TCRAP_Public/070202.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Friday, February 2, 2007, Vol. 10, No. 24

                            Headlines

A U S T R A L I A

A FURNITURE ARTISAN: Final Meeting Slated for March 1
AHP MOTOR: Members Pass Resolution to Wind-Up Firm
AJAX BUILDING: Members Opt to Shut Down Business
ALCO ENGINEERING: Liquidators to Present Wind-Up Report
C.I.L. PLASTER: To Declare First and Final Dividend on Feb. 19

CORROSION CONTROL: Members and Creditors to Hear Wind-Up Report
INTEGRATED LENDING: Court Appoints Liquidators to Wind Up Scheme
JACOBENA INVESTMENTS: To Declare First Dividend on March 1
LIFE THERAPEUTICS: One-off Expense Ups Net Loss to AU$42 Mil.
LIFE THERAPEUTICS: Confirms Mergers and Acquisitions Plans

MINI MATES: Sets Members & Creditors' Final Meeting on Feb. 28
PLAZA INTERIORS: Creditors' Proofs of Debt Due on February 28
RP DATA: 2006 Annual Balance Sheet Upside Down By AU$8.49 Mil.
RP DATA: Purchases Home Open and Localwise For AU$2.68 Mil.
SNODINE PTY: Schedules Final Meeting on March 1

SONS OF GWALIA: Court Dismisses Appeal Against Shareholder
SONS OF GWALIA: Court Ruling Unwelcome for Investors, Fitch Says
TRANSLANE PTY: Enters Wind-Up Proceedings
ZINIFEX LTD: EU Queries on Umicore Joint Venture Due on Feb. 26
* Australian Utilities' 2007 Credit Outlook Negative, Fitch Says

* Fitch Says AU Oil & Gas Sector With Stable Outlook for 2007


C H I N A   &   H O N G  K O N G

AGRICULTURAL BANK: May Get Cash Injection in Listing Preparation
BAPTIST COMMUNICATIONS: Members' Final Meeting Set for March 1
CREATIVE EYEWEAR: Court Appoints Joint Liquidators
DENSEN DEVELOPMENT: Enters Voluntary Wind-Up
GRAND JOY: Members Decide to Close Business

IAC BANK: Plans to Sell Brokerage Unit to Hong Kong Banking Arm
LEXICON INTERNATIONAL: Court Sets Wind-Up Hearing on Feb. 7
MCLARENS ASIA: Members Pass Resolution to Wind Up Firm
NICE LOOK: Members to Receive Wind-Up Report on February 26
NO RISK: Creditors to Meet on February 21

RICHPLAN LIMITED: Court Sets Wind-Up Hearing Set on February 14
SEMICON MANUFACTURING: Posts Fourth Qtr Profit from Asset Sale
SUN HUNG: Shareholders Decide to Liquidate Business
SUN RAISE: Undergoes Voluntary Wind-Up
TOP LEAD: Creditors' Proofs of Claim Due on March 16


I N D I A

BRITISH AIRWAYS: Resumes Normal Operations; Travel Loads Light
CENTURION BANK: Fitch Assigns 'D' Individual Rating
GENERAL MOTORS: Wants Higher Battery Tech Research Funding
GENERAL MOTORS: Sales Over 1 Million Cars & Trucks Last Year
ICICI BANK: Shareholders Unanimously Approve Sangli Merger

INDIA CEMENTS: December 2006 Qtr. Profit Soars to INR797.8 Mil.
KOTAK MAHINDRA: Fitch Rates Corporate Loan's Certificates at AA-
IFCI LTD: Net Profit Tops INR1.2 Billion in 4th Quarter 2006
IFCI LTD: Morgan Stanley Acquires 2,000,000 Shares
INDIA CEMENTS: Appoints Ashok Shah to Board of Directors

STATE BANK OF INDIA: Fitch Affirms 'C' Individual Rating


I N D O N E S I A

ALCATEL-LUCENT: Enters Into Softbank Mobile Access Network Deal
ALCATEL-LUCENT: Provides GPON Solution To Jonkoping Energi
ANIXTER INT'L: Net Income Increases to US$52.4MM in 4th Quarter
BANK CENTRAL ASIA: Aims to Provide IDR10 Trillion in New Loans
CORUS GROUP: Fitch Keeps 'BB-' IDR On Watch Negative

CORUS GROUP: Tata Steel Outbids CSN with GBP5.7 Billion Bid
CORUS GROUP: S&P Holds Developing CreditWatch on BB Rating
FOSTER WHEELER: Unit Secures Steam Generator Pact from Longview
FOSTER WHEELER: Elects Franco Baseotto as Vice President & CFO
HILTON HOTELS: Fitch Upgrades IDR to 'BB+'; Outlook to Positive

METSO OYJ: To Unveil Annual Results on February 7
TELKOM INDONESIA: To Sue Lapindo Brantas Over Mudflow Damages
* Fitch Assigns 'BB-' To Indonesia's Forthcoming Global Bond


J A P A N

AMERICAN AIRLINES: Names Denis Lynn as Global Human Resources VP
BANCO BRADESCO: Inks Pact to Acquire Banco BMC & Subsidiaries
DELPHI CORP: Has Until July 31 to File Chapter 11 Plan
DELPHI CORP: Inks Amended Equity Purchase & Commitment Agreement
DELPHI CORP: PwC's Scope Expanded to Help Plan Due Diligence

JAPAL AIRLINES: To Join Oneworld Alliance Starting April 1
JAPAN AIRLINES: Expands Charter Flight Business
MITSUKOSHI LTD: Talks with Tiffany on Store Deal Renewal Ongoing
MIZUHO FINANCIAL: Earns JPY580 Billion in 9 Months to Dec. 31
NIKKO CORDIAL: Shares Dive 16% Due to Probe Findings

NIKKO CORDIAL: Moody's Downgrades Ratings & Keeps Under Review
NIKKO CORDIAL: Pays Former Execs Millions in Retirement Fees
NORTHWEST AIRLINES: Equity Holders Want Own Committee Formed
XEROX CORP: Total Revenue Rises to US$4.4 Bil. in Fourth Quarter
XEROX CORP: Improved Leverage Prompts S&P's Positive Outlook


K O R E A

BOWATER INC: Merger Plan Cues Fitch to Rate Secured Debt at BB-
MAGNACHIP SEMICONDUCTOR: Net Loss in 4th Qtr. Widens to US$46MM
MAGNACHIP SEMICONDUCTOR: Moody's Sees Possible Ratings Downgrade


M A L A Y S I A

MALAYSIA AIRLINES: Gets MYR500 Mil. Loan Facility from CIM Bank
PUTERA CAPITAL: Posts MYR2.1M Net Loss in 2nd Qtr Ended Nov. 06
SATERAS RESOURCES: Unit Faces Court's Wind-Up Order
SBBS CONSORTIUM: Bursa Issues Public Reprimand and Imposes Fine
SELOGA HOLDINGS: Bursa Extends Plan Filing Deadline to Feb. 15

SELOGA HOLDINGS: FIC Approves Acquisition of Infra Expert
SINORA INDUSTRIES: Units Dispose Equity Interest in Priceworth


N E W   Z E A L A N D

BARTHOLOMEW BROTHERS: Shareholders Taps McHutchon as Liquidator
BREWTOPP EARTHMOVERS: Court Appoints Joint Liquidators
CONTRACT LABOUR: Commences Liquidation Proceedings
PELAC GROUP: Court Sets Liquidation Hearing on February 7
PETER FLOWER: Liquidation Hearing Set on February 7

RD1 HOLDINGS: Faces Liquidation Proceedings
SAUA & SONS: Court to Hear CIR's Liquidation Petition on March 5
THE AFTER SCHOOL CARE: Shareholders Opt to Close Business
UBS TRUSTEES: Creditors Must Prove Debts by February 9
* NZ Utilities' 2007 Credit Outlook Still Negative, Fitch Says

* New Zealand's NZ$433M Dec. Deficit Raises 2006 Annual Deficit


P H I L I P P I N E S

* Actual January Inflation Rate May Be Lower than 4.3%, BSP Says


S I N G A P O R E

AAR CORP: To Provide Logistics Support to Armor Holdings
FLEXTRONICS: Profit Up by 15% to US$135.83 MM in 3rd Qtr. 2006
HUA KOK: Pays First and Final Dividend to Creditors
INTERMEC INC: To Issue 2006 Financial Results on Feb. 8
INTERSHOP COMMUNICATIONS: Minority Shareholders Want Earlier AGM

KAKI BUKIT: Pays First and Final Dividend to Creditors
PETROLEO BRASILEIRO: Receiving Vessel from Modec International
PETROLEO BRASILEIRO: Unit Inks Oil Tanker Pact with Consortium
PETROLEO BRASILEIRO: U.S. Tax Bill May Affect Investment Return
SYNIVERSE TECHNOLOGIES: To Release 4th Qtr. Results on Feb. 27


T H A I L A N D

iTV PCL: Seeks Partners to Finance Debt Repayment
SUN TECH GROUP: President Resigns; Planner Names Replacement
* SET Names Companies who Fail to Meet Disclosure Requirements


* Asia-Pacific Utilities' 2007 Credit Outlook Neg., Fitch Says

* Large Companies With Insolvent Balance Sheets

     - - - - - - - -

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

A FURNITURE ARTISAN: Final Meeting Slated for March 1
-----------------------------------------------------
The members and creditors of A Furniture Artisan Pty Ltd will
hold a final meeting on March 1, 2007, at 5:00 p.m., to receive
the liquidator's account of the company's wind-up proceedings.

As reported by the Troubled Company Reporter - Asia Pacific the
company entered members' voluntary wind-up on Aug. 9, 2006.

The liquidator can be reached at:

         C. Wykes
         Lawler Partners
         Chartered Accountants
         Level 7, 1 Margaret Street
         Sydney, New South Wales 2000
         Australia

                        About A Furniture

A Furniture Artisan Pty Ltd manufactures wood household
furniture, except upholstered.

The company is located in New South Wales, Australia.


AHP MOTOR: Members Pass Resolution to Wind-Up Firm
--------------------------------------------------
On Jan. 16, 2007, the members of AHP Motor Traders Pty Ltd
passed a special resolution to voluntarily wind up the company's
operations.

Accordingly, Robyn Beverley McKern and Colin McIntosh Nicol were
appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Robyn Beverley McKern
         Colin McIntosh Nicol
         c/o McGrathNicol+Partners
         Level 8, IBM Centre
         60 City Road, Southbank Victoria 3006
         Australia
         Telephone:(03) 9038 3185
         Web site: http://www.mcgrathnicol.com

                         About AHP Motor

AHP Motor Traders Pty Ltd is a dealer of used motor vehicles.

The company is located in Victoria, Australia.


AJAX BUILDING: Members Opt to Shut Down Business
------------------------------------------------
The members of Ajax Building & Industrial Fasteners Distribution
Pty Ltd passed a special resolution to voluntarily wind up the
company's operations on Jan. 16, 2007.

In this regard, Robyn Beverley McKern and Colin McIntosh Nicol
were appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Robyn Beverley McKern
         Colin McIntosh Nicol
         c/o McGrathNicol+Partners
         Level 8, IBM Centre
         60 City Road, Southbank Victoria 3006
         Australia
         Telephone:(03) 9038 3185
         Web site: http://www.mcgrathnicol.com

                      About Ajax Building

Ajax Building & Industrial Fasteners Distribution Pty Ltd is a
distributor of industrial supplies.

The company is located in Victoria, Australia.


ALCO ENGINEERING: Liquidators to Present Wind-Up Report
-------------------------------------------------------
Alco Engineering Pty Ltd, which is in liquidation, will hold a
final meeting for its members and creditors on March 8, 2007, at
11:00 a.m.

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

The liquidators can be reached at:

         B. H. Allen
         P. G. Burton
         Burton Glenn Allen
         Chartered Accountants
         Level 2, 57 Grosvenor Street
         Neutral Bay, New South Wales 2089
         Australia

                     About Alco Engineering

Alco Engineering Pty Limited is a special trade contractor.

The company is located in New South Wales, Australia.


C.I.L. PLASTER: To Declare First and Final Dividend on Feb. 19
--------------------------------------------------------------
C.I.L. Plaster Pty Ltd, which is subject to a deed of company
arrangement, will declare a first and final dividend on
Feb. 19, 2007.

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

The deed administrator can be reached at:

         P. Newman
         HLB Mann Judd
         Chartered Accountants
         Level 1, 160 Queen Street
         Melbourne, Victoria 3000
         Australia

                      About C.I.L. Plaster

C.I.L. Plaster Pty Ltd is engaged with plastering, drywall,
acoustical, and insulation work.

The company is located in Victoria, Australia.


CORROSION CONTROL: Members and Creditors to Hear Wind-Up Report
---------------------------------------------------------------
The members and creditors of Corrosion Control Management
Australia Pty Ltd will meet on Feb. 28, 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 was placed under voluntary wind-up on Jan. 30, 2006.

The liquidator can be reached at:

         Leonard A. Milner
         Venn Milner & Co Chartered Accountants
         Suite 1, 43 Railway Road
         Blackburn, Victoria 3130
         Australia

                    About Corrosion Control

Corrosion Control Management Aust Pty Ltd is engaged with
industrial, marine, architectural, paint, heavy duty, and food
grade coatings.

The company is located in Victoria, Australia.


INTEGRATED LENDING: Court Appoints Liquidators to Wind Up Scheme
----------------------------------------------------------------
The Australian Securities and Investments Commission has
obtained court orders winding up an unregistered managed
investment scheme which raised over AU$2.5 million from at least
85 investors, predominantly from the Greek community in
Melbourne.

The Supreme Court of New South Wales ordered that John Melluish
and Peter Walker of Ferrier Hodgson in Sydney be appointed as
liquidators to wind up Integrated Lending Pty Ltd, Integrated
Lending (Victoria) Pty Ltd, and the managed investment scheme
run by those companies.

The Court also made declarations that the individuals behind the
companies and scheme, Mark Hughes, George Angelopoulos, and
Helen Gougas have contravened the Corporations Act having
operated an unregistered managed investment scheme, and carried
on a financial service business and provided financial services
without a an Australian financial services license.  The Court
also granted injunctions permanently restraining Messrs. Hughes,
and Angelopoulos and Ms. Gougas from engaging in similar conduct
in the future.

The ASIC's Executive Director of Enforcement, Jan Redfern, said
that the registration of managed investment schemes with the
ASIC and the licensing of financial advisers was a requirement
of the law, designed to protect the interests of investors.

"Operators of managed investment schemes must ensure that the
scheme is registered with ASIC, and those who fail to do so are
breaking the law and will be pursued by ASIC," Ms. Redfern said.

                       Investors' Funds

Between April 2003 and July 2005, at least 85 investors put over
AU$2.5 million into the scheme under agreements where their
funds would be on-lent by Integrated Lending as secured short-
term commercial/business loans to borrowers at interest rates of
at least 20% per month.  On this basis Integrated Lending
offered the investors a return of approximately 10% per month.  
The majority of investors were from Melbourne's Greek community
and were introduced to the scheme by Mr. Angelopoulos and Ms.
Gougas.  It is believed the scheme operated in New South Wales
and Victoria.

Numerous investors have complained to the ASIC that since
investing in the scheme, they have received no interest payments
or return of capital in accordance with the terms of their
investment agreements.  Furthermore, investors allege they have
been provided with little or no information as to the
whereabouts of their funds.


JACOBENA INVESTMENTS: To Declare First Dividend on March 1
----------------------------------------------------------
Jacobena Investments Pty Ltd will declare a first dividend for
its creditors on March 1, 2007.

In this regard, creditors are required to submit their proofs of
debt by Feb. 28, to be included in the dividend distribution.

According to the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Sept. 26, 2006.

The liquidator can be reached at:

         G. S. Andrews
         G. S. Andrews & Associates
         Certified Practising Accountants
         22 Drummond Street
         Carlton, Victoria 3053
         Australia

                   About Jacobena Investments

Jacobena Investments Pty Ltd is an investor relation company.

The company is located in Victoria, Australia.


LIFE THERAPEUTICS: One-off Expense Ups Net Loss to AU$42 Mil.
-------------------------------------------------------------
Life Therapeutics Limited reports a net loss of AU$42.11 million
for the year ending June 30, 2006, more than four-fold the net
loss of AU$9.54 million recorded for the year ending June 30,
2005, the company said in its annual report.

For the period in review, total consolidated revenues reached
AU$50.87 million, while cost of sales amounted to
AU$53.08 million.  

The company also recorded a one-off charge for the change in
fair value of embedded derivatives amounting to
AU$10.15 million.

                       Going Concern Doubt

Gamini Martinus of Ernst and Young, the company's independent
auditors, raised significant doubt on the company's and the
consolidated entity's ability to continue as a going concern.

The consolidated group's total liabilities as of June 30, 2006,
exceeded total assets by AU$518,000, primarily as a result of
the loss for the year of AU$42,112,000, which includes a non-
cash charge of AU$10,147,000 for the change in fair value of the
embedded derivatives.  In addition, the company has net
operating cash outflows of AU$15,436,000.

                    About Life Therapeutics

Headquartered in New South Wales, Australia, Life Therapeutics
Limited --  http://www.life-therapeutics.com/-- is engaged in  
the collection, management and distribution of plasma-based
products, and development, manufacture and sale of
electrophoresis, hematology and Gradiflow products. It operates
in five segments: Life Sera, which collects specialty plasma,
including Anti D and Hepatitis B; Life Diagnostics, which
develops, manufactures and distributes diagnostic products into
the diagnostic marketplace; Life Gels, which develops,
manufactures and distributes pre-cast electrophoresis gels into
the laboratory market; Life Bioprocess, which markets the
Gradiflow technology in both the commercial and research
markets, and Life Shared Services, which conducts corporate
functions of the organization. At June 30, 2006, the Life Gels
and Life Bioprocess division were classed as discontinued
operations.  In November 2006, the company completed the spin
out of its Australian assets by transferring these assets to a
wholly owned subsidiary, NuSep Ltd.


LIFE THERAPEUTICS: Confirms Mergers and Acquisitions Plans
----------------------------------------------------------
In an update to shareholders, Life Therapeutics Ltd. confirms
that:

   * because of recent positive developments in the
     international plasma market, opportunities have arisen to
     either vertically integrate or merge with and or acquire a
     fractionator.  This strategy will assist LFE to deliver on
     the five year plan announced to the market in 2004.

   * opportunities have also arisen in the Biodiagnostics area
     where the expansion of this division will contribute
     significantly to high margin products and therefore the
     future profit of the company.  These opportunities include
     the acquisition of a Biodiagnostic company.

   * the company is looking at various financial restructuring
     initiatives of existing debt to ensure that these
     opportunities can be acted upon.

The company added that Citigroup was appointed to explore these
opportunities and provide maximum value to shareholders.

The confirmations follow a disclosure by the company made on
December 14, 2006, which states that the company is exploring
available strategic alternatives.  

Life Therapeutics CEO and President Hari Nair said "strategic
alternatives have become available with the recent vertical
integration within the plasma supply market.  Furthermore
opportunities exist to expand the higher margin product lines in
the company."

                    About Life Therapeutics

Headquartered in New South Wales, Australia, Life Therapeutics
Limited --  http://www.life-therapeutics.com/-- is engaged in  
the collection, management and distribution of plasma-based
products, and development, manufacture and sale of
electrophoresis, hematology and Gradiflow products. It operates
in five segments: Life Sera, which collects specialty plasma,
including Anti D and Hepatitis B; Life Diagnostics, which
develops, manufactures and distributes diagnostic products into
the diagnostic marketplace; Life Gels, which develops,
manufactures and distributes pre-cast electrophoresis gels into
the laboratory market; Life Bioprocess, which markets the
Gradiflow technology in both the commercial and research
markets, and Life Shared Services, which conducts corporate
functions of the organization. At June 30, 2006, the Life Gels
and Life Bioprocess division were classed as discontinued
operations. In November 2006, the Company completed the spin out
of its Australian assets by transferring these assets to a
wholly owned subsidiary, NuSep Ltd.

                       Going Concern Doubt

Gamini Martinus of Ernst and Young, the company's independent
auditors, raised a significant doubt on the company's and/or the
consolidated entity's ability to continue as a going concern.

The consolidated group's total liabilities as of June 30, 2006,
exceeded total assets by AU$518,000, primarily as a result of
the loss for the year of AU$42,112,000, which includes a non-
cash charge of AU$10,147,000 for the change in fair value of the
embedded derivatives.  In addition, the company has net
operating cash outflows of AU$15,436,000.  


MINI MATES: Sets Members & Creditors' Final Meeting on Feb. 28
--------------------------------------------------------------
Mini Mates Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on Feb. 28, 2007, at
11:45 a.m.

During the meeting, the liquidator will present an account of
how the company was wound up and its properties disposed of.

The liquidator can be reached at:

         Leonard A. Milner
         Venn Milner & Co Chartered Accountants
         Suite 1, 43 Railway Road
         Blackburn, Victoria 3130
         Australia

                        About Mini Mates

Mini Mates Pty Ltd is a distributor of blouses and shirts for
children and infants.

The company is located in Victoria, Australia.


PLAZA INTERIORS: Creditors' Proofs of Debt Due on February 28
-------------------------------------------------------------
Plaza Interiors (Victoria) Pty Ltd, which is subject to a deed
of company arrangement, will declare its first dividend on
March 2, 2007.

Accordingly, creditors are required to submit their proofs of
debt by Feb. 28, 2007, or they will be excluded from the
dividend distribution.

The deed administrator can be reached at:

         H. A. Mackinnon
         Bent & Cougle Pty Ltd
         Chartered Accountants
         Level 5, 332 St Kilda Road
         Melbourne, Victoria 3004
         Australia

                      About Plaza Interiors

Plaza Interiors (Victoria) Pty Ltd --
http://www.plazainteriors.com.au/-- has been trading since 1991  
as a contracting organization in the Wall and Ceiling Industry.
The company specializes in the design and installation of
specialty ceilings, offering a variety of alternatives to suit
any project.

The company is also a distributor of Acoustic timber panels,
Extenzo stretch ceilings, composite aluminum cladding, and
acoustic panels.


RP DATA: 2006 Annual Balance Sheet Upside Down By AU$8.49 Mil.
--------------------------------------------------------------
RP Data Ltd. reported a net profit of AU$3.58 million for the
year ending June 30, 2006, a turnaround from the AU$2.04 million
net loss it reported for the year ending June 30, 2005, the
company said in its annual report.

For the year in review, total revenue amounted to
AU$26.73 million, profit before financing costs amounted to
AU$7.72 million.

As of June 30, 2006, the company had total assets of
AU$32.67 million and total liabilities of AU$41.17 million,
giving the company a capital deficiency of AU$8.49 million.

                         About RP Data

RP Data Ltd -- http://www.rpdata.com/-- is a property  
information and business service to real estate agencies in
Australia and New Zealand.  The company provides ownership
information, sales and market history, internal and external
photographs, aerial photographs and mapping data on properties.
RP Data also provides business services such as real estate
software applications, training and support.

As of June 30, 2006, the company had total assets of
AU$32.67 million and total liabilities of AU$41.17 million,
giving the company a capital deficiency of AU$8.49 million.


RP DATA: Purchases Home Open and Localwise For AU$2.68 Mil.
-----------------------------------------------------------
RP Data Ltd. has completed the acquisitions of two privately
owned property information services providers, WA-based Home
Open and Victorian based Localwise Pty Ltd., the company said in
a press release.

The two acquisitions will provide additional customers, data and
intellectual property.  They represent strategic "bolt-on"
acquisitions for RP Data in the core real estate agent segment
and position RP Data as the leading provider to real estate
agents in both states.

              Overview of the Acquired Businesses

Home Open was founded in 1996, and is a private owned property
information services provider based in Perth.  The business has
core strengths through its innovative sms, newsletter and
contact management functionality in addition to a core base of
historic data back to 1996.

Localwise was founded in 1996, and is a private owned property
information services provider based in Melbourne.  The business
has a significant customer base in Victoria, a deployed software
system, and comprehensive property data including listing
records, zoning data and building permits.

RP Data cEO Graham Mirabito stated that "these acquisitions are
in line with our stated strategic direction to expand our
penetration in all regions and are a great fit for RP Data given
the customer base, core historic data assets, and software all
of which will be assets contributing to the wider RP Data
product portfolios, in particular attribute data for our new
Valuation Services Portfolio.  We also see a number of benefits
to be provided for Home Open and Localwise subscribers who will
now be able to access additional data services and in particular
access additional products such as RP Mobile, RP's one touch
Predictive CMA, instant valuations with RP Automated Valuation
Models and Property Indices with RP Market Pulse."

                           Financials

   * The total consideration for the two acquisitions was
     AU$2,675,000 in cash.

   * In total these acquisitions are expected to generate over
     AU$1,000,000 in revenues over the next twelve months.

   * Significant cost reductions are expected with the
     integration into RP Data's existing operational and IT
     infrastructure.

RP Data will recognise 6 months of each acquisition in its FY07
accounts, less charges for amortisation of any identifiable
intangible assets.

                         About RP Data

RP Data Ltd -- http://www.rpdata.com/-- is a property  
information and business service to real estate agencies in
Australia and New Zealand. The Company provides ownership
information, sales and market history, internal and external
photographs, aerial photographs. and mapping data on properties.
RP Data also provides business services such as real estate
software applications, training and support.

As of June 30, 2006, the company had total assets of
AU$32.67 million, total liabilities of AU$41.17 million, giving
the company a capital deficiency of AU$8.49 million.


SNODINE PTY: Schedules Final Meeting on March 1
-----------------------------------------------
Snodine Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on March 1, 2007, at
4:05 p.m.

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

The liquidator can be reached at:

         N. C. Malanos
         Crosbie Warren Sinclair
         Corner of Pacific Highway and Warabrook Boulevard
         Warabrook, New South Wales
         Australia

                       About Snodine Pty

Snodine Pty Limited operates miscellaneous business credit
institutions.

The company is located in New South Wales, Australia.


SONS OF GWALIA: Court Dismisses Appeal Against Shareholder
----------------------------------------------------------
In a statement filed with the Australian Stock Exchange, the
Board of IMF (Australia) Limited states that on Jan. 31, 2007,
the High Court of Australia dismissed appeals by the
administrators of Sons of Gwalia Limited and ING Investment
Management LLC -- a major unsecured creditor of the company --
against earlier judgments in the Federal Court of Australia
which effectively elevated a group of shareholder claims to
equality with the claims of the general body of unsecured
creditors.

In handing down his decision, Chief Justice Murray Gleeson said
that it is important that defrauded shareholders had equal
standing with creditors since they are most in need of
protection when a company goes bust, The Australian relates.

The case is likely to cost about AU$500,000 in legal fees, the
paper notes.

The Troubled Company Reporter - Asia Pacific reported on
March 1, 2006, that Luka Margaretic initiated a legal action
against Sons of Gwalia Ltd., claiming that the company has
breached continuous disclosure obligations and engaged in
misleading and deceptive conduct.

The TCR-AP noted that Mr. Margaretic bought AU$26,000 worth of
shares in Sons of Gwalia Ltd. in 2004, barely two weeks before
its collapse.

Justice Arthur Emmet of the Federal Court ruled in Mr.
Margaretic's favor and directed the company to consider him as a
creditor.  The TCR-AP subsequently reported that the company
filed an appeal against Judge Emmet's decision.  However, three
Federal Court judges dismissed the Appeal.

The TCR-AP recounts that the company's Administrators has
disclosed that there have been 5,304 shareholder claims made in
the Administration asserting aggregate damages of
AU$242 million.  These claims will be subject to the outcome of
a Shareholder Test Case, as well as the various claimants being
required to establish the bona fides of their shareholdings and
the validity and quantum of their claims for damages.

According to The Australian, the shareholders' claims amounting
to AU$242 million will put a severe dent in the proceeds
creditors will get from the assets that a year ago were
estimated to be worth about AU$450 million.

IMF Australia says it is funding the claims of 800 shareholders
whose claims total approximately AU$70 million.  These
shareholders will establish their claims with the administrator
either by agreement or through the Court process, upon which
they will be entitled to a pro-rata distribution with all other
unsecured creditors.

                  Ruling no Significant Impact

According to Andrew Love, one of the joint administrators, "the
finding will have no impact on the company's timetable to emerge
from administration."

"The company has already received a significant number of
shareholder claims and they will now be dealt with in accordance
with the decision of the High Court," Mr. Love says.

However, Mr. Love notes that the High Court's decision does not
automatically entitle a shareholder to rank immediately as a
creditor.  The onus will be on the respective shareholder
claimants to prove their individual claim was suffered as a
consequence of purchasing shares in reliance on misleading and
deceptive conduct.

                     About Sons of Gwalia

Headquartered in Perth, Western Australia, Sons of Gwalia Ltd --
http://sog.com.au/-- is a mining company listed on the  
Australian Stock Exchange for over 20 years.  The Company had
two operating divisions, Gold and Advanced Minerals.  Sons of
Gwalia is the world's single biggest producer of Tantalum.

In August 2004, Gwalia announced a strategic review, which
included AU$10 million in cost savings for 2003-04 and the loss
of 100 jobs from the gold division and Perth head office, after
the Company failed to meet its hedging commitments due to the
serious deterioration of its gold reserves and resources.

The Company collapsed with AU$862 million in debt, and called in
joint and several administrators Andrew Love, Garry Trevor and
Darren Weaver of Ferrier Hodgson.  The Company was also unable
to obtain agreement of all creditor counterparties to a
standstill agreement.  In February 2006, Gwalia announced that
it will undertake an operational restructure following recent
agreements reached with its two major customers for reduced
sales volumes in return for production and product specification
flexibility.  The operational restructure will maximize tantalum
production at Gwalia's lower cost Wodgina mine.

The Company is under a Deeds of Company Arrangement.


SONS OF GWALIA: Court Ruling Unwelcome for Investors, Fitch Says
----------------------------------------------------------------
On Feb. 1, 2007, Fitch Ratings said the recent decision by the
Australian High Court to uphold the right of a shareholder to
claim damages against a company in bankruptcy, thus ranking the
claim alongside unsecured creditors is an unwelcome development
for investors of Australian senior unsecured debt issues and
bankruptcy proceedings in general.  However, the agency said the
ruling is not expected to have any immediate major impact on
Australian debt markets.

"Fitch does not expect any "knee-jerk" reaction from the case,"
said Andrew Smith, Managing Director Australia and New Zealand.
"However, since a ruling from the High Court closes any further
avenue for appeals, it does have important implications for debt
investors and insolvencies in Australia unless legislative
changes are made to better protect the position of unsecured
creditors," Mr. Smith added.  The agency notes that the general
principle under Australian corporate law of senior unsecured
creditors ranking ahead of shareholders in the liquidation of a
company is still in place.  However, this latest decision
potentially opens the door for certain shareholders to elevate
their position and claims in a corporate bankruptcy.

"The Gwalia decision will not have a direct impact on Fitch's
issuer default credit ratings as these ratings reflect the
probability of default as opposed to the recovery in an event of
default," said Mr. Smith.  "However, the agency notes that
recoveries for defaulted senior unsecured debt issues will most
likely be diluted if there are significant shareholder claims
that would successfully rank them equal with other senior
unsecured creditors.  Consequently recovery could be lower for
lower-rated and defaulted senior unsecured debt issues,
reflecting potentially lower recoveries, although the agency
will not be changing any of its recovery assumptions until there
is sufficient data and evidence available to show otherwise.  
The decision will also have no impact on ratings or recoveries
for senior secured debt issues, as these will continue to rank
ahead of senior unsecured creditors and any potential
shareholder claims, Mr. Smith added. (For more information,
please refer to Fitch's Special Report on Recovery Ratings dated
26 July 2005).

The agency also notes that sub-investment grade issuers and
possibly lower/marginal investment grade issuers would
potentially be the most affected by the decision.  For the
latter, it may lead to reduced ability to issue senior unsecured
debt due to lower investor demand or appetite for such issues
(particularly US private placement investors who lost money on
Sons of Gwalia), possibly giving rise to potential implications
on refinancing risk for such issuers with large refinancing
requirements.  Also, there could be an increase in the level of
secured financings for the lower rated issuers who may face
financing constraints as a result of the former; the potentially
higher loss levels (given default) on lower rated issuers could
result in a higher risk premium or interest rate margin on
unsecured debt in order to compensate unsecured debt holders;
Australian banks may need to make some adjustments to provisions
for bad or doubtful debts to reflect the possibility for lower
recoveries on defaulted unsecured loans (although such
adjustments should not have any meaningful impact on the
Australian banks' existing provisions or credit profiles); and
insolvencies and administrations are likely to become more
protracted, litigious and costly with such shareholder actions.
The latter could further reduce overall recoveries available to
creditors and add more uncertainty in restructuring scenarios.

In terms of market impact, Fitch notes that a similar issue of
shareholders being allowed to claim as creditors in the UK House
of Lords Case (Soden's Case, 1998) in relation to
misrepresentation claims has been in effect for almost a decade
and has not appeared to cause any major issues for the UK debt
markets or senior unsecured issuers.  Furthermore, the decision
will most likely affect a relatively small portion of Australian
corporate bankruptcies, as a shareholder may only be able to
make a successful claim if it can be proven there was a loss as
a direct result of misleading and deceptive conduct in breach of
the Trade Practices Act.  The Sons of Gwalia case was
essentially a test case brought about by a retail shareholder
(funded by a specialist litigation funder) which may lead to a
class action by similar retail shareholders and it will be
interesting to see if any institutional or larger shareholders
will also make a claim.

Fitch will continue to monitor the impact of the Gwalia decision
on Australia's debt markets and issuers.  However, in Fitch's
view, any material adverse impact can be relatively easily
avoided through changes in legislation by the Commonwealth
Government to clarify that all shareholders' claims against a
company (regardless of the capacity and the nature of the claim)
rank behind all creditors.  There will no doubt be lobbying by
Australian debt market participants and bank lenders to make
such changes to legislation.


TRANSLANE PTY: Enters Wind-Up Proceedings
-----------------------------------------
At an extraordinary general meeting held on Jan. 18, 2007, the
members of Translane Pty Ltd resolved to voluntarily wind up the
company's operations.

Subsequently, Wayne Benton was appointed as liquidator at the
creditors' meeting held that same day.

The Liquidator can be reached at:

         Wayne Benton
         PPB
         Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria 3000
         Australia

                       About Translane Pty

Translane Pty Ltd is engaged with steel foundries.

The company is located in Victoria, Australia.


ZINIFEX LTD: EU Queries on Umicore Joint Venture Due on Feb. 26
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Umicore and Zinifex Limited signed a Memorandum
of Understanding with the objective of combining their
respective zinc smelting and alloying businesses.

In an update, the European Commission said the deadline for its
inquiry into the proposed merger is Feb. 26, 2007, Forbes cites
AFX News Limited.

According to the TCR-AP, Umicore and Zinifex intend to operate
the new company as an independent entity from its inception with
its own Board of Directors and Executive Committee.  The jointly
owned company would be incorporated in Belgium, have its global
headquarters in London and have regional support centers in
Melbourne, Australia and Balen, Belgium.

The new venture is targeted to come to existence in the third
quarter of calendar 2007, subject to required presentation to
the works councils in Europe and the receipt of necessary
regulatory and shareholder approvals, the TCR-AP noted.

The official name of the venture is yet to be decided, AFX News
notes.

                         About Zinifex

Zinifex Limited, one of the world's largest integrated zinc and
lead companies -- http://www.zinifex.com/-- is headquartered in  
Melbourne, Australia.  The company owns and operates two mines
and four smelters.  The mines and two of the smelters are
located in Australia and supply the growing industrial markets
of the Asian-Pacific region, including China.  The company also
has a zinc smelter in the Netherlands and the United States.

The company sells a range of zinc metal, lead metal, and
associated alloys in 20 countries.

More than 80% of the company's products are distributed outside
Australia, particularly in Asia, which is experiencing
significant growth in construction activity and vehicle
production.  Zinc is used for steel galvanizing and die-casting
and lead for lead acid batteries used mainly in cars and other
vehicles.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Aug. 9,
2006, that Fitch Ratings assigned Zinifex a Long-term foreign
currency Issuer Default Rating of 'BB+' with a Stable Outlook.

According to Fitch, the rating is unaffected by Zinifex's
announcement of a proposed transaction with Belgium-based
specialty metals group Umicore to merge their respective zinc
smelting and alloying businesses, a Dec. 14, 2006, TCR-AP report
noted.


* Australian Utilities' 2007 Credit Outlook Negative, Fitch Says
----------------------------------------------------------------
On Jan. 31, 2007, Fitch Ratings said the credit outlook for the
Australian utility sector continues to be negative for 2007.  
The increasing prevalence of highly geared acquisitive
strategies, shareholder-friendly distribution policies and high
asset purchase prices, combined with unprecedented high levels
of capital expenditure for regulated utilities and upward
pressure on operating and financial costs, call for investors to
maintain a caution approach towards the Australian utility
sector over the coming 12 months.

"Fitch expects the dominant themes of the last 12 months will
continue to persist in 2007," said Carolyn Martin, Regional Head
of Fitch's Energy & Utilities team in a 2007 outlook report for
the Australian utility sector published today.  "Consistent with
Fitch's expectations, significant mergers and acquisitions
activity occurred in 2006 and this trend is expected to continue
in 2007.  Fitch expects that the combination of acquisitive
strategies and high asset prices will drive up leverage and
continue to pressure credit ratings," Ms. Martin added.

Amongst others:

   1) AGL Energy Limited has made an unsolicited approach to
      Origin Energy Limited (rated 'BBB+'/Stable) to merge;

   2) Queensland Gas Company is being wooed by Santos Limited
      and AGL;

   3) Origin's infrastructure assets including stakes in
      Envestra Limited, SEAgas pipeline and its asset management
      company are on the market;

   4) AGL, TRUenergy (rated 'BBB+'/Stable) and Babcock& Brown
      are seeking regulatory approval to acquire Powerdirect
      (the remaining Queensland government retail assets being
      privatized);

   5) AGL and TRUenergy have announced a generator asset swap;

   6) electricity interconnector, BassLink may be sold; and

   7) Alinta is the subject of a management buyout proposal and
      the Board has effectively called for other potential
      bidders.

"Integrated utilities, such as Origin and AGL, aim to strengthen
the quality of their internal hedges by undertaking further
acquisitions to support their generation and retail operations
and secure their gas supply requirements," said Ms. Martin.

"Infrastructure funds, financial investors and existing
regulated utilities are also seeking to grow their assets under
management. Of particular interest are companies with
predominantly regulated cashflows which are capable of bearing
high leverage," Ms. Martin added.

The agency observes that regulated utilities are also facing
high capex commitments due to strong growth in peak energy
demand, increased emphasis on the security of key grid
components and an aging network.  Capex commitments are
estimated to be more than AU$18 billion under the current five-
year regulatory determinations.  Fitch's analysis indicates that
most Australian network utilities will need to draw upon
additional debt, resulting in deteriorating credit metrics, to
meet their high capex requirements, particularly in light of
their onerous dividend commitments.

The report also discusses various challenges for Australian
generators and retailers, including a volatile pool price
environment.  Upward pressure on operating and financial costs
is also evident across the broader sector, with market
participants facing a tight labor market and an aging workforce
combined with higher capital costs for materials required for
new generation plant, poles and wires.  In addition, Fitch
expects that competition for retail customers will continue
strongly in Victoria and South Australia, and increase
significantly in New South Wales, assuming the state's regulator
increases the headroom in its regulated retail tariff for small
customers as Fitch expects.  Competition will also increase in
Queensland, as full retail contestability commences from 1 July
2007.

On the regulatory side, the report notes that the newly
established Australian Energy Regulator ("AER") is progressively
assuming its regulatory functions in phases during 2007.  While
there will be changes to the regulatory process in Australia as
the AER finalizes national policies for regulation, Fitch does
not expect these to be material to the creditworthiness of the
Australian utilities.

Fitch will be hosting a teleconference on February 5, 2007, at
10 a.m. (Australian EDST) to discuss the agency's 2007 outlook
for the Australian and New Zealand energy and utility sectors.
Details of the teleconference and a copy of the report
"Australian Utilities: Credit Outlook 2007" can be found on the
agency's Web sites, http://www.fitchratings.com.auand the  
subscription-based http://www.fitchresearch.com


* Fitch Says AU Oil & Gas Sector With Stable Outlook for 2007
-------------------------------------------------------------
On Jan. 31, 2007, Fitch Ratings said the credit outlook for the
Australian oil and gas sector is stable for 2007.

"The stable outlook reflects the strong fundamentals in the
upstream industry, offset by aggressive capital expenditure for
growth programmes and continued pressure on costs across the
sector," said Gavin Madson, Associate Director of Fitch's Energy
& Utilities team in a 2007 outlook report for the Australian Oil
and Gas sector published today.

"The strong fundamentals should provide strong cash flows
underpinning stable credit metrics in the short term," added Mr.
Madson.

The agency also observes that bondholders would continue to face
risks in the upstream sector arising from higher service and
drilling costs, increased M&A (mergers and acquisitions)
activity at higher premiums, higher finding and development
costs as well as higher overall cost structures. While the
current price environment has mitigated the near-term impacts of
these concerns, a substantial pullback in prices would highlight
each of these risks to bondholders.

The report also discusses various challenges for Australian oil
and gas operators including how continued high commodity (input)
prices, and ongoing wage pressures brought on by a lack of
skilled workers in an environment of an extended mining boom,
have conspired to put a number of major projects under cost
pressure witnessed by cost blow-outs on a number of projects
both here and abroad. Those companies seeking to increase their
size through monetizing reserves, increasing resources or
acquiring producing assets do so in a high cost environment. As
a result of this high cost environment, the high prices being
achieved for oil and gas are unlikely to result in materially
improved credit metrics over the short to medium term.

Fitch anticipates that commodity prices will come off from the
highs of 2006 in the current year, with the agency targeting a
price deck for crude oil and natural gas of USD50/bbl (NYMEX-
WTI) and USD5.50/Mcf (U.S. Henry Hub) in 2007. These prices
represent a significant decline from the average prices
experienced in 2006. Fitch's long-term price deck for crude and
natural gas prices remain well below current market prices at
USD30/bbl for WTI and USD4.00/Mcf for U.S Henry Hub gas. While
these long-term prices are not expected to be seen in 2007 or
2008, Fitch expects the large capital investments being made
world wide to eventually result in increased production levels
while demand growth rates are expected to remain moderate.

Fitch will be hosting a teleconference on Monday 5 February 2007
at 10am (Australian EDST) to discuss the agency's 2007 outlook
for Australian and New Zealand energy and utilities sectors.
Details of the teleconference and a copy of the report
'Australian Oil and Gas: Credit Outlook 2007' can be found on
the agency's web sites, www.fitchratings.com.au and the
subscription-based www.fitchresearch.com.


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

AGRICULTURAL BANK: May Get Cash Injection in Listing Preparation
----------------------------------------------------------------
The Agricultural Bank of China will have its capital increased
by Central Huijin Investment Co., an investment company owned by
the central bank, in the first half of this year as it moves
towards a public listing, various reports say.  

The actual figure of the capital injection will depend on the
result of the National Audit Office's report.

Xinhua News, however, cites a Huijin senior official as saying
that the figure will be at US$25 to US$30 billion, without
revealing how it got the number.  The paper further relates that
the capital injection may take place as early as the first half
of the year.

As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 1, 2007, NAO and Deloitte, an independent auditor, are
currently auditing the books of the bank in preparation for the
implementation of its reform plan.  NAO estimates to complete
its full audit within the first half, while Deloitte is likely
to complete its own audit in May.

The TCR-AP reported on Jan. 23, 2007, that the bank's
shareholding reform 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.

Meanwhile, the bank reported fewer bad loans with non-performing
loan ratio dropping to 2.73 percentage points from 2005 to
23.44% last year, Xinhua says.

In addition, as the bank prepares for its public listing, it
wrote off CNY4.2 billion of bad loans last year, while all types
of credit in Renminbi and foreign currencies increased CNY308.6
billion during the year.

The bank also reported CNY58.1 billion in profits last year, 37%
up year on year, Xinhua News adds.

According to the requirements for public listing by the China
Banking Regulatory Commission, the ABC has to reduce its NPL
ratio to 5% after the joint-stock reform.

                          *     *     *

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.


BAPTIST COMMUNICATIONS: Members' Final Meeting Set for March 1
--------------------------------------------------------------
The final meeting of the members of Baptist Communications
Center (International) Ltd will be held on March 1, 2007, at
12:30 p.m., to consider the liquidator's account of the
company's wind-up proceedings.

The Troubled Company Reporter - Asia Pacific reported that the
company entered voluntary liquidation on Sept. 14, 2006.

The liquidator can be reached at:

         Ng Sau Wa, Sylvia
         Room 2402, 24/F., Sing Pao Building
         101 King's Road, Fortress Hill
         Hong Kong


CREATIVE EYEWEAR: Court Appoints Joint Liquidators
--------------------------------------------------
On Dec. 20, 2006, the High Court of Hong Kong appointed Roderick
John Sutton and Desmond Chung Seng Chiong as joint and several
liquidators of Creative Eyewear Ltd.

According to the Troubled Company Reporter - Asia Pacific, the
company received the Court's wind-up order on Sept. 6, 2006.

The Joint and Several Liquidators can be reached at:

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


DENSEN DEVELOPMENT: Enters Voluntary Wind-Up
--------------------------------------------
At an extraordinary general meeting held on Jan. 26, 2007, the
shareholders of Densen Development Ltd passed a special
resolution to voluntarily wind up the company's operations.

Accordingly, Yong Sum Fat was appointed as liquidator and was
authorized to divide the company's assets to its members.

The Liquidator can be reached at:

         Yong Sum Fat
         21/F, Fee Tat Commercial Centre
         No. 613 Nathan Road, Kowloon
         Hong Kong


GRAND JOY: Members Decide to Close Business
-------------------------------------------
On Jan. 12, 2007, the members of Grand Joy (HK) Ltd passed a
special resolution to voluntarily wind up the company's
operations and appointed Lau Hin Chi as liquidator.

The Liquidator can be reached at:

         Lau Hin Chi
         Suite 5008, Hopewell Centre
         183 Queen's Road East, Wanchai
         Hong Kong


IAC BANK: Plans to Sell Brokerage Unit to Hong Kong Banking Arm
---------------------------------------------------------------
The Industrial and Commercial Bank of China plans to sell the
retail securities and futures divisions of ICEA Finance Holdings
to its Hong Kong banking unit, ICBC (Asia), China Knowledge
reports, noting that the sale price has yet to be set.

According to the report, ICEA was set up in 1998 with the aim of
facilitating mainland companies' IPO.  It is 75% owned by ICBC
and 25% by Bank of East Asia.


According to a South China Morning Post report cited by China
Knowledge, the bank's move to dissolve its Hong Kong brokerage
unit is to distance itself from a scandal that led to the
collapse of Euro-Asia Agricultural.

China Knowledge recounts that the venture got into trouble for
sponsoring the share sale of Shenyang-based orchid grower Euro-
Asia.

Euro-Asia allegedly inflated its revenue by 20 times in the four
years leading up to its listing in Hong Kong in July 2001.  It
went into liquidation a year later and its shares were delisted
in May 2005, China Knowledge relates.  Former chairman Yang Bin
is serving an 18-year sentence for fraud and bribery.

Meanwhile, ICBC will probably take over the unit's investment
banking division -- ICEA Capital -- after the disposal.  ICBC
plans to apply for a new investment-banking license and merge
ICEA Capital into the new unit under another brand, the paper
says.

                          *     *     *

The Industrial and Commercial Bank of China --
http://www.icbc.com.cn-- is the largest state-owned commercial  
bank, and is authorized by the State Council and the People's
Bank of China.  ICBC conducts operations across China as well as
in major international financial centers.

On September 18, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed ICBC' Individual D/E
rating.

On December 6, 2006, Moody's Investors Service upgraded to D-
from E+ the Bank Financial Strength Rating for Industrial and
Commercial Bank of China.  The D- BFSR has a stable outlook.  
The upgrade concludes a review of ICBC's BFSR started on August
9, 2006.



LEXICON INTERNATIONAL: Court Sets Wind-Up Hearing on Feb. 7
-----------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
Lexicon International Ltd on Feb. 7, 2007, at 9:30 a.m.

Yip Suen Pun filed the petition with the Court on Oct. 26, 2006.

Yin Suen's solicitor can be reached at:

         Huen & Partners
         Units 3307-12, 33rd Floor
         West Tower Shun Tak Centre
         168-200 Connaught Road, Central
         Sheung Wan, Hong Kong
         Tel: 2249 7777
         Fax: 2105 6077


MCLARENS ASIA: Members Pass Resolution to Wind Up Firm
------------------------------------------------------
On Jan. 18, 2007, the members of McLarens Asia Ltd passed a
special resolution to voluntarily wind up the company's
operations.

Young Chun Man Kenneth and Chan Yuen Bik Jane were consequently
appointed as liquidators and were authorized in the distribution
of the company's assets.

The Liquidators can be reached at:

         Young Chun Man Kenneth
         Chan Yuen Bik Jane
         31/F, Gloucester Tower
         The Landmark
         11 Pedder Street, Central
         Hong Kong


NICE LOOK: Members to Receive Wind-Up Report on February 26
-----------------------------------------------------------
The members of Nice Look Investment Ltd will meet on Feb. 26,
2007, at 11:00 a.m., to receive a report regarding the company's
wind-up proceedings and property disposal exercises from the
liquidator.

The liquidator can be reached at:

         Cheuk Yee Man
         Room 2810, 28/F.,
         113 Argyle Street
         Kowloon, Hong Kong


NO RISK: Creditors to Meet on February 21
-----------------------------------------
The creditors of No Risk Company Ltd will meet on Feb. 21, 2007,
at 5:00 p.m. to:

   -- receive a statement of affairs of the company and a list
      of its creditors;

   -- confirm the nomination of liquidator;

   -- appoint, if required, a committee of inspection;

   -- fix the remuneration of liquidator;

   -- sanction powers and duties of liquidator; and

   -- resolve that the liquidator's accounts need not be
      audited.

The Troubled Company Reporter - Asia Pacific previously reported
that the company was placed under voluntary wind-up on Jan. 15,
2007.

The liquidator can be reached at:

         Ip Pui Lam
         2/F, Jonsim Place
         228 Queen's Road East, Wanchai
         Hong Kong


RICHPLAN LIMITED: Court Sets Wind-Up Hearing Set on February 14
---------------------------------------------------------------
On Dec. 11, 2006, Vastheme International Company Ltd filed
before the High Court of Hong Kong a petition to wind up the
operations of Richplan Ltd.

The petition will be heard on Feb. 14, 2007, at 9:30 a.m.

Vastheme International's solicitor can be reached at:

         Tanner De Witt
         1806, Tower Two, Lippo Centre
         89 Queensway
         Hong Kong


SEMICON MANUFACTURING: Posts Fourth Qtr Profit from Asset Sale
--------------------------------------------------------------
Semiconductor Manufacturing International Corp posted a fourth-
quarter profit after asset sales compensated for a loss in the
company's main business, Bloomberg reports.

The report reveals that the company's net income for the period
ended Dec. 31, 2006, was US$1.2 million compared with a net loss
of US$15 million a year earlier.

Sales also rose by 15% mainly from the sale of machinery and
equipment, which gained US$41.7 million, Bloomberg adds.

However, the company posted an operating loss due to lower
orders from clients because of falling sales of cell phones and
consumer electronics.  The slump is set to continue with the
company's key customer -- Texas Instruments Inc. -- forecasting
lower-than-expected sales in the current quarter, Bloomberg
notes.

Bloomberg further reveals that Semiconductor Manufacturing
posted an operating loss of US$26.9 million excluding the gain
from disposal of assets in the quarter ended-December 2006.  
Based on the median estimate of eight analysts surveyed by
Bloomberg, the company was expected to report a net loss of
US$25.6 million.

Higher depreciation expenses and a change in product mix caused
the company's gross margins to decrease by almost half to 6.6%
from 12.9% a year earlier, Bloomberg says, noting that the
company expects first-quarter margins to improve to between 12%
and 14%.

Meanwhile, the company's Hong Kong representative, Anne Chen,
told reporters that the firm is considering spinning off one of
its plants into a separate company for listing on a mainland
bourse, South China Morning Post relates.

The paper also notes that the company is also considering plans
for an additional share placement in Hong Kong.

                          *     *     *

Headquartered in Shanghai, China, Semiconductor Manufacturing
International Corporation -- http://www.smics.com/-- is an  
international company and one of the leading semiconductor
foundries in the world, providing integrated circuit (IC)
manufacturing at 0.35um to 90nm and finer line technologies to
customers worldwide.  Established in 2000, SMIC has four 8-inch
wafer fabrication facilities in volume production in Shanghai
and Tianjin.  

SMIC also maintains customer service and marketing offices in
the U.S., Europe, and Japan, and a representative office in Hong
Kong.  SMIC's employs over 2,500 semiconductor industry experts
and technical staff.


SUN HUNG: Shareholders Decide to Liquidate Business
---------------------------------------------------
On Jan. 8, 2007, the shareholders of Sun Hung Kai China
Development Fund Ltd decided to voluntarily liquidate the
company's business and appointed Lai Kar Yan Derek and Darach E.
Haughey as liquidators.

Accordingly, the company's creditors are required to prove their
debts by March 7, 2007, or they will be excluded from sharing in
any distribution the company will make.

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


SUN RAISE: Undergoes Voluntary Wind-Up
--------------------------------------
At an extraordinary general meeting held on Jan. 26, 2007, the
shareholders of Sun Raise Industries Ltd passed a special
resolution to voluntarily wind up the company's operations.

In this regard, Chung Wah Shing was appointed as liquidator and
was authorized to divide the company's assets to its members.

The Liquidator can be reached at:

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


TOP LEAD: Creditors' Proofs of Claim Due on March 16
----------------------------------------------------
The creditors of Top Lead Industrial Ltd are required to submit
their proofs of claim by March 16, 2007, to be included in any
distribution the company will make.

As reported by the Troubled Company Reporter - Asia Pacific, the
company entered members' voluntary wind-up on Jan. 9, 2007.

The liquidator can be reached at:

         Liu Wing Ting Stephen
         17/F, Shun Kwong Commercial Building
         No. 8, Des Voeux Road West
         Sheung Wan
         Hong Kong


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

BRITISH AIRWAYS: Resumes Normal Operations; Travel Loads Light
--------------------------------------------------------------
British Airways Plc is operating a full flying schedule after
the Transport and General Workers' Union, representing 11,000
cabin crew employees of the airline, called off a planned 48-
hour strike, according to published reports.

However, according to BA, travel loads were light as many
passengers had rebooked their tickets, flown earlier, or made
other plans to avoid the strike days.

The carrier had earlier canceled 1,300 flights in preparation
for the strike action.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, the T&G decided to avert its scheduled strike on
Tuesday and Wednesday after negotiations resulted in an
agreement that ended the two-tier wage structure in the company,
Tracy Alloway and Chad Thomas write for Bloomberg News.

According to the report, the airline agreed to increase the top
base pay of its flight attendants hired after 1997 to GBP19,418
a year from GBP15,748.

The workers will receive the 4.6% wage increase this year and
the rate of inflation in the second year, The Associated Press
says.

BA CEO Willie Walsh said, the agreement "puts in place a system
to regulate how we manage sick leave."

The union also called of its two other 72-hour strikes scheduled
next month.

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

                          *     *     *

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


CENTURION BANK: Fitch Assigns 'D' Individual Rating
---------------------------------------------------
Fitch Ratings, on Jan. 31, 2007, affirmed the National Long-term
rating of Centurion Bank of Punjab Limited at 'A+(ind)' and
removed it from Rating Watch Evolving where it was placed on 22
August 2006 following an announcement that the bank would pursue
a merger with Lord Krishna Bank Ltd., a small private bank based
in south India.  The Outlook on the rating is Stable.

At the same time, the agency assigned an Individual rating of
'D' to CBP.

The ratings are now as follows:

   -- National Long-term affirmed at 'A+(ind)'/ Outlook Stable

   -- Support rating affirmed at '5'

   -- Individual assigned at 'D'

   -- INR930 million subordinated debt programme affirmed at
      'A+(ind)'

   -- INR1 billion certificate of deposits programme affirmed at
      'F1+(ind)'

The proposed merger was initially opposed by LKB's employees and
is awaiting regulatory approval.  While a final view is expected
by March 2007, CBP's financial condition, including size,
capital and asset quality have continued to improve, which is
unlikely to be affected by any adverse impact that the merger
may have in the short-term on CBP's operating profitability.  In
fact, the proposed merger ties in with CBP's strategy of
increasing its size and reach in the next two to three years,
though its benefits are unlikely to be as remarkable as CBP's
earlier merger with the erstwhile Bank of Punjab in 2005.  The
ratings have therefore been affirmed; in fact, if the trend in
improved performance is sustained, the National Long-term
ratings may even be reviewed for a possible upgrade.

CBP's capital ratios have increased significantly since 2004
when its performance started to turn around under the new
management, and equity was over INR13bn at end-December 2006
compared to INR0.6 billion at end-March 2004.

CBOP's predominantly retail loan portfolio together with the
improved deposit structure has helped the bank maintain above
average net interest margins in FY06 (4.1%, systemic median:
3.2%).  The net NPL ratio fell to 1.2% as at end-December 2006
from 2.5% at FYE05 thanks to aggressive provisioning (loan loss
reserves were 77% of gross NPLs at FYE06).  Risk management
systems and analytics are also being upgraded to better handle
the challenges of a rapidly growing loan portfolio with an
increasing component of unsecured lending (close to 16% of total
loans at end-December 2006).

With total assets of nearly INR16 billion at end-December 2006,
CBP still remains a relatively 'small' Indian bank, about half
the size of that of the system median.  Its loan portfolio
predominantly consists of two wheeler loans, commercial
vehicles, residential mortgages and other retail loans.

LKB is an 'old' private sector bank lending primarily to small
and medium enterprises.  The proposed merger will add 112
branches to the existing 249 branches of CBP and increase CBP's
reach in south India.


GENERAL MOTORS: Wants Higher Battery Tech Research Funding
----------------------------------------------------------
General Motors Corp. asked the U.S. government to increase
funding in research and development in battery technology and to
support manufacturing of advanced batteries, David Shepardson of
Detroit News Washington Bureau reports.

The call, Detroit News says, comes as momentum is building on
Capitol Hill to force automakers to improve the efficiency of
their vehicles.

The automakers' move for alternative fuel is in conjunction with
its restructuring efforts, which, according to Reuters, focus on
cutting costs and improving cash flow.

To boost liquidity, Reuters says General Motors is considering a
possible sale of Allison Transmission -- its Indianapolis-based
subsidiary, which makes transmissions and hybrid propulsion
systems for commercial trucks and buses and military vehicles
and employs more than 4,000 workers.

In addition, General Motors said in a filing with the Securities
and Exchange Commission early this week that it will be delaying
the announcement of its 2006 year-end and fourth quarter
financial results but expects to report improved performance in
its automotive business, including record fourth quarter revenue
in 2006.  The company also said that it will restate its
financial statements, primarily due to pre-2002 tax accounting
adjustments.

GM indicated that its deferred tax liabilities, as previously
disclosed in its results for the third quarter of 2006 and prior
periods, were overstated due to errors that originally occurred
primarily before 2002.  While these errors do not impact cash
flow or previously reported cash balances, retained earnings as
of Dec. 31, 2001, and subsequent periods were understated by a
range of US$450 million to US$600 million as a result.

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

                          *     *     *

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

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, S&P said that the company's announcement that it
is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).

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


GENERAL MOTORS: Sales Over 1 Million Cars & Trucks Last Year
------------------------------------------------------------
General Motors Corp. sold over one million cars and trucks in
its LAAM or Latin America, Africa and Middle East region in
2006, Paddock Talk reports.

Paddock Talk relates that for calendar year 2006, LAAM's sales
increased 17.4%, or 153,500, to 1,035,200 vehicles, compared
with 2005.  

According to the report, General Motor's calendar year market
share in LAAM rose to 17.0%, which is it's highest in 16 years,
on the strength of its global brands, particularly Chevrolet.

Maureen Kempston Darkes, President of General Motors LAAM,
commented to Paddock Talk, "2006 was an outstanding year for GM
LAAM.  We sold over one million vehicles for the first time,
while improving average revenue per vehicle and laying the
foundations for sustainable growth in this rapidly expanding and
diverse region.  We credit these results to exciting new
vehicles, especially the new Chevrolet portfolio; a strong
dealer network; and great customer service.  This formula has
made us the leader in the region for nine consecutive years and
we plan to leverage GM's global reach to extend that leadership
going forward."

Paddock Talk underscores that General Motors set unsurpassed
yearly sales records in nine of the 11 major markets in the LAAM
region, including:

          -- Argentina,
          -- Brazil,
          -- Colombia,
          -- Ecuador,
          -- Venezuela,
          -- Egypt,
          -- South Africa,
          -- Other Africa (excludes South Africa, Egypt and
             Kenya), and
          -- Middle East.

General Motor's vehicle sales in LAAM last year represented
11.4% of the firm's global sales, compared with 9.6% it
represented in 2005, Paddock Talk notes.

Paddock Talk emphasizes that General Motors LAAM's fourth
quarter 2006 vehicle sales rose 16.2% to a record 289,500 units,
or a market share of 17.9%, compared with the fourth quarter of
2005.  General Motors set all-time quarterly sales volume
records in Brazil, Venezuela and the Middle East, as well as
sales records in Argentina, Colombia and South Africa.

The report says that in the fourth quarter of 2006, General
Motors:

          -- increased sales by 8.6% in Brazil,
          -- increased market share to 18% in Chile, and
          -- continued rapid pace with sales growth of 45 in
             Colombia and 35% in Venezuela.

Paddock Talk reports that with General Motors' fourth quarter
2006 sales rising by 14.4%, General Motors South Africa achieved
10 consecutive quarters of sales volume records.  General
Motors' sales in Egypt also increased 42.4% in the fourth
quarter of 2006, compared with 2005.  Meanwhile, sales in
General Motors' other Africa markets increased 9%.

General Motors' sales in the Middle East increased 32% in the
fourth quarter of 2006, compared with the same period in 2005.
Market share for the quarter rose to 14.8%, Paddock Talk states.

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

                          *     *     *

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

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, S&P said that the company's announcement that it
is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).

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


ICICI BANK: Shareholders Unanimously Approve Sangli Merger
----------------------------------------------------------
ICICI Bank Ltd's shareholders approved the scheme of
amalgamation with The Sangli Bank Ltd at the bank's
extraordinary general meeting on Jan. 20, a filing with the
Bombay Stock Exchange reveals.

The Scheme of Amalgamation is still subject to the approval of
the Reserve Bank of India and other statutory and regulatory
authorities as may be required.

According to the BSE filing, the share exchange ratio pursuant
to the merger has been fixed at 100 equity shares of ICICI Bank
for every 925 equity shares of SBL.

The Scheme would be effective from the date on which RBI
approves the Scheme or such other date as may be specified by
RBI by an order in writing.

After RBI accords its sanction to the Scheme, the bank's board
of directors or a committee would fix a record date for
determining the shareholders of SBL who would be eligible for
the shares of ICICI in exchange of their shares of SBL.

Subject to the RBI's approval, ICICI is expected to issue
3.46 million equity shares of INR10 each face value against
SBL's 31.96 million equity shares of the face value of
INR10 each.  The new shares to be issued would be listed at BSE
and the National Stock Exchange of India Ltd.

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 8, Sangli employees protested the proposed merger and
observed a full strike last month.

According to a Jan. 28 report by The Economic Times, ICICI Bank
signed a memorandum of understanding with the officers' union of
Sangli Bank.

Under the MOU, the Sangli officers agree to go through the
training process and not go on strike on national-level
ideological issues, the report says.

The Times further relates that the MOU provides, among others:

   -- increase in salaries;

   -- the staff getting a fixed bonus; and

   -- ICICI's implementation of a new pension plan.

ICICI reportedly had set aside INR30-35 crore for the
implementation of the pension plan.

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.


INDIA CEMENTS: December 2006 Qtr. Profit Soars to INR797.8 Mil.
---------------------------------------------------------------
India Cements Ltd files with the Bombay Stock Exchange the
company's unaudited financial results for the three months ended
Dec. 31, 2006.

For fourth quarter of 2006, India Cements recorded a net profit
of INR797.8 million, more than 10 times the INR72.2 million
booked in the corresponding quarter in 2005.

Total income increased 35% from INR3.503 billion in the quarter
ended Dec. 31, 2005, to INR4.741 billion in the last quarter of
2006.

Despite the soaring revenues, India Cement's expenditures did
not rise as much.  The company's operating expenses rose by just
by 13% from INR2.999 billion in the 4th quarter of 2005 to
INR3.394 billion in the corresponding period in 2006.

Expenditures for the quarter under review includes:

   -- Decrease in stock in trade of INR59.40 million;
   -- Consumption of raw material of INR541.70 million;
   -- Staff cost of INR241.60 million;
   -- Power and fuel of INR1188.80 million;
   -- Transportation and handling of INR768.50 million; and
   -- Other expenditure of INR593.60 million.

The company points out that as of Dec. 31, 2006, its accumulated
losses have been completely wiped out.

Headquartered in Chennai, India, India Cements Limited --
http://www.indiacements.co.in/-- manufactures and markets  
cement under the brand name Coromandel cement.  The Company was
established in 1946 and the first plant was set up at
Sankarnagar in Tamilnadu in 1949.  Since then, it has grown in
stature to seven plants spread over Tamilnadu and Andhra
Pradesh.

The Company was prompted to undertake debt restructuring plans
in 2003.  The Company reduced interest costs, improved capacity
utilization, implemented voluntary retirement schemes and raised
equity.  All these initiatives helped the firm bring down its
debt under the corporate debt restructuring program from
INR1,700 crore to the current INR400 crore.

The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2006, that India Cements has successfully reduced its workforce
by 1,400 since it started its revival program.  The job cuts are
part of the Company's continuing corporate debt restructuring.


KOTAK MAHINDRA: Fitch Rates Corporate Loan's Certificates at AA-
----------------------------------------------------------------
Fitch Ratings, on Jan. 31, 2007, assigned an expected National
Long-term rating of 'AA-(ind)(SO) to the pass through
certificates to be issued by the special purpose vehicle,
Corporate Loan Securitisation Series XXIII Trust 2006, for the
securitisation of receivables from a three-year loan with a
recall option, first on November 19, 2007, and then on the same
date every year until maturity.  The final rating is contingent
upon receipt of final documents conforming to information
already received.

The loan aggregates to INR490 million and is extended by Kotak
Mahindra Bank Ltd to Shriram Transport Finance Company Limited.  
KMBL proposes to assign the same loan and the underlying
receivables to the SPV -- Corporate Loan Securitisation Series
XXIII Trust 2006.  The expected rating of the PTCs reflects the
credit quality of the underlying obligor, the payment structure
of the PTCs and the proposed legal structure of the transaction.

The SPV shall purchase the receivables from KMBL in trust and
for the benefit of the investors.  After acquiring the
receivables, the SPV shall issue PTCs to the investors, for a
total consideration equivalent to the value of the discounted
cash flows from the loan.

The issue proceeds will be used by the SPV to pay KMBL as
consideration for the purchase of the receivables.  KMBL will
continue to service the loan and collect the due amounts from
the obligor.

The rating of the certificates is referenced to the credit
quality of the underlying obligor.  Fitch has a rating of 'AA-
(ind)' on STFCL.  The 'AA-(ind)' rating indicates a higher
credit quality.

                          *     *     *

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

On Jan. 19, 2007, Fitch assigned a 'C/D' Individual
rating to Kotak Mahindra Bank Ltd. and affirmed the bank's
support rating at '5'.


IFCI LTD: Net Profit Tops INR1.2 Billion in 4th Quarter 2006
------------------------------------------------------------
For the three months ended Dec. 31, 2006, IFCI Ltd recorded
INR1.294 billion in net profit, or INR1.99 basic earnings per
share -- a turnaround from the INR173.7-million net loss that
the company incurred in the corresponding period in 2005.

The company's total income rose 32% to INR3.675 billion in the
quarter ended Dec. 31, 2006, from INR2.791 billion in the
quarter ended Dec. 31, 2005.

Expenses from operations, however, dipped 53% from
INR1.012 billion in the three months ended Dec. 31, 2005, to
INR478.5 million in the fourth quarter of 2006.  The plunge in
expenses is due to lesser write off/provision for bad and
doubtful assets in the quarter under review.  Included in the
operating expenses for the December 2005 quarter is write
off/bad asset provision of INR932 million compared to the
INR360.20 million provided in the December 2006 quarter.

A copy of the company's financial results for the quarter ended
Dec. 31. 2006, is available for free at the Bombay Stock
Exchange at: http://ResearchArchives.com/t/s?1950

IFCI Limited -- http://www.ifciltd.com/-- is established to  
cater the long-term finance needs of the industrial sector.  The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services.  Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.  Non-
project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project.  Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.

                          *     *     *

Fitch Ratings, on June 29, 2006, affirmed IFCI Limited's support
rating at '4'.  The outlook on the rating is stable.

Additionally, on February 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore.  Instruments carrying this rating
are judged to be of the lowest category.  They are either in
default or likely to be in default soon


IFCI LTD: Morgan Stanley Acquires 2,000,000 Shares
--------------------------------------------------
IFCI Ltd disclosed in a filing with the Bombay Stock Exchange
dated Jan. 24, 2007, that Morgan Stanley & Company International
Ltd acquired 2,000,000 of the company's shares.

Morgan Stanley purchased the shares in open market on Jan. 15.

IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector.  The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services.  Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.  Non-
project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project.  Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.

                          *     *     *

Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support
rating at '4'.  The outlook on the rating is stable.

Additionally, on Feb. 15, 2006, Credit Analysis and Research
Limited retained a CARE D rating to the long and medium term
debt aggregating INR248 crore.  Instruments carrying this rating
are judged to be of the lowest category.  They are either in
default or likely to be in default soon


INDIA CEMENTS: Appoints Ashok Shah to Board of Directors
--------------------------------------------------------
India Cements Ltd informs the Bombay Stock Exchange that its
board of directors appointed Ashok Shah, Zonal Manager (New
Delhi), to represent Life Insurance Corporation of India in the
board.

The board made the move at its meeting held on Jan. 22, 2007.

Mr. Shah will replace P. N. Jambunathan.

Headquartered in Chennai, India, India Cements Limited --
http://www.indiacements.co.in/-- manufactures and markets   
cement under the brand name Coromandel cement.  The Company was
established in 1946 and the first plant was set up at
Sankarnagar in Tamilnadu in 1949.  Since then, it has grown in
stature to seven plants spread over Tamilnadu and Andhra
Pradesh.

The Company was prompted to undertake debt restructuring plans
in 2003.  The Company reduced interest costs, improved capacity
utilization, implemented voluntary retirement schemes and raised
equity.  All these initiatives helped the firm bring down its
debt under the corporate debt restructuring program from
INR1,700 crore to the current INR400 crore.

The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2006, that India Cements has successfully reduced its workforce
by 1,400 since it started its revival program.  The job cuts are
part of the Company's continuing corporate debt restructuring.


STATE BANK OF INDIA: Fitch Affirms 'C' Individual Rating
--------------------------------------------------------
Fitch Ratings on Jan. 31, 2007, affirmed State Bank of India's
ratings as stated below, all with a Stable Outlook.  Fitch also
notes that SBI's INR9.4 billion subordinated debt issue has been
paid in full.

   * Long-term foreign currency Issuer Default rating 'BBB-'

   * Short-term rating 'F3'

   * National Long-term rating 'AAA'(ind)

   * Individual 'C'

   * Support '2'

   * EUR100 million bonds rated 'BBB-'

   * US$500m bonds rated 'BBB-' (BBB minus)

   * INR25bn subordinated debt rated 'AAA'(ind)

The ratings reflect SBI's improved asset quality and solvency
indicators, together with its quasi-sovereign risk status as
India's largest bank with huge systemic importance.

The gross NPL ratio has been declining through write-offs and
lower incremental NPLs in a benign economic environment; the
risk management systems are also being upgraded, including a
restructuring of the bank's retail credit process, to better
handle the rapid loan growth of nearly 30% p.a. since FY05.  
Loan loss reserves were however below average at 45% of gross
NPLs at FYE06, and loan loss provisions would likely increase in
future.

SBI has been raising subordinated debt (both Upper and Lower
Tier II) in FY07 to bring its total capital adequacy ratio
closer to 12%.  The bank may need to raise hybrid Tier 1 capital
to meet a possible shortfall between internal accruals and
rising capital requirements in FY08.  The latter is expected to
rise with expected loan growth and the effect of capital charges
for operational risk under Basel 2 in FY08.

The effect of the unprovided pension liabilities (the proposed
AS15) may also prove to be onerous, and the bank may raise
common equity over the next two years.  The amount of common
equity that can be raised is limited by the statutory minimum of
55% of the government's shareholding (currently 59.7%), and the
proposed amendment of the SBI Act to reduce the floor to 51% in
line with other government-owned banks, may provide some relief.

The net income had markedly reduced during the first nine months
of 2007 in contrast to other banks, as the corresponding figure
in FY06 was boosted by one-time income (primarily from interest
on tax refunds).

While net interest margins and profitability would be under
pressure as deposits continue to be repriced ahead of loans in
the rising interest rate scenario, investment in technology has
improved SBI's competitiveness and its ability to take advantage
of the growth in the Indian economy through the improved
delivery of a wider range of products.  In addition, SBI's fee
income base is one of the highest among government banks.

SBI's Support rating reflects its huge systemic importance and
its position as India's largest bank with a market share of
about 20% of banking assets.  Fitch believes that confidence in
the Indian banking system would collapse if SBI fails and
therefore the agency believes that government support is
virtually assured.  Given its size, SBI dominates the interbank
money market in India, and its network of over 9,000 branches
(largest among Indian banks) ensures a leading market share of
government business.


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

ALCATEL-LUCENT: Enters Into Softbank Mobile Access Network Deal
---------------------------------------------------------------
Alcatel-Lucent revealed that it has entered into an agreement to
provide the Japanese telecommunications service operator
Softbank Mobile with a high-speed mobile access network.  The
agreement strengthens Alcatel-Lucent's position in the Japanese
market while enabling Softbank to extend the reach and capacity
of its network to indoor users and tap new market opportunities.

Under the terms of the agreement Alcatel-Lucent will deploy a 3G
UMTS/HSDPA solution that will complement Softbank's current
mobile voice service offer and enhance its broadband service
portfolio.

The UMTS/HSDPA solution is designed especially for indoor and
deep indoor coverage enabling subscribers in office buildings
and residences to take advantage of innovative wireless services
such as video conferencing, mobile TV, and high-speed mobile
Internet access.  The network will comprise thousands of pico-
cells that are smaller in radius and coverage area than standard
cells, but offer improved signal strength and supports delivery
of higher data rates than those currently available.

The solution takes advantage of complementary UMTS radio access
network components that come both from the former Alcatel and
Lucent companies as well as through a recent acquisition of
assets from Nortel.

The proposed solution provides a number of advantages, most
significantly:

   * Improved performance from low-powered cells deployed in
     close proximity to users without requiring expensive
     indoor antenna arrays.

   * The opportunity for Softbank to bundle fixed/mobile
     services in solutions for corporate customers.

In the longer term, Softbank is considering deployment of a
larger scale in-building solution that is based on pico cells
and involves transformation to an all IP-based network.  
Softbank can take advantage of Alcatel-Lucent's proven expertise
and capabilities in IP transformation to reduce operating
expenses.  Softbank will also be able to realize the inherent
cost efficiencies that derive from using an IP-based network for
the distribution of indoor cells and from the elimination of
antenna tower leasing expenses and reduced operational overhead.
"Our users have been telling us that whether they're at home or
in the office they want excellent network coverage and access to
higher data rates to support innovative applications.  This
solution gives us a way to satisfy that demand," said Mr.
Miyakawa, CTO of Softbank Mobile.  "We have added Alcatel-Lucent
as a new partner because of the depth of their experience and
their proven track record in delivering innovative wireless
solutions," he added.

"Japan is a key strategic market for Alcatel-Lucent," said
Frederic Rose, President of Alcatel-Lucent Asia Pacific. "This
agreement with Softbank is a clear vote of confidence for our
mobile data solutions and unequivocal evidence of our growing
presence in Japan.  It also demonstrates the combined strength
of the merged company in being able to provide customers with
industry-leading fixed and mobile solutions and cutting-edge
innovation," he stated.

                   About in-building coverage

UMTS and more specifically HSDPA is all about providing high
Quality of Service and High Data throughput.  This become
particularly challenging when it comes to in-building coverage.
According to many analysts, between 60% and 70% of the traffic
generated by wireless subscribers is initiated from indoor
coverage, with a significant proportion coming from business
users.  Deploying pico cells will not only boost mobile operator
revenues, it will also decrease the Total Cost of Operating
their Radio Access networks by significantly offloading the
existing macro layer, removing network congestion, decreasing
the need for capacity extension as well as deployment of new
macro sites.

                         About HSDPA

The HSDPA (High Speed Downlink Packet Access) standard marks a
similar leap forward for WCDMA and UMTS as EDGE does for GSM in
terms of data transmission speed and capacity, essential for 3G
evolution.  Current field-proven 3G downlink speeds of about 384
kbps (up to 2 Mbps possible according to standards) will be
boosted to 14Mbps (maximum value according to standards) with
the first-generation HSDPA systems, enabling operators to
support a considerably larger number of high data-rate users on
a single radio carrier and ensure data-hungry subscribers get
the best experience with innovative and existing multimedia
services.

                        About Softbank:

Softbank Group is the holding company for several businesses
linked to Internet culture, technology services and e-commerce.
Three companies are at the core of the operation: Softbank BB
for broadband infrastructure, Softbank Telecom for fixed
communication and Softbank Mobile for mobile telecommunication
business.

                       About Alcatel-Lucent

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

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

                          *     *     *

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

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

   -- Senior unsecured debt to BB from BBB-.

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

The Rating Outlook for Alcatel-Lucent is Stable.

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

   -- Issuer Default Rating BB-;

   -- Senior unsecured debt BB-;

   -- Convertible subordinated debt B; and

   -- Convertible trust preferred securities B.

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

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

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

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

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


ALCATEL-LUCENT: Provides GPON Solution To Jonkoping Energi
----------------------------------------------------------
Alcatel-Lucent revealed that it has provided, together with its
systems integration partner Fiberdata, an advanced fiber access
solution to Jonkoping Energi, a Swedish electric company.  
Alcatel-Lucent's gigabit passive optical networking solution is
allowing Jonkoping Energi to deliver triple play services while
realizing the benefits of increased reliability and lower
maintenance expenses.

Recent Alcatel-Lucent GPON successes include incumbent operators
such as Singtel and Verizon, as well as local community projects
in the U.S. and the Nordics.  This is one of the first utility
providers in Sweden to reveal a GPON fiber access solution, with
initial deployments begun in the fourth quarter of 2006.

"We are confident that together with Alcatel-Lucent, we are
offering to our customers a solution that is unmatched in the
industry," said Lars Hellberg, CEO, Fiberdata.  "Alcatel-Lucent
is unique as leader in access products and as a provider of an
end-to-end triple play service delivery solution, is making
triple play a reality for our customers."

"There is an increasing adoption of GPON all over the world,
with incumbents as well as local communities selecting it as key
access architecture.  We are currently involved in more than 40
FTTx projects worldwide, 17 of which are GPON," said Dirk Van
den Berghen, head of Alcatel-Lucent's access network activities.
"Alcatel-Lucent has led the industry from technology
innovations to standardization.  We are a key member of the FSAN
standards body and a major contributor to the GPON standards.
Our innovation and expertise demonstrate our commitment to
delivering a long-term strategic advantage to our customers and
their access networks."

Jonkoping Energi is deploying the Alcatel-Lucent 7342 ISAM FTTU,
the world's first standards-compliant GPON system.  The Alcatel-
Lucent 7342 ISAM FTTU is a robust solution that extends the
bandwidth potential of fiber from the network core to the
subscriber premise.

Chosen by more than 125 service providers worldwide, the
Alcatel-Lucent ISAM family of products is specifically designed
to minimize complexity and ensure profitability as service
providers transform their broadband access networks to support
full triple play service adoption.  Together, Alcatel-Lucent and
Fiberdata have delivered broadband access and MPLS solutions
into more than 35 networks in Sweden.

                      About Jonkoping Energi

Jonkoping Energi is the local utility in Jonkoping area (300km
south of Stockholm).  Jonkoping Energi not only supplies energy
and energy services, but also broadband access to the
inhabitants and companies in the region.  The network is based
on a fiber infrastructure, and is operated as  "open network"
where several ISPs are delivering their services.

                         About Fiberdata

Fiberdata's business idea is to provide communications solutions
that fulfill high requirements for performance, security,
operational stability and cost-effectiveness.  Fiberdata aims
primarily at companies and organizations on the Swedish market.
Fiberdata AB was established in 1982, and is part of external
linkThalamus Networks since the 1st of September 2002.  The
company has a presence in fifteen locations in Sweden.  
Fiberdata is a leading supplier of nation-wide, scaleable
communications solutions.  Fiberdata's strategy is to offer
customer-specific solutions which are based on open standards.
The product portfolio has been selected on a "best in class"
basis, in which the products and suppliers selected are regarded
as representing the best features and solutions in each area of
application.  In addition, Fiberdata offers consulting services
for planning, implementation, support and training.

                       About Alcatel-Lucent

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

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

                          *     *     *

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

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

   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.

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

   -- Issuer Default Rating BB-;

   -- Senior unsecured debt BB-;

   -- Convertible subordinated debt B; and

   -- Convertible trust preferred securities B.

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

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

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

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

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


ANIXTER INT'L: Net Income Increases to US$52.4MM in 4th Quarter
---------------------------------------------------------------
Anixter International Inc. disclosed financial results for the
quarter and year ended Dec. 29, 2006.

Fourth Quarter Highlights

   -- Sales of US$1.30 billion, including US$23.5 million from
      the acquisitions of IMS Inc. in May 2006 and MFU Holdings
      S.p.A. in October 2006, rose 27% compared to sales of
      US$1.03 billion in the year ago quarter.

   -- Quarterly operating income of US$90.4 million reflected a
      65% increase from the US$54.7 million reported in the
      fourth quarter of 2005.

   -- Net income in the quarter increased 160% to US$52.4
      million from US$20.1 million in last year's fourth
      quarter.  In the current quarter the company recorded net
      income of US$4.2 million primarily related to tax benefits
      associated with its foreign operations.  During last
      year's fourth quarter, the company recorded an incremental
      tax provision of US$7.7 million related to the
      repatriation of accumulated foreign earnings under the
      American Jobs Creation Act.

Robert Grubbs, President and CEO, said, "Strong fourth quarter
results completed a series of record-setting quarters leading to
a record year in terms of sales and earnings.  While solid
underlying conditions in all of the markets we serve enhanced
this performance, it was our consistent execution of our
strategy to expand our product and service offerings that drove
the all-time results.  In 2007, we will continue to focus on
improving our operating performance by consistently providing
customers with the products and services they value in each of
the end markets we serve."

Fourth Quarter Results

For the three-month period ended Dec. 29, 2006, sales of
US$1.30 billion produced net income of US$52.4 million.  
Included in the current year's fourth quarter results were sales
of US$23.5 million from the acquisitions of IMS and MFU in May
and October 2006, respectively.  The current quarter includes
net income of US$4.2 million primarily related to tax benefits
associated with its foreign operations.  Included in the net
income associated with these tax benefits is US$800,000 of
interest expense that is reflected as a part of the other, net
line in the accompanying income statement.

In the prior year period, sales of US$1.03 billion generated net
income of US$20.1 million.  The year ago quarter included an
incremental tax provision of US$7.7 million related to the
repatriation of accumulated foreign earnings under the American
Jobs Creation Act.

Operating income in the fourth quarter increased 65% to
US$90.4 million as compared to US$54.7 million in the year ago
quarter.  For the latest quarter, operating margins were 7% as
compared to 5.3% in the fourth quarter of 2005.

Twelve-Month Results

For the twelve-month period ended Dec. 29, 2006, sales of
US$4.94 billion produced net income of US$209.3 million.  When
compared to the twelve months of the prior year, 2006 sales were
favorably affected by US$191.2 million related to the
acquisitions of Infast in July 2005, IMS in May 2006 and MFU in
October 2006.

In addition to the previously discussed tax benefits recorded in
this year's fourth quarter associated with the company's foreign
operations, the twelve-month results include US$22.8 million, or
53 cents per diluted share, of income primarily associated with
a refund from the U.S. Internal Revenue Service.  This refund
was the result of the final settlement of income taxes covering
the period of 1996 through 1998.  The interest income portion of
this settlement of US$7.7 million (after-tax impact of
US$4.7 million) is reflected on the income statement in the
other, net line.  The remaining portion of the settlement is
recorded as an US$18.1 million reduction to the tax provision.

In the prior year period, sales of US$3.85 billion produced net
income of US$90 million.  The results in 2005 were negatively
affected by the incremental tax provision related to the
repatriation of foreign earnings, as described above.

Operating income for the twelve months of fiscal 2006 increased
78% to US$337.1 million as compared to US$189.4 million in the
year ago period.  Operating margins in the twelve months of 2006
were 6.8% as compared to 4.9% in the prior year period.

                 Fourth Quarter Sales Trends

Commenting on fourth quarter sales trends, Mr. Grubbs said,
"Sales in the fourth quarter grew at a year-over-year organic
rate of 22% after adjusting for the IMS and MFU acquisitions and
the favorable foreign exchange impact of US$25.3 million.  This
growth rate clearly exceeded our target of 8 to 12%, as we again
saw very strong customer demand across a broad mix of our
business."

Mr. Grubbs continued, "The factors driving our organic growth
were consistent with those we have seen the past few quarters.  
In the most recent quarter, we again saw very strong larger
project business, particularly as it relates to data center
builds in the enterprise cabling market and energy and natural
resources customers within the electrical wire & cable market.  
At the same time, we have continued to experience strong growth
in the security and OEM markets.  Lastly, copper prices
continued to contribute to our organic growth in the most recent
quarter.  During the quarter, market-based copper prices
averaged approximately US$3.20 per pound, compared to US$2.03
per pound in the year ago fourth quarter and US$3.54 per pound
in the third quarter of 2006.  We estimate that the higher
copper prices accounted for US$58.4 million of our year-on-year
quarterly increase in sales within the electrical wire & cable
market.  After taking out the estimated impact of copper prices,
the IMS and MFU acquisitions and foreign exchange, however, we
were still able to grow sales by 16% over the prior year fourth
quarter."

"Specifically, in North America we saw year-over-year sales grow
by 23% to US$918.5 million in the most recent quarter.  In
addition to strong end-market demand, North American sales were
up US$4.8 million due to the stronger Canadian dollar,
US$12.5 million from the acquisition of IMS, and higher copper
prices added US$53.6 million," commented Mr. Grubbs.  "In
Europe, we saw sales climb by 38% compared to the year ago
quarter.  Driving this sales growth were positive exchange rate
differences of US$19.9 million, the October 2006 acquisition of
MFU that added US$10.9 million, and higher copper prices that
added US$4.8 million to the electrical wire & cable business
sales.  Without exchange rate differences, acquisitions, and
copper price benefits, sales in Europe still grew organically by
20% compared to the year ago quarter."

"In the emerging markets of Latin America and Asia Pacific, we
saw a 33% increase in year-on-year sales, with a negligible
impact from currency exchange rate.  Growth was particularly
strong in Asia Pacific, which rose over 50% year-on-year,"
continued Mr. Grubbs.

             Fourth Quarter Operating Results

"As a result of very strong sales growth, fourth quarter
operating margins were 7% compared to 5.3% in the year ago
period," said Mr. Grubbs.  "In North America, the 23% sales
growth drove better operating leverage, which generated
operating margins of 8.2% compared to 6.5% in the prior year
fourth quarter.  While strong market conditions and market gains
were the primary drivers of the sales growth and improved
profitability, copper prices again played a meaningful part in
the strong fourth quarter operating results.  As noted, copper
prices added an estimated US$53.6 million to North American
electrical wire & cable sales, which added an estimated
US$9.2 million to fourth quarter operating income as compared to
the year ago quarter."

Mr. Grubbs added, "In Europe, operating margins in the most
recent quarter were 2.6% as compared to 1.2% in the year ago
quarter.  This significant improvement in operating margins
reflects the cost leverage we derived from strong organic sales
growth.  Operating results in the quarter did benefit marginally
from higher copper prices, which added an estimated US$400,000
to operating income and 10 basis points to operating margins.
At the same time, operating expenses in the current quarter
included US$1.3 million for the relocation and consolidation of
several facilities and a restructuring of certain pension plans.  
We anticipate that additional expenses for relocation and
consolidation of facilities will be incurred in coming quarters
as we rationalize the infrastructure associated with companies
we have acquired in the past few years.  We are encouraged by
our results, but as we noted in the third quarter, maintaining
consistent organic sales growth will remain a challenge."

"Fourth quarter operating margins in the Emerging Markets were
7.2% as compared to 4.5% in the year ago quarter.  Continued
sales growth throughout these markets once again allowed us to
leverage costs and improve operating margins," Mr. added Grubbs.

                    Cash Flow and Leverage

"In the fourth quarter we generated cash from operations of
US$17 million," said Dennis Letham, Senior Vice President-
Finance.  "Despite this positive cash flow from operations our
borrowings in the fourth quarter increased as a result of the
October acquisition of MFU.  Importantly, during 2006 we were
able to fund our increased working capital needs, complete three
acquisitions for total consideration of US$90.5 million all
while improving our debt leverage ratio.  At the end of the
fourth quarter debt-to-total capital was 45.7% down from 47% at
the end of last year."

"For the fourth quarter our weighted average cost of borrowed
capital was 5.4% compared to 5.0% in the year ago quarter.  At
the end of the fourth quarter, 56% of our total borrowings of
US$809.3 million were assigned fixed interest rates, either by
the terms of the borrowing agreements or through hedging
arrangements.  We also had US$140.5 million of available, unused
credit facilities at Dec. 29, 2006.  This provides the resources
and flexibility to support continued strong organic growth and
to pursue other strategic alternatives, such as acquisitions, in
the coming quarters."

                       Business Outlook

Mr. Grubbs concluded, "2006 was a record-setting period of
revenue growth and operating profitability for Anixter.  This
record performance was the result of strong underlying market
fundamentals, solid progress on our strategic initiatives to
build our security and OEM business, additions to our supply
chain service offering, and an expanded product offering and
favorable copper prices.  As we enter 2007, our ability to
continue executing on our strategic initiatives, together with
further progress on the integration of recent acquisitions, will
be the keys to our success."

"The market fundamentals that underlie the positive trends of
the past few quarters appear to remain firmly in place.  The one
exception to this view is with respect to copper prices.  While
we anticipate copper prices will remain above long-term price
trends, we expect that with the exception of the first quarter,
quarterly average prices in 2007 will be below the levels
experienced in 2006.  Despite this copper price expectation, we
believe the market fundamentals and our growth strategies will
once again combine to generate full-year organic sales growth
within our target of 8 to 12%."

                          About Anixter

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

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

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

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

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

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

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

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

  Anixter:

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

  AI:

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

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


BANK CENTRAL ASIA: Aims to Provide IDR10 Trillion in New Loans
--------------------------------------------------------------
PT Bank Central Asia Tbk is targeting new loans to amount to
around IDR10 trillion in 2007, Tempo Interactive reports.

According to Tempo Interactive, it is estimated that the total
growth in loans will amount to 18%.

The report cites BCA Director Suwignyo Budiman as saying that
the bank's 2007 target was higher compared to last year's loan
growth of 13% and the total loan disbursement of
IDR7.5 trillion, adding that 2006 was in fact a little slow.

Mr. Budiman added that the slow loan disbursement in 2006 was
due to the impact of oil price rises that resulted in a
reduction in public purchasing power, the report notes.
Mr. Budiman said that loan disbursement went down by around 20%
compared to 2005 and that total undisbursed loans were still
quite high.

According to Mr. Budiman, undisbursed loan throughout last year
reached 25% of the total ceiling that has been agreed upon, or
IDR5 trillion, adding that the total ceiling was around
IDR20 trillion, Tempo relates.

The report points out that Mr. Budiman was reluctant to reveal
the composition of BCA's loan distribution for this year in
detail, and that the bank is carrying out efforts so that loan
distribution is equal in all business sectors.

Mr. Budiman said that they won't focus on one sector, but
instead will try it to be equal, noting that it also depends on
demand, and based on last year's experience more loan demand
came from the trade sector, the report says.

Tempo notes that Mr. Budiman said that for this year, it is
estimated that consumer loan demands will be more dominant,
adding that there are new loan demands, in particular house
ownership loans amounting to between IDR2 trillion and
IDR3 trillion, as well as loans from credit cards, which are
estimated to reach IDR1.6 trillion.

Mr. Budiman said that every year, credit cards grow from 30 to
40%, Tempo points out.

Mr. Budiman said that BCA would implement new methods to achieve
this year's loan disbursement target by optimizing cooperation
in financing with agents, dealers or sub-dealers, adding that
they will give small business credit facility with technology so
that payment transactions from agents are easier.

Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk
-- http://www.klikbca.com/-- offers individual and business  
products and services.  The bank's individual services consist
of savings accounts, home loans and car loans, remittance,
collection and safe deposit facilities.  The bank's business
services consist of working capital loans, investment loans and
bank guarantee for small and medium-sized enterprises.  In
addition, it provides export import facilities such as letters
of credit, negotiation and discounting.  The bank's subsidiaries
include PT BCA Finance, BCA Finance Limited and BCA Remittance
Limited.  It has 772 branches in Indonesia, Singapore and New
York, 42,958 EDCs and operates 4,425 ATMs.  The bank serves 6.6
million accounts throughout Indonesia.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that Fitch Ratings has affirmed all the ratings of Bank
Central Asia as follows:

   * Long-term foreign currency Issuer Default rating: 'BB-'

   * Short-term foreign currency rating: 'B'

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

   * Individual: 'C/D' and

   * Support: '4'.

The Outlook for all the ratings is Stable.


CORUS GROUP: Fitch Keeps 'BB-' IDR On Watch Negative
----------------------------------------------------
Fitch Ratings said that Corus Group Plc's Issuer Default 'BB-'
and Short-term 'B' ratings remain on Rating Watch Negative
following a recommended bid, valued at GBP6.2 billion, from
India-based Tata Steel Limited in the wake of an auction process
conducted by the UK Takeover Panel on 30-31 January 2007.  The
RWN also applies to the 'B+' ratings on CS's EUR800 million 7.5%
senior notes and Corus Finance Plc's GBP200m 6.75% guaranteed
bonds.

"The increased absolute level of debt associated with Tata
Steel's revised offer increases the risk of CS's ratings being
downgraded," says Peter Archbold, Director of Fitch's EMEA
Industrials team.  Tata Steel's revised GBP6.2bn offer
represents a 32% increase on its December 2006 offer of
GBP4.7bn, and a 44% increase on its original October 2006 offer
of GBP4.3bn.  Fitch notes that the proposed acquisition multiple
of 9x based on LTM Q306 continuing EBITDA is materially higher
than other recent transactions' multiples in the steel sector.
Tata Steel indicated in its statement today that it will raise
additional debt and make a further cash contribution under its
new offer.  Based on previous funding plans Fitch expects the
new debt to be raised by the acquisition vehicle -- Tata Steel
UK Limited -- which will not benefit from any credit support
provided by Tata Steel, its parent entity, but be dependent on
CS's standalone cash flows for debt service.

Fitch continues to view that a tie-up with Tata Steel would be
positive for CS's operational profile.  However, it remains
uncertain to what extent operational benefits, such as the
ability to access cheap semi-finished steel from Tata Steel's
Indian operations, will be reflected in an improvement in its
financial metrics.  Fitch notes that currently there are some
limitations on the export of iron ore from India.

CS's ratings were placed on RWN on 20 October 2006 following
disclosure of the ring-fenced nature of Tata Steel's acquisition
financing arrangements.  Previously, on 18 October 2006, Fitch
had assigned a Rating Watch Positive on the expectation that a
combined CS / Tata Steel would have a stronger operational
profile and higher margins compared to CS on a standalone basis.
Fitch will resolve the Rating Watch following greater clarity on
the structure of the financing arrangements of the revised
offer, further details regarding the level of synergies and
operational benefits that could accrue, and the closure of the
deal, which is expected in mid-March 2007.

CS is the world's ninth largest steel maker with production of
18.2 million tonnes and revenue of GBP10.1bn in FY05.  Tata
Steel is the second-largest Indian steel maker with crude steel
capacity of 7.2 million tonnes and 2006 revenues of INR202 bn
(GBP2.6bn).

                       About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.   It also manufactures
primary aluminum products.  Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.


CORUS GROUP: Tata Steel Outbids CSN with GBP5.7 Billion Bid
-----------------------------------------------------------
Tata Steel Ltd. won an auction for Corus Group Plc over
Companhia Siderurgica Nacional after offering investors 608
pence per share in cash, or GBP5.7 billion (US$11.3 billion),
Debarati Roy and Claudia Carpenter write for Bloomberg News.

According to the British Takeover Panel, Tata outbid CSN's final
offer of 603 pence per share.

The auction started at 4:30 p.m. in London on Tuesday.

CSN and Tata were eyeing to buy Corus as they seek to become
significant players in the consolidating steel industry, Reuters
relates.

Bloomberg says the acquisition will enable Tata to add finishing
mills in Europe that supply automakers Ford Motor Co. and Volvo
AB to plants in India.

Moody's Investors Service and Standard & Poor's, however, warned
to lower Tata's debt rating.

"While the Corus acquisition would greatly enhance Tata's scale,
the size of the transaction would represent a substantial
financial challenge," Moody's Investors Service said.  "The
current resultant high leverage, on a consolidated basis, will
likely test the company's financial strength."

As previously reported in the TCR-Europe on Jan. 29, the auction
process requires a difference of at least five pence for each
round of the bid.

If a competitive situation continues to exist, a final round
would be held to give a chance to the offerors to outbid the
other within a ceiling approved by the panel.

The European Commission previously cleared CSN's proposed
GBP4.9-billion takeover bid for Corus.

According to the commission, a CSN takeover would not hurt
competition in Europe as the companies have only limited
overlaps for semi-finished and finished carbon steel products.

Overlaps were "below a level where the companies could affect
either the total quantity or the prevailing price in the
market," the commission said.

The British takeover regulator cleared Tata Steel's bid for
Corus last month.

                            CSN Bid

As reported in the TCR-Europe on Dec. 13, 2006, CSN increased
its purchase offer for Corus to $9.6 billion or 515 pence a
share, topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a GBP4.35 billion of debt underwritten by
Barclays Plc, ING Groep NV and Goldman Sachs Group Inc.,
Bloomberg says, citing Chief Financial Officer Otavio Lazcano as
saying.  Meanwhile, Companhia Siderurgica promised to pay
GBP138 million to fund the deficit in the Corus Engineering
Steels Pension Scheme, Bloomberg says.  Also, the steelmaker
will raise the contribution rate on the British Steel Pension
Scheme to 12% from 10% until March 31, 2009.  The company's
success in acquiring Corus hinges on the unions' support,
according to published reports.

                           Tata Offer

As reported in the TCR-Europe on Dec. 11, 2006, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.

Tata Steel is advised by:

         NM Rothschild & Sons Ltd.
         New Court, Saint Swithin's Lane
         London EC4P 4DU United Kingdom

              -- and --

         Deutsche Bank AG
         Taunusanlage 12
         60262 Frankfurt Am Main
         Germany

              -- and --

         ABN Amro Holding NV
         Hansalaya Building
         15, Barakhamba Road
         New Delhi 110001

Corus Group is advised by:

         Credit Suisse Group
         One Cabot Square
         London E14 4QJ

              -- and --

         JPMorgan Cazenove
         20 Moorgate
         London
         EC2R 6DA
         United Kingdom

             -- and --

         HSBC Holdings Plc
         8 Canada Square, Level 4
         London E14 5HQ
         United Kingdom

Companhia Siderurgica is advised by:

         Lazard Ltd.
         Signatura Lazard
         Av. Brigadeiro Faria Lima
         2277 8, Andar
         SP 01452-000

             -- and --

         Goldman Sachs Group Inc.
         85 Broad Street
         New York, NY 10004
         
             -- and --

         UBS AG
         Avenida Brigadeiro Faria Lima
         3729 8 9 e 10, Andar
         Jardim Paulista
         SP 04538-133

             About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and    
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                        About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.   It also manufactures
primary aluminum products.  Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.

In March 2006, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating for Corus Group on
CreditWatch.

At the same time, Fitch Ratings changed Corus Group's outlook
to Positive from Stable and affirmed its Issuer Default Rating
at BB-.


CORUS GROUP: S&P Holds Developing CreditWatch on BB Rating
----------------------------------------------------------
Standard & Poor's Ratings Services kept its 'BB' long-term
corporate credit rating on U.K.-based steelmaker Corus Group PLC
on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.

This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.

At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications.  The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.

All ratings were placed on CreditWatch on Oct. 18, 2006,
following the dislocure of an initial bid by Tata Steel.

"The CreditWatch status of Corus reflects ongoing uncertainty
regarding the long-term financial structure of the transaction
and its implications for Corus," said Standard & Poor's credit
analyst Tatiana Kordyukova.

Standard & Poor's understands that Tata Steel has arranged
bridge financing for the acquisition, but as the ultimate
financial structure is unknown, the ratings on Corus could be
affected positively or negatively.

Tata Steel previously announced that part of the acquisition
financing would use nonrecourse debt that would be serviced by
Corus' cash flows.  Absent adequate support from Tata Steel,
this could lead to a downgrade of Corus.

Standard & Poor's note that the materially increased acquisition
price has reduced the upside potential for Corus' ratings.  The
debt burden of the combined entity is likely to increase
following completion of the transaction, implying lower
ability and incentives for Tata Steel to support Corus.

Nevertheless, under certain scenarios, the combined entity might
be rated higher than the current rating on Corus.  If there is
sufficient evidence that Tata Steel will provide financial
support to Corus, the ratings on Corus could be raised.

Furthermore, integration with Tata Steel's low-cost operations
might benefit Corus' weak business profile in the medium term.

"In resolving the CreditWatch placement, we will seek further
details on the new entity's long-term financial structure and
integration plans," added Ms. Kordyukova.

Standard & Poor's will also consider whether Corus' weak
business risk profile will be enhanced, and whether Tata Steel
would be likely to support Corus in case of financial
difficulty.

                        About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.   It also manufactures
primary aluminum products.  Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.

In March 2006, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating for Corus Group on
CreditWatch.

At the same time, Fitch Ratings changed Corus Group's outlook
to Positive from Stable and affirmed its Issuer Default Rating
at BB-.


FOSTER WHEELER: Unit Secures Steam Generator Pact from Longview
---------------------------------------------------------------
Foster Wheeler Ltd. disclosed that a subsidiary within its
Global Power Group has been awarded a contract from Longview
Power, LLC for the design and supply of a supercritical once
through pulverized coal steam generator.  The generator is for
Longview's coal-fired generating facility located in Monongalia
County, West Virginia.  Longview is a 100 percent-owned
subsidiary of GenPower Holdings, L.P., which is jointly owned by
GenPower, LLC and First Reserve Corporation.  The Longview plant
will be one of the largest private investments in the history of
West Virginia.

Foster Wheeler has received an immediate limited notice to
proceed.  The value of this limited notice to proceed, which
will be included in Foster Wheeler's first-quarter 2007
bookings, was not disclosed.  The total contract, which is
valued at approximately US$200 million, calls for Foster Wheeler
to provide Longview with a 695 (net) megawatt electric state-of-
the-art PC steam generator utilizing Siemens advanced BENSON
vertical tube supercritical steam technology.  The steam
generator will fire local bituminous coal from the adjacent
MEPCO coal mine and provide steam to a single supercritical
reheat turbine.  The advanced supercritical steam technology
will produce electricity very efficiently making this plant one
of the cleanest solid fuel plants in the nation.  Construction
of the boiler is expected to begin in the spring of 2007, with
commercial operation of the plant scheduled for the spring of
2011.

"We are pleased to accept this strategic award.  This new power
plant represents a win for U.S. energy security, the environment
and the West Virginia economy while underscoring our client's
confidence in this advanced, clean, fuel-efficient steam
generator technology," said Gary Nedelka, chief executive
officer of Foster Wheeler North America Corp.  "This is another
example of Foster Wheeler's commitment to supply cost-effective
twenty-first century solutions to support our clients in the
power industries."

"We are very excited to commence construction of the Longview
plant in West Virginia," said Bob Place, CEO of GenPower
Holdings.  "Longview will be a state-of-the-art facility
producing approximately 700 MW of clean, coal-fired energy to
the region.  In addition, construction and operation of the
facility will provide highly skilled employment opportunities to
West Virginia and Monongalia County in particular."

With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of  
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services.  Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.

The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand, and Vietnam.

                          *     *     *

On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.

                  
FOSTER WHEELER: Elects Franco Baseotto as Vice President & CFO
--------------------------------------------------------------
Foster Wheeler Ltd. revealed that its board of directors has
elected Franco Baseotto to the position of executive vice
president and chief financial officer, effective August 13,
2007.  John T. La Duc, who currently holds this role, was
elected to this position in April 2004.  Mr. La Duc has agreed
to extend his current contract to continue in this position
until August 2007 and to work closely with Mr. Baseotto to
ensure a smooth transition.  Upon assuming his new position in
August 2007, Mr. Baseotto will report directly to Raymond J.
Milchovich, chairman and chief executive officer.

"Franco is a highly talented and widely respected individual. In
his current role as financial leader of our Global Engineering
and Construction Group, and chief financial officer of our
Global E&C Group's Continental Europe business unit, he has
proven that he is eminently well-qualified to assume this
position," said Mr. Milchovich.  "Franco has been with Foster
Wheeler for sixteen years.  He has worked in Europe and in North
America and has developed an in-depth knowledge of all aspects
of finance and accounting, the contracting business, and our
Company at a corporate and operational level.  I am highly
confident that Franco will continue to deliver the same
commitment and success in his new role.

"John La Duc joined Foster Wheeler at a very critical time for
this Company and I would like to thank him for his energy,
commitment and outstanding contribution to its successful
transformation.  I am delighted that John has agreed to extend
his contract with Foster Wheeler to work with Franco to ensure a
smooth and successful transition."

With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of  
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services.  Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.

The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand, and Vietnam.

                          *     *     *

On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


HILTON HOTELS: Fitch Upgrades IDR to 'BB+'; Outlook to Positive
---------------------------------------------------------------
Fitch Ratings has upgraded the debt ratings for Hilton Hotels
Corporation as follows:

   --Issuer Default Rating (IDR) to 'BB+' from 'BB';

   --Senior credit facility to 'BB+' from 'BB';

   --Senior notes to 'BB+' from 'BB';

The ratings apply to its US$5.75 billion credit facility and
roughly US$2.6 billion of its senior notes.  Fitch has also
revised Hilton's Rating Outlook to Positive from Stable.

The ratings upgrade reflects Hilton's indicated and demonstrated
commitment to delever following the acquisition of the Hilton
International assets in February 2006.  Fueled by roughly US$1.5
billion of asset sales since the closing of the transaction
through the end of 2006, Hilton improved its adjusted leverage
ratio from 5.0 times (x) at March 31, 2006 to an estimated 4.2x
as of Dec. 31, 2006.  At the same time, adjusted coverage
increased from 3.0x as of March 31, 2006 to an estimated 3.3x as
of Dec. 31, 2006.  The pace of asset sales since the acquisition
has been faster than Fitch anticipated following the transaction
and Hilton retained long-term management/franchise agreements on
most of the properties.  While the current credit metrics remain
somewhat weak for the rating category, Fitch expects further
deleveraging in 2007 driven by additional asset sales in a
vibrant lodging asset demand environment and a continued strong
operating environment.  These factors are incorporated into
Hilton's Positive Rating Outlook.

           Asset Sales Could Accelerate Deleveraging

Adjusted leverage could decline to less than 4.0x by the end of
2007 with no asset sales, but Fitch expects that improvement
could be accelerated given the current demand environment for
lodging assets primarily by real estate investment trusts and
private equity firms.  In the latest example of numerous
transactions over the past 12-24 months, CNL Hotels & Resorts
Inc. revealed on Jan. 19 that it had agreed to be acquired by
Morgan Stanley's Real Estate Group for US$6.6 billion with
Ashford Hospitality Trust Inc. acquiring some of the assets as
part of the transaction.  Furthermore, European hotel asset
demand could be bolstered by the introduction of REITs this year
in the UK and possibly Germany.

Hilton currently has the Scandic brand for sale, which includes
roughly 130 hotels and 23,000 rooms and accounted for roughly
45% of proforma 2006 leased profit.  Also currently for sale are
17 owned hotels or 6,500 rooms, which accounted for roughly 15%
of proforma 2006 owned profits.  An additional 30 owned hotels
10,000 rooms accounting for roughly 25% of proforma 2006 owned
profits could be put on the market down the road, roughly half
of which could be sold in the next one-to-three years.  Fitch
believes the negotiations for the sale of Scandic are
progressing very well and believes a transaction could be
completed possibly by first quarter-2007 (1Q'07), but more
likely by the end of 2Q'07.  First or second round bids have
been received for 14 of the 17 properties for sale and Scandic.
Furthermore, Hilton is required to pay down some of its credit
facility when certain assets are sold.

Strong Industry Operating Environment Continues to Provide
Tailwinds:

The lodging industry is poised to benefit from continued
positive fundamentals with strong demand and limited supply
growth of less than 2% in 2007.  While Fitch expects the overall
economy to continue to slow in 2007 (Fitch forecasts 2.4% real
U.S. gross domestic product [GDP] growth, down from 3.2% in
2006), the outlook for the business sector remains healthier
than that of the consumer sector, which bodes well for the
lodging companies since their operating environment is more
sensitive to the business economy.  Industrywide RevPAR gains
are expected to continue in the mid-to-high single-digit range
over the next two-to-three years, below the low double-digit
gains in 2006 but very solid nonetheless.  The RevPAR gains are
likely to be driven by rate rather than occupancy in 2007, which
should drive stronger margins since rate-driven RevPAR gains
don't carry the additional operating costs of occupancy-driven
RevPAR gains.

On its 4Q'06 earnings release, Hilton raised its 2007 RevPAR
growth assumptions indicating the operating environment remains
robust.  In 2007, Hilton projects the strong supply/demand
environment to drive 14-16% growth in its management/franchise
fees and RevPAR growth of 9-11% with margins increasing 125-175
basis points. Its leased portfolio is expected to show slightly
slower RevPAR growth of 8-10% with margins increasing 30-70
basis points (bps) in 2007.

                Off-Balance Sheet Debt Exposure

Following the HI acquisition, Hilton increased its exposure to
the leased hotel segment and as a result gained a significant
amount of off-balance sheet debt and non-recourse, on-balance
sheet debt primarily in the form of leases.  Fitch believes that
many of the leases will be sold with the Scandic brand in the
next few months.  Furthermore, Hilton reports nearly US$300
million in operating leases in its financial statements, which
equates to roughly US$2.4 billion of adjusted debt However, the
actual exposure is likely much lower than that, as Hilton and
its banks have agreed to a lower lease adjustment in its
adjusted leverage calculations.
   
                    Management Track Record:

Also incorporated into the rating upgrade and Positive Outlook
is management's track record of executing on a plan to get back
to investment grade.  Following the travel disruptions brought
on by the events of Sept. 11, 2001, Fitch downgraded Hilton's
credit ratings in 2002 to below investment grade.  Hilton
subsequently suspended its share repurchase program and focused
on reducing debt and improving the credit profile, which
resulted in an upgrade to investment grade in 2004 as the travel
environment recovered.  Following the HI transaction last year,
management again suspended share repurchase activity and
dividend increases and has indicated a target adjusted leverage
ratio of 3.5x.

Fitch believes that Hilton will restart its share repurchase
program at some point within the next 12-24 months if asset
sales and the operating environment proceed as expected.  Hilton
has 44.7 million shares authorized for repurchase and management
was continually challenged by equity shareholders at its recent
analyst day in December to adopt a more shareholder-friendly
capital allocation policy.  Furthermore, Marriott and Starwood
are both actively buying back shares.

                Rating Outlook Considerations:

Fitch's rating upgrade incorporates management's track record
that is again being demonstrated through the asset sale and
deleveraging execution since the HI transaction.  The Positive
Outlook incorporates an expectation that balance sheet
improvement remains a priority in the near term, that management
continues to execute on its asset sale/deleveraging plan, and
that the strong demand environment remains intact.  A further
upgrade to an investment grade rating will be considered as the
company makes substantial progress toward its stated goal of
achieving its target adjusted leverage ratio of 3.5x.

Fitch may lower Hilton's Positive Outlook if there is change in
management's current asset sale/deleveraging plan, if there is a
resumption of share repurchase activity in the near term, or if
Fitch's outlook on industry demand changes.  Longer-term, Fitch
believes Hilton's credit profile can support a sizable share
repurchase program.

                       About Hilton Hotels

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


METSO OYJ: To Unveil Annual Results on February 7
-------------------------------------------------
Metso OYJ will publish its 2006 financial statements at noon, on
Feb. 7, Finnish time.

A news conference will be held on the same date at:

   -- 8:00 a.m. U.S. EST
   -- 1:00 p.m. U.K. time
   -- 2:00 p.m. CET
   -- 3:00 p.m. Finnish time, EET

at the company's headquarters at:

         Metso Oyj
         Corporate Office
         Fabianinkatu 9 A
         Helsinki
         Finland


Conference call participants are requested to call in a few
minutes prior to the start of teleconference in

         U.S.: +1 334 420 4951
         other: +44 (0)20 7162 0125

A replay is available for 48 hours after the conference in

         U.S.: +1 954 334 0342
               (access code: 681 846)

         other: +44 (0)20 7031 4064
                (access code: 681 846)

                           About Metso

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

The company also has operations in Indonesia.

                          *     *     *

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


TELKOM INDONESIA: To Sue Lapindo Brantas Over Mudflow Damages
-------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk. is to put in a claim for
IDR18 billion in compensation from Lapindo Brantas Inc. for the
damage of network infrastructure and the lost of income
potential from customers due to the hot mudflow disaster in
Sidoarjo, East Java, Tempo Interactive reports.

According to the report, Telkom's Consumer Director, Guntur
Siregar explained that Telkom had suffered losses of around
IDR10 billion due to network infrastructure damage and
IDR8 billion due to a loss of one year's income from 1,800
customers whose houses were ruined.

As reported by Troubled Company Reporter - Asia Pacific on
August 31, 2006, several groups have been planning to file a
class action against gas company Lapindo Brantas, which is being
pointed out as responsible for the mudflow disaster in East
Java, Indonesia.

The TCR-AP report noted that although the exact cause of the
mudflow is not yet known, all parties are blaming Lapindo for
the catastrophe.  Its partner in the Brantas block is reportedly
accusing Lapindo of "gross negligence."

The mudflow that had submerged rice fields and four villages in
Porong, Sidoarjo, is being blamed on drilling activities in the
area.  It started as a small leak late in May, but had blown up
into a gushing of 50,000 cubic meters of hot mud a day.

Tempo notes that in the mudflow disaster area, there has been
damage to two of Telkom's fiber optic cable networks.

Guntur explained that Telkom's telephone networks in the area
were backed up by two automatic telephone centers, one in
Sidoarjo that is capable of serving 50,000 telephone lines, and
the other in Pandaan with a 15,000 telephone lines capacity, the
report points out.

The report relates that Mr. Guntur said that currently, they are
still listing the inventory of broken infrastructure and losses
that may increase due to the mudflows that are continuing.

The company will provide compensation to customers in the form
of Flexi wireless house phone services, the report adds.

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

As reported in the Troubled Company Reporter - Asia Pacific on
January 31, 1007, Fitch Ratings has revised the Outlook on
Telekomunikasi Indonesia Long-term foreign and local currency
Issuer Default ratings to Positive from Stable and affirmed the
ratings at 'BB-'.

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 Assigns 'BB-' To Indonesia's Forthcoming Global Bond
------------------------------------------------------------
Fitch Ratings assigned an expected Long-term foreign currency
rating of 'BB-' to the Republic of Indonesia's forthcoming
benchmark US dollar-denominated Global Bond.  This rating is
contingent upon receipt of final documents conforming to
information already received.

Fitch placed the foreign and local currency Issuer Default
ratings of Indonesia, which are both 'BB-', on Positive Outlook
in January 2007.  The agency notes that there is stronger policy
intent to tackle key structural reform issues, namely deep-
seated corruption, as well as bureaucratic and regulatory
hindrances to investment activity.  Fitch adds that accelerated
efforts to attract foreign direct investment and to increase
export competitiveness can help to improve Indonesia's credit
risk profile.


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

AMERICAN AIRLINES: Names Denis Lynn as Global Human Resources VP
----------------------------------------------------------------
American Airlines has named Denise Lynn Vice President of Global
Human Resources Services, filling the position previously held
by Debra Hunter Johnson who left the company in December 2006.

Ms. Lynn will lead the team responsible for providing human
resource support to managers in the U.S., Latin America, and
Mexico.  In addition, she will continue to advance the company's
efforts in diversity for employees, customers, and suppliers.

"We are extremely fortunate to have an executive of Denise's
caliber to assume this critical leadership role," said Jeff
Brundage, American's Senior Vice President-Human Resources.
"With her people skills and her breadth of HR experience, Denise
is an outstanding choice to build on Debra's many
accomplishments."

Since 2004, Ms. Lynn has served as American Eagle's Vice
President-People, with responsibility for all personnel and
labor matters for the airline.  She joined American in 1989 as a
financial analyst in Airline Planning and moved to Human
Resources in 1992, where she became the manager of Benefits
Strategy and HR Controller.  She became managing director of
Benefits Planning and Administration in 1996.

Ms. Lynn was responsible for the transition of TWA employees
when American acquired the airline in 2001.  With the completion
of the TWA integration in 2002, she became managing director of
Productivity & Business Analysis in Human Resources.

Ms. Lynn graduated from Bath University in England with a
bachelor of science degree in Economics, and arrived in the
United States in 1987 on special assignment as a consultant to
advise Dallas Area Rapid Transit on the redesign of its bus
network.  Ms. Lynn is a member of the Board of Directors of the
American Airlines Federal Credit Union.  She lives in Dallas
with her husband, Danny, and two sons.

American's approach to diversity has been widely recognized.
Among the recent accolades, Profiles in Diversity Journal
magazine named American Airlines among the top 10 in diversity
for its use of employee resource groups as participants in the
business development process; Latina Style named the company
among the top 50 companies for Latinas; and Black Enterprise
magazine included American in its list of top 50 companies for
diversity for its overall approach to diversity, including its
use of minority and women suppliers, and its employee and
community relations programs.

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

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

                          *     *     *

As reported in the Troubled Company Reporter on April 25, 2006,
Standard & Poor's Ratings Services placed its ratings on AMR
Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc.
(B-/Watch Pos/--) on CreditWatch with positive implications.
The CreditWatch placement reflected improving earnings and cash
flow prospects, which should translate into a strengthened
financial profile.  The 'B+' bank loan0 rating on American's
$773
million credit facility was placed on CreditWatch, but the '1'
recovery rating (which addresses recovery prospects in a default
scenario) was not placed on CreditWatch.


BANCO BRADESCO: Inks Pact to Acquire Banco BMC & Subsidiaries
-------------------------------------------------------------
Banco Bradesco S.A signed on Jan. 23, 2007, with the controlling
stockholders of Banco BMC S.A., a "Private Instrument for
Commitment of Merger of Stocks and Other Covenants," for the
acquisition of BMC and its subsidiaries BMC Asset Management
Ltda. -- Distribuidora de Titulos e Valores Mobiliarios, BMC
Previdencia Privada S.A. and Credicerto Promotora de Vendas
Ltda.

The operation comprises the transfer to Bradesco of 100% of the
stocks representing BMC's social capital.  The payment will be
made upon the delivery, to BMC's stockholders, of stocks issued
by Bradesco corresponding to approximately 0.94% of its capital
stock, which will be increased by BRl800 million.

The stocks to be issued and attributed to BMC's stockholders
will be issued in a Bradesco Special Stockholders' Meeting to be
held in the closing of the operation, when BMC will become a
Bradesco fully-owned subsidiary.

With almost 68 years of existence, BMC is one of the two largest
private banks operating in payroll deductible loans for retirees
and pensioners of Brazil's National Social Security Institute or
INSS, counting on a total distribution network of around 7,000
agents, through 749 correspondent banks with nationwide
presence, including areas with extremely low access to banking
services.

From April to December 2006, BMC was, once again, one of the
leaders in the INSS payroll deductible loan market, with a
BRL427 million portfolio growth (69%) and capturing up to 10% of
the market's growth 1.

BMC has a credit portfolio of approximately BRL2 billion as of
Sept. 2, 2006, 58% of which are payroll discount loans and also
offers financing/leasing of vehicles (18% of its credit
portfolio) as well as commercial loans to small and medium
enterprises (24% of the loan portfolio), originated by its
network of 14 branches.  Total assets of BMC reach BRL2,345
million and stockholder's equity of BRL278 million.

BMC counts with high levels of operating excellence, given its
differentiated technological framework, which enables the
management of relationships and of the payroll loan portfolio,
in addition to its wide experience and know-how of the operating
risks related to this segment.

BMC will be able to access both Bradesco's funding and wide
range of agreements with public and private institutions, which
will further increase its already strong leadership in this
segment.  BMC's correspondent banks will also have access to
Bradesco's entire line of products to offer its clients.

The merger will provide Bradesco with an increasing platform in
Brazil's most prominent segment of the consumer financing
market, as well as with a strengthened presence in the financing
of SMEs.

The completion of the operation is subject to the approval by
the relevant authorities and to the results of the due diligence
process, estimated to be concluded during the first half of
2007.

All services offered by BMC to its clients will continue to be
carried out as usual and independently, with the maintenance of
the current management and customer service structure,
respecting its characteristics and specialization.

BMC's stockholders counted on the financial advisory services of
Goldman Sachs and judicial advisory services of Mattos Filho,
Veiga Filho, Marrey Jr. and Quiroga.  Bradesco counted on
financial advisory services of BBI Bradesco - Banco de
Investimento and legal advisory services of Xavier, Bernardes,
Braganca.

                      About Banco Bradesco

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

                          *     *     *

Fitch Ratings upgraded Banco Bradesco S.A.'s short-term local
currency rating to 'F3' from 'B.'

Fitch has also taken these rating actions on Banco Bradesco:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

As reported on Nov. 30, 2006, Moody's Investors Service upgraded
these ratings of Banco Bradesco SA:

   -- long-term foreign currency deposits to Ba3 from B1; and

   -- long- and short-term global local currency deposit
      ratings to A1/Prime fom A3/Prime-2.

Moody's said the ratings outlook is stable.


DELPHI CORP: Has Until July 31 to File Chapter 11 Plan
------------------------------------------------------
The Honorable Robert D. Drain of the United States Bankruptcy
Court for the Southern District of New York further extended
Delphi Corp. and its debtor-affiliates':

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

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

As reported in the Troubled Company Reporter on Jan. 12, 2007,
after intensive negotiations with their statutory committees,
General Motors Corporation, and potential plan investors since
June 2006, the Debtors were successful in negotiating a
framework for a potential reorganization plan and securing a
commitment from an investor group to invest substantial sums in
the reorganized Debtors.

The Debtors, however, require more time to conduct further
negotiations contemplated by the Framework Agreements, as well
as to formulate and submit a disclosure statement and plan of
reorganization that conform to the requirements of the Framework
Agreements.

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

The Company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.  (Delphi Corporation Bankruptcy News, Issue No. 55;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).  


DELPHI CORP: Inks Amended Equity Purchase & Commitment Agreement
----------------------------------------------------------------
In a regulatory filing with the United States Securities and
Exchange Commission, Delphi Corporation Vice President and Chief
Restructuring Officer John D. Sheehan reports that on Jan. 18,
2007, the Debtors, the Plan Investors, and other parties-in-
interest, with the approval of the U.S. Bankruptcy Court for the
Southern District of New York, entered into an amended Equity
Purchase and Commitment Agreement and a supplement to the EPCA.

The Plan Investors are:

   -- A-D Acquisition Holdings LLC, an affiliate of Appaloosa
      Management L.P.;

   -- Harbinger Del-Auto Investment Co. Ltd., an affiliate of
      Harbinger Capital Partners Master Fund I, Ltd.;

   -- Dolce Investments LLC, an affiliate of Cerberus Capital
      Management, L.P.;

   -- Merrill Lynch, Pierce, Fenner & Smith Incorporated; and

   -- UBS Securities LLC.

A full-text copy of the Amended EPCA is available for free at
the SEC at http://ResearchArchives.com/t/s?1907

A full-text copy of the amended Supplement to the EPCA is
available for free at http://ResearchArchives.com/t/s?1908

The parties also entered into an Amendment and Supplement to the
Plan Framework Support Agreement, which among other things:

   (i) provides that the Delphi and the Plan Investors will not
       take the position that trade claims are not entitled to
       postpetition interest at a rate to be determined by the
       Court and that all allowed accrued postpetition interest
       on trade and unsecured claims is to be excluded in
       calculating the established cap under the PSA for allowed
       trade and unsecured claims;

  (ii) provides that the right to terminate the PSA after
       April 1, 2007, for any reason or no reason is not
       exercisable by Delphi or the Plan Investors after the
       Disclosure Statement Approval Date as defined in the PSA;
       and

(iii) grants the Official Committee of Unsecured Creditors
       certain rights.

A full-text copy of Amended PSA is available for free at the SEC
http://ResearchArchives.com/t/s?1909

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

The Company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.  (Delphi Corporation Bankruptcy News, Issue No. 55;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).  


DELPHI CORP: PwC's Scope Expanded to Help Plan Due Diligence
------------------------------------------------------------
At Delphi Corp. and its debtor-affiliates' request, the
Honorable Robert D. Drain of the United States Bankruptcy Court
for the Southern District of New York authorizes the expansion
of the scope of PricewaterhouseCoopers LLP's services to help
facilitate the Debtors' plan of reorganization due diligence
process, nunc pro tunc to Dec. 15, 2006.

PwC's additional services will include, but will not be limited
to:

   -- holding discussions with certain of the Debtors' officers,
      employees and outside consultants;

   -- performing financial analysis of the Debtors' historical
      results and trends;

   -- commenting on projected financial information prepared by
      management; and

   -- performing certain other procedures.

Subject to a work plan to be authorized by the Debtors, PwC
will:

   -- obtain an understanding of the company's accounting
      policies and how those policies impact reported results,
      and assess the overall adequacy of the company's
      compliance with Sarbanes-Oxley rules and reporting
      responsibilities;

   -- obtain an understanding of the status of significant
      "investigations" into the company's financial reporting
      and its current estimate, if any, of the range of the
      potential effects to its reported earnings;

   -- understand significant joint-venture agreements and how
      their accounting treatment impacts reported EBITDA and
      cash flow;

   -- summarize the key financial aspects of transactions and
      agreements between the company and General Motors;

   -- perform appropriate due diligence procedures on these
      subject areas:

         * Quality Of Earnings/Cash Flow,
         * Operating Division Analysis & Corporate Headquarters,
         * 2007 To 2012 Business Plan,
         * Balance Sheet,
         * Tax Due Diligence, and
         * Employee Benefits Due Diligence.

PwC estimates that its fees for the additional services will
range from US$3,500,000 to US$5,500,000.  If PwC's fees will
exceed the estimates, it promises to inform the Debtors
immediately and not undertake any additional work.

The Debtors will continue to pay PwC its standard hourly rates:

      Professional                        Hourly Rates
      ------------                        ------------
      Partner & Managing Director       US$775 to US$900
      Director                          US$515 to US$600
      Manager                           US$390 to US$450
      Senior                            US$325 to US$375
      Associate                         US$290 to US$325
      Administration                    US$100 to US$150

The Debtors and PwC also agree on certain dispute resolution
processes:

   (a) Any controversy or claim in connection with the PwC
       Supplemental Retention Application or the Statement Of
       Work will be brought in the Bankruptcy Court or the
       United States District Court for the Southern District of
       New York if the District Court withdraws the reference;

   (b) They consent to the jurisdiction and venue of the
       Bankruptcy Court as the sole and exclusive forum for the
       resolution of claims, causes of actions or lawsuits;

   (c) They waive trial by jury;

   (d) If the Bankruptcy Court or the District Court does not
       have jurisdiction over the subject claims and
       controversies, they will submit first to non-binding
       mediation; and, if mediation is not successful, then to
       binding arbitration, in accordance with the dispute
       resolution procedures;

   (e) Judgment on any arbitration award may be entered in any
       court having proper jurisdiction; and

   (f) PwC will not assert any defense based on jurisdiction,
       venue, abstention or otherwise to the jurisdiction and
       venue of the Bankruptcy Court or the District Court to
       hear any controversy or claims in connection with the PwC
       Supplemental Retention Application and the services it
       provides.

Colin Wittmer, a partner at PwC, assures the Court that his firm
does not represent any interest adverse to the Debtors and their
estates, and is a "disinterested person" as the term is defined
in Section 101(14) of the Bankruptcy Code.

Mr. Wittmer adds that PwC professionals providing the additional
services will not have any access to the team members, working
papers, or reports of any PwC professional engaged in the
Debtors' Chapter 11 cases without prior consent.

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

The Company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.  (Delphi Corporation Bankruptcy News, Issue No. 55;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).  


JAPAL AIRLINES: To Join Oneworld Alliance Starting April 1
----------------------------------------------------------
Japan Airlines, together with Malev Hungarian Airlines and Royal
Jordanian Airlines, will start offering oneworld(R) services and
benefits from April 1, 2007, in the biggest expansion of the
world's leading quality global airline alliance since its launch
eight years ago today.

Japan Airlines was the largest airline in the world not aligned
to a multilateral global alliance until it lined up to join
oneworld.  It is the biggest carrier in the Asia-Pacific region
and one of the top airlines in the world on any count.  On
virtually every measure, it becomes one of the biggest three
airlines in oneworld.

Five other members of the JAL Group will join oneworld alongside
Japan Airlines on the same day, as affiliates -- JALways, Japan
Asia Airways, JAL Express, J-AIR and Japan Transocean Air.

With its five oneworld affiliates, it will add nearly 50
destinations to the alliance network -- almost 40 of them in
Japan, and the rest in China and elsewhere in Asia.  JAL will
bring one new territory onto the oneworld map, in Guam.

From April 1, 2007, some 20 million frequent flyers from JAL,
Malev and Royal Jordanian will be able to earn and redeem
mileage awards on all other oneworld carriers.  This includes
the more than 19.5 million members of the JAL Mileage Bank
frequent flyer programme, 75,000 members from Malev's Duna Club,
and the 90,000 members of Royal Jordanian's Royal Plus.

Top-tier members (Emerald and Sapphire) will also have access to
the 400 airport lounges worldwide offered by the alliance's
airlines.

Eligible members of these three programmes will soon be sent new
membership cards, bearing the oneworld logo, to ensure they
receive their alliance benefits from April 1, 2007.

From the same date, members of the established oneworld
airlines' frequent flyer programmes will be able to earn and
redeem awards and receive all other oneworld benefits on these
new recruits, whose networks will also be covered by oneworld's
extensive range of alliance fares and sales products.

Also on April 1 2007, as previously announced, Aer Lingus will
withdraw from oneworld, with its focus on low fare point-to-
point passengers no longer in line with oneworld's strategy of
providing services for premium, multi-sector, frequent,
international travellers.

Three other airlines are lining up to become part of oneworld in
2007 -- Dragonair, LAN Argentina and LAN Ecuador, all as
affiliate members. Joining dates for these three carriers will
be announced in due course.

These overall changes in membership will expand the size of the
alliance substantially, to:

   -- almost 700 airports, around a hundred more than now;

   -- nearly 150 countries;

   -- 9,000 daily departures, a thousand more than today;

   -- around 315 million passengers, 65 million more than at
      present;

   -- 265,000 employees';

   -- almost 2,500 aircraft; and

   -- US$85 billion revenues, up by a third.

JAL Group Chief Executive Haruka Nishimatsu said: "We are
delighted to announce that JAL will become a member of oneworld
on April 1.  By joining hands with the alliance's nine other
world-class airlines, we will be able further to strengthen the
quality of our products and services, providing our customers
with greater convenience, comfort, value and choice throughout
the alliance's comprehensive global network.  Our strong market
presence in Japan and elsewhere in Asia will enable us to take a
leading role in oneworld's strategy, and significantly enhance
the competitiveness of this leading quality global alliance."

oneworld Managing Partner John McCulloch said: "Adding Japan
Airlines, Malev and Royal Jordanian represents oneworld's
biggest expansion since the alliance was launched eight years
ago today.  We are very much looking forward to welcoming them
and their customers on board from 1 April.  Their addition will
broaden our network coverage in three of the fastest growing
regions for air travel and further strengthen oneworld's
position as the world's leading quality airline alliance."

Work is well advanced in linking up the IT systems of the
recruits to those of oneworld's established members, and to
bring their various internal processes and procedures into line
with the alliance's requirements, to enable them to offer the
alliance's services and benefits from the start of April 1.

Of the 24 interline e-ticketing links required to enable
passengers to transfer between their flights using just
electronic tickets, without the need for a traditional paper
ticket, only three remain to be cut over.  Malev already offers
IET with all the other oneworld members.  The three outstanding
IET connections will be completed in the coming weeks.

oneworld has been the only alliance with interline e-ticketing
between all of its partners since April 2005.

JAL, Malev and Royal Jordanian have already joined the
alliance's Global Explorer round-the-world fare product, which
already included some other carriers which are not part of the
alliance.  They will have the alliance's full range of alliance
fares and sales products extended to them on April 1.

American Airlines and Cathay Pacific last month transferred from
Terminal 1 to Terminal 2 at JAL's main international hub Tokyo
Narita, where they now operate alongside the Japanese airline.
Qantas was already based there and Finnair will join the in the
coming weeks.  This represents the alliance's biggest
consolidation project in the Asia-Pacific region, substantially
smoothing and speeding connections for passengers transferring
there between these airline's flights.

Massive employee training and communications programmes are now
underway at the recruits and the alliance's existing members, to
ensure that their staff worldwide are ready to provide
oneworld's customer services and benefits across the expanded
alliance from April 1.

The three airlines will be oneworld's first new recruits for
more than six years.  In the interim, the alliance's focus was
on helping its member airlines weather the worst financial
crisis the industry has faced.  Its success in this is reflected
in the fact that oneworld is the only alliance whose members
collectively achieved a profit in their latest full financial
years -- of US$1.8 billion net, while SkyTeam members lost
nearly US$5 billion and Star's plunged more than US$20 billion
into the red.

The oneworld alliance enables its member airlines to offer their
customers more services and benefits than any airline can
provide on its own.  These include a broader route network,
opportunities to earn and redeem frequent flyer miles and points
across the combined oneworld network and more airport lounges.

Its established members comprise American Airlines, British
Airways, Cathay Pacific, Finnair, Iberia, LAN and Qantas, plus
their dozen affiliates.

oneworld was voted the World's Leading Airline Alliance for the
fourth year running in the 2006 World Travel Awards, based on
votes cast by some 170,000 travel professionals, including more
than 110,000 travel agents in 200 countries.

                       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: Expands Charter Flight Business
-----------------------------------------------
Japan Airlines has decided to promote charter flight business as
a new international business field and will strengthen
activities in this area in future.  In FY2007, JAL will operate
about 800 charter flights, an increase of about 100 flights
(13%) from the current year ending March 31, 2007, from various
parts of Japan to cities and tourist destinations around the
world (excludes Haneda- Gimpo charter flights).

The biggest merit of charter flights is the shorter flight time
to the destination due to direct flights.  JAL will pursue the
convenience of customers, by eliminating connection flights and
flying direct from various parts of Japan to popular cities and
tourist destination overseas, which would take more time on
scheduled flights, thus meeting the demand of the silver
population (baby boomers), who are now retiring from the
workforce.  The JAL charter program will also meet the needs of
more diverse customers, such as special interest groups
including, for example, spectators of sports events.

In the past JAL has operated charter flights from main airports
in Japan to Alaska (US), Koror (Palau), Prague (Czech Republic),
Budapest (Hungary), Ulaan Baatar (Mongolia), Alice Springs
(Australia), and from regional airports in Japan to Hawaii, Guam
and Macao.  In future JAL will increase charter flight
frequency, the number of departure airports in Japan and the
variety of destinations to create new demand.

JAL also plans to proactively develop private charter flights
where special individuals or corporations conclude an agreement
with the airline to charter an aircraft.  Such flights can be
used as a means of travel for musical groups such as orchestras,
sports groups, and corporate entertainment, including employee
and incentive trips.

Outline of charter plans for FY2007

Alaska:      Anchorage and Fairbanks 14 flights planned in
              August and September.  Big attraction: the Aurora
              Borealis

Australia:   Tours to major tourist sights such as Ayers Rock,
              including e.g. rides on the Ghan Railroad between
              Darwin and Alice Springs

Canada:      Rockies through the gateway of Calgary : 3-5
              flights.  Later in the year Montreal and Toronto:
              5-8 flights.

Central
Europe:      Budapest in Hungary, and Prague in the Czech
              Republic: 18 flights

Hawaii:      From regional airports such as Sapporo, Sendai,
              Niigata, Hiroshima, Fukuoka.

Marshall
Islands:     Majuro Atoll -- another great diving venue: 8-10
              flights.

Mongolia:    Flights to Ulaan Baatar from Haneda, Nagoya,
              Kansai: 8-10 flights.

Palau:       A diver's paradise.  From this year trips to
              Koror.  From Narita, Kansai and Nagoya: 70 flights
              planned.

Western
Europe:      Zurich, Milan, Rome.

Others:      Corporate charters, orchestral groups, sports
              groups and other private charter

                       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.


MITSUKOSHI LTD: Talks with Tiffany on Store Deal Renewal Ongoing
----------------------------------------------------------------
Tiffany & Co. said that it will continue to negotiate with
Mitsukoshi Ltd. after an agreement affecting 19 of its 53 stores
in Japan expired on January 31, 2007, Bloomberg News reports.

Bloomberg cites Bloomberg spokesman Mark Aaron as saying that
Tiffany's boutiques in Mitsukoshi-controlled department stores
were operating normally.

Mr. Aaron, however, refused to disclose how long the
negotiations between the two firms will take.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 12, 2007, that Tiffany gets about 10% of its net sales from
the boutiques it has in Mitsukoshi-operated stores.  If the
January 31 deadline passes without a new deal, the boutiques
will continue operating as usual unless one of the companies
decides to close them.

Bloomberg recounts that Tiffany began operating boutiques in
Mitsukoshi stores in 1993 and pays the Tokyo-based retailer fees
as a percentage of sales made in the boutiques.

                        About Tiffany & Co.

Headquartered in New York City, Tiffany & Co. --
http://www.tiffany.com/-- through its subsidiaries, is involved  
in the design, manufacture, and sale of fine jewelry.  It also
sells brand merchandise such as watches, sterling silver goods,
china, crystal, stationery, fragrances, and personal
accessories.  Tiffany & Co. distributes its products through
company-operated stores, Internet, catalog, and business-to-
business sales in the United States and internationally. As of
December 31, 2005, the company has 154 retail stores worldwide.

                       About Mitsukoshi Ltd.

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

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

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


MIZUHO FINANCIAL: Earns JPY580 Billion in 9 Months to Dec. 31
-------------------------------------------------------------
Mizuho Financial Group Inc. reported a net profit of
JPY579.9 billion (US$4.75 billion) for the nine-month period
ended Dec. 31, 2006, slightly down compared with the
JPY581.2-billion profit booked a year earlier, The Associated
Press reports.

Mizuho says that the decrease was partly due to bond portfolio
losses totaling JPY25.7 billion (US$210.66 million), AP says.

The Wall Street Journal relates that Mizuho's group operating
revenue for the 2006 nine-month period totaled JPY2.86 trillion,
up 11% from the JPY2.582 trillion recorded in the same period in
2005.  Moreover, the report cites Mizuho as saying that its net
business profit dropped 25% to JPY577.6 billion during the
period.

According to AP, the bank left its earnings estimates unchanged
for the full year through March 31, 2007.  Mizuho forecasts a
group net profit of JPY720 billion (US$5.90 billion) on
operating revenue of JPY3.8 trillion (US$31.15 billion).

                    About Mizuho Financial Group

Headquartered in Tokyo, Japan, Mizuho Financial Group, Inc. --
http://www.mizuho-fg.co.jp/english/-- is a financial     
institution.  The company primarily is engaged in the banking,
trust, securities, asset management and credit card businesses,
as well as the investment advisory business.  Through its
subsidiaries, Mizuho Financial Group also is engaged in the
consulting, system management, credit guarantee, temporary
staffing and office work businesses, among others.  Its main
subsidiaries and associated companies include Mizuho Bank, Ltd.,
Mizuho Trust & Banking Co. (USA), Mizuho Trust & Banking
(Luxembourg) SA, Mizuho Corporate Bank, Ltd., Mizuho Trust &
Banking Co., Ltd., Mizuho Private Wealth Management Co., Ltd.,
Mizuho Financial Strategy Co., Ltd., Mizuho Capital Markets
Corporation, Mizuho Securities Co., Ltd., Mizuho Bank
Switzerland Ltd., Mizuho International plc., Mizuho Securities
USA, Inc. and Mizuho Investors Securities Co., Ltd.  The company
has 130 consolidated subsidiaries and 19 associated companies.

The Troubled Company Reporter - Asia Pacific reported on
November 28, 2005, that Moody's Investors Service upgraded to D+
from D- the bank financial strength ratings of the banks in the
Mizuho Financial Group -- Mizuho Bank, Ltd.; Mizuho Corporate
Bank, Ltd.; and Mizuho Trust & Banking Co., Ltd.

Additionally, on February 8, 2006, Fitch Ratings assigned a C
individual rating to Mizuho Financial.


NIKKO CORDIAL: Shares Dive 16% Due to Probe Findings
----------------------------------------------------
Nikko Cordial Corp.'s stock fell 16% to an 18-month low of
JPY1,000 at the 3 p.m. market close in Tokyo on Thursday,
Bloomberg News reports.

According to the report, almost 80 million shares were traded,
or 8.2% of the total number outstanding.  A two-day drop of 28%
has sliced about JPY380 billion (US$3.1 billion) off Nikko's
market value.

Reuters relates that yesterday's drop followed a 14.5% plunge on
Wednesday after a special panel investigating accounting
problems at Nikko Cordial found "systemic legal violations",
fuelling speculation that the Tokyo Stock Exchange would delist
Japan's third-biggest brokerage firm.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 1, 2007, the 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 TSE earlier said that it will use the panel's findings
in deciding whether to remove Nikko's shares.

The plunge taken by Nikko Cordial's shares was the biggest two-
day decline in at least 22 years, Bloomberg says.

Bloomberg recalls that Nikko Cordial's shares fell 19% on
Oct. 20, 1987, the day after the "Black Monday" stock market
crash that saw the Dow Jones index dive 23%, and the biggest
previous two-day drop was 23% in November 1997.

                About Nikko Cordial Corporation

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

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

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


NIKKO CORDIAL: Moody's Downgrades Ratings & Keeps Under Review
--------------------------------------------------------------
Moody's Investors Service has downgraded to Baa3 the Baa2 issuer
rating of Nikko Cordial Corporation, and to Baa2 the Baa1 issuer
rating of Nikko Cordial Securities.  Both ratings remain under
review for further downgrade and the P-2 short-term issuer
rating of Nikko Cordial Securities is also placed under review
for downgrade.  This follows the January 30, 2007 announcement
of the results of the Special Investigation Committee, which was
charged with investigating the accounting irregularities at
Nikko Cordial Corporation.

The Aa2/P-1 long-term/ short-term debt ratings of Nikko
Citigroup, which continue to reflect the high levels of support
that is expected to be provided by Citigroup to Nikko Citigroup
if needed, are unaffected.

Moody's considers the conclusions of the report, which indicate
that the most senior members of the management of Nikko Cordial
Corporation and Nikko Principal Investments were directly
involved in or aware of the accounting irregularities, to be
worse than expected.  The immediate downgrade reflects the fact
that Moody's now views it as unavoidable that there will be a
significant impact on the franchise of Nikko Cordial Group from
these events, although the current strong liquidity position of
Nikko Cordial Group is an important mitigating factor.  The
ratings remain under review for further downgrade due to the
possibility of revelations of further governance issues at Nikko
Cordial Group, as well as an increase in the probability of the
TSE deciding to delist NCC.

The rating review will take into account the revised financial
statements to be issued by NCC at the end of February, the
ongoing impact on business activities from recent events, Nikko
Cordial Group's ability to maintain an adequate liquidity
position, and the decision of the TSE concerning delisting NCC
from the Tokyo Stock Exchange.

                About Nikko Cordial Corporation

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

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

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


NIKKO CORDIAL: Pays Former Execs Millions in Retirement Fees
------------------------------------------------------------
Nikko Cordial Corp. shelled out hundreds of millions of yen in
combined retirement allowances to former president Junichi
Arimura and former chairman Masashi Kaneko, The Asahi Shimbun
reports, citing sources.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 27, 2006, Mr. Arimura and Mr. Kaneko quit their posts
effective Dec. 26 over charges that Nikko Cordial committed
accounting irregularities.

Asahi Shimbun relates that Mr. Arimura received the allowances
for his tenure between 1997 and 2003, and Mr. Kaneko for his
term between 1988 and 2003.

According to the report, the allowances were for the periods
when the two former executives served as directors before the
company scrapped the retirement allowance system for directors
in 2003.  Asahi Shimbun explains that Nikko Cordial replaced the
retirement allowance system for directors with a stock-options
program and a performance-linked compensation system.

Nikko said that it had no choice but to make the payouts to
Mr. Arimura and Mr. Kaneko because these payments had been
approved at a shareholders meeting in 2003, the report notes.
  
The report points out that Nikko Cordial's new top executives,
including President Shoji Kuwashima, may come under fire for
authorizing the payouts.

                      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.


NORTHWEST AIRLINES: Equity Holders Want Own Committee Formed
------------------------------------------------------------
The Ad Hoc Committee of Equity Security Holders asks the United
States Bankruptcy Court for the Southern District of New York to
compel Acting U.S. Trustee for Region 2 Diana G. Adams to
appoint an official committee of equity security holders in
Northwest Airlines Corp.'s bankruptcy cases.

Ms. Adams has previously denied a request to appoint a Northwest
Equity Committee in December 2006.

The Ad Hoc Committee is comprised of 11 entities, which together
hold nearly 18.55% of the outstanding shares of Northwest
Airlines Corp. common stock.

Daniel P. Goldberg, Esq., at Kasowitz, Benson, Torres & Friedman
LLP, in New York, asserts that a Northwest Equity Committee is
necessary since the Debtors have real value, are far from
hopelessly insolvent, and equity holders have a meaningful
chance of receiving distribution.

Even without current earnings before interest and tax,
depreciation, amortization and restructuring costs (EBITDAR)
guidance reflecting the necessary changes to Northwest's
projections and even with the "overhang" of its Chapter 11 Plan
of Reorganization status, Northwest's public equity is currently
worth more than US$480,000,000, Mr. Goldberg says.

Mr. Goldberg adds that based on the Ad Hoc Committee's
investigation, solely based on public information and
independent analyst reports, Northwest's equity may currently
worth US$1,500,000,000 or more.

Mr. Goldberg further asserts that stockholders are not and will
not be represented absent an official committee.

"Though in theory Northwest's board may have some interest in
ensuring that stockholders are treated fairly, that is not true
here as a practical matter," Mr. Goldberg says.  The Northwest
board of directors and officers, according to Mr. Goldberg, owe
a duty of care and loyalty to creditors that takes precedence
over their traditional obligations to stockholders.

Mr. Goldberg also says that while there are always concerns
about costs of official committee representation, equity holders
have the greatest incentive to minimize administrative expenses
and limit activity and costs to maximize results for their
benefit because they are last in the priority chain.

In Northwest's case, the benefits of official committee
representation of equity holders far outweigh any additional
costs to the Debtors' estates.

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents.  The Company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930).  Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases.  When the Debtors filed for
protection from their creditors, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.  (Northwest
Airlines Bankruptcy News, Issue No. 53; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)  


XEROX CORP: Total Revenue Rises to US$4.4 Bil. in Fourth Quarter
----------------------------------------------------------------
Xerox Corporation reported that total revenue of US$4.4 billion
grew 3% in the fourth quarter.  Post-sale and financing revenue,
which represents about 70% of Xerox's total revenue, increased
5%, largely driven by 7% post-sale growth from digital systems.  
Both total revenue and post-sale revenue included a currency
benefit of 3 percentage points.

"Xerox delivered solid performance in the fourth quarter,
contributing to another year of double-digit earnings growth,"
said Anne M. Mulcahy, Xerox chairman and chief executive
officer.

"It was a year of steady improvements across the board," she
added.  "We grew revenue through stronger annuity and expanded
our industry-leading portfolio of products and services.  We
acquired companies that broaden our share of the fast-growing
document management and production color printing markets.  We
generated US$1.6 billion of operating cash flow, returned to
investment grade and bought back US$1.1 billion of Xerox shares.  
As important, we managed our operations efficiently, giving us
the flexibility to compete effectively while delivering value
for shareholders."

Color now accounts for about 37% of Xerox's total revenue, up 3
points from the fourth quarter of 2005.  The number of pages
printed on Xerox color systems grew 36% in the fourth quarter.
And, color now represents 10 percent of total pages, a year-
over-year increase of 2 points.

Equipment sale revenue was down 1% in the fourth quarter
including a 3 point benefit from currency.  However, strong
install growth of key products is expected to drive future gains
in the company's post-sale revenue.  Xerox's investment in
innovation led to the launch of 14 products in 2006 that
together earned 208 industry awards.  The company expects to
more than double its number of product announcements this year.  
About two-thirds of Xerox's equipment sales come from products
launched in the past two years.

Xerox's production business provides commercial printers and
document-intensive industries with high-speed digital printing
and services that enable on-demand, personalized printing.  
Total production revenue increased 3% in the fourth quarter
including a 4 point currency benefit.  Installs of production
black-and-white systems declined 6 percent with growth in light
production only partially offsetting declines in higher-end
production printing.  Production color installs grew 40%,
reflecting accelerated activity for the Xerox iGen3(R) Digital
Production Press and continued strong demand for the
DocuColor(R) 5000 as well as the DocuColor 240/250 multifunction
system.

Xerox's office business provides document technology and
services for businesses of any size.  Total office revenue was
up 1% in the fourth quarter including a 3 point currency
benefit.  Installs of office black-and-white systems were up 13%
driven by 13% growth from Xerox's desktop devices like the
WorkCentre(R) 4150, and 11 percent growth in its mid-range line
of multifunction devices.  In office color, installs of
multifunction systems were up 39% reflecting strong demand for
the color WorkCentre family.  In November, Xerox launched three
more products for small businesses including the Phaser(R) 6110,
its most affordable desktop color laser printer at a starting
price of US$249.  Xerox said it will launch several more office
color systems next month.

The company also cited continued improvement in its developing
markets operations. Total revenue grew 8% in DMO.

Gross margins were 41.1%, about flat from fourth quarter of
2005.  Selling, administrative and general expenses were 23.3%
of revenue, a year-over-year improvement of 1.3 points and the
lowest percentage of revenue in more than 15 years.

Xerox generated operating cash flow of US$720 million in the
fourth quarter and ended the year with US$1.5 billion in cash
and short-term investments.  Also during the fourth quarter,
Xerox closed on the US$54 million cash acquisition of XMPie, the
leading provider of software for personalized, multimedia
marketing campaigns.

Since launching its stock buyback program in October 2005, the
company to date has repurchased about 100 million shares,
totaling US$1.5 billion of its US$2 billion program.

Xerox also reported full-year 2006 results:

    * Net income of US$1.2 billion

    * Total revenue of US$15.9 billion, an increase of
      US$194 million or 1% from full-year 2005

    * Operating cash flow of US$1.6 billion

    * Year-end cash and short-term investments balance of
      US$1.5 billion

                         About Xerox Corp.

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

                          *     *     *

As Reported in The Troubled Company Reporter on Dec. 1, 2006,
Moody's Investors Service raised the ratings of Xerox
Corporation and supported subsidiaries, upgrading Xerox's
Subordinated shelf registration to (P) Ba1 from (P) Ba2 and
Preferred shelf registration to (P) Ba1 from (P) Ba2.


XEROX CORP: Improved Leverage Prompts S&P's Positive Outlook
------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Stamford, Connecticut-based Xerox Corp. to positive from stable.
Ratings on the company, including the 'BB+' long-term and 'B-1'
short-term corporate credit ratings, were affirmed.

"The outlook revision reflects an improved leverage profile and
a strengthening revenue mix," explained Standard & Poor's credit
analyst Molly Toll-Reed.

"The ratings reflect mature and highly competitive industry
conditions and a short, recent record of total revenue growth."

These factors are partially offset by the company's good
position in its core document management business, stable non-
financing operating profitability, and moderate leverage.

Xerox reported total revenues of US$4.4 billion in the fourth
quarter ended Dec. 31, 2006, up 3% from the prior-year period.
Although equipment sales were down 1% in the quarter, post-sale
revenues grew 6% from the prior-year period.

Demonstrating sustainable long-term revenue growth is the
primary challenge for Xerox.  Ongoing competitive pricing
pressures have dampened total equipment sales growth.  Although
revenues from color equipment and color after-market sales
continue to increase as a percentage of total revenues, growth
in color equipment revenues in 2006 has been offset by pricing
pressure in the black & white equipment revenue base.

However, growth in total post-sale revenues turned positive in
2006, and continued to strengthen during the year.  Strong
growth in the installed equipment base of key products, along
with the moderating impact of declining light lens revenues, is
expected to drive continued growth in post-sales revenues, which
represent more than 70% of total revenues.

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


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

BOWATER INC: Merger Plan Cues Fitch to Rate Secured Debt at BB-
---------------------------------------------------------------
Fitch has placed the ratings of Abitibi Consolidated Inc. and
Bowater Inc. on Rating Watch Positive and Evolving,
respectively, after the companies' joint report of an intent to
merge in an all stock transaction.

Fitch rates ABY's debt as:

   -- Issuer Default Rate 'B+';
   -- Senior unsecured debt 'B+/RR4'; and,
   -- Secured bank debt 'BB-/RR3'.

Fitch rates BOW's debt as follows:

   -- Issuer Default Rate 'BB-';
   -- Senior unsecured debt 'BB-'; and,
   -- Secured bank debt 'BB'.

ABY and BOW have overlapping footprints in newsprint and
supercalendered papers and lumber.  ABY makes and sells about
3.4 million metric tonnes of newsprint per year compared to
BOW's 2.2 million metric tonnes.

Both companies make specialty and supercalendered grades, and
each manufactures lumber in Canada.  In addition BOW makes
light-weight coated grades of paper, primarily at its newly
converted mill in Catawba, South Carolina and manufactures and
sells about one million metric tonnes of market pulp per year.

Fitch believes the merger is a positive step forward for both
companies.   Paper mill locations are complementary and lend
support to an estimated US$250 million in cost synergies to be
gained by employing the 'best practices' of each.  These
encompass not only manufacturing but also procurement and
delivery and extend to lumber operations as well.

Moreover, the combination will provide the companies a stronger
platform to compete in the challenging newsprint industry, which
witnessed a 6.3% decline in consumption last year.  It will also
help address cost inflation, which is largely responsible for
last year's record high newsprint prices.  The consolidation
will allow the Number 1 and Number 2 newsprint producers on the
continent to find collaborative solutions that deal with North
America's shift to the internet for information, likely at more
reasonable costs than if each were to forge ahead independently.  
Offsetting the positive aspects of the merger is the high
leverage of both companies amid deteriorating industry
fundamentals.

The merger will require shareholders' approval and the blessing
of regulatory authorities in both Canada and the U.S.  Approvals
by the latter could extend the timetable for the merger and
conditions for approval could affect the benefits of the merger.
As the merger moves forward, the financial risks to investors
will become clearer and will be evaluated by Fitch.  Until the
merger is consummated both companies will operate independently
and conduct their financial affairs to reduce debt through
available cash flow and announced asset sales.

Through the third quarter of last year, ABY had total debt
outstanding of almost CDN$4.3 billion, including asset
securitizations.  The company's 12 month rolling EBITDA,
calculated by Fitch, was CDN$563 million.  
BOW had US$2.4 billion in debt outstanding at Sept. 30, 2006; 12
month rolling EBITDA was US$379 million.


MAGNACHIP SEMICONDUCTOR: Net Loss in 4th Qtr. Widens to US$46MM
---------------------------------------------------------------
MagnaChip Semiconductor, on Jan. 26, 2006, announced results for
the fourth quarter of 2006.

For the three months ended Dec. 31, 2006, MagnaChip recorded a
net loss of US$45.6 million compared to the US$22.9 million net
loss in the fourth quarter of 2005.

The sharp drop in revenues brought the widening of the company's
loss.

The company's net sales decreased by 34% from US$162.3 million
in the three months ended Dec. 31, 2006, to US$245.2 million for
the corresponding period in 2005.

Operating expenses for the fourth quarter of 2006 were US$57
million or 35.1% of revenue.  According to the company, the
amount included impairment and disposal loss of US$2.1 million
taken in association with dispositions of tangible assets
previously classified as held-for-sale.  Excluding the
impairment and disposal loss, operating expenses for the fourth
quarter of 2006 were US$54.9 million or 33.8% of revenue,
compared to US$61 million or 24.9% of revenue in the fourth
quarter of 2005 excluding restructuring and impairment charges
of US$27.5 million.

Net interest expense for the fourth quarter of 2006 was US$14.1
million, compared to US$14.4 million in the fourth quarter of
2005.

The company's balance sheet as of Dec. 31, 2006, shows total
assets of US$770.1 million, total liabilities of US$937.2,
redeemable convertible preferred units totaling US$117.4 million
and unit holder's equity of (US$284.6 million).

Despite the weak financial performance in the last quarter of
2006, Sang Park, Chairman and CEO of MagnaChip Semiconductor,
believes the company is well-positioned to make 2007 the year of
its recovery and return to growth.

"As a result of our coordinated efforts, our three major
businesses, SMS, Display Solutions, and Imaging Solutions, have
begun to recover and now have a solid foundation on which to
continue to improve, Mr. Park says.  "We expect production to
ramp on key new programs in the second half of this year and we
are seeing a high level of new customer activity."

For the first quarter of 2007, however, the company expects
revenues to be down by 10% to 12% compared to the fourth quarter
of 2006 reflecting lower seasonal demand and an inventory
correction in the analog and power areas of its foundry
business.

A full-text copy of the company's financial results for the
quarter ended Dec. 31, 2006, and its media release is available
for free at the U.S. Securities and Exchange Commission:

            http://ResearchArchives.com/t/s?194e

                          *     *     *

Moody's Investors Service, on Aug. 8, 2006, downgraded
MagnaChip Semiconductor LLC's corporate family rating to B1 from
Ba3.  At the same time, Moody's has downgraded the following
ratings of debt issued by MagnaChip Semiconductor Finance Co
(US) and MagnaChip Semiconductor S.A.:

   * US$100 million 5-year senior secured credit revolver to Ba3
     from Ba2

   * US$500 million aggregate floating- and fixed-rate second-
     priority senior secured notes due 2011 to B1 from Ba3

   * US$250 million senior subordinated notes due 2014 to B3
     from B2

On Feb. 1, 2007, Moody's placed the ratings on review for
possible downgrade.


MAGNACHIP SEMICONDUCTOR: Moody's Sees Possible Ratings Downgrade
----------------------------------------------------------------
Moody's Investor Service, on Feb. 1, 2007, placed the B1
corporate family rating of MagnaChip Semiconductor LLC
(MagnaChip) on review for possible downgrade.

At the same time, Moody's has placed the ratings of the debt
issued by MagnaChip Semiconductor Finance Co (US) and MagnaChip
Semiconductor S.A. on review for possible downgrade, including:

   1) Ba3 rating of the US$100 million 5-year senior secured
      credit revolver;

   2) B1 rating of the US$500 million aggregate floating and
      fixed-rate second-priority senior secured notes due 2011;

   3) B3 rating of the US$250 million senior subordinated notes
      due 2014.

The rating action follows MagnaChip's announcement of its FY2006
results, and reflects Moody's concerns over continuing pressure
on the company's financial performance.  Revenue and EBITDA
dropped by around 21% and 52% respectively, falling below
Moody's expectation.

"Apart from the industry's inherent volatility and the
continuing erosion in average sales price, MagnaChip's weak
financial performance can be partly attributable to its product
gap with major competitors, which has resulted in market share
loss in certain business segments," says Ken Chan, a Moody's
AVP/Analyst, adding, "We expect the operating environment to
continue to be competitive, so MagnaChip needs to successfully
execute its new product launch, narrow the product gap and win
back customer confidence."

The review will focus on the company's execution and recovery
plans in 2007, as well as its relative competitiveness in its
different business segments.  Moody's will also assess the
company's cash flow generating capability and its ability to
turnaround its operating performance over the next 12-18 months.

Headquartered in Korea, MagnaChip Semiconductor designs,
develops and manufactures mixed-signal and digital multimedia
semiconductors. It focuses on CMOS image sensors and flat panel
display drivers. It was the system IC division of Hynix before
its carve-out acquisition by financial sponsors, including CVC,
Francisco Partners and CVC Asia Pacific in October 2004.


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

MALAYSIA AIRLINES: Gets MYR500 Mil. Loan Facility from CIM Bank
---------------------------------------------------------------
Malaysia Airlines gets a term loan facility of up to
MYR500 million from CIMB Bank Bhd, the national carrier said in
a filing with the Bursa Malaysia Securities Bhd.

The carrier will use the loan facility to fully settle a
remaining outstanding bridging loan of MYR450 million with CIMB
Bank and to fund working capital requirements.  

In addition, the two companies inked a Subscription Agreement in
relation to the flag carrier's issuance of an aggregate of 500
redeemable preference shares of MYR0.10 to CIMB Bank.

                          *     *     *

Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and  
international flights.  Its global network comprised 32 domestic
and 86 international destinations.  Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.

The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes.  In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007.  Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.


PUTERA CAPITAL: Posts MYR2.1M Net Loss in 2nd Qtr Ended Nov. 06
---------------------------------------------------------------  
Putera Capital Bhd incurred a net loss of MYR2.1 million on
MYR4.05 million of revenues in the second quarter ended Nov. 30,
2006, as compared with the MYR6.17-million net loss on
MYR5.40 million of revenues in the same period of 2005.

The company's consolidated balance sheet as of end-November 2006
showed current assets of MYR14.32 million and current
liabilities of MYR47.57 million.

Total assets of the company amounted to MYR44.79 million and
liabilities totaled MYR49.8 million resulting to a shareholders'
equity deficit of MYR5.01 million.

A full-text copy of the company's financial statement for the
second quarter ended Nov. 30, 2006, can be viewed for free at:

http://www.bankrupt.com/misc/putera2q-07.xls

                          *     *     *

Headquartered in Kamunting-Taiping, Malaysia, Putera Capital
Berhad is principally involved in the investment and development
of properties.  Its other activities include the manufacture and
sale of yarn and woven fabrics, construction and management of
water and sewage treatment plant, contractor of construction
projects, distribution of marble, tiles, and related business
and investment holding.

The company is classified as an Affected Listed Issuer due to
the following reasons:

    a) The shareholders' equity of the company on a consolidated
       basis has fallen below 25% of its issued and paid up
       capital as per its unaudited 3rd quarter financial
       results as announced on April 28, 2006.  As such its
       shareholders equity is less than the minimum issued and
       paid up capital.

    b) The auditors have expressed a modified opinion with
       emphasis on Putera's going concern in its latest audited
       accounts of May 31, 2005

    c) There are defaults in repayment of certain debt
       obligation by Putera and its subsidiaries and Putera is
       unable to provide a solvency declaration to Bursa
       Malaysia Securities Berhad.


SATERAS RESOURCES: Unit Faces Court's Wind-Up Order
---------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Dec. 12, 2006, that Sateras Resources (M) Bhd received a wind-up
petition from Pengurusan Danaharta Nasional.

According to TCR-AP, the petition was served out of Cosmopac's
-- a wholly owned subsidiary of Sateras Resources --
MYR46,500,000 debt to Pengurusan Danaharta as of October 10,
2006, for which Sateras has provided corporate guarantee.

Sateras said in the report that it will pursue legal measure by
applying for a stay of the winding-up proceeding in order to
protect its interest.

In an update, Sateras disclosed with the Bursa Malaysia
Securities Bhd that the company's application for a stay of the
proceedings instituted was dismissed and the Court allowed the
wind-up petition served by Pengurusan Danaharta on January 25,
2007.

Meanwhile, Sateras said it would appeal the decision with the
Court of Appeal and submit an application for stay of execution
of the winding up order.

                          *      *      *

Headquartered in Kuala Lumpur, Malaysia, Sateras Resources
(Malaysia) Berhad is principally engaged in investment holding
and provision of management and secretarial services.  The
principal activities of its subsidiary companies are that of
property development, investment in real property, investment
holding and educational services.

The Company has been experiencing losses since the Asian
financial crisis in 1997.  Sateras' balance sheet as of Sept.
30, 2006, showed insolvency with total assets of MYR160.99
million and total liabilities of MYR575.17 million.
Shareholders' deficit in the company reached MYR414.18 million.


SBBS CONSORTIUM: Bursa Issues Public Reprimand and Imposes Fine
---------------------------------------------------------------
On Jan. 30, 2007, the Bursa Malaysia Securities Bhd publicly
reprimanded and imposed a fine on SBBS Consortium Bhd after the
company failed to submit its second quarterly report for the
period ended June 30, 2006, on the August 31, 2006 deadline.

According to the bourse listing requirements, a listed issuer
must give Bursa Securities for public release, an interim
financial report that is prepared on a quarterly basis, as soon
as the figures have been approved by the board of directors.

As at to-date, SBBS Consortium has not issued its financial
report for the quarter ended June 30, 2006.  

In this regard, Bursa directs the company to submit the report
within one month from the date of the public reprimand.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, SBBS Consortium Berhad
is engaged in the trade, manufacture and sale of molded and sawn
timber and other wood-based products.  Its other activity is
investment holding.

Due to its inability to service loan facilities, the company had
entered into various negotiations with its bank creditors, and
in order to ensure that these creditors are treated on a pari
passu basis, the company had ceased making repayments to its
bank creditors on an ad-hoc basis.  As a consequence of this
treatment, its bank creditors have taken various measures to
recover their outstanding loans.

Negotiations between the company and its bank creditors are
continuing.  The company is considering various sources of new
business and funds to address its financial position, and had on
June 24, 2005, appointed Covenant Equity Consulting Sdn Bhd to
advise on its options.  Currently, the company is working to
implement corporate rehabilitation exercises to turn its
business around.  On May 9, 2006, SBBS acknowledged that it
belongs to Bursa Malaysia Securities Berhad's Practice Note
17/2005 category because it is insolvent by virtue of the wind-
up order granted by the Kuala Lumpur High Court on March 29,
2006.


SELOGA HOLDINGS: Bursa Extends Plan Filing Deadline to Feb. 15
--------------------------------------------------------------
The Bursa Malaysia Securities Bhd extended Seloga Holdings Bhd's
regularization plan filing deadline to February 15, 2007.   

Seloga Holdings, as a listed company under the PN17 category of
the Bursa Securities, was originally required to submit a
regularization plan showing how it would stabilize its financial
condition to the Securities Commission and other relevant
authorities by Jan. 10, 2007.

The company asked the bourse to extend the original deadline,
which was initially rejected by the bourse.  Bursa further
decided to commence a suspension and a delisting procedure on
the company's securities.

Accordingly, Seloga appealed the decision, which was recognized
by the bourse on Jan. 17, which later amended its initial
decision.

                          *     *     *

Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings
Berhad's -- http://www.seloga.com.my/-- principal activities  
are the provision of civil engineering contracting services,
property development, provision of insurance agency services and
investment holding.  Other activities include mechanical and
electrical engineering contracting services and manufacture of
timber moldings.  The Group operates predominantly in Malaysia.

The company is currently classified under the PN-17 list of
Companies under the Bursa Malaysia Securities Bhd.


SELOGA HOLDINGS: FIC Approves Acquisition of Infra Expert
---------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on Jan. 8,
2007, that Seloga Holdings Bhd entered into a conditional share
sale purchase agreement to acquire the entire equity interest in
Infra Expert Development Sdn Bhd comprising 5,000,000 ordinary
shares at MYR1.00 each.

Completion of the proposed acquisition needs the approval of the
Foreign Investment Committee, the TCR-AP noted.

In an update, the company disclosed with the Bursa Malaysia
Securities Bhd that the FIC handed its approval on Jan. 31,
2007, to the planned acquisition.  

Accordingly, the company told the bourse that the acquisition is
deemed to be a done deal.

                          *     *     *

Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings
Berhad's -- http://www.seloga.com.my/-- principal activities  
are the provision of civil engineering contracting services,
property development, provision of insurance agency services and
investment holding.  Other activities include mechanical and
electrical engineering contracting services and manufacture of
timber moldings.  The Group operates predominantly in Malaysia.

The company is currently classified under the PN-17 list of
Companies under the Bursa Malaysia Securities Bhd and is
required to regulate its finances pursuant to a regularization
plan.


SINORA INDUSTRIES: Units Dispose Equity Interest in Priceworth
--------------------------------------------------------------
Sinora Sdn Bhd, a wholly owned subsidiary of Sinora Industries
Bhd, disposed 10,000,000 ordinary shares representing the entire
equity interest it holds in Priceworth Sdn Bhd for a cash
consideration of MYR1 million.

In addition, Innora Sdn Bhd, another wholly owned subsidiary of
Sinora, disposed 2,000,000 ordinary shares representing the
entire equity interest it holds in Priceworth for MYR9.52
million cash consideration.

Meanwhile, the company also disclosed with the Bursa Malaysia
Securities Bhd that the Securities Commission extended to
December 22, 2007, for Sinora to comply with the condition in
relation to the unapproved structures and extensions on its
buildings situated on the land bearing the title CL075376153 and
CL075472338.

                          *     *      *

Headquartered in Kota Kinabalu, Malaysia, Sinora Industries
Berhad was engaged in the manufacture and sale of plywood, sawn
timber, veneer and molded wood products.  Its other activities
included investment holding and the provision of management
services.  Operations of the Group are carried out in Malaysia,
Japan, Korea, the United States of America, Europe and other
Asian countries.

Bursa Malaysia Securities Berhad, on July 8, 2005, classified
Sinora Industries Berhad as an affected listed issuer pursuant
to Practice Note No. 17/2005, in view that the company has
effectively ceased all its business and operations.


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

BARTHOLOMEW BROTHERS: Shareholders Taps McHutchon as Liquidator
---------------------------------------------------------------
The shareholders of Bartholomew Brothers Ltd appointed David
Christopher McHutchon as liquidator by virtue of a resolution
passed on Dec. 20, 2006.

The Liquidator can be reached at:

         David Christopher McHutchon
         659 Queen Street (PO Box 79)
         Levin
         New Zealand
         Telephone:(06) 368 0707
         Facsimile:(06) 368 0033
         e-mail: hamacct@xtra.co.nz


BREWTOPP EARTHMOVERS: Court Appoints Joint Liquidators
------------------------------------------------------
The High Court of Auckland appointed Boris van Delden and Peri
Micaela Finnigan as joint and several liquidators of Brewtopp
Earthmovers Ltd on Dec. 19, 2006.

In this regard, Mr. Van Delden fixed Jan. 26, 2007, as the day
for the company's creditors to prove their debts.

The Joint and Several Liquidators can be reached at:

         Boris van Delden
         Peri Micaela Finnigan
         McDonald Vague
         PO Box 6092
         Wellesley Street Post Office, Auckland
         New Zealand
         Telephone:(09) 303 0506
         Facsimile:(09) 303 0508


CONTRACT LABOUR: Commences Liquidation Proceedings
--------------------------------------------------
On Dec. 22, 2006, Contract Labour Services (NZ) Ltd commenced a
liquidation of its business.

Accordingly, the members appointed Grant Robert Graham and
Brendon James Gibson as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Grant Robert Graham
         Brendon James Gibson
         Ferrier Hodgson & Co
         Level 16, Tower Centre
         45 Queen Street (PO Box 982)
         Auckland
         New Zealand
         Telephone:(09) 307 7865
         Facsimile:(09) 377 7794


PELAC GROUP: Court Sets Liquidation Hearing on February 7
---------------------------------------------------------
The Commissioner of Inland Revenue filed with the High Court of
Tauranga a liquidation petition against The Pelac Group New
Zealand Ltd on Nov. 3, 2006.

The application will be heard before the Court 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


PETER FLOWER: Liquidation Hearing Set on February 7
---------------------------------------------------
A petition to liquidate Peter Flower & Associates Ltd will be
heard before the High Court of Rotorua on Feb. 7, 2007, at
10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 29, 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


RD1 HOLDINGS: Faces Liquidation Proceedings
-------------------------------------------
The High Court of Auckland will hear a liquidation petition
against RD1 Holdings Ltd on Feb. 8, 2007, at 10:00 a.m.

The Commissioner of Inland Revenue filed the petition on
Nov. 16, 2006.

The CIR's solicitor can be reached at:

         Geraldine Ann Ryan
         Auckland South Service Centre
         17 Putney Way (PO Box 76198)
         Manukau, Auckland
         New Zealand
         Telephone:(09) 984 2002


SAUA & SONS: Court to Hear CIR's Liquidation Petition on March 5
----------------------------------------------------------------
On Dec. 19, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against Saua & Sons Ltd with the High Court
of Tauranga.

The petition will be heard before the High Court of Rotorua on
March 5, 2007, at 10:30 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


THE AFTER SCHOOL CARE: Shareholders Opt to Close Business
---------------------------------------------------------
On Dec. 21, 2006, the shareholders of The After School Care
Centre Ltd resolved by special resolution to liquidate the
company's business and Clive Ashley Johnson was appointed as
liquidator.

The Liquidator can be reached at:

         Clive Ashley Johnson
         PO Box 33171, Auckland
         New Zealand
         Telephone:(09) 377 5536
         Facsimile:(09) 377 5537


UBS TRUSTEES: Creditors Must Prove Debts by February 9
------------------------------------------------------
On Jan. 8, 2007, the shareholders of UBS Trustees (New Zealand)
Ltd appointed Bruce Arthur Maclean as liquidator by a special
resolution.

Accordingly, creditors are required to prove their debts by
Feb. 9, 2007, or they will be excluded from any distribution the
company will make.

The Liquidator can be reached at:

         Bruce Arthur Maclean
         Level 4, 41 Shortland Street
         Auckland
         New Zealand
         Telephone:(09) 377 4782
         Facsimile:(09) 309 8135


* NZ Utilities' 2007 Credit Outlook Still Negative, Fitch Says
--------------------------------------------------------------
On Feb. 1. 2007, Fitch Ratings said the credit outlook for the
New Zealand utility sector continues to be negative for 2007.

"While New Zealand's limited future supply of gas remains a
concern for gas-fired generators, regulatory risk has become of
heightened concern for monopoly network businesses," said Kevin
Lewis, Director in Fitch's Asia-Pacific Energy & Utilities team
in a 2007 outlook report for the New Zealand utility sector
published on February 1.

"In recent times, the Commerce Commission has clearly
demonstrated its willingness to take action to curb what it
considers is misuse of market power by utilities with monopoly
market positions," Mr. Lewis added.

The risks of New Zealand's reliance on a hydro-dependent
electricity system prevail, and utilities with well-matched
retail and generation portfolios continue to be better equipped
to manage the wholesale price volatility and volume risk.

Investment commitment for future generation capacity remains a
concern.  Beyond the Genesis e3p 385MW combined cycle gas
turbine power plant, New Zealand still needs to commit to
significant further generation capacity.

Fitch expects renewable sources such as wind, geothermal and
possibly tide and wave generation will play an increasing role
in meeting future electricity generation needs.  Wind generation
in particular is expected to experience considerable growth, but
could present some security of supply issues due to the
intermittent nature of the primary energy source.

Historic under-investment in transmission continues to constrain
the growth of the network and heightens operational risks for
the electricity sector.  Risks of increasing transmission
constraints before the upgrade is complete still prevail, which
creates credit risk for all companies reliant on reliable
electricity supplies.

The government has flagged the likelihood of a carbon trading
regime to be introduced in the medium-term, which will add costs
to thermal generators, and possibly could provide an additional
revenue stream for generators using renewable primary energy
sources.

Fitch will be hosting a teleconference on February 5, 2007, at
10 a.m. (Australian EDST) to discuss the agency's 2007 outlook
for the Australian and New Zealand energy and utility sectors.
Details of the teleconference and a copy of the report "New
Zealand Utilities: Credit Outlook 2007" can be found on the
agency's Web sites -- http://www.fitchratings.com.auand the  
subscription-based http://www.fitchresearch.com


* New Zealand's NZ$433M Dec. Deficit Raises 2006 Annual Deficit
---------------------------------------------------------------
New Zealand posted a NZ$433 million trade deficit in December
2006, the New Zealand Press Association cites Statistics New
Zealand, as saying.

The deficit increased the annual deficit to NZ$6.16 billion from
NZ$6.03 billion in 2005.  However, it is better than economists'
median forecast of a NZ$500 million deficit, the report says.

According to SNZ, seasonally adjusted values for the December
quarter showed exports fell from the September quarter.

Paired with a small rise in imports, this drop in exports has
increased the quarterly trade deficit to NZ$1.7 billion from
NZ$1.3 in the September quarter, SNZ explains.


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

* Actual January Inflation Rate May Be Lower than 4.3%, BSP Says
----------------------------------------------------------------
The Bangko Sentral ng Pilipinas said that it expects the January
national average inflation rate at 3.9% to 4.6%, noting the
growing strength of the Philippine peso against the dollar and
the general slowdown in the prices of domestic goods, GMANews.TV
reports.

The actual rate might be lower than the December's 4.3%
inflation rate because domestic prices have been generally
benign due to lower oil prices, the report cites BSP governor
Amando M. Tetangco Jr., as saying.

Based on BSP's latest forecast, the 2007 inflation rate is
expected to sustain its gradual decline until the third quarter
of the year, GMANews reveals.

However, BSP deputy governor Diwa Guinigundo told reporters that
the increase in domestic commodity prices is expected to
accelerate by the fourth quarter of 2007, which is expected to
last until the second quarter of 2008, the paper relates.

According to Mr. Tetangco, BSP is monitoring pressure on food
prices due to the El Nino weather phenomenon, as well as "the
sustained acceleration in domestic liquidity resulting from
strong foreign exchange inflows."

Mr. Tetangco also noted that this year's concern is the
anticipated increases in public expenditure and the possible
large adjustments in nominal wages, which could also raise
inflation expectations.

For the whole year, the BSP is projecting to hit the lower end
of the government's 4%-5% inflation target due to the sustained
strength of the peso and lower oil prices, GMANews notes.

                          *     *     *

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: To Provide Logistics Support to Armor Holdings
--------------------------------------------------------
AAR Corp has entered into an agreement with Armor Holdings, Inc.
for the provision of logistics and inventory management support
to the holding company for a period of two years with an option
to extend it to three years.

Pursuant to the agreement, AAR Defense Systems & Logistics will
give logistics support services for the repair of Family of
Medium Tactical Vehicles trucks at the Red River Army Depot in
Texarkana, Texas.  To help the program, a warehouse facility is
being operated near the Red River Army Depot.

According to the company's press release, AAR's Defense Systems
& Logistics operating unit supports defense programs for the
United States and its allies with an extensive range of
logistics services including supply and value chain management,
parts acquisition and distribution, and operations and
maintenance logistics management.

                          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.


FLEXTRONICS: Profit Up by 15% to US$135.83 MM in 3rd Qtr. 2006
--------------------------------------------------------------
Flextronics International Ltd. released its financial results
for the third quarter ended Dec. 31, 2006.  

For the third quarter ended Dec. 31, 2006, the company recorded
net income of US$135.83 million, or US$0.23 per diluted share,
an increase of 15% from the US$118.4 million, or US$0.20 per
diluted share in the 2005 quarter.  This excludes intangible
amortization, stock-based compensation expense, restructuring
and other charges.

Net sales for the December 2006 quarter were recorded at US$5.42
billion, which represents an increase of 31% over the US$4.13
billion sales in the corresponding quarter in 2005.

GAAP net income increased by 183% to a December 2006 quarter
record of US$119 million compared to US$42 million in the 2005
quarter.

"Last year we initiated our strategy to accelerate revenue and
profit growth in our core EMS business, which is realizing
success for our company and our customers.  A central part of
this strategy is the organization of our resources around a
market focused approach, which allows us a to better serve our
customers, " said Mike McNamara, Chief Executive Officer of
Flextronics.

Other highlights of the financial results for the December 2006
quarter includes:

   -- Non-GAAP net income reached a record high at US$136
      million;

   -- Year-over-year revenue increased 31% while non-GAAP
      operating profit increased 29%;

   -- ROIC improved 120 basis points from the 2005 quarter and
      is at the highest level in almost six years at 11.5%,
      which approximates the company's cost of capital;

   -- Cash conversion cycle improved two days on a sequential
      basis to an industry leading 12 days;

   -- Debt was repaid by US$240 million, resulting in a near-
      record low leverage ratio of 20%;

   -- Inventory was reduced by US$79 million sequentially
      despite a sales increase of US$713 million;

   -- Cash flow from operations amounted to US$350 million in
      the quarter; and

   -- Non-GAAP operating expenses were reduced to a record low
      2.4% of sales.

As of Dec. 31, 2006, the company has total assets of US$12.69
billion, total liabilities of US$6.57 billion and shareholders'
equity of US$6.12 billion.

Flextronics' unaudited financial results for the quarter
ended Dec. 31, 2006, is available for free at:

         http://bankrupt.com/misc/Flextronics3qtr06.pdf

                  About Flextronics International

Headquartered in Singapore, Flextronics International Ltd. --
http://www.flextronics.com/-- provides electronics  
manufacturing services through a network of facilities in over
30 countries worldwide including Finland, Hungary, Sweden and
the United Kingdom.  The company delivers complete design,
engineering, and manufacturing services to aerospace,
automotive, computing, consumer digital, industrial,
infrastructure, medical and mobile original equipment
manufacturers.

                          *     *     *

Fitch Ratings downgraded the ratings for Flextronics
International Ltd.:

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

   -- Senior Unsecured credit facility to BB+ from BBB-; and

   -- Senior subordinated notes to BB from BB+;

Fitch said the Rating Outlook is Stable.  Fitch's action affects
around US$1.7 billion of total debt.

Moody's Investors Service confirmed Flextronics International
Ltd.'s Ba1 Corporate Family Rating in connection with the rating
agency's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology.


HUA KOK: Pays First and Final Dividend to Creditors
---------------------------------------------------
On Jan. 23, 2007, Hua Kok Precast (Pte) Ltd paid the first and
final dividend to its creditors.

The company paid 60 cents in a dollar to all the received
claims.

The liquidator can be reached at:

         Tam Chee Chong
         c/o 6 Shenton Way, #32-00
         DBS Building Tower Two
         Singapore 068809


INTERMEC INC: To Issue 2006 Financial Results on Feb. 8
-------------------------------------------------------
Intermec, Inc will issue its 2006 fourth quarter and full year
financial results on Feb. 8, 2007.

The company will hold a conference call on Feb. 8, at 5:00 p.m.
ET (2 p.m. PT).  This will be hosted by Intermec's Chairman and
Chief Executive Officer, Larry D. Brady; President and COO,
Steven J. Winter; Chief Financial Officer and SVP, Lanny H.
Michael and Director of Investor Relations, Kevin P. McCarty.

The conference call can be accessed at:

         Dial-in Number: 1-(888) 459-8594 (US)
                         1-(210) 234-0001 (International)
                         Passcode: Intermec

         Replay Numbers: 1-800-945-6332 (US)
                         1-402-220-3552 (International)
                         1-402-220-3553

Replay Expiration: Friday, March 9, 2007, 12:00 a.m. PT

The company will also provide a live audio Web cast of the
fourth quarter and full year 2006 earnings conference call
beginning at 5 p.m., Eastern Time.

                       About Intermec Inc.

Intermec Inc. -- http://www.intermec.com/-- develops,  
manufactures and  integrates technologies that identify, track
and manage supply chain assets.  Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.

The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, United Kingdom and Singapore.

                          *     *     *

On Oct. 31, 2006, Moody's Investors Service confirmed its Ba2
Corporate Family Rating for Intermec Inc., as well as its Ba3
rating on the company's US$400 million Senior Unsecured Shelf in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology for the
U.S. manufacturing sector.

Those debentures were assigned an LGD5 rating suggesting
noteholders will experience an 85% loss in the event of default.

As reported by the Troubled Company Reporter - Asia Pacific on
Dec 20, 2006, Fitch Ratings has affirmed and simultaneously
withdrawn these ratings for Intermec, Inc.:

   -- Issuer Default Rating at 'BB-';
   -- Senior secured bank facility at 'BB+'; and,
   -- Senior unsecured debt at 'BB-'.


INTERSHOP COMMUNICATIONS: Minority Shareholders Want Earlier AGM
----------------------------------------------------------------
A group of shareholders holding 6.98% stake of Intershop
Communications AG are asking the company to hold either an
earlier annual general meeting or summon an extraordinary
meeting, Faz.Net reports.

According to the report, the minority shareholders are demanding
to resolve the company's changes in its supervisory board and
clarify the special audits on particular contracts.  These
issues will be the agenda for the next meeting.

The company is willing to discuss with the issues with the
minority group of shareholders, remarked Dr. Juergen Schoettler,
Intershop's CEO, as cited by Faz.Net.  

Moreover, Dr. Schoettler believes that the issues raised by the
minority shareholders will be resolved until the next general
meeting.

                         About Intershop

Headquartered in Jena, Germany, Intershop Communications AG --
http://www.intershop.com/-- provides software solutions that   
help organizations evolve trading relationships with consumers
and business partners online.  Intershop Solutions enables
organizations to consolidate and manage unlimited online
commerce channels on a single platform.

Intershop also operates in Singapore, France, U.K., Sweden,
Czech Republic, China, Australia, South Korea, Taiwan and the
United States.

The company has been posting annual losses since 2000: EUR87.5
million in 2000; EUR102.5 million in 2001; EUR59.7 million in
2002, EUR15.5 million in 2003; EUR14.3 million in 2004; and
EUR7.8 million in 2005.


KAKI BUKIT: Pays First and Final Dividend to Creditors
------------------------------------------------------
Kaki Bukit Industrial Pte Ltd paid a first and final dividend to
its creditors on Jan. 29, 2007.

The company paid 100% to all received claims.

As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Dec. 10, 2004.

The liquidator can be reached at:

         Goh Boon Kok
         1 Claymore Drive #08-11
         Orchard Towers (Rear Block)
         Singapore 229594


PETROLEO BRASILEIRO: Receiving Vessel from Modec International
--------------------------------------------------------------
Japanese oil services firm Modec International said in a
statement that it will send a floating, storage and offloading
vessel or FSO to Brazil's state oil Petroleo Brasileiro this
year.

Modec International told Business News Americas that the FSO
will be delivered by the end of the first quarter 2006.  It has
also began constructing a new floating production, storage and
offloading vessel or FPSO for Petroleo Brasileiro after starting
operations of the Cidade do Rio de Janeiro FPSO on Jan. 9.

The 100,000-barerl-per day Cidade do Rio de Janeiro FPSO was
contracted for eight years and could lead to revenues of US$733
million, BNamericas states, citing Modec International.

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

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

                          *     *     *

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

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

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

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


PETROLEO BRASILEIRO: Unit Inks Oil Tanker Pact with Consortium
--------------------------------------------------------------
Petrobras Transporte, a Petrobras subsidiary, will sign today
an agreement with the Atlantico Sul Consortium for the
construction of the 10 first oil tankers included in phase one
of the company's Modernization and Expansion Program.

The ceremony will take place at the Suape Port Industrial
Complex. President Luiz Inacio Lula da Silva; Pernambuco
governor, Eduardo Campos; Petrobras president, Jose Sergio
Gabrielli de Azevedo; and Transpetro president, Sergio Machado,
will attend the event.

The first phase of the Transpetro Fleet Modernization and
Expansion Program, which foresees the construction of 26 oil
tankers, will generate 22,000 new jobs.

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

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

                          *     *     *

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

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

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

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


PETROLEO BRASILEIRO: U.S. Tax Bill May Affect Investment Return
---------------------------------------------------------------
A new United States bill that would cut subsidies for oil firms
and end certain tax breaks could affect Brazilian state oil
Petroleo Brasileiro SA's return on the US$1.4 billion it
invested in the U.S., published reports say, citing Jose
Gabrielli, the firm's chief executive officer.

Business News Americas relates that the U.S. lower house
approved the bill on Jan. 18.  

Mr. Gabrielli told reporters that Petroleo Brasileiro could face
an investment return that would be lower than expected once the
bill is implemented.  The bill is yet to be approved by the US
congress.

BNamericas underscores that the bill would also affect royalty
and fee payments.  It is designed to provide incentives to
biofuel, renewable energy sources and conservation.

According to BNamericas, Petroleo Brasileiro has interests in
upstream activities in the Gulf of Mexico.  It also purchased a
50% share of a Texas plant in 2006 and planned to boost its
capacity.

Industry observers told the local press that Brazil could
benefit from the US government's removal of surtax on imported
ethanol.

The US government could decrease import duties on biofuels in
two or three years as part of its campaign to lessen dependence
on fossil fuels, BNamericas says, citing US energy secretary
Samuel Bodman.

Brazil's sugarcane-based ethanol industry is more competitive
than the mostly corn-based industry in the U.S., Mr. Gabrielli
told the press.

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

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

                          *     *     *

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

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

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

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


SYNIVERSE TECHNOLOGIES: To Release 4th Qtr. Results on Feb. 27
--------------------------------------------------------------
Syniverse Technologies will release its 2006 fourth quarter
results on Feb. 27, 2007, and will host a conference call at
4:30 p.m. EST to discuss the results.

To participate on this call, U.S. callers may dial 1-866-271-
0675 (toll-free).  International callers may dial direct(+1)
617-213-8892.

The passcode for this call is 40598279.

The event will be Web cast live over the Internet in listen-only
mode at http://www.syniverse.com/investorevents

Based in Tampa, Florida, Syniverse Technologies, Inc. --
http://www.syniverse.com/-- provides technology outsourcing to
wireless telecommunications carriers.

The company has its international offices in the Netherlands,
China, Japan and Singapore, among others.

The Troubled Company Reporter - Asia Pacific reported on Oct 13,
2006, that Moody's Investors Service's confirmed the company's
Ba3 Corporate Family Rating.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$42 Million
   Senior Secured
   Revolving Credit
   Facility due 2011      Ba3      Ba1     LGD2       24%

   US$240 Million
   Senior Secured
   First Lien             Ba3      Ba1     LGD2       24%

   US$175 Million
   Senior Subordinated
   Note due 2013          B2       B1      LGD5       80%


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

iTV PCL: Seeks Partners to Finance Debt Repayment
-------------------------------------------------
Thailand's iTV PCl is seeking new partners in an attempt to
raise the money it needs to pay THB2.21 billion in concession
fees, the Bangkok Post reports citing managing director Songsak
Premsuk.

"The company has raised only THB1.3 billion in cash so far, so
we have to find the rest," Mr. Songsak told the paper.

It's difficult for iTV to secure loans even from parent company
Shin Corp. because of uncertainties over penalty charges to be
assessed by the government, The Post cites an unnamed source
from the broadcasting firm as saying.

iTV is required by to immediately pay THB2.21 billion in overdue
concession fees to the Prime Ministers Office.  The deadline for
payment lapsed on Jan. 31.  However, the PMO considered an
extension.

"We are so thankful that the PMO gave us another 30 days.  But
we would urge the office to separate the concession fee from the
fine, which should be passed on to the arbitrator," Mr. Songsak
told the Post referring to a massive THB97.76-million-baht fine
for non-payment of fees.

Meanwhile, the Post relates that Finance Minister M.R.
Pridiyathorn Devakula required the broadcaster to pay the fine
in cash, which means that the government has rejected five fund-
raising options proposed by iTV.

The TCR-AP on Jan. 29, reported that iTV presented five
proposals on how it would settle the amount owed included
repayment of THB750 million in cash, plus THB1.5 billion through
the issue of new shares, giving the PM's Office a 55.4% stake in
the broadcaster.

"We have given iTV another chance.  If it still fails to pay, we
will have to take legal action," the Finance Minister was quoted
as saying.

                          *     *     *

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.


SUN TECH GROUP: President Resigns; Planner Names Replacement
------------------------------------------------------------
Sun Tech Group Pcl disclosed with the Stock Exchange of Thailand
that Dr. Chaiyaphon Horrungruang resigned as president effective
on Jan. 31, 2007.

Srisongkram Planner Company Limited, the reorganization plan
administrator of Suntech resolved to appoint Sawasdi
Horrungruang as the new president.

                          *     *     *

Sun Tech Group Public Company Ltd's principal activities are the
manufacture and process of canned tomatoes and whole kernel corn
and rental and sales of movie videocassette tapes and laser
discs.

On July 31, 2000, the Company filed a petition with the Central
Bankruptcy Court for business rehabilitation.  On August 28,
2000, the Court ordered the Company to be rehabilitated and
appointed Srisongkram Planner Company Limited as the Plan
Administrator.

Later in 2005, the Plan administrator filed a petition for an
amended Plan, which the Court subsequently approved.  The
Company has completely repaid its debts and has been released
from its debts in accordance with the Plan.

Currently, the company is listed under the Non-Performing Group
Sector of the Stock Exchange of Thailand.


* SET Names Companies who Fail to Meet Disclosure Requirements
--------------------------------------------------------------
The Stock Exchange of Thailand disclosed the name of three
companies who failed to meet its disclosure requirements as
required for its continued listing.

According to the bourse guidelines, all listed companies are
required to submit their financial statements, report on the
disclosure of additional information (Form 56-1) and Annual
Reports within given deadlines.
    
However, as of January 31, 2007, three listed companies have not
submitted the required documents within the deadlines.


                      F/Ss, Form 56-1     Number     Expected
                      and AR not          of days    submission
Company               yet submitted       overdue    date
-------               ---------------     -------    -------
Daidomon Group PLC.   Form 56-1 Y2004       640      N.A.
Auditor : N.A.        Form 56-2 Y2004       620      N.A.
Managing Director     FS Q2/2006            169      N.A.
Miss Wi-orn  Tongtang

Datamat PLC.            FS Q2/2006          169      N.A.
Auditor :               FS Q3/2006           78      N.A.
Mr.Prawit Viwanthananut
ANS Audit Co.,Ltd
Chief Executive Officer
Mr. Bhana Swasdibutara

ABICO Holdings Public
Company Limited         FS Q2/2006          76     Within 3/1/07
Auditor:                FS 2005             76     Within 3/1/07
Miss Sukanya Sutheeprasert
A.M.C. Co., Ltd.
Vice President
Mr. Kitti Vilaivarangkul


* Asia-Pacific Utilities' 2007 Credit Outlook Neg., Fitch Says
--------------------------------------------------------------
"Fitch's utility ratings in the Asia-Pacific region reflect the
generally robust electricity demand that has led to strong
growth in operating cash flows, relatively stable regulatory
environments and in many cases, supportive government owners,"
said Carolyn Martin, Regional Head of Fitch's Energy & Utilities
team in a 2007 outlook report for the Asia-Pacific utility
sector.  "However, specific credit challenges exist in some
regions and these include an expectation of increased leverage
to fund heavy capital expenditure programs and the potential for
margin squeeze through an uncertain tariff-setting mechanism
that does not allow for the timely pass-through of high and
volatile fuel costs," Ms. Martin added.

The special report discusses the agency's outlook for power
markets in Australia, China, Hong Kong, India, Indonesia, Japan,
Malaysia, New Zealand, Singapore, South Korea, Taiwan, and
Thailand.

A key factor affecting many regional utilities is an expected
deterioration in credit metrics to fund substantial capex for
new generation capacity and to upgrade transmission and
distribution networks.  Among others, India, South Korea, China,
Taiwan and Indonesia have heavy capex commitments.  Fitch notes
that this also imposes execution risks and the possibility of
delays and cost overruns.  While the developing nations require
huge amounts of cash to increase capacity, the more mature
markets, like Australia, New Zealand, Singapore and Hong Kong,
are facing increased pressure from shareholders to increase
distributions and undertake other shareholder-friendly measures
like capital returns and share buybacks, usually to the
detriment of debtholders.

Fitch views the transparency and effectiveness of the tariff
mechanism as a major foundation of a robust power sector.
Utilities operating in competitive markets, or in regulatory
regimes with transparent tariff mechanisms that allow the
effective pass-through of fuel costs, like Australia, New
Zealand, Japan, Hong Kong and Singapore, are generally less
affected by fuel price changes and typically face a
substantially lower risk of margin compression arising from fuel
price increases.  However, in other countries, like South Korea,
China, India, Indonesia, Taiwan and Thailand, the tariff
mechanism may prioritize social and macroeconomic considerations
in setting tariff rates.  This implies that any increase in
input costs may not be fully passed on to consumers, leading to
potentially weaker credit metrics.

Increasing environmental obligations are also becoming more
prominent in the Asian region.  With rising pollution levels and
growing environmental concerns, there is increased pressure to
make emission controls more stringent, adding to the operating
costs and capital expenditure of power generators.  Credit
implications arise when some market participants are more
negatively affected than others, and where there is limited
opportunity, such as through tariffs, to fully pass on these
higher costs to consumers.

The report also notes that a number of Fitch's Asia-Pacific
utility ratings benefit from strong explicit or implicit
government support, reflecting, among other issues:

   (a) majority government ownership;

   (b) the provision of subsidies by the government;

   (c) a favorable regulatory environment; or

   (d) access to advantageous funding arrangements.

"While each of the power markets in Asia is going through a
reform and restructuring process, the nature of the process and
the timeframes differ immensely," said Ms. Martin.  Some of
specific regulatory and reform processes Fitch is observing
closely include:

   1) expiration of the current 15-year scheme of control in
      Hong Kong;

   2) the very slow reforms in the loss-making electricity
      distribution sector in India;

   3) heightened regulatory risk in New Zealand as illustrated
      by increased regulatory intervention by the Commerce
      Commission; and

   4) in Australia, a progressive move towards a single national
      regulator, the Australian Energy Regulator.

A copy of the report "Asia-Pacific Utilities: Credit Outlook
2007" will be available on the agency's Web sites,
http://www.fitchratings.comand the subscription-based  
http://www.fitchresearch.com


* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
                                                      Total
                                           Total   Shareholders
                                          Assets      Equity
Company                        Ticker      ($MM)      ($MM)
-------                        ------     ------   ------------

AUSTRALIA

Advance Healthcare Group Ltd.     AHG      16.47       -4.93
Allstate Explorations NL          ALX      12.65      -51.62
Austar United Communications Ltd. AUN     231.54      -52.58
Hutchison Telecommunications
   (Aust) Ltd.                    HTA    1696.65     -786.31
Indophil Resources NL             IRN      37.79      -69.96
Intellect Holdings Limited        IHG      15.01       -0.83
KH Foods Ltd                      KHF      62.30       -1.71
Lafayette Mining Limited          LAF      78.17     -127.82
Life Therapeutics Limited         LFE      59.00       -0.38
RP Data Ltd                       RPX      24.25       -6.30
Stadium Australia Group           SAX     135.23      -41.84
Tooth & Company Limited           TTH      97.05      -70.08


CHINA AND HONG KONG

Artel Solutions Group
  Holdings Limited                931      29.19      -18.65
Asia Telemedia Limited            376      10.89       -5.50
Bestway International
  Holdings Limited               2994      25.00       -0.67
Chang Ling Group                  561      77.48      -76.83
Chengdu Book - A               600083      21.50       -3.07
China Liaoning International
  Cooperation Holdings Ltd.       638      20.12      -42.96
China Kejian Co. Ltd.              35      54.71     -179.23
Datasys Technology
  Holdings Ltd                   8057      14.1        -2.07
Dynamic Global Holdings Ltd.      231      39.43       -2.21
Everpride Biopharmaceutical
   Company Limited               8019      10.16       -2.16
Fujian Changyuan Investment
   Holdings Limited               592      31.36      -54.04
Guangdong Kelon Electrical
   Holdings Co Ltd                921     685.74      -96.88
Guangdong Meiya Group
   Company Ltd.                   529     107.16      -49.54
Guangxia (Yinchuan) Industry
   Co. Ltd.                       557      62.19     -115.50
Hainan Overseas Chinese
   Investment Co. Ltd.         600759      32.70      -15.28
Hans Energy Company Limited       554      94.75      -10.76
Heilongjiang Sun & Field
   Science & Tech.                620      29.96      -49.18
Hualing Holdings Limited          382     242.26      -28.15
Huda Technology & Education
   Development Co. Ltd.        600892      17.29       -0.19
Hunan Anplas Co., Ltd.            156      94.17      -65.04
Hunan GuoGuang Ceramic
   Co., Ltd.                   600286      87.44      -68.55
Hunan Hengyang                 600762      68.45       -7.20
Innovo Leisure Recreation
   Holdings Ltd.                  703      13.37       -3.89
Jiamusi Paper Co. Ltd.            699     120.30      -56.84
Jiangxi Paper Industry
   Co., Ltd                    600053      19.58      -12.80
Junefield Department
   Store Group Limited            758      16.80       -6.34
Lan Bao Tech. Information
   Co., Ltd                       631     191.26      -16.49
Loulan Holdings Limited          8039      13.01       -1.04
Mindong Electric Group Co., Ltd.  536      21.63       -1.50
New City (Beijing) Development
   Limited                        456     242.25      -21.46
New World Mobile Holdings Ltd     862     295.66      -12.53
Orient Power Holdings Ltd.        615     176.86      -64.20
Plus Holdings Ltd.               1013      18.52       -3.34
Shenyang Hejin Holding
   Company Ltd.                   633      83.18      -20.87
Shenz China Bi-A                   17      39.13     -224.64
Shenzhen Dawncom Business Tech
   and Service Co., Ltd           863      79.84      -37.30
Shenzhen Shenxin Taifeng
   Group Co., Ltd.                 34      95.27      -44.65
Shenzen Techo Telecom Co., Ltd.   555      14.84       -6.25
Sichuan Changjiang Packaging
   Holding Co. Ltd.            600137      13.11      -72.76
Sichuan Topsoft Investment
   Company Limited                583     113.12     -148.61
SMI Publishing Group Ltd.        8010      10.48       -7.83
Songliao Automobile Co. Ltd.   600715      49.56       -3.76
Success Information
   Industry Group Co.             517      88.67      -18.67
Taiyuan Tianlong Group Co.
   Ltd                         600234      13.47      -87.63
UDL Holdings Limited              620      12.04       -9.31
Winowner Group Co. Ltd.        600681      38.03      -62.88
Xinjiang Hops Co. Ltd          600090      86.63      -11.26
Yantai Hualian Development
   Group Co. Ltd.              600766      59.99       -7.66
Yueyang Hengli Air-Cooling
   Equipment Inc.                 622      49.89      -17.71
Zarva Technology Co. Ltd.         688     101.76     -102.01
Zhejiang Haina Sporting and
  Touring Goods Co. Ltd.          925      21.43      -33.33


INDONESIA

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


JAPAN

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


MALAYSIA

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


PHILIPPINES

APC Group Inc.                    APC      67.04     -163.14
Atlas Consolidated Mining and
   Development Corp.               AT      33.59      -57.17
Cyber Bay Corporation            CYBR      11.54      -58.06
East Asia Power Resources Corp.   PWR      92.55      -64.61
Fil-Estate Corporation             FC      33.30       -5.80
Filsyn Corporation                FYN      19.20       -8.83
Geograce Resources Phils. Inc.    GEO      24.18       -1.81
Gotesco Land, Inc.                 GO      17.34       -9.59
Prime Orion Philippines Inc.     POPI      98.36      -74.34
Swift Foods Inc.                  SFI      26.95       -8.23
Unioil Resources & Holdings
   Company Inc.                   UNI      10.64       -9.86
United Paragon Mining Corp.       UPM      21.19      -21.52
Universal Rightfield Property
   Holdings Inc.                   UP      45.12      -13.48
Uniwide Holdings Inc.              UW      61.45      -30.31
Victorias Milling Company Inc.    VMC     127.83      -32.21


SINGAPORE

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


SOUTH KOREA

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


THAILAND

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


                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  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 ***