior notes due 2013 (guaranteed by
      Elan Corporation, plc and subsidiaries)

    * B3 floating rate senior notes due 2013 (guaranteed by
      Elan Corporation, plc and subsidiaries)

Ratings affirmed:

Elan Corporation, plc

    * B3 corporate family rating

Elan Finance plc

    * B3 fixed rate senior notes of US$850 million due 2011
      (guaranteed by Elan Corporation, plc and subsidiaries)

    * B3 floating rate senior notes of US$300 million due 2011
      (guaranteed by Elan Corporation, plc and subsidiaries)

Athena Neurosciences Finance, LLC

    * B3 senior notes of US$613 million due 2008 (guaranteed
      by Elan Corporation, plc and subsidiaries)

Moody's does not rate Elan's US$254 million convertible notes
due 2008.


FORD MOTOR: Loss Wasn't A Surprise, Says UAW President
------------------------------------------------------
United Auto Workers president Ron Gettelfinger said Monday that
Ford Motor Co.'s loss didn't come as a surprise, Bryce G.
Hoffman of The Detroit News reports.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Ford released preliminary financial results
disclosing US$12.75 billion in losses for the full year 2006
compared to a US$1.4 billion net profit in 2005.

Detroit News further reports that speaking to Detroit radio
station WJR, Mr. Gettelfinger said that he knew Ford was "headed
down a bad road" after reviewing the company's books a year ago.

"That's why we made the movement that we did on healthcare,"
Detroit New quotes Mr. Gettelfinger, referring to an agreement
between the company and UAW to cut some retiree healthcare
benefits.  However, he added that Ford "is in a pretty strong
position right now. They've got financing behind them.  We're
looking forward to them pulling this thing out."

Detroit News further reports that the union is currently in
talks with the company regarding its planned bonuses for white-
collar employees.

"We have discussed the fact that we would be making concessions
and (salaried workers) would be getting bonuses.  The
discussions that we have with the corporation are between us and
them."  Detroit News relates quoting Mr. Gettelfinger.

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

The company also has operations in Japan.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's $3 billion of senior convertible notes due
2036.


JAPAN AIRLINES: To Withdraw from 10 Domestic Routes
---------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Jan. 24, 2007, that Japan Airlines Corp. will realign its
domestic routes as part of its efforts to turn around its
operations.

The Australian earlier stated that this domestic route
realignment is expected to increase Japan Airlines' profit by
JPY4 billion (US$41.7 million) in fiscal year 2007.

In an update, The Japan Times relates that Japan Airlines
disclosed on Jan. 29 that its group companies will withdraw from
10 unprofitable domestic routes starting in April to help
restructure its business.

According the report, the 10 routes include seven flights per
week between Nagoya and Kitakyushu, between Nagoya and Nagasaki,
between Kobe and Sendai, between Kagoshima and Naha, and four
flights per week between Fukuoka and Aomori.  The report adds
that the airline will also reduce flights on five routes,
including those between Nagoya and Sapporo and between Sendai
and Fukuoka.

On the other hand, Japan Times says, group flight services on
four other routes, including Osaka-Sapporo and Osaka-Fukuoka,
will increase, with seven flights per week commencing between
Kobe and Ishigaki.

To improve its competitiveness, Japan Airlines will retire eight
McDonnell Douglas MD-87 aircraft during the year and add five
Boeing 737-800s for services between Haneda and other airports,
the report further notes.

Japan Times says that Japan Airlines' announcement relating to
the domestic route suspensions comes right ahead of the
scheduled February 6 release of its new medium-term business
plan.

                     About Japan Airlines

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

                          *     *     *

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

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

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


JAPAN AIRLINES: To Sell 30% Stake in Jalux to Sojitz
----------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Jan. 17, 2007, that Japan Airlines Corp. expressed an intent to
sell part of its holdings in two subsidiaries -- Jalux Inc. and
Tokyo Humania Enterprise Inc. -- in order to improve its
financial condition.

A subsequent TCR-AP report on Jan. 24, cited Aero News as saying
that Japan Airlines is negotiating to sell about half of its 51%
stake in Jalux to trading house Sojitz Corp., wherein Sojitz is
expected to pay up to JPY10 billion.

AFX News Limited, in an update, relates that Japan Airlines said
that it has agreed to sell to Sojitz a 30% stake -- or
3.83 million shares -- in Jalux on yet undisclosed terms.

The airline company assured that it would disclose the sale
price as soon as it is set, Reuters says.  Yet, Japan Airlines,
the report notes, said that its expected special gain from the
sale is already reflected in its earnings forecast for the
fiscal year ending March 31, 2007.

According to AFX, when the transaction is completed in March,
Japan Airlines' stake in Jalux will decline to 21.35%.

Reuters says that shares in Japan Airlines were up 1.2% at
JPY257 as of 5:38 GMT on Tuesday, while Jalux rose 0.2% to
JPY2,285 and Sojitz was down 3.7% at JPY414.

                         About Jalux Inc.

Tokyo-based JALUX Inc. -- http://www.jalux.com/-- is involved  
in Aviation related business particularly in aircraft
components, aircraft fuel, machinery equipment and materials,
cabin service supply, in-flight sales, and textiles supply.  The
company is also involved in life service business and customer
service.

                        About Sojitz Corp.

Headquartered in Tokyo, Sojitz Corp. -- http://www.sojitz.com/
-- is a trading company involved in machinery and aerospace,
energy and mineral resources, chemicals and plastics, real
estate development and forest products, consumer lifestyle
business, and new consumer development.

                       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.


M. FABRIKANT & SONS: Secures Additional Financing from Lenders
--------------------------------------------------------------
M. Fabrikant & Sons Inc. has negotiated additional financing
arrangements with its senior secured lenders, while the company
continues to actively pursue a full range of strategic
alternatives, including the sale, refinancing, or reorganization
of the firm.  Fabrikant believes that its Chapter 11 proceedings
currently provide the best opportunity to maximize the value of
its assets and its business for all stakeholders.

"We are thrilled to announce that our new lenders are supportive
of our reorganization process and willing to provide us with
additional liquidity," Matthew Fortgang, CEO of Fabrikant said.  
"This makes it possible to get back to levels of service our
customers have come to expect and trust from Fabrikant."

Headquartered in New York City, M. Fabrikant & Sons, Inc. --
http://www.fabrikant.com/-- sells & distributes diamonds and  
jewelry.  Established in 1895, the company is one of the oldest
diamond and jewelry wholesaler in the world, including
Japan, Canada, China, Thailand, Israel, Belgium and Italy.

The company and its affiliates, Fabrikant-Leer International,
Ltd., filed for chapter 11 protection on Nov. 17, 2006 (Bankr.
S.D.N.Y. Case Nos. 06-12737 & 06-12739).  Mitchel H. Perkiel,
Esq., at Troutman Sanders LLP, represent the Debtors.  When the
Debtors filed for protection from their creditors, they listed
estimated assets and debts of more than US$100 million.  The
Debtors' exclusive period to file a chapter 11 plan expires on
Mar. 17, 2007.


NIKKO CORDIAL: Top Executives Aided Fraud, Special Panel Says
-------------------------------------------------------------
A special panel looking into the accounting fraud at Nikko
Cordial Corp. issued a report on Jan. 30, 2007, saying that the
company's top management was involved in inflating profits, The
Japan Times reports.

According to the report, the findings of the panel, which is
composed of four outside legal experts led by Surugadai Law
School professor Masaharu Hino, are contradictory to the
brokerage firm's earlier contention that the fraud was
perpetrated by a single employee.

The Asahi Shimbun relates that the independent committee
concluded that former Nikko Cordial executives Hajime Yamamoto
and Hirofumi Hirano were directly involved in the falsification
of the company's consolidated earnings report for the year
through March 2005.

Mr. Yamamoto was Nikko Cordial's chief financial officer from
October 2001 to February 2006 and Mr. Hirano is the former
president of Nikko Principal Investments Japan Ltd., an
investment unit of the group.

The Times notes that, according to the panel, Mr. Hirano, who
resigned over the scandal, was the key figure in the fraudulent
accounting, which involved Nikko Cordial subsidiaries, including
Nikko Principal.  

The panel believes that Mr. Hirano instructed his subordinates
to improperly pad Nikko Principal's profits and that he was
present at important meetings and took the initiative, The Times
notes.

Asahi Shimbun also cites the panel as saying that then Nikko
Cordial President Junichi Arimura may also be involved in the
deal and that it cannot completely clear him of suspicion.  The
panel said that Mr. Arimura has a grave responsibility as top
executive.

However, Asahi Shimbun clarifies that the panel said former
Nikko Cordial Chairman Masashi Kaneko had no involvement.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 27, 2006, Mr. Arimura and Mr. Kaneko quit their posts over
charges that the company committed accounting irregularities.

Although Mr. Kaneko and Mr. Arimura took responsibility, they
denied that top executives were directly involved in the
wrongdoing, The Times points out.

The report further states that Mr. Hirano, Mr. Yamamoto and Mr.
Arimura have all denied accusations of their involvement in the
fraud.

The TCR-AP reported on Dec. 22, 2006, that Japan's Securities
and Exchange Surveillance Commission began investigating Nikko
Cordial for falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.

The accounting irregularities stemmed from the issue of
exchangeable bonds to Nikko Principal in 2004, and the August
2004 purchase of telecommunications company Bellsystem24 Inc. by
Nikko Principal Investments Japan.

                     Ex-CFO Yamamoto Quits

In a related news, Bloomberg says that former CFO and board
member Yamamoto quit after he was implicated in the accounting
irregularities plaguing Nikko Cordial.

                      About Nikko Cordial

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

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

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


NIKKO CORDIAL: Probe Findings Cause Shares to Plunge
----------------------------------------------------
Shares in Nikko Cordial Corp. were set to plunge after
investigators found that the company's top executives
intentionally misreported transactions to inflate profit,
Bloomberg News says.

The report relates that Nikko Cordial shares were untraded at
11:48 a.m. yesterday in Tokyo, with the latest offer at
JPY1,184, 14% lower than Tuesday's closing price of JPY1,384.
The Tokyo Stock Exchange has a JPY200 limit on daily share
movements.

Reuters cites Takahiro Murai, general manager of equities at
Nozomi Securities, as saying that there is a strong possibility
that Nikko Cordial could meet the standards for delisting.   

Bloomberg's Takahiko Hyuga explains that an independent panel
investigating the fraud at Nikko Cordial contended that the firm
artificially inflated 2004 earnings by excluding losses at a
wholly owned unit from its accounts.  Masaharu Hino, the former
Financial Services Agency commissioner who led the
investigation, said that Nikko Cordial's former management was
responsible for the fraud.

"The focus of the debate over whether or not the company will be
delisted should shift to how serious the false statement was and
the protection of investors.  It is the TSE that will make these
decisions," Reuters quotes Azuma Ohno of UBS.

The Tokyo Stock exchange said it will use the panel's findings
in deciding whether to remove Nikko's shares, Bloomberg notes.

According to Mr. Hyuga, Nikko Cordial's stock will be monitored
for a possible removal from trading until at least the end of
February 2007, when the firm is to restate financial results.

                      About Nikko Cordial

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

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

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


SANYO ELECTRIC: Posts JPY7.3-Bil. Group Net Loss for 3rd Quarter
----------------------------------------------------------------
Sanyo Electric Co. reported a group net loss of JPY7.3 billion
(US$59.9 million) for the quarter ended Dec. 31, 2006, compared
with the year-earlier period's net profit of JPY6.22 billion,
The Wall Street Journal reports.

According to AFX News Limited, Sanyo Electric's losses come
after the company booked a special provision for an early
retirement program, and from costs related to the restructuring
of its group portfolio.

Specifically, AFX News relates, in the three months ended
December 2006, Sanyo set aside JPY11.9 billion as a provision
for 967 workers who applied for early retirement.  Moreover, the
company is set to spend JPY21 billion to finance the axing of
2,200 jobs, which move is expected to save it JPY17 billion in
personnel costs every year from the next fiscal year onwards.

The Journal relates that group sales dropped 3.1% to
JPY588.86 billion because of a slump at its consumer-electronics
business, including sales of digital cameras.

Domestic sales fell 11.4% in the December quarter, while
overseas sales rose 4%, The Associated Press states.  The report
also cites Sanyo as saying that by business segments, in the
most recent quarter, increased competition in digital cameras
offset higher sales of mobile phones and advanced washing
machines, leading to a 9.2% drop in consumer segment sales.

Due to cost cuts, the company's group operating profit climbed
31% to JPY15.07 billion, The Journal notes.  AFX relates that
non-operational income -- covering revenue such as interest and
dividend income and return on assets -- dropped to
JPY8.6 billion from JPY19.4 billion the year earlier, partly due
to the de-consolidation of units such as Sanyo Homes.

AFX recounts that in the fiscal year ended March 2006, Sanyo
Electric spent JPY84.9 billion on restructuring, which included
cutting 14,000 jobs, and it took charges totaling
JPY71.3 billion to write down the impaired value of its
semiconductor assets and other property.

For the full year to March 2007, the report says, Sanyo forecast
a net loss of JPY50 billion and operating profit of JPY35
billion on revenue of JPY2.2 trillion.

                       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.


US AIRWAYS: CEO Calls on Senate to OK Airline Industry Changes
--------------------------------------------------------------
The Chairman and Chief Executive Officer of US Airways Group
Inc., Doug Parker, testified at the Senate Commerce, Science and
Transportation Committee hearing on "The State of the Airline
Industry: the Potential Impact of Airline Mergers and Industry
Consolidation," calling upon the Senate to allow market forces
to continue to bring about positive change for the airline
industry.

When Mr. Parker last addressed the Committee, shortly after the
tragic events of Sept. 11, 2001, the airline industry was in a
precipitous financial situation.  At that time, Members of the
Committee and others in Congress stood with the industry by
demonstrating leadership and conviction in enacting legislation
to provide much needed liquidity to our industry.  The measures
passed by Congress -- direct cash transfers, the creation of a
loan stabilization board, and relief on war risk insurance
premiums, among other actions -- enabled the industry to cover
its basic operating expenses, including paying employees and
serving communities at a time when commercial loans and
financing were unavailable at any cost.

In his testimony, Mr. Parker said, "All of us in the industry
were grateful for the help of the nation.  And we all knew that
the industry, like America, had been changed forever.  But none
of us could have foreseen the severity and duration of the
crisis that faced airlines.  Since 2001 there have been 24
Chapter 11 filings and 5 liquidations, US$35 billion in
cumulative losses; and 154,000 airline industry employees who
have lost their jobs.  The severe impact of multiple shocks to
the aviation industry caused the industry to repeatedly come
back to Congress for help on a regular basis.  While Congress
did help, we also heard the message -- and appropriately so --
that federal support should be the exception, and not the rule -
- and that it was time, as an industry, that we got our own
house in order.  At America West -- now US Airways -- we took
that message to heart."

According to Mr. Parker's testimony, aggressive cost management
and consumer friendly policies and pricing allowed America West
to return to profitability.  The merger of America West and US
Airways in 2005 further accelerated both profitability and
benefits to employees and consumers.  US Airways posted a profit
excluding special items for the first three quarters of 2006,
and is one of the only network carriers to project a profit for
the fourth quarter.

"The frontline employees of US Airways and America West who
sacrificed so much to turn around and then merge our companies
will receive 2006 profit sharing payments in March," Mr. Parker
said.  "In fact, year-to-date through September 2006, our total
accrual for profit sharing was US$48 million.  We fully
anticipate that amount to increase after we report our fourth
quarter results []."

Consumers have benefited from popular fare reductions in diverse
markets such as Augusta, Georgia; Huntsville, Alabama;
Huntington, West Virginia; Syracuse, New York, Willimington,
North Carolina; Harrisburg, Pennsylvannia; and most recently,
Charlottesville, Virginia.  In total, US Airways has lowered
fares by as much as 83 percent in over 1,100 markets.

US Airways' proposed merger with Delta Air Lines Inc. provides
an opportunity to replicate and exceed the success of the
America West/US Airways merger, and create one of the most
financially stable airlines in the industry; an airline that can
compete successfully against all carriers: low-cost,
traditional, and international mega-carriers.  All domestic
airports that have US Airways or Delta service will be served by
the new Delta after the merger.

In his remarks, Mr. Parker testified, "With the ability to lower
costs, gain efficiencies and adjust flying to better align
demand and capacity, we believe we can lower fares in dozens of
new markets and communities, just as we are doing at US Airways
today.  Moreover, passengers will benefit from the ability to
get to more destinations via more routings; it is far more
likely that thanks to the new Delta more passengers will be able
to get to their destination at a time convenient for them and at
a price that is reasonable, than would be possible under either
stand-alone Delta or US Airways."

Mr. Parker pledged to the Committee members, "We will not
furlough any frontline employees of Delta or US Airways as part
of this merger.  We will align the work group cost structures
between current US Airways and Delta employees, and going
forward we will move to the higher cost scale.  In fact, the day
after the merger closes Delta employees won't notice any
changes-not even a change to the name of the airline.  Over
time, we will seek to take the best practices from either Delta
or US Airways and standardize them across the new combined
airline.  Our ultimate goal is to build a stronger and more
secure future for all of our stakeholders."

"The airline industry remains extremely fragmented with
substantial levels of excess capacity.  Even after the merger,
and the announced capacity reductions, our industry will remain
highly-competitive, and consumers will continue to enjoy high-
service levels and low fares.  We have put forth a fair and
equitable proposal, which we have enhanced to make even more
compelling, to merge with Delta while the carrier is still in
bankruptcy, and to make the combination of Delta and US Airways
into a stronger, more competitive carrier than either carrier
can become on its own," testified Mr. Parker.

Mr. Parker's remarks concluded, "Our industry stands at a
crossroads.  We can continue down the current path of boom and
bust uncertainty, or we can chart a new course.  The question
that legislators and policymakers face is simple; shall we
embrace change to better serve our customers, employees and
communities, or are we content with a future of continued
financial uncertainty and government bailouts? We believe -- and
our experience has proven -- that we have to break with the
failed policies of the past in order to provide a more
sustainable future for all stakeholders."

                         About US Airways

Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of:

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

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

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

The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005.  The Debtors completed their
merger with America West on the same date.  (US Airways
Bankruptcy News, Issue No. 135; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)   

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

                          *     *     *

As reported in the Troubled Company Reporter on Jan. 11, 2007,
Standard & Poor's Ratings Services stated that its ratings on US
Airways Group, including the 'B-' corporate credit ratings on US
Airways Group and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
remain on CreditWatch with developing implications, where they
were initially placed on Nov. 15, 2006.


US AIRWAYS: Improved Bid Grants Recovery for Delta Air Creditors
----------------------------------------------------------------
The Unofficial Committee of Unsecured Claimholders of Delta Air
Lines, Inc., urged the Official Creditors' Committee to
carefully consider the meaningfully improved proposal by US
Airways Group, Inc., to merge with Delta and commit an open
process that would allow a full exploration of strategic
alternatives.

The Unofficial Committee believes it is essential that creditors
be given a chance to decide whether to pursue a standalone
reorganization plan or a viable alternative means of maximizing
value.  The US Airways bid is a viable alternative that should
be explored.

The Unofficial Committee believes this proposal provides a
superior recovery for creditors compared to what they would
receive under Delta's standalone Chapter 11 plan.  Investors
have also concluded the US Airways offer is economically
superior, as evidenced by their pricing of Delta bonds in recent
weeks, as well as on Jan. 29, 2007, in response to press reports
about the improved merger proposal.

As the largest organized group of unsecured claimholders of
Delta, the Unofficial Committee members are vitally concerned
that creditor recoveries be maximized.  Other creditors agree --
since last week, numerous holders of Delta claims have contacted
the Unofficial Committee to register their support for its
position.

While there are risks inherent in any transaction, these risks
have been minimized under the terms of the latest proposal by US
Airways.  The Official Creditors' Committee should urge Delta
management to:

   * Provide reasonable and customary access for US Airways to
     perform its due diligence in a manner consistent with
     similar transactions.

   * Fully cooperate with US Airways to make the required
     filings under HSR.

   * Agree to a 30-day continuance of the disclosure statement
     hearing to allow for due diligence.

Given the magnitude of creditor support for a complete
evaluation of the US Airways proposal, the Official Creditors'
Committee should take these reasonable steps so that creditors
may have an opportunity to decide for themselves whether they
prefer a merger alternative or standalone reorganization.

The Unofficial Committee's financial advisor is Jefferies &
Company, Inc., and its legal counsel is Paul, Weiss, Rifkind,
Wharton & Garrison LLP.

                         About Delta Air

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

                         About US Airways

Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of:

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

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

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

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

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

                          *     *     *

As reported in the Troubled Company Reporter on Jan. 11, 2007,
Standard & Poor's Ratings Services stated that its ratings on US
Airways Group, including the 'B-' corporate credit ratings on US
Airways Group and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
remain on CreditWatch with developing implications, where they
were initially placed on Nov. 15, 2006.


US AIRWAYS: Keeps Mum on Upped Delta Air Offer
----------------------------------------------
US Airways Group Inc. wouldn't comment on reports that it
offered to add US$1 billion to its bid for Delta Air Lines Inc.,
the Associated Press reports.

The Wall Street Journal reported Monday, citing people familiar
with the matter, that US Airways was willing to up its bid on
the condition that Delta's Official Committee of Unsecured
Creditors:

    * demand that Delta open itself to due diligence by US
      Airways;

    * ask the Court to postpone Delta's disclosure statement
      hearing scheduled on February 7; and

    * support the start of a formal antitrust review.

WSJ further related that the increased offer came after US
Airways was approached by a group of Delta creditors consisting
of short-term investors who were not part of the Creditors'
Committee.

AP quotes Valerie Wunder, a US Airways spokeswoman as saying,
"our advisers are in regular contact with (Delta's) ad hoc
committee, and the advisers to the creditors committee."

"We expect this will continue as the Feb. 1 deadline on our
offer to continue the process approaches. However, we are not
going to comment on the specifics of any conversation."
Ms. Wunder adds.

AP also quotes US Airways spokesman Phil Gee saying that US
Airways hasn't officially decided to change its offer and would
have to notify the SEC if it did.

WSJ had reported that although the upped bid was final, it
wasn't yet official, as it needed director approval.

                        About US Airways

Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of:

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

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

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

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

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

                          *     *     *

As reported in the Troubled Company Reporter on Jan. 11, 2007,
Standard & Poor's Ratings Services stated that its ratings on US
Airways Group, including the 'B-' corporate credit ratings on US
Airways Group and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
remain on CreditWatch with developing implications, where they
were initially placed on Nov. 15, 2006.


XM SATELLITE: Could Not Merge With SIRIUS Says FCC Chairman
-----------------------------------------------------------
Federal Communications Commission's chairman Kevin Martin said
that XM Satellite Radio Holdings Inc. and SIRIUS Satellite Radio
Inc. could not merge under current FCC rules, reports say.

"The commission looks at anything that is presented to it.  All
of the commission's rules are open to be changed," Mr. Martin
said in a Reuters report.

According to industry analysts, the regulatory guidelines need
to be changed before a merger between the two is approved.  
Also, antitrust regulators need to approve it.

According to industry sources, SIRIUS' units are not equipped to
play XM's stations, and vice versa, Kevin Shult of Blogging
Stocks say.

                           About SIRIUS

New York-based SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) --
http://www.sirius.com/-- delivers more than 125 channels of the  
best programming in all of radio.  SIRIUS is the original and
only home of 100% commercial free music channels in satellite
radio, offering 69 music channels available nationwide.  SIRIUS
also delivers 65 channels of sports, news, talk, entertainment,
traffic, weather, and data.  SIRIUS is the Official Satellite
Radio Partner and broadcasts live play-by-play games of the NFL,
NBA, and NHL and.  All SIRIUS programming is available for a
monthly subscription fee of only $12.95.

SIRIUS products for the car, truck, home, RV and boat are
available in more than 25,000 retail locations, including Best
Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's
Club, RadioShack and at http://shop.sirius.com/  

SIRIUS radios are offered in vehicles from Audi, BMW, Chrysler,
Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus,
Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Rolls
Royce, Scion, Toyota, Porsche, Volkswagen and Volvo.  Hertz also
offers SIRIUS in its rental cars at major locations around the
country.

                        About XM Satellite

Headquartered in Washington, D.C., XM Satellite Radio Inc.
(Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned  
subsidiary of XM Satellite Radio Holdings Inc.  XM has been
publicly traded on the NASDAQ exchange since Oct. 5, 1999.  XM's
2007 lineup includes more than 170 digital channels of choice
from coast to coast: commercial-free music channels, premier
sports, news, talk, comedy, children's and entertainment
programming; and the most advanced traffic and weather
information.  XM has broadcast facilities in New York and
Nashville, and additional offices in Boca Raton, Fla.;
Southfield, Mich.; and Yokohama, Japan.

At Sept. 30, 2006, XM Satellite Radio Inc.'s balance sheet
showed a stockholders' deficit of US$253,183,000, compared with
a deficit of US$358,079,000, at June 30, 2006.

                          *     *     *

As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's Ratings Services assigned its 'CCC' rating to
XM Satellite Radio Inc.'s US$600 million senior unsecured notes.  

At the same time, Standard & Poor's assigned its 'B-' rating and
recovery rating of '1' to XM's $250 million first-lien secured
revolving credit facility, indicating an expectation of full
recovery of principal in the event of a payment default.


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

BOWATER INC: Signs Abitibi-Consolidated All-Stock Merger Deal
-------------------------------------------------------------
Bowater Incorporated and Abitibi-Consolidated Inc. disclosed a
definitive agreement to combine in an all-stock merger of
equals.

The combination will create a new leader in publication papers
-- an operationally and financially stronger company better able
to meet changing customer needs, compete more effectively in an
increasingly global market, adapt to lower demand for newsprint
in North America, and deliver increased value to shareholders.

The combined company, which will be called AbitibiBowater Inc.,
will have pro forma annual revenues of approximately
US$7.9 billion or CDN$9.3 billion, making it the third largest
publicly traded paper and forest products company in North
America and the eight largest in the world.  The current
combined enterprise value of the two companies is in excess of
US$8 billion or CDN$9.4 billion.

John W. Weaver, president and chief executive officer of
Abitibi-Consolidated, will be executive chairman of
AbitibiBowater, and David J. Paterson, chairman, president and
chief executive officer of Bowater, will be president and chief
executive officer of AbitibiBowater.  The AbitibiBowater Board
of Directors will consist of 14 directors, seven from each
company.

AbitibiBowater's headquarters and executive office will be
located in Montreal, Quebec, with a U.S. regional manufacturing
and sales office in Greenville, South Carolina.  The company,
which will be incorporated in Delaware as the new parent
company, will apply to list its shares on the New York and
Toronto stock exchanges.

Under the terms of the transaction, each common share of
Abitibi-Consolidated will be exchanged for 0.06261 common share
of AbitibiBowater, and each Bowater common share will be
exchanged for 0.52 common share of AbitibiBowater.  The exchange
ratio will result in 48% of AbitibiBowater being owned by former
Abitibi-Consolidated shareholders and 52% of AbitibiBowater
being owned by former Bowater shareholders.

The combination is expected to generate approximately $250
million or CDN$295 million of annualized cost synergies from
improved efficiencies in such areas as production, selling,
general and administrative costs, distribution and procurement.  
These synergies are in addition to cost saving initiatives
already in process at both companies.

Mr. Weaver said, "The new AbitibiBowater will be a global leader
headquartered in Canada with a brighter future than either
company would have on its own.  The combined company's ability
to realize significant synergies will increase shareholder
value, improve our financial flexibility and better position us
to compete in today's increasingly competitive global
marketplace.  Combining our companies is also the best way to
continue to contribute to the local and regional economies of
the communities in which we operate."

Mr. Paterson said, "This is a logical strategic step to address
the realities of today's marketplace.  A more efficient
manufacturing platform will enable us to bring our customers
better product quality, new product innovation, and improved
logistical flexibility.  Both Abitibi-Consolidated and Bowater
shareholders will benefit from the upside potential of a
financially stronger company that is able to generate
significant cost synergies, improve its balance sheet, and
compete more effectively."

AbitibiBowater's product lines will include newsprint, uncoated
and coated mechanical papers, market pulp, and wood products.
The company will also be one of the world's leading consumers of
recycled newspapers and magazines as it builds on the existing
efforts of both companies to be leaders in environmentally
sustainable production practices.

AbitibiBowater will own or operate 32 pulp and paper facilities
and 35 wood product facilities located mainly in Eastern Canada
and the Southeastern U.S.  Pro forma combined paper production
capacity is approximately 11.3 million tonnes per year and about
3.1 billion board feet of lumber.

                       Transaction Details

The exchanges of Abitibi-Consolidated and Bowater common shares
for AbitibiBowater common shares will be tax deferred for U.S.
resident holders of Abitibi-Consolidated and Bowater common
shares.

Taxable Canadian resident holders of Abitibi-Consolidated common
shares may elect to receive on a tax-deferred basis exchangeable
shares of a Canadian subsidiary of AbitibiBowater.  
AbitibiBowater will apply to list these exchangeable shares on
the Toronto Stock Exchange.  These shares will be exchangeable
into AbitibiBowater common shares at the option of their
holders.

For Abitibi-Consolidated, the combination will be achieved
through a Canadian Court-approved Plan of Arrangement requiring
the affirmative vote of the holders of two-thirds of the
Abitibi-Consolidated common shares present or represented by
proxy at a meeting of Abitibi-Consolidated shareholders.  For
Bowater, the combination will be effected through a Delaware
merger requiring the affirmative vote of a majority of all
outstanding Bowater common shares at a meeting of Bowater
shareholders.

The combination has been approved unanimously by the Boards of
Directors of both companies, which received fairness opinions
from their respective financial advisors.  The combination is
subject to approval by the shareholders of both companies,
regulatory approvals, and customary closing conditions.  It is
expected to be completed in the third quarter of 2007.  Abitibi-
Consolidated and Bowater will continue to operate separately
until the transaction closes.

For Abitibi-Consolidated, CIBC World Markets Inc. and Credit
Suisse Securities (USA) LLC acted as financial advisors and
Paul, Weiss, Rifkind, Wharton & Garrison LLP, Davies Ward
Phillips & Vineberg LLP, and McCarthy T,trault LLP acted as
legal advisors.

For Bowater, Goldman, Sachs & Co. and UBS Investment Bank acted
as financial advisors and Troutman Sanders LLP, Ogilvy Renault
LLP, and Mayer, Brown, Rowe & Maw LLP acted as legal advisors.

                  About Abitibi-Consolidated Inc.

Abitibi-Consolidated Inc. (NYSE: ABY, TSX: A) --
http://www.abitibiconsolidated.com/-- is a global supplier in  
newsprint and commercial printing papers as well as a major
producer of wood products, serving clients in some 70 countries
from its 45 operating facilities.  Abitibi-Consolidated is among
the largest recyclers of newspapers and magazines in North
America, diverting annually approximately 1.9 million tonnes of
waste paper from landfills.  It also ranks first in Canada in
terms of total certified woodlands.

                   About Bowater Incorporated

Bowater Inc. (NYSE: BOW, TSX: BWX) -- http://www.bowater.com/--   
produces coated and specialty papers and newsprint.  In
addition, the company sells bleached market pulp and lumber
products.  Bowater has 12 pulp and paper mills in the United
States, Canada, and South Korea.  In North America, it also owns
two converting facilities and 10 sawmills.  Bowater's operations
are supported by approximately 835,000 acres of timberlands
owned or leased in the United States and Canada and 28 million
acres of timber cutting rights in Canada.  Bowater operates six
recycling plants and is one of the world's largest consumers of
recycled newspapers and magazines.

                          *     *     *

As reported in the Troubled Company Reporter on June 27, 2006,
Fitch Ratings has assigned a 'BB' rating to Bowater, Inc.'s
senior secured bank debt.  The company's issuer default ratings,
'BB-' and senior unsecured bond ratings, 'BB-', remain
unchanged.  The Rating Outlook remains Stable.

The TCR, on June 21, 2006, reported that Moody's Investors
Service affirmed the Company's B1 long term debt ratings and
SGL-2 speculative grade liquidity rating.  The Outlook is
Stable.

Dominion Bond Rating Service downgraded the rating of Bowater
Canadian Forest Products Inc. to BB (low) from BB.  The trend
remains negative.

Standard & Poor's Ratings Services lowered its ratings on
Bowater and subsidiary Bowater Canadian Forest Products Inc.,
including the corporate credit rating on each entity to 'B+'
from 'BB' in December 2005.  S&P said the outlook is stable.


BOWATER INC: Abitibi Merger Cues Moody's to Hold Low-B Ratings
--------------------------------------------------------------
Moody's Investors Service affirmed Bowater Incorporated's B1
corporate family, B2 senior unsecured and SGL-2 speculative
grade liquidity ratings but revised the outlook to developing
from stable.

The action follows the company's disclosure of a proposed merger
with Abitibi-Consolidated Inc., and is based on the assessment
that the transaction is expected to have a minimal impact on the
company's credit profile.  In turn, this is based on the fact
that both companies have the same ratings and all consideration
will be non-cash.  Consequently, there is no immediate impact on
the relationship between debt and cash flow.  

In addition, the transaction's expected cost savings and synergy
benefits, while potentially significant, are not sufficient to
prompt a positive outlook or ratings upgrade.  Indeed, with both
companies being weakly positioned at the B1 level, the expected
benefits serve only to improve relative positioning at the
prevailing rating.  Owing to the transaction not closing until
September and the very significant uncertainties that exist,
i.e. the vagaries of shareholder and regulatory approval,
composition of a combined management team, formulation of board
and financial policies, and the structural status of individual
bond issues at each company vis-a-vis the other and vis-a-vis a
yet-to-be arranged operating credit facility, the ratings
outlook was changed to developing.

Moody's considers both predecessor companies to be weakly
positioned at the prevailing B1 level, with very poor credit
protection measures only being partially off-set by favorable
rating signals derived from business profile type measures such
as aggregate size and scale and cost competitiveness.

However, given the two companies' geographic and product line
overlap, the prospective transaction provides good scope for
significant cost savings and synergies.

Moody's also expects the combined company, AbitibiBowater, Inc.,
to have an improved ability to appropriately anticipate the
evolving supply-demand dynamic in the North American mechanical
pulp-based communication paper market.

Accordingly, Moody's expects the benefits of the business
combination to cause future performance and credit protection
measures to improve modestly and be more appropriate for the B1
rating level.  In the interim, the prospect of the transaction's
benefits forestalls adverse rating activity.

It should be noted that the transaction does not address the
fundamental issue of print media being disadvantaged relative to
digital.  The forces that have generated the past several years'
very poor financial performance are in no way combated by this
transaction.  In addition, US$-denominated spot pricing for
newsprint and uncoated mechanical papers has recently retreated
from highs observed in mid-to-late 2006.  This reverses a trend
that had seen US$-denominated prices increase steadily over a
four-year period.  With the transaction not expected to close
for several months, this development creates a concern that a
significant proportion of the business combination's benefits
may be swamped by extraneous forces before it can be
consummated.  This is especially the case given that a
significant proportion of the expected benefits will not be
realized until well into 2008.

Accordingly, in the event the transaction does not proceed or is
significantly delayed, or if business conditions deteriorate
markedly, there is a potential for an adverse rating action.

Outlook Actions:

   * Bowater Canada Finance Corp.

      -- Outlook, Changed To Developing From Stable

   * Bowater Incorporated

      -- Outlook, Changed To Developing From Stable

Headquartered in Greenville, South Carolina, Bowater
Incorporated -- http://www.bowater.com/en/-- produces newsprint   
and coated mechanical papers.  In addition, the company makes
uncoated mechanical papers, bleached kraft pulp and lumber
products.  The company approximately has 7,800 employees and has
12 pulp and papermills in the United States, Canada and South
Korea and 12 North American sawmills that produce softwood
lumber.  Bowater also operates two facilities that convert a
mechanical base sheet to coated products.  Bowater's operations
are supported by approximately 1.4 million acres of timberlands
owned or leased in the United States and Canada and 30 million
acres of timber cutting rights in Canada.  Bowater common stock
is listed on the New York Stock Exchange, the Pacific Exchange
and the London Stock Exchange.  A special class of stock
exchangeable into Bowater common stock is listed on the Toronto
Stock Exchange.


INDUSTRIAL BANK OF KOREA: Moody's Maintains BFSR at 'D-'
--------------------------------------------------------
Moody's Investors Service, on Jan. 31, 2007, assigned an A3
rating to the Industrial Bank of Korea's JPY50 billion Japanese
Yen Bonds -- Second Series (2007) due 2012.  The outlook for the
rating is positive in line with the outlook on Korea's sovereign
ratings.

Moody's notes that the rating is subject to receipt of final
documentation, the terms and conditions of which have not
changed in any material way from the draft documents the rating
agency reviewed.

Industrial Bank of Korea, established in 1961, is the second
largest of the three policy banks.  It plays an important policy
function providing working capital loans and facility loans to
SMEs, funded by deposits, borrowings and Small and Medium
Industry Finance Bonds.  The Industrial Bank of Korea Act, under
which the bank operates, provides for the bank's policy function
and strong sovereign support.  Article 43 of the Act states that
if IBK's reserves are insufficient to absorb losses, the
government is legally obligated to replenish the deficit.  The
Act also stipulates that the government will maintain full
control over the management, policies and operations of the
bank, regardless of whether it holds a majority stake.

As of 31st December 2005 the government controlled 66.7% of the
bank through direct holdings (51.0%), Export-Import Bank of
Korea (3.2%) and Korea Development Bank (12.5%).  Although the
government has announced its intention to reduce its ownership
of IBK for budget reasons, Moody's expects the direct and
indirect government ownership to remain over 50% and considers
government support for IBK is still of the highest level.  As of
December 31, 2005, the bank had KRW87.4tn in total assets.

The other ratings of the bank are as follows:

   -- Bank financial strength rating: D- (positive outlook);

   -- Long-term and short-term deposit ratings of A3 (positive
      outlook)/ P-2 (stable outlook);

   -- Subordinated debt rating of Baa1 (positive outlook); and

   -- Short-term debt rating of P-1 (stable outlook).


INDUSTRIAL BANK OF KOREA: JPY50B Samurai Debt Gets S&P's 'A-'
-------------------------------------------------------------
Standard & Poor's Ratings Services on Jan. 30, 2007, assigned
its 'A-' rating to Industrial Bank of Korea's JPY50 billion
five-year senior unsecured Samurai Bonds due 2012.

The rating on the unsecured debt is subject to final
documentation.

The long-term counterparty credit rating on IBK reflects its
public policy role as a government-owned, specialized policy
bank for supporting the small and midsize enterprise sector.  
The rating also reflects IBK's ability to maintain a sound
financial profile, with improving asset quality despite the
difficult economic environment.

The ratings on IBK also take into consideration the likelihood
of a gradual reduction in government ownership and the bank's
diminishing role in supporting SMEs, although majority ownership
by the government is likely to be retained in order to maintain
stability in the SME sector for the time being.

The ratings on IBK are lower than those on Korea's two other
policy banks, which are rated at the same level as the
sovereign: Korea Development Bank (KDB; A/Stable/A-1) and
Export-Import Bank of Korea (KEXIM; A/Stable/A-1).

Notwithstanding the similarity of the statutory status of the
three banks, IBK is rated lower because its mandate could more
easily be fulfilled by the private sector, making the risk of
privatization higher.


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

FOAMEX INT'L: Stockholders Unanimously Support Joint Plan
---------------------------------------------------------
Stockholders of Foamex International Inc. voted to unanimously
to accept the company's Second Amended Joint Plan of
Reorganization.

"We are pleased to have received the unanimous support of the
equityholders who voted on the Plan," Raymond E. Mabus, Jr.,
Chairman and Chief Executive Officer of Foamex, said.  "Over the
past several months, we have worked diligently to address the
interests of all our stakeholders in an effort to achieve the
most value possible for all stakeholders.  The announcement,
along with the previously reported Plan acceptance by the Senior
Secured Noteholders, reflects real progress towards our
emergence, which we continue to expect to occur in the first
quarter of 2007."

The company filed a supplement to the Plan with the United
States Bankruptcy Court for the District of Delaware.  As
anticipated by the Plan, the Plan Supplement contains
information and materials relating to implementation of the
Plan, including proposed forms of agreements that may be entered
into upon the Company's exit from bankruptcy.

Among other things, the Plan Supplement discloses the identity
of individuals proposed to become directors of the company upon
the effective date of the Plan.  The company's proposed
directors are subject to change prior to confirmation of the
Plan by the Court.

The proposed new directors are:

   * Robert B. Burke, Founder and Chief Executive Officer of
     Par IV Capital Management, LLC;

   * Seth Charnow of the D. E. Shaw Group; and

   * Eugene I. Davis, Chairman and Chief Executive Officer
     of PIRINATE Consulting Group, LLC.

The proposed continuing directors are:

   * Raymond E. Mabus, Jr.;

   * Gregory J. Christian, the Company's Executive Vice
     President, Chief Restructuring Officer, Chief
     Administrative Officer, and General Counsel who will assume
     the role of President of the reorganized company; and

   * Thomas M. Hudgins, Retired Partner, Ernst & Young LLP.

In addition, Gregory J. Corona, Chairman of Lakewood Capital,
LLC and Accubuilt, Inc., is expected to be invited to serve on
the board of directors of Reorganized Foamex International as of
the Effective Date.

The Plan Supplement contains additional information concerning
potential transactions and agreements to be entered into in
connection with the consummation of the Plan, including, without
limitation, information concerning the proposed exit facility,
the equity investment commitment, the proposed corporate
governance documents and the proposed executive officers, all of
which are subject to revision and modification prior to the
company's emergence from bankruptcy in accordance with the Plan.

A hearing to consider confirmation of the Plan is scheduled for
Feb. 1, 2007.

                          *     *     *

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

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

As reported in the Troubled Company Reporter on Dec. 8, 2006,
Moody's Investors Service has assigned a B2 corporate family and
probability of default ratings on Foamex L.P.  Concurrently,
Moody's has assigned a B1 rating to the company's US$425 million
first lien senior secured Term Loan B and a Caa1 rating to its
US$190 million second lien senior secured term loan (expected to
be downsized to US$175 million).  Moody's said the ratings
outlook is stable.


METROPLEX BERHAD: Bursa Extends Scheme Filing Date to Feb. 28
-------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Jan. 10, 2007, that Metroplex Berhad asked the Bursa Malaysia
Securities Bhd to extend to Feb. 28, 2007, the deadline for the
company to submit its proposed composite scheme of arrangement
to regularize its financial condition.

Metroplex was originally required to submit its scheme to
relevant authorities for approval on Dec. 8, 2006.

In an update, the company relates that the Bursa Malaysia has
approved its extension request.

                          *     *     *

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

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


METROPLEX BERHAD: Court Sets Important Hearing Dates
----------------------------------------------------
The Kuala Lumpur High Court, on January 29, 2006, set different
hearing dates with regard to the wind-up petition filed against
Metroplex Bhd by Morgan Stanley Emerging Markets Inc.

Specifically, the Court sets:

   April 3 and 4, 2007, for the:

   a) cross examination of the Third Independent Expert with
      respect to MB's application to strike out MSEMI's
      winding-up petition; and
            
   b) mentions of MSEMI's application for the appointment of a
      Provisional Liquidator for MB and MSEMI's application for
      an injunction restraining MB and Metroplex Holdings Sdn
      Bhd from selling the Legend Hotel.

   and

   February 27, 2007, for the mention of the previous
   Provisional Liquidator's application for remuneration.

                          *     *     *

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

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


MYCOM BERHAD: Unit & Olympia Properties Ink Trust Deed with OSK
---------------------------------------------------------------
KH Estates Sdn Bhd, a wholly owned subsidiary of Mycom Bhd, and
Olympia Properties Sdn Bhd entered into a Trust Deed with OSK
Trustees Berhad to act as concierge for lands to be acquired.

The lands to be held in trust by the OSK Trustees are:

   A) All the eight parcels of land in Mukim Batu, Daerah
      Wilayah Persekutuan -- to be acquired by Mycom from Kenny
      Height Developments Sdn Bhd in trust for KH Estates; and

   B) All the four parcels of land in Mukim Batu, Daerah Wilayah
      Persekutuan -- to be acquired by Olympia Industries Berhad
      from Kenny Heights in trust for Olympia Properties.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.

The company is also involved in hotel operation, provision of
management and financial services and investment holding.  
Operations of the Group are carried out in Malaysia and South
Africa.

Mycom is in the advanced stage of negotiations to settle its
foreign debts.  The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the company's accumulated losses.

As of Sept. 30, 2006, Mycom's balance sheets show total assets
of MYR815.37 million and total liabilities of MYR1.33 billion,
resulting in shareholders' deficit MYR518.41 million.


SOLUTIA INC: Balks at Panel's Intervention on Calpine Talks
-----------------------------------------------------------
Calpine Central L.P., and Decatur Energy Center LLC, along with
Solutia Inc., oppose the Official Committee of Unsecured
Creditors' request to intervene in the arbitration between
Calpine and Decatur, on one hand, and Solutia, on the other.

On behalf of Solutia, M. Natasha Labovitz, Esq., at Gibson, Dunn
& Crutcher LLP, in New York, notes that a private arbitration is
overseen by an independent panel of arbiters, and run in
accordance with Conflict Prevention & Resolution rules and
procedures.

During the arbitration proceeding, Solutia has freely and openly
communicated with counsel for the Creditors Committee on an
informal basis concerning Solutia's objections to the contested
claims of Calpine and Decatur, and significant developments in
the arbitration proceeding.

Given the Creditors Committee's knowledge of and informal
involvement in the arbitration proceeding from its inception,
the Motion to Intervene is not timely, Ms. Labovitz asserts.

Although the Creditors Committee has represented in its Motion
that it "does not seek delay," the intervention causes
substantial risk of delay either by the Committee or by other
parties-in-interest who may seek to follow the Committee's
example and intervene in the arbitration, Ms. Labovitz states.

The Creditors Committee has failed to demonstrate that its
interests are not being adequately protected, Ms. Labovitz
points out.  Solutia is aggressively prosecuting its objection
to the Contested Claims, and the Creditors Committee has
indicated no disagreement as to Solutia's handling of the case,
she maintains.

The Creditors Committee is seeking an order amending the
contract between Solutia and Calpine.  Hence, according to Ms.
Labovitz, the arbitration panel, whose power is limited by the
contract, may not recognize the Creditors Committee or
understand either the Creditors Committee's role in the
bankruptcy case or the role it proposes to play in the
arbitration.  Intervention may result in litigation and
confusion before the arbitration panel regarding issues as to
whether Solutia or the Creditors Committee is the proper party
prosecuting the objection of the Contested Claims, she contends.

Eliot Lauer, Esq., at Curtis, Mallet-Prevost, Colt & Mosle LLP,
in New York, attorney for Calpine, argues that non-signatories
to arbitration agreements have no right to participate in the
arbitration.

Neither the Rule 24(a)(2) of the Federal Rules of Civil
Procedures nor Section 1109(b) of the Bankruptcy Code alters the
general rule, Mr. Lauer asserts.  He notes, the non-signatory
may ask the parties' permission to participate, but absent all
parties consenting, may not intervene before the arbitral panel.  
Instead, the non-signatory must wait until the arbitration
enters the judicial system, Mr. Lauer says.

Moreover, the Creditors Committee has not satisfied the elements
for intervention under Civil Rule 24(a)(2), Mr. Lauer notes.  
The U.S. Bankruptcy Court for the Southern District of New York
should not permit intervention pursuant to Section 105(a), he
asserts.

Solutia and Calpine have already agreed upon a detailed
scheduling order in the arbitration proceeding.  Solutia and
Calpine have spent three and a half months engaging in discovery
and are now in the midst of depositions of witnesses to be
followed by expert discovery.

Permitting the Creditors Committee to intervene at this point in
the arbitration as a "formal party to the arbitration" will be
highly prejudicial to Calpine and Decatur, Mr. Lauer adds.

Moreover, the Creditors Committee's intervention in the private
arbitration will lead to increased expenses and inevitable
delays, Mr. Lauer insists.  Furthermore, the Creditors Committee
offers no explanation of what benefit its intervention will
provide to Solutia's estate.

Solutia is also concerned that the Court does not have the
authority to authorize the intervention, and that any order
authorizing the intervention will cause further litigation in
the arbitration.

Calpine and Solutia ask the Court to deny the Creditors
Committee's request.

As reported in the TCR-Europe on Jan. 19, before it filed for
bankruptcy, Solutia entered into a series of 20-year term
contracts scheduled to commence in 2002, with Calpine Central,
Calpine Power Services Company, and Decatur pursuant to which
Calpine built a natural gas co-generation facility on land
leased from Solutia at Solutia's plant in Decatur, Alabama.

Calpine and Solutia, however, agreed to delay commencement of
performance until June 1, 2004, because of the unanticipated
increase in natural gas prices.

In 2004, Solutia determined that the then-current and forecasted
price of natural gas rendered it more cost-effective for Solutia
to return to its historical practice of purchasing energy of the
Decatur plant from the Tennessee Valley Authority and generating
its own steam, rather than buying energy and steam from Calpine.  
On May 13, 2004, Solutia filed a motion seeking to reject
certain Contracts.

The Court entered a stipulated order on May 24, 2004, settling
the motion and approving the rejection of certain Contracts.
Calpine was permitted to submit proofs of claim for damages
allegedly resulting from the rejection of the Contracts.

Solutia objected to two of the three claims filed by Calpine for
damages relating to the Rejected Contracts.  Both claims
aggregate US$382,717,333.

The Court entered an order dated November 2005, compelling
arbitration of the contested claims of Calpine Central and
Decatur.  The parties agreed to stay the Arbitration to conduct
settlement negotiations; however, no resolution materialized
between the parties and, consequently, the Arbitration will
proceed.  The Creditors Committee then sought and obtained
approval, in August 2006, to retain conflicts counsel to
represent the interests of unsecured creditors in the
Arbitration.

The Creditors Committee and the Debtors have consulted
extensively about the merits of the Arbitration, and the Debtors
have granted the Creditors Committee access to documents
produced in the Arbitration.

John J. Jerome, Esq., at Saul Ewing LLP, in Philadelphia,
Pennsylvania, conflicts counsel to the Creditors Committee, told
the Court that the outcome of the Arbitration will affect the
ultimate recoveries available to unsecured creditors, therefore,
it is essential for the Creditors Committee to become a formal
party to the Arbitration in order to assert and protect the
interests of the unsecured creditors.

The Creditors Committee's request to intervene is also timely as
the Arbitration remains in the early stages -- fact discovery is
ongoing and the deadline to disclose experts and exchange expert
reports is in late March 2007.  The Arbitration hearing is not
until Aug. 27, Mr. Jerome noted.

The Creditors Committee does not intend to raise new issues,
assert new or different objections to the Calpine Claims, or
take any other actions that would adversely affect the
scheduling order entered by the Arbitration Panel in September
2006.  Moreover, no party will be prejudiced by the
intervention, Mr. Jerome said.  He clarified that the Committee
merely seeks to ensure that its constituents' interests are
represented.

                          *     *     *

Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its  
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications.  Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.

The Company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949).  When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts.  Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.


SOLUTIA INC: Wants Court to Increase OCP Payment to US$15 Mil.
-------------------------------------------------------------
Solutia Inc. and its debtor-affiliates ask the United States
Bankruptcy Court for the Southern District of New York to
increase the aggregate total amount payable to ordinary course
professionals from US$10,000,000 to US$15,000,000, without
prejudice to requests for further increase.

The Court, in January 2004, entered an order approving Solutia's
request to employ and pay ordinary course professionals.  The
OCPs could be retained and paid without having to file
individual retention and fee applications as long as the
aggregate amount of fees do not exceed US$10,000,000.

Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York,
New York, tells the Court that due to the duration of the
Debtors' Chapter 11 cases, Solutia will soon exceed the OCP Cap.

If the OCP Cap is not increased, Solutia will no longer have the
ability to employ and compensate its OCPs without their
preparation and filing of retention and fee applications, Mr.
Henes avers.

The preparation and filing of the applications is an unnecessary
financial burden to Solutia and its estates as the OCPs are
being retained in the ordinary course of business, Mr. Henes
asserts.  Hence, he maintains, an increase in the OCP Cap by
US$5,000,000 is in the best interests of the estates.

                       About Solutia Inc.

Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its  
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications.  Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.

The Company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949).  When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts.  Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.


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

ANGLO CERTIFIED: Shareholders Opt to Liquidate Business
-------------------------------------------------------
On Dec. 21, 2006, the shareholders of Anglo Certified Financial
Services Ltd resolved by special resolution to liquidate the
company's business and appointed Grant Bruce Reynolds as
liquidator.

The Liquidator can be reached at:

         Grant Bruce Reynolds
         Reynolds & Associates Limited
         PO Box 259059, Greenmount
         East Tamaki, Auckland
         New Zealand
         Telephone:(09) 577 0162
         Facsimile:(09) 576 5503


BRILL REALTY: Official Assignee Acts as Liquidator
--------------------------------------------------
On Dec. 19, 2006, the Official Assignee of Brill Realty Ltd was
appointed as the company's liquidator.

As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Auckland heard a liquidation petition against the
company on Dec. 19, 2006.   The Commissioner of Inland Revenue
filed the petition.

The Liquidator can be reached at:

         Official Assignee
         Insolvency and Trustee Service
         Private Bag 4714, Christchurch
         New Zealand
         Telephone: 0508 467 658
         Web site: http://www.insolvency.govt.nz


CHEFS FOODS: Shareholders Resolve to Liquidate Business
-------------------------------------------------------
On Dec. 29, 2007, the shareholders of Chefs Foods Ltd resolved
by special resolution to liquidate the company's business and
appointed John Albert Price and Christopher Robert Ross Horton
as joint and several liquidators.

Accordingly, creditors are required to prove their debts by
Feb. 2, 2007, to be included in any distribution the company
will make.

The Joint Liquidators can be reached at:

         John Albert Price
         Christopher Robert Ross Horton
         Horton Price Limited
         PO Box 9125
         Newmarket, Auckland
         New Zealand
         Telephone:(09) 366 3700
         Facsimile:(09) 366 7276


ELLAR SECURITY: Faces Liquidation Proceedings
---------------------------------------------
A petition to liquidate Ellar Security Ltd will be heard before
the High Court of Rotorua on March 5, 2007, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on Dec. 22, 2006.

The CIR's solicitor can be reached at:

         E. M. Duncan-Sittlington
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone:(07) 959 0471


HOWARD ELECTRICAL: Court Sets Liquidation Hearing for Feb. 5
------------------------------------------------------------
The High Court of Wellington will hear a liquidation petition
filed against Howard Electrical Ltd on Feb. 5, 2007, at
10:00 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on Dec. 7, 2006.

The CIR's solicitor can be reached at:

         Julia Marie Snelson
         Technical and Legal Support Group
         Wellington Service Centre
         1st Floor, New Zealand Post House
         7-27 Waterloo Quay (PO Box 1462)
         Wellington
         New Zealand
         Telephone:(04) 890 1127
         Facsimile:(04) 890 0009


M.M.M. LTD: Court to Hear Liquidation Petition on Feb. 2
--------------------------------------------------------
A liquidation petition filed against M.M.M. Ltd will be heard
before the High Court of New Plymouth on Feb. 2, 2007, at
10:00 a.m.

Mercer Stainless Ltd filed the petition with the Court on
Dec. 15, 2006.

Mercer Stainless' solicitor can be reached at:

         Kevin Patrick McDonald
         11/F, Global House
         19-21 Como Street (PO Box 331065 or DX BP 66086)
         Takapuna, Auckland
         New Zealand
         Telephone:(09) 486 6827
         Facsimile:(09) 486 5082


PINE HAULAGE: Faces CIR's Liquidation Petition
----------------------------------------------
On Dec. 4, 2006, the Commissioner of Inland Revenue filed a
liquidation petition before the High Court of Rotorua against
Pine Haulage Ltd.

The petition is scheduled for hearing on Feb. 7, 2007, at
10:45 a.m.

The CIR's solicitor can be reached at:

         E. M. Duncan-Sittlington
         Inland Revenue Department
         1 Bryce Street, Hamilton
         New Zealand
         Telephone:(07) 959 0471


PUKEHANA LTD: Commences Liquidation Proceedings
-----------------------------------------------
On Dec. 21, 2006, the shareholders of Pukehana Ltd resolved to
liquidate the company's business and appointed Atul Mehta as
liquidator.

Accordingly, creditors who failed to prove their debts on
Jan. 31, 2007, are excluded in the company's distribution of
dividend.

The liquidator can be reached at:

         Atul Mehta
         Level 10, 203 Queen Street (PO Box 2194)
         Auckland
         New Zealand
         Telephone:(09) 309 6011
         Facsimile:(09) 366 0261


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

EXPORT & INDUSTRY BANK: Board Schedules ASM on May 23
-----------------------------------------------------
Export and Industry Bank advises the Philippine Stock Exchange
that its Board of Directors set the bank's Annual Stockholders'
Meeting on May 23, 2007, at 8:30 a.m., at the Manila Polo Club,
Makati City.  The record date for the purpose of determining the
stockholders entitled to notice of, and to vote at, that meeting
will be on April 27, 2007.

                       President Retires

The bank also discloses that First President Ruben H. Santos has
retired.  Accordingly, Mr. Santos' duties as Head of the
Treasury and Financial Institutions Sector are now performed by
Executive Vice President Juan Victor S. Tanjuatco, but only in
an acting capacity.

                  About Export & Industry Bank

Headquartered in Makati City, Manila, Export and Industry Bank
-- http://exportbank.com.ph/-- has 50 branches and has revived  
former Urban Bank unit under new names.  Its principal activity
is the provision of commercial banking services such as deposit
taking, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange and trust services.

The Bank is saddled with the PHP10 billion non-performing assets
it inherited from Urban Bank when the two banks merged in 2002.

The TCR-AP reported on May 10, 2006, that Exportbank is
scheduled to complete a rehabilitation program, which was
proposed in order to reverse a 2005 net loss of PHP1.66 million,
by 2007.

Under an agreement dated Dec. 29, 2005, the Philippine Deposit
Insurance Corp. committed to extend an annual financial aid of
PHP600 million to the Bank.


PHILIPPINE LONG DISTANCE: Board Declares Cash Dividends
-------------------------------------------------------
During the meeting of the Board of Directors of Philippine Long
Distance Telephone Company held on Jan. 30, 2007, cash dividends
were declared out of the company's unrestricted retained
earnings as of Dec. 31, 2005:

   * a total of PHP12,150,000.00 on all of the outstanding
     shares of the company's Series IV Cumulative Non-
     Convertible Redeemable Preferred Stock, for the quarter
     ending March 15, 2007, payable on March 15, 2007, to the
     holder of record on Feb. 23, 2007;

   * PHP1.00 per outstanding share of the company's Series CC
     10% Cumulative Convertible Preferred Stock, for the annual
     period ending Feb. 28, 2007, payable on March 30, 3007, to
     the holders of record on Feb. 28, 2007;

   * PHP1.00 per outstanding share of the company's Series DD
     10% Cumulative Convertible Preferred Stock, for the annual
     period ending Jan. 31, 2007, payable on Feb. 28, 2007, to
     the holders of record on Feb. 15, 2007.

                          About PLDT

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading  
national telecommunications service provider in the Philippines.  
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.  Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.


RIZAL COMMERCIAL: Consolidates President-CEO Position
-----------------------------------------------------
Rizal Commercial Banking Corporation's President and Chief
Operating Officer Francisco S. Magsajo, Jr., will retire
effective March 31, 2007, as disclosed in the RCBC Board meeting
held on Jan. 29, 2007.  However, Mr. Magsajo will be assuming
the position of Vice Chairman of the Board of RCBC Savings Bank
effective April 1, 2007.

In the same meeting, Lorenzo V. Tan, incoming Executive Vice
Chairman-CEO of RCBC, was appointed as a member of the Board of
Directors of RCBC effective Feb. 1, 2007, and was also appointed
to the consolidated position of President-CEO effective April 1,
2007.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 19, 2007, Mr. Tan will succeed Rizalino S. Navarro, as RCBC
CEO effective Feb. 1, 2007.

                           About RCBC

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

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

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

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


RIZAL COMMERCIAL: BSP Approves 15% Stock Dividend
-------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 24, 2007, Rizal Commercial Banking Corporation's
stockholders confirmed a 15% stock dividend corresponding to
110,768,703 shares.

In an update, the bank advises the Philippine Stock Exchange
that the BSP in its letter dated Jan. 26, 2007, approved the
declaration of the 15% stock dividend.

The bank says the BSP approval will be endorsed to the
Securities and Exchange Commission.

According to the TCR-AP, the dividend is payable to holders of
Common and Preferred Class shares of record at the close of
business on the 15th trading date from receipt of the approval
of BSP and SEC of the payment of the stock dividend.

                           About RCBC

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

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

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

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


VITARICH CORPORATION: Receiver Delivers Interim Report
------------------------------------------------------
On Sept. 19, 2006, the Troubled Company Reporter - Asia Pacific
reported that Vitarich Corporation has filed a petition before
the Court entitled "In the matter of the Petition for Corporate
Rehabilitation of Vitarich Corporation," docketed as Civil Case
No. 592M-2006.

A subsequent TCR-AP report revealed that the Regional Trial
Court of Malolos, Bulacan, Branch 7, has issued a Stay Order
after finding the Rehabilitation Petition to be sufficient in
form and substance.

Accordingly, the Court appointed Eduardo T. Rondain as
Rehabilitation Receiver with a bond of PHP500,000.

On Jan. 29, 2007, the company disclosed with the Philippine
Stock Exchange that in connection with the Rehabilitation
Petition, the Receiver submitted his interim report dated
Jan. 18, 2007.

In his letter to the Court, Mr. Rondain stated his intention to
withdraw as Rehabilitation Receiver effective on the Court's
approval and the appointment of a new receiver.

Mr. Rondain noted that the company's creditors have questioned
his impartiality, which could affect the Petition and the plan,
if approved.

According to Mr. Rondain, the principal allegations of creditors
submitted to the Court are alleged discrepancies or
incompleteness of listing of accounts payables, receivables, and
legal cases.

Mr. Rondain particularly agreed with the Metropolitan Banking
and Trust Company's comments on the failure of Vitarich to
classify its receivables and assets.  Thus, Mr. Rondain ordered
the staff of the company's Controllership Department to complete
this classification in a manner that will satisfy Metrobank.

Mr. Rondain also found deficiencies in the reportage of legal
cases because it did not bear an opinion as to chances of
"winability" and/or defeat.  Accordingly, he has ordered:

   (a) a more complete inventory of all legal cases; and

   (b) an opinion on each cases for further consultation and
       reporting with the Rehabilitation Court.

However, Mr. Rondain noted that even if he concurs with the
observation of deficiences, he does not consider them fatal to
the company's Rehabilitation Petition.

With respect to reports, Mr. Rondain noted that end-of-the-year
reports are not available until about Feb. 15, 2007, considering
the normal adjustments in the preparation of year-end audited
reports.

            Report on the Normal Course of Business

A very significant function that requires Mr. Rondain's
intervention is micro-management of determining accounts that
are in the ordinary course of business, which may be exempted
from the status quo demanded by the Stay Order of the Court.

According to Mr. Rondain, he has actively helped the company in
crafting a fair, reasonable, and workable rule without violating
the essence of the Stay Order.

Vitarich never suffered a break in the supply chain and its
business remained whole and strong in spite of the
Rehabilitation Petition and the issuance of the Stay Order, Mr.
Rondain asserted.

                         About Vitarich

Bulacan, Philippines-based Vitarich Corporation --
http://www.vitarich.com/-- is among the leading integrated  
producers and wholesalers of poultry and animal feed products in
the Philippines.  The Company also develops, produces and sells
animal health products.  It is dedicated to the poultry and
feeds industry, committing all of its resources to the
production of poultry products, including upstream production
activities such as feed milling, and additional ventures where
the company's knowledge of the poultry and feeds production
process provides it with competitive advantage.

Despite the Company's expansion into other areas, its core
business remains rooted in poultry.  VITA is presently engaged
in the manufacture and distribution of various poultry products
like chicken, animal and aqua feeds, and day-old chicks, among
others.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
July 10, 2006, that after auditing Vitarich's 2005 annual
report, Punongbayan & Araullo raised substantial doubt on the
Company's ability to continue as a going concern, due to
significant losses for the past three years, including net
losses worth PHP249.3 million in 2005 and PHP291.2 million in
2004, resulting in significant deficit amounting to PHP1.8
billion as of Dec. 31, 2005.


* RP's Sovereign Rating Upgrade Long Overdue, DBS Says
------------------------------------------------------
In a research note dated Jan. 24, 2007, the Development Bank of
Singapore's research arm said the Philippine Government has
raised its revenue effort through the implementation of various
reforms.  Thus, fulfilling the condition set by major
international credit rating agencies, the Manila Standard Today
reports.  

"Frankly, an upgrade in the Philippine sovereign rating is long
overdue.  The government has fulfilled the condition set by
ratings agencies to raise government revenue as percentage of
gross domestic product," the paper cites DBS, as saying.

The fiscal consolidation program of the administration of
President Gloria Macapagal Arroyo, which is anchored on the
implementation of the Expanded Value Added Tax Act of 2005 will
help balance the budget by 2008 or two years ahead of the
original 2010 schedule, Lawrence Agcaoili writes for Manila
Standard.

                          *     *     *

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.


* New 2007 PHP1.13 Trillion Budget to Spur Growth, Officials Say
----------------------------------------------------------------
The Philippines' economic growth will rise this year due to
increased spending on infrastructure and services under the 2007
budget that will soon be signed into law, senior officials said.

The passage of the budget will be a huge step forward for
President Gloria Arroyo's government, which has had only two
budgets passed since 2001.

In 2006, the government was forced to re-enact the 2005 budget
when the opposition-dominated Senate blocked the bill.

Under the PHP1.13 trillion (US$22.9 billion) budget passed by
the Senate on Jan. 29, 2007, spending on infrastructure will be
increased by PHP75 billion, Budget Secretary Rolando Andaya said
in a television interview.

Last year the government spent PHP38.7 billion on
infrastructure, the equivalent of 0.73% of the country's total
economic output.

Spending on public works, heath, and education will also be
increased.

Sec. Andaya said even with the new budget, the government is
still targeting a budget deficit of only PHP63 billion, adding
that any additional revenues from privatization would be spent
on infrastructure.

The government had a 2006 budget deficit target of PHP125
billion but looked on course to see a shortfall of only PHP90
billion, officials said in Dec. 20006.

"We are certain this budget will not only facilitate government
operations this year but more importantly ... make a difference
in the lives of 85 million Filipinos," said Senate Finance
Committee chairman Franklin Drilon.

Pres. Arroyo's spokesman, Ignacio Bunye said with the new budget
the government could now carry out more infrastructure projects
and implement new social services in education and health.

                          *     *     *

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
=================

AAR CORP: Names Rono Dutta as Strategic Advisor
----------------------------------------------
AAR Corp appoints Rono Dutta, a former president of United
Airlines and Air Sahara, to be the strategic advisor in the
company's India operations.

Mr. Dutta currently serves as the consultant to companies
looking to expand their global presence.

"Rono has a wealth of industry experience and his input will be
invaluable as we sharpen our focus on AAR's positioning in
India," said David P. Storch, Chairman, President and Chief
Executive Officer of AAR Corp.  

"Serving as an advisor, Rono will be a strong addition to the
AAR team and we will look to him to enhance our relationships
with customers and potential business partners," added Mr.
Storch.

                          About AAR Corp.

AAR Corp., (NYSE: AIR) -- http://www.aarcorp.com/-- provides  
products and value-added services to the worldwide
aviation/aerospace industry.  With facilities and sales
locations around the world, AAR uses its close-to-the-customer
business model to serve airline and defense customers through
Aviation Supply Chain; Maintenance, Repair and Overhaul;
Structures and Systems and Aircraft Sales and Leasing.  In Asia
Pacific, the company has offices in Singapore, China, Japan and
Australia.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 18, 2006, Standard & Poor's Ratings Services upgraded
AAR Corp.'s corporate credit rating from 'BB-' to 'BB'.  The
outlook is stable.

The TCR-AP also reported on Dec. 5, 2006, that Moody's upgraded
AAR's corporate family rating and senior notes to Ba3 from B1,
in response to improving financial performance resulting from
the strong commercial and defense aviation supply and repair
environment.  The ratings outlook is stable.


COMPACT METAL: Directors Reduce Holdings of Deemed Shares
---------------------------------------------------------
Compact Metal Industries Ltd discloses a series of reduction to
the holdings of deemed shares of its directors.

Tan Chin Hoon, one of the company's directors, presently holds
1,072,000 deemed shares with 0.485% issued share capital.  
Previously, Mr. Tan held 6,072,000 deemed shares with 2.745%
issued share capital.

Tan Kay Tho, another director, holds 1,072,000 deemed shares
with 0.485% issued share capital.  Prior to the change, Mr. Tan
held 6,072,000 deemed shares with 2.745% issued share.

Director Tan Kay Sing, presently holds 1,072,000 deemed shares
with 0.485% issued share capital.  Prior to the change, Mr. Tan
held 6,072,000 deemed shares with 2.745% issued share capital.
  
Tan Kay Kiang presently holds 1,072,000 issued share capital
with 0.485% issued share capital.  Prior to the change, Mr. Tan
held 6,072,000 deemed shares with 2.745% issued share capital.

The decrease in holdings resulted from the directors selling of
the deemed shares to meet their financial obligations.

                       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.


GL CAPITAL: Enters Wind-Up Proceedings
--------------------------------------
GL Capital Pte Ltd entered wind-up proceedings on Jan. 12, 2007.

Dongguan Bai Sheng Investment Development Co Ltd filed the
application to wind up the company's operations.

The liquidator can be reached at:

         The Official Receiver
         45 Maxwell Road #05-11/#06-11
         The URA Centre (East Wing)
         Singapore 069118


HIGHLAND PARTNERS: Liquidator to Receive Claims Until Feb. 26
-------------------------------------------------------------
Chia Soo Hien, the appointed liquidator of Highland Partners
(Singapore) Pte. Limited, requires the company's creditors to
prove their claims by Feb. 26, 2007.

Creditors who cannot prove their debts by the due date will be
excluded from any distribution the company will make.

The Liquidator can be reached at:

         Chia Soo Hien
         c/o BDO Raffles
         5 Shenton Way #07-01
         UIC Building
         Singapore 068808


ODYSSEY RE: To Release 4th Qtr. Results on February 22
------------------------------------------------------
Odyssey Re Holdings Corp. will release its financial results for
the fourth quarter of 2006 on Feb. 22, 2007.

The company will hold a conference call to discuss the financial
results at 10:00 a.m. on Feb. 23, 2007.

The company's live audio Web cast of the conference call can be
accessed at http://www.odysseyre.com

Callers who cannot access the Internet may listen to the
conference call by dialing (800) 500-0177 (domestic) or (719)
457-2679 (international).

A replay of the call will be available on Feb. 23, 2007, from
12:00 p.m. until 11:59 p.m.  The replay can be accessed by
dialing these telephone numbers -- (888) 203-1112 (domestic) or
(719) 457-0820 (international).  The passcode number is 7635874.

                        About Odyssey Re

Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an  
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance.  Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited.  The company underwrites through offices in the United
States, London, Paris, Toronto, Mexico City and Singapore.
Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.

                          *     *     *

Odyssey Re Holdings Corp.'s preferred stock carries a Ba2 rating
from Moody's and a BB rating from Fitch.  Fitch also gave the
company senior unsecured debt and long-term issuer default
ratings of BB+.


OVERSEAS SHIPHOLDING: Sells 4.6 Million Shares of DHT Stocks
------------------------------------------------------------
Overseas Shipholding Group, Inc. unveiled plans to sell
4,600,000 shares of common stock in Double Hull Tankers, Inc.,
in a registered public offering underwritten by Merrill Lynch &
Co.

The company anticipates to profit US$15 million from the
transaction for the first quarter of 2007.  Double Hull will not
receive any proceeds from the transaction.

Upon the completion of the sale, the company's common stock in
Double Hull will be reduced to approximately 8,751,500 or 29.17%
shares.

The sale of shares was made in connection to Double Hull's
existing shelf registration statement.  

                   About Overseas Shipholding

Headquartered in New York, U.S.A., Overseas Shipholding Group,
Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest  
publicly traded tanker companies in the world with an owned,
operated and newbuild fleet of 117 vessels, aggregating 13.0
million dwt and 865,000 cbm, as of June 30, 2006.  As a market
leader in global energy transportation services for crude oil
and petroleum products in the U.S. and International Flag
markets, the company is committed to setting high standards of
excellence for its quality, safety and environmental programs.
OSG is recognized as one of the world's most customer-focused
marine transportation companies, with offices in New York,
Athens, London, Newcastle and Singapore.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
August 14, 2006, Moody's Investors Service affirmed the debt
ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured
at Ba1.  The outlook has been changed to stable from negative.


POLYONE CORP: Net Profit Down to US$14.4 Mil. in 4th Qtr. 2006
--------------------------------------------------------------
In a media release posted at its Web site, PolyOne Corporation
disclosed the company's unaudited results for the fourth-quarter
and full-year of 2006.

For the fourth quarter ended Dec. 31, 2006, the company reported
a lower net income of US$14.4 million, or US$0.15 per share,
compared with US$21.7 million, or US$0.24 per share, for the
same period in 2005.  

Sales for the fourth quarter of 2006 were lower at US$595.2
million, a decrease of 2% from the US$606.8 million recorded
sales in 2005.

Included in the fourth-quarter 2006 results are the US$15.8
million non-cash benefit to net income associated with the
reversal of the deferred tax allowance, which was partially
offset by a US$3.8 million pretax charge associated with the
company's early retirement of US$43.6 million of debt during the
quarter.  

The company recorded net income for full-year 2006 of US$123.2
million, or US$1.33 per share, compared with US$46.9 million, or
US$0.51 per share, in 2005, an increase of $0.82 per share.

Net cash provided by operating activities for full-year of 2006
improved substantially to US$110.5 million as compared with
US$62.0 million in 2005.  Similarly, operating cash flow for
2006 was US$86.5 million compared with US$31.9 million for 2005.  
Improved earnings and working capital efficiency were the
primary drivers of this increase in cash flow.  Including
proceeds of US$17.3 million from the sale of the Engineered
Films business, cash flow in 2006 exceeded US$100 million.

"Strong first-half demand and improved gross margins were the
principal drivers of year-over-year earnings and sales
improvement," the company said in the release.  For 2006, gross
margin as a percent of sales increased by 0.8% as compared with
2005.  International Color and Engineered Materials sales grew
to 14%, with sales growth in Asia approaching 30%.  Despite a
significant decline in the second half, Resin and Intermediates
reported record earnings for the year.

"We are pleased with the overall strength of our 2006 financial
performance and the progress in mapping out and implementing our
strategic initiatives," said Stephen D. Newlin, Chairman,
President and Chief Executive Officer of PolyOne.  "The fourth-
quarter swing in our Resin and Intermediates segment reflects
the volatile nature of a commodity business, and underscores the
importance of our drive to improve our core businesses through
our strategy of specialization, global growth, and commercial
and operational excellence."

As of Dec. 31, 2006, the company's balance sheet showed US$1.77
billion total assets, US$1.2 billion total liabilities and
US$570 million of stockholders' equity.

Polyone highlighted the company's progress on strategic
initiatives:

* Investment in Sales, Marketing and Innovation Resources

   -- The company has hired 52 people in sales, marketing, and
      research and development as it moves toward its goal of
      roughly 100 global commercial hires in 18 months.    
      PolyOne has begun training the commercial organization in
      value-based selling, and sales leadership.

* Global Expansion

   -- During the fourth quarter, PolyOne announced that it
      had signed a definitive agreement to acquire the assets
      and operations of Ngai Hing PlastChem Company Ltd., a
      vinyl compounder in South China.  The company also opened
      a business development office in Mumbai, India to serve
      global customers expanding into this region and to
      cultivate opportunities with Indian customers.  PolyOne
      added color compounding lines at its manufacturing
      facility in Thailand and a new line to manufacture high-
      growth low-smoke, halogen-free compounds at its      
      Pamplona, Spain, facility.

* Improvement in Customer Satisfaction and Operational  
  Excellence

   -- Through the end of the year, PolyOne increased its rate of
      on-time deliveries more than 7%, surpassing its goal.  
      This improved level of service to customers is helping to
      distinguish PolyOne's delivery capabilities from
      competitors.  The company has rolled out Lean Six Sigma
      throughout the organization, and employees have identified
      improvement opportunities to provide greater value to
      customers.

* Differentiation Through Innovation and New Products

   -- During 2006, PolyOne filed 25 patent applications, more
      than double the number from the prior year.  The company's
      new Engineered Materials plant in Avon Lake, Ohio, houses
      one of the industry's most advanced laboratory and
      production facilities.  Its mission is to formulate and
      produce specialty thermoplastic compounds that meet
      customers' critical

                      About PolyOne Corp.

Headquartered in Avon Lake, Ohio, PolyOne Corp. --
http://www.polyone.com/-- is a global compounding and North  
American distribution company with operations in thermoplastic
compounds, specialty polyvinyl chloride (PVC) vinyl resins,
specialty polymer formulations, color and additive systems, and
thermoplastic resin distribution, with equity investments in
manufacturers of PVC resin and its intermediates.  The company
has 53 manufacturing sites and 14 warehouses in North America,
Europe and Asia.  The company maintains operations in China,
Colombia, Thailand and Singapore.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Oct. 26, 2006, Moody's Investors Service confirmed its B2
Corporate Family Rating for PolyOne Corp.  

Moody's also upgraded its probability-of-default ratings and
assigned loss-given-default ratings on these debts:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$300 million
   10.625%
   Sr Global Unsec
   Notes
   due 5/2010           B3       B2       LGD4     59%

   US$200 million
   8.875%
   Sr Unsec Notes
   due 5/2012           B3       B2       LGD4     59%

   US$50 million
   7.5%
   Sr Unsec Debentures
   due 12/2015          B3       B2       LGD4     59%

   US$20 million
   7.11%
   Unsec MTN P.S.#3
   due 6/2007           B3       B2       LGD4     59%

   US$10 million
   7.16%
   Unsec MTN P.S.#4
   due 6/2008           B3       B2       LGD4     59%

   US$10 million
   6.89%
   Unsec MTN P.S.#6
   due 9/2008           B3       B2       LGD4     59%

   US$20 million
   6.91%
   Unsec MTN P.S.#7
   due 10/2009          B3       B2       LGD4     59%

   US$20 million
   6.52%
   Unsec MTN P.S.#8
   due 2/2010           B3       B2       LGD4     59%

   US$20 million
   6.58%
   Unsec MTN P.S.#9
   due 2/2011           B3       B2       LGD4     59%

Moreover, Fitch affirmed the company's issuer default rating
at 'B'; upgraded the rating on the senior unsecured debt; and
withdrawn the rating on the senior secured credit facility  to
'B+/RR3' from 'B/RR4'.  The Rating Outlook is Stable.


POLYONE CORP: Taps Chappelow as VP for Research & Innovation
------------------------------------------------------------
PolyOne Corporation has appointed Dr. Cecil Chappelow as the
company's vice president of research and innovation and chief
innovation officer.

"Cecil has a deep understanding of innovation processes and a
passion for disciplined execution," said Stephen D. Newlin,
PolyOne's chairman, president and chief executive officer.  "His
unique combination of business, scientific and engineering
experience makes him ideal for this position," added Mr. Newlin.  

"Cecil understands technology from both the scientific and
commercial sides," according to Michael Kahler, senior vice
president of commercial development.  

"This dual perspective will be invaluable not only for nurturing
promising new ideas, but for bringing to market solutions that
improve our customers' competitiveness," Mr. Kahler quips.

Before joining the company, Dr. Chappelow was the senior
research engineer at Pfizer Inc.  He then later joined Air
Products, where he was appointed to be the director of Polymer
Chemicals Technology; general manager of Global Applications
Development; director of Corporate Science and Technology; and,
as vice president of technology, gases and equipment.

Dr. Chappelow holds a bachelor, master's and doctorate degrees
from the University of California, Berkeley.

                        About PolyOne Corp.

Headquartered in Avon Lake, Ohio, PolyOne Corp. --
http://www.polyone.com/-- is a global compounding and North  
American distribution company with operations in thermoplastic
compounds, specialty polyvinyl chloride (PVC) vinyl resins,
specialty polymer formulations, color and additive systems, and
thermoplastic resin distribution, with equity investments in
manufacturers of PVC resin and its intermediates.  The company
has 53 manufacturing sites and 14 warehouses in North America,
Europe and Asia.  The company maintains operations in China,
Colombia, Thailand and Singapore.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Oct. 26, 2006, Moody's Investors Service confirmed its B2
Corporate Family Rating for PolyOne Corp.  

Moody's also upgraded its probability-of-default ratings and
assigned loss-given-default ratings on these debts:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$300 million
   10.625%
   Sr Global Unsec
   Notes
   due 5/2010           B3       B2       LGD4     59%

   US$200 million
   8.875%
   Sr Unsec Notes
   due 5/2012           B3       B2       LGD4     59%

   US$50 million
   7.5%
   Sr Unsec Debentures
   due 12/2015          B3       B2       LGD4     59%

   US$20 million
   7.11%
   Unsec MTN P.S.#3
   due 6/2007           B3       B2       LGD4     59%

   US$10 million
   7.16%
   Unsec MTN P.S.#4
   due 6/2008           B3       B2       LGD4     59%

   US$10 million
   6.89%
   Unsec MTN P.S.#6
   due 9/2008           B3       B2       LGD4     59%

   US$20 million
   6.91%
   Unsec MTN P.S.#7
   due 10/2009          B3       B2       LGD4     59%

   US$20 million
   6.52%
   Unsec MTN P.S.#8
   due 2/2010           B3       B2       LGD4     59%

   US$20 million
   6.58%
   Unsec MTN P.S.#9
   due 2/2011           B3       B2       LGD4     59%

Moreover, Fitch affirmed the company's issuer default rating
at 'B'; upgraded the rating on the senior unsecured debt; and
withdrawn the rating on the senior secured credit facility  to
'B+/RR3' from 'B/RR4'.  The Rating Outlook is Stable.


SHIP FINANCE: Sells Suezmax Tankers to Frontline for US$183.7MM
---------------------------------------------------------------
Ship Finance International Ltd. has agreed to sell five vessels
to Frontline Ltd. in connection with Frontline's proposed spin-
off of Sealift Ltd., a dedicated heavy-lift company.

The vessels are the single hull suezmax tankers Front Comor,
Front Granite, Front Target and Front Traveller, in addition to
Front Sunda, which is currently under conversion to a heavy-lift
vessel.  Delivery to the Buyer is expected to take place during
the first quarter of 2007.

The gross sales price for the five vessels is US$183.7 million,
and Ship Finance will receive a net amount of around US$121
million after compensation of around US$62 million to Frontline
for the termination of the charters.  There are currently
US$14.2 million in aggregate loans outstanding against the five
vessels, and the net cash effect to Ship Finance is estimated to
be around US$107 million.

Following these sales, Ship Finance will only have 11 single
hull vessels remaining in the fleet, including three vessels
with double sides.  This is significantly less than the 18
single hull vessels owned only three months ago. Of the
remaining crude oil tankers without double hull, Frontline has,
as charterer, secured profitable sub-charters for seven of the
vessels, and only four of the vessels are traded in the spot
market.

The reduction of the single hull tanker exposure is in line with
the company's strategy of focusing on modern assets in various
shipping and offshore market segments.  The cash proceeds from
the sales is intended to be re-invested as equity contribution
in new projects, and the management of Ship Finance estimates
that the combination of sales proceeds, expected profit share
from Frontline for the year 2006, undrawn amounts under our
credit lines and available cash on our balance sheet may
facilitate additional investments in excess of US$1 billion.

Including new buildings and recently announced acquisitions and
sales, the Company's fleet will consist of 55 vessels,
essentially all on medium to long-term charters.

                       About Ship Finance

Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages  
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers.  The company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway and Singapore.

It is also involved in the charter, purchase and sale of
vessels.

                          *     *     *

Moody's Investors Service affirmed Ship Finance International
Ltd.'s ratings, including the Ba3 Corporate Family Rating, the
Ba2 Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating.  Moody's said the ratings outlook
remains stable.


TRANS WORLD: Undergoes Liquidation Proceedings
----------------------------------------------
Trans World Food Marketing Pte Ltd commenced liquidation of its
business on Jan. 19, 2007.

The Troubled Company Reporter - Asia Pacific reported that Kwah
Hock Seng filed the wind-up petition against the company on
Dec. 28, 2006.

The liquidator can be reached at:

         The Official Receiver
         The URA Centre (East Wing)
         45 Maxwell Road #05-11/#06-11
         Singapore 069118


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

iTV PCL: May Get Another Extension to Repay Concession Debt
-----------------------------------------------------------
Thailand's iTV Pcl could have another extra 30 to 45 days
extension to repay its overdue concession fees to the Prime
Minister's Office, The Nation reports.

As reported by the Troubled Company Reporter - Asia Pacific on
Dec. 19, 2006, the Supreme Court of Thailand ruled that iTV must
pay its concession debt to the PM's office within 45 days.

On Dec. 15, the Supreme Administrative Court uphold the Central
Administrative Court's ruling requiring iTV to pay its
concession payment to the PM's office, the TCR-AP said.

The extended period for the payment lapsed on Jan. 30 and iTV
has yet to pay the amount, The Nation notes.

However, iTV's concession contract allows the company to extend
the debt-payment period twice, with each extension limited to a
maximum of 45 days, the paper relates.

Chulayuth Hiranyavasit, head of the Office of the Permanent
Secretary of the Prime Minister's Office, told the paper that he
is considering another 30 days extension for the broadcaster to
pay its debts.

The TCR-AP however reported on Jan. 29, iTV Pcl will not be able
to immediately pay the THB2.21 billion debt and instead proposed
to the PM's office five alternatives on how the company would
settle the amount.

                          *     *     *

iTV Plc's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets.  Shin Corp Plc is iTV's major
shareholder, with a 53% stake.  Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family.  Earlier this year, it sold its majority
stake in iTV to Temasek.

On Dec. 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Supreme Administrative Court upholds the
Central Administrative Court's verdict by voiding the
arbitration ruling on concession fee payments won by iTV in
2004, various reports say.

The overdue concession payment and fines that the broadcaster
must pay reached THB100 billion.

The TCR-AP reported on June 23, 2006, that the Prime Minister's
Office demanded a concession fee payment and fines to the
government from the television network.

The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's office amounting to THB230 million.  
The original rate before the consent amounted to THB1 billion
per year.


TMB BANK: Chulakorn to Replace Sommai as Executive Chairman
-----------------------------------------------------------
TMB Bank was looking for a replacement to Sommai Phasee who
resigned as director and chairman of the bank's board, the
Troubled Company Reporter - Asia Pacific reported on Jan. 18,
2007.

Mr. Sommai has resigned from the bank to become deputy finance
minister.

In an update, The Nation says that Chulakorn Singhakowin, the
former president of the Bank of Asia, will be appointed as the
new executive chairman of TMB Bank.

Mr. Chulakorn had already accepted the post, which according to
the paper was offered by Finance Minister Pridiyathorn Devakula.

                          *     *     *

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.

On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.

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.




                            *********

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.  Andrei Sanchez, 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 ***