TCRAP_Public/070205.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Monday, February 5, 2007, Vol. 10, No. 25

                            Headlines

A U S T R A L I A

ARCTIC SNOW: Members' Meeting Fixed for March 5
ATTASON PTY: Enters Wind-Up Proceedings
BASLOW PTY: Members Pass Resolution to Wind Up Firm
CAPE RANGE: June 30 Balance Sheet Upside Down By AU$485,836
CAPE RANGE: Administrators Looking Into Five Formal Proposals

CELRETS PTY: Members Opt to Close Business
CONNELL WAGNER: Members to Receive Wind-Up Report on March 1
EASTERN ROAD: Annual and Final Meeting Slated for March 1
EVANS & TATE: Issues 172,422 New Shares to Employees
FERNLEIGH FARMS: To Declare First and Final Dividend on Feb. 23

FLOWERS BY ANDREA: Annual and Final Meeting Set for March 1
HIH INSURANCE: Unchecked Speech Blamed for Misleading Info
INTERBATH AUSTRALIA: GMAC Appoints Receivers and Managers
LIB MANAGEMENT: To Declare First and Final Dividend on March 23
PAN PHARMACEUTICALS: James Selim Pleads Not Guilty

PRUDENTIAL-BACHE: Members Agree on Voluntary Wind-Up
STADIUM AUSTRALIA: Posts AU$22.20-Mil. Loss For 2006 Half-Year
STADIUM AUSTRALIA: SIPL Gets 51.5%; Angles For Remaining Sec.
WRIGHTS HOUSE: To Declare Dividend for Priority Creditors
* Australia's Smaller FIs Face Uphill Battle, Fitch Says

* Australia' December Trade Deficit Widens to AU$1.33B, ABS Says


C H I N A   &   H O N G  K O N G

BEAUTY GLOW: Members' Final Meeting Slated for February 27
CITY TELECOM: Moody's Keeps B2 Corporate Family Rating
FORTUNE MIND: Schedules Final Meeting on February 28
FUSION COMPUTER: Members Pass Resolution to Wind-Up Firm
GLOBALINK TECHNOLOGY: Wind-Up Hearing Set for February 27

GLORY ASSET: Court to Hear Wind-Up Petition on February 14
GRACEROCK LIMITED: Creditors' Proofs of Debt Due on Feb. 26
HONG KONG & KOWLOON: Liquidator Ceases to Act
LEGEND INTERNATIONAL: Court Appoints Joint Liquidators
METRON TECHNOLOGY (HK): Members to Receive Wind-Up Report

NETEGRITY CHINA: Creditors Must Prove Debts by February 25
TAOHO DESIGN: Members and Creditors to Meet on February 27
TRADEFIT INVESTMENTS: Members Opt to Wind-Up Firm
* Fitch Sees Varied Outlook for Hong Kong Property Industry


I N D I A

EASTMAN KODAK: Moody's Continues Ratings Review, May Downgrade
EASTMAN KODAK: Earns US$17 Million in Fourth Quarter of 2006
INDUSIND BANK: Net Profit Down 21% in Qtr. Ended Dec. 31, 2006
INDUSIND BANK: To Issue 3,00,00,000 Shares in GDRs
INDUSTRIAL DEVELOPMENT BANK: Files December 2006 Qtr. Financials

KOTAK MAHINDRA BANK: Net Up 39% in Qtr. Ended Dec. 31, 2006


I N D O N E S I A

ALCATEL-LUCENT: Inks US$600-Mil. Deal With Nigeria's Globacom
BANK MANDIRI: May Provide Loans to Perusahaan Listrik Negara
BANK RAKYAT: Pefindo Upgrades Rating to 'idAA' from 'idAA-'
FREEPORT-MCMORAN: Phelps Holders to Vote on US$25.9 Deal
FOSTER WHEELER: To Hold Earnings Conference Call

HESS CORP: Senior Debt Rating on Moody's Review for Upgrade
HILTON HOTELS: Reveals Executive Management Changes
INDOSAT: House Budget Commission Supports Shares Buy Backs
MARSH & MCLENNAN: Moody's Affirms Baa2 Unsecured Debt Rating
MARSH & MCLENNAN: Fitch Affirms 'BBB' Senior Debt Rating

MCDERMOTT INT'L: Elects John Nesser To Executive Vice President
PARKER DRILLING: Reveals Fourth Quarter 2006 Earnings Release


J A P A N

ASHIKAGA BANK: All Bidders Pass FSA's Initial Screening
AOZORA BANK: Net Income Ups 0.7% in 9-Month Period Ended Dec. 31
JAPAN AIRLINES: To Sell Hotel Assets for More Than US$580 Mil.
MITSUBISHI MOTORS: Consolidates IT Infrastructure With Riverbed
NIKKO CORDIAL: Restates 2004 Financials for Second Time

OCA INC: U.S. Court Confirms Plan of Reorganization
SANYO ELECTRIC: Seeks to Sell Chip Unit for Around JPY100 Bil.
SAPPORO HOLDINGS: Steel Partners Wants Items Taken Up at Meeting
TIMKEN CO: Lower Automobile Demand Impacts 4th Quarter Results
TIMKEN CO: To Invest US$60 Mil. on Steel Rolling Mill Operations


K O R E A

AGY HOLDING: Sales Improve by US$10 Million in Fiscal Year 2006
BIOVEST INT'L: Closes Amended & Restated Loan Transaction
KOREA DEV'T BANK: To Set Up Private Equity Fund to Aide M&As
KOREA EXCHANGE BANK: Pays Dividends; Lone Star Gets US$445-Mil.
KOREA EXCHANGE BANK: Posts KRW1.006 Trillion Net Profit in 2006

* Fitch Revises Rating Outlook on Kookmin & Shinhan to Positive


M A L A Y S I A

CHIN FOH: Unveils Restructuring Scheme to Bursa Malaysia
SUREMAX GROUP: Incurs MYR712,000 Net Loss in Qtr. Ended Nov. '07
SYARIKAT KAYU: Posts MYR1.1-Mil. Net Loss in Fourth Quarter 2006
TAP RESOURCES: Bursa Okays February 28 Plan Filing Extension
TENGGARA OIL: Bursa Extends Plan Filing Deadline to Feb. 7

TENGGARA OIL: Faces CIMB Bank's Writ of Summons


N E W   Z E A L A N D

AIR NEW ZEALAND: Faces AU$200-Million Cartel Class Action
ANTONY O'HANLON: Faces Liquidation Proceedings
ELITE AUTO: Court to Hear Liquidation Petition on Feb. 7
HUNGRY HEART: Court Appoints Joint Liquidators
ISSS LTD: Creditors Must Prove Debts by February 28

MARGOT INVESTMENTS: Shareholders Appoint Merlo as Liquidator
OLD LJP: Creditors' Proofs of Claim Due on April 1
PCW INVESTMENTS: Liquidation Hearing Set for February 8
SILK DECORATING: Shephard and Dunphy to Act as Liquidators
TAINUI CHAMBERS: Shareholders Opt to Liquidate Business

TURNER DISTRIBUTORS: Court Sets Liquidation Hearing on Feb. 8


P H I L I P P I N E S

GLOBE TELECOM: Sets Annual Stockholders' Meeting for March 28
MANILA ELECTRIC: Seeks ERC Approval for Time-of-Use Rates
METROPOLITAN BANK: Sets Annual Stockholders' Meeting on April 25
PHIL. LONG DISTANCE: Wants to Suspend PT&T Inteconnection Links
RURAL BANK OF NARRA: PDIC Services Claims Until February 9


S I N G A P O R E

CHEMTURA CORP: Completes Acquisition of Kaufman Holdings
CHINA AVIATION: Closes March 2007 Jet Fuel Tender
CHINA AVIATION: SGX-ST Grants Waiver Under Caixanova Agreement
CKE RESTAURANTS: Increases Credit Facility by US$100 Million
HEXION SPECIALTY: Closes Buy of Orica's Adhesive & Resin Assets

ISIS HAIR: Wind-Up Hearing Slated for February 9
PETROLEO BRASILEIRO: Completes Nova Piratininga Plant Expansion
PETROLEO BRASILEIRO: Gets US$1.16-Bil. Loan for Ship Building
VIRTON PTE: Creditors' Proofs of Debt Due on Feb. 26


T H A I L A N D

TMB BANK: To Submit Recapitalization Plan in March
TOTAL ACCESS: NTC Orders TOT to Integrate New Mobile Numbers

     - - - - - - - -

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

ARCTIC SNOW: Members' Meeting Fixed for March 5
-----------------------------------------------
The general meeting of the members of Arctic Snow Pty Ltd will
be held on March 5, 2007, at 10:00 a.m., to consider the
liquidator's account of how the company was wound up and its
properties disposed of.

The liquidator can be reached at:

         Peter David Kane
         Schuh & Company Chartered Accountants
         58-62 Mary Street Gympie
         Australia

                        About Arctic Snow

Arctic Snow Pty Ltd is an investor relation company.

The company is located in Queensland, Australia.


ATTASON PTY: Enters Wind-Up Proceedings
---------------------------------------
The members and creditors of Attason Pty Ltd met on Jan. 9,
2007, and resolved to voluntarily wind up the company's
operations.

In this regard, Ian Alexander Currie and Peter George Biazos
were appointed as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Ian Alexander Currie
         Peter George Biazos
         Currie Biazos Insolvency Accountants
         Level 5, 99 Creek Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3220 0994
         Web site: http://www.cbia.com.au

                       About Attason Pty

Attason Pty Ltd is an investor relation company.

The company is located in Queensland, Australia.


BASLOW PTY: Members Pass Resolution to Wind Up Firm
---------------------------------------------------
On Jan. 16, 2007, the members of Baslow Pty Ltd passed a special
resolution to voluntarily wind up the company's operations and
appointed Robyn Beverley McKern and Colin McIntosh Nicol 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 Baslow Pty

Baslow Pty Ltd is an investor relation company.

The company is located in New South Wales, Australia.


CAPE RANGE: June 30 Balance Sheet Upside Down By AU$485,836
-----------------------------------------------------------
Cape Range Wireless Limited reported a net loss of
AU$2.12 million for the half-year ending June 30, 2006, lower
than the AU$3.32 million posted for the half-year ending
June 30, 2005, the company said in its financial report.

For the period in review, the company's revenue from operating
activities amounted to AU$11,552, while total expenses amounted
to AU$2.13 million.

The company has a capital deficiency of AU$485,836 as of
June 30, 2006, on total assets of AU$8.44 million.

                       Going Concern Doubt

On Aug. 31, 2006, JP Van Dieren, of Stantons International, the
company's independent auditor, said that "there is significant
uncertainty whether the consolidated entity and the parent
entity will be able to continue as a going concern" as a result
of these matters:

   * The consolidated entity incurred an operating loss of
     AU$2,119,614 for the period ended June 30, 2006;

   * The consolidated entity also had an excess of current
     liabilities over current assets of AU$5,794,259 as of
     June 30, 2006.

                   About Cape Range Wireless

West Perth, Australia-based Cape Range Wireless Limited --
http://www.caperangewireless.com/-- has investment in  
telecommunication related businesses.  The Arcadian product was
developed to be compliant with SS7 signaling for use in Malaysia
to operate with V5.2 signalling.  In this configuration, the
equipment has been certified to operate with network switch
manufacturers, including Alcatel, Nokia and Fujitsu.  In
Bangladesh, the equipment has also been configured to operate
with R2 signalling.  The company is assisting Peoples
Telecommunications & Information Services Ltd to fund the roll-
out of a network capable of initially carrying approximately one
million lines (fixed and fixed wireless).  The Cape Range
Arcadian system was designed to service remote communities of
low tele-density and to connect the end customer by copper wire
at a remote location.  The investment in subsidiaries include
Cape Range Wireless Inc, Cape Range Wireless Malaysia Sdn Bhd,
Cape Range Wireless (Hong Kong) Ltd, Commco Pty Ltd and Captech
Investments Pty Ltd.

The company was placed under administration on Oct. 11, 2006,
due to the fact that the company had not been able to "satisfy
all parties with whom negotiations were being held" with regards
to its restructure.  Bryan Hughes and Chris Munday of Pitcher
Partners were appointed joint and several administrators by Cape
Range directors on the same day.


CAPE RANGE: Administrators Looking Into Five Formal Proposals
-------------------------------------------------------------
Chris Munday and Bryan Hughes, joint and several administrators
of Cape Range Wireless Ltd., disclosed that they have reconvened
a second meeting of creditors on Dec. 20, 2006.

Mr. Munday said that in the meeting, the creditors approved a
proposal for the company to enter into a deed of company
arrangement, which allows for the prospect of a
recapitalisation.  Both Messrs. Munday and Hughes were appointed
joint and several deed administrators starting Dec. 28, 2006,
when the deed was executed.

Cape Range is currently looking for interested parties for the
restructure of the company and the sale of its assets.  The
company is currently looking into five formal proposals.

The third meeting of creditors will be held in March 2007 to
consider the preferred proposal.

                   About Cape Range Wireless

West Perth, Australia-based Cape Range Wireless Limited --
http://www.caperangewireless.com/-- has investment in  
telecommunication related businesses.  The Arcadian product was
developed to be compliant with SS7 signaling for use in Malaysia
to operate with V5.2 signalling.  In this configuration, the
equipment has been certified to operate with network switch
manufacturers, including Alcatel, Nokia and Fujitsu.  In
Bangladesh, the equipment has also been configured to operate
with R2 signalling.  The company is assisting Peoples
Telecommunications & Information Services Ltd to fund the roll-
out of a network capable of initially carrying approximately one
million lines (fixed and fixed wireless).  The Cape Range
Arcadian system was designed to service remote communities of
low tele-density and to connect the end customer by copper wire
at a remote location.  The investment in subsidiaries include
Cape Range Wireless Inc, Cape Range Wireless Malaysia Sdn Bhd,
Cape Range Wireless (Hong Kong) Ltd, Commco Pty Ltd and Captech
Investments Pty Ltd.

The company was placed under administration on Oct. 11, 2006,
due to the fact that the company had not been able to "satisfy
all parties with whom negotiations were being held" with regards
to its restructure.  Bryan Hughes and Chris Munday of Pitcher
Partners were appointed joint and several administrators by Cape
Range directors on the same day.

The company has recorded a capital deficiency of AU$485,836 as
of June 30, 2006, on assets of AU$8.44 million.

                       Going Concern Doubt

On Aug. 31, 2006, JP Van Dieren, of Stantons Internation, the
company's independent auditor, said that "there is significant
uncertainty whether the consolidated entity and the parent
entity will be able to continue as a going concern" as a result
of the following matters:

   * The consolidated entity incurred an operating loss of
     AU$2,119,614 for the period ended June 30, 2006;

   * The consolidated entity also had an excess of current
     liabilities over current assets of AU$5,794,259 as of
     June 30, 2006.


CELRETS PTY: Members Opt to Close Business
------------------------------------------
The members of Celrets Pty Ltd resolved to voluntarily wind up
the company' operations on Jan. 16, 2007.

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 Celrets Pty

Celrets Pty Ltd is a distributor of fabricated rubber products.

The company is located in Victoria, Australia.


CONNELL WAGNER: Members to Receive Wind-Up Report on March 1
------------------------------------------------------------
The members of Connell Wagner Staff Superannuation Ltd will meet
on March 1, 2007, to receive the liquidator's report regarding
the company's wind-up proceedings and property disposal
exercises.

The liquidator can be reached at:

         Robert Michael Scales
         PKF
         CGU Tower
         Level 11, 485 LaTrobe Street
         Melbourne, Victoria 3000
         Australia

                      About Connell Wagner

Connell Wagner Staff Superannuation Limited is an insurance
carrier.

The company is located in Victoria, Australia.


EASTERN ROAD: Annual and Final Meeting Slated for March 1
---------------------------------------------------------
The joint annual and final meeting of the members and creditors
of Eastern Road Profiling Pty Ltd will be held on March 1, 2007,
at 10:00 a.m., to consider the liquidator's account of the
company's wind-up proceedings and property disposal exercises.

The liquidator can be reached at:

         Warren White
         PPB
         Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria 3000
         Australia

                       About Eastern Road

Eastern Road Profiling Pty Ltd is involved with the construction
of highways and street, except elevated highways.

The company is located in Victoria, Australia.


EVANS & TATE: Issues 172,422 New Shares to Employees
----------------------------------------------------
Evans & Tate Limited issues 172,422 fully-paid ordinary shares
to its staff who have completed 12 months of service under the
company's Employee Reward & Retention Policy, the company said
in a corporate disclosure to the Australian Stock Exchange.

The shares have cash considerations ranging from AU$0.07 to
AU$0.26 per share.

The company now has 92,574,193 shares, 3,962,086 options,
19,984,419 redeemable convertible notes and 31,170,455 7.75%
reset convertibe preference shares quoted on the ASX.


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

The Troubled Company Reporter - Asia Pacific reported on
Sept. 15, 2006, that Evans & Tate posted a loss of
AU$63.9 million for the 2005-2006 financial year, down 12% on
the corresponding figure for the previous year.

The TCR-AP report also stated that as of June 30, 2006, the
company's balance sheet revealed strained liquidity with
AU$90.930 billion in total current assets available to pay
AU$152.377 billion of total current liabilities coming due
within the next 12 months.  Further, Evans & Tate's June 30,
2006 balance sheet also showed total liabilities of
AU$207.445 billion exceeding total assets of AU$139.792 billion,
resulting to total shareholders' deficit of AU$67.653 billion.


FERNLEIGH FARMS: To Declare First and Final Dividend on Feb. 23
---------------------------------------------------------------
Fernleigh Farms Pty Ltd, which is subject to a deed of company
arrangement, will declare a first and final dividend for its
creditors on Feb. 23, 2007.

Accordingly, creditors are required to submit their proofs of
debt by Feb. 9, to be included in the dividend distribution.

The liquidator can be reached at:

         Philip McGibbon
         Jenkins Peake & Co
         PO Box 1570, Geelong 3220
         Australia
         Telephone:(03) 5223 1000
         Facsimile:(03) 5221 4938

                     About Fernleigh Farms

Fernleigh Farms Pty Ltd is a distributor of vegetables and
melons.

The company is located in Victoria, Australia.


FLOWERS BY ANDREA: Annual and Final Meeting Set for March 1
-----------------------------------------------------------
Flowers By Andrea Louise Pty Ltd will hold an annual and final
meeting for its members and creditors on March 1, 2007 at
10:00 a.m., to consider the liquidator's account of the
company's wind-up proceedings.

The Troubled Company Reporter - Asia Pacific reported that the
company went into liquidation on Dec. 1, 2005.

The liquidator can be reached at:

         David H. Scott
         Jones Condon
         Chartered Accountants
         First Floor, 173 Burke Road
         Glen Iris, Victoria 3146
         Australia

                    About Flowers By Andrea

Flowers By Andrea Louise Pty Ltd operates miscellaneous retail
stores.

The company is located in Victoria, Australia.


HIH INSURANCE: Unchecked Speech Blamed for Misleading Info
----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Reporter on
Dec. 14, 2005, two charges have been laid against Geoffrey Cohen
for allegedly giving out misleading information in the
Chairman's Address to Shareholders at the HIH Annual General
Meeting on Dec. 15, 2000.  The Commonwealth Director of Public
Prosecutions on behalf of the Australian Securities and
Investments Commission laid the charges.

According to the TCR-AP, the ASIC alleged that Mr. Cohen, who
chaired HIH in the three years before its collapse, made
misleading statements about the joint venture between Allianz
Australia Limited and HIH.  These statements related to the
effect of the joint venture on HIH's cashflow and Allianz's
payment of AU$200 million to HIH.

A report from The Australian relates that the company's failed
verification process led Mr. Cohen to wrongly tell shareholders
that the company would receive the AU$200 million.

At a hearing held in Sydney's Downing Centre on Jan. 31, 2007,
Mr. Cohen's counsel, Ian Temby, QC, argued that neither his
client nor his fellow directors had any idea the money was
actually slated for a trust and could never be used to help
HIH's cash flow, The Australian relates.

Mr. Temby asserted that a staff member in the public affairs
department had not properly checked the speech, which Mr. Cohen
did not write, the paper says.

Mr. Cohen faces a three-year jail term if found guilty, The
Australian notes.

Magistrate Christine Haskett will decide on April 27 whether Mr.
Cohen will face a jury trial over the charges, The Australian
relates, noting that Mr. Cohen's bail continues.

                     About HIH Insurance

HIH Insurance Limited -- the holding company of the HIH Group --
was a publicly listed company in Australia.  Prior to its
collapse, the HIH Group was known as the second largest general
insurer in Australia, and had operations in many other
countries.

On March 15, 2001, the HIH Group failed, with a deficiency now
believed to be between AU$3.6 billion and AU$5.3 billion.  
Provisional liquidators were appointed to HIH Insurance Limited
and many of its subsidiaries.  Other insolvency practitioners
were appointed to various group companies incorporated in other
parts of the world.  In August 2001, the major Australian
companies in the HIH Group were placed into liquidation.

On March 29, 2006, meetings of the creditors of the eight
companies in the HIH Insurance Group approved the Australian
Schemes of Arrangement for those companies.  Moreover, separate
meetings of creditors of four HIH Insurance Group companies with
branches in the United Kingdom approved English Schemes for
those companies.

HIH's collapse is known to be the nation's biggest corporate
failure.


INTERBATH AUSTRALIA: GMAC Appoints Receivers and Managers
---------------------------------------------------------
On Jan. 15, 2007, GMAC Commercial Finance LLC appointed Menzies
Carson and Rodney James Slattery as joint and several receivers
and managers of Interbath Australia Pty Ltd.

The Joint Receivers and Managers can be reached at:

         Menzies Carson
         Rodney James Slattery
         PPB Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria
         Australia

                    About Interbath Australia

Interbath Australia Pty Ltd is a distributor of home
furnishings.

The company is located in Victoria, Australia.


LIB MANAGEMENT: To Declare First and Final Dividend on March 23
---------------------------------------------------------------
LIB Management Pty Ltd will declare a first and final dividend
for its creditors on March 23, 2007.

In this regard, creditors are required to submit their proofs of
debt by March 9, to be included in the dividend distribution.

As reported by the Troubled Company Reporter - Asia Pacific, the
company was placed under members' voluntary liquidation on
Aug. 14, 2006.

The liquidator can be reached at:

         Michael Owen
         BDO Kendalls
         Level 18, 300 Queen Street
         Brisbane, Queensland 4000
         Australia

                      About LIB Management

LIB Management Pty Ltd provides business services.

The company is located in Queensland, Australia.


PAN PHARMACEUTICALS: James Selim Pleads Not Guilty
--------------------------------------------------
On Feb. 2, 2007, James Selim, the former chief executive officer
and managing director of Pan Pharmaceuticals Limited, pleaded
not guilty in the Supreme Court of New South Wales in Sydney in
relation to four charges brought by the Australian Securities
and Investments Commission.

The charges relate to Mr. Selim's provision of information to
the directors of Pan Pharmaceuticals between February 2003 and
April 2003.

It is alleged that the information Mr. Selim gave the directors
omitted certain details, which rendered the information
misleading in a material respect.  This information relates to
an investigation by the Therapeutic Goods Administration into
Travacalm and Pan Pharmaceuticals.

The case against Mr. Selim follows an investigation by the ASIC
that commenced in April 2003.  Mr. Selim was charged in the
Downing Centre Local Court on Sept. 28, 2004, and he was
committed for trial in the Balmain Local Court on Dec. 18, 2006.

The Australian Securities Exchange Limited assisted in this
matter.

The hearing is set for Oct. 15, 2007, before the Supreme Court
of New South Wales.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

                    About Pan Pharmaceuticals

On May 22, 2003, Anthony Gregory McGrath & Christopher John
Honey of McGrathNicol+Partners were appointed as administrators
for Pan Pharmaceuticals Limited and its subsidiaries:

   1. Pan Pharmaceuticals Services Pty Limited;
   2. Pan Pharmaceuticals Exports Pty Limited;
   3. Pan Laboratories (Australia) Pty Limited; and
   4. Pan Pharmaceuticals Technologies Pty Limited

On Sept. 23, 2003, the creditors of Pan rejected a proposal for
a Deed of Company Arrangement submitted by Fred Bart and Jim
Selim.  Subsequently on the same day, the creditors of Pan and
Laboratories resolved that these two companies be wound-up.

On Oct. 21, 2003, the creditors of Services, Exports, and
Technologies resolved to place these three companies into
liquidation.

                        Sale of business

Since their appointment, the Administrators and the Liquidators
have overseen a major upgrade of Pan's facilities, processes,
and documentation.  On Oct. 1, 2003, the Therapeutic Goods
Administration advised that it was satisfied that Pan was
compliant with the Australian Code of GMP for Medicinal Products
with respect to the manufacture of soft gelatine capsules that
are required to be listed in the Australian Register of
Therapeutic Goods, and that reinstatement of the company's soft-
gel license could be recommended.  The TGA issued the soft-gel
license on Nov. 4, 2003.

After the reinstatement of the soft-gel license, the Liquidators
recommenced the sale process for the Pan business.  The
Liquidators offered the assets as a going concern and accepted
an offer of AU$20 million.  Settlement occurred on Dec. 15,
2003.

The business and assets of Pan have been sold to Sphere
Healthcare Pty Ltd.

                    No Dividend Distribution

On Nov. 12, 2003, the Liquidators executed a declaration for the
purposes of Section 104-145 of the Income Tax Assessment Act
that there is no likelihood that shareholders will receive a
dividend from the winding up.


PRUDENTIAL-BACHE: Members Agree on Voluntary Wind-Up
----------------------------------------------------
At a general meeting held on Dec. 22, 2006, the members of
Prudential-Bache Securities (Australia) Pty Ltd resolved to
voluntarily wind up the company's operations and appointed Gary
Francis Westbrook as liquidator.

Accordingly, Mr. Westbrook requires the company's creditors to
submit their proofs of claim by Feb. 20, 2007.

The Liquidator can be reached at:

         Gary F. Westbrook
         T. H. White & Co
         1st Floor, 184 Barkly Street
         St Kilda, Victoria 3182
         Australia

                      About Prudential-Bache

Prudential-Bache Securities (Australia) Pty Ltd is a security
broker and dealer.

The company is located in Victoria, Australia.


STADIUM AUSTRALIA: Posts AU$22.20-Mil. Loss For 2006 Half-Year
--------------------------------------------------------------
Stadium Australia Group posted a consolidated revenue of
AU$22.20 million for the half-year ending June 30, 2006, against
the AU$19.91 million recorded for the half-year ending June 30,
2005, the company said in its half-year report.

For the period in review, the company had a net loss of
AU$7.90 million, against a net loss of AU$645,000 the year
before.

The company, trust and group have net liability positions of
AU$6.38 million, AU$58.55 million and AU$64.93 million as of
June 30, 2006.

Stadium Australia Group owns and operates Telstra Stadium, which
comprise Stadium Australia Trust (SAT) and Stadium Australia
Management Limited (SAM).  SAG's principal activities include
the operation, management and maintenance of Telstra Stadium.  
The Telstra Stadium has a seating capacity of 80,000
approximately.  During the year ended Dec. 31, 2005, the company
hosted 27 events.  In 2005, it has rebranded Telstra Stadium as
Australia's Home Ground.  During the same period, SAG hosted
Australia's three national football teams, the Wallabies, the
Kangaroos and the Socceroos.  During 2005, the Company has
signed hiring agreements with Australian Rugby Union, NSW Rugby
Union, Bulldogs and South Sydney Rabbitohs.


STADIUM AUSTRALIA: SIPL Gets 51.5%; Angles For Remaining Sec.
-------------------------------------------------------------
Stadium Australia Group directors unanimously recommend that the
company's shareholders accept an offer made by Stadium
Investments Pty Ltd, a company ultimately owned by ANZ Bank.

SIPL announced to the Australian Stock Exchange that it had now
acquired 51.50% of stapled securities in Stadium Australia
Group.  SIPL also announced that the offer for SAG securities is
unconditional.

The recommendation came in the absence of a superior offer to
buy out all the remaining stapled securities and convertible
notes of SAG.  The offer is scheduled to close on Feb. 5, 2007.

Stadium Australia Group owns and operates Telstra Stadium, which
comprise Stadium Australia Trust (SAT) and Stadium Australia
Management Limited (SAM).  SAG's principal activities include
the operation, management and maintenance of Telstra Stadium.  
The Telstra Stadium has a seating capacity of 80,000
approximately.  During the year ended Dec. 31, 2005, the company
hosted 27 events.  In 2005, it has rebranded Telstra Stadium as
Australia's Home Ground.  During the same period, SAG hosted
Australia's three national football teams, the Wallabies, the
Kangaroos and the Socceroos.  During 2005, the Company has
signed hiring agreements with Australian Rugby Union, NSW Rugby
Union, Bulldogs and South Sydney Rabbitohs.

For the half-year ended June 30, 2006, the company had a net
loss of AU$7.90 million, against a net loss of AU$645,000 the
year before.  Moreover, the company, trust and group had net
liability positions of AU$6.38 million, AU$58.55 million and
AU$64.93 million as of June 30, 2006.


WRIGHTS HOUSE: To Declare Dividend for Priority Creditors
---------------------------------------------------------
Wrights House Removers Pty Ltd, which is in liquidation, will
declare a first and final dividend for its priority creditors on
Feb. 26, 2007.

Failure to prove debts by Feb. 19, 2007, will be exclude
priority creditors from sharing in the dividend distribution.

The joint and several liquidators can be reached at:

         Terry Grant van der Velde
         Paul Desmond Sweeney
         c/o SV Partners Pty Ltd
         Insolvency Accountants and Risk Managers
         Australia
         Web site: http://www.svpartners.com.au

                      About Wright's House

Wright's House Removers Pty Ltd --
http://www.wrightshouseremovers.com-- provides expert building  
services, renovations, removals and slides on site.

The company is located in Queensland, Australia.


* Australia's Smaller FIs Face Uphill Battle, Fitch Says
--------------------------------------------------------
On Feb. 2, 2007, Fitch Ratings commented that it expects
Australia's smaller financial institutions to find it
increasingly difficult to maintain their sound financial and
risk profiles in an increasingly competitive retail-banking
environment in 2007.  The agency also noted that these
institutions may not be as well-positioned to withstand a
tougher banking environment when compared with their larger and
more diversified Australian bank peers.

"In the face of intense competition, narrower margins on
mortgages and slower housing credit growth, smaller FIs may be
tempted to diversify into unfamiliar geographic and higher-risk
product markets," said Tim Roche, associate director in Fitch's
Financial Institutions group, in a report entitled "Australia's
Smaller Financial Institutions: Semi-Annual Review and Outlook".

Mr. Roche added that there may also be a decline in underwriting
standards and increased merger activity in a bid to achieve
growth and profitability targets.  Such strategies, if not
managed prudently, could result in an increase in their longer-
term risk profiles and asset quality deterioration.

In response to intense competition for mortgages and net
interest margin pressure, Australia's smaller regional banks
have increased their exposure to small-to-medium enterprises,
which, while helping to boost margins, may heighten their
overall risk profile over time.  However, these portfolios
remain modest as a proportion of the banks' total loan books at
the present time. Banks that can successfully attain alternative
income streams such as wealth management, insurance and product
alliances (which foster cross-selling opportunities) will be
better placed to withstand margin contraction in their core
lending businesses.

Australia's building societies and credit unions have profited
from focusing on core retail deposits, mortgage lending and
personal loans, although typically within a limited geographic
region.  As previously highlighted in a special report in June
2006 entitled "Squeezed at the Margins - A Study Of Australia's
Smaller Financial Institutions", finance brokers have become an
important distribution channel for building societies and credit
unions seeking growth outside their region.  Although the use of
brokers has provided smaller FIs with a level of geographic
diversification, Fitch will remain alert to any evidence of
weakening in underwriting standards and associated credit
quality that may arise as FIs seek to achieve growth targets
using brokers.

"Consolidation activity during 2006 highlights the pressure on
Australia's smaller FIs to maintain robust and diversified
earnings capabilities," Mr. Roche said.  "The agency expects
consolidation to continue in FY07 as these entities seek asset
growth and economies of scale in a highly competitive retail
banking market."  Although there are no signs that either is
imminent a housing market downturn and/or a significant rise in
unemployment are also potential threats to the future credit
quality of Australia's smaller FIs.

A copy of the agency's report will be available on its Web
sites, http://www.fitchratings.com/and  
http://www.fitchratings.com.au/


* Australia' December Trade Deficit Widens to AU$1.33B, ABS Says
----------------------------------------------------------------
Australia's balance on goods and services was a deficit
AU$1.336 billion, seasonally adjusted, in December, from an
upwardly revised AU$897 million in November, the Australian
Associated Press cites the Australian Bureau of Statistics, as
saying.

According to the AAP, economists were expecting a deficit of
AU$1 billion for the month.

Citigroup senior economist Annette Beacher said a 4% fall in
rural goods exports in December also attributed to the widening
of the trade deficit, as the drought began to bite, The Age
relates.

However, the paper says according to JP Morgan economist,
Stephen Walters, the increase in spending on imported capital
goods is a sign that businesses are investing in capacity, which
may help boost future exports.

The Age relates that rising imports are a sign of underlying
strength in the economy, Commonwealth Bank of Australia
economist Joseph Capurso said, noting that the Reserve Bank of
Australia is unlikely to be swayed by these results.

"They are more concerned with last week's inflation figures,
which were very low," Mr. Capurso asserted.


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

BEAUTY GLOW: Members' Final Meeting Slated for February 27
----------------------------------------------------------
The final meeting of the members of Beauty Glow Ltd will be held
on Feb. 27, 2007, at 9:00 a.m., to consider the liquidator's
accounts of the company's wind-up proceedings and property
disposal exercises.

As reported by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on June 21, 2006.

The liquidator can be reached at:

         Wong Kam Hung
         Flat E2, 7th Floor
         Villa Monte Rosa
         41A Stubbs Road
         Hong Kong


CITY TELECOM: Moody's Keeps B2 Corporate Family Rating
------------------------------------------------------
Moody's Investors Service on Feb. 1. 2007, has affirmed its B2
corporate family rating and senior unsecured bond rating for
City Telecom Ltd, and at the same time has revised the company's
rating outlook to positive from stable.

"The positive outlook reflects CTI's improved operating
performance with EBITDA margin rising to 24% and Debt/EBITDA
improving to 3.5x in FY2006.  This has been as a result of a
change in its business strategy from building subscriber market
share to capturing revenue market share, as well as the benefits
of its operational cost containment program," says Laura Acres,
a Moody's VP/Senior Analyst.

"Furthermore, the change in strategy has resulted in a slowdown
in capex and a commensurate improvement in the company's
financial position, in particular in its balance sheet strength
and overall liquidity.  This, combined with planned capex being
funded out of operating cash flow and CTI's ability to increase
revenues with a lower subscriber base, substantiates the change
in outlook to positive," adds Acres.

The B2 rating continues to reflect CTI's position as the largest
residential alternative wire-line provider and third largest
broadband provider in Hong Kong.  It also takes into account the
benefits derived from CTI's advanced and self-owned network.  
This network includes 1.3 million home passes and is unlikely to
be replicated by any competitors over the short to medium term.

At the same time, the rating reflects CTI's high financial
leverage and weak credit metrics which continue to constrain the
rating.  Nevertheless, Moody's believes that 2006 was a
watershed year for CTI and that its future outlook is positive.

In terms of Moody's rating methodology for the Global
Telecommunications Industry, CTI's operating and financial
profile is consistent with a Ba3 rating.  However, the B2 rating
also reflects other key considerations, including the inherent
risks involved in CTI's pursuit of its long-term business plan
to expand network coverage and grow its subscriber base in a
highly competitive environment.

Upward rating pressure would arise if CTI achieves:

   -- continuing growth in EBITDA;

   -- an increase in EBITDA margins to 30-35% such that they are
      in line with industry norms;

   -- (EBITDA--Capex)/Interest expense moving into positive
      territory on a consistent basis; and

   -- a minimum cash balance of HK$200 million.

On the other hand, outlook would revert to stable if CTI fails
to:

   -- generate revenue growth;

   -- EBITDA margins deteriorate;

   -- (EBITDA-Capex)/Interest becomes negative; and

   -- unencumbered cash balances fall below HK$200 million.

Established in 1992 and listed on the Hong Kong Stock Exchange
in 1997, CTI is a wire-line only telephony company in Hong Kong
offering IDD and fixed telecommunication network services.  
Through its wholly owned subsidiary, Hong Kong Broadband Network
Ltd, CTI provides broadband services, telephony, IP-TV and
corporate data services with its self-built Metro Ethernet IP
network.


FORTUNE MIND: Schedules Final Meeting on February 28
----------------------------------------------------
Fortune Mind Enterprise Ltd will hold a final meeting on
Feb. 28, 2007, at 10:00 a.m., to consider the liquidators'
accounts of the company's wind-up proceedings and property
disposal activities.

The Troubled Company Reporter - Asia Pacific reported that the
company commenced liquidation on Aug. 16, 2006.

The joint and several liquidators can be reached at:

         Stephen Liu Yiu Keung
         Robert Armor Morris
         18/F., Two International Finance Centre
         8 Finance Street Central
         Hong Kong


FUSION COMPUTER: Members Pass Resolution to Wind-Up Firm
--------------------------------------------------------
At an extraordinary general meeting held on Jan. 26, 2007, the
members of Fusion Computer Ltd passed a resolution to
voluntarily wind up the company's operations.

Accordingly, Liu Chi Tat Stephen was appointed as liquidator.

The Liquidator can be reached at:

         Liu Chi Tat Stephen
         Room 1304, C C Wu Building
         302-8 Hennessy Road, Wanchai
         Hong Kong


GLOBALINK TECHNOLOGY: Wind-Up Hearing Set for February 27
---------------------------------------------------------
A liquidation petition filed against Globalink Technology
Development Ltd will be heard before the High Court of Hong Kong
on Feb. 27, 2007, at 9:30 a.m.

Wang Hwa Shan filed the petition with the Court on Dec. 27,
2006.

Wang Hwa's solicitors can be reached at:

         Tai, Mak & Partners
         Rooms 1004-1005, 10/F Nan Fung Tower
         No. 173 Des Voeux Road, Central
         Hong Kong
         Telephone: 2850-6336
         Facsimile: 2850-6086


GLORY ASSET: Court to Hear Wind-Up Petition on February 14
----------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition filed
against Glory Asset Ltd on Feb. 14, 2007, at 9:30 a.m.

The Commissioner of Inland Revenue filed the petition on Dec. 8,
2006.

The CIR's solicitor can be reached at:

         Sara Chung
         Department of Justice
         2/F, High Block Queensway Government Offices
         66 Queensway
         Hong Kong


GRACEROCK LIMITED: Creditors' Proofs of Debt Due on Feb. 26
-----------------------------------------------------------
The creditors of Gracerock Ltd are required to submit their
proofs of debt by Feb. 26, 2007, to be included in the company's
distribution of dividend.

According to the Troubled Company Reporter - Asia Pacific, the
company was placed under voluntary wind-up on Jan. 16, 2007.

The liquidator can be reached at:

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


HONG KONG & KOWLOON: Liquidator Ceases to Act
---------------------------------------------
On Jan. 16, 2007, Cheng Faat Ting Gary ceased to act as
liquidator of Hong Kong & Kowloon Painting Trade Employers
Association Ltd.

According to the Troubled Company Reporter - Asia Pacific, the
company's members received Mr. Cheng's report regarding the
company's wind-up on Oct. 16, 2006.

The former Liquidator can be reached at:

         Cheng Faat Ting Gary
         8/F, Richmond Commercial Building
         109 Argyle Street
         Mongkok, Kowloon
         Hong Kong


LEGEND INTERNATIONAL: Court Appoints Joint Liquidators
------------------------------------------------------
On Dec. 22, 2006, the High Court of Hong Kong appointed Fernando
Gaspar and David Giles Maund as joint and several liquidators of
Legend International Resorts Ltd.

As reported by the Troubled Company Reporter - Asia Pacific, the
Court entered an order on June 9, 2006, to wind up the company's
operations.

The Joint and Several Liquidators can be reached at:

         Fernando Gaspar
         David Giles Maund
         Alvarez & Marsal Asia Limited
         5/F Allied Kajima Building 138
         Gloucester Road, Wanchai
         Hong Kong


METRON TECHNOLOGY (HK): Members to Receive Wind-Up Report
---------------------------------------------------------
The members of Metron Technology (Hong Kong) Ltd will meet on
Feb. 27, 2007, at 10:00 a.m., to receive a report of the
company's wind-up proceedings and property disposal exercises
from the liquidators.

As reported by the Troubled Company Reporter - Asia Pacific, the
company's shareholders resolved to wind up the company's
operations on Sept. 7, 2006.

The joint liquidators can be reached at:

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


NETEGRITY CHINA: Creditors Must Prove Debts by February 25
----------------------------------------------------------
The creditors of Netegrity China Ltd are required to submit
their proofs of claims by Feb. 25, 2007.  

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

The Joint and Several Liquidators can be reached at:

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


TAOHO DESIGN: Members and Creditors to Meet on February 27
----------------------------------------------------------
The members and creditors of Taoho Design Architects Ltd will
meet on Feb. 27, 2006, at 10:30 a.m., to receive the
liquidator's account of how the company was wound up and its
properties disposed of.

The liquidator can be reached at:

         Kenny King Ching Tam
         17/F., 23 Wing Wo Street
         Central
         Hong Kong


TRADEFIT INVESTMENTS: Members Opt to Wind-Up Firm
-------------------------------------------------
The members of Tradefit Investments Ltd met on Jan. 29, 2007,
and decided to voluntarily wind up the company's operations.

In this regard, Fung Kit Yee was appointed as liquidator and was
authorized to distribute the company's assets to its members.

The Liquidator can be reached at:

         Fung Kit Yee
         3/F, Chinachem Tower
         34-37 Connaught Road, Central
         Hong Kong


* Fitch Sees Varied Outlook for Hong Kong Property Industry
-----------------------------------------------------------
Fitch Ratings said on Feb. 1, 2007, that the Hong Kong property
market continues to benefit from the strong macroeconomic
conditions seen since 2003.  However, the agency views that the
outlooks for the different market segments will vary in 2007,
with the luxury residential property market expected to
outperform the mass residential property sector.

"One of the key themes to have emerged in recent years is the
divergence between the mass and luxury residential property
markets," said Michael Wu, associate director in Fitch's Asia
Corporates team, in a special report on the outlook for Hong
Kong's property market this year.  "Hong Kong's residential
property sector is no longer one single homogenous market due to
fundamental changes to the economy since 1997, resulting in a
widening of the difference between the purchasing powers of end-
users of mass market and luxury properties," said Mr. Wu.  He
further explained that the city has moved from a stage of fast
growth to stable growth, typical of most mature economies.  
Additionally, the ongoing economic integration with mainland
China has led to a buoyant financial services sector and a
consistent supply of low cost labour.

"The mass residential property market is expected to be stable
this year as many positive factors, such as a strong economy and
easy availability of mortgage credit will continue to provide
solid support to the market," said Mr. Wu.  However, the agency
warned that the demand-supply imbalances may counteract the
support provided by strong macro fundamentals.  Fitch also noted
that the general view in the market now is that the demand for
new units will be around 15,000 units per annum compared to an
annual average of 20,000+ units for the period between 2000 and
2004.  The drop in demand as well as the expected maximum
potential supply of new units, which could exceed 60,000 units
in the next two years, may have a dampening effect on the
market.  The low single digit average wage growth, together with
the increasing purchase of mainland China residential properties
by Hong Kong residents, may also subdue the market, Mr. Wu
added.

Fitch is more positive on the future of Hong Kong's luxury
residential property market, largely due to the increasing
demand from overseas investors, primarily mainland Chinese and
the strong performance of the top-income-generating financial
services sector.  In addition, the supply of luxury units in
traditional high-end residential districts is still rather
limited.

The report, entitled "2007 Hong Kong Property Market Outlook"
also highlights that the office property sector is also expected
to demonstrate divergence in performance.  After four
consecutive years of strong overall growth in rentals, the
outlook for office properties in and around the Central business
district remains positive, whereas other districts may see
corrections.  "The favorable outlook on the financial services
sector, which leads to greater demand for office space, and the
sector's lack of location flexibility, will continue to underpin
demand for office floor space in and around the Central business
district," said Mr. Wu.  However, new supply of office space is
expected to put pressure on rental levels in non-core districts.

The agency expects the outlook for the retail property market to
be stable, with rental levels at prime shopping malls expected
to move within a tight range.  Despite strong retail sales and
tourism growth, competition in the retail property sector is
expected to intensify as a result of significant increase in new
supply of office space.  Fitch notes that a number of new major
quality shopping centres with a total floor space of over three
million square feet, are scheduled for completion in 2007 and
2008.


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

EASTMAN KODAK: Moody's Continues Ratings Review, May Downgrade
--------------------------------------------------------------
Moody's Investors Service commented that its continuing review
for possible downgrade for the Eastman Kodak Company is focused
on not only the company's reported sale of the Kodak Health
Group, but also on the fundamental operating performance of the
company.

The review for possible downgrade continues to focus on the
potential KHG sale consummation, the application of KHG sale
proceeds toward debt reduction as well as other uses, Kodak's
prospects to grow earnings and cash flow, including the effects
of non-recurring licensing arrangements, and the company's
management of restructuring and KHG separation costs.

Based on Kodak's results reported [Wednes]day, Moody's believes
that the company's revenue, earnings, and cash flow remain
challenged relative to cross industry peers rated B1.

"Based on Moody's estimates, the company achieved its 2006
guidance for digital revenue growth and cash flow only through
non-recurring licensing arrangements and the company did not
meet its guidance for digital earnings" commented John Moore,
VP/Senior Analyst.

"However, as evidenced in its [reported 2006 earnings], the
company has delivered on its goal set in early 2006 to reduce
debt by US$800 million" Moore added.

The company reported about 4% 2006 digital revenue growth
compared to its twice revised 2006 digital revenue growth target
guidance.

Kodak generated US$343 million 2006 digital earnings.  This
US$343 million is slightly below its 2006 digital earnings
guidance of between US$350 million and US$450 million and is a
US$271 million improvement over fiscal 2005 results.

The company reported US$592 million 2006 Investible Cash Flow
and achieved its 2006 US$400 million to US$600 million
Investible Cash Flow guidance.  Moody's notes that this US$592
million includes about US$315 million cash flow from non-
recurring licensing arrangements.

Ratings on Review for Possible Downgrade:

   -- Corporate Family Rating B1
   -- Senior Unsecured Rating B2
   -- Senior Secured Credit Facilities Ba3

Headquartered in Rochester, New York, the Eastman Kodak Company
is a worldwide provider of imaging products and services.

                          *     *     *

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


EASTMAN KODAK: Earns US$17 Million in Fourth Quarter of 2006
------------------------------------------------------------
Eastman Kodak Company reported fourth-quarter net earnings from
continuing operations of US$17 million, on lower year-over-year
revenues, reflecting cost reduction efforts that boosted
earnings and an emphasis on pursuing profitable sales.  The
company achieved US$271 million in digital earnings for the
fourth quarter, driven by wider gross profit margins and the
company's global cost-reduction initiatives, resulting in strong
earnings improvement in the company's Consumer Digital and
Graphic Communications businesses.

The company also delivered a US$271 million increase in digital
earnings for the full year.  Significantly, digital earnings
growth for the year exceeded the traditional earnings decline
for the first time in the company's history.

    For the fourth quarter of 2006:

    --  Sales totaled US$3.821 billion, a decrease of 9% from
        US$4.197 billion in the fourth quarter of 2005.  Digital
        revenue totaled US$2.449 billion, a 5% decrease from
        US$2.587 billion in the prior-year quarter, consistent
        with the company's focus on improving digital profit
        margins.  Traditional revenue totaled US$1.357 billion,
        a 15% decline from US$1.592 billion in the fourth
        quarter of 2005.

    --  The GAAP earnings from continuing operations were
        US$17 million, compared with a GAAP loss from continuing
        operations of US$137 million in the year-ago period.

    --  The company's fourth-quarter earnings from continuing
        operations, before interest, other income (charges),
        net, and income taxes were US$222 million, compared with
        a loss of US$171 million in the year-ago quarter.

    --  Digital earnings for the fourth quarter were US$271
        million, an increase of US$130 million compared with the
        year-ago quarter, and benefited from a number of items.  
        The company generated significant earnings growth in its
        Graphic Communications business and achieved operational
        improvements in its Consumer Digital Group, including a
        year-over-year increase in income from licensing
        arrangements, which reflects the company's continuing
        progress in generating returns from its intellectual
        property.

Commenting on the results, Antonio M. Perez, Chairman and Chief
Executive Officer, Eastman Kodak Company, said, "I am extremely
pleased with our performance in 2006 and our progress in
implementing our digital business model.  Our digital earnings
greatly exceeded traditional earnings in the fourth quarter.
Profit margins expanded in the sizeable digital businesses that
we have assembled, debt declined by more than US$800 million in
2006, and the year ended with a strong cash position.  We intend
to conclude our restructuring this year, as part of the creation
of a digital company with sustainable revenue and profit
growth."

    Other fourth-quarter 2006 details:

    --  Net cash provided by operating activities from
        continuing operations for the fourth quarter totaled
        US$1.028 billion, compared with US$1.240 billion in the
        year-ago quarter.  Net cash generation (formerly
        investable cash) was US$916 million, bringing full-year
        net cash generation to US$592 million, which is at the
        upper end of the range provided by the company.  Full-
        year net cash provided by operating activities from
        continuing operations totaled US$956 million

    --  Kodak held US$1.469 billion in cash as of December 31,
        2006, compared with US$1.665 billion on December 31,
        2005.

    --  Debt decreased US$561 million from the third-quarter
        level, to US$2.778 billion as of December 31, 2006.  For
        the full-year 2006, debt decreased US$805 million.

    --  Selling, General and Administrative expenses decreased
        US$172 million from the year-ago quarter, primarily
        reflecting the company's cost reduction activities.  
        SG&A as a percentage of revenue was 15.6%, down from
        18.3% in the year-ago quarter, amplified by seasonally
        strong fourth-quarter revenue.

    --  Gross profit margins were 26.4% in the current quarter,
        up from 23.0% in the prior year quarter.  This was
        driven by operational improvements across the company's
        business units, most notably KODAK PICTURE kiosks, the
        KODAK GALLERY, and the favorable impact of the
        previously noted Licensing arrangements.  The company
        also benefited from reduced restructuring costs.

Fourth-quarter segment sales and results from continuing
operations, before interest, other income (charges), net, and
income taxes (earnings from operations), are as follows:

    --  Consumer Digital Group earnings from operations were
        US$150 million, compared with US$40 million a year ago,
        on sales of US$1.154 billion, which were down 13% from
        the prior-year quarter, consistent with the company's
        focus on improving digital profit margins.  On a full
        year-over-year basis, earnings from operations improved
        by US$132 million.

        Highlights for the quarter included a 27% increase in
        sales of KODAK PICTURE kiosks, of which 52% was a volume
        increase in related thermal media sales, a significant
        earnings improvement in the KODAK GALLERY, and an
        increase in income from licensing arrangements.  
        According to the NPD Group's consumer tracking service,
        KODAK EASYSHARE digital cameras were number one in unit
        market share in the U.S. for the fourth quarter and full
        year of 2006.

    --  Graphic Communications Group earnings from operations
        were US$57 million, compared with US$28 million in the
        year-ago quarter, on sales of US$974 million, which were
        up 3% from the prior-year quarter.  On a full year-over-
        year basis earnings from operations improved by US$182
        million.  The sales growth largely reflects increased
        demand for NEXPRESS Color Presses and digital plates,
        partially offset by a decline in NEXPRESS Black & White
        Printers and the traditional product portfolio.

    --  Film and Photofinishing Group earnings from operations
        were US$77 million, compared with US$51 million a year
        ago, on sales of US$1.013 billion, which were down 16%
        from the prior-year quarter.  During the fourth quarter
        of 2006, the group achieved an 8% operating margin,
        double the rate of the year-ago quarter and in line with
        company expectations.

    --  Health Group segment earnings from operations were
        US$86 million, compared with US$87 million a year ago,
        despite substantial costs associated with the
        divestiture effort and increased costs for silver.  
        Sales for this segment were US$660 million, down 6%.
        Highlights for the quarter included sales increases in
        Healthcare Information System, digital dental products,
        and digital capture, offset by declines in traditional
        radiography and digital output.

        The company announced on January 10th that it has
        Reached an agreement to sell the Health Group to Onex
        for as much as US$2.55 billion.  The transaction is
        expected to close in the first half of 2007.

    Other 2006 Highlights:

    --  The company's net loss narrowed by US$754 million from a
        negative US$1.354 billion in 2005 to a negative US$600
        million in 2006.  The favorable year-over-year change
        reflects greatly improved operational performance in the
        company's Consumer Digital, Graphic Communications, and
        Film and Photofinishing businesses.  It also reflects a
        year-over-year decrease in restructuring charges,
        reduced SG&A expenses and lower tax valuation allowances
        versus the prior year.

    --  On a full-year basis, the company posted US$343 million
        in digital earnings, a nearly five-fold improvement
        year-over-year, and close to the company's aggressive
        target for the year.

    --  Net cash provided by operating activities from
        continuing operations totaled US$956 million for the
        year, compared with US$1.180 billion in 2005, at the
        upper end of the company's forecasted range.

"I'm proud of my team and their accomplishments in 2006, and our
results reflect our progress in becoming a more profitable
company," said Mr. Perez.  "We delivered on every important goal
that we set, with the exception of digital revenue growth, where
we made a specific decision to focus on overall digital profit
margins over revenue growth.  Kodak is now a company with a
strong market position in a significant number of digital
categories. We enter 2007 with solid momentum, a strong emphasis
on sustaining profitable growth, and the talent and resources
necessary to generate value for our shareholders."

                      About Eastman Kodak Co.

Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK) -- http://www.kodak.com/-- develops, manufactures, and  
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.

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

                          *     *     *

Eastman Kodak Co. carries these Moody's Investors Service
ratings:

   -- Corporate Family Rating B1
   -- Senior Unsecured Rating B2
   -- Senior Secured Credit Facilities Ba3


INDUSIND BANK: Net Profit Down 21% in Qtr. Ended Dec. 31, 2006
--------------------------------------------------------------
Indusind Bank Ltd. posted a net profit of INR216.30 million for
the quarter ended Dec. 31, 2006, down 21% from the
INR273.7 million booked in the corresponding quarter in 2005.

Total income, however, increased 34% from INR3.522 billion in
the quarter ended Dec. 31, 2005, to INR4.723 billion in the 4th
quarter of 2006.  Expenditures rose by 31% from INR3.077 billion
in the December 2005 quarter to INR4.025 billion.

The drop in the Indusind Bank's profit could be attributed to
higher provisions in the current quarter under review.  The bank
provided INR374.9 million for provisions and contingencies in
the three months ended Dec. 31, 2006, compared to INR357.3
million booked in the corresponding quarter in 2005.

A copy of the bank'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?1961

Headquartered in Pune, India, Indusind Bank Ltd. --
http://indusind.com/-- offers corporate banking  services,  
including working capital finance, term loans, trade
and transactional services, foreign exchange and cash management
services.  The bank also offers international banking products
and services to its clients.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 8, 2006, Fitch Ratings gave the bank an Individual
Rating of 'D.'


INDUSIND BANK: To Issue 3,00,00,000 Shares in GDRs
--------------------------------------------------
Indusind Bank's filing with the Bombay Stock Exchange reveals
plans to issue Gross Depository Receipts equivalent to
3,00,00,000 shares with face value of INR30,00,00,000 during the
financial year ending March 31, 2007.

As disclosed in the BSE filing dated Jan. 29, Indusind's board
of directors approved in principle the bank's incurring of
expenses towards issuance of the GDR.  The move is pursuant to a
resolution passed at the bank's Annual General Meeting on Sept.
28, 2006.

The bank says that the pricing and other details would be
finalized after appointment of, and in consultation with the
lead managers of the transaction.

Headquartered in Pune, India, Indusind Bank Ltd. --
http://indusind.com/-- offers corporate banking  services,  
including working capital finance, term loans, trade
and transactional services, foreign exchange and cash management
services.  The bank also offers international banking products
and services to its clients.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 8, 2006, Fitch Ratings gave the bank an Individual
Rating of 'D.'


INDUSTRIAL DEVELOPMENT BANK: Files December 2006 Qtr. Financials
----------------------------------------------------------------
Industrial Development Bank of India Ltd posted a net profit of
INR1.268 billion for the quarter ended Dec. 31, 2006, a slight
increase from the INR1.193 gained in the corresponding quarter
in 2005.

The bank's total income rose 21% from INR15.482 billion in the
three months ended Dec. 31, 2005, to INR18.777 billion for the
quarter ended December 2006 quarter.

In the fourth quarter of 2006, the bank booked expenditures
totaling INR16.744 billion a 25% increase from the INR14.331
billion in the last quarter of 2005.

The bank's provisions for the quarter under review soared from
those booked in 2005.  

                     Dec. 2006 Qtr.         Dec. 2006 Qtr.
                     --------------         --------------
   Tax               (INR267.6 million)     (INR26.7 million)

   Other provisions
   & contingencies   (INR496.8 million)       INR69 million

A copy of the bank'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?1962

Industrial Development Bank of India -- http://www.idbi.com/--  
is a scheduled bank incorporated and registered under the
Companies Act, 1956, having its registered office at Mumbai,
India.  IDBI enjoys the status of a public financial
institution.  IDBI is also categorised under a new sub-group
'Other Public Sector Banks'.

The government of India holds 52.68% of the issued capital of
IDBI.  IDBI was originally established in 1964 as a wholly owned
subsidiary of RBI to provide credit and other facilities for the
development of industry.  In 1976, the ownership of IDBI was
transferred from RBI to the Central Government and IDBI was
entrusted with the additional responsibility of acting as the
principal development financial institution responsible for
coordinating the activities of institutions engaged in the
financing, promotion or development of industry.  

Pursuant to a scheme of amalgamation, The United Western Bank
Ltd. has been merged with IDBI effective from Oct. 3, 2006.

                          *     *     *

On Jan. 30, 2007, Standard & Poor's Ratings Services revised the
Bank Fundamental Strength Rating of IDBI to 'C' from 'D+'.

The Troubled Company Reporter - Asia Pacific reported on
July 28, 2006, that Moody's Investors Service assigned a D-
financial strength rating and Ba2/Not-Prime long- and short-term
foreign currency deposit ratings to Industrial Development Bank
of India Limited.  All ratings have stable outlooks.  The bank's
existing Baa2 foreign currency senior unsecured debt rating was
unaffected by this action.


KOTAK MAHINDRA BANK: Net Up 39% in Qtr. Ended Dec. 31, 2006
-----------------------------------------------------------
Kotak Mahindra Bank Ltd has released its unaudited stand-alone
and consolidated results for the quarter ended Dec. 31, 2006.

The bank posted a profit after tax of INR454.009 million for the
quarter ended Dec. 31, 2006, 39% higher than the
INR326.428 million reported in the corresponding quarter in
2005.

Total income soared to INR4.525 billion in the December 2006
quarter, almost twice the INR2.309 billion earned for the
quarter ended Dec. 31, 2005.

The bank's total expenditures also rose to INR3.432 billion in
the fourth quarter of 2006, an 85% increase from the INR1.853
billion incurred in the corresponding period in 2005.

As for consolidated results, the bank says that the group posted
a profit after tax of INR1.696 billion for the October-December
period in 2006, more than twice the INR818.103 million for the
quarter ended Dec. 31, 2005.  The group's total income sharply
rose from INR6.536 billion for the December 2005 quarter to
INR1.191 billion for the quarter ended Dec. 31, 2006.

"This quarter has seen robust growth in fee income and lending
activities," Uday Kotak, executive vice chairman & managing
director of the bank says.  "We continue to invest in expanding
our branch banking network and building the life insurance
business."

A full-text copy of Kotak Mahindra's standalone and consolidated
results for the quarter ended Dec. 31, 2006, is available for
free at the bank's Web site:

               http://ResearchArchives.com/t/s?1965

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'.


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

ALCATEL-LUCENT: Inks US$600-Mil. Deal With Nigeria's Globacom
-------------------------------------------------------------
Alcatel-Lucent has signed a series of new contracts with
Globacom, Nigeria's second national operator, to deploy
nationwide fixed and mobile networks as well as next-generation
IP/MPLS and optical network equipment.

The project, part of a major network development and IP
transformation, will enable Globacom to extend its network
capacity and performance and support the delivery of voice,
high-speed Internet access, and broadband multimedia services
such as video-on demand, videoconferencing, and broadcast video.
The overall value of the new contracts amounts to US$600
million.

Per the agreement, Alcatel-Lucent will deploy a new DWDM optical
transport network that will increase the capacity and extend the
reach of Globacom's existing infrastructure, broadening its
service offering to new areas.  Crossing more than 40 cities in
Nigeria, the new network will be the African continent's largest
DWDM backbone.

Globacom has selected Alcatel-Lucent's 1626 Light Manager multi-
reach DWDM equipment and data-aware Optical Multi-Service Node
systems.  The Alcatel-Lucent 1350 management suite will manage
all the optical networking equipment.  Furthermore, Alcatel-
Lucent will be in charge of the installation, commissioning, and
integration of the equipment.

Globacom will transform and migrate its data networks onto an
IP/MPLS network, leveraging Alcatel-Lucent's IP and data-aware
optical multi-service solutions.  The nationwide converged
network will support broadband data services both for GPRS and
3G UMTS as well as for future multimedia evolutions in Nigeria.
The project, which is part of a global network evolution to IP,
will also enable the operator to establish and guarantee end-to-
end quality of service, optimize its networks performance, and
support new multimedia services.

Globacom will also deploy Alcatel-Lucent's next generation
network portfolio to expand its mobile network.  Alcatel-
Lucent's NGN portfolio will enable Globacom to reduce the
operating costs of its mobile GSM core network while optimizing
its costs for the introduction of 3G/UMTSIservices, ensuring
long-term investment protection in preparation for the
introduction of IP Multimedia Subsystems, say Globacom
representatives.

Finally, Alcatel-Lucent will expand Globacom's national mobile
network capacity from its current 12 million subscribers to 35
million by the end of 2007.  This covers Alcatel-Lucent's multi-
standard radio access, core network, and transmissions
equipment. Alcatel-Lucent will also enable Globacom to triple
the capacity of its call center and handle both fixed and mobile
customers.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that  
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol 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.


BANK MANDIRI: May Provide Loans to Perusahaan Listrik Negara
------------------------------------------------------------
PT Bank Mandiri may provide as much as IDR3 trillion in loans to
state utility PT Perusahaan Listrik Negara to build power
plants, Bloomberg News reports, citing Bisnis Indonesia.

According to the report, Director Abdul Rachman said that part
of the loans will be used to fund the conversion of diesel-fired
power plants into steam power plants.

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

According to a report by the Troubled Company Reporter - Asia
Pacific on January 2, 2007, Fitch Ratings has affirmed all the
ratings of Bank Mandiri as follows:

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

   * Short-term rating 'B',

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

   * Individual 'D', and

   * Support '4'.

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

A TCR-AP report on May 29, 2006, Moody's Investors Service had
upgraded the Bank's subordinated debt rating to Ba3 from Ba1,
and its senior debt rating to Ba3 from Ba1, on higher foreign
currency bond ceilings.

Moody's has given Bank Mandiri an 'E' bank financial strength
rating.


BANK RAKYAT: Pefindo Upgrades Rating to 'idAA' from 'idAA-'
-----------------------------------------------------------
Pefindo upgraded its rating for PT Bank Rakyat Indonesia
(Persero) Tbk to 'idAA' from 'idAA-', while the Bank's
subordinated Bond I/2003 of IDR500 billion is upgraded to
'idAA-'.  The ratings actions reflect the Bank's superior
franchise in micro and retail business financing and favorable
profitability levels during the years under review.

However, the ratings have been mitigated by the Bank's
increasing non-performing loan ratio during the last three
years, although it remained moderate compared to its peers'.  

The Bank that was established in 1895 is the oldest bank in the
country and is long perceived as a bank for micro and retail
businesses.  With total assets of IDR135.2 trillion as of 1H06,
BBRI is regarded as the 4th largest bank in Indonesia,
controlling 8.9% market share of total assets banking industry.  

As of June 2006, BBRI's shareholders comprised of Government of
Indonesia (57.4%) and Public (42.6%).  To support its operation,
BBRI employs 38,126 people, located at all over of its 4,823
offices.  Besides its 982 self-owned ATM, the Bank has joined
cooperation with ATM Bersama, ATM Link and ATM BCA networks.

The ratings actions reflect the Bank's:

    * Superior franchise in micro and small-scale business
      financing.  Since its inception, BBRI has been intended to
      provide financing for micro and small-scale businesses.  
      In these two segments, BBRI has controlled a superb market
      share, supported by its extensive banking unit network
      delivered through myriad number of "BRI Unit", which as
      the end of June 2006 has reached 4,113 units located all
      over Indonesia.  As of June 30, 2006 almost 36% of the
      bank's total deposits originated from BRI Unit.

      In addition, BBRI has 329 branches (including 3 overseas
      branches), 187 sub-branches and 43 sharia branches, which
      made it well positioned as the largest bank in micro and
      small-scale business financing in the country.  As a
      micro-financing bank, BBRI has a very well diversified
      business portfolio, as reflected by its large number of
      customer base, small average funding and loan sizes, and
      relatively low concentration risks.  Although most of
      BBRI's loan products are fairly simple, they have gained
      satisfactory reception especially in rural areas due to
      their simple features and requirements.  This type of
      traditional banking products can be effectively marketed
      in areas which predominantly consist of less sophisticated
      customers.

      As of June 30, 2006, BBRI had 36.5 million deposit
      accounts (increased from 36.1 million in FY05 and 35.1
      million in FY04) and 5.2 million lending accounts (vs. 6.2
      million in FY05 and 5.9 million in (FY04).  Additionally,
      66% of its funding comprised of low cost funding such as
      demand and saving deposits.  With well-established
      franchise and extensive banking network, that are
      difficult to be replicated by competitors, it is expected
      that BBRI would still be able to maintain its superior
      market position in micro and retail business financing
going forward.

    * Favorable profitability level.  With a strong focus in
      micro and small-scale business financing, which
      represented around 88% of total loan portfolio as of 1H06,
      BBRI has been able to persistently maintain its
      profitability at favorable levels over the years.  As to
      date, BBRI's interest margin is still largely generated
      from micro-finance lending that is priced at 1%-1.5% per
      month or equivalent to an effective yield of 27-28% per
      annum (after incentive refund).
      
      In an effort to maintain its assets quality at a
      manageable level, BBRI gives an incentive refund of 25%
      from monthly interest rate to borrowers that pay their
      obligations on time.  The Bank's interest margin as
      measured by Net interest revenue/Total earning assets
      (av.) remained very high thanks to its favorable funding
      structure, standing at 10.7% as of 1H06 (vs. 11.1% in FY05
      and 11.6% in FY04) compared to peers' average of 5.4%,
      5.3%, and 5.6% during the period.  Meanwhile, the Bank's
      other operating income has consistently dropped from
      IDR1.4 trillion in FY04 to IDR390.3 billion in FY05 partly
      due to the declining value of its government bonds, of
      which around 67% consisted of fixed rate bonds.  The
      figures had increased to IDR609.2 billion as of 1H06
      following the interest decline.

      Nevertheless, the Bank's cost to income ratio remained
      manageable at 53.1% in 1H06 (vs. 55.5% in FY05 and 47.9%
      in FY04), while ROAA stayed relatively stable at 3.1% in
      1H06, 3.3% in FY05 and 3.6% in FY04, well above its peers'
      average of 1.5%, 1.4%, and 2.3% during the same period.

The ratings are mitigated by the Bank's:

    * Moderate non-performing loan ratio.  The Bank's NPL ratio
      is still considered moderate compared to its peers',
      although it has slightly weakened during the years under
      review.  The Bank's NPL ratio as measured by NPL (3-
      5)/Gross loans has slightly increased to 5.1% as of 1H06
      from 4.7% in FY05 and 4.2% in FY04 due to the relapsed of
      some big loans (including restructured loans) following
      the unfavorable macro economic condition.  As of June
      2006, approximately 15% of the Bank's total NPL was
      originated from corporate loans, while micro loans
      contributed around 1.7%.  Compared to other banks, the
      impact of BI new regulation PBI 7/2 on BBRI's NPL is very
      much less, as the Bank has focused on micro and SME
      financing.  In addition, the Bank has provided adequate
      reserves to cover its credit losses as evident by the
      Bank's ratio of loan loss provisions to total non-
      performing loans category 3-5 ratios that are standing
      favorably high at 141.7% in 1H06, 153.9% in FY05 and
      196.6% in FY04, respectively compared to its peers'
      average of 78.93%, 94.0% and 119.6%.

                              Outlook

A 'stable' outlook is assigned to the above ratings.  The
ratings have incorporated the Bank's commitment to still focus
on its core business, micro and SME markets that have been
proven to be less affected by the weakening macro economic
condition.  The Bank's extensive coverage supported by its
favorable financial performance should also provide a lot of
flexibility for the Bank to grow in the future.

                           About the Bank

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

                          *     *     *

A Troubled Company Reporter - Asia Pacific report on Feb 1,
2007, stated that Fitch Ratings has affirmed all the ratings of
Bank Rakyat Indonesia(Persero)Tbk 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 the ratings was revised to Positive from Stable.

A TCR-AP report on July 6, 2006, indicated that Moody's
Investors Service has placed Bank Rakyat Indonesia's D- bank
financial strength rating on review for possible upgrade.  BRI's
other ratings were unaffected:

   -- Subordinated debt of Ba3; and
   -- Long-term/short-term deposit ratings of B2/Not Prime.
      Outlook stable.


FREEPORT-MCMORAN: Phelps Holders to Vote on US$25.9 Deal
--------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. and Phelps Dodge Corp. said
that they will both hold special shareholders meetings on March
14 to vote on Freeport's US$25.9 billion acquisition of Phelps,
The Associated Press reports.

The Troubled Company Reporter - Asia Pacific reported on Dec 13,
2006, that Freeport-McMoRan had agreed to buy Phelps Dodge for
about US$26 billion in cash and stock to create the world's
largest publicly traded copper company.  

TCR-AP points outs that Freeport will pay US$88 plus 0.67 share
of its stock for each Phelps share, which, based on trading
levels, was worth about US$129.31 per share.

The acquisition is subject to Freeport and Phelps shareholder
approval, regulatory approvals and customary closing conditions,
AP relates.

Shareholders that hold stock of both companies on Feb. 12 will
be able to vote on the proposed transaction, the news agency
adds.

Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper
& Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries,  
engages in the exploration, mining, and production of copper,
gold, and silver.  The company has operations in Indonesia.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Nov. 24, 2006, that Standard & Poor's placed its 'BB-' corporate
credit and its other ratings on Freeport-McMoRan on
CreditWatch with positive implications and its 'BBB' corporate
credit and its other ratings on Phelps Dodge Corp. on
CreditWatch with negative implications.  The actions followed
the report that Freeport entered into an agreement with Phelps
Dodge to acquire Phelps in a transaction valued at US$25.9
billion.

The TCR-AP stated on Oct. 18, 2006, Moody's Investors Service
confirmed Freeport-McMoran's Ba3 Corporate Family Rating in
connection with the rating agency's implementation of its ne
Probability-of-Default and Loss-Given-Default rating
methodology.

Dominion Bond Rating Service confirmed in April the rating of
Freeport-McMoRan Copper & Gold Inc. at BB (low).  DBRS said the
trend is Stable.


FOSTER WHEELER: To Hold Earnings Conference Call
------------------------------------------------
Foster Wheeler Ltd. plans to hold a conference call on February
27, at 3:00 p.m. to discuss its financial results for the
fourth-quarter and fiscal year ended December 29, 2006.  The
company expects to release the results the same day, before the
market opens.

The call will be accessible to the public by telephone or Web
cast.  To listen to the call by telephone in the United States,
dial 866-425-6195 (conference I.D. No. 8409079#) approximately
ten minutes before the call.  International access is available
by dialing 973-935-8752 (conference I.D. No. 8409079#).  The
conference call will also be available over the Internet at
http://www.fwc.com/or through StreetEvents at  
http://www.streetevents.com/

A replay of the call will be available on the company's Web site
as well as by telephone.  To listen to the replay by telephone,
dial 877-519-4471 or 973-341-3080 (replay passcode 8409079#
required) starting one hour after the conclusion of the call
through 8:00 p.m. on March 13, 2007.  The replay can also be
accessed on the company's Web site for two weeks following the
call.

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.


HESS CORP: Senior Debt Rating on Moody's Review for Upgrade
-----------------------------------------------------------
Moody's Investors Service placed under review for upgrade Hess
Corporation's Ba1 rated senior unsecured debt rating.  The
review is in response to the company's progress in advancing its
portfolio of upstream developments, which are intended to
diversify and strengthen the durability of its reserves and
production profile, improvements in its cost structure, and a
gradually improving financial leverage position.

Hess Corporation's year-end results for 2006 indicate that its
reserve replacement increased to about 230%, including organic
additions and reserves added from its re-entry into Libya, with
a somewhat longer reserve life in the area of 9.3 years proved
and 5.6 year proved developed.  In addition, finding and
development costs and full cycle costs, at about US$12 and US$26
per BOE, respectively, while on an increasing trend and subject
to industry-wide inflationary pressures, show that the company's
cost structure has come more in line with those of its peers.
Invested cash returns have also increased in 2006, as indicated
by a full cycle ratio exceeding 3 times, reflecting a stronger
cash margin supported by higher oil and natural gas prices and
the roll-off of disadvantageous oil hedges.  At the same time,
financial leverage has declined as measured by debt in the area
of the low US$5.00 per proved developed BOE and by stronger
equity accretion through earnings.

Moody's review will focus on the company's year-end 2006 audited
results when reported, particularly with regard to key
indicators and metrics such as reserve additions from all-
sources and organic replacement, including the geography and
categories of reserve replacement, the proved undeveloped
reserve profile, and the company's future exploration and
development spending profile.

Headquartered in New York, Hess Corporation (NYSE:HES)
-- http://www.hess.com/-- is a global integrated energy company  
engaged in the exploration for and the development, production,
purchase, transportation and sale of crude oil and natural gas.
The corporation also manufactures, purchases, trades and markets
refined petroleum and other energy products.  

The company has operations in the United States, United Kingdom,
Norway, Thailand and Indonesia, among others.

The Troubled Company Reporter - Asia Pacific reported on
Sept. 27, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. and Canadian
Exploration and Production sector this week, the rating agency
confirmed its Ba1 Corporate Family Rating for Hess Corporation.
Additionally, Moody's revised its probability-of-default rating
and assigned loss-given-default ratings to these securities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   7.375% Sr. Unsec.
   Notes due 2009         Ba1      Ba1     LGD4       55%

   7.875% Sr. Unsec.
   Bonds due 2029         Ba1      Ba1     LGD4       55%

   7.3% Sr. Unsec.
   Notes due 2031         Ba1      Ba1     LGD4       55%

   6.65% Sr. Unsec.
   Notes due 2011         Ba1      Ba1     LGD4       55%

   7.125% Sr. Unsec.
   Bonds due 2033         Ba1      Ba1     LGD4       55%

   5.75% Pollution
   Control Revenue
   Bonds, Ser 2002
   due 2032               Ba1      Ba1     LGD 4       55%

   6.05% Pollution
   Control Revenue
   Bonds, Ser 2004
   due 2034               Ba1      Ba1     LGD4       55%

   Multiple Seniority
   Shelf (Senior
   Unsecured             (P)Ba1  (P)Ba1    LGD4       55%

   Multiple Seniority
   Shelf (Subordinate)   (P)Ba2  (P)Ba2    LGD6       97%

   Multiple Seniority
   Shelf (Cumulative
   Preferred)            (P)Ba3  (P)Ba2    LGD6       97%

   Multiple Seniority
   Shelf (Non-Cumulative
   Preferred)            (P)Ba3  (P)Ba2    LGD6       97%


HILTON HOTELS: Reveals Executive Management Changes
---------------------------------------------------
Hilton Hotels Corporation reveals the following appointments and
executive management changes.  Effective March 1, 2007, the
following executives will report directly to Matthew J. Hart,
President and Chief Operating Officer:

    * Thomas L. Keltner assumes the title of Executive Vice
      President, Hilton Hotels Corporation and Chief Executive
      Officer - Americas and Global Brands. In this role, he
      will have operational responsibility for The Americas, in
      addition to overseeing the global Hilton Family of Brands.
      Mr. Keltner had been President - Brand Performance and
      Franchise Development Group.

    * Ian R. Carter remains Executive Vice President, Hilton
      Hotels Corporation and Chief Executive Officer - Hilton
      International, with responsibility for hotel operations
      outside The Americas.

    * James T. "Tim" Harvey assumes the title of Executive Vice
      President - Global Distribution Services and Chief
      Information Officer, overseeing the company's distribution
      activities in addition to its technology programs. Mr.
      Harvey had been Executive Vice President and Chief
      Information Officer.

    * Antoine Dagot is promoted to Executive Vice President,
      Hilton Hotels Corporation in addition to his existing
      position as President and Chief Executive Officer, Hilton
      Grand Vacations Company, the company's timeshare business.

    * Molly McKenzie-Swarts is promoted to Executive Vice
      President - Human Resources, Diversity and Administration.
      Ms. McKenzie-Swarts had been Senior Vice President - Human
      Resources and Administration.

"These are truly exciting times for our company, and it is our
management strength that will help us continue enhancing our
position as the worldwide lodging industry leader," Mr. Hart
said. "This is a talented and experienced team of executives,
and they in turn lead a group of dedicated professionals that is
the best in the industry."

Hilton Hotels Corporation is the leading global hospitality
company, with more than 2,900 hotels and 500,000 rooms in more
than 80 countries, including 105,000 team members worldwide.

The company owns, manages or franchises a hotel portfolio of
some of the best known and highly regarded brands, including
Hilton (R), Conrad(R), Doubletre(R), Embassy Suites Hotel(R),
Hampton Inn(R), Hampton Inn & Suite(R), Hilton Garden Inn(R),
Hilton Grand Vacations(TM), Homewood Suites by Hilton(R),
Scandic and The Waldorf=Astoria Collection(R).

The Hilton Family of Hotels adheres to founder Conrad Hilton's
philosophy that, "It has been, and continues to be, our
responsibility to fill the earth with the light and warmth of
hospitality." The company put a name to its unique brand of
service that has made it the best known and most highly regarded
hotel company: be hospitable(R).  The philosophy is shared by
all 10 brands in the Hilton Family of Hotels, and is the
inspiration for its overarching message of kindness and
generosity.

                      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.

                          *     *     *

The Troubled Company Reporter reported on Feb. 2, 2007 that
Fitch Ratings has upgraded the debt ratings for Hilton Hotels
Corporation as follows:

   --Issuer Default Rating to 'BB+' from 'BB';

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

   --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.

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

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

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

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

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

   Minimum Leases
   Commitments           Ba2      Ba2      LGD4       53%

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

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

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

   Senior unsecured
   debt shelf            Ba2      Ba2      LGD4       53%

   Subordinate debt
   Shelf                 Ba3      B1       LGD6       97%

   Preferred             B1       B1       LGD6       97%


INDOSAT: House Budget Commission Supports Shares Buy Backs
----------------------------------------------------------
Indonesia's House Budget Commission said that it considers the
shares ownership domination by Singapore Technologies Telemedia
Pte. Ltd too large, Tempo Interactive reports.

According to the report, Telecom's involvement in PT Indonesian
Satellite Corporation Tbk. has made international Internet
network tariff in Indonesia more expensive, resulting into very
low Internet growth.

Therefore, the House Budget Commission supports the Government's
buying back of Indosat shares, Tempo says.

The report notes that this support was included in the
conclusion of a hearing between the House Budget Commission and
Indosat at the Parliament Complex.

A member of the Budget Commission, Drajad Wibowo, told Tempo
that dominant foreign ownership in the telecommunication
industry was regarded as a dangerous issue from a national
security point of view and that secret communication between
Indonesia's officials can be monitored by Singapore.

According to Mr. Drajad, STT Telecom's dominant ownership of
Indosat's shares has caused this subsidiary of Temasek Holding,
which belongs to the Singaporean Government to control 80% of
the national communication flow, Tempo relates.

The report points out that Mr. Drajad said that Temasek made
Indosat's shares price always high on purpose with a price
cartel between STT Telecom at Indosat and Singtel at Telkomsel,
and as a result, Temasek's existence is very dominant in the
national telecommunication industry.

The report recounts that the Government sold 41.945 of its
Indosat shares in January 2002, and STT Telecom, Temasek
Holding's subsidiary, won the sale.

Presently, the Government owns 14.96% of Indosat shares with the
other remaining shares being owned by members the general
public, the report adds.

                          About Indosat

PT Indosat Tbk -- http://www.indosat.com/-- is a fully  
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia.  The
company is a provider of international long-distance services in
Indonesia.  It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers.  The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers.  Airtime is sold through
postpaid and prepaid plans.  It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services.  MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has affirmed the Ba1 local
currency corporate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat Finance
Company B.V. and Indosat International Finance Company B.V.  The
bonds are irrevocably and unconditionally guaranteed by Indosat.

The outlooks for the ratings remain positive.

A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'.  The outlook on the ratings is
stable.


MARSH & MCLENNAN: Moody's Affirms Baa2 Unsecured Debt Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the Baa2 senior unsecured
debt rating and the Prime-2 short-term debt rating of Marsh &
McLennan Companies, Inc. following the company's revelation that
it will sell Putnam Investments.  The rating outlook for MMC
remains negative.

MMC has agreed to sell Putnam to Great-West Lifeco Inc., a
financial services holding company controlled by Canada-based
Power Financial Corporation, for US$3.9 billion in cash, subject
to certain adjustments.  MMC expects to receive net after-tax
proceeds of US$2.5 billion, to be allocated over time among
acquisitions, stock repurchases and debt reduction.

The rating affirmation is based on Moody's view that MMC will
protect its financial flexibility through the sale process and
through the subsequent allocation of proceeds.  The negative
rating outlook reflects the uneven pace of the MMC's business
recovery and its relatively weak, albeit improving, financial
metrics for the current rating level.  Moody's notes that MMC
has steadily improved its financial position over the past two
years.

Moody's notes that Putnam has helped to diversify the earnings
and cash flows of MMC. At times, however, Putnam has distracted
the MMC management team from the company's core businesses of
insurance brokerage, risk management and consulting.  Moody's
expects that any future acquisitions by MMC will be more closely
related to these core activities.

Moody's cited the following factors that could lead to a stable
outlook on MMC's ratings: (i) insurance brokerage margins in the
high teens or low 20s (percent); (ii) EBIT coverage of interest,
adjusted for pension and lease obligations, in the mid-single-
digits or higher (times); (iii) adjusted free-cash-flow-to-debt
ratio improving to the low teens or higher (percent); and (iv)
adjusted debt-to-EBITDA ratio in the low single digits (times).

Moody's cited the following factors that could lead to a rating
downgrade:

   (i) insurance brokerage margins consistently below 12
       percent,

  (ii) adjusted EBIT coverage of interest consistently below 3.0
       times,

(iii) adjusted debt-to-EBITDA ratio consistently above 3.5
       times, or

  (iv) material new adverse developments in connection with
       regulatory investigations or related litigation.

Moody's has affirmed the following ratings with a negative
outlook:

   -- senior unsecured long-term debt at Baa2;

   -- senior unsecured short-term debt at Prime-2;

   -- provisional senior unsecured debt at (P)Baa2;

   -- provisional subordinated debt at (P)Baa3; and

   -- provisional preferred stock at (P)Ba1.

Moody's last rating action on MMC took place on September 26,
2006, when the provisional ratings were assigned to the shelf
registration.

MMC is a New York-based global professional services firm with
subsidiaries offering risk management, insurance brokerage,
consulting and investment management services to clients in more
than 100 countries.  MMC owns the world's largest insurance
brokerage and consulting operation.  MMC reported total revenues
of US$8.9 billion and net income of US$764 million for the first
nine months of 2006.  Shareholders' equity was US$6.2 billion as
of September 30, 2006.

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

                          *     *     *

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

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

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


MARSH & MCLENNAN: Fitch Affirms 'BBB' Senior Debt Rating
--------------------------------------------------------
Fitch Ratings today affirmed the 'BBB' senior debt rating of
Marsh & McLennan Companies, Inc.  Fitch also affirms MMC's
issuer default rating and short-term rating at 'BBB' and 'F2',
respectively.  The Rating Outlook remains Negative.

Fitch's ratings actions follow MMC's revelation that the company
has agreed to sell Putnam Investments to Power Financial
Corporation for US$3.9 billion.  The transaction is expected to
close during the middle of 2007 and the after tax proceeds of
the sale could total approximately US$2.5 billion.  MMC expects
to use part of the proceeds to pay down debt and for share
repurchases.  Fitch expects that the company could use a portion
of the remaining proceeds to fund future acquisitions.

Fitch's decision to affirm MMC's rating's at this time reflects
Fitch's expectation that MMC's credit fundamentals will not
deteriorate from current levels following the completion of
MMC's balance sheet restructuring.  At Sept. 30, 2006, MMC's
debt-to-capital was approximately 45%.  MMC's interest coverage
improved to 4.6 times for the first nine months of 2006 after
languishing between 2.0x-3.0x in 2004 and 2005.  In Fitch's
view, these levels are sufficient to support MMC's existing
ratings.

Fitch believes that the sale of Putnam will free MMC's
management from the distraction of running an underperforming,
ancillary business that shares little synergy with remaining
businesses.  As a result, MMC can focus more on improving its
core insurance brokerage business.

Partially offsetting these positives are the fact that Putnam
has historically provided MMC with a diversified earnings
stream.  However, Fitch notes that Putnam's contributions have
significantly diminished since market timing allegations
surfaced in late 2003.  Putnam contributed more than one-third
of MMC's pretax earnings in 2001, but currently accounts for
only about 20% of MMC's profits.

Although Fitch views MMC's decision to sell Putnam favorably,
Fitch feels that a Negative Outlook is still warranted.  Fitch
continues to believe that Marsh, which will now comprise a
larger percentage of MMC's ongoing business, has experienced a
material decline in franchise value following the New York
Attorney General's civil suit and allegations of bid rigging.
Although Fitch recognizes that Marsh has maintained a leading
global market share, and that Marsh's recent operating
performance, although improving, continues to lag its closest
competitors.

During the first nine months of 2006, Marsh's reported revenues
declined by 4% (23% on an organic basis).  Pretax margins in the
Risk and Insurance Services segment improved to 13.5% from 5.7%
in the year-ago period, but remain below historical levels
between 24%-28%.  While Marsh's margins should improve to the
mid-to-high teens in the near term, they are unlikely to return
to prior peak levels, as Marsh encounters a more challenging
operating environment due to the softening of commercial
insurance pricing.  Moreover, MMC remains at a relative
disadvantage versus many smaller competitors that still accept
contingent commissions.

Items that Fitch is monitoring that may promote a return to a
Stable Rating Outlook include the following:

   --Improvement in MMC's insurance brokerage margins to levels
     in the high-teens on a stable or increasing revenue base.

   --Settlements of outstanding litigation at modest costs, and
     no additional litigation filings.

   --Debt-to-capital ratios migrating closer to historical
     levels near 40% from current levels around 45%.

The following ratings are affirmed by Fitch:

Marsh & McLennan Companies, Inc. (all ratings have a Negative
Rating Outlook)

Fitch affirms the following senior debt 'BBB':

   --US$550 million 5.15% due Sept. 15, 2010;

   --US$750 million 5.75% due Sept. 15, 2015;

   --US$500 million floating due July 13, 2007;

   --US$650 million 5.375% due July 15, 2014;

   --US$500 million 5.375% due March 15, 2007;

   --US$250 million 3.625% due Feb. 15, 2008;

   --US$400 million 7.125% due June 15, 2009;

   --US$250 million 6.25% due March 15, 2012;

   --US$250 million 4.85% due Feb. 15, 2013;

   --US$300 million 5.875% due Aug. 1, 2033;

   --Issuer default rating at 'BBB';

   --Commercial paper at 'F2'.


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

                          *     *     *

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

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

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


MCDERMOTT INT'L: Elects John Nesser To Executive Vice President
---------------------------------------------------------------
McDermott International, Inc.'s board of directors has elected
John T. Nesser, III to the position of Executive Vice President,
Chief Administrative and Legal Officer.

In this newly created role, Nesser will be responsible for all
administrative and legal functions of the Company, including
human resources, administration, benefits, risk management,
information technology and legal.  Nesser, age 58, previously
served as Executive Vice President and General Counsel.

In addition, McDermott announced that Ms. Liane K. Hinrichs was
elected to the position of Vice President and General Counsel of
the Company, replacing Nesser, in addition to her continuing to
serve as Corporate Secretary.  Liane Hinrichs has been a key
leader in the Company's legal department since 1999 and has
served as Corporate Secretary since March 2006.  Ms. Hinrichs,
age 49, will continue to report to Nesser in this new role.

Also reporting to Nesser will be Louis J. Sannino, Executive
Vice President of Human Resources, who has recently indicated
his intention to retire in the coming 12 months.  In addition,
Tim Woodard and Claire Hunter will also report to Nesser in
their newly appointed roles of Vice President, Chief Risk
Officer and Vice President, Litigation, Claims and Compliance,
respectively.

"We are very pleased to welcome John, Liane, Claire and Tim to
these new and expanded roles with McDermott," said Bruce W.
Wilkinson, Chairman of the Board and Chief Executive Officer.
"These appointments reflect the substantial personal
accomplishments of the individuals and the ongoing progression
of our Company."

"It is with regret that we acknowledge Lou Sannino's desire to
retire from McDermott in the foreseeable future after a long and
productive career with the Company," continued Wilkinson.
"During his 29 years with McDermott, Lou has been an outstanding
business leader who also developed a strong human resources
program that benefits all employees of the Company today.  His
leadership in the Company's succession planning process has
better prepared McDermott, as evidenced with today's
announcement."

McDermott International, Inc. is a leading worldwide energy
services company.  The Company's subsidiaries provide
engineering, construction, installation, procurement, research,
manufacturing, environmental systems, project management and
facility management services to a variety of customers in the
power and energy industries, including the U.S. Department of
Energy.

                       About McDermott Int'l

Headquartered in Houston Texas, McDermott International, Inc.
(NYSE:MDR) -- http://www.mcdermott.com/-- through its  
subsidiaries, operates as energy services company worldwide
including Indonesia and the United Kingdom.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Oct. 11, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the oilfield service
and refining and marketing sectors last week, the rating agency
confirmed its B1 Corporate Family Rating for McDermott
International Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Multiple Seniority
   Shelf (Senior
   Unsecured)            (P)B3    (P)B3    LGD6        97%

   Multiple Seniority
   Shelf (Subordinate)  (P)Caa2   (P)B3    LGD6        97%

   Multiple Seniority
   Shelf (Preferred)    (P)Caa3   (P)B3    LGD6        97%


PARKER DRILLING: Reveals Fourth Quarter 2006 Earnings Release
-------------------------------------------------------------
Parker Drilling Company will host a conference call Feb. 22, at
9 a.m. CST to discuss fourth quarter 2006 financial results.
Earnings for the quarter will be released that morning prior to
the call.  Those interested in participating in the call may
dial in at (303) 262-2138.

Parker Drilling is a Houston-based global energy company
specializing in offshore drilling services in the Gulf of Mexico
and international land and offshore markets.  Parker also owns
Quail Tools, a provider of premium industry rental tools. Parker
Drilling employs approximately 3,000 people worldwide and has 45
marketed rigs.

Headquartered in Houston, Texas, Parker Drilling Company
-- http://www.parkerdrilling.com/-- provides contract drilling  
and drilling-related services worldwide.  The company has rigs
located in Indonesia, New Zealand, Colombia and Mexico, among
others.

The Troubled Company Reporter - Asia Pacific reported on Oct.
12, 2006, that in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the oilfield service and refining
and marketing sectors last week, the rating agency confirmed its
B2 Corporate Family Rating for Parker Drilling Company, as well
as it B2 rating on the company's 9.625% Senior Unsecured
Guaranteed Global Notes Due 2013, and Senior Unsecured
Guaranteed Floating Rate Global Notes Due 2010.  Moody's
assigned those debentures an LGD4 rating suggesting note holders
will experience a 55% loss in the event of default.


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

ASHIKAGA BANK: All Bidders Pass FSA's Initial Screening  
-------------------------------------------------------
The Financial Services Agency has acknowledged all offers made
by foreign and domestic bidders for Ashikaga Bank and has asked
them to submit more detailed business plans for the lender,
Japan Today reports, citing sources familiar with the matter.

According to the report, the financial watchdog has requested
the bidders to submit the detailed plans by the end of March
2007.

The FSA said that the plans should clarify measures for
establishing a responsible management system at Ashikaga and for
enabling it to secure healthy finances and exercise financial
intermediary functions for local economic activities, Japan
Today relates.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 3, 2006, the Japanese Government commenced the first round
of bidding for Ashikaga Bank on Oct. 2, 2006.  The TCR-AP cited
Reuters as recounting that Ashikaga was a failed regional lender
that the Government nationalized in 2003 and plans to sell back
to private investors in 2007.  The estimated price tag for the
Bank is JPY300-400 billion (US$2.56-3.42 billion).

Contenders submit business plans and financial offers for
Ashikaga on Dec. 15, 2006.

                    About Ashikaga Bank Ltd.

The Ashikaga Bank, Ltd. - http://www.ashikagabank.co.jp/- is   
a regional bank operating mainly in Tochigi prefecture in the
Northern Kanto area.  The bank handles banking, loans,
mortgages, foreign exchanges and investment trust through its
106 branches and 68 representative offices.  It also operates a
debt collection business, a real estate survey service, a system
programming and development business and a credit card business
through its 13 consolidated subsidiaries.

Standard & Poor's Ratings Services gave Ashikaga Bank a BB+
long-term foreign and local issuer credit rating on December 10,
2004.


AOZORA BANK: Net Income Ups 0.7% in 9-Month Period Ended Dec. 31
----------------------------------------------------------------
Aozora Bank has reported its financial results for the nine
months to December 31, 2006.

Aozora posted record high operating profit and net income for
the first three quarters of the 2006 fiscal year.  These
excellent financial results reflect the continued success of our
management focus on outperforming the Japanese Banking industry
in terms of earnings and loan growth using our unique business
platform built around wholesale corporate lending and investment
banking in the Japanese and international markets.

Consolidated Financial Highlights

Consolidated operating profits increased to JPY50.3 billion in
the nine months ended December 31, 2006, up 11.3% on the same
period in the prior year.  After eliminating the impact of the
"macro hedge income" recorded in the prior period, the bank's
consolidated operating profits increased 32.0%.

Aozora's loan book grew to JPY3,552.0 billion as of
December 31, 2006, an increase of 13.3% from March 31, 2006,
compared to an industry average of 1.0%, by leveraging its core
capabilities in marketing and risk management.

Net income grew 0.7% to JPY74.8 billion in the nine months ended
December 31, 2006.  After eliminating the impact of the "macro
hedge" recorded in the prior period, the increase was 11.4%.  
The nine months total is a record high for the Bank at this
stage in the fiscal year.  Growth in net income was driven by
net revenue growth coupled with stringent cost control.  Credit
related expenses (including recoveries of written-off claims)
resulted in income of JPY17.8 billion for the nine months ended
December 31, 2006, lower than the level for the same period last
year by JPY5.4 billion, or 23.4%.

Net revenue rose 4.7% to JPY88.3 billion boosted by strong
growth in net non-interest income.  After eliminating the impact
of the macro hedge the increase was 14.3%.

Net non-interest income climbed 21.5% to JPY54.9 billion boosted
by significant gains from bond transactions, gains from
investments in funds and investment partnerships and further
growth in net fees and commissions.

The overhead ratio of expenses to revenue was 44.0% for the nine
months ended December 31, 2006, down from the 45.3% level of the
first half.

Aozora is maintaining its full year earnings forecasts for net
income of JPY81.0 billion and operating profits of
JPY 65.2 billion for the fiscal year ending March 31, 2007.

Aozora Bank Chairman and CEO Michael E. Rossi said; "These
results and our high level of confidence to achieve our full
year earnings targets are further evidence that Aozora is
delivering on its commitment to outperform the Japanese Banking
sector in terms of earnings growth and loan growth.  Our
annualized loan growth has far exceeded the industry average
which is testament to our three core strengths: risk management,
sales and marketing, and capability in specialty finance."

Earnings Review

Net revenue rose 4.7% to JPY88.3 billion compared with the same
period a year earlier, or 14.3% after eliminating the impact of
the macro hedge.  Stable revenue growth demonstrates the ongoing
success of Aozora's strategy of diversifying earnings into areas
such as specialty finance, derivative sales and fund investments
where the Bank can most effectively leverage its core
structuring and risk management expertise.

Net interest income was JPY33.5 billion in the nine months to
December 31.  "Core net interest income" increased 4.1% in the
nine months to December 2006, as compared to the same period in
the prior year, after adjusting for the impact of the macro
hedge income.  The increase is even greater if adjustment is
made for the funding cost of non-interest bearing assets such as
fund and investment partnership investments.  Reported net
interest income declined by 14.7% compared with the same period
in the prior year.

The Bank's average yield on consolidated loans improved to
2.17% in the first three quarters of FY2006 from a
1.93% average in the same period a year ago.  The average margin
on our consolidated loans above our average interest cost of
debentures and deposits rose to 1.66% from 1.56%.  This 0.1
percent margin increase, together with an overall
JPY415.7 billion increase in consolidated loan volume since
March 31, 2006, drove an improvement in "core net interest
income".

Fees and commissions increased by 7.9% to JPY11.3 billion with
the majority of fee income consisting of loan related items,
including fees from securitizations.

Net gains on bond transactions of JPY10.5 billion increased by
183.9% from the comparable prior year period, reflecting gains
on sale of REITs and foreign bonds that were primarily generated
in the first quarter.

Net trading revenues decreased by 6.3% from the comparable prior
year period, reflecting lower demand for derivative products.

Net other operating income excluding net gains on bond
transactions was up 9.6% on the comparable prior year period to
JPY27.9 billion.  Non-consolidated net other operating income
was primarily generated from returns on investments in
investment partnerships (JPY12.7 billion before funding costs)
such as real estate investment partnerships
(JPY6.9 billion  before funding costs), NPL-related investment
partnerships (JPY2.8 billion before funding costs) and private
equity investment partnerships (JPY1.5 billion before funding
costs), and gains on hedge fund investments (JPY11.3 billion  
before funding costs).

General and administrative expenses increased 5.7% to
JPY38.9 billion in the nine months to December 31, 2006 versus
the same period a year earlier, in line with management's
commitment to contain cost growth.  Personnel costs and
information technology spending rose as Aozora continued to grow
its business by actively investing in technology platforms and
people.  At the same time, management promoted a series of
efficiency initiatives and cost control measures, achieving an
overhead ratio (the proportion of net revenue accounted for by
expenses) of 44.0% for the nine month period.

As a result, business profit rose 3.9% to JPY49.4 billion
(or 22.1% after adjustment for the macro hedge) and operating
profits rose 11.3% (or 32.0% after adjustment for the macro
hedge) to JPY50.3 billion, in each case compared to the
comparable period a year earlier.

Income before income taxes rose 0.3% (or 11.1% after adjustment
for the macro hedge) to JPY73.5 billion. Gains at the operating
profit level were partially offset by a decrease in
extraordinary profit on reversals of reserves for possible loan
losses.

Net income increased 0.7% (or 11.4% after adjustment for the
macro hedge) to JPY74.8 billion. This represents a record high
for Aozora for the first nine months of any fiscal year.

Balance Sheet Summary

Total assets amounted to JPY6,132.8 billion as of
December 31, 2006, a gain of JPY136.9 billion, or 2.3%, versus
March 31, 2006.  Increases in loans and bills discounted and
securities were the biggest contributors to asset growth.  
Over the course of the fiscal year to December 31, 2006, the
Bank has reduced (i) cash and due from banks, (ii) call loans
and bills bought, and (iii) receivables under securities
borrowing transactions and transferred funds to assets
generating a higher rate of return such as securities and loans
and bills discounted.

Loans and bills discounted increased by 1.8% from
September 30, 2006, taking the year to date increase to
JPY415.7 billion, or 13.3%, with outstanding loans and bills
discounted of JPY3,552.0 billion as of December 31, 2006.
The main drivers were non-recourse loans, funding to the
information technology and telecommunications sectors, and
additional international lending.  Management expects to grow
our loan book from these levels and position Aozora as one of
the strongest growing Japanese banks.

Securities holdings increased JPY276.3 billion, or 17.0%, to
JPY1,904.5 billion as of December 31, 2006, mainly due to
increases in our holdings of treasury bills and financing bills.

On the funding side, deposits (excluding negotiable certificates
of deposit) as of December 31, 2006, decreased JPY133.1 billion
, or 5.7%, to JPY2,206.3 billion compared to September 30, 2006.
In the three months from September 30, 2006, net deposit inflows
from retail customers were more than offset by a reduction in
the level of corporate deposits.  Our primary sources of funding
for asset growth the first nine months of FY2006 were
debentures, retail deposits, bonds issued and retained earnings.

Operational Highlights

On November 14, 2006, Aozora shares debuted on the First Section
of the Tokyo Stock Exchange.  The TSE listing was achieved in
conjunction with the largest initial public offering in Japan
for eight years.

On November 20, 2006, Aozora opened its first new retail branch
in 15 years, in the Nihonbashi district of central Tokyo. The
branch offers customized wealth management services targeted at
high net worth individuals.

In November 2006, Aozora invested US$500 million to obtain an
indirect minority ownership interest in General Motors
Acceptance Corporation, the finance subsidiary of General Motors
Corporation.

In November 2006, Aozora launched a new corporate rehabilitation
fund to assist small and medium sized businesses in Japan's
northern island of Hokkaido.  The new fund works in partnership
with 23 shinkin credit unions operating in the region. The
initiative is part of the Bank's strategy of leveraging
longstanding relationships with Japanese regional lenders to
generate new business opportunities.

Outlook

Aozora is maintaining its current earnings forecasts for the
full fiscal year ending March 31, 2007, for net income of
JPY81.0 billion and operating profits of JPY65.2 billion on a
consolidated basis.

                        About Aozora Bank

Aozora Bank (formerly Nippon Credit Bank) --
http://www.aozorabank.co.jp/-- was the second Japanese credit  
bank nationalized in the wake of Asia's financial crisis after
the Long-Term Credit Bank of Japan (now Shinsei Bank).  Bad
loans and Japan's "Big Bang" financial deregulation added to the
bank's troubles.  Traditionally a lender to small and midsized
businesses, before the takeover it had started closing overseas
branches and expanding its financial services.  Aozora has a
network of some 20 branches in Japan and four offices overseas.
US investment fund Cerberus now owns 62% of the company after
buying Softbank's stake (49%) in spring of 2003.  Orix Corp and
Millea Holdings each own 15%, and the Japanese government also
owns a stake.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 22, 2006, Moody's Investors Service has placed on review
for possible upgrade the Baa1 long-term deposit and senior
unsecured ratings and the D bank financial strength rating of
Aozora Bank, Ltd.

Fitch Ratings, on October 23, 2006, affirmed the Bank's
individual and support ratings at 'C' and '3'.  The outlook on
the ratings is stable.


JAPAN AIRLINES: To Sell Hotel Assets for More Than US$580 Mil.
--------------------------------------------------------------
Japan Airlines Corp. plans to sell its stakes in seven hotels
for more than JPY70 billion (US$580 million) in order to focus
on its core airline business, Reuters reports, citing a company
source.

AFX News Limited cites the Nihon Keizai Shimbun newspaper as
saying that six of the hotels would be sold by the end of
February.

According to AFX, of the seven hotels, Japan Airlines will
manage five in Tokyo, one in Saipan and one in London, through a
subsidiary.

The airline company currently operates 64 hotels in Japan and
overseas, and plans to continue operating these hotels even
after selling its stakes in the seven, Reuters adds.

Furthermore, The Asahi Shimbun notes that the airline company
intends to sell its entire 48% stake in Tokyo Humania Enterprise
Inc., a company that owns the building of Hotel Nikko Tokyo, to
a New York-based investment fund for about JPY25 billion.  Japan
Airlines' subsidiary, JAL Hotels Co., is expected to continue to
operate the 453-room Hotel Nikko, which is in Tokyo's Odaiba
district.

                      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.


MITSUBISHI MOTORS: Consolidates IT Infrastructure With Riverbed
---------------------------------------------------------------
Riverbed Technology, Inc., the performance leader in wide-area
data services, announced that Mitsubishi Motors Corporation has
deployed Riverbed's Steelhead(R) appliances.  The company has
designed and is deploying a centralized file server environment
that supports four offices and over 5,000 users.  Riverbed's
Steelhead appliances are the core enabling technology for this
initiative, which allows Mitsubishi Motors to improve data
security and reliability, reduce operational costs and
resources, and improve application performance.

Mitsubishi Motors became an independent company in 1970 when the
automobile division was spun off from Mitsubishi Heavy-
Industries, producing cars, trucks and buses for over thirty
years.  In 2003, the company was reborn again as the new
Mitsubishi Motors, a manufacturer specialized in passenger cars.
Mitsubishi Motors has 10 offices in Japan and 11 sites located
outside of the country, including design centers in the United
States, Australia and Germany and production centers in
Thailand, the Philippines, Australia and the Netherlands.
With this project, Mitsubishi Motors centralized file servers at
four sites in Japan and consolidated that infrastructure into
their data center.  This consolidation eliminates the need for
file servers and tape backup in the remote sites, ensuring that
data was more secure and significantly reducing costs and
operational overhead.  In order to move forward with the
project, the company needed to ensure that the performance of
critical applications did not suffer performance degradation.
Riverbed's reseller partner, Netmarks, recommended that the
company consider Riverbed's Steelhead appliance as a solution
that would enable IT consolidation without affecting user
performance.

Mitsubishi Motors selected Riverbed(R) over the competition
because the company's solutions delivered the best performance
for the broad set of applications and protocols important to
Mitsubishi Motors, including NFS.  The company has implemented
the Steelhead appliances at four sites in Japan with over 5,000
users, enabling Mitsubishi Motors to eliminate over 50 servers
and move critical data into its protected data center.  The
Steelhead appliances have reduced WAN traffic by over 90%, while
delivering LAN-like performance to end-users located at the
remote sites.

"Accessing file servers across a WAN was thought to be
impossible due to the effects of latency -- regardless of how
much bandwidth is available.  But with Riverbed's Steelhead
appliances, we are now able to consolidate our file servers,
while ensuring performance that is nearly equal to that of local
area networks," said Yasuhiro Nishikawa, Expert of IT Planning &
Control Dept., Corporate Affairs Office, at Mitsubishi Motors
Corp.  "Installation of Riverbed's Steelhead appliances can
substantially reduce operational management costs, and
centralized management can enhance security levels.
About Riverbed's Steelhead Appliances Riverbed's wide-area data
services solutions enable organizations with more than one
office to overcome a host of severe problems, including poor
application performance and insufficient bandwidth at remote
sites.  By speeding the performance of applications between
distributed sites, by five to 50 times and in some cases up to
100 times between enterprise datacenters and remote offices,
Riverbed's award-winning Steelhead WDS appliances enable
companies to consolidate IT, improve backup and replication
processes to ensure data integrity, and improve staff
productivity and collaboration.  Steelhead appliances have been
deployed in organizations ranging from the world's largest
corporations with offices around the globe to small companies
with a couple of sites that are just miles apart.

                         About Riverbed

Riverbed Technology is the performance leader in wide-area data
services solutions for companies worldwide.  By enabling
application performance over the wide area network that is
orders of magnitude faster than what users experience today,
Riverbed is changing the way people work, and enabling a
distributed workforce that can collaborate as if they were
local.  Additional information about Riverbed is available at
http://www.riverbed.com/  

Riverbed Technology, Riverbed, Steelhead, RiOS, Interceptor, and
the Riverbed logo are trademarks or registered trademarks of
Riverbed Technology, Inc.  All other trademarks used or
mentioned herein belong to their respective

                     About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few     
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia.  Its
products are sold in over 170 countries.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Standard & Poor's Ratings Services raised its
long-term  corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile.  S&P said the outlook on
the long-term rating is stable.

As reported by the Troubled Company Reporter - Asia Pacific on
Aug. 4, 2006, Rating & Investment Information Inc. has
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.

As reported by the Troubled Company Reporter - Asia Pacific on
July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook.  The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.


NIKKO CORDIAL: Restates 2004 Financials for Second Time
-------------------------------------------------------
Nikko Cordial Corp. again lowered its earnings for its 2004
business year, revealing a pretax profit of JPY54 billion
instead of the JPY58.8 billion it had disclosed on Dec. 18,
2006, when regulators said that the firm cooked its books, The
Japan Times reports.

According to The Times, Nikko Cordial also revised its sales for
2004 to JPY291 billion from the JPY295 billion it reported in
December.  The report recounts that before the accounting
scandal broke, Nikko Cordial had said it logged a pretax profit
of JPY77.7 billion and sales of JPY313.9 billion.

ABC Money also relates that as a result of this second results
restatement, Nikko said it earned net profit of JPY36.9 billion
in the year to March 2005, having originally reported net income
of JPY46.93 billion for that period.  Also, for the year to
March 2006, the firm revised its net income to JPY87.99 billion
from the original reading of JPY96.39 billion.

Nikko Cordial explained that the figures were revised because it
decided to make all the 19 special-purpose companies within the
group its subsidiaries beginning in April 2004, so there would
be no room for speculation on another dubious deal, The Times
notes.

Reuters says that Nikko shares went up 8.3% at JPY1,083 --
rising for the first time in six sessions -- on Friday after the
broker's second-time restatement of earnings.

Reuters recounts that Nikko's stock had fallen about 30% in a
five-day skid.  Most of the slide came in Wednesday and Thursday
last week following a special panel report on the accounting
scandal that increased speculation that the brokerage would be
delisted from the Tokyo Stock Exchange.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Nikko Cordial's stock fell 16% to an 18-month low
of JPY1,000 at the 3 p.m. market close in Tokyo on Thursday last
week.  The TCR-AP report, citing Bloomberg News, indicated that
almost 80 million shares were traded, or 8.2% of the total
number outstanding.  The TCR-AP recounted that Thursday's drop
followed a 14.5% plunge on Wednesday after the special panel
found "systemic legal violations."

                      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 January 31, 2007. Moody's Investors Service has downgraded to
Baa3 the Baa2 issuer rating of Nikko Cordial Corporation
("NCC"), 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 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 we
expect Citigroup to provide to Nikko Citigroup if needed, are
unaffected.

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.


OCA INC: U.S. Court Confirms Plan of Reorganization
---------------------------------------------------
The United States Bankruptcy Court for the Eastern District of
Louisiana has entered an order confirming OCA, Inc.'s Plan of
Reorganization.

The Court ruled that OCA had met all of the statutory
requirements to confirm its Plan.  OCA completed its
restructuring and exited bankruptcy on January 30.

"Thanks to the support and loyalty of our affiliated
orthodontists, our employees, our vendor community and our
lenders, a new OCA is emerging from this restructuring process
with a stable platform of affiliated orthodontists and a sound
balance sheet," Michael F. Gries, OCA's Chief Restructuring
Officer and Interim Chief Executive Officer, said.  "The new OCA
is well positioned to provide improved services to its clients
and to expand its network of affiliated practices."

A spokesperson for Silver Point Capital, the new owner of OCA,
commented, "OCA provides valuable services that enable
orthodontists to focus on their patients and expand their
practices.  We are pleased to have supported OCA in
expeditiously navigating a difficult period.  OCA's strong
relationships with outstanding orthodontists, coupled with an
excellent management team, are among the reasons that we look
forward to continuing to actively support OCA's efforts to
improve and grow."

The action represents a major milestone in OCA's restructuring.
As part of the confirmation process, the Court approved OCA's
form of new Support Services Agreement that has already been
signed by many of its affiliated orthodontists.

                     Terms of the Plan

Under the terms of the Plan, the amount of outstanding senior
secured indebtedness held by OCA's Senior Lenders will be
reduced from approximately US$93 million to a US$50 million
secured term loan.  In addition, the Senior Lenders will provide
an initial Working Capital Facility of US$25 million to OCA,
thus ensuring that OCA has additional capital to fund its
ongoing operations and business.  The Senior Lenders will also
receive under the Plan all of the equity of reorganized OCA.
The company's unsecured creditors will receive, under the Plan,
a cash payment of US$3 million and will be eligible to receive
additional deferred cash payments up to the full amount of their
allowed claims after certain conditions have been satisfied.

                       About OCA Inc.

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Debtor's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  Three debtor-affiliates also filed for bankruptcy
protection on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).
William H. Patrick, III, Esq., at Heller Draper Hayden Patrick &
Horn, LLC, represents the Debtors.  Patrick S. Garrity, Esq.,
and William E. Steffes, Esq., at Steffes Vingiello & McKenzie
LLC represent the Official Committee of Unsecured Creditors.
Carmen H. Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B.
Cheatham, Esq., at Adams and Reese LLP represent the Official
Committee of Equity Security Holders.  When the Debtors filed
for protection from their creditors, they listed US$545,220,000
in total assets and US$196,337,000 in total debts.


SANYO ELECTRIC: Seeks to Sell Chip Unit for Around JPY100 Bil.
--------------------------------------------------------------
Sanyo Electric Co. is seeking buyers for its chipmaking unit in
a deal that may raise more than JPY100 billion (US$830 million),
Bloomberg News reports, citing people familiar with the plan but
who refused to be identified.

Sanyo Electric invested JPY7.3 billion in its chip unit in the
latest fiscal year, the report says.

According to Bloomberg's Mariko Yasu, Sanyo Electric hired
Goldman Sachs Group Inc. and Daiwa Securities SMBC Co. to advise
it on the sale.  Mr. Yasu relates that both Goldman Sachs and
Daiwa Securities took part in a JPY300-billion bailout for Sanyo
in 2006.

The chip business does not really match Sanyo's overall business
portfolio and requires constant investment, Bloomberg cites
Koichi Hariya, a senior analyst at Mizuho Securities Co. in
Tokyo, as saying.

The report further recounts that Sanyo President Toshimasa Iue
has been cutting jobs, spinning off disk drive and liquid
crystal display operations, and focusing on environmentally
friendly products such as solar batteries after the company lost
money in the past two years.

The Troubled Company Reporter - Asia Pacific reported on Feb. 1,
2007, that Sanyo Electric reported a group net loss of
JPY7.3 billion (US$59.9 million) for the quarter ended Dec. 31,
2006, compared with the year-earlier period's net profit of
JPY6.22 billion.

                       About Sanyo Electric

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

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

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

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


SAPPORO HOLDINGS: Steel Partners Wants Items Taken Up at Meeting
----------------------------------------------------------------
Steel Partners Japan Strategic Fund (Offshore), L.P., on
Jan. 30, 2007, submitted a request for items to be made part of
the agenda for Sapporo Holdings Ltd.'s annual general meeting of
shareholders to be held in March 2007.  The proposals included
the "Abolition of Company's policy for dealing with significant
purchase of the Company's Shares" (the Company's current policy)
and an amendment to the articles of incorporation of Sapporo
Holdings so that "The Company may only adopt a Response Policy
upon resolution at a shareholders' meeting."

The full-text of the request says:

     Notice Regarding Shareholder Proposal Made With Respect

To Sapporo Holdings Ltd.

Please be informed that, as a shareholder of Sapporo Holdings
Ltd. (Location: Shibuya-ku, Tokyo, Representative Director &
President: Takao Murakami), the Fund made a request on Jan. 30,
2007 that the following items be made part of the agenda for the
Company's 83rd annual general meeting of shareholders and that
the following proposed resolutions and the reason for the
proposals be included in both the notice of such meeting to the
shareholders and the reference material to be attached to such
notice:

Proposed agenda item 1:

   Abolition of Company's Policy For Dealing With Significant
   Purchase of the Company's Shares (the Current Policy)

-- Proposed resolution

   The Current Policy, which was approved at the meeting of the
   board of directors of the Company on February 17, 2006, and
   extended by approval at the meeting of the board of directors
   of the Company on April 28, 2006, be abolished.

-- Reasons for the proposal

   1. The Current Policy may place restrictions on the
      shareholders' fundamental rights to sell and acquire
      shares freely and also deprives the shareholders of an
      opportunity to decide for themselves on the merits of
      certain types of acquisition proposal and so should not
      have been adopted only by an approval of the board of
      directors.

   2. The Securities and Exchange law was revised after the
      introduction of the Current Policy, and the revised law
      ensures the protection of the rights of existing
      shareholders by requiring greater disclosure.
      Accordingly, there is no justification to keep the Current
      Policy, which places excessive restrictions on
      transactions beyond the requirements of the law.

   3. Furthermore, the Current Policy, which has not been
      approved by a resolution of the general meeting of
      shareholders, should be abolished to reflect the recent
      trend of improving corporate governance in the Japanese
      business world which requires the shareholders' views to
      be reflected in adopting a defense policy.  This can be
      seen from:

        (i) the current move by many listed companies to obtain
            shareholder approval of their adoption of their
            defense policies and

       (ii) the updated guidelines of the Pension Fund
            Association of Japan, which effectively disapproves
            of the adoption of a defense policy without
            shareholders' approval.

Proposed agenda item 2:

   Amendment to the articles of incorporation of the Company.

-- Proposed resolution

   The following clause will be inserted in the articles of
   incorporation.

      Resolution of a Response Policy
      Article 17

      The Company may only adopt a Response Policy (as defined
      below) upon resolution at a shareholders' meeting.
      Response Policy in the foregoing paragraph means any
      policy relating to measures to be taken by the Company
      (including but not limited to issuance of shares/share
      acquisition rights) in anticipation of or in response to
      an acquisition or proposed acquisition of shares or
      securities in the Company.  Any such Response Policy must
      only apply to an acquisition by a person/entity damaging
      corporate/shareholders' value.

      Any Response Policy resolved at the shareholders' meeting
      pursuant to paragraph 1 should be approved again at an
      annual shareholders' meeting held for the fiscal year
      ending within one year after the Response Policy was first
      approved in order to extend the effective period of the
      Response Policy, and the same shall apply thereafter.  If
      such further approval is not obtained, the board of
      directors of the Company must take measures to abolish the
      Response Policy immediately.

   The shareholder's resolution with respect to the foregoing
   paragraphs will be a resolution stipulated in Article 309
   Paragraph 1 of the Corporate Code (i.e. majority vote).

-- Reasons for the proposal

   1. Any policy for dealing with significant purchase is likely
      to put restrictions on the shareholders' fundamental
      rights to sell and acquire shares freely and also deprive
      the shareholders of an opportunity to decide for
      themselves on the merits of certain types of acquisition
      proposal (and also may interfere with the ability of
      potential investors or existing shareholders to make
      investments in the Company) and, therefore, instead of
      being adopted only by an approval of the board of
      directors, it should be approved at a general meeting of
      shareholders.

   2. Furthermore, a defense policy of the Company should be
      approved at a shareholders' meeting to reflect the recent
      trend of improving corporate governance in the Japanese
      business world which requires the shareholders' views to
      be reflected in adopting a defense policy.  This can be
      seen from:

        (i) the current move by many listed companies to obtain
            shareholder approval of their adoption of their
            defense policies and

       (ii) the updated guidelines of the Pension Fund
            Association of Japan, which effectively disapproves
            of the adoption of a defense policy without
            shareholders' approval.

Steel Partners explains that the purpose of the notice is to
inform the public of the shareholder proposal it made and the
contents.  Steel Partners clarifies that it does not intend to
solicit any shareholder to retain the Fund or any related party
or any other third party as its/his proxy in exercising its/his
voting right at any general meeting of shareholders of the
Company.

                     About Sapporo Holdings

Sapporo Holdings Limited -- http://www.sapporoholdings.jp/--   
formerly known as Sapporo Breweries, brews beer and operates
more than 200 beer halls and restaurants.  Sapporo is one of
Japan's oldest brewers, and is Japan's third largest brewing
company, with brews ranging from its flagship Black Label to the
pricier Yebisu.  Sapporo also makes the low-malt happoshu brew.
The Company sells Guinness beer in Japan through its Sapporo
Guinness Company and owns a beverage company that makes canned
coffee, bottled water, and soft drinks.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Jan 26, 2007, Fitch Ratings affirmed the ratings of Sapporo
Holdings Limited as follows:

   -- Long-term foreign and local currency Issuer Default rating
      'BB'/ Outlook Stable;

   -- Senior unsecured debt 'BB';

   -- Short-term foreign and local currency IDR 'B'.

Standard & Poor's Rating Service gave Sapporo Holdings 'BB'
Long-Term Foreign Issuer Credit and Long-Term Local Issuer
Credit Ratings.


TIMKEN CO: Lower Automobile Demand Impacts 4th Quarter Results
--------------------------------------------------------------
Timken Co. is reducing its earnings estimate for the fourth
quarter of 2006.  The reduction is primarily due to lower North
American automotive demand, an increase in the company's
Automotive warranty reserves, the effect of higher Industrial
manufacturing costs and the impact of the sale of Latrobe Steel.

The company now anticipates 2006 fourth-quarter earnings per
diluted share of approximately US$0.37 and US$2.36 for the full
year.  Excluding the impact of special items, the company
estimates fourth-quarter earnings per diluted share of
approximately US$0.30 and US$2.48 for the full year.  Special
items include income from Continued Dumping and Subsidy Offset
Act payments, net losses on divestitures and charges related to
restructuring, rationalization and goodwill impairment.

The company had previously provided estimated earnings per share
of US$0.47 to US$0.57 for the fourth quarter and US$2.65 to
US$2.75 for the full year, excluding the impact of special
items.

"We are confident the actions we are taking are positioning the
company for stronger performance," said James W. Griffith,
Timken's president and chief executive officer.  "Specifically,
our efforts to ramp up Industrial capacity, restructure our
Automotive business, divest non-strategic assets and focus our
Steel business on more differentiated products have better
positioned the company to create higher levels of value and
customer service going forward.  As a result of these
initiatives, along with improvements in working capital
management and increased pension funding, we expect to see
substantial improvement in our 2007 financial performance, as
reflected in our earnings outlook."

The revised 2006 earnings estimates include Latrobe Steel
through November 30 in the amount of US$0.20 for the quarter and
US$0.49 for the full year or, excluding special items, US$0.07
for the quarter and US$0.35 for the full year.  The difference
reflects the gain on the sale of Latrobe Steel.

                    About The Timken Company

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered   
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Japan, Australia, Canada, China, France, Germany,
India, Korea, Mexico, Netherlands, Russia, Singapore, Spain,
Taiwan, the United States, and Venezuela, and employs 27,000
employees.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that Moody's Investors Service confirmed The Timken
Company's Ba1 Corporate Family Rating and the Ba1 rating on the
company's US$300 Million Unsecured Medium Term Notes Series A
due 2028 in connection with the rating agency's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology.


TIMKEN CO: To Invest US$60 Mil. on Steel Rolling Mill Operations
----------------------------------------------------------------
The Timken Company will invest approximately US$60 million in
its steel rolling mill operations to increase the company's
capability to produce differentiated steel products.  The
investment will enable Timken to competitively produce steel
bars down to 1-inch diameter for use in power transmission and
friction management applications for a variety of customers,
including the rapidly growing automotive transplants.

"We are making investments across our company to strengthen the
differentiation of our technology and product portfolio," said
James W. Griffith, Timken president and chief executive officer.  
"The expansion of our small-bar steel capabilities is part of
our strategy of managing our company for value and taking
advantage of strong market opportunities to improve our ability
to create shareholder value throughout the economic cycle."

Assisting with the technical aspects of the project will be
Daido Steel Co. Ltd., a Japanese producer that has an
outstanding reputation for manufacturing special quality small-
bar steel and serving demanding customers, including Nissan
Motor Co. Ltd., Honda Motor Co. Ltd. and Toyota Motor Corp.

Daido and Timken also intend to explore other possible areas of
collaboration in connection with the manufacture and supply of
steel and steel-related products and services.

"We recognize Timken as a company with a long history of
steelmaking experience and sophisticated technical performance,"
said Masatoshi Ozawa, president and chief executive officer of
Daido Steel.  "The collaboration with Timken will bring us the
best solution to meet Japanese customers' expectation of success
in transplant projects of special bar-quality steel in the
United States. Building on this initiative, we also will be
exploring other areas of possible collaboration."

The project will enable Timken to meet demanding requirements
for special bar-quality steel from a wide range of customers in
the bearing, industrial, energy, distribution and automotive
segments, as well as Timken's automotive and industrial groups.  
Currently, some of this material is not readily available in the
United States.

"We welcome this opportunity to work with Daido.  They have an
impressive reputation for manufacturing high-performance
products and for providing customer service," said Salvatore J.
Miraglia, Jr., president of Timken's Steel Group.  "We have
already made investments to expand our large-bar capabilities to
an industry-leading 15-inch outer diameter.  With the new small-
bar project, we will be extending our capabilities down to one-
inch diameter, giving us an unmatched size range of alloy steel
bar products in North America."

A 76,000-square-foot addition will be built at the Harrison
Steel Plant in Canton.  The project will include expanded
rolling, finishing and inspection capabilities.  Construction is
expected to begin in mid-June, with completion expected in mid-
2008.  Once complete, Timken expects to add approximately 30 new
positions to operate the small-bar mill.

                   About Daido Steel Co. Ltd.

Headquartered in Nagoya, Japan, Daido Steel Co. Ltd.
(TOKYO:DADSF) manufactures specialty steel products and
components for automobiles as well as industrial and electrical
machinery.  Founded in 1916, Daido markets a broad range of
specialty steel products to companies such as Nissan Motor and
Honda Motor.  Daido operates an international network with
locations in North America, China, South Korea, Singapore,
Malaysia, Taiwan, Indonesia, the Philippines and Thailand.

                     About The Timken Company

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered   
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Japan, Australia, Canada, China, France, Germany,
India, Korea, Mexico, Netherlands, Russia, Singapore, Spain,
Taiwan, the United States, and Venezuela, and employs 27,000
employees.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that Moody's Investors Service confirmed The Timken
Company's Ba1 Corporate Family Rating and the Ba1 rating on the
company's US$300 Million Unsecured Medium Term Notes Series A
due 2028 in connection with the rating agency's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology.


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

AGY HOLDING: Sales Improve by US$10 Million in Fiscal Year 2006
---------------------------------------------------------------
AGY Holding Corp. reported its preliminary, unaudited financial
statements for the year ended Dec. 31, 2006.

Net sales increased US$10 million, or 6.2% in 2006 compared to
2005.  Excluding the impact of the Porcher equity incentive,
sales increased by US$7.7 million, or 4.7%.

In addition to improved pricing conditions, increased sales to
some of AGY's higher margin markets and applications, including
defense and specialty electronics, resulted in a favorable
product mix compared to last year.

The company's cash balance as of Dec. 31, 2006, was US$1.5
million and the net funded debt has decreased by US$11 million
since the acquisition of the company by KAGY Holding Company in
April 2006.

Net sales remained flat in the fourth quarter of 2006 compared
to the fourth quarter of 2005.  Excluding the Porcher equity
incentive, sales decreased US$1.1 million, or 2.7%.  Demand was
down primarily in the construction market reflecting the
slowdown in US construction markets but this decrease was offset
by improved pricing conditions, increased sales to specialty
electronics and stable sales to defense applications that
resulted in a favorable product mix compared to the same period
last year.

                  Labor Agreements Negotiations

The company renegotiated the labor agreements with each of its
unions in the fourth quarter of 2006, reaching a new three-year
agreement with its Huntingdon employees and a three-and-one-half
year agreement with its Aiken employees.  Operations were not
significantly impacted by the approximately one-week work
stoppage initiated by the Huntingdon hourly workers and no sales
were delayed during the quarter as a result of the work
stoppage.

Expenses associated with the new labor agreements, excluding
non-recurring signing bonuses, resulted in an increase in cost
of goods sold for the fourth quarter of 2006 of approximately
4%.

The company plans to offset increases in labor costs with
continued efficiency gains and cost reduction, the net result
being a minimal anticipated change in operating expenses.

                        About AGY Hodling

Headquartered in Aiken, South Carolina, AGY Holding Corp. --
http://www.agy.com/-- is a US producer of glass fiber yarns.
Its products are used globally in a variety of industrial,
electronic, construction, and specialty applications.  The
company has sales and distribution offices in France, Japan and
Korea.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 26, 2006, Moody's Investors Service confirmed its B2
Corporate Family Rating for AGY Holding as well as its Caa1
rating on the company's US$45 million Senior Secured 2nd Lien
Bank Facilities Due 2013.  The facilities were assigned an LGD5
rating suggesting creditors will experience an 88% loss in the
event of default.


BIOVEST INT'L: Closes Amended & Restated Loan Transaction
---------------------------------------------------------
Biovest International, Inc., disclosed in a regulatory filing
with the U.S. Securities and Exchange Commission on Jan. 16,
2007, that it closed an amended and restated loan transaction
with Pulaski Bank and Trust Company of St. Louis, Missouri,
which amended the Loan Agreement dated Sept, 5, 2006 pursuant to
which Pulaski agreed to loan up to of US$1 million to the
company pursuant to an unsecured Promissory Note.

The material terms of the Transaction include:

    * The Note will become due and payable on July 5, 2007.  The
      Note can be prepaid by the Company at any time without
      penalty.

    * The outstanding principal amount of the Note will bear
      interest at the rate of the prime rate minus .05% (7.75%
      per annum initially).  Monthly payments of accrued
      interest only shall be due and payable monthly on the 5th
      day of each month commencing on Feb, 5, 2007.

    * The Note is an unsecured obligation of the Company and is
      subordinated to the Company's outstanding loan to Laurus
      Master Fund, Ltd.

    * The Note is guaranteed by entities and individuals
      affiliated with the Company or Accentia
      Biopharmaceuticals, Inc., the majority stockholder of the
      Company.  The Company has entered into Indemnification
      Agreements with each of the guarantors.

    * The company issued to the guarantors warrants to purchase
      an aggregate total of 1,388,636 shares of the company's
      Common Stock, par value US$0.01 per share, at an exercise
      price of US$1.10 per share.  The Warrants will expire on
      Jan. 15, 2012.  Under the terms of the Warrants, the
      guarantors shall have piggy-back registration rights for0
      the shares underlying the Warrants.

The Warrants were issued by the company in a transaction that
was exempt from registration under the Securities Act of 1933,
as amended, by virtue of Section 4(2) of the Securities Act and
by virtue of Rule 506 of Regulation D under the Securities Act.  
The sale and issuance did not involve any public offering, was
made without general solicitation or advertising, and the
guarantors are accredited investors with access to all relevant
information necessary to evaluate the investment and represented
to us that the Warrants was being acquired for investment.

Biovest International Inc. (OTC BB: BVTI.OB) --
http://www.biovest.com/-- develops advanced individualized  
immunotherapies for life-threatening cancers of the blood
system.  In addition, Biovest develops, manufactures and markets
patented cell culture systems, including the innovative
AutovaxID(TM), which is being developed as an automated vaccine
manufacturing instrument and for production of cell-based
materials and therapeutics.  Biovest's therapy for follicular
non-Hodgkin's lymphoma is currently in a Phase 3 pivotal
clinical trial at more than 20 major centers in the U.S., and is
being conducted under a Cooperative Research and Development
Agreement (CRADA) with the National Cancer Institute.  Biovest
is a majority-owned subsidiary of Accentia Biopharmaceuticals
Inc.  The company has sales offices in Korea, China, Europe,
Japan, Singapore, and Taiwan.

                      Going Concern Doubt

Aidman Piser & Company P.A., in Tampa, Florida, expressed
substantial doubt about Biovest International's ability to
continue as a going concern after auditing the company's
financial statements for the year ended Sept. 30, 2006.  The
auditing firm cited that the company incurred significant losses
and used cash in operating activities during the years ended
Sept. 30, 2006 and 2005, and had working capital and
shareholders' deficits at Sept. 30, 2006.


KOREA DEV'T BANK: To Set Up Private Equity Fund to Aide M&As
------------------------------------------------------------
Korea Development Bank plans to create a private equity fund
this year to assist merger and acquisition deals between venture
start-ups, The Korea Times reports, citing KDB Governor Kim
Chang-rok.

Mr. Kim tells The Times that the fund aims to help small-sized
companies with financial difficulty in marketing their products.

According to Mr. Kim, the fund will have an initial capital of
KRW30 billion with the bank putting in KRW15 billion while
investment partners will contribute to the other half.

KDB is reportedly in talks with institutional investors to raise
the needed capital.

Mr. Kim admits that the creation of the PEF can cause conflicts
with private players.  To avoid unnecessary tension, KDB intends
to let the private players take part.

Korea Development Bank -- http://www.kdb.co.kr/-- is South   
Korea's long-term funds provider to major industrial projects.
The company is wholly owned by the Korean Government.  KDB also
offers short and long-term loans, investments, guarantees and
trusts to international finance.  Its major funding sources are
Industrial Finance Bonds, client deposits, special-purpose funds
and foreign-currency funds.

Moody's Investors Service gave KDB a 'D-' Bank Financial
Strength Rating effective on January 24, 2006.


KOREA EXCHANGE BANK: Pays Dividends; Lone Star Gets US$445-Mil.
---------------------------------------------------------------
Korea Exchange Bank's board of directors decided to pay
dividends of KRW1,000 per share to shareholders of record as of
the end of 2006, the bank said in a statement.  

According to KEB, the board considered the bank's "financial
health and strong capitalization" in deciding the payout, which
totaled KRW645 billion (US$688 million).  

The payout gives the stock a dividend yield of 7.6%, the highest
among 239 banks tracked by Bloomberg in Asia Pacific and more
than seven times the average on the Kospi Index, William Sim of
Bloomberg News writes.

The dividend figure was reportedly just about half of market
expectations.

However, some believe that Lone Star is happy with the amount.
"Lone Star probably didn't want higher dividends because it
could reduce the sale price for Korea Exchange in the future,
Bloomberg quotes Choi Min Jai, who helps manage about
US$1.4 billion at KTB Asset Management Co., as saying.

United-States based Lone Star Funds, with its 64.6% stake in the
bank, will get around US$445 million in dividends.

Lone Star acquired its controlling stake in KEB in 2003.  
However, as reported in the Troubled Company Reporter - Asia
Pacific on Dec. 8, 2006, South Korean prosecutors declared the
KEB sale to the investment fund as illegal.  The prosecutors
asserted that the deal was conducted "abnormally without
following regulations and due procedure, and the sale price did
not reach the adequate level."

The prosecutors have already indicted three Lone Star officers
on charges relating to the KEB deal:

   -- Ellis Short, the fund's vice chairman;
   -- Michael Thomson, its general counsel; and
   -- Paul Yoo, head of Korean operations.

KEB announced the dividend payout after declaring a net income
of INR1.006 trillion for 2006, a sharp decrease from the
INR1.93 trillion earned in 2005.

"KEB did not pay dividends from 1996 to 2005, arguing its
capital base was smaller than rival banks' and it needed to use
some profits to clean up loan losses incurred in previous
years," Kim Yeon-hee writes for Reuters.

Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--  
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank.  KEB Futures -- http://www.kebf.com/english/-- is  
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.

                          *     *     *

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

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


KOREA EXCHANGE BANK: Posts KRW1.006 Trillion Net Profit in 2006
---------------------------------------------------------------
In 2006, Korea Exchange Bank's net profit fell to
KRW1.006 trillion from the KRW1.93 trillion gained in 2005, a
media release says.

The drop in profit came after recording one-time items in the
fourth quarter of 2006.  The bank's net profit for the last
quarter came to KRW26 billion after reflecting the
KRW192 billion impact of the December 2006 regulation change
under which Korea's Financial Supervisory Service required all
banks to accumulate additional loss reserves.  The bank also
absorbed an additional KRW31 billion impact of the third quarter
2006 NTS tax assessment.

According to the release, KEB's stable profit structure was
achieved through responsible growth in loan assets, a stable
level of net interest margin, and its leading position in both
foreign exchange and import-export market.

KEB points out that its Return on Assets and Return on Equity
for 2006 is at 1.5% and 16.3% respectively.  KEB says its non-
performing loan ratio of 0.62% and overdue loan ratio of 0.77%
are the best numbers among all domestic banks.

With KEB's financial health and strong capitalization, its board
of directors decided to pay KRW1,000 per share for shareholders
of record as of the end of 2006, a total of KRW645 billion.  KEB
notes that it decided not pay dividend in 2005, retaining
capital to complete the bank's capital structure for investing
in operating capacity.

KEB maintains a very strong capital position following the
dividend payout, with its Bank for International Settlements
ratio remaining above 12.4%, higher than average of commercial
banks' as of September 2006.  The BIS ratio gives an indication
of the solvency of a bank.  It gives the ratio between the risk-
bearing capital and the risk-weighted assets

"KEB's capital levels are very strong and will remain near the
top of the industry after paying out the dividend of KRW1,000
per share.  We will maintain a sound BIS ratio of 12.4% with
Tier 1 capital at 9.3%, and we expect both to grow as we execute
our 2007 plan" the release quoted a KEB official as saying.

He added, "It is proven again from the 2006 performance that KEB
is the best financial institution in Korea with leading
capabilities to serve our customers, strong profitability, and
highest asset quality level.  KEB will continue to lead Korea's
financial market with its business goal focused on steady growth
with our customers while maintaining best asset quality level."

Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--  
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank.  KEB Futures -- http://www.kebf.com/english/-- is  
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.

                          *     *     *

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

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


* Fitch Revises Rating Outlook on Kookmin & Shinhan to Positive
---------------------------------------------------------------
Fitch Ratings on Feb. 2, 2007, revised the Outlook on the Long-
term Issuer Default rating of Kookmin Bank and Shinhan Bank to
Positive from Stable, and simultaneously affirmed the rating at
'A' for Kookmin and 'A-' for Shinhan.

At the same time, the agency affirmed both banks' Individual and
Support ratings at 'B/C' and '1', respectively.

The Outlook revision follows a series of rating upgrades for
South Korean banks over recent years given a raft of fundamental
improvements stemming from their experiences of the 1997 Asian
financial crisis and the credit-card difficulties the sector
faced in 2003.

The improvements include:

   -- a substantial loan book diversification away from a clutch
      of large corporates towards SMEs and consumers;

   -- the establishment of high-level (though still
      substantially untested) credit risk management systems;

   -- the considerable development of the country's credit
      bureaus; and

   -- a significantly improved regulatory/supervisory authority.

These improvements are achieved amidst a very benign economic
environment, thus resulting in strong profitability through good
margins, growing fee income and low costs in terms of both
operations and particularly credit.

While all of Korea's banks have benefited from the above,
Kookmin and Shinhan, in particular, standout.  Kookmin's margins
are by far the largest in the industry, at 3.87% (H106), largely
due to its sheer force of size and deposit-taking capabilities,
as well as its strengths in consumer and SME lending.

The bank's balance sheet is considerably strong, with its Tier I
and Total CARs of 11.13% and 15.03%, respectively.  The agency
notes that while its capitalisation will most likely be managed
down in the near future, (being high now due to its so-far
failed attempt to acquire Korea Exchange Bank) it should remain
quite robust for some time to come.

Shinhan meanwhile, has proven itself as one of Korea's more
astute banks.  It is also now part of the second largest
financial institution in Korea following its smooth acquisition
of Chohung Bank and the impending acquisition of LG Card by its
parent, Shinhan Financial Group.  Shinhan accounts for 12% of
system-wide assets, while Kookmin at 14%, and Woori Financial
Holding at 13%.  In H106, Shinhan achieved a very commendable
return on average assets of 1.32%.  Its Tier I and total CARs
stood at 7.94% and 11.55% (as of September 2006), respectively.

Shinhan's Long-term IDR rating is lower than Kookmin reflects,
to some extent, the risks associated with its link to SFG's
considerably debt-funded acquisition of LG Card, which could
result in pressure on the bank's capitalisation.  On balance,
however, LG should be a plus for the bank, given its very strong
current profitability (for which the outlook is satisfactory)
and its large consumer database which should provide the bank
with a range of cross-sell opportunities.

The performance and balance sheet strength of Korea's other
major banks, specifically Woori Bank ('A-'/Positive), Hana Bank
('A-'/Positive) and KEB ('BBB+'/Positive), have also been very
good.

The agency is currently analysing certain key issues -- most
notably Woori and Hana's very strong loans growth over 2006, and
in the case of KEB, the ongoing imbroglio over its ownership
which may stunt investment, management oversight, and staff
morale at the bank.

The achievement of higher ratings for all of Korea's banks will
most likely depend on a continued benign economic environment,
which cannot be taken for granted given the appreciating Won's
negative effect on Korea's export-oriented business sector, and
potentially over-inflated high-end residential property market
as well as the banks' fast expanding and now quite sizeable
level of unsecured consumer loans.

                         About Kookmin

Kookmin Bank -- http://inf.kbstar.com/-- provides various  
commercial banking services, such as deposits, credit cards,
trust funds, foreign exchange transactions, and corporate
finance.  The bank also offers Internet banking services.

Moody's Investors Service gave Kookmin Bank a Bank Financial
Strength rating of D+ effective March 27, 2006.  As reported in
the Troubled Company Reporter - Asia Pacific on Jan. 24, 2007,
Moody's affirmed the D+ rating.

Fitch Ratings gave the bank a B/C individual rating.

                         About Shinhan

Headquartered in Taepyeong-no, Seoul, Shinhan Bank --
http://www.shinhan.com/-- was established in 1982 with capital    
from Korean residents in Japan.  It is Korea's fourth largest
bank by assets -- second largest after merging with Chohung Bank
-- holding a 9% share of deposits and 11% of loans.  The bank
has developed a strong franchise in the consumer as well as
small and medium-sized enterprise segments.  In September 2001,
it formed a holding company, Shinhan Financial Group, under
which it and five other affiliates became stable companies.
Since then, the Shinhan Financial Group has expanded its
organizational structure to include 11 subsidiaries and is now
Korea's second largest financial group.

The Troubled Company Reporter - Asia Pacific reported on
March 16, 2006, that Moody's Investors Service has raised
Shinhan Bank's Bank Financial Strength Rating to D+ from D.  The
revised rating carries a stable outlook.  The higher BFSR
reflects the bank's sustained financial fundamentals upon its
merger with affiliate Chohung Bank.


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

CHIN FOH: Unveils Restructuring Scheme to Bursa Malaysia
--------------------------------------------------------
Chin Foh Bhd revealed before the Bursa Malaysia Securities Bhd a
restructuring plan, which involves:

   -- a transfer of the company's listed status to a new
      company,

   -- the issuance of new shares to its creditors,

   -- the acquisition of subsidiaries, and

   -- a share capital decrease.

Based on the plan, Chin Foh would issue 91.84 million new shares
to creditors on the ratio of four new shares for every MYR10 of
debt.

The company would also undergo internal reorganization, in which
it will acquire the entire equity interests in its subsidiaries,
Chin Foh Trading KL, Chin Foh Aluminium Extrusion, NAT
Recycling, Okura-shoji Malaysia and Okura Steel Service.  

However, purchase of Chin Foh Trading Sdn Bhd's stakes worth
MYR9.3 million would be paid for with the issuance of
37.3 million new Chin Foh shares.

Meanwhile, a new company will be formed and will buy the
interests in the five firms from Chin Foh for MYR45.4 million.  

Lastly, Chin Foh intends to cut its capital from 75 sen to 25
sen per share.  Of the MYR108.24 million credit arising from the
capital reduction, MYR36.08 million will be for distribution of
new shares to its present shareholders, the company told the
bourse.

The remaining balance of MYR72.16 million will be used to offset
the company's accumulated losses.

                          *     *     *

Malaysia-based Chin Foh Berhad -- http://www.chinfoh.com.my--  
is principally involved in trading and distribution of metal
base and non-metal base products, construction materials, panels
and non-ferrous metal products.  Its other activities include
manufacturing of glass, aluminium extrusions, stainless steel
and related products, rotary aluminium ventilators, providing,
cutting and slitting of metal and other related services,
general contracting, design, fabrication, supply and
installation of curtain wall and cladding and holding properties
and investments.  Operations are carried out in Malaysia,
Australia, and China.

Chin Foh is listed under Bursa Malaysia's Amended Practice Note
17 category and is therefore required to submit a regularization
plan to the Securities Commission and other relevant authorities
for approval.


SUREMAX GROUP: Incurs MYR712,000 Net Loss in Qtr. Ended Nov. '07
----------------------------------------------------------------
Suremax Group Pcl posted a net loss of MYR712,000 on MYR12,000
of revenues in the first quarter ended Nov. 30, 2007, as
compared with the MYR834-million net loss recorded in the same
period of 2006.

The company's balance sheet as of end-November 2006 showed
current assets of MYR53.22 million and current liabilities of
MYR33.11 million.

In addition, total assets of the company as of Nov. 30, 2006,
amounted to MYR54.41 million and total liabilities aggregated to
MYR40.67 million, resulting to a shareholders' equity of
MYR13.74 million.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works.  The firm's
other activities include the provision of property management
services and building construction.  The Group is also involved
in the manufacture and sale of ready mixed concrete.

The Troubled Company Reporter - Asia Pacific reported on May 16,
2006, that based on the Audited Financial Statements of Suremax
Group for the year ended August 31, 2005, the company's auditors
have expressed a modified opinion with emphasis on Suremax
ability to continue as a going concern.  Furthermore, based on
the company's six months accounts to February 28, 2006,
Suremax's shareholders' equity on a consolidated basis is less
than 50% of its issued and paid-up capital.  As such, Suremax is
an affected listed issuer of the Bursa Malaysia Securities
Berhad's Amended Practice Note 17 category.


SYARIKAT KAYU: Posts MYR1.1-Mil. Net Loss in Fourth Quarter 2006
----------------------------------------------------------------
Syarikat Kayu Wangi Bhd incurred a MYR1.11-million net loss on
MYR4.73 million of revenues in the fourth quarter ended Nov. 30,
2006, as compared with the MYR17.88-million net loss on
MYR4.42 million of revenues in the corresponding period of 2005.

The company's balance sheet as of end-November 2006 showed
strained liquidity with current assets of MYR20.01 million and
current liabilities of MYR25.97 million.

Consolidated total assets of the company as of Nov. 30, 2006,
reached MYR20.01 million while total liabilities aggregated to
MYR15.21 million, resulting to a shareholders' equity of
MYR5.20 million.

A full text-copy of the company's financial statement can be
viewed for free at:

   http://bankrupt.com/misc/skwb-4qresults.xls

                          *     *     *

Headquartered in Johor, Malaysia, Syarikat Kayu Wangi Berhad is
principally involved in the development of residential and
commercial projects.  Its other activities include housing
construction, production of sawn timber, manufacture of
prefabricated timber rooftrusses and timber trading.  The
Company first made a loss in 1999 when it defaulted on its first
bond payment.  The Company has failed to turn its finances
around and has been suffering continuous losses since then.

The company was classified as an affected listed issuer of the
Amended PN17/2005 on May 8, 2006, since its latest audited
financial statements for the year ended Nov. 30, 2005, showed
that the company's shareholders' equity is MYR7,189,000, which
is less than 25% of the company's issued and paid up capital.

Syarikat Kayu is currently in the process of preparing the
Regularization Plan.  Once completed, the Requisite Announcement
outlining the Regularization Plan will be made to Bursa
Securities.


TAP RESOURCES: Bursa Okays February 28 Plan Filing Extension
------------------------------------------------------------
The Malaysia Securities Bhd has extended Tap Resources Bhd's
regularization plan filing deadline until Feb. 28, 2007.

As a company listed under the PN17 category of the Bursa
Securities' official list, Tap Resources was originally required
to submit its plan on Jan. 8 to the Securities Commission and
other relevant authorities.

The company asked the bourse to extension the filing deadline up
to March 2007.  However, the bourse initially denied the request
and instead decided to commence suspension and delisting
procedures on Tap's securities.

Tap appealed the decision, which was duly recognized by the
bourse on Jan. 30.  Subsequently, the bourse amended its initial
decision.

                          *     *     *

TAP Resources Berhad is principally engaged in property
development.  Its other activities include general contracting;
manufacturing and general trading of building materials,
construction chemicals, ready mixed concrete and non-baked
bricks; installing air-conditioners, process control and switch
gear automation; selling of electrical goods; and investment
holding.  The Group operates wholly in Malaysia.

The company is classified under the PN17 category because, for
the nine months ended January 31, 2006, its shareholders' equity
on a consolidated basis is equal to or less than 25% of the
issued and paid up capital of the Company and such shareholders
equity is less than the minimum issued and paid up capital as
required under paragraph 8.16A (1) of the Listing Requirements
of Bursa Malaysia Securities Berhad, plus it has a default in
payments and is unable to provide a solvency declaration.


TENGGARA OIL: Bursa Extends Plan Filing Deadline to Feb. 7
----------------------------------------------------------
The Bursa Malaysia Securities Bhd extended Tenggara Oil Bhd's
regularization plan filing deadline to Feb. 7, 2007.

Tenggara Oil, as a listed company under the Amended 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. 7, 2007.

The company asked the bourse to extend the original deadline,
but the request was initially rejected.  Bursa Malaysia instead
decided to commence suspension and delisting procedures on the
company's securities.

Accordingly, Tenggara Oil appealed the decision, which was
recognized by the bourse on Jan. 17.

                          *     *     *

Tenggara Oil Berhad is undertaking a divestment and
restructuring exercise, which will reposition it as a service-
oriented and trading group from its current resource-based
businesses.  Current businesses include investment holding,
supply of ready mixed concrete, property holding, management and
construction.  As part of a corporate revamp exercise, the
Company has repositioned itself in the oil and gas business,
which will be its core business.  

The Company is headquartered in Kuala Lumpur, Malaysia.

Tenggara is in the process of formulating a debt restructuring
scheme with relevant parties.

The company's consolidated balance sheet as of Oct. 31, 2006,
showed strained liquidity with current assets of
MYR12.04 million available to pay MYR46.36 million current
liabilities.  The balance sheet also showed total assets of
MYR52.48 million and total liabilities of the same amount,
resulting to no shareholders' equity.


TENGGARA OIL: Faces CIMB Bank's Writ of Summons
-----------------------------------------------
The CIMB Bank Bhd has served Tenggara Oil Bhd a writ of summons
in respect of the MYR4,700,000 overdraft facilities provided by
CIMB to the company.

CIMB claims that Tenggara has defaulted the total payment of
MYR544,743.33 as at September 17, 2006.

The writ of summons was issued by the Kuala Lumpur High Court
for these claims:

1) The total sum of MYR5,302,273.76 as at November 2006;

2) Interest rate of 2.0% per annum at a base lending rate on the
   basis of daily rests from November 2, 2006, up to full
   settlement for an amount which exceeds the approved limit of
   MYR4,700,000.00;

3) Penalty interest at 3.5% at a fixed interest rate from 2
   November 2006 up to full settlement;

4) Such other interest as may be agreeable under the agreement;

5) Legal costs on an indemnity basis; and

6) Such other relief as the Honorable Court deems fit.

                          *     *     *

Tenggara Oil Berhad is undertaking a divestment and
restructuring exercise, which will reposition it as a service-
oriented and trading group from its current resource-based
businesses.  Current businesses include investment holding,
supply of ready mixed concrete, property holding, management and
construction.  As part of a corporate revamp exercise, the
Company has repositioned itself in the oil and gas business,
which will be its core business.  

The Company is headquartered in Kuala Lumpur, Malaysia.

Tenggara is in the process of formulating a debt restructuring
scheme with relevant parties.

The company's consolidated balance sheet as of Oct. 31, 2006,
showed strained liquidity with current assets of
MYR12.04 million available to pay MYR46.36 million current
liabilities.  The balance sheet also showed total assets of
MYR52.48 million and total liabilities of the same amount,
resulting to no shareholders' equity.


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

AIR NEW ZEALAND: Faces AU$200-Million Cartel Class Action
---------------------------------------------------------
On Feb. 1, 2007, Air New Zealand was one of seven international
airlines named as defendants in a AU$200-million cartel class
action filed by law firm Maurice Blackburn Cashman, various
reports say.

The other airline defendants are:

   1) Qantas,
   2) Lufthansa,
   3) Singapore Airlines,
   4) Cathay Pacific,
   5) JAL, and
   6) British Airways

According to the National Business Review, the case is described
as a global price fixing cartel in the international freight
industry since 2000 until now.

ShareChat News says the case involves various surcharges that
the airlines imposed over that time, including:

   * fuel surcharges attributed to higher fuel costs;

   * security charges attributed to extra security measures
     after the September 11, 2001 attacks; and

   * war-risk surcharges attributed to higher insurance costs
     linked to the Iraq war.

Maurice Blackburn principal, Kim Parker, said that firms and
individuals who bought more than AU$20,000 of airfreight
services in the last seven years are affected by the alleged
cartel.  If the case is successful, victims of the cartel would
be able to claim back losses, stuff.co.nz cites a report from
The Press.

                    Air New Zealand Responds

According to Air New Zealand's General Counsel, John Blair, the
action appears to be yet another attempt by an opportunistic law
firm to target large, high-profile corporates.

"There is a growing trend internationally where legal firms are
targeting multi-national companies with class actions on issues
of little, if any substance usually in the expectation of
substantial contingency fees.  These opportunists expect
companies to take the easy route of making an out-of-court
settlement rather than incurring the expense and time of legal
wrangles over many years," Mr. Blair says.

According to Mr. Blair, the action "has all the hallmarks of
similar class actions that Air New Zealand has been subject to
in the past including in the U.S.A. -- complete with a blatant
attempt to sensationalize it by sending out media releases and
holding press conferences well in advance of the named parties
being served with proceedings."

Mr. Blair discloses that Air New Zealand has received the papers
and will examine the issues.  "In responding to requests for
information from various regulators we have yet to see anything
which causes us to conclude that Air New Zealand has breached
applicable competition laws," Mr. Blair notes.

                      About Air New Zealand

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

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

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


ANTONY O'HANLON: Faces Liquidation Proceedings
----------------------------------------------
A liquidation petition filed against Antony O'Hanlon Motors Ltd
was heard before the High Court of Wellington on Feb. 2, 2007.

The Commissioner of Inland Revenue filed the petition on
Oct. 13, 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


ELITE AUTO: Court to Hear Liquidation Petition on Feb. 7
--------------------------------------------------------
The High Court of Rotorua will hear a liquidation petition
against Elite Auto Spray Ltd on Feb. 7, 2007, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition on Dec. 4,
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


HUNGRY HEART: Court Appoints Joint Liquidators
----------------------------------------------
The High Court of Wellington appointed David Stuart Vance and
Barry Phillip Jordan as joint and several liquidators of Hungry
Heart Ltd on Dec. 18, 2006.

Subsequently, the liquidators fixed Jan. 31, 2007, as the last
day for creditors to prove their debts.

The Joint and Several Liquidators can be reached at:

         David Stuart Vance
         Barry Phillip Jordan
         PPB McCallum Petterson
         Level 8, The Todd Building
         95 Customhouse Quay (PO Box 3156)
         Wellington
         New Zealand
         Telephone:(04) 499 7796
         Facsimile:(04) 499 7784


ISSS LTD: Creditors Must Prove Debts by February 28
---------------------------------------------------
On Dec. 21, 2006, John Robert Buchanan and Callum James
Macdonald were appointed as liquidators of ISSS Ltd.

Accordingly, the company's creditors are required to prove their
debts on Feb. 28, 2007.

The Liquidators can be reached at:

         John Robert Buchanan
         Callum James Macdonald
         Buchanan Macdonald Limited
         Chartered Accountants
         PO Box 101993
         North Shore Mail Centre, Auckland
         New Zealand
         Telephone:(09) 441 4165
         Facsimile:(09) 441 4167


MARGOT INVESTMENTS: Shareholders Appoint Merlo as Liquidator
------------------------------------------------------------
On Dec. 18, 2006, the shareholders of Margot Investments Ltd --
formerly Numeric Computer Systems of New Zealand Ltd --
appointed Robert Laurie Merlo as the company's liquidator.

Accordingly, Mr. Merlo required the company's creditors to prove
their claims on Jan. 31, 2007.

The Liquidator can be reached at:

         Robert Laurie Merlo
         Merlo Burgess & Co. Limited
         PO Box 51486
         Pakuranga, Auckland
         New Zealand
         Telephone:(09) 520 7101
         Facsimile:(09) 529 1360
         e-mail: merloburgess&co@xtra.co.nz


OLD LJP: Creditors' Proofs of Claim Due on April 1
--------------------------------------------------
The creditors of Old LJP Ltd are required to submit their proofs
of claim by April 1, 2007.

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

The liquidator can be reached at:

         J. M. Gilbert
         C & C Strategic Limited
         Private Bag 47927
         Ponsonby, Auckland
         New Zealand
         Telephone:(09) 376 7506
         Facsimile:(09) 376 6441


PCW INVESTMENTS: Liquidation Hearing Set for February 8
-------------------------------------------------------
Pynehaven Holdings Ltd filed a petition to liquidate PCW
Investments Ltd on May 1, 2006.

Accordingly, the petition will be heard before the High Court of
Auckland on Feb. 8, 2007, at 10:45 a.m.

Pynehaven's solicitor can be reached at:

         R. B. Lange
         Simpson Grierson
         Level 27, 88 Shortland Street
         Auckland
         New Zealand


SILK DECORATING: Shephard and Dunphy to Act as Liquidators
----------------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
as joint and several liquidators of Silk Decorating Ltd by
virtue of a special resolution passed on Dec. 18, 2006.

The Joint and Several Liquidators can be reached at:

         Iain Bruce Shephard
         Christine Margaret Dunphy
         Shephard Dunphy Limited
         Level 2, Zephyr House
         82 Willis Street, Wellington
         New Zealand
         Telephone:(04) 473 6747
         Facsimile:(04) 473 6748


TAINUI CHAMBERS: Shareholders Opt to Liquidate Business
-------------------------------------------------------
On Dec. 13, 2006, the shareholders of Tainui Chambers Ltd passed
a special resolution to liquidate the company's business and
appointed Neville Charles Goldie as liquidator.

The Liquidator can be reached at:

         Neville Charles Goldie
         PO Box 6396
         Te Aro, Wellington
         New Zealand
         Telephone:(04) 382 4914
         Facsimile:(04) 385 4463


TURNER DISTRIBUTORS: Court Sets Liquidation Hearing on Feb. 8
-------------------------------------------------------------
On Oct. 20, 2006, Hot Cycles Ltd filed a liquidation petition
against Turner Distributors Ltd before the High Court of
Auckland.

The petition will be heard on Feb. 8, 2007, at 10:00 a.m.

Hot Cycles' solicitor can be reached at:

         George Adams Ireland
         LawWorks
         Guildford House
         2 Emily Place (PO Box 4204 or DX CX 10256)
         Auckland
         New Zealand


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

GLOBE TELECOM: Sets Annual Stockholders' Meeting for March 28
-------------------------------------------------------------
In a disclosure with the Philippine Stock Exchange, Globe
Telecom, Inc., advises that its regular annual stockholders'
meeting will be held on March 28, 2007, at 2:30 p.m., at the
Grand Ballroom, InterContinental Manila, Ayala Center, Makati
City.

The meeting's agenda include the election of:

   (a) directors, including the independent directors, and
   (b) auditors -- as well as the fixing of their remuneration.

Stockholders of record as of Feb. 16, 2007, will be entitled to
vote at the meeting.  As per By-Laws, the Stock and Transfer
Books of the Corporation will be closed from Feb. 16 to 23 and
March 26 to 28 2007, inclusive.

                       About Globe Telecom

Globe Telecom, Inc. -- http://www.globe.com.ph/-- is one of the  
country's major telecommunications companies.  It was
incorporated on January 15, 1935 as a traditional provider of
telex/telegram and VSAT services.  Thereon, it diversified its
business into a cellular, landline and international gateway
facility services provider for long distance telephone calls.

The Company offers a wide range of telecommunications services
to business and residential subscribers, including wireless,
wireline and carrier services.  It has introduced innovative
features like text messaging, Infotext and Handyphone Mobile
Office.  It also offers caller ID, voice mail, call forwarding
and data/fax capabilities.  Recently, it launched various
services like video messaging, streaming video, wireline data
services, over-the-air loading and its latest, MyGLobe G-TV
service, which allows subscribers to view selected TV programs
on mobile phones, among others.

                          *     *     *

Standard and Poors gave Globe Telecom's Long Term Foreign Issuer
Credit and Long Term Local Issuer Credit both a BB+ rating,
effective November 3, 2005, and June 23, 2004, respectively.

On September 1, 2006, the Troubled Company Reporter - Asia
Pacific reported that S&P affirmed its ratings on Globe Telecom
Inc. at 'BB+', with a stable outlook.

On November 3, 2006, Moody's Investors Service affirmed Globe
Telecom's Ba2 senior unsecured foreign currency rating and
changed its outlook to stable from negative.  At the same time,
Moody's has affirmed Globe's Baa2 domestic currency issuer
rating.  The outlook for this rating remains stable.


MANILA ELECTRIC: Seeks ERC Approval for Time-of-Use Rates
---------------------------------------------------------
Manila Electric Company seeks the approval of the Energy
Regulatory Commission for the company's proposed time-of-use
rates to be offered up to the level of residential customers
with at least 2,000 kilowatt hours of monthly consumption, Myrna
M. Velasco writes for Manila Bulletin.

Meralco President Jesus P. Francisco said that the approval of
the request will give the company's residential customers the
flexibility to choose between its rates and the competitive rate
offer of state-owned National Power Corporation, Manila Bulletin
says.

According to the report, under the TOU Scheme, electricity
prices will be lower at off-peak hours from 10 p.m. to 7 a.m.,
and highest during peak hours from 10 a.m. to 4 p.m. and 6 p.m.
to 9 p.m.

The TOU rates are also typically more expensive from Mondays to
Saturdays, as compared to Sundays and holidays, Manila Bulletin
notes, adding that the seasonality of weather conditions will
also have an impact on the rates to be offered under the scheme.

According to Meralco, approval of its TOU rates will entice its
customers to take the opportunity of consuming electricity
during off-peak hours to bring down their overall electricity
costs, Manila Bulletin relates.

                      About Manila Electric

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

                          *     *     *

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

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


METROPOLITAN BANK: Sets Annual Stockholders' Meeting on April 25
----------------------------------------------------------------
The board of directors of Metropolitan Bank & Trust Company has
approved:

   (a) April 25, 2007, as the date of the company's 2007 Annual
       Stockholders' Meeting;

   (b) Feb. 22, 2007, as the Record Date to determine the
       stockholders entitled to notice and to vote at the ASM;

   (c) the authorization of the President to change the date,
       time, and place of the ASM and the Record Date; and

   (d) creation of the Special Committee of Inspectors which
       will be empowered to pass on the validity of proxies:
    
       * Alfred V. Ty     -- Chairman
       * Antonio V. Viray -- Member
       * Edgar B. Tulay   -- Member

   (e) creation of the Nominations Committee:

       * Renato C. Valencia     -- Chairman
       * Gabriel C. Chua        -- Member
       * Francisco C. Sebastian -- Member

                         About Metrobank

Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the  
Metrobank Group.  Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network.  Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.

The Bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.

                          *     *     *

On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.

On September 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'.  All
the bank's other ratings were affirmed:

   * Long-term Issuer Default rating 'BB-' -- with a stable
     Outlook,

   * Short-term rating 'B,'

   * Support rating '3.

On November 6, 2006, the TCR-AP reported that Moody's Investors
Service revised the outlook of Metrobank's foreign currency
long-term deposit rating of B1 and foreign currency subordinated
debt rating of Ba3 from negative to stable.


PHIL. LONG DISTANCE: Wants to Suspend PT&T Inteconnection Links
---------------------------------------------------------------
Philippine Long Distance Telephone Co. has informed the National
Telecommunications Commission of its plan to temporarily suspend
interconnection links with Philippine Telegraph and Telephone
Corp. effective Feb. 8, 2007, ABS-CBN News cites a report from
The Manila Times.

Alfredo Carrera, PLDT vice-president, told The Manila Times,
PLDT advised the NTC of its plan in a letter dated Jan. 11,
2007, noting that the suspension will be effective until PT&T
settles its obligation to PLDT.

According to Mr. Carrera said PT&T's debt amounts to about
PHP8 million, the paper relates.

NTC has requested for a meeting with PT&T before PLDT implements
the interconnection suspension, The Manila Times notes.

                           About PLDT

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading  
national telecommunications service provider in the Philippines.  
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT.  Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.  Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.


RURAL BANK OF NARRA: PDIC Services Claims Until February 9
----------------------------------------------------------
The Philippine Deposit Insurance Corporation is servicing claims
for insured deposits in the closed Rural Bank of Narra
(Palawan), Inc. from Jan. 30, 2007, until Feb. 9, 2007.   

PDIC advises the depositors of RBNI Head Office and Puerto
Princesa branch to present to PDIC representatives their
original evidence of deposits like:

   (a) savings passbook or certificates of time deposit; and

   (b) two valid identification cards with the depositor's
       signature.

PDIC will service claims during office hours, Monday to Friday.

The bank's head office is located in Poblacion, Narra, Palawan
while its lone branch is located at Rizal Avenue, Puerto
Princesa City, Palawan.

After Feb. 9, 2007, depositors may file their claims at:

          PDIC Claims Processing Department
          6/F, SSS Bldg.,
          Ayala corner VA Rufino Street,
          Makati City

In a statement, PDIC reported that RBNI has estimated insured
deposits of PHP123.592 million in 4,482 accounts.  In its
initial claims payout operations that started on Dec. 15, 2006,
PDIC had paid 1,054 accounts amounting to PHP88.54 million.  

The Monetary Board ordered the closure of RBNI on Dec. 7, 2006.  
The next day, PDIC took over the bank.  Depositors of RBNI are
given two years from PDIC's actual takeover of the bank to file
their claims or until Dec. 8, 2008.


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

CHEMTURA CORP: Completes Acquisition of Kaufman Holdings
--------------------------------------------------------
Chemtura Corp. has completed the acquisition of the stock of
Kaufman Holdings Corp. in an all-cash transaction.

Kaufman has approximately 300 employees and 2006 revenues in
excess of US$200 million.  The acquisition includes Kaufman's
two operating companies:

   * Hatco Corporation, a worldwide leading producer of polyol
     esters used for technically demanding synthetic lubricant
     applications, including aviation turbine oils and
     lubricants for HFC refrigeration compressors; and

   * Anderol Inc., a worldwide leader in high-performance,
     synthetic lubricants used in demanding aviation and
     industrial applications, such as compressors, bearings,
     gears and food-grade machinery.

"The acquisition of these companies aligns with our strategy to
add high-performing businesses to our portfolio," said Chemtura
Chairman and CEO Robert L. Wood.  "Both Hatco and Anderol are
world leaders in their respective markets."

"Our existing Petroleum Additives/Lubricants business is core to
our growth, and Hatco and Anderol fit in well with this
business.  There are related product offerings in key customer
areas, as well as the opportunity to strengthen alliances with
major suppliers.  There may be distribution synergies as well,
benefiting our global customers," Mr. Wood said.  "Chemtura will
add industry expertise, Six Sigma-based products and processes,
and new information technology systems that will benefit Kaufman
customers."

"The acquisition brings together complementary technology and
manufacturing experience and will result in our ability to offer
customers a broader portfolio of products, technology and
service," said Janet Mann, general manager and vice president of
Chemtura Performance Specialties, which includes the Petroleum
Additives/Lubricants business.  Hatco and Anderol will become
part of the Performance Specialties group of businesses.

"We see many opportunities for global expansion in two high-
growth markets: HFC refrigeration lubricants and high-
performance synthetic lubricants," Ms. Mann said.  "Growth in
HFC refrigeration lubricants is driven by the Montreal Protocol,
which provides for the accelerating adoption of environmentally
friendly refrigerants.  Growth also will be driven by the demand
for improved fuel and energy efficiency, as well as increased
equipment durability, all of which are enhanced by the use of
synthetic lubricants."

"Chemtura is pleased to welcome Hatco and Anderol employees into
the Chemtura organization and looks forward to the success we
will achieve together," said Mr. Wood.

                     About Chemtura Corporation

Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:
CEM) -- http://www.chemtura.com/-- is a global manufacturer and  
marketer of specialty chemicals, crop protection and pool, spa
and home care products.  The company has approximately 6,400
employees around the world and sells its products in more than
100 countries.  In the Asia Pacific, Chemtura has facilities in
Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan and Thailand.

                          *     *     *

In November 2006, Moody's Investors Service assigned a Ba1
rating to Chemtura Corp.'s US$400 million of senior notes due
2016 and affirmed the Ba1 ratings for its other debt and the
corporate family rating.


CHINA AVIATION: Closes March 2007 Jet Fuel Tender
-------------------------------------------------
China Aviation Oil (Singapore) Corporation Ltd had closed its
physical Jet Fuel tender for delivery in March 2007.

In the latest tender, China Aviation received responses from 19
physical jet-fuel suppliers.  For the March tender, a total
volume of 295,000 metric tonnes of A-1 Grade Jet Fuel was
awarded.  The cover ratio for the awarded cargos was
approximately 5.9 times.

The tender was awarded to the most competitive suppliers, the
company said.

               About China Aviation Oil (Singapore)

Incorporated in 1983, China Aviation Oil (Singapore) Corp.
Limited -- http://www.caosco.com/-- deals primarily in jet fuel
procurement, although it is also active in international oil
trading and oil-related investment.  The firm commands a near-
100% market share of the procurement of imported jet fuel for
China's civil aviation industry, and has expanded its market to
include ASEAN countries, the Far East and the United States.

The company is undergoing restructuring.  Its Restructuring Plan
was approved by shareholders on March 3, 2006, and sanctioned by
the High Court of Singapore on March 21, 2006.  It became
effective on March 28, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 10, 2006, the company is currently working with an
insolvent balance sheet, with a US$390.07 million shareholder's
deficit on total assets of US$211.96 million.


CHINA AVIATION: SGX-ST Grants Waiver Under Caixanova Agreement
--------------------------------------------------------------
As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 26, 2007, China Aviation Oil (Singapore) Corporation has
entered into an agreement with Caixa de Aforros de Vigo Ourense
e Pontevedra, also known as Caixanova, for the company's sale of
its 3,502,923 registered voting shares in Compania Logistica De
Hidrocarburos CLH, for a cash consideration of EUR171 million

In an update, China Aviation on Feb. 1, 2007, obtained from the
Singapore Exchange Securities Trading Limited, a waiver from the
requirement to seek the approval of the company's shareholders
regarding the Proposed Transaction.

The application for waiver was made pursuant to these grounds:
   
   -- The Proposed Transaction was the result of a highly
      competitive bid process, in which Caixanova was finally
      selected to enter into negotiations, since it offered the
      highest price and the most favorable terms;

   -- The consideration for the Proposed Transaction constitutes
      a premium to book value and market price.  The aggregate
      consideration of EUR171 million or SGD342 mil. represents
      a gain of approximately SGD183 million from the book value
      of the company's investment in Compania Logistica, which
      was approximately SGD115.0 mil. as at  Sep. 30, 2006.  
      Furthermore, the consideration for the Proposed
      Transaction represents a price per share of EUR48.82, a
      premium of EUR12.22 per share or 33.4% to the last-quoted
      share price of EUR36.60 on the Spanish stock exchanges as
      of Jan. 22, 2007;

   -- The Proposed Transaction has been made known to the
      company's shareholders;

   -- The Disposal Shares in Compania Logistica are non-core
      assets of the company;

   -- The Proposed Transaction has controlling shareholders'
      support.  China National Aviation Fuel Holding Company,
      which holds 50.88% stake in the company supports the
      Proposed Transaction.  The other controlling shareholder
      of the company are also supportive of the Proposed
      Transaction;

   -- The company's Audit Committee has reviewed the terms of
      the transaction and believes that that the terms of the
      Proposed Transaction are on normal commercial terms and
      are not prejudicial to the interests of the company and
      its shareholders; and

   -- The waiver from the requirement to seek shareholders'
      approval would enable quick completion of the Proposed
      Transaction.

Under the Sale and Purchase Agreement, the Proposed Transaction
will be completed upon the approval of the company's
shareholders.  The waiver to seek the shareholders' approval
will allow the company and Caixanova to consummate the
transaction with minimal delay, thus greatly reducing any risk
of failure in the transaction.

The company will proceed with the completion of the Proposed
Transaction as soon as possible and will update the shareholders
on any further developments.

Moreover, the company wants to clarify that none of the
company's directors or substantial holders have any interest,
whether direct or indirect, in the Proposed Transaction.

              About China Aviation Oil (Singapore)

Incorporated in 1983, China Aviation Oil (Singapore) Corp.
Limited -- http://www.caosco.com/-- deals primarily in jet fuel
procurement, although it is also active in international oil
trading and oil-related investment.  The firm commands a near-
100% market share of the procurement of imported jet fuel for
China's civil aviation industry, and has expanded its market to
include ASEAN countries, the Far East and the United States.

The company is undergoing restructuring.  Its Restructuring Plan
was approved by shareholders on March 3, 2006, and sanctioned by
the High Court of Singapore on March 21, 2006.  It became
effective on March 28, 2006.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 10, 2006, the company is currently working with an
insolvent balance sheet, with a US$390.07 million shareholder's
deficit on total assets of US$211.96 million.


CKE RESTAURANTS: Increases Credit Facility by US$100 Million
------------------------------------------------------------
CKE Restaurants, Inc., amended its credit facility, increasing
the aggregate amount that the company is permitted to expend for
stock repurchases and dividend payments by US$130 million, and
increasing the total amount available to the Company for
revolving loans under the credit facility by US$100 million to
US$250 million.

The company also said that, as a result of the increased
capacity for stock repurchases under the credit facility, its
Board of Directors has authorized a further expansion of its
stock repurchase program, raising the company's repurchase
authority under its stock repurchase program by an additional
US$50 million, for a new limit of US$200 million.

The company's stock repurchase program was initially put into
effect on Apr. 13, 2004, with a limit of US$20 million, which
the Board increased to US$50 million on July 24, 2006, to US$100
million on Oct. 11, 2006 and to US$150 million on Jan. 10, 2007.  
The company has currently utilized approximately US$90.2 million
under this program, leaving a balance available for future
repurchases of approximately US$109.8 million.

Repurchases may be made from time to time by the Company
pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934,
as amended, in the open market or in privately negotiated
transactions in compliance with Securities and Exchange
Commission guidelines.

"The increase to our revolving credit facility and in the basket
size for share repurchases is clear evidence of our lenders'
continued confidence in our overall financial position. It also
demonstrates their support as we expand and execute on our stock
repurchase program," stated Andrew F. Puzder, the company's
president and chief executive officer.  "We continue to believe
that the repurchase of our shares represents an attractive
investment opportunity.  The expanded capacity for repurchases
under both our credit facility and our stock repurchase program
allows us to take advantage of repurchase opportunities as they
present themselves."

                     About CKE Restaurants

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

                          *     *     *

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

However, Standard & Poor's Ratings Services affirmed the
company's loan and recovery ratings following the company's
addition of US$100 million to its US$150 million revolving
credit facility.

CKE Restaurants' Ratings List

     -- Corporate credit rating, BB-, Stable;

     -- Senior secured debt, BB.


HEXION SPECIALTY: Closes Buy of Orica's Adhesive & Resin Assets
---------------------------------------------------------------
Hexion Specialty Chemicals, Inc., has completed its purchase of
the adhesives and resins business of Orica Limited.  The
purchase price was not disclosed.

The Orica adhesives and resins business manufactures
formaldehyde and formaldehyde-based binding resins used
primarily in the forest products industry.  The business
includes three manufacturing facilities located in Deer Park
(Victoria) Australia, and Mountview and Hornby, New Zealand.
The business had 2005 sales of US$104 million and employs 100
people.

"We are delighted to complete this transaction and welcome the
business and its associates into Hexion," said Craig O.
Morrison, Chairman and CEO.  "This acquisition strengthens our
presence in the Asia-Pacific region and will enable us to expand
our service to the forest products marketplace."

The Orica business produces formaldehyde and downstream resin
systems including urea-formaldehyde, melamine-formaldehyde,
phenol-formaldehyde and additional formulations.  These products
are used primarily to produce wood panels such as particleboard,
medium-density fiberboard and plywood.  Its resins also are used
in overlays for laminates and veneers, in engineered timber
products such as laminated veneer lumber and finger joinery, and
in insulation applications.

                    About Orica Limited

Orica is a publicly listed Australian company operating in over
50 countries with annual sales of about US$3 billion. It is the
leader in its chosen markets, globally in commercial explosives
and regionally in chemicals and paints.

                          About Hexion

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or  
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
company has 86 manufacturing and distribution facilities in 18
countries.

The company has its Asian headquarters in Singapore, with
offices in Australia, China, Korea, Malaysia, New Zealand,
Taiwan, and Thailand.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Nov. 16, 2006, that Moody's Investors Service assigned B3
ratings to the new guaranteed senior secured second lien notes
due 2014 of Hexion Specialty Chemicals Inc.  The company expects
to issue roughly US$825 million of notes split (55/45) between
fixed and floating rate notes.  The new notes will be used to
refinance roughly US$625 million of existing second lien notes
and partially fund a US$500 million dividend to existing
shareholders.  A US$375 million increase in the company's
existing guaranteed senior secured first lien term loan to
US$2 billion, rated Ba3, will fund the remainder of the
extraordinary dividend.

Moody's also affirmed Hexion's other long term debt ratings and
its SGL-2 speculative grade liquidity rating.  As a result of
this refinancing, the LGD assessment rates have changed as shown
in the table below.  The outlook is stable and the ratings on
the existing second lien notes will be withdrawn upon successful
completion of the refinancing.

New ratings assigned:

   * Hexion Specialty Chemicals Inc.

   -- Floating Rate Gtd. Second Lien Sr. Sec Notes due 2014 --
      B3, LGD5, 75%; and

   -- Fixed Rate Gtd Second Lien Sr Sec Notes due 2014, -- B3,
      LGD5, 75%.

Ratings affirmed with revised LGD rates:

   -- US$225mm Gtd Sr Sec Revolving Credit Facility due 5/2011
      -- Ba3, LGD2, 24% from 29%;

   -- US$50mm Gtd Sr Sec Letter of Credit Facility due 5/2011 --
      Ba3, LGD2, 24% from 29%;

   -- US$1,625mm Gtd Sr Sec Term Loan due 5/2013 -- Ba3, LGD2,
      24% from 29%*;

   -- US$300mm Flt Rate Gtd Second Lien Sr Sec Notes due 7/2010
      -- B3, LGD5, 75% from 77%**;

   -- US$325mm 9.0% Gtd Second Lien Sr Sec Notes due 7/2014 --
      B3, LGD5, 75% from 77%**; and

   -- US$34.0mm Pollution Control Revenue Bonds Series 1992 due
      12/2009 -- B3, LGD5, 75% from 77%.

Ratings affirmed:

   * Hexion Specialty Chemicals Inc.

   -- Corporate Family Rating -- B2;

   -- Probability of Default Rating -- B2;

   -- US$114.8mm 9.2% Sr. Unsec Debentures due 3/2021 -- Caa1,
      LGD6, 94%;

   -- US$246.8mm 7.875% Sr. Unsec Notes due 2/2023 -- Caa1,
      LGD6, 94%; and

   -- US$78.0mm 8.375% S.F. Sr. Unsec Debentures due 4/2016 --
      Caa1, LGD6, 94%.

Standard & Poor's Ratings Services assigned its 'B+' rating and
its recovery rating of '3' to Hexion Specialty's US$1.675
billion senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


ISIS HAIR: Wind-Up Hearing Slated for February 9
------------------------------------------------
A petition to wind up the operations of Isis Hair & Beauty Salon
Pte Ltd will be heard before the High Court of Singapore on
Feb. 9, 2007, at 10:00 a.m.

Ang Poh Hong filed the wind-up petition against the company on
Jan. 17, 2007.

Ang Poh Hong's solicitor can be reached at:

         Haq & Selvam
         80 Raffles Place
         #45-05 UOB Plaza 1
         Singapore 048624


PETROLEO BRASILEIRO: Completes Nova Piratininga Plant Expansion
---------------------------------------------------------------
Brazilian state oil firm Petroleo Brasileiro SA said in a
statement that it has concluded the expansion of its gas-fired
Nova Piratininga power plant.

According to Petroleo Brasileiro's statement, the expansion at
Nova Piratininga increases the plant's capacity to 560 megawatts
from 370 megawatts.  The plant is in Sao Paulo.  It launched
commercial operations in early 2005.

Business News Americas relates that the power plant's name was
changed to Fernand Gasparian, in honor of a local journalist who
fought against the 1964-85 military dictatorship.

According to BNamericas, Petroleo Brasileiro has disclosed plans
to invest US$191 million in Sao Paulo power plants from 2007 to
2011.  Investment would include:

   -- conversion of gas-fired power plants to operate with other
      fuels; and

   -- construction of the 160-megawatt Cubatao gas-fired plant.

Petroleo Brasileiro will also rename its 928-megawatt gas-fired
Maca power plant in Rio de Janeiro to UTE Mario Lago, BNamericas
states.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, 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: Gets US$1.16-Bil. Loan for Ship Building
-------------------------------------------------------------
Transpetro, Petroleo Brasileiro SA's transportation unit, inked
Jan. 31 a US$1.2 billion (EUR925 million) pact for 10 new oil
tankers of the Suezmax type.

The first phase of the Transpetro Fleet Modernization and
Expansion Program, which foresees the construction of 26 oil
tankers at a total cost of US$2.8 billion, is expected to
generate 22,000 new jobs.

The first 10 tankers will be built by the Atlantico Sul
consortium, comprised of: Andrade Gutierrez, Camargo Correa,
Queiroz Galvao and Aker Promar, the Associated Press says.

Brazzil Magazine says the new ships will be built at Rio Naval
Consortium, Maua Jurong Shipyard and Itajai Shipyard.

Banco Nacional de Desenvolvimento Economico e Social S.A.,
Brazil's state-owned bank, will help finance the project with a
BRL2.47 billion loan (US$1.16 billion, EUR895 million),
according to a statement from the Brazilian President's press
office.  The loan, the largest-ever financing provided by the
state bank, is aimed at reviving the country's naval industry,
which was the world's second largest in the 1970s, but dwindled
in a decade later, Brazzil Magazine relates.

On top of Brazil's program to revive the shipbuilding industry,
Petroleo Brasileiro will also increase its fleet for its own
purposes. Of its 130 operating vessels, the company owns only 52
of them.  Being the country's largest oil company, Petroleo
Brasileiro's new ships will be utilized to deliver coastwise
shipping needs and meet long-distance transporation demands,
Brazzil Magazine says.

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.


VIRTON PTE: Creditors' Proofs of Debt Due on Feb. 26
----------------------------------------------------
Virton Pte Ltd, which is in members' voluntary liquidation,
requires its creditors to submit their proofs of debt by
Feb. 26, 2007.

Creditors who will not be able to prove debts by the due date
will be excluded from sharing in the company's distribution of
dividend.

The liquidators can be reached at:

         Yeap Lam Kheng
         Bob Yap Cheng Ghee
         c/o 16 Raffles Quay #22-00
         Hong Leong Building
         Singapore 048581


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

TMB BANK: To Submit Recapitalization Plan in March
--------------------------------------------------
TMB Bank is still working on the final details of its proposed
recapitalization and expects to submit it to the Finance
Ministry by March, The Bangkok Post reports, citing TMB Chief
Executive Officer Subhak Siwaraksa as saying in a press
conference.

Mr. Subhak, however, declined to quote an estimate of the
capital needed by the bank by saying that it depends on several
factors including the bank's operating profits, reduction of
non-performing loans and loan expansion, the report says.

Bangkok Post recounts that the Finance Ministry earlier this
month played down reports that TMB needed to raise THB35 billion
this year after reporting a net loss of THB12.28 billion last
year.

TMB Bank's capital-increase plan states that it needs to raise
its capital adequacy ratio from 10.4% to 12%.  

In addition, the bank intends to wipe out retained losses by
reducing its stocks' par value, which would not impact on
shareholders except the Finance Ministry, which is the bank's
preferred shareholder, The Nation notes.

Bangkok Post relates that the bank's non-performing assets and
non-performing loans, which totaled THB56 billion at the end of
2006, are expected to decline to 5% by the end of the year.  The
bank sold off THB9 billion in non-performing loans earlier this
month and hopes to sell a total of THB20 billion in distressed
assets and loans this year, Bangkok Post adds.

"The bank has to decrease bad loans by THB20 billion to meet the
target on NPL reduction to 5% this year.  Our new loans will
increase by 10%," Mr. Subhak said.

In addition, the bank targets raising savings-account deposits
by THB25 billion this year.  That would decrease its fixed-
deposit proportion, helping TMB to lower interest expenses, the
Nation notes.

                          *     *     *

Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders  
financial services to all groups of customers.   TMB Bank had
total assets of about THB717 billion as at December 31, 2005.

Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.

On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.

Moody's Investor Service gave TMB Bank a 'Ba1' Junior
Subordinated Debt Rating and an 'E+' Bank Financial Strength
Rating.

Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.


TOTAL ACCESS: NTC Orders TOT to Integrate New Mobile Numbers
------------------------------------------------------------
Thailand's National Telecommunications Commission instructed TOT
Pcl to integrate 1.5 million new mobile-phone numbers from each
of Total Access Communication Pcl into its system immediately
and permanently, The Nation reports.

According to The Nation, the NTC also instructed the state
telecom firm to do the same with Total Access' rival, True Move.

The report relates that Suranan Wongvithayakamjorn, NTC
secretary general, said TOT would face fines or revocation of
its license if it refuses to heed the instructions.

Sigve Brekke, DTAC's chief executive however informed the Nation
that TOT had already completed integrating his company's 1.5
million new mobile-phone numbers into its network.

True Move CEO Supachai Chearavanont meanwhile said he had not
yet checked whether the state agency had completed the same
process for his company's new numbers.

As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 12, TOT declined to integrate into its network DTAC and
True Move's new numbers on the grounds that both companies had
not paid their access charges.  

The stand-off led DTAC and True Move to seek an injunction
against TOT's action from the Central Administrative Court where
it was ruled in favor of the two companies, the Nation relates.

                          *     *     *

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

                          *     *     *

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

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

On Jan. 12, 2007, Fitch Ratings affirmed the ratings of Total
Access Communication following the proposed amendments to the
Thailand's Foreign Business Act.

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

    -- National Long-term rating at A(tha);

    -- National Short-term rating at F2(tha); and

    -- National senior unsecured rating at A(tha).

The Outlook on DTAC's ratings is Stable.



                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  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
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                 *** End of Transmission ***