---

        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, March 5, 2007, Vol. 10, No. 45

                            Headlines

A U S T R A L I A

ABPACK FISH: Liquidator to Present Wind-Up Report
ADOBE HOMES: Placed Under Members' Voluntary Wind-Up
ADVANCED MARKETING: Court Okays PGW's Distribution Rights Sale
ADVANCED MARKETING: Panel Wants to Hire Traxi as Advisor
ADVANCED MARKETING: Court Approves Qualified Bidding Protocol

AUSTRAMOTIVE HOLDINGS: Members' Final Meeting Set for March 23
BHB PLUMBING (QUEENSLAND): Enters Creditors' Voluntary Wind-Up
BRIGHTPOINT INC: Inks Agreement to Purchase Daangaard Telecom
BRIGHTPOINT INC: Dangaard Buy Cues S&P to Revise Outlook to Neg.
CARDELLA PTY: Members to Receive Wind-Up Report

CHATTEM INC: Earns US$45.1 Million in Year Ended Nov. 30, 2006
CREDIT SUISSE (PACIFIC): Undergoes Voluntary Wind-Up
CROWN CASTLE: S&P Rates US$850 Million Secured Facilities at BB+
CROWN CASTLE: S&P Holds BB+ Rtg. on US$900 Mil. Credit Facility
GETTY IMAGES: Gets Notice of Event of Default for Filing Failure

GETTY IMAGES: To Acquire WireImage for US$200 Million in Cash
JAMERICH PTY: Appoints Robyn Beverley McKern as Liquidator
METAL STORM: Posts AU$8.7-Million for Year-Ended December 2006
PEABODY ENERGY: George Schuller Named as VP in U.S. Operations
PETER WALKER: Undergoes Members' Voluntary Wind-Up

PSIVIDA LIMITED: Reports AU$100.7-Bln. Net Loss for HY Dec. 2006
R B ANDREWS: Members Opt to Close Business


C H I N A   &   H O N G  K O N G

BENQ: Plans to Launch 65-Inch LCD TV in Second Half
BOE TECHNOLOGY: To Invest CNY40 Million in Unit's Project
CITIC BANK: BBVA Aims to Increase Shareholding Stake by 2008
FAIRFIELD DEVICES: Liquidator Quits Post
HUA XIA: Teams with Deutsche Bank on Euro Remittance Service

KAYEAR INVESTMENT: Filing Proofs of Debt Due on April 4
KIN SANG: Shareholders Resolve to Close Firm
MEDISINO LIMITED: Members to Receive Wind-Up Report
MISSLER SOFTWARE: Members' Final Meeting Slated for April 3
PG TIME: Creditors' Proofs of Claim Due on April 3

POWER SPEED: Names Fung Kit Yee as Liquidator
SEGA.COM ASIA: Creditors Must Prove Debts by March 23
SUCCESS INFO: Loses Chinaunionpay Shares in Court Verdict
SUNNY SPREAD: Appoints Chiu Ming Chung Joe as Liquidator
UDL HOLDINGS: Posts Net Profit of HK$29.72 Million for 2006

VETERAN INVESTORS: Members and Creditors to Meet on April 13
WINBASE INTERNATIONAL: Shareholders Agree to Liquidate Business


I N D I A

PUNJAB NATIONAL BANK: Appoints L. M. Fonseca as New Director
RELIANCE INDUSTRIES: Unit to Foray into Stationery Business
RELIANCE INDUSTRIES: To Consider Declaring Interim Dividend
STATE BANK OF INDIA: Hikes BPLR from 11.50% to 12.25%


I N D O N E S I A

ALCATEL-LUCENT: Gets US$110-Mil. Columbia Network Contract
ALCATEL-LUCENT: Partners with GE Capital in U.K. and Ireland
ALCATEL-LUCENT: Expands SFERIA S.A.'s Fixed Wireless Network
AVNET INC: Plans to Raise US$250 Mil. to Repay Revolving Credit
FREEPORT-MCMORAN: S&P Lifts Corporate Credit Rating to BB

FOSTER WHEELER: Unit Gets Full Release on Longview Power Project
GOODYEAR TIRES: Revises U.S. Pension, Retiree Benefit Plan
HILTON HOTELS: To Sell Scandic Hotel Chain for EUR833 Million
PERTAMINA: Gov't. Prepares to Launch IPO of Subsidiaries


J A P A N

SAPPORO HOLDINGS: Seeks More Information on Steel Partners' Bid


K O R E A

LG TELECOM: Accuses SK & KTF of Preventing Customers to Transfer
NOVELIS INC: To Create Environmental Preservation Area
SANDISK CORP: Cost Cutting Plan to Reduce Workforce by 10%
TOWER AUTOMOTIVE: Has Filed Preference and Avoidance Actions
TOWER AUTOMOTIVE: Wants to File Preference Actions Under Seal

* South Korea's Corporate Restructurings Nearly 66% Complete


M A L A Y S I A

SUREMAX GROUP: Receives Summon and Statement of Claims from MBB
TALAM CORP: Provides Updates on Default Status
TALAM CORP: Wind-Up Petition Against Unit Heard on Feb. 27
TANCO HOLDINGS: Incurs MYR11.55 Mil. Net Loss in 4Q 2006
TECHVENTURE BERHAD: Fourth Quarter Net Loss Reaches MYR37.56MM

TENGGARA OIL: Defaults Due Feb. 28 Aggregates to MYR28 Million
UNITED CHEMICAL: Debt Restructuring Completion Date Extended
WEMBLEY INDUSTRIES: Balance Sheet Upside Down at December 2006


N E W   Z E A L A N D

AIR NEW ZEALAND: Court Rejects Application to Strike EPMU's Case
ALBATROSS PROPERTIES: CIR Files Liquidation Petition
BLUE ROOM: Creditors to Lodge Claims by March 15
CER GROUP: Posts NZ$53,000 Loss for Year-Ended December 2006
CERIC ENTERPRISES: Shareholders Opt to Close Business

DK MANAGEMENT: Creditors Must Prove Debts by March 14
GILS FINANCE: Liquidation Hearing Set for March 8
GORE STREET: Liquidation Hearing Slated for April 12
KIWIMARK LTD: Creditors Must Prove Claims by March 20
M G WATERPROOFING: Court to Hear CIR's Liquidation Petition

NEW OAKLAND: Court Sets Liquidation Hearing on March 8
RAINBOW ENGINEERING: Shareholders Name Joint Liquidators
RODD JACQUES: Court Appoints Joint Liquidators
SIGMA PROPERTIES: Faces Liquidation Proceedings


P H I L I P P I N E S

APC GROUP: Unit Seeks DENR Permit to Explore Northern Zambales
APEX MINING: Holds ASM on Feb. 28; Reports Approved Resolutions
GEOGRACE RESOURCES: Hires J.P. Morgan as Financial Advisor
MANILA ELECTRIC: To Increase Authorized Capital Stock to PHP14BB
PRIME ORION: Net Loss in 4th Qtr. 2006 Narrows to PHP40.5 Mil.

* Philippine's Sound Economic Fundamentals Lift Stock Market


S I N G A P O R E

LEVI STRAUSS: Secures New US$325-M Senior Unsecured Term Loan
LEVI STRAUSS: Moody's Rates Proposed US$325-M Senior Loan at B2
PETROLEO BRASILEIRO: Will Start Maintenance on Bolivian Plant
PETROLEO BRASILEIRO: Building Pipeline with Mitsui, Camargo
READER'S DIGEST: Completes US$17 Per Share Cash Merger

READER'S DIGEST: Ripplewood Holdings Completes Acquisition
STATS CHIPPAC: Moody's Reviews Ratings for Possible Upgrade


T H A I L A N D

ARVINMERITOR INC: Repays Outstanding Term Loan B in Full
ARVINMERITOR INC: Earns US$7 Mln in Quarter Ended December 31
ARVINMERITOR INC: Initial Purchasers Buy US$25M Additional Notes
BLOCKBUSTER INC: Posts US$12.9MM Net Income in 2006 4th Quarter
iTV PCL: Prime Minister's Office Outlines Plan for Takeover

* SET Posts "SP" Sign on 11 Firms Unable to Submit Fin'l Report

     - - - - - - - -

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

ABPACK FISH: Liquidator to Present Wind-Up Report
-------------------------------------------------
Abpack Fish Exports Pty Ltd will hold a final meeting for its
members on March 27, 2007, at 10:00 a.m.

At the meeting, Liquidator Bruce N. Mulvaney will present the
final accounts of the company's wind-up proceedings and property
disposal.

In a report by the Troubled Company Reporter - Asia Pacific, the
company commenced liquidation proceedings on July 27, 2006.

The company's Liquidator can be reached at:

         Bruce N. Mulvaney
         Bruce Mulvaney & Co
         1st Floor, 613 Canterbury Road
         Surrey Hills, Victoria 3127
         Australia

                       About Abpack Fish

Located in Victoria, Australia, Abpack Fish Exports Pty Ltd
operates miscellaneous food stores.


ADOBE HOMES: Placed Under Members' Voluntary Wind-Up
----------------------------------------------------
The members of Adobe Homes Pty Ltd met on Feb. 6, 2007, and
resolved to wind up the company's operations.

Accordingly, Stephen Robert Dixon and Laurence Andrew Fitzgerald
were appointed as liquidators.

The company's Liquidators can be reached at:

         Stephen R. Dixon
         Horwath BRI (Victoria) Pty Ltd
         Chartered Accountants
         Level 30, The Rialto
         525 Collins Street
         Melbourne, Victoria 3000
         Australia

                       About Adobe Homes

Headquartered in New South Wales, Australia, Adobe Homes Pty Ltd
is a general contractor of single-family houses.


ADVANCED MARKETING: Court Okays PGW's Distribution Rights Sale
--------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
obtained authority from the United States Bankruptcy Court for
the District of Delaware to sell Publishers Group West Inc.'s
rights under its distribution agreements with various publishers
to Perseus Books LLC and Client Distribution Services Inc.

The Court also approved the Debtors' purchase agreement with
Perseus including the assumption and assignment of contracts to
CDS.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 21, 2007, National Book Network Inc. made a competing and
superior bid to purchase PGW's rights under its distribution
agreements with various publishers, as disclosed by Rich
Publishing LLC in its objection to the proposed sale to Perseus
and CDI.  NBN offered to pay 85 cents on the dollar for the
claims of all PGW publishers, Rich Publishing said.

As reported in the TCR-AP on Feb. 22, 2007, Amber-Allen
Publishing Inc. disclosed that it will not enter into a
Publisher Agreement with Perseus.  Consequently, it asked the
Court to include these provisions in the order approving the
sale of PGW's rights under its distribution agreements to
Perseus and CDS:

   (a) The Amber-Allen Distribution Agreement is deemed
       rejected, effective immediately upon entry of the ruling
       granting the PGW Sale; and

   (b) Within five business days of entry of that Court ruling,
       PGW will cooperate with Amber-Allen to return Amber-
       Allen's books, and Amber-Allen will pay the reasonable
       freight and handling charges.

Judge Christopher S. Sontchi clarified in its order that nothing
will constitute an exercise of jurisdiction over an approval by
the Court of any of the Consenting Publisher Distribution
Agreements or the New Publisher Agreements other than to
authorize the Debtors to assume and assign the Assigned
Contracts to CDS, including the requirement of the execution of
the Agreements.

Upon the closing of the PGW Sale, the Distribution Agreements of
all Consenting Publishers will be deemed assumed and assigned
subject to the terms of the Purchase Agreement and the
Assignment Agreement.  Upon the assumption and assignment, no
payments made to Consenting Publishers prepetition on account of
obligations due under the Assumed Contracts will be recoverable
by, or for the benefit of, the Debtors' estates under the
Bankruptcy Code including Sections 547 or 550.

"We are excited to move forward as quickly as possible to write
checks to PGW clients and to provide some certainty for PGW
employees," said David Steinberger, president and chief
executive of Perseus, The New York Times reported.

National Book Network Inc., which formally delivered its
competing bid to the Court on Feb. 14, 2007, offered to pay 85
cents on the dollar for the claims of all PGW publishers.

Perseus, on the other hand, offered 70 cents on the dollar for
the claims of all Consenting publishers.

Judge Sontchi said the consideration under the PGW Sale is fair
and reasonable and provides reasonably equivalent value in
exchange for the assets transferred.  The sale process was fair.
The competitive sales process was not stifled.  The price was
negotiated at arm's-length between commercially sophisticated
entities represented by counsel.  The price was not the product
of collusion or unfair or inequitable conduct and was the
highest price offered.

Perseus Books acted in good faith within the meaning of Section
363(m) of the Bankruptcy Code, Judge Sontchi added.

               Amber-Allen Contract Deemed Rejected

To address the objection filed by Amber-Allen Publishing, Inc.,
Judge Sontchi ruled that:

   (a) the marketing and distribution agreement between PGW and
       AAP will be deemed rejected and terminated effective upon
       closing of the PGW Sale;

   (b) PGW will cooperate with AAP to enable AAP to retrieve all
       Products in PGW's possession, custody or control within
       15 days after the closing of the PGW Sale with AAP paying
       all freight and handling charges for the retrieval;

   (c) upon the closing of the PGW Sale, AAP will be deemed to
       have waived any claim for damages arising out of the
       rejection of the AAP Agreement; and

   (d) notwithstanding the rejection and termination of the AAP
       Agreement, AAP will continue to accept returns of
       Products from PGW's trade accounts until the earlier of
       the effective date of any confirmed Plan in the Debtors'
       Chapter 11 cases, conversion to Chapter 7, or the date
       that is one year from the rejection and termination, and
       will credit the returns dollar for dollar against AAP's
       prepetition unsecured claim.

All objections to the Sale that were not previously withdrawn
are overruled.

A full-text copy of the Court-approved Purchase Agreement
between the Debtors and Perseus Books is available at no charge
at http://researcharchives.com/t/s?1a2d

                     About Advanced Marketing

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

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


ADVANCED MARKETING: Panel Wants to Hire Traxi as Advisor
--------------------------------------------------------
The Official Committee of Unsecured Creditors in Advanced
Marketing Services Inc. and its debtor-affiliates' bankruptcy
cases has selected Traxi LLC to serve as its financial advisors
because of the firm's experience and knowledge.  The Committee
believes that Traxi is well qualified to represent it in the
Debtors' bankruptcy cases.

Accordingly, the Creditors Committee asks the United States
Court for the District of Delaware to approve Traxi's retention,
effective as of Jan. 12, 2007.

As the Creditors Committee's financial advisors, Traxi will:

   (a) provide financial analysis related to the proposed
       debtor-in-possession financing motion and other first day
       motions, including assistance in negotiations, attendance
       at hearings, and testimony;

   (b) review all financial information prepared by the Debtors
       or its consultants as requested by the Committee,
       including a review of the Debtors' financial statements
       as of the Petition Date showing in detail all assets and
       liabilities and priority and secured creditors;

   (c) monitor the Debtors' activities regarding cash
       expenditures, receivable collections, asset sales and
       projected cash requirements;

   (d) attend at meetings including the Committee, the Debtors,
       creditors, their attorneys and consultants, federal and
       state authorities, if required;

   (e) review the Debtors' periodic operating and cash flow
       statements;

   (f) review the Debtors' books and records for intercompany
       transactions, related party transactions, potential
       preferences, fraudulent conveyances and other potential
       prepetition investigations;

   (g) investigate any prepetition acts, conduct, property,
       liabilities and financial condition of the Debtors, their
       management, creditors including the operation of their
       business, and as appropriate, avoidance actions;

   (h) review any business plans prepared by the Debtors or
       their consultants;

   (i) review and analyze proposed transactions for which the
       Debtors seek Court approval;

   (j) assist in the Debtors' sale process, collectively or in
       segments, parts or other delineations, if any;

   (k) assist the Committee in developing, evaluating,
       structuring and negotiating the terms and conditions of
       all potential plans of reorganization;

   (l) estimate the value of the securities, if any, that may be
       issued to unsecured creditors under any the Plan;

   (m) provide expert testimony on the results of the
       Committee's findings;

   (n) analyze potential divestitures of the Debtors'
       operations;

   (o) assist the Committee in developing alternative Plans,
       including contacting potential Plan sponsors if
       appropriate; and

   (p) provide the Committee with other and further financial
       advisory services with respect to the Debtors, including
       valuation, general restructuring and advice with respect
       to financial, business and economic issues, as may arise
       during the course of the restructuring as requested by
       the Committee.

Traxi will be paid on an hourly basis, plus reimbursement of the
actual and necessary expenses that Traxi incurs in accordance
with the ordinary and customary rates, which are in effect on
the date the services are rendered, William Sinnott of Random
House, the Committee Chairperson, says.

Traxi's hourly rates are:

        Professional                      Hourly Rate
        ------------                      -----------
        Partners/Managing Directors     US$450 - US$525
        Managers/Directors              US$275 - US$425
        Associate/Analysts              US$125 - US$275

According to Mr. Sinnott, the charges set forth are based on
actual time charges on an hourly basis and based on the
experience and expertise of the professional involved.  The
hourly rates set forth are subject to periodic adjustments to
reflect economic and other conditions.

Anthony J. Pacchia, senior managing director and unit holder at
Traxi, assures the Court that Traxi represents no other entity
in connection with the Debtors' bankruptcy cases, is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code, and does not hold or represent
any interest adverse to the Creditors Committee with respect to
the matters on which it is to be employed.

                     About Advanced Marketing

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

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


ADVANCED MARKETING: Court Approves Qualified Bidding Protocol
-------------------------------------------------------------
The Hon. Judge Sontchi approved the Qualified Transaction
Procedures proposed by Advanced Marketing Services Inc. and its
debtor-affiliates, and designated Baker & Taylor as stalking
horse bidder.

Judge Sontchi ruled that the Debtors will provide these Stalking
Horse Protections to Baker & Taylor, in cash and at the closing
of an alternative transaction:

   (a) a break-up fee in an amount equal to 2% of the sum of (i)
       US$20,000,000, (ii) the minimum Selected APG Inventory
       Purchase Price, (iii) Advanced Marketing Services Inc.'s
       and Baker & Taylor's jointly established good faith
       estimate of the APG Product Prepayment Price, and (iv)
       AMS' and Baker & Taylor's jointly established good faith
       estimate of the Accounts Receivable Price; and

   (b) Baker & Taylor's reasonable and documented out-of-pocket
       fees and costs, including costs of counsel, not exceeding
       US$300,000.

The Stalking Horse Protections are entitled to status and
payment as super-priority administrative expenses in the
Debtors' Chapter 11 cases, Judge Sontchi adds.

                    Offer Evaluation Process

Initial Qualified Offers will be considered only if they provide
consideration for the proposed purchased assets that exceeds the
consideration offered for the assets by Baker & Taylor plus the
Stalking Horse Protections -- calculated under the assumption
that the Stalking Horse Protections will equal around
US$2,000,000.  Successive Qualified Offers will be considered
only if they exceed the previous offer by US$500,000 increments.

The Debtors may recess the Offer Evaluation Process from time to
time in their discretion to assess Qualified Offers or permit
participants to alter or increase their Qualified Offers.   The
Debtors may conduct the Offer Evaluation Process as an auction,
a series of negotiations or whatever other means it determines
in its business judgment.

                          Multiple Lots

The Offer Evaluation Process may proceed in multiple lots,
provided that any participant will have an opportunity to submit
a Qualified Offer on one or more lots or on all lots together,
and the Debtors will be free to accept the Qualified Offer or
Offers that, alone or in conjunction with others, the Debtors
deems to comprise the highest and best offer available.

                            Inventory

Unless the Debtors' inventory is sold pursuant to a Qualified
Offer approved by the Bankruptcy Court, the Debtors will propose
and file with the Bankruptcy Court a program to provide for the
return of the Debtors' inventory to the publishers that sold the
inventory for values and on terms as agreed by the Debtors and
the Official Committee of Unsecured Creditors, or as otherwise
ordered by the Bankruptcy Court.  The program will be effective
after payment of a certain closing payoff amount.

Upon the conclusion of the Offer Evaluation Process, the Debtors
will file and serve a supplement identifying the highest and
best Qualified Offers, and seek approval of the sale of their
assets pursuant to Sections 363 and 365 of the Bankruptcy Code
to the party or parties submitting Qualified Offers.

The Court sets the hearing on the Sale Motion today, March 5.

The Court directs the Debtors to file a schedule of proposed
cure amounts for all executory contracts proposed to be assumed
and assigned under the Sale Motion.

                    About Advanced Marketing

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

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


AUSTRAMOTIVE HOLDINGS: Members' Final Meeting Set for March 23
--------------------------------------------------------------
The members of Austramotive Holdings Pty Ltd will hold a final
meeting on March 23, 2007, at 9:00 a.m., to receive the accounts
of the company's wind-up proceedings and property disposal.

According to the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Dec. 20, 2006.

The company's liquidator can be reached at:

         Doug Perry
         c/o Shepard Webster & O'Neill Pty Ltd
         Level 1, 434 Nepean Highway
         Frankston, Victoria 3199
         Australia

                  About Austramotive Holdings

Located in Victoria, Australia, Austramotive Holdings Pty Ltd is
an investor relation company.


BHB PLUMBING (QUEENSLAND): Enters Creditors' Voluntary Wind-Up
--------------------------------------------------------------
The members of BHB Plumbing (Queensland) Pty Ltd met on Feb. 15,
2007, and resolved to voluntarily wind up the company's
operations.

Accordingly, H. A. MacKinnon and K. L. Sutherland were appointed
as joint and several liquidators.

The company's Liquidators can be reached at:

         H. A. MacKinnon
         K. L. Sutherland
         Bent & Cougle Pty Ltd
         Chartered Accountants
         332 St Kilda Road
         Melbourne, Victoria 3004
         Australia

                       About BHB Plumbing

BHB Plumbing (Queensland) Pty Ltd is a distributor of plumbing,
heating, and air-conditioning equipments.  The company is
located in Victoria, Australia.


BRIGHTPOINT INC: Inks Agreement to Purchase Daangaard Telecom
-------------------------------------------------------------
Brightpoint Inc. disclosed Tuesday that it has entered into a
definitive Stock Purchase Agreement to acquire all of the
outstanding shares of Dangaard Telecom A/S.

"This transaction will join together two of the most prominent
players in the wireless handset distribution and logistics
industry to create the true global leader," stated Robert J.
Laikin, Chief Executive Officer and Chairman of the Board of
Brightpoint, Inc.  "I firmly believe our two companies
complement each other perfectly in terms of geography, service
offerings and shared commitment to operational excellence.  Our
vendors, customers, employees and shareholders will all benefit
from the global platform created by this transaction."

"Our combined resources will allow us to leverage the
capabilities and best practices from both companies in order to
offer advanced wireless services to our customers and business
partners in the many attractive markets around the world in
which we operate," stated Michael Koehn Milland, Chief Operating
Officer of Dangaard Telecom.

"We believe that the combined group will have the best in class
platform to deliver the most innovative, efficient and effective
solutions to global wireless handset manufacturers, network
operators and retailers.  The proposed transaction is extremely
compelling and we believe that the combined company will enjoy
substantial synergies and unique growth prospects," stated
Christian Dyvig, Partner, Nordic Capital.

The executive management team of the combined company post-
closing will be:

Brightpoint, Inc.
-----------------  

   * Robert J. Laikin
     Chairman of the Board and Chief Executive Officer

   * J. Mark Howell
     Co-Chief Operating Officer and President, Americas

   * Michael Koehn Milland
     Co-Chief Operating Officer and President of International

   * Anthony W. Boor
     Executive Vice President and Chief Financial Officer

   * Steven E. Fivel
     Executive Vice President, General Counsel and Secretary

Regional
--------

Americas:

   * J. Mark Howell, Co-Chief Operating Officer and President,
     Americas

   * John J. Ludwig, Chief Financial Officer, Americas

Europe:

   * Steen F. Pedersen, President Europe

   * Hans Peter Alnor, Chief Financial Officer, Europe

Asia Pacific:

   * Bruce Thomlinson, President, Asia Pacific

   * Paul Ringrose, Chief Financial Officer, Asia Pacific

Emerging Markets:

   * Jac Currie, President, Emerging Markets

               Overview of the Proposed Transaction

The Boards of Directors of Brightpoint, Inc. and Dangaard
Holding, A/S have unanimously approved the proposed transaction.  
The proposed transaction is subject to customary closing
conditions including, without limitation, certain regulatory
approvals and the approval by Brightpoint's shareholders.  Under
the terms of the proposed transaction, Brightpoint, Inc. will
issue 30 million newly issued shares of its common stock and
$100,000 to Dangaard Holding A/S, an affiliate of Nordic Capital
Fund VI, in exchange for all of the outstanding shares of
Dangaard Telecom A/S.  The Shareholder will have the right to
nominate up to 3 members to serve on the Brightpoint, Inc. Board
of Directors (subject to approval by the Board's Corporate
Governance and Nominating Committee).  The number of directors
the Shareholder can nominate will decline if their ownership
percentage in Brightpoint, Inc. falls below certain agreed upon
thresholds.  The Brightpoint, Inc. Board of Directors will
continue to have 9 total Board Members.  Deutsche Bank
Securities acted as sole financial advisor and Blank Rome LLP
acted as legal counsel to Brightpoint.

Latham & Watkins LLP acted as legal counsel to Dangaard.

                      About Dangaard Telecom

Dangaard Telecom -- http://www.dangaard.com/-- is a privately  
held portfolio company of Nordic Capital Fund VI.  Dangaard is a
distributor of mobile phones, smartphones and original
accessories for mobile phones.  The company is the preferred
Value Adding Distributor for a number of the world's largest
manufacturers of mobile phones, Mobile Network Operators,
Service Providers, retail chains and enterprise customers.  The
strong position, gained through many years of experience, is
achieved by being flexible, proactive and innovative in the
relationship with its cooperation partners.  Today, Dangaard
Telecom is represented by subsidiaries in 14 countries.  The
company has approximately 1,000 employees.

                        About Brightpoint

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- engages in the distribution of  
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.
The company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                        *    *    *

On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.


BRIGHTPOINT INC: Dangaard Buy Cues S&P to Revise Outlook to Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on Brightpoint Inc. and revised the outlook to
negative from stable.  The actions followed the company's recent
announcement that it has agreed to acquire Dangaard Telecom A/S
for approximately US$308 million in stock.

"The outlook revision reflects a more leveraged financial
profile and potential integration issues," said Standard &
Poor's credit analyst Martha Toll-Reed.

The rating on Brightpoint reflects the company's fairly narrow
product base, significant but improving supplier concentration,
and relatively modest operating margins.  These factors are
partially offset by Brightpoint's good market position and
increased geographic, supplier, and customer diversity.

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- engages in the distribution of  
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.
The company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.


CARDELLA PTY: Members to Receive Wind-Up Report
-----------------------------------------------
The members of Cardella Pty Ltd will hold a final meeting on
March 27, 2007, at 2:00 p.m., to hear the liquidator's report
regarding the company's wind-up proceedings and property
disposal.

The company's liquidators can be reached at:

         Tim Norman
         Salvatore Algeri
         180 Lonsdale Street
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9208 7000

                       About Cardella Pty

Located in South Australia, Cardella Pty Ltd is an investor
relation company.


CHATTEM INC: Earns US$45.1 Million in Year Ended Nov. 30, 2006
--------------------------------------------------------------
Chattem Inc. reported US$45.1 million of net income on
US$300.5 million of revenues for the year ended Nov. 30, 2006,
compared with US$36 million of net income on US$279.3 million of
revenues for the year ended Nov. 30, 2005.

Total revenues increased 11% over the prior year excluding sales
of pHisoderm(R), which was divested in November 2005.  Revenue
growth for fiscal year 2006 was led by Gold Bond, Dexatrim,
Selsun, BullFrog and Pamprin along with the new product launch
of Icy Hot Pro-Therapy.

Net income for the fourth quarter of fiscal 2006 was US$4.9
million, compared to US$2.4 million in the prior year quarter.  
In the fourth quarter of fiscal 2006, the company recorded a
reserve for Icy Hot Pro-Therapy retail and in-house inventory
exposure totaling US$5.3 million which resulted in negative
sales for the brand and higher costs of sales during the fiscal
fourth quarter of 2006.

Total revenues for the fourth quarter of fiscal 2006 were
US$65.1 million, compared to total revenues of US$63.9 million
in the prior year quarter, representing a 2% increase.  Revenue
growth for the quarter was driven by the continued strength of
the Gold Bond, Dexatrim, BullFrog and Pamprin businesses offset
by a reduction in sales of Icy Hot Pro-Therapy resulting from a
reserve for retail returns recorded in the fourth quarter.

                       Financial Highlights

Gross margin for fiscal 2006 was 68.7%, compared to 71.4% during
fiscal 2005 largely attributable to the launch of Icy Hot Pro-
Therapy, which has lower gross margins than the company's other
products.

Advertising and promotion expense was 32% for fiscal 2006
compared to 27.5% during fiscal 2005, due primarily to increased
spending to support the company's new product introductions.

Selling, general and administrative expenses decreased to 15.6%
during fiscal 2006 compared to 16.9% during fiscal 2005
reflecting lower restricted stock and variable compensation
expense, offset by share-based payment expense under SFAS 123R.

During fiscal 2006, the company repurchased 1.2 million shares
at an average cost of US$33.57 per share, or US$39.3 million in
the aggregate.

The company completed a private offering of US$125 million 2%
Convertible Senior Notes, the proceeds of which were used to
fund in part the acquisition of brands from Johnson & Johnson.

The company successfully resolved its Dexatrim PPA litigation
and recovered US$19.3 million, net of legal expenses.

"From a capital structure perspective, we completed a US$125
million convertible debt offering on very attractive terms and
repurchased, during the first nine months of the fiscal year,
1.2 million shares of our common stock at an average price of
US$33.57 per share.  Also, the Dexatrim(R) PPA litigation was
brought to closure with the receipt of US$19.3 million before
taxes, or about US$0.65 per share.

"Operationally, Chattem experienced a very good year with solid
growth in sales led by strong performances from Gold Bond(R),
Dexatrim, BullFrog(R), Pamprin(R) and Selsun(R), the latter in
spite of unprecedented competitive pressures from Head &
Shoulders(R).

"Somewhat offsetting these positive events was the launch of Icy
Hot(R) Pro-Therapy(TM) which, while contributing to sales
growth, experienced disappointing overall performance resulting
in a direct operating loss of about US$0.20 and US$0.40 per
share in the fourth quarter and fiscal year, respectively, for
the brand.  Looking ahead to fiscal 2007, we anticipate another
excellent year with continued impressive performance of the base
business, smooth integration of the acquired brands and
management of Icy Hot Pro-Therapy at about break-even levels."

At Nov. 30, 2006, the company's balance sheet showed
US$415.3 million in total assets, US$279.7 million in total
liabilities, and US$135.6 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Nov. 30, 2006, are available for
free at http://researcharchives.com/t/s?1a1c

                       Acquisition of Brands

On Jan. 2, 2007, the company completed the closing of the
previously announced agreement to acquire the U.S. rights to
five leading consumer and over-the-counter brands from Johnson &
Johnson for US$410 million.  The acquired brands include ACT(R),
an anti-cavity mouthwash/mouth rinse; Cortizone, a
hydrocortisone anti-itch product; Unisom(R), an OTC sleep aid;
Kaopectate(R), an anti-diarrhea product; and Balmex(R), a diaper
rash product.

The acquisition was funded in part with the proceeds from a new
US$300 million term loan arranged and led by Bank of America
pursuant to a Fifth Amendment to and restatement of the
company's Credit Agreement, with the remaining funds principally
provided through the use of a portion of the proceeds derived
from the company's previously announced sale of US$125 million
2% Convertible Senior Notes due 2013.

"The company completed another outstanding year in fiscal 2006,
highlighted by several key events.  Most significantly, we
reached an agreement to acquire five major brands from Johnson &
Johnson, a transaction which subsequently closed on
Jan. 2, 2007," said Chief Executive Officer Zan Guerry.  

                          About Chattem

Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) --
http://www.chattem.com/-- manufactures and markets a variety   
of branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products.  The
company's products include Gold Bond medicated powder, Icy Hot
topical analgesic, Dexatrim appetite suppressant, and Bullfrog
sunblock.

Chattem has operations in the United Kingdom, Australia, and
Puerto Rico.

In December 2006, Moody's Investors Service confirmed the Ba3
corporate family rating of Chattem Inc.  and lowered the senior
subordinated rating to B2 from B1.

Standard & Poor's Ratings Services revised its outlook on
Chattem Inc. to stable from positive.  At the same time,
Standard & Poor's affirmed all of Chattem's ratings, including
its 'BB-' corporate credit rating.  Approximately US$151 million
of debt was affected by this action.


CREDIT SUISSE (PACIFIC): Undergoes Voluntary Wind-Up
----------------------------------------------------
At an extraordinary general meeting held on Feb. 12, 2007, the
members of Credit Suisse First Boston Pacific Finance Limited
resolved to wind up the company's operations.

In this regard, Keiran William Hutchison and John Raymond
Gibbons of Ernst & Young were appointed as liquidators.

The company's Liquidators can be reached at:

         Keiran William Hutchison
         John Raymond Gibbons
         Ernst & Young
         Level 37, 680 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9248 4991

                      About Credit Suisse

Located in New South Wales, Australia, Credit Suisse First
Boston Pacific Finance Limited is engaged with deposit banking.


CROWN CASTLE: S&P Rates US$850 Million Secured Facilities at BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' bank loan
rating and '1' recovery rating to the US$850 million in secured
bank loan facilities for Crown Castle Operating Co., a funding
conduit for Houston, Texas-based wireless communication tower
operator Crown Castle International Corp.

Proceeds from these bank facilities have been used to repurchase
US$600 million of common stock from investors Fortress
Investment Group, Greenhill Capital Partners and Abrams Capital.

At the same time, Standard & Poor's affirmed the 'BB' corporate
credit rating on Crown Castle and removed it from CreditWatch,
where it had been placed with negative implications on Oct. 13,
2006, following the company's reported definitive agreement to
acquire unrated wireless tower operator Global Signal Inc.  The
outlook is negative.

The acquisition of Global Signal nearly doubles the size of the
company's tower portfolio to around 23,000 from about 13,000,
and these assets are expected to contribute at least US$230
million in annual EBITDA.

"While the Global Signal and stock repurchase transactions
increase the combined consolidated debt to EBITDA to around 8x,
from the low-7x area, we expect that Crown Castle will be able
to achieve some modest improvement in its leverage over the next
few years due to growth in operating cash flows," said Standard
& Poor's credit analyst Catherine Cosentino.

However, Standard & Poor's do not anticipate material reduction
in total debt as we expect that the company will use most of its
net free operating cash flow to repurchase common stock.  Pro
forma for the acquisition of Global Signal, which closed in
early January 2007, and the new bank debt, the company will have
about US$6 billion of total debt outstanding, plus another
US$312 million of convertible preferred stock.

Crown Castle is expected to continue to maintain an aggressive
financial policy.  A good portion of the assumed stock
repurchases are likely to be funded with additional debt, mostly
in the form of additional securitized revenue notes, which can
be issued subject to a 2x minimum securitization fixed-charge
coverage ratio at the Crown Castle legacy securitization, and
could exceed US$1 billion over the next several years.

The cash flows generated by the business have a very high degree
of stability, given the long-term nature of the carrier
contracts and high contract renewal rates.  In addition, there
has been a trend toward longer-term contracts in this business
and no ability to terminate early without fully honoring the
contract.  Typical of the tower leasing industry, the high
operating leverage of the business also contributes to extremely
healthy tower gross profit and overall EBITDA margins, which
totaled 65% and 52%, respectively, for 2006.


CROWN CASTLE: S&P Holds BB+ Rtg. on US$900 Mil. Credit Facility
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' bank loan
and '1' recovery ratings on Crown Castle Operating Co.'s
US$900 million first-lien bank credit facility, which was
increased from US$850 million.

The 'BB+' rating is one notch above the corporate credit rating
on parent company Crown Castle International Corp., and the
recovery rating of '1' indicates Standard & Poor's expectations
for a full recovery of principal in a simulated payment default
scenario.

Proceeds from the US$650 million term loan have been used to
repurchase shares of parent company, Crown Castle, while the
revolving facility will be available for general corporate
purposes.

Crown Castle International Corp. -- http://www.crowncastle.com/
--  engineers, deploys, owns and operates shared wireless
infrastructure, including extensive networks of towers.  Crown
Castle offers wireless communications coverage to 68 of the top
100 United States markets and to substantially all of the
Australian population.  Crown Castle owns, operates and manages
over 10,600 and over 1,300 wireless communication sites in the
U.S. and Australia, respectively.


GETTY IMAGES: Gets Notice of Event of Default for Filing Failure
----------------------------------------------------------------
Getty Images, Inc., disclosed in a regulatory filing with the
U.S. Securities and Exchange Commission that on Feb. 21, 2007,
it received notice of an Event of Default related to the
Company's failure to file its Third Quarter Report.

The company had, on Nov. 29, 2006, received two notices of a
purported default from certain holders of the Company's
US$265 million aggregate principal amount of 0.50% Convertible
Subordinated Debentures, Series B due 2023.

The notices were received from holders who claimed to hold more
than 25% in principal amount of the outstanding Debentures
asserting that the company's failure to file its Quarterly
Report on Form 10-Q for the third quarter of 2006 with the SEC
by the prescribed filing date under SEC regulations was a
default under Section 17.01 of the Indenture dated as of
December 16, 2004, between the company, as issuer, and The Bank
of New York, as Trustee, relating to the Debentures.

Section 17.01 incorporates by reference Section 314(a) of the
Trust Indenture Act of 1940.  The notices of default demanded
that the company cure the purported default within 60 days from
their receipt, after which such default would allegedly develop
into an "Event of Default," as defined in the Indenture.  The
company did not cure the purported default within 60 days from
receipt of the notices of purported default.

The company does not believe that it has failed to perform any
of its obligations under the Indenture because the Indenture
does not contain an express covenant requiring the company to
provide the Trustee or the bondholders with periodic reports
such as the Quarterly Report on Form 10-Q for the third quarter
of 2006.  While Section 314(a) of the TIA is incorporated into
the Indenture by virtue of Section 17.01 thereof, the company
does not believe that the TIA requires periodic reports to be
filed with the SEC or provided within any prescribed period of
time.  Consequently, in the company's view, these notices of
default are without merit.

Because the company has received a notice of an "Event of
Default" from the Trustee, the Trustee or holders of at least
25% in aggregate principal amount of the Debentures then
outstanding could declare all unpaid principal and accrued
interest on the Debentures then outstanding to be immediately
due and payable.  The company believes that if the Debentures
were to be accelerated, it would have adequate financial
resources to pay any unpaid principal and any interest that
would then be due on the Debentures and also would have the
option of contesting the legal basis for the notices of default
and any such acceleration.

                        About Getty Images

Headquartered in Seattle, Washington, Getty Images, Inc. --
http://corporate.gettyimages.com/-- creates and distributes  
visual content.  The company has corporate offices in Australia,
the United Kingdom and Argentina.

                         *     *     *

In December 2006, Standard & Poor's Ratings Services lowered its
ratings on Seattle, Wash.-based visual imagery company Getty
Images Inc., including lowering the corporate credit rating to
'B+' from 'BB', and placed the ratings on CreditWatch with
developing implications.

Moody's Investors Service, in June 2006, upgraded the credit
ratings of Getty Images, Inc. and changed the ratings outlook to
stable from positive.  The upgrade in the corporate family
rating to Ba1 from Ba2 reflected Getty's leading market
position, improving credit metrics, impressive operating margins
and good secular growth trends in the stock imagery market.  
Moody's also upgraded its rating on the company's US$265 million
series B convertible subordinated notes due 2023, to Ba2 from
Ba3.


GETTY IMAGES: To Acquire WireImage for US$200 Million in Cash
-------------------------------------------------------------
Getty Images, Inc., has entered into an agreement to purchase
WireImage for approximately US$200 million in cash.  The deal
also will include MediaVast, Inc. the owner of WireImage, and
sub-brands FilmMagic and Contour Photos.  The acquisition is
subject to regulatory review and other customary closing
conditions.

Getty Images says that the acquisition is expected to support
the company's stated strategy of accelerating the growth of its
editorial imagery business.

"The demand for entertainment, event and celebrity imagery is
growing exponentially, and Getty Images has determined that
there are great growth opportunities in the category," said
Jonathan Klein, co-founder and CEO of Getty Images.  "A key
focus for us in the last several years has been to grow our
editorial imagery business, particularly in international
markets.  The proposed acquisition of WireImage will enable us
to develop new products and services, including podcasts,
editorial video, multimedia, mobile, consumer offerings and
exclusive imagery.  We are confident that the proposed
acquisition will help us expand our global entertainment and
celebrity imagery business, allowing us to satisfy growing
customer demand in the U.S. and abroad."

Under the agreement, WireImage's founding photographers and key
executives have signed long term agreements to remain with
WireImage and Getty Images following the acquisition.

The acquisition will bring together two leading innovators
within the entertainment imagery category.  Getty Images has
made entertainment and celebrity imagery accessible to a growing
global entertainment marketplace through its industry-leading
Web site, featuring search in local languages and purchase in
local currencies, and leads the industry in delivery speed,
service and international distribution.  WireImage has built a
reputation for depth and breadth of entertainment coverage and
has an innovative and customer-friendly Web site.

Several of the companies' product offerings complement each
other. For example, Getty Images' Exclusive by Getty Images
offering, launched in 2006, and MediaVast's Contour Photos will
combine to give customers unprecedented access to celebrity
portraiture and compelling editorial features.

The business of entertainment imagery has grown significantly in
recent years, and like the many other players in the space,
Getty Images has benefited.  The company has targeted this
category for continued growth, especially in non-English
speaking countries, and the acquisition of WireImage is expected
to help the company expand the entertainment and celebrity
imagery segment.

Getty Images plans to maintain MediaVast's three brands:
WireImage, FilmMagic, and Contour Photos, and its Web sites.  
WireImage's team and Getty Images will continue to generate new
imagery for their respective collections and make it available
for online distribution, both in the U.S. and globally.

"We are very excited to be joining Getty Images," said Jason
Nevader, co-founder and CEO of MediaVast.  "Under the Getty
Images umbrella our customers will be able to take advantage of
Getty Images' global, localized e-commerce platform.  Getty
Images' breadth of products and services, including their vast
archival collections, will give our customers more choice and
richer, more accessible content."

The company estimates, on a preliminary basis, that the
acquisition will be neutral to earnings per share, excluding
amortization, in 2007 and accretive to earnings per share on a
GAAP basis in 2008.  WireImage's portfolio includes an online
archive of over 8.5 million images.  The company has about 230
employees and offices in New York, Los Angeles, Miami, Atlanta,
Las Vegas, London, Hamburg, Tokyo, Shanghai, Sydney, Madrid, and
Amsterdam.

                     About Getty Images

Headquartered in Seattle, Washington, Getty Images, Inc. --
http://corporate.gettyimages.com/-- creates and distributes  
visual content.  The company has corporate offices in Australia,
the United Kingdom and Argentina.

                         *     *     *

In December 2006, Standard & Poor's Ratings Services lowered its
ratings on Seattle, Wash.-based visual imagery company Getty
Images Inc., including lowering the corporate credit rating to
'B+' from 'BB', and placed the ratings on CreditWatch with
developing implications.

Moody's Investors Service, in June 2006, upgraded the credit
ratings of Getty Images, Inc. and changed the ratings outlook to
stable from positive.  The upgrade in the corporate family
rating to Ba1 from Ba2 reflected Getty's leading market
position, improving credit metrics, impressive operating margins
and good secular growth trends in the stock imagery market.  
Moody's also upgraded its rating on the company's US$265 million
series B convertible subordinated notes due 2023, to Ba2 from
Ba3.


JAMERICH PTY: Appoints Robyn Beverley McKern as Liquidator
----------------------------------------------------------
On Feb. 12, 2007, the members of Jamerich Pty Ltd met at a
general meeting and resolved to voluntarily wind up the
company's operations.

In this regard, Robyn Beverley McKern was appointed as
liquidator.

The company's Liquidator can be reached at:

         Robyn Beverley McKern
         c/o McGrathNicol
         Level 8, IBM Centre
         60 City Road
         Southbank Victoria 3006
         Australia
         Telephone: 9038 3100
         Web site: http://www.mcgrathnicol.com


METAL STORM: Posts AU$8.7-Million for Year-Ended December 2006
--------------------------------------------------------------
Metal Storm Limited posted an AU$8.7 million loss for the 12
months ended Dec. 31, 2006, before finance costs and embedded
derivatives, compared to the AU$10.9 million loss in 2005.  On a
comparable basis, the result represents an improvement of AU$2.2
million on the 2005 year.

Finance costs and embedded derivative expenses relate to the
issue of convertible notes during the year and were not
applicable for the 2005 year.  These items were mostly non-cash:

   (a) Finance costs of AU$2.3 million which relate to:

       * Accretion of the convertible note liability -- AU$0.9
         million;

       * The expensing of options issued to Harmony Investment
         Fund Limited (Harmony) in accordance with the
         facilitation agreement dated July 20, 2006 -- AU$0.5
         million; and

       * The quarterly interest payable on the convertible notes
         -- AU$0.9 million;

   (b) Embedded derivative expense of AU$3.2 million which is
       the movement in the fair value of the conversion option
       embedded in the convertible notes issued during the year.

The loss after tax including these items is AU$14.2 million.

Average monthly "cash burn" from operating activities was
AU$663,000 compared to AU$937,000 for the 2005 financial year.

At the annual general meeting April 2006, the company indicated
that its clear focus would be to reduce net costs by 40% while
still achieving its objectives.  In an update, the board of
directors disclosed that the reduction of net costs now stands
at 29% for the full year at year-end.  The focus on cost savings
is continuing.

Newly appointed Chief Executive Officer, Dr. Lee Finniear
recounts that during the year, the company raised gross funds of
AU$30.5 million through:

   (a) a Share Purchase Plan which raised AU$3.0 million; and

   (b) a Renounceable Right Issues which raised AU$27.5 million.

Dr. Finniear said that the success of these fund raising
activities meant that the company could continue its engineering
work directed at several cycles of building and testing of
different configurations of prototype products.  He said that
this work is currently being carried out by the company's
Australian office at its new facility in Brisbane while the U.S.
office is continuing its focus on increasing contract revenues
while working on current contracts.

Dr. Finniear added that during and since the end of the year,
these developments occurred:

   * Conducted test firings of high explosive ammunition in the
     U.S. in conjunction with the U.S. Army's Armament Research
     Development and Engineering Centre;

   * Awarded a contract by U.S. company -- StarChase LLC --
     valued at US$1.2 million (approximately AU$1.56 million) to
     act as the lead systems integrator on the commercialization
     of the patented StarChase vehicle tagging technology;

   * Attended the 113th International Association of Chiefs of
     Police Law Enforcement and Technology Exposition held in
     Boston, Massachusetts to debut the StarChase Pursuit
     Management System prototypes;

   * Awarded a US$331,426 (approximately A$442,125) contract by
     the United States Marine Corps Warfighting Lab, Ground
     Combat Element Branch for the design, fabrication and
     testing of 18mm stacked round firing systems;

   * Conducted a live firing of the 40mm weapon system installed
     on a Dragonfly Pictures, Inc (DPI) DP-5X prototype Vertical
     Take Off and Landing (VTOL) Unmanned Aerial Vehicle (UAV)
     at a U.S. bombing range;

   * The US Space and Naval Warfare Systems Center has placed a
     notice on the U.S. Federal Business Opportunities Web site
     that it intends to award a Sole Source research and
     development contract to Metal Storm for the production of
     one 40mm anti-personnel unattended weapons pod; and

   * Appointment of a new Chief Executive Officer, with
     extensive experience taking developed concepts through to
     commercial products, orders, and sales.

Revenues were AU$2.4 million compared to AU$831,000 for 2005
reflecting higher contract revenue from the U.S. office (up
AU$1.3 million) and higher interest revenue (up AU$158,000) as a
result of increased cash holdings.  Expenses from continuing
operations (excluding foreign exchange differences, the movement
in the fair vale of embedded derivatives and finance costs) were
AU$11.0 million compared to AU$10.0 million for 2005, reflecting
additional costs relating to various items including contracts,
staff bonuses, capital raising efforts and the new engineering
facility in Brisbane.  Expenses also reflect the favorable
impact of cost savings initiatives undertaken during the year.

Metal Storm Limited -- http://www.metalstorm.com/-- is a multi-
national defense technology company engaged in the development
of electronically initiated ballistics systems using its unique
"stacked projectile" technology.  The company is headquartered
in Brisbane, Australia and incorporated in Australia, with an
office in Arlington, Virginia.

Ernst & Young LLP expressed substantial doubt about Metal
Storm's ability to continue as a going concern after auditing
the Company's financial statements for the year ended Dec. 31,
2005, and 2004.  The auditing firm pointed to the Company's
recurring operating losses and negative cash flows from
operating activities.


PEABODY ENERGY: George Schuller Named as VP in U.S. Operations
--------------------------------------------------------------
Peabody Energy Corp. has named George J. Schuller as Vice
President of Continuous Improvement, reporting to Senior Vice
President of Operations Improvement Walter J. Scheller.
Mr. Schuller will relocate from Peabody's Australia operations
to the St. Louis office.

Mr. Schuller's diverse operations experience and history with
Peabody subsidiaries will allow him to provide leadership and
advice in continuous improvement initiatives.  Mr. Schuller has
22 years of operations experience and joined a Peabody
subsidiary in 1986 as a mine engineer.  He has served in various
mine management positions at U.S. operations, and most recently
served as General Manager of Underground Operations and General
Manager of Mining Support for Peabody's Australian operations in
Queensland, Australia.

Peabody's continuous improvement initiatives are driven by the
company's Centers of Excellence, which use team-based approaches
to promote best practices for operations, engineering,
commercial and sourcing activities.  These initiatives are
leading to efficiencies, cost savings and capital spending
reductions.

Mr. Schuller holds a Master of Business Administration from the
University of Charleston in West Virginia and a Bachelor of
Science degree in Mining Engineering from West Virginia
University.

Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's   
largest private-sector coal company, with 2005 sales of 240
million tons of coal and U.S.US$4.6 billion in revenues.  Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity.  The company has coal operations in Australia.

                          *    *    *

On Dec. 14, 2006, Moody's Investors Service assigned Peabody
Energy Corporation's proposed US$500-million convertible junior
subordinated debentures a rating of Ba2.  At the same time,
Moody's affirmed Peabody's Ba1 corporate family rating and the
Ba1 senior unsecured rating on its existing revolver, term loan
and notes.  The ratings reflect the overall probability of
default of the company, to which Moody's affirms a PDR of Ba1.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 21, 2006, Standard & Poor's Ratings Services assigned its
'B' rating to the US$500-million convertible junior subordinated
debentures.

On Dec. 13, 2006, Fitch Ratings rated the US$500-million
debentures due 2066 at 'BB-'.


PETER WALKER: Undergoes Members' Voluntary Wind-Up
--------------------------------------------------
The members of Peter Walker Consultants Pty Ltd met on Feb. 14,
2007, and resolved to wind up the company's operations.

In this regard, Bruce Neil Mulvaney was appointed as liquidator.

The company's Liquidator can be reached at:

         Bruce Neil Mulvaney
         Bruce Mulvaney & Co
         Chartered Accountants
         1st Floor, 613 Canterbury Road
         Surrey Hills, Victoria
         Australia

                       About Peter Walker

Peter Walker Consultants Pty Ltd provides management-consulting
services.  The company is located in Victoria, Australia.


PSIVIDA LIMITED: Reports AU$100.7-Bln. Net Loss for HY Dec. 2006
----------------------------------------------------------------
At Dec. 31, 2006, pSivida Limited had current assets of
AU$7,805,000 and current liabilities of AU$30,247,000, resulting
in net current liabilities of AU$22,442,000.  Current assets
included AU$5,380,000 of cash and cash equivalents.

For the half-year ended Dec. 31, 2006, the company incurred
negative operating cash flow of AU$13,681,000 and a net loss of
AU$100,742,000.

Included in the net loss for the half-year period were:

   (a) intangible asset impairment write-downs of AU$83,352,000;

   (b) losses on extinguishment of debt of AU$16,028,000 related
       to modifications of an existing convertible loan
       agreement; and

   (c) AU$3,175,000 of penalties incurred in connection with
       delayed registration of their American Depositary Shares
       that have been issued, or are issuable, in connection
       with registration rights agreements.

These expenses were partially offset by a deferred tax benefit
of AU$26,400,000 primarily attributable to the asset impairment
write-downs.  This deferred tax benefit resulted from the
reversal of deferred tax liabilities related to intangible
assets that were recorded through purchase accounting.

The company notes that the half-year financial report has been
prepared on a going concern basis, which contemplates the
continuity of normal business activity, realization of assets
and settlement of liabilities in the normal course of business.

The Directors anticipate that the company will require
substantial additional cash resources not only to conduct its
operations and develop its products, but also to service its
existing borrowing arrangements (assuming that the existing
convertible note holders do not exercise their conversion
rights).

Having regard to these matters, the Directors are still of the
opinion that the going concern basis, upon which the company's
financial report is prepared, continues to be appropriate for
these reasons:

   (i) on Feb. 22, 2007, the consummation of a private placement
       sale of 50,044,132 fully paid ordinary shares to
       Australian, European, and U.S. investors at AU$0.23 per
       share to raise AU$11,510,000 (US$9,092,000) before costs.  
       As a result of this additional funding, the company
       believes that it has met the conditions for permanent
       release from the cash balance requirements associated
       with the company's initial convertible note, as amended.

  (ii) on Dec. 29, 2006, the company closed a further amendment
       of its initial convertible notes the terms of which
       included:

       * capitalization of interest due;

       * elimination of the minimum cash requirement debt
         covenant for a period of up to three months; and

       * deferral of a scheduled payment of US$800,000
         (AU$1,000,000) for a period of up to three months.
    
(iii) the Directors believe that the Company has the capacity
       to raise additional funding either through the issuance
       of additional equity or new debt securities to third
       parties, a combination of debt and equity or
       collaboration agreements with third parties who are
       evaluating our drug delivery technologies; and

  (iv) in the event of a future default under the terms of its
       initial convertible note, as amended, the Directors
       believe that the Company will be able to reach agreement
       on further revisions to the terms of the convertible note
       without the debt being called.

Notwithstanding the Directors' expectations, the company
believers there is material uncertainty that it will be able to
continue as a going concern.  Should the company not continue as
a going concern and pay its debts as and when they fall due, it
may be unable to realize its assets and discharge its
liabilities in the normal course of business and at the amounts
stated in its financial statements.

The financial statements, however, do not include any
adjustments relating to the recoverability and classification of
recorded asset amounts or the amounts and classification of
liabilities that may be necessary should the company be unable
to continue as a going concern.

                     About pSivida Limited

pSivida Limited -- http://www.psivida.com/-- is an Australian  
company existing pursuant to the Australian Corporations Act
2001 with shares listed on the Australian Securities Exchange,
the NASDAQ Global Market, the Frankfurt Stock Exchange, and
London's OFEX International Market Service.  The company is
committed to biomedical applications of nano-technology and has
as its core focus the development and commercialization of drug
delivery products in the healthcare sector, initially in
ophthalmology and oncology.

The company's corporate headquarter is located at:

         Level 12 BGC Centre
         28 The Esplanade
         Perth WA 6000, Australia
         Tel No. (+61 8) 9226 5099

The legal entity that became pSivida was incorporated as the
Sumich Group Ltd in April 1987.  The Sumich Group operated a
business that was placed into administration or receivership in
1998.  pSivida was subsequently formed on December 1, 2000, upon
entering into a court-approved arrangement with Sumich Group's
creditors which fully extinguished all prior liabilities as of
that time.  Subsequently, the company appointed new directors
and officers and re-listed on the Australian Securities Exchange
as pSivida.  The company was then recapitalized through a
placement to investors of 9.3 million ordinary shares at AU$0.30
per share, raising AU$2.79 million.

pSivida revealed that it has not made substantial divestitures
in the past three fiscal years through the present.

                      Going Concern Doubt

After auditing the company's consolidated balance sheet as of
June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered
Accountants, said that as of Oct. 31, 2006, pSivida has
determined there may be a risk of default associated with
maintaining the US$1.5 million minimum cash balance.  In the
event of a default, the noteholder is entitled to call the full
value of the liability.  This risk of default, together with the
company's recurring losses from operations and negative cash
flows from operations, raise substantial doubt about its ability
to continue as a going concern.

Deloitte notes that the financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.


R B ANDREWS: Members Opt to Close Business
------------------------------------------
The members of R B Andrews Pty Ltd -- formerly trading as
Anderly Aged Care -- met on Feb. 12, 2007, and resolved to
voluntarily wind up the company's operations.

Accordingly, Adrian Brown was appointed as liquidator.

The company's Liquidator can be reached at:

         Adrian Brown
         Ferrier Hodgson
         PO Box 290, Collins Street West
         Melbourne Victoria 8007
         Australia

                       About R B Andrews

Located in Victoria, Australia, R B Andrews Pty Ltd is an
investor relation company.


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

BENQ: Plans to Launch 65-Inch LCD TV in Second Half
---------------------------------------------------
BenQ Corp plans to market a 65-inch LCD TV in the second half of
this year as it moves to expand the size of its LCD TV products,
IDG News reports, citing Greg Lin, a manager in its digital
media group.

IDG adds that BenQ is also researching the possibility of using
LED --light emitting diode -- backlights in some desktop LCDs,
including 19-inch and 21-inch sizes.  

The company currently has no laptop PCs equipped with LED
backlights due to concerns that the displays are too easy to
break, Mr. Lin said.

Meanwhile, BenQ plans to offer a range of new LCD TV products
this year, including a new 37-inch model that supports full high
definition viewing, due out in April, and a 46-inch model to be
launched in July or August.

"Our focus is on the middle to high end LCD TV, and we want to
increase our offering of larger and larger sizes," Mr. Lin told
IDG News.

The new LCD TVs will be sold in Taiwan, China, and the Middle
East initially, and some will make it to Europe by the second
half of this year, Mr. Lin added.

                          *     *     *

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

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

BenQ Mobile has lost market share against giant competitors.

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

                        *     *     *

The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.

The outlook on the long-term rating is negative.  At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.

The ratings reflect BenQ's:

   * continuing operating losses from its handset operations;

   * high leverage; and

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


BOE TECHNOLOGY: To Invest CNY40 Million in Unit's Project
---------------------------------------------------------
BOE Technology Group Co. Ltd will invest CNY40 million in its
wholly owned subsidiary in Beijing, Reuters Key Development
reports.

According to Reuters, the investment will be used on the liquid
display project and the digital video project.

                          *    *    *

Based in Beijing, BOE Technology Group Co., Ltd. (BOE) is a
manufacturer of display devices and digital products. Based in
Beijing, the People's Republic of China, the Company operates
seven key divisions: Thin-Film Transistor-Liquid Crystal Display
(TFT-LCD); Monitor & Panel Television (TV), offering cathode ray
tube (CRT) monitors, TFT-LCD monitors, TFT-LCD TVs and plasma
display panel (PDP) TVs; Mobile Display System, providing super
twisted nematic-LCD (STN-LCD) and organic light-emitting display
(OLED); Special Application Display, supplying vacuum
fluorescent display (VFD) and light-emitting display (LED); CRT,
producing CRTs together with Toshiba and Panasonic; Precision
Electronic Component & Material, and Digital Display Product &
Display Application System.

Xinhua Far East China Ratings gave the company a CC issuer
credit rating on October 24, 2006.


CITIC BANK: BBVA Aims to Increase Shareholding Stake by 2008
------------------------------------------------------------
Banco Bilbao Vizcaya Argentaria SA aims to more than double its
stake in Hong Kong-listed Citic International Financial Holdings
Ltd to 35% by early 2008, Bloomberg reports.

BBVA chairman Francisco Gonzalez said in an interview with
Bloomberg in Beijing that the bank plans to spend EUR1 billion
to raise its holdings in Citic International and in closely held
China Citic Bank.

As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 27, 2006, Banco Bilbao bought a 5% stake in China CITIC
Bank for EUR501 million, and a 15% holding in CITIC
International Financial Holdings for EUR488 million.

Mr. Gonzales told Bloomberg that BBVA plans to set up joint
ventures with Citic in the areas of auto, trade and project
finance, as well as wealth management.  Banco Bilbao will focus
on retail banking in mainland China to draw on Citic Bank's
strengths in that area, he added.

Under an agreement closed by CITIC and BBVA in Beijing, the two
lenders will have 18 months to decide which joint ventures to
pursue, Mr. Gonzalez said.  The alliance may be dissolved if
certain targets aren't met by then and the agreement also bars
CITIC from linking up with other foreign banks during the
period, Bloomberg notes.

                          *     *     *

CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned
subsidiary of the state conglomerate Citic Group.  The Troubled
Company Reporter - Asia Pacific on Nov. 27, 2006, reported that
Banco Bilbao Vizcaya Argentaria entered into an agreement to buy
5% stake in CITIC Bank for EUR501 million.

On September 11, 2006, Fitch Ratings affirmed the Individual D/E
and Support 3 ratings of China CITIC Bank.  The ratings outlook
is stable.

China CITIC Bank's Individual rating reflects its strengthened
financial profile, bolstered by recent capital injections from
its parent, CITIC Group, and the introduction of much-improved
risk management systems.

With 416 branches, CITIC Bank had total assets of CNY689.5
billion at the end of September, 11.84 percent up on the end of
2005.

It raked in a pre-tax profit of CNY5.7 billion from January to
September last year, with its non-performing loan ratio down to
2.79% and a capital adequacy ratio of 9.18%.


FAIRFIELD DEVICES: Liquidator Quits Post
----------------------------------------
Lionel Mervyn Butcher resigned from his post as the liquidator
of Fairfield Devices Limited on Feb. 19, 2007.

Mr. Butcher presented his final accounts regarding the company's
wind-up proceedings on Nov. 6, 2006.

As reported by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on April 7, 2006.

The company's former liquidator can be reached at:

         Lionel Mervyn Butcher
         Apartment 17B
         Century Tower One
         1 Tregunter Path
         Hong Kong


HUA XIA: Teams with Deutsche Bank on Euro Remittance Service
------------------------------------------------------------
Hua Xia Bank, in partnership with Germany's Deutsche Bank,
launched a Euro real-time remittance service, amid projections
for extending reaches in the economies in Euro zone, China
Business Daily News reports.

According to the report, the joint venture was developed to
serve companies and individuals with business contacts within
the Euro zone.  The service covers 74 countries and territories
around the globe, the paper relates.

In addition, the two banks will also form a strategic
partnership in a number of areas like technical support, credit
card business and others, China Business says, citing sources
from Hua Xia Bank.

                          *     *     *

Headquartered in Beijing, Hua Xia Bank Co., Limited --
http://www.hxb.com.cn-- is a commercial bank that offers  
financial services to both corporate and individual clients.  At
the end of 2005, it has 27 branches and 257 offices nationwide.

On September 21, 2005, Deutsche Bank entered into a preliminary
agreement to purchase a holding of about 10 per cent in Huaxia
Bank, a medium-sized Beijing-based lender, for about US$200
million.  People close to the situation said Deutsche had teamed
up with another European financial institution to buy a total of
about 15 per cent in Shanghai-listed Huaxia for more than US$300
million - a slight premium to its market value.

Fitch Ratings affirmed on September 5, 2006, Hua Xia Bank's
Individual D/E and Support 4 ratings.

Hua Xia Bank's Individual D/E rating reflects its weak capital
position, inadequate profitability, and potential asset quality
risks stemming from very rapid loan growth.  Total loans
expanded 29% in 2005, the second fastest growth among local
peers.


KAYEAR INVESTMENT: Filing Proofs of Debt Due on April 4
-------------------------------------------------------
On Feb. 23, 2007, Lau Chung Sun was appointed as the liquidator
of Kayear Investment Limited.

In this regard, Mr. Lau requires its creditors to file their
proofs of debt by April 4, 2007, to be included in the company's
distribution of dividend.

The company's Liquidator can be reached at:

         Lau Chung Sun
         Unit 1003, 10th Floor
         The Kwangtung Provincial Bank Building
         587-589 Nathan Road, Kowloon
         Hong Kong


KIN SANG: Shareholders Resolve to Close Firm
--------------------------------------------
The shareholders of Kin Sang Investment Limited met on Feb. 22,
2007, and resolved to close the company's business.

Accordingly, Leung Mei Fan, the company's appointed liquidator,
requires its creditors to submit their proofs of debt by
April 2, 2007, to be included in the company's distribution of
dividend.

The company's Liquidator can be reached at:

         Leung Mei Fan
         Room 1005, Allied Kajima Building
         138 Gloucester Road, Wanchai
         Hong Kong


MEDISINO LIMITED: Members to Receive Wind-Up Report
---------------------------------------------------
The members of Medisino Limited will meet for their final
general meeting on April 10, 2007, at 9:00 a.m. at Flat G, 22/F,
Block 28, Grosvenor Court in The Oasis, South Horizons, Hong
Kong.

At the meeting, the members will receive the liquidator's report
regarding the company's wind-up proceedings and property
disposal.


MISSLER SOFTWARE: Members' Final Meeting Slated for April 3
-----------------------------------------------------------
The members of Missler Software China Limited will meet for
their final meeting on April 3, 2007, at 10:00 a.m.

At the meeting, the members will receive the liquidator's report
about the company's wind-up proceedings and property disposal.

The liquidator can be reached at:

         Chan Sek Kwan Rays
         Unit F, 12/F., Seabright Plaza
         9C23 Shell Street
         Hong Kong


PG TIME: Creditors' Proofs of Claim Due on April 3
--------------------------------------------------
PG Time Limited requires its creditors to file their proofs of
debt by April 3, 2007.

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

The company's liquidator can be reached at:

         Von Burg, George Josef
         House 4, Lot 1508, 10 Pik Sha Road
         The Riviera, Sai Kung
         Hong Kong


POWER SPEED: Names Fung Kit Yee as Liquidator
---------------------------------------------
On Feb. 26, 2007, the members of Power Speed Limited resolved to
liquidate the company's business.

Accordingly, Fung Kit Yee was appointed as liquidator.

The Liquidator can be reached at:

         Fung Kit Yee
         8/F., Kailey Tower
         16 Stanley Street, Central
         Hong Kong


SEGA.COM ASIA: Creditors Must Prove Debts by March 23
-----------------------------------------------------
Sega.Com Asia Networks Limited, which is in members' voluntary
liquidation, will be receiving proofs of debt from its creditors
until March 23, 2007.

Creditors who cannot prove their debts by March 23, 2007, will
be excluded in the company's distribution of dividend.

The company's liquidator can be reached at:

         John Kit Yuen Cheng
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


SUCCESS INFO: Loses Chinaunionpay Shares in Court Verdict
---------------------------------------------------------
The Intermediate People's Court of Ningbo has brought in a
verdict of the borrowing dispute lawsuit filed by Ningbo
Jiangdong Branch of China Merchants Bank against Success
Information Industry Group Co and its subsidiary, Ningbo Success
Investment Holding Ltd, Reuters reports.

According to the verdict, Success Information's 6,634,880
corporate shares in Chinaunionpay Co Ltd will be transferred to
a Shenzhen-based investment company.

Success Information Industry Group Co., Ltd. --
http://www.000517.com/-- is mainly engaged in the digital video  
broadcasting (DVB), wireless digital telecommunications and
utility metering industries.  

The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$18.67 million, on total assets of US$88.67 million.


SUNNY SPREAD: Appoints Chiu Ming Chung Joe as Liquidator
--------------------------------------------------------
At an extraordinary general meeting held on Feb. 23, 2007, the
members of Sunny Spread Development Limited resolved to wind up
the company's operations.

In this regard, Chiu Ming Chung Joe was appointed as liquidator.

The Liquidator can be reached at:

         Chiu Ming Chung Joe
         Room 1228, 12/F.,
         One Grand Tower, 639 Nathan Road
         Kowloon, Hong Kong


UDL HOLDINGS: Posts Net Profit of HK$29.72 Million for 2006
-----------------------------------------------------------
UDL Holdings Limited reported a net profit of HK$29.72 million
for the year ended July 31, 2006, a turn around from the HK27.75
million net loss it posted for the year ended July 2005.

According to the company's statement, the net profit is largely
due to the company's one of gain on disposal of subsidiary
amounting to HK$38.13 million, and a third lower finance costs
amounting to HK$2.58 million from HK$9.00 million a year before.

For the year in review, the company almost doubled its turnover
to HK$22.11 million but chalked up HK$13.55 million in marine
engineering and structural engineering costs and cost of vessels
-- HK$3.66 million a year before -- getting an operating loss of
HK$1.85 million.

                        Marine Engineering

Turnover of the marine engineering business increased to HK$8.9
million.  A significant portion was contributed by the new
income base from the yard holding company in Singapore.  Given
the booming market in offshore engineering and related
shipbuilding activities, together with the Singapore and China
building facilities that provide the Group a competitive edge,
continuous growth in this segment is foreseeable.

                   Structural Steel Engineering

The structural steel engineering division has experienced a
lower turnover of HK$3.6 million in 2006 (2005: HK$4.0 million)
as the new structural steel projects have yet to take place
after completion of a major project earlier this year.  After
completing the deck assembly work for the Shenzhen Western
Corridor, the Group concentrated on the deck assembly work for
the stonecutters bridge and has also participated in several
China highways related structural steel projects in Guangdong
through co-operation with active contractors in China.  The
Group is actively pursuing business for structural steel in the
region in collaboration with its business partners.

                          Vessel Sales

The regional market is in great demand of the type of vessels
the group has to offer.  The acquisition of the fleet of vessels
this year allows the group to meet such demand.  The Group has
reported a turnover of HK$9.6 million in 2006 in vessel sales.

The group is handling a considerable volume of enquiries and
potential orders for the supply of reconditioned engineering
vessels, which are expected to contribute positively to the
Group's revenue.

                          *     *     *

Hong Kong-based, UDL Holdings Limited is an investment holding
company.  The company's subsidiaries operate in the marine
engineering, structural steel engineering and general contract
work.

The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$9.31 million, on total assets of US$12.04 million.


VETERAN INVESTORS: Members and Creditors to Meet on April 13
------------------------------------------------------------
The members and creditors of Veteran Investors Management
Limited will hold their final meetings on April 13, 2007, at
11:00 a.m. and 11:15 a.m., respectively, at Rooms 502, 5/F., Sun
Hung Kai Centre, 30 Harbour Road in Wanchai, Hong Kong.

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


WINBASE INTERNATIONAL: Shareholders Agree to Liquidate Business
---------------------------------------------------------------
On Feb. 23, 2007, the shareholders of Winbase International
Investment Limited agreed to wind up the company's operations.

In this regard, the company requires its creditors to submit
their proofs of debt by April 2, 2007,to be included in the
company's distribution of dividend.

The company's liquidators can be reached at:

         Chan Cheuk Ying
         Lee Cho Yiu Julia
         Suite 1, 8th Floor, New Henry House
         10 Ice House Street, Central
         Hong Kong


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

PUNJAB NATIONAL BANK: Appoints L. M. Fonseca as New Director
------------------------------------------------------------
Punjab National Bank named L. M. Fonseca as new director on the
bank's board with effect from Feb. 27, 2007.

Mr. Fonseca will replace of Dr. K. V. Rajan, the Reserve Bank of
India's nominee director, under clause (c) of sub-section (3) of
Section 9 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970.

Headquartered in New Delhi, India, Punjab National Bank --
http://www.pnbindia.com/-- is a public-sector commercial bank    
in India, offering banking products and services to corporate
and commercial, retail and agricultural customers.  The bank has
expanded its operations to provide products and services to over
36 million customers across India through more than 4,510
branches.  Its banking operations for corporate and commercial
customers include a range of products and services for large-
corporate customers, as well as for small- and middle-market
businesses and government entities.  It also caters to the
financing needs of the agricultural sector and other priority
sectors, including small-scale industries.  Its retail credit
products include home loans, personal loans and automobile
loans.  Through its subsidiaries and joint ventures, the Bank
deals in Indian government securities and provides housing
finance and asset-management services.

Fitch Ratings gave Punjab National Bank a 'C/D' individual
rating.


RELIANCE INDUSTRIES: Unit to Foray into Stationery Business
-----------------------------------------------------------
Reliance Industries Ltd's retail unit, Reliance Retail Ltd,
plans to roll out stationery stores, Reuters reports citing the
Mint daily as source.  According to the Mint newspaper, the
subsidiary held talks with Office Depot, Inc., a global supplier
of office products and services, for a possible wholesale joint
venture.

The retail subsidiary reportedly aims to launch 250 standalone
stationery stores by 2010.

Reliance Retail is in talks "with several potential partners
across the world for various partnerships," the newspaper quoted
Bijou Kurien, chief executive for lifestyle, as saying.

Reliance Industries Ltd -- http://www.ril.com/-- is engaged   
in the exploration and production sector.  The company is
organized into three major business segments, which include
Exploration and Production of oil and gas; Refining and
Marketing of petroleum products, and Petrochemicals, including
the manufacturing and marketing of polymers, polyester,
polyester intermediates and chemicals.  RIL's operations capture
value addition at every stage, from the production of crude oil
and gas to polyester, polymer and chemical products, and finally
to the production of textiles.  RIL also has exploration and
production interests in India, Yemen and Oman.  The company
operates mainly in India but has business activities and
customers in more than 100 countries around the world.

Fitch Ratings gave Reliance Industries Ltd's foreign currency
long-term debt, long-term issuer default and local currency
long-term debt BB+ ratings effective on December 15, 2005.

Moody's Investors Service gave the company 'Ba2' long-term
corporate family, issuer, and senior unsecured debt ratings
effective March 17, 2005.


RELIANCE INDUSTRIES: To Consider Declaring Interim Dividend
-----------------------------------------------------------
Reliance Industries Ltd is planning to declare interim dividend
on its equity shares.  The company's board of directors will
hold a meeting on March 10, 2007, inter alia, to consider the
dividend payment.

In that regard, the company has set March 22, 2007, as the
Record Date for the dividend payment.

Reliance Industries Ltd -- http://www.ril.com/-- is engaged   
in the exploration and production sector.  The company is
organized into three major business segments, which include
Exploration and Production of oil and gas; Refining and
Marketing of petroleum products, and Petrochemicals, including
the manufacturing and marketing of polymers, polyester,
polyester intermediates and chemicals.  RIL's operations capture
value addition at every stage, from the production of crude oil
and gas to polyester, polymer and chemical products, and finally
to the production of textiles.  RIL also has exploration and
production interests in India, Yemen and Oman.  The company
operates mainly in India but has business activities and
customers in more than 100 countries around the world.

Fitch Ratings gave Reliance Industries Ltd's foreign currency
long-term debt, long-term issuer default and local currency
long-term debt BB+ ratings effective on December 15, 2005.

Moody's Investors Service gave the company 'Ba2' long-term
corporate family, issuer, and senior unsecured debt ratings
effective March 17, 2005.


STATE BANK OF INDIA: Hikes BPLR from 11.50% to 12.25%
-----------------------------------------------------
State Bank of India has decided to revise Benchmark Prime
Lending Rate and Interest rates on Super Saver Term Deposit
Scheme:

1. Revision in BPLR:

   a) BPLR is revised upwards by 75 basis points from 11.50 p.a.
      to 12.25% p.a. with effect from Feb. 20, 2007.

   b) Considering the importance of providing cost-effective
      credit to the important sectors of the economy, these
      sectors will be excluded from the impact of the BPLR hike
      by appropriate adjustment of spreads above/below BPLR
      where applicable:

      -- all existing housing loans under priority sector;
      -- all existing educational loans;
      -- all existing and future agricultural production;
      -- loans less than INR3 lakhs; and
      -- new educational loans up to INR4 lakhs.

2. Revision in Interest Rates on Super Saver Term Deposit
   Scheme:

   The Bank has also decided to improve the rates offered on the
   existing SSTD Scheme by modifying the terms:

                       Public     
                       Interest    Senior
   Tenor               Rate        Citizens    SBI Staff
   -----               -------     --------    ---------
   4 yrs and up         9.50%       9.75%        9.75%
   to less than
   5 years

   5 years and up
   to 10 years          8.25%        8.75%       9.00%

Headquartered in Mumbai, State Bank of India --
http://www.sbi.co.in-- is a financial services group operating  
primarily in the banking industry.  Its core operations include
Treasury Operations, Corporate Banking Group, National Banking
Group and International Banking Group.

                          *     *     *

Standard & Poor's Ratings Services on Feb. 8, 2007, assigned its
'BB' rating to the proposed Hybrid Tier I perpetual notes to be
issued by the State Bank of India.  S&P's Bank Fundamental
Strength Rating for SBI remains at 'C'.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual
rating.

Moody's Investors Service placed a Ba2/Not Prime rating on State
Bank of India's foreign currency bank deposits, a Ba2/Not Prime
rating on its domestic currency bank deposits, and a D Bank
Financial Strength Rating in June 2006.


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

ALCATEL-LUCENT: Gets US$110-Mil. Columbia Network Contract
----------------------------------------------------------
Alcatel-Lucent and LGS, Alcatel-Lucent's subsidiary, were
awarded the Regional Wireless Broadband Network equipment
contract by the District of Columbia as part of the National
Capital Region Interoperability Program.

The award is for a five-year Indefinite Delivery Indefinite
Quantity contract vehicle with a potential value of up to US$110
million.  Alcatel-Lucent and LGS were selected by a multi-
jurisdiction evaluation team to provide a turn-key solution to
deliver, install, configure and deploy a regional wireless
broadband network.  The first phase of the project will involve
the installation of a broadband network in multiple National
Capital Region jurisdictions.

This will be the nation's first interoperable, 700-MHz-based,
broadband network.  The network will provide mission critical
information to public safety professionals in the National
Capital Region's 19 municipal, district, state and federal
jurisdictions as they protect the lives and property of the more
than 4.2 million people living in the region.

NCRIP was created in 2005 to comprehensively solve public safety
data interoperability challenges.  This is a particular
challenge for the region because so many different government
entities, each with their own communications systems, are
located in a relatively small area.  In order to effectively
leverage the capabilities of each, particularly during a crisis,
they need to have communications systems that work together.

The program also includes linking regional municipal networks to
facilitate communications and a data exchange hub enabling the
National Capital Region to share critical data and information
during both emergencies and day-to-day operations.

"We are pleased to be a part of this effort to directly support
the people who serve their communities day in and day out and
are sometimes even called upon to put their lives on the line,"
said Ron Iverson, president, LGS.  "The vision and leadership of
the National Capital Region has enabled it to successfully
tackle one of the most complex and challenging environments for
interoperable communication in the United States."

LGS will work with its parent Alcatel-Lucent to deploy the
third-generation CDMA2000 1xEV-DO Revision A technology being
rolled-out nationally by commercial wireless carriers. EV-DO
Rev.  A enables users to receive data at speeds of up to 3.1
Megabits per second and send data at speeds of up to 1.8 Mbps.
These data speeds reduce data latency and enable real-time video
and other multimedia services.

"The use of high-volume, commercial broadband networking
technologies in the public safety 700 MHz band is the key to
providing affordable and interoperable public safety
communications solutions today with a clear road map for
advanced services in the future," said Andy Smith, Director of
Public Safety, LGS.  "We were able to leverage the combination
of Bell Labs innovation -- in enhancing commercial broadband
technologies to meet the special needs of first responders --
and our leadership, experience and success in the wireless arena
to deliver a groundbreaking solution that will help improve
communications among government entities, particularly during
times of crisis."

LGS teamed with AnyData a leading manufacturer of Code Division
Multiple Access modems, data modules and mobile devices to
provide laptop and handheld devices, and Qualcomm, a leading
developer and innovator of CDMA and other advanced wireless
technologies, who provided the reference design for 700 MHz
capable CDMA chip sets.

Alcatel-Lucent recently announced a complete suite of CDMA
products for the 700 MHz spectrum optimized for public safety
applications in a press release issued on February 27, 2007.

                            About LGS

LGS designs and delivers Transformed Communications and R&D-
based technology solutions to the U.S. government community.
Leveraging the world-class R&D of Bell Labs and innovation of
Alcatel-Lucent, with global reach and expertise, LGS challenges
itself to solve the unsolvable and deliver secure, reliable,
standards-based solutions to its customers.  LGS, headquartered
in Vienna, Va., and with offices in California, Colorado,
Maryland, New Jersey and North Carolina, was created by joining
the Lucent and Alcatel Government business units and Bell Labs
Government.  For more information about LGS visit
http://www.LGSinnovations.com.

                       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 of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating.  It's Short-Term Corporate Credit rating stands at B.

Moody's on the other hand put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating.  Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.

Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.


ALCATEL-LUCENT: Partners with GE Capital in U.K. and Ireland
------------------------------------------------------------
Alcatel-Lucent agreed with GE Capital Solutions in the U.K. to
provide finance solutions for U.K. and Irish enterprises.

GE's finance solutions enable U.K. and Irish businesses and
organizations to reap the benefits of Alcatel's hardware and
software communications products and services, without the
burden of significant upfront investment.

These financial solutions are also designed to help Alcatel-
Lucent's business partners increase sales, as well as build on
the profitability of each sale.  Furthermore, by encouraging
customer loyalty, these financial packages will help secure
future upgrades and new deployments.

This launch will entitle Alcatel-Lucent's premium and expert
partner customers to a special introductory promotion on the
purchase of its Alcatel-Lucent OmniPCX Office and Alcatel-Lucent
OmniPCX Enterprise communications platforms for small, medium
and large enterprises, as well as its conferencing and
collaboration tool, Alcatel-Lucent My Teamwork.

"GE is the ideal partner to work with for our finance offering,"
said Graeme Allan, for Alcatel-Lucent Enterprise activities in
U.K. and Ireland.  "Its finance consultants will support our
business partners throughout the sales process, while its
automated financing process, which will be available through our
partner site, will make smaller transactions quick and easy to
process."

"The launch of these finance solutions, working with Alcatel-
Lucent, will allow customers to improve their business processes
and productivity with Alcatel-Lucent's leading convergence
solutions, without impacting on their cash flow," Lynne Wood of
GE said.  "We've worked with Alcatel-Lucent to ensure that the
products we've designed are competitive and truly beneficial to
the business partners, by understanding and specifically meeting
the needs of its end-user customers."

                         About GE Capital

GE Capital Solutions -- http://gecapsol.com/-- offers financing  
services for commercial, industrial, construction and technology
equipment; corporate aircraft; trucks and trailers; franchise
facilities; transportation fleets; private label, wholesale; and
outsourced sales and inventory.  The company also offers tax-
exempt and non tax-exempt financing for federal, state and local
governments and non-profit organizations.

                        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 of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating.  It's Short-Term Corporate Credit rating stands at B.

Moody's on the other hand put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating.  Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.

Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.


ALCATEL-LUCENT: Expands SFERIA S.A.'s Fixed Wireless Network
------------------------------------------------------------
Alcatel-Lucent, within the framework of three frame agreements
with SFERIA S.A., has upgraded and expanded the SFERIA network
and is responsible for the maintenance of the operator's
telecommunication wireless network based on CDMA2000 technology
in the Warsaw calling area.

Under terms of the agreements, Alcatel-Lucent upgraded SFERIA's
existing base stations, with CDMA2000 1xEV-DO technology to
enable high-speed wireless broadband data services at speeds of
up to 2.4 Megabits per second.  Part of the project was the
implementation by Alcatel-Lucent of a more efficient transport
network to support increased traffic carried over SFERIA's
expanded CDMA2000 wireless broadband network.

Alcatel-Lucent implemented several new end-user applications and
new network management tools and was responsible for general
deployment and other services and will continue to maintain the
network.  

"SFERIA is taking a significant step to expand their network and
enhance the services they offer their customers, and we are
proud to be selected to help them with this important project,"
said Andrzej Dulka, Country Senior Officer, Alcatel-Lucent in
Poland.  "This achievement further confirms the role that our
CDMA2000 technology plays in providing customers a competitive
advantage in the market."

The new synchronous digital hierarchy (SDH) transport network is
based on Alcatel-Lucent's METROPOLIS(R) AMU and METROPOLIS(R)
ADM Universal products. New network management tools to run the
network include Alcatel-Lucent's NAVIS(TM) OMS (Optical
Management System) and NAVISAAA(TM) software, to manage and
protect SFERIA'snetwork against unauthorized access and provide
billing information for data services.

Alcatel-Lucent designed and deployed the new optical network,
managed the CDMA2000 1xEV-DO upgrade and provided network
integration for the new software platforms and applications.  In
addition, under an extension of an existing maintenance
agreement, Alcatel-Lucent services will provide spare parts
management, first-line maintenance and remote technical support
services.  SFERIA will continue its participation in Alcatel-
Lucent's Base Release Software program, which guarantees that it
receives major releases, point releases and software updates as
they become available for both its mobile switching centres and
base stations.  Alcatel-Lucent's relationship with SFERIA dates
back to the first half of 2003, when the companies signed a
contract to upgrade SFERIA's network to support CDMA2000 1X
technology.

                    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 of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating.  It's Short-Term Corporate Credit rating stands at B.

Moody's on the other hand put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating.  Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.

Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.


AVNET INC: Plans to Raise US$250 Mil. to Repay Revolving Credit
---------------------------------------------------------------
Avent Inc. plans to raise US$250 million through an offering of
senior notes due 2014.  Avnet intends to use the net proceeds to
repay amounts outstanding under its revolving credit facility
and/ or its accounts receivable securitization program.

The offering will be lead-managed by Banc of America Securities
LLC and Credit Suisse Securities LLC.

A prospectus relating to the offering may be obtained from Banc
of America Securities LLC by e-mail to
http://www.dg.prospectus_distribution@bofasecurities.comor by  
calling 1-800-294-1322, or from Credit Suisse Securities LLC,
Prospectus Delivery Department, 11 Madison Avenue, Floor 2B, New
York, NY 10010, 1-800-221-1037.

                         About Avnet Inc.

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

The Troubled Company Reporter - Asia Pacific reported on
Nov. 6, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. technology
semiconductor and distributor sector, the rating agency affirmed
its Ba1 corporate family rating on Avnet, Inc.

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

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

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

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

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

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

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


FREEPORT-MCMORAN: S&P Lifts Corporate Credit Rating to BB
---------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on New Orleans, Louisiana-based Freeport-McMoRan
Copper & Gold Inc. to 'BB' from 'BB-'.

Simultaneously, Standard & Poor's lowered its corporate credit
rating on Phelps Dodge Corp. to 'BB' from 'BBB'.  In addition,
all ratings were removed from CreditWatch where they were placed
on Nov. 20, 2006, following the disclosure that Freeport had
entered into an agreement agreed to acquire Phelps in a
transaction valued at US$26 billion.  The outlook is stable.

Under terms of the transaction, the acquisition will be funded
by US$18.5 billion in cash, of which US$16.0 billion is through
new debt offerings, with the remainder in common stock. Pro
forma for the transaction, total adjusted debt will approximate
US$18 billion.

In addition, Standard & Poor's Lowered its senior unsecured
rating to 'BB-' from 'BBB.' Phelps' existing senior unsecured
notes, which do not benefit from any subsidiary guarantee, will
receive a guarantee from the parent.; and We lowered our ratings
on Cyprus Amax Minerals Co.'s existing 7.375% senior notes,
which will become secured effective this transaction, due 2007
to 'BB+' from 'BBB'.

"The upgrade of Freeport's ratings reflects the marked
improvement of Freeport's business profile and position in the
mining industry," said Standard & Poor's credit analyst Thomas
Watters.

"The acquisition augments its reserves, production, and
geographic diversity, while somewhat mitigating Freeport's
exposure to the political and legal risks of operating in
Indonesia, which historically have been key risk factors in the
assessment of Freeport's corporate credit rating.  The downgrade
of Phelps' ratings reflects the material increase in debt for
the combined entity."

Pro forma for the acquisition, Freeport will be the world's
second-largest copper producer, with 3.6 billion pounds of
equity production in 2006.

"Incorporated in the stable outlook is our expectation
that through company initiatives to reduce debt and our belief
that commodity prices during the near term will remain at
relatively healthy levels, Freeport should make meaningful
progress in significantly reducing its aggressive debt
leverage," Mr. Watters added.

                     About Freeport-McMoRan

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.


FOSTER WHEELER: Unit Gets Full Release on Longview Power Project
---------------------------------------------------------------
Foster Wheeler Ltd. reveals that a subsidiary within its Global
Power Group has received a full release to proceed on its
contract from Longview Power, LLC for the design and supply of a
supercritical once-through pulverized-coal steam generator for
Longview's coal-fired generating facility located in Monongalia
County, West Virginia.  Longview is a 100 percent-owned
subsidiary of GenPower Holdings, L.P., which is jointly owned by
GenPower, LLC and First Reserve Corporation.  The Longview plant
will be one of the largest private investments in the history of
West Virginia.  Foster Wheeler announced the receipt of a
limited notice to proceed on January 30, 2007.

This full notice to proceed authorizes Foster Wheeler to execute
the entire scope of the project as defined by the contract.  The
total contract value of approximately US$200 million will be
included in Foster Wheeler's first-quarter 2007 bookings.

The contract calls for Foster Wheeler to provide Longview with a
695 megawatt electric state-of-the-art PC steam generator
utilizing Siemens advanced BENSON vertical tube supercritical
steam technology.

"We congratulate GenPower and First Reserve on reaching this
important milestone," said Gary Nedelka, chief executive officer
of Foster Wheeler North America Corp.  "We look forward to
delivering a successful project that meets the growing power
demands of the region in an environmentally responsible manner."

"We are very pleased that the project has achieved this
milestone and that we are finally able to release Foster
Wheeler's full execution team to support this very important
project in the state of West Virginia," said Bob Place, CEO of
GenPower Holdings.

                       About Foster Wheeler

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.


GOODYEAR TIRES: Revises U.S. Pension, Retiree Benefit Plan
----------------------------------------------------------
The Goodyear Tire & Rubber Company made a series of changes to
its U.S.-based retail and salaried employee pension and retiree
benefit plans aimed at increasing its global competitiveness
while significantly reducing its cost structure.

"These changes allow us to continue to provide the kind of
compensation packages that are competitive and will attract and
retain talented associates," said Kathleen T. Geier, senior vice
president of human resources. "They are also consistent with our
goal of reducing costs in excess of US$1 billion by the end of
2008."

The changes will be phased in over a two-year period, with most
benefit plan changes effective in 2008 and the most significant
pension plan changes in 2009.  As a result, Goodyear expects
after-tax savings of US$80 million to US$90 million in 2007,  
US$100 million to US$110 million in 2008, and US$80 million to  
US$90 million in 2009 and beyond.

The actions are expected to reduce the company's pension
obligation by approximately US$100 million and its obligation
for other post retirement benefits by about US$525 million
assuming interest rates used to value the obligations remain
similar to those used at Dec. 31, 2006.

Goodyear plans to record a one-time after-tax charge of
approximately US$65 million related to these actions in the
first quarter of 2007.

Benefit plan changes effective Jan. 1, 2008, include:

    * Increasing the amounts that current and future salaried  
      retirees contribute toward the cost of their medical  
      benefits;

    * Redesigning retiree medical benefit plans to minimize cost  
      impact on premiums;

    * Closing the company's Medicare supplement plan to new  
      entrants; and

    * Discontinuing company-paid life insurance for salaried  
      retirees.

The pension changes include:

    * Freezing the current salaried defined benefit pension
      plans as of Dec. 31, 2008;

    * Replacing the defined benefit pension plans with enhanced  
      401(k) savings accounts with varying levels of company  
      contributions for current associates beginning Jan. 1,
      2009; and

    * Introducing company-matching contributions for the
      salaried 401(k) savings plan at 50 percent of the first 4
      percent of annual pay beginning Jan. 1, 2009.

"The changes that we've made were only made after careful
consideration of alternatives, recognizing that there will be
varying levels of personal impact depending on the circumstances
of each associate and retiree," Geier said.

According to Geier, there is a strong movement on the part of
major corporations away from defined benefit pension plans and
toward defined contribution plans.  Additionally, the recently
enacted Pension Protection Act is expected to accelerate the
migration away from traditional defined benefit pensions.

Details of the plan changes will be directly communicated to the
affected salaried associates and retirees over the next several
weeks.  Moving forward, Goodyear associates will be able to
access online retirement modeling tools and investment education
sessions to assist with pension and benefit decisions, and to
plan for the impact of these changes.

                         About Goodyear

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service affirmed Goodyear
Tire & Rubber Company's Corporate Family Rating of B1.  Ratings
on Goodyear's existing secured and unsecured obligations were
also affirmed as was the company's Speculative Grade Liquidity
rating of SGL-2.  The outlook has reverted to stable from
negative.

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

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

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

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

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

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

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

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


HILTON HOTELS: To Sell Scandic Hotel Chain for EUR833 Million
-------------------------------------------------------------
Hilton Hotels revealed the exchange of contracts to sell its
Scandic Hotel chain to EQT for approximately EUR833 million. Net
proceeds after transaction costs and taxes are expected to be
approximately US$1.04 billion.

Based on trailing 12-month recurring earnings from Scandic
before interest, taxes, depreciation and amortization, the sale
price represents an EBITDA multiple of approximately 10 times.
After adjusting for normal replacement for furniture, fixtures
and equipment, the implied capitalization rate on the sale is
expected to be approximately 6.5%.  The transaction is subject
to a number of conditions, but is expected to be completed in
April 2007, subject to clearance from the European Union
regulators.  Hilton intends to use the proceeds of the sale to
pay down debt.

The proposed sale follows the announcement by Hilton in August
2006 that the company would explore strategic alternatives for
the Scandic Hotel chain, with a view to selling all or part of
the business.

Scandic is the largest hotel operator in the Nordic region,
operating full service hotels in the mid-market segment.  The
transaction involves the sale of 132 hotels, of which 128 are
Scandic hotels and 3 are Hilton hotels plus one other hotel.  Of
the 132 hotels, 3 are owned, 121 are leased, 5 are managed, and
3 are franchised.

Upon completion of the transaction, Hilton will continue to have
a presence in Nordic with six Hilton hotels - three in Finland,
two in Sweden and one in Denmark at Copenhagen airport.

Robert M. La Forgia, executive vice president and chief
financial officer of Hilton Hotels Corporation, commented on the
sale:

"This proposed sale represents the latest execution of our
strategy to generate a higher proportion of income from
management and franchise fees, while also reducing debt.  This
particular transaction will also enable us to reduce our income
from leased hotels which, combined with a stronger balance
sheet, would significantly strengthen our credit profile."

Ian Carter, executive vice president and chief executive of
Hilton's International Operations, added:

"Scandic is a prominent and respected brand with an exceptional
market position in the Nordic countries.  The business has
performed very strongly over the last year, which is testimony
to the commitment and efforts of the management and employees
during the sale process.

Following the re-unification of the Hilton business earlier last
year, a key focus of our strategy is international development.
This is underpinned by an excellent portfolio of existing
brands, including a number of strong mid-market brands with
significant international appeal and potential for growth."

Hilton will enter into a short-term 'Transitional Services
Agreement' with EQT to include key service and operational
areas, including the Hilton Reservations and Customer Care,
HHonors guest loyalty program and IT system and support.

Hilton was advised by Citigroup Global Markets Limited and
Mannheimer Swartling.

Expected impact of the Scandic sale on 2007 Results

Assuming the sale of Scandic closes in April 2007 and net
proceeds are used to pay down debt, this transaction is expected
to reduce the company's 2007 recurring EPS by US$.10 per share.

Approximately US$.07 per share of this expected reduction
results directly from the sale of Scandic, while approximately
US$.03 per share is due to an increase in the company's overall
effective tax rate as a result of selling assets outside the
U.S.  The company's full year 2007 effective tax rate is now
expected to be approximately 35%.

                       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 hotel
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 - Asia Pacific reported on Feb.
28, 2007, thatMoody's Investors Service upgraded Hilton Hotels
Corporation's corporate family rating to Ba1 from Ba2 reflecting
a reduction in leverage from a faster than expected pace of
asset sales and strong earnings during 2006.  Adjusted debt to
EBITDAR has improved to around 5.0x from 6.0x in January 2006.  
Moody's capitalizes total rent at 8x and adds a debt equivalent
of approximately 20% of Hilton's guaranty exposure to debt.

The rating outlook is stable

Standard & Poor's Ratings Services placed its ratings on Hilton
Hotels Corp., including the 'BB' corporate credit rating, on
CreditWatch with positive implications.

As reported in the Troubled Company Reporter - Asia Pacific
reported on Feb. 2, 2007, that Fitch Ratings has upgrade the
debt ratings for Hilton Hotels 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.


PERTAMINA: Gov't. Prepares to Launch IPO of Subsidiaries
--------------------------------------------------------
Indonesia is preparing to launch initial public offerings on
subsidiaries of state oil firm PT Pertamina (Persero), with PT
Elnusa likely to be first in line, Reuters News reports, citing
Energy Minister Purnomo Yusgiantoro.

According to the report, Mr. Yusgiantoro, when asked about plans
for an IPO for Pertamina, clarified that only the company's
subsidiaries are in included in the offering.

Pertamina's subsidiary Elnusa last year signed a provisional
agreement with the National Iranian Oil Refining and
Distribution Company to build a 300,000 barrels-per-day refinery
in Indonesia, the report recounts.

The report points out that Mr. Yusgiantoro ruled out any IPO for
the holding firm of Pertamina given its public service
obligations.

                        About Pertamina

PT Pertamina (Persero) -- http://www.pertamina.com/-- is a  
wholly state-owned enterprise.  The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company.  In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream.  Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day.  However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.

In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market.  Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.

Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.

In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java.  Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.


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

SAPPORO HOLDINGS: Seeks More Information on Steel Partners' Bid
---------------------------------------------------------------
Sapporo Holdings Ltd. asked Steel Partners Japan Strategic Fund
(Offshore) LP to provide more information on its buyout offer,
The Japan Times reports.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 19, 2007, Steel Partners, currently owning 17.52% of
Sapporo's shares, submitted a proposal to the company's
management requesting discussions aimed at securing their
recommendation for a negotiated transaction to acquire,
including the U.S.-based hedge fund's current holding, shares
representing 66.6% of the voting rights in the company.

The Times relates that Sapporo's information request is made up
of more than 30 questions, including queries on Steel Partner's
past investment record, the conditions for the planned
acquisition, and the post-acquisition business plan.

However, the report notes, the company did not set any deadline
for Steel Partners to give its reply.

"We are asking for the necessary information to consider the
buyout proposal with the sincere intention of determining
whether the offer will contribute to improving our value," The
Times quotes Sapporo President Takao Murakami.

According to the report, Mr. Murakami explained that even if
Steel Partners raises its stake, shareholders would still own
the remaining 33.4% that is why Steel Partners should clarify
its policy on how it will boost Sapporo's corporate value.

Sapporo made the request based on defense measures it had
established in February 2006, The Times adds.  These defense
measures stipulate that the brewer will seek information from a
bidder by issuing a list of questions within 10 working days
after a bid is made so a fair judgment can be reached.

According to The Times, Sapporo Holding's board of directors
will evaluate the information it will get from Steel Partners
for 60 to 90 days before deciding on whether to accept the
offer.

The Times says that Steel Partners will launch a public tender
offer if it gains the approval of Sapporo's board, but if
rejected, the investment fund is expected to launch a hostile
takeover bid.

The report states that there are speculations that Sapporo
Holdings may exercise anti-takeover measures against Steel
Partners by issuing new stock to existing friendly shareholders
in order to dilute the bidder's stake and to make the planned
acquisition more difficult.

                   About Steel Partners Japan

Steel Partners Japan Strategic Fund(Offshore), L.P. is a limited
partnership type investment fund domiciled in the Cayman Islands
with SPJS Holdings LLC as its General Partner.  The principal
business of the Fund is to invest in companies in Japan.

                     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.


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

LG TELECOM: Accuses SK & KTF of Preventing Customers to Transfer
----------------------------------------------------------------
LG Telecom is alleging that SK Telecom and KTF have prevented
their users from moving to LG Telecom via the number portability
system, The Korea Times reports.

According to LG Telecom spokesman Lee Jung-hwan, SK Telecom and
KTF had partially disenabled computer networks to bar their
users from defecting to us, the report relates.

"Plus, they conspired to lure our users to them by offering very
heavy subsidies.  They seemingly joined forces to check our
success based on the number portability system," the spokesman
added.

The number portability system enables mobile customers to shift
wireless operators without changing their numbers, The Korea
Times explains.

According to the paper, SK Telecom and KTF admitted the
wrongdoings to some extent.  However, the firms asserted the
company head offices did not have knowledge of the practice
taken by sales outlets.

But the LG Telecom spokesman contended "if sales outlets carried
out such steps on their own, how could all the outlets do so
almost at the same time across the country?  We think there were
instructions from the headquarters."

Thus, the Korea Communications Commission, which is in charge of
overseeing the domestic telecom markets, will start an
investigation, the paper says.

Punitive measures will be established at a general meeting, the
report notes.

Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd.
-- http://www.lgtelecom.com/-- is a telecommunications and  
mobile phone operator controlled by the LG Group, one of the
country's largest chaebol.  It is Korea's smallest wireless
operator. LG Telecom became one of the first companies to launch
a commercial 3G service using PCS technology.  In 1997, this was
followed up by launching the second PCS network, offering
greatly increased data transmission speeds.  LG Telecom also
offers a variety of internet services. BankOn is one of the most
popular mobile banking services in South Korea and Musicon is a
popular instant messenger.

Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating,
a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior
Unsecured Rating.

Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long-
Term Foreign Issuer Credit and Long-Term Local Issuer Credit
Ratings.

As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 14, 2006, Fitch Ratings upgraded LG Telecom Ltd's foreign
currency Issuer Default rating to 'BB+' from 'BB.'


NOVELIS INC: To Create Environmental Preservation Area
------------------------------------------------------
The Minas Gerais state government has allowed Novelis Inc. to
create an environmental preservation area, news daily O Estado
de S Paulo reports.

According to Estado de S, the 190-hectare area owned by Novelis
is near two state preservation units.

Business News Americas relates that Novelis is considering
whether to turn the area over to scientific research.

Novelis government relations manager Mauricio Martins told
BNamericas, "Another alternative would be to set up a structured
environmental education program."

Novelis has bauxite, primary aluminum and rolled products
complexes in Brazil.  However, these complexes will be acquired
by Hindalco Industries for US$6 billion, including a US$2.4-
billion debt, BNamericas states.

Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional  
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.  In Asia, the company has
operations in Malaysia and Korea.

                        *    *    *

The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services it affirmed all of its
ratings on Novelis Inc., including the 'BB-' long-term corporate
credit rating, and removed the ratings from CreditWatch with
negative implications, where they were placed April 7, 2006.  
The outlook is negative.

The Troubled Company Reporter - Asia Pacific reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Novelis Inc.

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

Issuer: Novelis Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$500 Million
   Guaranteed
   Senior Secured
   Revolving Credit
   Facility               Ba3      Ba2     LGD2       24%

   US$312 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%

   US$1.4 Billion
   7.25% Guaranteed
   Senior Unsecured
   Notes                  B2       B3      LGD5       76%

Issuer: Novelis Corporation

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$543 Million
   Guaranteed
   Senior Secured
   Term Loan B            Ba3      Ba2     LGD2       24%


SANDISK CORP: Cost Cutting Plan to Reduce Workforce by 10%
----------------------------------------------------------
SanDisk Corporation's Board of Directors approved a plan to
reduce operating costs, which includes a worldwide reduction in
force of up to 10% of the company's headcount, or approximately
250 employees.

The company expects to incur a restructuring charge in
connection with the Plan in the range of US$15 million to US$20
million, with the majority of the expense occurring in the first
quarter of 2007.

The Board said that cash payments associated with the Plan will
be approximately half of the total restructuring charge, with
the remainder comprised of share-based compensation charges
resulting primarily from acceleration of certain equity awards
as per terms of the msystems acquisition.

The workforce reduction will impact functions related to
operations, engineering, sales and marketing and administration
within the company, and will primarily be based in the United
States and Israel, and to a lesser degree, other international
locations.

The Board further said that the Plan is expected to be completed
by the third quarter of fiscal 2007.  Total annualized operating
cash cost savings related to the reduction-in-force and other
cost saving measures, excluding severance costs, are expected to
be approximately US$30 million to US$35 million, including cash
savings from the reduction-in-force of approximately US$20
million to US$25 million.

In addition, the reduction-in-force is expected to result in a
decrease in share-based compensation expense of approximately
US$10 million on an annualized basis.

Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -
- http://www.sandisk.com/-- manufactures various formats of  
flash memory cards for use in consumer electronics products,
including digital cameras, mobile phones, and game systems.  In
addition, the company produces devices such as USB drives and
MP3 music players.  SanDisk has worldwide locations in China,
Ireland, India, Israel, Japan, Taiwan and Korea.

                          *     *     *

Standard & Poor's Ratings Services assigned its 'BB-' rating to
Sunnyvale, California-based SanDisk Corp.'s proposed issue of
US$1 billion of senior unsecured convertible notes due 2013. The
'BB-' corporate credit rating on SanDisk was affirmed.  The
rating outlook is stable.


TOWER AUTOMOTIVE: Has Filed Preference and Avoidance Actions
------------------------------------------------------------
Tower Automotive Inc. and its debtor-affiliates delivered
hundreds of complaints to the U.S. Bankruptcy Court for the
Southern District of New York seeking avoidance of certain
transfers made to various suppliers, service providers and other
creditors during the applicable look-back periods before the
Debtors' bankruptcy filing.

Approximately 330 Avoidance Actions were filed from January 30
to Feb. 1, 2007.  Frank Oswald, Esq., at Togut, Segal & Segal
LLP, representing Tower, told Christopher Scinta at Bloomberg
News that his firm filed 417 lawsuits seeking recovery of about
US$275 million from companies that did business with Tower prior
to the chapter 11 filing.  

With respect to some Defendants, the Debtors allege that they
transferred property of the estate within the 90-day period
before their bankruptcy filing.  The Debtors relate that they
were insolvent at the time that the Transfers were made.  The
Transfers enabled the Defendants to receive more than they would
have received if:

   (i) the Debtors' cases were administered under chapter 7 of
       the Bankruptcy Code;

  (ii) the Transfers had not been made; and

(iii) the Defendants had received payment of the debt to the
       extent provided by the Bankruptcy Code.

In some instances, the Debtors assert, the Transfers were made
within one year prior to their bankruptcy filing, and that they
received less than reasonably equivalent value in exchange for
some or all of the Transfers.  The Debtors note that they:

   (i) were insolvent on the date of the Transfers, or became
       insolvent as a result of the Transfers; or

  (ii) were engaged in business or a transaction for which any
       property remaining with the Debtors was an unreasonably
       small capital at the time of, or as a result of the
       Transfers.

Certain of the defendants hold trade claims against the Debtors.  
Seven of the defendants were listed among the Debtors' 30
largest unsecured creditors as of the Petition Date:

                                               Amount for which
                               Listed Claim        Debtors have
    Defendant              As of Petition Date  Sued to Recover
    ---------              -------------------  ---------------
    Denso                      US$5,906,053       US$10,160,262
    MST Steel Corporation      US$5,399,459       US$15,922,915
    Weldmation, Inc.           US$5,215,287       US$11,308,731
    TRW Automotive             US$4,796,661           US$28,996
    Visteon                    US$4,449,674        US$7,817,879
    Lemforder Corporation      US$3,793,370        US$1,097,788
    Vuteq Engineering Corp.    US$2,534,605        US$3,755,147

The Debtors disclose that the Official Committee of Unsecured
Creditors have asked them to pursue additional avoidance claims
against several other parties with whom they conducted business
during the applicable prepetition look-back periods.  The
Debtors may pursue additional actions against two defendants.

Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and    
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo.  Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components.  The company has operations in Korea, Spain and
Brazil.

The Company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601).  James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts.  Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.


TOWER AUTOMOTIVE: Wants to File Preference Actions Under Seal
-------------------------------------------------------------
Tower Automotive Inc. and its debtor-affiliates ask the
Honorable Allen L. Gropper of the U.S. Bankruptcy Court for the
Southern District of New York to allow them to file complaints
against potential preference action defendants under seal to
preserve those potential causes of action, to allow the Debtors
additional time to negotiate with the Potential Defendants, and
to conduct further analysis whether or not to pursue or settle
any actions

The Debtors also ask the Court to implement an immediate
standstill on the adversary proceedings initiated by the
Confidential Complaints pending further Court ruling.

The Debtors further want the case docket for any adversary
proceedings initiated by the Confidential Complaints sealed and
not made available for public access because the identities of
the Potential Defendants themselves are highly sensitive to the
Debtors' interests.

At the Court's request, the Debtors will provide the Court with
the identities of the Potential Defendants in camera.

For the past six months, the Debtors, the Official Committee of
Unsecured Creditors have been working together in a concerted
effort to determine whether, and to what extent, transfers made
by the Debtors during the applicable prepetition look-back
periods are subject to avoidance under the applicable provisions
of the Bankruptcy Code.

As a result of these efforts, the Debtors have filed
approximately 330 complaints seeking to recover the avoidable
transfers, Frank A. Oswald, Esq., at Togut, Segal & Segal, LLP,
in New York, relates.  The Creditors Committee has been actively
involved throughout the process.

Mr. Oswald notes that the Debtors' statutory deadline for filing
any additional actions based on Sections 544, 545, 547, 548, or
553 of the Bankruptcy Code was Feb. 2, 2007.

In addition to conducting the analysis and filing the
complaints, the Debtors have also obtained, and continue to
negotiate, stipulations with a number of potential defendants to
toll the Statutory Deadline to allow the Debtors to continue to
analyze whether to pursue or settle any actions against the
potential defendants, without running afoul of the Statutory
Deadline, Mr. Oswald says.

According to Mr. Oswald, the Creditors Committee also recently
requested that the Debtors pursue additional avoidance claims
against several additional defendants with whom the Debtors
conducted business during the applicable prepetition look-back
periods.  Mr. Oswald says the Debtors may seek to pursue
additional actions against two potential defendants.  The
identities of the Potential Defendants and the nature and
circumstances surrounding the prepetition transfers implicate
highly sensitive and competitive interests of the Debtors'
estates.

Mr. Oswald asserts that if the information were to become
publicly known, the Debtors' estates and ultimate prospects for
reorganization could suffer greatly.  Although the Debtors are
currently engaged in negotiations with each of the Potential
Defendants, both with respect to global commercial settlements
and with respect to Tolling Agreements, the Debtors may not have
concluded the negotiations by the Statutory Deadline.

Section 107 of the Bankruptcy Code provides bankruptcy courts
with the power to issue orders that will protect entities from
potential harm that may result from the disclosure of certain
confidential information.  By implementing the standstill on the
adversary proceedings arising from the Confidential Complaints,
the Court will preserve the status quo, hence, enabling the
Debtors to continue their commercial negotiations with the
Potential Defendants without the disruption caused by the
litigation.

The request is the least intrusive means of achieving the goal
of preserving the estates' causes of action, protecting the
Confidential Information, and fostering the creation of a full
and fair record for the Court's adjudication of disputes, Mr.
Oswald tells Judge Gropper.

Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and    
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo.  Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components.  The company has operations in Korea, Spain and
Brazil.

The Company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601).  James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts.  Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.


* South Korea's Corporate Restructurings Nearly 66% Complete
------------------------------------------------------------
Nearly 66% of South Korea's financially troubled large
corporations have successfully completed creditor-led
restructuring since late 2001, Yonhap News cites Financial
Supervisory Service, as saying.

The report reveals that 47 out of 71 companies were either sold
to third parties or normalized business operations.

Hynix Semiconductor Inc., and Daewoo Engineering & Construction
Co., were two of the 18 companies that normalized business,
while creditors finished the sale of the remainder, Yonhap says.

The paper relates that 13 companies, including Pantech Co. and
general trading company SK Networks Co., are currently going
through debt workout programs led by their respective creditors,
while creditors of 11 other companies suspended restructuring
efforts.

Yonhap relates that creditor financial institutions supplied
KRW37.6 trillion (US$40.1 billion) to 31 corporations since
2001.  They expect to recoup about KRW44.4 trillion, an amount
that surpasses their initial bailout funds, the Financial
Supervisory Service added.


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

SUREMAX GROUP: Receives Summon and Statement of Claims from MBB
---------------------------------------------------------------
Suremax Group Bhd and its subsidiary Suremax Builders Sdn Bhd
disclosed in a filing with the Bursa Malaysia Securities Bhd
that they received a writ of summon and statement of claim from
the Malayan Banking Bhd.

According to the Suremax, Malayan Banking claims:

    a. A sum of MYR1,707,355.26;

    b. Interest on the sum of MYR1,707,355.26 at the rate of
       1.75% per annum over the plaintiff's base lending rate
       (MBB's BLR as at Dec. 31, 2006 is 6.75% per annum)
       calculated on a daily basis together with monthly rest
       from Jan. 1, 2007 until the date of full settlement;

    c. Additional interest on the sum of MYR1,707,355.26 at the
       rate of 1% per annum calculated on a daily basis together
       with monthly interest from Jan. 1, 2007, until the date
       of full settlement;

    d. Cost;

    e. Cost on the Plaintiff's legal action; and

    f. Such other relief as the Honorable Court deems reasonable
       and just.

Suremax maintains that there is no material financial impact on
the Group arising from the Summons.  In addition, the company
will seek legal advice from its Solicitors on the next course of
action, Suremax told the bourse.

                          *    *    *

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's
ability to continue as a going concern.  Furthermore, based on
the company's six-month period 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,
and is therefore required to implement a plan to regularize its
financial condition.


TALAM CORP: Provides Updates on Default Status
----------------------------------------------
Talam Corporation Berhad disclosed with the Bursa Malaysia
Securities Bhd its default status to various credit facilities
as of Feb. 28, 2007.

According to the disclosure, Talam and its subsidiary companies
are still finalizing with all the lending banks on a
restructuring scheme in order to regularize their financial
position.  

To date, majority of the company's creditors has approved the
scheme save for two banks, which is still pending their
Committee Board Meeting, Talam told the bourse.

                       Default Status

A. Talam's loan with Hong Leong Bank Berhad will be settled from
   the balance of the sale proceeds from the disposal of Talam's
   land to Banting Resources Sdn Bhd.

                                               Amt. Outstanding   
   Subsidiary            Lender                  of Feb/28/2007
   ----------            ------                ----------------
   Zillion Development   Hong Leong Bank Bhd    MYR1,695,671.23
   Sdn Bhd

B. Europlus Corporation Sdn Bhd has been notified that the
   Noteholders have approved and passed the resolution in
   writing on the proposed restructuring scheme on September 25,
   2006:

                                               Amt. Outstanding
   Subsidiary            Lender                  of 02/28/2007
   ----------            ------                ----------------
   Europlus Corp         Abrar Discounts Bhd     MYR196,000,000
   Sdn Bhd

C. These loans with the companies are part of the overall
   Financial Restructuring scheme submitted to the respective
   financial institutions and are waiting for their approval:

                                               Amt. Outstanding
   Subsidiary            Lender                  of 02/28/2007
   ----------            ------                ----------------
   Abra Development      EON Bank Bhd             MYR13,404,004
   Sdn Bhd

   Europlus Bhd          RHB Sakura Merchant       MYR3,019,043
                         Bankers Bhd

   Europlus Bhd          AmMerchant Bank           MYR5,779,539
                         Bank Bhd

   Maxisegar Realty      TA First Credit          MYR20,794,938
   Sdn Bhd               Sdn Bhd                  MYR40,306,603
                                                  MYR40,400,000

   Talam Corp Bhd        Pengurusan Danaharta      MYR2,166,767
                         Danaharta Nasional     


   Talam Corp Bhd        RHB Sakura Merchant      MYR10,068,369
                         Bankers Bhd              MYR15,102,554
                                                   MYR6,443,756
                                                   MYR5,034,184

   Talam Corp Bhd        EON Bank Berhad           MYR3,109,150
                                                   MYR3,021,000

   Talam Industries Bhd  RHB Sakura Merchants     MYR11,134,000
                         Bankers Bhd


D. These companies are in the midst of finalizing the sales and
   Purchase agreement for the disposal of the asset to repay the
   banking facilities:

                                               Amt. Outstanding
   Subsidiary            Lender                  of 02/28/2007
   ----------            ------                ----------------
   Europlus Bhd          Affin Bank Bhd            MYR8,850,000
                                                   MYR1,900,000

   Juara Tiasa           Affin-ACF Finance Bhd     MYR3,030,137
   Sdn Bhd

   Talam Corp Bhd        Affin Bank Bhd            MYR3,000,000
                                                   MYR5,000,000

E. These companies are finalizing the joint venture agreement
    with the reputable developers where the joint venture
    company will repay the loan:

                                               Amt. Outstanding
   Subsidiary            Lender                  of 02/28/2007
   ----------            ------                ----------------
   Untung Utama          Insas Credit &            MYR5,048,835
   Sdn Bhd               Leasing Sdn Bhd          MYR13,035,917

   Ukay Land Bhd         Insas Credit &           MYR10,101,917
                         Leasing Sdn Bhd          

   Zhinmun Sdn Bhd       Insas Credit &            MYR5,028,875
                         Leasing Sdn Bhd          MYR19,573,534

F. This company is currently under Section 176 of the Companies
   Act, 1965:

                                               Amt. Outstanding
   Subsidiary            Lender                  of 02/28/2007
   ----------            ------                ----------------
   Maxisegar Sdn Bhd     Abrar Discounts Bhd     MYR130,000,000

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad is principally engaged in property development.  Its
other activities include trading building materials,
manufacturing of ready mixed concrete, provision for higher
educational programs, development and management of hotel, golf
and country club horticulturists, agriculturists and landscaping
designers and contractors and investment holding.  Operations of
the group are carried out in Malaysia and China.

The Troubled Company Reporter - Asia Pacific reported on Sept.
11, 2006, that based on the Audited Financial Statements of
Talam Corporation for the financial year ended January 31, 2006,
the Auditors Ernst & Young were unable to express their opinion
on the Company's Audited Accounts.  As such, the Company is an
affected listed issuer of the Amended Practice Note 17 category.  

In accordance with PN 17, the company is required to submit and
implement a plan to regularize its financial condition within
eight months from Sept. 1, 2006.


TALAM CORP: Wind-Up Petition Against Unit Heard on Feb. 27
----------------------------------------------------------
The wind-up petition filed against Noble Right Sendirian Bhd, a
wholly owned subsidiary of Talam Corp Bhd, was heard on Feb. 27,
2006.

According to Talam, the Petitioner Tan Hooi Leong, alleged that
Noble Right is indebted in the sum of MYR233,589.18 together
with interest of 8% per annum pursuant to a Kuala Lumpur high
Court's judgment on March, 28, 2006.

In addition, Talam Corp disclosed these information as required
by Bursa Malaysia Securities Bhd for public release:

    -- the wind-up petition was filed with Kuala Lumpur High
       Court Companies Winding Up Petition No. D6-28-791-2006
       November 7, 2006, and was served by leaving a copy at
       Suite 2.05, Level 2, Menara Maxisegar, Jalan Pandan Indah
       4/2, Pandan Indah, 55100 Kuala Lumpur on December 21,
       2006.

    -- the total amount claimed under the Petition is
       MYR233,598.18 being the judgment sum, interest included
       and cost.

    -- the company do not foresee the amount claimed to have a
       material financial or operational impact on the Group.

   -- apart from the amount claimed, Talam do not foresee any
      further losses except for legal costs for both parties.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad is principally engaged in property development.  Its
other activities include trading building materials,
manufacturing of ready mixed concrete, provision for higher
educational programs, development and management of hotel, golf
and country club horticulturists, agriculturists and landscaping
designers and contractors and investment holding.  Operations of
the group are carried out in Malaysia and China.

The Troubled Company Reporter - Asia Pacific reported on Sept.
11, 2006, that based on the Audited Financial Statements of
Talam Corporation for the financial year ended January 31, 2006,
the Auditors Ernst & Young were unable to express their opinion
on the Company's Audited Accounts.  As such, the Company is an
affected listed issuer of the Amended Practice Note 17 category.  

In accordance with PN 17, the company is required to submit and
implement a plan to regularize its financial condition within
eight months from Sept. 1, 2006.


TANCO HOLDINGS: Incurs MYR11.55 Mil. Net Loss in 4Q 2006
--------------------------------------------------------
Tanco Holdings Bhd posted a net loss of MYR11.55 million on
MYR16.41 million of revenues in the fourth quarter period ended
Dec. 31, 2006, as compared with a net loss of MYR14.46 million
on MYR5.15 million of revenues in the same quarter in 2005.

As of end-Dec. 2006, the company's balance sheet showed
illiquidity with current assets of MYR101.71 million and current
liabilities of MYR507.06 million.

Tanco's total assets as of end-Dec. 2006, aggregated to
MYR555.45 million and total liabilities amounted to MYR508.08
million resulting to a shareholders' equity of MYR47.36 million.

A full text-copy of the company's financial statements in the
fourth quarter period ended December 2006, can be viewed for
free at http://bankrupt.com/misc/tanco-4q-results.xls

                          *     *     *

Headquartered in Selangor Darul Ehsan, Malaysia, Tanco Holdings
Berhad -- http://www.tancoresorts.com/-- operates resort, golf  
and marina clubs and provides management services.  Its other
activities include provision of exchange services in relation to
vacation ownership schemes; property holding and development;
provision of consultancy services; money lending business;
travel and tour agent; multimedia related business; and
investment holding.  The Group carries out its operations in
Malaysia, the British Virgin Islands, New Zealand and Mauritius.

The company is a Practice Note 17 company in respect of the
Company's continuance as a going concern in its audited accounts
for the year ended 31 December 2004.  As an affected listed
issuer, the Company is required to submit and implement a
regularization plan to avoid delisting.


TECHVENTURE BERHAD: Fourth Quarter Net Loss Reaches MYR37.56MM
--------------------------------------------------------------
Techventure Bhd incurred a net loss of MYR37.56 million on
MYR5.51 million of revenues in the fourth quarter ended Dec. 31,
2006, as compared with MYR9.76 million of net loss on MYR11.02
million of revenues posted in the same period in 2005.

As of end-Dec. 2006, the company's balance sheet reflected
strained liquidity with current assets of MYR12.5 million
available to pay current liabilities of 151.22 million.

Techventure's total assets as of end-Dec. 2006, reached
MYR133.67 million and total liabilities aggregated to MYR151.86
million resulting to a shareholders' deficit of MYR18.22
million.

A full text-copy of the company's financial statement for the
fourth quarter period ended Dec. 31, 2006, can be viewed for
free at http://bankrupt.com/misc/techven-4qtr-results.xls

                          *     *     *

Techventure Berhad is based in Selangor, Malaysia.  Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products like septic tanks, playground
equipment, traffic barriers, and water tanks.  It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported.  In
addition, the Group also manufactures ice cream.

The Troubled Company Reporter - Asia Pacific reported on May 10,
2006, that Bursa Malaysia Securities Berhad has identified
Techventure as an affected listed issuer having triggered two of
the criteria of the Amended Practice Note 17 category when:

   -- the company's auditors have expressed a modified opinion
      with emphasis on Techven's going concern status in its
      audited accounts for the financial year ended December 31,
      2005; and

   -- there were defaults in payment by Techven and its major
      subsidiaries as announced pursuant to Practice Note
      No. 1 and Techven is unable to provide a solvency
      declaration to Bursa Malaysia Securities Berhad.

As an affected listed issuer, the company is required to
regularize its financial condition or risk being delisted from
the Official List of Companies.


TENGGARA OIL: Defaults Due Feb. 28 Aggregates to MYR28 Million
--------------------------------------------------------------
Tenggara Oil Bhd disclosed with the Bursa Malaysia Securities
Bhd its status of default to various credit facilities as of
Feb. 28, 2007.

According to the disclosure, Tenggara and its subsidiary
companies, Tenggara Lubricant Sdn Bhd, and Tenggara Concrete Sdn
Bhd have been unable to pay the amount of principal and interest
in respect of its credit facilities.

   Lender                    Borrower            Amount Due
   ------                    --------         ----------------
   CIMB Bank Bhd              TOB              MYR5,458,420.53
   (Southern Bank Berhad)

   CIMB Bnk Bhd               TOB                 1,110,924.48
   (Bumiputra-Commerce Bank
   Bhd)

   Malayan Banking Bhd        TLSB                8,266,951.76

   Malayan Banking Bhd        TLSB                1,500,711.87

   Malayan Banking Bhd        TCSB               12,480,578.04
                                                 -------------
   Total:                                     MYR28,817,586.68

                          *     *     *

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 total assets of MYR52.48 million and total liabilities of
the same amount, resulting to zero shareholders' equity.


UNITED CHEMICAL: Debt Restructuring Completion Date Extended
------------------------------------------------------------
United Chemical Industries Bhd, along with Perbadanan Kemajuan
Negeri Perak and Majuperak Holdings Berhad agreed to extend the
completion date of the Corporate Debt Restructuring Agreement to
30 June 2007.

The completion date expired on Feb. 28.

As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, the completion of United Chemical's
restructuring is pending:

   -- private placement by Perbadanan Kemajuan Negeri Perak via
      offer for sale of up to 4,000,000 ordinary shares in
      Majuperak of MYR0.50 at an odder price of MYR0.70; and

   -- administrative matters in relation to:

        * the admission to the Official List and the listing of
          an quotation for the new ordinary shares of Majuperak
          and irredeemable convertible preference shares on the
          Securities Exchange;

        * the issue of redeemable convertible secured loan
          stocks and redeemable convertible unsecured loans
          stocks to the creditors of United Chemicals; and

        * the transfer of listing status of UCI on the Second
          Board of Securities Exchange to Majuperak whereby
          Majuperak shares will be listed on the Main Board of
          the Securities Exchange.

                          *     *     *

United Chemical Industries Berhad, a company incorporated and
domiciled in Malaysia, is a public company limited by shares,
and is listed on the Second Board of Bursa Malaysia Securities
Berhad.  United Chemical is an investment holding company that
was previously involved in the manufacture and sale of
polypropylene and polyethylene woven bags together with its
allied products.  Its subsidiary company, Geotextiles (M) Sdn
Bhd, was previously involved in the manufacture and sale of
geotextile fabrics together with its allied products.

The company's unaudited balance sheet as of December 31, 2006,
went upside down with total assets of MYR3.15 million and total
liabilities of MYR81.28 million, resulting to a shareholders'
deficit of MYR78.13 million.


WEMBLEY INDUSTRIES: Balance Sheet Upside Down at December 2006
--------------------------------------------------------------
Wembley Industries Holdings Bhd's balance sheet went upside down
to MYR859.08 million after posting a total asset of
MYR416.75 million and total liabilities of MYR1.27 billion as of
end-Dec. 31, 2006.

The company's balance sheet also reflected strained liquidity
with current assets of MYR416.69 million available to pay
MYR1.27 billion of current liabilities.

Meanwhile, Wembley Industries incurred a net loss of
MYR32.71 million in the fourth quarter period ended-Dec. 2006,
as compared with MYR85.75 million of net loss in the same period
in 2005.

A full text-copy of the company's financial results for the
quarter ended-Dec. 2006, can be viewed for free at:

        http://bankrupt.com/misc/wembley-4q-results.xls

                          *     *     *

Headquartered in Sarawak Malaysia, Wembley Industries Holdings
Berhad is a developer of commercial properties and investment
holding.  Its other activities are the development of the inter-
state bus and taxi terminal, the retail podium and the budget
hotel.

The company has been placed under the Practice Note 4 category
due to its tight cash flow position.  On January 7, 2003,
Malaysia's Foreign Investment Committee approved the company's
regularization plan.  Subsequently, on April 7, 2003, the FIC
revised its approval to include the possible participation of
Daewoo Corporation, the former turnkey contractor of Plaza
Rakyat Project in the company's Proposed Debt Restructuring.  
The company's ability to continue as a going concern hinges on
the successful implementation of the Scheme.

Wembley Industries Holdings Bhd's balance sheet went upside down
by MYR859.08 million after posting a total asset of MYR416.75
million and total liabilities of MYR1.27 billion as of end-Dec.
31, 2006.


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

AIR NEW ZEALAND: Court Rejects Application to Strike EPMU's Case
----------------------------------------------------------------
The Engineering Printing and Manufacturing Union has been
engaged in legal proceedings alleging that Air New Zealand acted
in bad faith by deliberately misusing the consultation clause of
the ground services Collective Employment Agreement to open
negotiations at a time when members could not take legally
protected industrial action.

Last week, Air New Zealand placed an application to stop the
proceedings.  However, the court rejected the application on
March 2.

Accordingly, the EPMU's case against the airline will continue.

                      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 solid liquidity
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.


ALBATROSS PROPERTIES: CIR Files Liquidation Petition
----------------------------------------------------
On Nov. 28, 2006, the Commissioner of Inland Revenue filed
before the High Court of Auckland a liquidation petition against
Albatross Properties Ltd.

The petition is scheduled for hearing on March 8, 2007, at 10:45
a.m.

The CIR's solicitor can be reached at:

         Justine Berryman
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue (PO Box 33150)
         Takapuna, Auckland
         New Zealand
         Telephone:(09) 984 1538
         Facsimile:(09) 984 3116


BLUE ROOM: Creditors to Lodge Claims by March 15
------------------------------------------------
The creditors of The Blue Room Ltd are required to lodge their
claims by March 15, 2007, and to establish any priority claims
they may have.

The joint liquidators can be reached at:

         Henry David Levin
         Barry Phillip Jordan
         PPB McCallum Petterson
         Level 11, Forsyth Barr Tower
         55-65 Shortland Street, Auckland
         New Zealand
         Telephone:(09) 336 0000
         Facsimile:(09) 336 0010


CER GROUP: Posts NZ$53,000 Loss for Year-Ended December 2006
------------------------------------------------------------
CER Group Limited's December 2006 year loss narrowed to
NZ$53,000 from NZ$327,000 in 2005, ShareChat News cites a report
from the New Zealand Herald.

According to the company the results for the year ended Dec. 31,
2006, delivered 86% revenue uplift on the prior year and a
strong platform for future growth.

The company's revenue nearly doubled to NZ$6.2 million, NZPA
reveals, adding that earnings before interest and tax were
NZ$60,000 against a NZ$186,000 loss in 2005.

According to Managing Director David Warrick, the company
experienced both revenue and gross margin growth, the paper
relates.

In the company's disclosure to the New Zealand Stock Exchange,
CER stated that it for the first time, it has been able to
deliver an operating profit.

The company noted that the key success factors driving the
result were performance from the New Zealand Nature Company
ahead of the projections developed for its acquisition in 2005
and a marked upturn in revenues from the Certified Organics
business.

The Board is confident that the Group's prospects for 2007
remain strong and sales in the first weeks of the New Year show
continuing significant growth.

                         About CER Group

Auckland, New Zealand-based CER Group Ltd. --
http://www.certified-organics.com/-- formerly Certified  
Organics Limited, is engaged in the development, manufacture and
marketing of naturally based biological control, hygiene and
health products for use in agriculture, industry and
domestically, both within New Zealand and for export.  The
company is also involved in the sale of Internet catalogue goods
both within New Zealand and for export.  The company's
subsidiaries include New Zealand Nature Company Limited, Organic
Interceptor Products Limited, Certified Organics (Aust) Pty
Limited and Certified Organics Inc.

                       Going Concern Doubt

On Feb. 27, 2006, upon completion of its audit on the company's
financial statements, KPMG -- the company's independent auditors
-- raised fundamental uncertainties on the company's ability to
continue as a going concern, the validity of which is dependent
upon "many factors both within and external to the control of
the directors."

                          *     *     *

The group suffered net losses of NZ$1.03 million and NZ$1.34
million for the years ended December 31, 2005, and 2004,
respectively.


CERIC ENTERPRISES: Shareholders Opt to Close Business
-----------------------------------------------------
On Feb. 15, 2007, the shareholders of Ceric Enterprises Ltd
passed a special resolution to liquidate the company's business
and appointed Daran Nair as liquidator.

In this regard, Mr. Nair fixed March 22, 2007, as the last day
for which the company's creditors are to prove their debts.

The Liquidator can be reached at:

         Daran Nair
         Nair & Associates Chartered Accountants Limited
         280 Great South Road
         Greenlane, Auckland
         New Zealand
         Telephone:(09) 522 5182
         Facsimile:(09) 522 5183
         e-mail: daran@nair.co.nz


DK MANAGEMENT: Creditors Must Prove Debts by March 14
-----------------------------------------------------
The creditors of DK Management Ltd are required to prove their
debts by March 14, 2007.

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

The joint liquidators can be reached at:

         Karen Betty Mason
         Jeffrey Philip Meltzer
         Meltzer Mason Heath
         Chartered Accountants
         PO Box 6302
         Wellesley Street, Auckland 1141
         New Zealand
         Telephone:(09) 357 6150
         Facsimile:(09) 357 6152


GILS FINANCE: Liquidation Hearing Set for March 8
-------------------------------------------------
The Commissioner of Inland Revenue filed a petition to liquidate
Gils Finance Ltd on Nov. 29, 2006.

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

The CIR's solicitor can be reached at:

         Justine Berryman
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue (PO Box 33150)
         Takapuna, Auckland
         New Zealand
         Telephone:(09) 984 1538
         Facsimile:(09) 984 3116


GORE STREET: Liquidation Hearing Slated for April 12
----------------------------------------------------
On Aug. 18, 2006, the Commissioner of Inland Revenue filed a
liquidation petition before the High Court of Auckland against
Gore Street Trustee Ltd.

The petition will be heard on April 12, 2007, at 10:45 a.m.

The CIR's solicitor can be reached at:

         Rebekah Holloway
         Crown Law Office
         Unisys House
         56 The Terrace, Wellington
         New Zealand
         Telephone:(04) 494 5689
         Facsimile:(04) 494 5683


KIWIMARK LTD: Creditors Must Prove Claims by March 20
-----------------------------------------------------
The creditors of Kiwimark Ltd are required to prove their claims
by March 20, 2007, or they will be excluded from sharing in the
company's distribution.

According to the Troubled Company Reporter - Asia Pacific, the
company faced liquidation of its business on Jan. 29, 2007.

The liquidator can be reached at:

         Grant Bruce Reynolds
         Reynolds & Associates Limited
         Insolvency Practitioners
         PO Box 259059, Greenmount
         East Tamaki, Auckland
         New Zealand
         Telephone:(09) 577 0162
         Facsimile:(09) 577 0243


M G WATERPROOFING: Court to Hear CIR's Liquidation Petition
-----------------------------------------------------------
A petition to liquidate M G Waterproofing Ltd will be heard
before the High Court of Auckland on March 8, 2007, at
10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 30, 2006.

The CIR's solicitor can be reached at:

         Geraldine Ann Ryan
         Auckland South Service Centre
         17 Putney Way (PO Box 76198)
         Manukau, Auckland
         New Zealand
         Telephone:(09) 984 2002


NEW OAKLAND: Court Sets Liquidation Hearing on March 8
------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
filed against New Oakland Properties Ltd on March 8, 2007, at
10:00 a.m.

Body Corporate 329331 filed the petition on Oct. 18, 2006.

Body Corporate's solicitor can be reached at:

         Jennifer G. Connell
         c/o Crocker Strata Management
         525 Manukau Road, Epsom
         Auckland
         New Zealand
         Telephone:(09) 630 8890


RAINBOW ENGINEERING: Shareholders Name Joint Liquidators
--------------------------------------------------------
On Feb. 12, 2007, the shareholders of Rainbow Engineering (2001)
Ltd appointed Peri Micaela Finnigan and Kevin Warwick Bromwich
as joint and several liquidators.

Accordingly, Mr. Finnigan requires the company's creditors to
prove their debts by March 23, 2007.

The Joint Liquidators can be reached at:

         Peri Micaela Finnigan
         Kevin Warwick Bromwich
         McDonald Vague
         PO Box 6092
         Wellesley Street Post Office, Auckland
         New Zealand
         Telephone:(09) 303 0506
         Facsimile:(09) 303 0508
         Web site: http://www.mvp.co.nz


RODD JACQUES: Court Appoints Joint Liquidators
----------------------------------------------
The High Court of Auckland appointed Iain Bruce Shephard and
Christine Margaret Dunphy as joint and several liquidators of
Rodd Jacques International Ltd on Feb. 7, 2007.

As reported by the Troubled Company Reporter - Asia Pacific, the
company faced a liquidation petition filed by Perroplas One Ltd
on Oct. 26, 2006.

The Joint 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


SIGMA PROPERTIES: Faces Liquidation Proceedings
-----------------------------------------------
A liquidation petition filed against Sigma Properties and
Construction Ltd will be heard before the High Court of Auckland
on March 15, 2007, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 24, 2006.

The CIR's solicitor can be reached at:

         Phillip Macredie
         Technical and Legal Support Group
         Auckland North Service Centre
         Inland Revenue Department
         5-7 Byron Avenue (PO Box 33150)
         Takapuna, Auckland
         New Zealand
         Telephone:(09) 984 1064
         Facsimile:(09) 984 3116


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

APC GROUP: Unit Seeks DENR Permit to Explore Northern Zambales
--------------------------------------------------------------
APC Group, Inc.'s fully owned subsidiary APC Mining Corp. has
filed an exploration permit with the Department of Environment
and Natural Resources in the municipalities of Palauig and Iba
in Northern Zambales, Philippines.

Once permitted, APC Mining will conduct exploration activities
in the area.  If exploration works prove the presence of
mineable deposits at commercial quantities, the subsidiary
intends to apply for a mineral sharing agreement with the DENR.

Covering an area of 5,297 hectares, the region is a known
chromite district, which is estimated to host about 4 million
metric tons of the ore.
                         About APC Group

APC Group, Inc., was incorporated on Oct. 15, 1993, with the
primary purpose of engaging in oil and gas exploration, and
development in the Philippines.   The company is 46.6% owned by
Belle Corporation.  APC has investments in telecommunications, a
cement project, and manpower outsourcing businesses.

As of Sept. 30, 2006, APC Group's balance sheet reflected total
assets of PHP3.76 billion and total liabilities of PHP12.58
billion and capital deficiency of PHP8.89 billion.


APEX MINING: Holds ASM on Feb. 28; Reports Approved Resolutions
---------------------------------------------------------------
Apex Mining Company, Inc., finally held its annual stockholders'
meeting on Feb. 28, where shareholders unanimously approved at
least five resolutions.

The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, the possibility that the Philippine Stock Exchange will
impose sanctions on Apex Mining for, among others, failing to
hold an annual stockholders meeting an annual stockholders
meeting.

The company has reportedly put off its ASM six times last year.

The resolutions unanimously approved by Apex's stockholders in
the Feb. 28 meeting are:

   -- the appointment of SGV and Co. as the company's External
      Auditor for fiscal year 2006;

   -- the election of Leo Cleto A. Gamolo, Jan Vestrum, Joel
      Muyco, Simon Booth, William LeClair, Baiverth Diabo and
      Rodolfo Cruz as the company's new directors; and

   -- the election of Baiverth Diabo and Rodolfo Cruz as
      independent directors; and

   -- the stockholders' ratification by at least 2/3 vote of the
      outstanding capital stock the amendment to Article Sixth
      of the Amended Articles of Incorporation and Article III
      Section 2 of the Amended By-Laws relating to the decrease
      in the Number of Directors from Eleven to Seven; and

   -- the ratification of the stockholders representing at least
      a majority of the outstanding capital stock of the
Company,
      of the amendment to Article III Sections 4 and 5 of the
      Amended By-Laws to allow attendance at Meetings of the
      Board of Directors via teleconference and/or
      videoconference.

Apex Mining Company, Inc., is majority owned by Norwegian firm
Crew Gold Corporation, which is based in the United Kingdom.  It
owns the Masara gold mine in Compostela Valley on the island of
Mindanao.  Apex Mining is a corporation that is principally
engaged in the business of mining gold, silver, copper, lead and
other precious metals.  The company was initially involved in
copper mining and shifted to gold mining in the late 70s when
copper prices started to plummet.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Sept. 20, 2006, that Apex Mining Co. incurred a net loss of
PHP46 million for the year ended December 31, 2005.  As of this
date, the Company has accumulated a deficit of PHP1.037 billion
while current liabilities exceed current assets by PHP86
million.

As of Dec. 31, 2005, the company posted total assets of
PHP65,509,996 and total liabilities of PHP86,860,797.


GEOGRACE RESOURCES: Hires J.P. Morgan as Financial Advisor
----------------------------------------------------------
GEOGRACE Resources Philippines, Inc., tapped J.P. Morgan
Securities Asia Private Limited as its exclusive financial
advisor in connection with possible transactions with the
company's subsidiaries and affiliates relating to substantial
portfolio of mining tenements.

According to a filing with the Philippine Stock Exchange,
GEOGRACE's board of directors approved the engagement of
JPMorgan at a meeting held on March 1.

In the same meeting, the board accepted the resignation of David
M. dela Cruz as president and director and elected Lino T.
Coloma, Jr., as director to serve for the ensuing year and until
the election and qualification of his successor.  The board
elected Jerry Angping as chairman and president and Rex Motton
as chief operating officer.

GEOGRACE makes it clear that the resignation of Mr. Dela Cruz
was not due to any disagreement with the company.

Formerly known as Global Equities Inc., GEOGRACE Resources
Philippines, Inc., manufactures and distributes absorbent
cotton, personal, health and baby care products.  The company
also develops premier vacation residential area within a Nature
Park along Tagaytay Ridge in Batangas.  The company also
develops properties.

GEOGRACE Resources was originally incorporated as La Suerte Gold
Mining Corporation on April 20, 1970, primarily to engage in the
exploration, exploitation, and development of mineral resources;
to purchase, lease and otherwise acquire mining claims and
concessions anywhere in the Philippines; and to carry on the
business of mining, extracting, smelting, treating, and
otherwise producing and dealing in metals and minerals of all
kinds including all its products and by-products.

The company was included in the Troubled Company Reporter - Asia
Pacific's Feb. 9 "Large Companies with Insolvent Balance Sheet"
column -- having total assets of US$24.18 million and a
stockholders' deficit of US$1.81 million.

The parent company and subsidiaries have recorded negative
stockholders' equity of PHP263.302 million as of Sept. 30, 2006,
and PHP27.207 million as of Sept. 30, 2005.


MANILA ELECTRIC: To Increase Authorized Capital Stock to PHP14BB
----------------------------------------------------------------
Manila Electric Co. plans to increase its authorized capital
stock from PHP13.8 billion to PHP14 billion.

In a disclosure with the Philippine Stock Exchange, the company
says that its board of directors has decided to modify a
resolution increasing the authorized capital stock.

On Dec. 18, 2006, the board resolved to increase the capital
from PHP13.8 billion to PHP17.8 billion.  The board decided to
modify the Dec. 18 resolution to align the amount of increase to
the present requirements of the company, Meralco explains.

The proposed increase to PHP14 billion, as compared to the
previously agreed PHP17.8 billion, would also mean lesser
regulatory fees to be incurred.  The increase is still subject
to the regulatory rules and requirements of the Securities and
Exchange Commission, the Philippine Stock Exchange and the
Energy Regulatory Commission.

The board has also resolved to remove the classification of the
company's capital stock into Class "A" and Class "B" shares.  As
of Feb. 25, 2007, the company has total common stock outstanding
of 1,00,350,100 shares comprising of 503,798,276 of Class "A"
shares and 402,561,824 of Class "B" shares.

                     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.

As of Nov. 30, 2006, the company's outstanding debts total
PHP115.74 billion.


PRIME ORION: Net Loss in 4th Qtr. 2006 Narrows to PHP40.5 Mil.
--------------------------------------------------------------
Prime Orion Philippines, Inc., and subsidiaries posted a
consolidated net loss of PHP40.5 million in the quarter ended
Dec. 31, 2006, down 77% from the PHP175.9 million loss booked in
the corresponding quarter in 2005.  Prime Orion attributed the
improvement to the recognition of a gain on extinguishment of
debt arising from the settlement of a Lepanto Ceramics, Inc.
bank loan by the company's wholly owned subsidiary OE Holdings,
Inc.

In December 2006, OHI was able to settle the loan of LCI from a
local bank in the principal amount of about PHP42 million.
Accordingly, the Group realized a consolidated gain from
extinguishment of debt amounting to PHP75.4 million and reversal
of provision for probable losses of PHP60.2 million.

Consolidated revenues for the last quarter of 2006 slightly
decreased by 4% to PHP329.5 million from the PHP344.6 million
earned in the same period in 2005, as the Group reported lower
equity income from Pepsi-Cola Products Philippines, Inc., as its
net income decreased due to higher manufacturing and overhead
expenses.

Prime Orion and subsidiaries' cost and expenses increased by 5%
from PHP360.98 million in the quarter ended Dec. 31, 2005, to
PHP380.68 million in the December 2006 quarter.  According to
the company, consolidated cost and expenses increased due to
claims and losses incurred by FLT Prime Insurance Corp. caused
by natural calamities experienced by the country.

Prime Orion's consolidated balance sheet as of Dec. 31, 2006,
showed total assets of PHP5.21 billion, total liabilities of
PHP9.82 billion, and capital deficiency of PHP5.21 billion.

A copy of the Group's consolidated financial statements for the
quarter ended Dec. 31, 2006, is available for free at the
Philippine Stock Exchange Web site at http://www.pse.com.ph/

Headquartered in Makati City, Philippines, Prime Orion
Philippines, Inc. acquires by purchase, exchange, assign, donate
or otherwise, and to hold, own and use, for investment or
otherwise and to sell, assign, transfer, exchange, lease, let,
develop, mortgage, pledge, traffic, deal in and with, and
otherwise operate, enjoy and dispose of any and all properties
of every kind and description and wherever situated, as and to
the extent permitted by law, including but not limited to,
buildings, tenements, warehouses, factories, edifices and
structures and other improvements, and bonds, debentures,
promissory notes, shares of capital stock, or other securities
and obligations, created, negotiated or issued by any
corporation, association, or other entity, domestic or foreign.

Prime Orion Philippines, Inc. and subsidiaries have principal
business interests in real estate, financial services and
manufacturing.

As previously reported in the Troubled Company Reporter - Asia
Pacific, the company's balance sheet as of Sept. 30, 2006,
showed capital deficiency of PHP4.6 billion.


* Philippine's Sound Economic Fundamentals Lift Stock Market
------------------------------------------------------------
The strong fundamentals of the country's economy allowed the
stock market to easily rebound following a 7.9% drop [on Feb.
28].

Finance Secretary Margarito Teves said the government is working
hard to further strengthen the fundamentals so the country can
continue to handle occasional external shocks in the future.

"I'm hoping that (the stock market) will continue to improve in
the next few days and go back to normal within a week to 10
days," he added.  "This being so indicates that our
fundamentals, like our neighboring countries, are improving."

Mr. Teves said if the Philippines can demonstrate continuous
improvements in the macro-economic fundamentals, investors are
inclined to move their excess capital or funds into the country.

"We need to continuously work on our economic strength and put
up infrastructure facilities to attract more investments into
country as investors are known to compare one country with
another as they decide where to put their capital for the short
or long term," he noted.

The secretary said the Philippine economy is getting stronger
but it needs to strengthen further by maintaining fiscal
discipline, ensuring a manageable inflation and increasing and
improving revenue collections so the government can finance
expenditure requirements especially in the areas of social
services and infrastructure.

Share prices closed higher across the board as investors took
comfort in Wall Street's recovery.

Dealers said investors realized that the country's sound
economic fundamentals remained intact, which shielded the local
stock market from external uncertainties.

At its close, the PHISIX was up 122.67 points or 4% at 3,190.12.
There were 105 advancers and 22 decliners, while 45 stocks were
unchanged.

                          *     *     *

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

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

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

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


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

LEVI STRAUSS: Secures New US$325-M Senior Unsecured Term Loan
-------------------------------------------------------------
Levi Strauss & Co. has entered into a binding commitment with
Banc of America Securities LLC and Goldman Sachs Credit Partners
L.P., as joint lead arrangers and joint book managers, with
respect to a new seven-year US$325 million senior unsecured term
loan facility.  The company expects, subject to certain
conditions, to enter into a definitive term loan agreement with
the joint lead arrangers, their affiliates and other potential
lenders by mid-March.

The company intends to use the gross proceeds from the new term
loan, plus cash on hand of approximately US$69 million, to
redeem in full its outstanding US$380 million floating rate
notes due 2012 and to pay related redemption premiums,
transaction fees and expenses.

Pursuant to the terms of the indenture relating to the floating
rate notes, the floating rate notes become redeemable on April
1, 2007 at a price of 102% of par.  The company intends to issue
the redemption notice in the near future and to redeem the
floating rate notes shortly after the notes become redeemable.

                      About Levi Strauss

Levi Strauss & Co. -- http://www.levistrauss.com/-- is a  
branded apparel company, with sales in more than 110 countries.
Levi Strauss designs and markets jeans and jeans-related pants,
casual and dress pants, tops, jackets and related accessories
for men, women and children under its Levi's(R), Dockers(R) and
Levi Strauss Signature(R) brands. Levi Strauss also licenses its
trademarks in various countries throughout the world for
accessories, pants, tops, footwear, home and other products.

The company's global divisions are based in Singapore, San
Francisco, and Brussels.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Oct. 11, 2006, Moody's Investors Service confirmed the company's
B2 Corporate Family Rating and its B3 rating on the company's
various senior unsecured notes.  Additionally, Moody's assigned
an LGD5 rating to those bonds, suggesting noteholders will
experience a 59% loss in the event of a default.


LEVI STRAUSS: Moody's Rates Proposed US$325-M Senior Loan at B2
---------------------------------------------------------------
Moody's Investors Service upgraded its corporate family and
probability of default ratings for Levi Strauss & Co. to B1 from
B2.  The rating outlook is stable.  

At the same time Moody's also assigned a B2 rating to the
company's proposed US$325 million senior unsecured term loan,
which reflects the B1 probability of default rating and the loss
given default assessment of LGD4, 62%.  Proceeds from the new
financing and cash on hand are expected to be used to retire the
outstanding floating rate notes due 2012, and upon repayment
Moody's would expect to withdraw the ratings on these notes.  
The ratings for other rated senior unsecured debts were also
upgraded to B2 from B3.

"The upgrade reflects revenue and operating margin stability as
well as improved free cash flow generation, which enabled the
company to repay approximately US$145 million of debt in 2006",
commented Moody's Vice President Scott Tuhy.

The upgrade also reflects improving operational and systems
controls which are expected to be enhanced by the rollout of SAP
across the franchise in the near term.  The stable outlook
reflects Moody's expectations that the company's financial
metrics will remain at appropriate levels for the B1 rating
category.

Assigned:

   * US$325 million Senior Unsecured Term Loan due 2014, B2,
     LGD4, 62%

Upgraded:

   * Corporate Family Rating and Probability of Default Ratings:
     to B1 from B2

   * Various Senior Unsecured Notes: to B2 from B3

                       About Levi Strauss

Levi Strauss & Co. -- http://www.levistrauss.com/-- is a  
branded apparel company, with sales in more than 110 countries.
Levi Strauss designs and markets jeans and jeans-related pants,
casual and dress pants, tops, jackets and related accessories
for men, women and children under its Levi's(R), Dockers(R) and
Levi Strauss Signature(R) brands. Levi Strauss also licenses its
trademarks in various countries throughout the world for
accessories, pants, tops, footwear, home and other products.

The company's global divisions are based in Singapore, San
Francisco and Brussels.


PETROLEO BRASILEIRO: Will Start Maintenance on Bolivian Plant
-------------------------------------------------------------
Brazil's state oil firm Petroleo Brasileiro S.A. said in a
statement that it will start maintenance work on the Gualberto
Villaroel de Cochabamba refinery in Bolivia on March 3.

Business News Americas says the maintenance work involve the
repair of the primary furnace in the plant's distillation unit
and will require a 17-day suspension of operations.

"Supply of all fuels is guaranteed during this period as there
are sufficient stored volumes to attend to demand," Petroleo
Brasileiro said in a statement.

                   About Petroleo Brasileiro

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

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Building Pipeline with Mitsui, Camargo
-----------------------------------------------------------
Petroleo Brasileiro S.A., along with Mitsui and Camargo Correa,
plans to build an ethanol pipeline running from Goias, Brazil,
to the Atlantic coast, Xinhua news agency reports.

The three companies will start with a feasibility study that
would determine the technological and economic viability of a
pipeline network aimed at exporting ethanol from Brazil to Japan
and other markets, Dow Jones Newswires reports, citing a
statement from Petroleo Brasileiro.

The project aims to provide an efficient means for the export of
ethanol from Brazil's central state to the port of Sao Sebastiao
on the Atlantic Ocean.

                   Ethanol Export to Japan

The state-oil firm has been in talks with Japan for the export
of ethanol.  The pipeline would be a vital part of that
agreement, Xinhua says.

A contract with Japan could mean a yearly 1.8 billion to 6
billion liters of ethanol exported to the Asian nation,
depending on government-mandated ethanol mix.

Government figures showed approximately 225.4 million liters of
ethanol was exported to Japan in 2006.

                   About Petroleo Brasileiro

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

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


READER'S DIGEST: Completes US$17 Per Share Cash Merger
------------------------------------------------------
Reader's Digest Association, Inc. completes the acquisition of
RDA by an investor group led by Ripplewood Holdings LLC.

As previously announced on Nov.16, 2006, entities formed by the
Ripplewood-led investor group entered into a definitive merger
agreement with RDA to acquire all of the outstanding common
shares of RDA for US$17.00 per share in a transaction valued at
US$2.4 billion, including assumption of debt.

RDA's common shares will cease trading on the New York Stock
Exchange at market close today, and will be delisted.  As soon
as practicable, a paying agent appointed by Ripplewood will send
information to all RDA stockholders of record, explaining how
they can surrender RDA common stock in exchange for US$17.00 per
share in cash without interest.  Stockholders of record should
await this information before surrendering their shares.

Stockholders who hold shares through a bank or broker will not
have to take any action to have their shares converted into
cash, because the bank or broker will handle these conversions.

                      About Reader's Digest

Headquartered in Pleasantville, New York, The Reader's Digest
Association, Inc, -- http://www.rda.com-- is a global publisher  
and direct marketer of products including magazines, books,
recorded music collections and home videos.  Products include
Readers Digest magazine, which is published in 50 editions and
21 languages.  Annual revenues approximate US$2.4 billion.
Reader's Digest has offices in Singapore, Korea, Malaysia,
Philippines, Thailand and India.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 14, 2007, Standard & Poor's Ratings Services lowered its
ratings on the company, including lowering the corporate credit
rating to 'B' from 'BB', reflecting the increase in financial
risk resulting from the leveraged acquisition, and removed the
ratings from CreditWatch, where they were placed with negative
implications on Aug. 15, 2006.  The outlook is negative

The TCR-AP also noted that Moody's Investors Service downgraded
the company's family rating to B2 from Ba1, concluding the
review for downgrade initiated on Sept. 6, 2006 and continued on
Nov. 16, 2006 in connection with the proposed US$2.4 billion
acquisition by a consortium of investors led by Ripplewood
Holdings LLC.  The downgrade reflects the significant increase
in leverage that will occur as a result of the debt - financed
buyout and RDA's concurrent combination with Ripplewood
portfolio companies WRC Media Inc. and Direct Holdings U.S.
Corp.


READER'S DIGEST: Ripplewood Holdings Completes Acquisition
----------------------------------------------------------
Ripplewood Holdings L.L.C. completes the acquisition of The
Reader's Digest Association, Inc., the publisher and global
marketer of books, magazines, music, and video founded 85 years
ago by DeWitt and Lila Acheson Wallace.

Harvey Golub, Executive Chairman of Ripplewood and Chairman of
Reader's Digest, announced the appointment of Mary Berner as
President and CEO, succeeding Eric W. Schrier, who will become
an Industrial Partner with Ripplewood and a consultant to
Reader's Digest.  The change is effective immediately.  Ms.
Berner will assume responsibility for WRC Media and Direct
Holdings U.S. Corp., two of Ripplewood's portfolio companies
that are being integrated into the new Reader's Digest.

"We are delighted to complete this agreement and to take
Reader's Digest forward in the next chapter of building its
brands and businesses," Mr. Golub said.  "I am especially
pleased that Mary Berner is becoming the CEO.  She is the ideal
chief executive to unlock the inherent value of this
organization. Mary is a proven leader and motivator of people,
and she possesses strategic scope and outstanding business
judgment.  Mary will have Reader's Digest running at top speed,
and employees and business partners alike can expect an exciting
future."

Ms. Berner brings broad experience in all aspects of the
publishing industry.  Most recently, she led Fairchild
Publications, Inc. from 1999 to 2006, first as President and CEO
and then as President of Fairchild and an officer of Conde Nast
when Fairchild became a division of Conde Nast Publications,
Inc. Ms. Berner led the company to unprecedented financial
growth and doubled its portfolio of magazines and businesses,
leading to Advertising Age naming her "Publishing Executive of
the Year" in 2004.

Ms. Berner holds a B.A. from the College of the Holy Cross in
Worcester, MA.  She lives in Manhattan with her husband and four
children.

The move to take Reader's Digest private completed 17 years of
public ownership and will result in the delisting of the firm's
familiar RDA ticker symbol on The New York Stock Exchange.  On
Feb. 2, 2007, Reader's Digest shareholders voted to approve the
transaction, which was structured as a merger with an entity
created for purposes of the transaction.  Shareholders will
receive US$17.00 per share in cash for each common share of
Reader's Digest they held, representing an approximately 23%
premium over the stock's average closing share price during the
45 trading days prior to the deal's announcement on November 16,
2006.  Including the assumption of Reader's Digest debt as well
as the WRC Media and Direct Holdings deals, the full value of
the transaction is approximately US$2.6 billion.

Along with Ripplewood, other investors in the transaction
include the J. Rothschild Group, GoldenTree Asset Management,
C.V. Starr & Co., GSO Capital Partners, Merrill Lynch Capital
Corp., and Magnetar Capital or their affiliates.

Based in New York, Ripplewood Holdings L.L.C. was established in
1995 by Timothy C. Collins, the firm's CEO.  Through five
institutional private equity funds it manages, Ripplewood has
invested in transactions in the United States, Europe, Asia and
the Middle East.  To date, it has managed over US$10 billion of
capital in industries including direct marketing, consumer
products, industrial products, automotive, consumer electronics,
chemicals, financial services and technology. The foundation of
the firm's approach is to enhance the value of the businesses it
acquires through a combination of strategic, operational and
financial actions.

The Wallaces founded Reader's Digest in 1922 in their Greenwich
Village, N.Y. apartment with the notion that people needed a
reader-friendly magazine to help them keep pace with a fast-
changing world.  The magazine included 30 stories each month,
one for each day, on a variety of topics.  An overnight success,
the magazine grew into a global powerhouse as the company added
new lines of business and moved into markets in most parts of
the world.

                     About Reader's Digest

Headquartered in Pleasantville, New York, The Reader's Digest
Association, Inc, -- http://www.rda.com-- is a global publisher  
and direct marketer of products including magazines, books,
recorded music collections and home videos.  Products include
Readers Digest magazine, which is published in 50 editions and
21 languages.  Annual revenues approximate US$2.4 billion.
Reader's Digest has offices in Singapore, Korea, Malaysia,
Philippines, Thailand and India.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 14, 2007, Standard & Poor's Ratings Services lowered its
ratings on the company, including lowering the corporate credit
rating to 'B' from 'BB', reflecting the increase in financial
risk resulting from the leveraged acquisition, and removed the
ratings from CreditWatch, where they were placed with negative
implications on Aug. 15, 2006.  The outlook is negative

The TCR-AP also noted that Moody's Investors Service downgraded
the company's family rating to B2 from Ba1, concluding the
review for downgrade initiated on Sept. 6, 2006 and continued on
Nov. 16, 2006 in connection with the proposed US$2.4 billion
acquisition by a consortium of investors led by Ripplewood
Holdings LLC.  The downgrade reflects the significant increase
in leverage that will occur as a result of the debt - financed
buyout and RDA's concurrent combination with Ripplewood
portfolio companies WRC Media Inc. and Direct Holdings U.S.
Corp.


STATS CHIPPAC: Moody's Reviews Ratings for Possible Upgrade
-----------------------------------------------------------
Moody's Investors Service placed the Ba2 corporate family rating
and Ba2 foreign currency debt ratings of STATS ChipPAC Limited
on review for possible upgrade.

"This rating action follows announcement from STATS ChipPAC's
major shareholder, Singapore Technologies Semiconductors which
is also a subsidiary of Temasek, is launching a voluntary
conditional cash offer for the remaining shares in STATS
ChipPAC," says Ken Chan, Moody's lead analyst for the company.
"The offer is conditional upon STS acquiring a total of more
than 50% of the outstanding shares of STATS ChipPAC, keeping in
mind it already has 35.6% ownership," Chan says.

The offer to buy the remaining shares and increase its ownership
reflects the potentially stronger strategic importance of STATS
ChipPAC to Temasek.  This in turn could alter Moody's assessment
of the support level according to the Joint Default Analysis
model for Government-Related Issuers.

"The conditional offer would also include an offer for STATS
ChipPAC's outstanding US$115 million convertible notes and
US$150 million convertible subordinated notes due 2008.  The
potential cash redemption of such convertible notes would lower
the company's financial leverage and improve its Baseline Credit
Assessment," says Chan.

The review will focus on:

   --the relative strategic importance of STATS ChipPAC to
     Temasek following its increased majority ownership; and

   -- the funding arrangement for the redemption of outstanding
      convertible notes and the impact on STATS ChipPAC's
      fundamental Baseline Credit Assessment, which is currently
      at 11-13.

If the offer materializes whereby Temasek, through its
subsidiary STS, ends up owning a significant majority stake in
STATS ChipPAC and the convertible notes would be redeemed
through equity injections -- which would improve the overall
financial leverage of the company -- then there could be
potential for an upgrade of more than one-notch.

                      About STATS ChipPAC

Headquartered in Singapore, STATS ChipPAC Ltd.
--http://www.statschippac.com/-- provides semiconductor test  
and assembly services.  The company assembles leaded and
laminate packages and provides related services such as package
design and leadframe and substrate designs.  The company
provides these tests and assembly services to semiconductor
companies, which do not have their own manufacturing facilities.  
The company's offices outside the United States are located in
Singapore, South Korea, China, Malaysia, Taiwan, Japan, the
Netherlands and United Kingdom.


===============
T H A I L A N D
===============

ARVINMERITOR INC: Repays Outstanding Term Loan B in Full
--------------------------------------------------------
ArvinMeritor Inc. repaid in full the US$169.5 million aggregate
principal amount of its outstanding Term Loan B due in 2012.  
Net proceeds from the recent issue of convertible senior
unsecured notes along with other sources were used to fund the
repayment.

The company also disclosed that lenders participating in the
Senior Secured Revolving Credit Facility due in 2011 have
unanimously approved amendments to the facility.

The amendments include a reduction of the revolving credit
facility from US$980 million to US$900 million in addition to
less restrictive financial covenant levels.

Jim Donlon, senior vice president and CFO said, "While the
reductions and improvements to our revolving credit facility
were not required, they demonstrate our ongoing effort to
continuously improve our balance sheet."  He continued, "With
the recently announced agreement to sell our Emissions
Technologies Group, the need for facilities of more than US$1
billion is no longer necessary.  We believe the enhancements
will provide additional financial flexibility as we focus on
transforming our company and we are pleased with the support of
our bank group in helping us achieve our goals."

                    Credit Facility Amendment

The company entered into Amendment No. 1 to Credit Agreement,
among ArvinMeritor, ArvinMeritor Finance Ireland, the financial
institutions party and JPMorgan Chase Bank, National
Association, as Administrative Agent.

The amendment relates to the Credit Agreement, dated as of June
23, 2006, by and among ArvinMeritor, AFI, the institutions from
time to time parties thereto as lenders, JPMorgan Chase Bank,
National Association, as Administrative Agent, Citicorp North
America, Inc. and UBS Securities LLC, as Syndication Agents, ABN
AMRO Bank N.V., BNP Paribas and Lehman Commercial Paper Inc., as
Documentation Agents, and J.P. Morgan Securities Inc. and
Citigroup Global Markets, as Joint Lead Arrangers and Joint Book
Runners.

The primary purposes of the amendment are:

    (a) to provide for repayment by ArvinMeritor of the
        US$170 million term loan under the Credit Agreement;

    (b) to reduce the amount of the revolving loan commitment
        under the Credit Agreement to US$900 million from
        US$980 million; and

    (c) to amend certain covenants in the Credit Agreement,
        including covenants with respect to maintenance by
        ArvinMeritor of specified debt and fixed charge coverage
        ratios.

A full text copy of Amendment No. 1 to Credit Agreement, dated
as of February 23, 2007, is available for free at:

              http://ResearchArchives.com/t/s?1a56

                       About ArvinMeritor

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$8.8 billion   
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry.  The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries.  These countries
are: China, India, Japan, Singapore, Thailand, Australia,
Venezuela, Brazil, Argentina, Belgium, Czech Republic, France,
Germany, Hungary, Italy, Netherlands, Spain, Sweden,
Switzerland, United Kingdom, among others.  ArvinMeritor common
stock is traded on the New York Stock Exchange under the ticker
symbol ARM.

                          *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2007,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc.  The trend is Stable.


ARVINMERITOR INC: Earns US$7 Mln in Quarter Ended December 31
-------------------------------------------------------------
ArvinMeritor, Inc. reported US$7 million of net income on
US$2.3 billion of sales for the quarter ended Dec. 31, 2006,
compared with US$34 million of net income on US$2.09 billion of
sales in the comparable period of 2005.

"We are operating in a difficult environment in the passenger
car, light-duty truck, and commercial vehicle segments.  In an
effort to address the ongoing challenges, and create value for
our shareowners, we are making good progress and are on track
with our recently announced initiative, Performance Plus.  By
proactively taking control of our future through this global
transformational initiative, while at the same time maintaining
focus on improving our operational and financial performance, we
will emerge a stronger, more dynamic global organization," said
Chip McClure, Chairman, CEO and President.

The company reduced its fiscal year 2007 forecast for light
vehicle production to 15.3 million vehicles in North America,
down from 15.8 million forecasted last quarter.  The company's
forecast for Western Europe is unchanged at 16.1 million
vehicles.

The company anticipates sales from continuing operations in
fiscal year 2007 in the range of US$8.9 to US$9.1 billion, and
the outlook for full-year diluted earnings per share from
continuing operations to be in the range of US$1.15 to US$1.25.  
Cash flow guidance for fiscal year 2007 is US$75 million to
US$125 million, as previously forecast.  This guidance excludes
gains or losses on divestitures, restructuring costs, and other
special items, including potential extended customer shutdowns
or production interruptions.

"We are focused on redefining ArvinMeritor by creating a culture
of operational, commercial and individual excellence," said
Mr. McClure.

"Our vision is to be a global systems provider focused on our
target markets, deliver strong financial performance and drive
even greater value for our shareowners, employees and
customers."

A full-text copy of the company's Form 10-Q for the quarter
ended Dec. 31, 2006 is available for free at:

              http://ResearchArchives.com/t/s?1a55

                       About ArvinMeritor

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$8.8 billion   
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry.  The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries.  These countries
are: China, India, Japan, Singapore, Thailand, Australia,
Venezuela, Brazil, Argentina, Belgium, Czech Republic, France,
Germany, Hungary, Italy, Netherlands, Spain, Sweden,
Switzerland, United Kingdom, among others.  ArvinMeritor common
stock is traded on the New York Stock Exchange under the ticker
symbol ARM.
                          *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2007,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc.  The trend is Stable.


ARVINMERITOR INC: Initial Purchasers Buy US$25M Additional Notes
----------------------------------------------------------------
ArvinMeritor Inc. has reported that the initial purchasers in
the company's private offering of US$175 million aggregate
principal amount of 4% convertible senior unsecured notes due
2027 have exercised in full their option to acquire up to US$25
million additional principal amount of the notes, bringing to
US$200 million the aggregate principal amount of 4% convertible
senior unsecured notes due 2027 sold by the company in the
private offering to qualified institutional buyers.  

The company will pay 4% cash interest on the notes semiannually
until Feb. 15, 2019, after which no cash interest will be paid.  
Commencing Feb. 15, 2019, the principal amount of the notes will
be subject to accretion at a rate that provides holders with an
aggregate annual yield to maturity of 4%.

The notes will be convertible in certain circumstances into cash
up to the accreted principal amount of the notes, and cash,
shares of common stock, or a combination thereof, at the
company's election, for the remainder of the conversion
obligation, if any, in excess of the accreted principal amount,
based on an initial conversion rate, subject to adjustment,
equivalent to 37.41 shares of common stock per US$1,000
original principal amount of notes.  This represents an initial
conversion price of US$26.73 per share.

Net proceeds from the recent issue of convertible senior
unsecured notes along with other sources were used to fund the
repayment in full the US$169.5 million aggregate principal
amount of the company's outstanding Term Loan B due in 2012.

The additional purchase and sale is scheduled to close on
Feb. 28, 2007, subject to customary closing conditions.

                      About ArvinMeritor

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$8.8 billion   
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry.  The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries.  These countries
are: China, India, Japan, Singapore, Thailand, Australia,
Venezuela, Brazil, Argentina, Belgium, Czech Republic, France,
Germany, Hungary, Italy, Netherlands, Spain, Sweden,
Switzerland, United Kingdom, among others.  ArvinMeritor common
stock is traded on the New York Stock Exchange under the ticker
symbol ARM.

As reported in the Troubled Company Reporter on Feb. 12, 2007,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc.  The trend is Stable.


BLOCKBUSTER INC: Posts US$12.9MM Net Income in 2006 4th Quarter
---------------------------------------------------------------
Blockbuster Inc. reported financial results for the fourth
quarter and full-year ended Dec. 31, 2006.

For the fourth quarter of 2006, net income was US$12.9 million
as compared with net income of US$18.0 million for the fourth
quarter of 2005.  Adjusted net income for the fourth quarter of
2006 totaled US$20.4 million as compared with adjusted net
income of US$25.0 million for the fourth quarter of 2005.

"2006 was an exciting year for Blockbuster.  We delivered four
consecutive quarters of positive same-store domestic movie
rental revenues.  We also significantly reduced operating costs,
sizably increased our online subscriber base and substantially
improved our profitability and cash flow," said John Antioco,
Blockbuster Chairman and CEO.  "In the year ahead, we anticipate
online subscriber growth to exceed 2006 levels.  Specifically,
we expect to have a total of 3 million BLOCKBUSTER Total
Access(TM) subscribers by the end of the first quarter, which
would mean that we will have nearly doubled our subscriber base
in the five months since we launched our new integrated
offering.  This growth will require some investment in the first
half of the year, but we believe this investment is the right
strategy to deliver value to our shareholders and should result
in more online customers, more in-store customers, a larger
share of the overall domestic rental market and increasing
revenues."

                Fourth Quarter Financial Results

Revenues for the fourth quarter of 2006 increased 1.4% to
US$1.51 billion compared with US$1.49 billion for the fourth
quarter of last year primarily due to an increase in worldwide
same-store merchandise sales and favorable foreign exchange
rates.  Revenues for the period also include the favorable
impact of an approximately US$30 million increase in revenues
from Blockbuster's online rental service, which added
approximately 700,000 online rental subscribers during the
fourth quarter, including approximately 500,000 paying
subscribers.  The Company credits its significant subscriber
growth during the fourth quarter to the strong customer appeal
of BLOCKBUSTER Total Access, which gives its online customers
the option of returning their DVDs through the mail or
exchanging them at a participating BLOCKBUSTER(R) store for free
in-store movie rentals.

Operating income for the fourth quarter of 2006 totaled US$45.8
million, compared to operating income of US$57.0 million for the
same period last year.  Total selling, general and
administrative expenses for the fourth quarter of 2006 increased
US$17.9 million from the fourth quarter of 2005 largely due to
higher level of promotional activities and costs incurred to
launch and support BLOCKBUSTER Total Access.  Gross profit
increased US$7.8 million primarily as a result of the increase
in merchandise revenues mostly driven by strong sales of games
internationally.  Gross margin for the fourth quarter remained
essentially flat at 51.8% as compared to 52.1% for the same
period last year.

                Full-Year 2006 Financial Results

Revenues for 2006 decreased 3.5% to US$5.52 billion from US$5.72
billion for 2005 mostly due to the closure of stores resulting
from accelerated actions to optimize the Company's asset
portfolio and a 2.1% decrease in worldwide same- store sales.  
Worldwide same-store revenues include the favorable impact of a
US$105.5 million increase in revenues from Blockbuster's online
rental service resulting from growth in the subscriber base,
which nearly doubled to approximately 2.2 million subscribers,
including approximately 2 million paying subscribers, at the end
of 2006.

Operating income for the full-year 2006 totaled US$79.1 million,
as compared to an operating loss of US$388.0 million for the
same period last year, which included a US$341.9 million non-
cash charge to impair goodwill and other long- lived assets.  
Adjusted operating income increased by US$133.2 million to
US$115.4 million for the full-year 2006 from an adjusted
operating loss of US$17.8 million for 2005 mostly driven by
ongoing cost containment actions, which the Company began during
the third quarter of 2005.

For the full-year 2006, net income totaled US$54.7 million as
compared with a net loss of US$588.1 million for 2005.  
Excluding the favorable resolution of multi-year tax audits,
store closure and severance costs as well as certain other
items.

Cash flow provided by operating activities increased by
US$399.9 million to US$329.4 million for the full-year 2006 from
a US$70.5 million deficit for 2005 driven by improvement in
profitability.  Free cash flow (net cash flow provided by
operating activities less capital expenditures) improved by
US$460.8 million to US$250.9 million for the full-year 2006 from
a negative US$209.9 million for the same period last year.  As
of Dec. 31, 2006, no balance was outstanding under the company's
revolving credit facility and the Company's borrowing capacity,
which excludes various letters of credit, totaled approximately
US$293 million.

             Divestiture of Certain Non-Core Assets

As part of the ongoing review of its asset portfolio, during
2006 the company completed the divestiture of its MOVIE TRADING
CO.(R) locations and Movie Brands Inc. subsidiary, closed its
store operations in Spain and sold its Taiwan subsidiary,
coupled with a master franchise license, to Webs-TV, the largest
broadband TV operator in the Chinese market.  Most recently, in
2007 the company sold its 72-store, U.S.-based RHINO VIDEO
GAMES(R) chain to GameStop Corp. and in conjunction with the
Blockbuster Brazilian franchisee's sale of its stores to LOJAS
Americanas, the company signed a 20-year licensing agreement
with Lojas, giving the Brazilian retailer rights to the
BLOCKBUSTER brand for the rental and retail sale of video
products.  The company also entered into an agreement to sell
its Australian subsidiary and grant the master franchise rights
for the BLOCKBUSTER system in Australia to Video Ezy, an
Australian-based company with 518 franchised video rental
stores.

                         Other Matters

The Company and its Chief Executive Officer are in discussions
in an attempt to resolve a disagreement concerning the Board of
Directors' 2006 bonus award to the Chief Executive Officer.  On
Jan. 25, 2007, the company's Board of Directors exercised
negative discretion and awarded a 2006 bonus to the Chief
Executive Officer of US$2.28 million, which would be in addition
to his 2006 salary and deferred compensation of approximately
US$2.5 million.  The bonus is subject to the condition that the
Board would award him no 2006 bonus if the Chief Executive
Officer contested the award.  The Chief Executive Officer
maintains that he would be entitled to a 2006 bonus of US$7.65
million based on the application of the 2006 senior bonus plan
performance goals discussed in the company's Form 8-K dated
Feb. 16, 2006.  Therefore, the company has determined to reserve
US$4.5 million for this contingency.  The Company has evaluated
this contingency solely based on the guidance outlined in SFAS
No. 5, Accounting for Contingencies.  The complete terms and
provisions of the employment agreement with the company's Chief
Executive Officer are filed with the SEC as Exhibit 10.2 to the
company's Form 10-Q for the quarterly period ended
June 30, 2004.

                     About Blockbuster Inc.

Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game  
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia.  The company also operates
in Taiwan, Thailand, and New Zealand.

Standard & Poor's Ratings Services revised its outlook on video
rental retailer Blockbuster Inc. to stable from negative.  The
ratings on the Dallas-based company, including the 'B-'
corporate credit rating, were affirmed.

Fitch Ratings has affirmed Blockbuster Inc.'s Issuer default
rating at 'CCC'; Senior secured credit facility rating at
'CCC/RR4'; and Senior subordinated notes rating at 'CC/RR6'.

The Troubled Company Reporter - Asia Pacific reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the the US and Canadian Retail sector, the
rating agency confirmed its B3 Corporate Family Rating for
Blockbuster Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$500 million
   Sr. Sec. Revolving
   Credit Facility      B3       B1       LGD2     25%

   US$100 million
   Senior Secured
   Term Loan A          B3       B1       LGD2     25%

   US$550 million
   Senior Secured
   Term Loan B          B3       B1       LGD2     25%

   US$300 million
   9% Sr. Sub. Notes    Caa3     Caa2     LGD5     86%


iTV PCL: Prime Minister's Office Outlines Plan for Takeover
-----------------------------------------------------------
The Prime Minister's Office will form a panel to supervise iTV
Pcl if the company's license is revoked as a result of its
failure to pay fines and fees aggregating THB102.21 billion by
the March 6 deadline, The Nation reports.

The report cites Deputy Prime Minister Pridiyathorn Devakula as
saying that the government would legally pressure iTV for the
payment of the THB2.21-billion concession fee and the
THB100-billion fine for violations of its programming
requirements, adding that iTV would still be obligated to settle
its financial responsibilities even if the network's concession
is revoked.

Minister Pridiyathorn said that if iTV will not be able to
settle its fines by March 6, the company's license will be
revoked a day after, and a committee will supervise a smooth
transition as it takes care of technical, legal, financial, and
human resource issues, the report relates.

The Nation says that the panel will comprise representatives
from the government sector, including Prime Minister's Office
Minister Khunying Dhipava-dee Meksawan, Prime Minister' Office
Permanent Secretary Chulayuth Hiranyawasit, representatives from
the Attorney General's Office, the Council of State, and the
Finance Ministry.

Mr. Chulayuth said that the PM's Office would approach certain
individuals to sit on the panel.  The report adds that depending
on the committee's decision, MCOT PLC could be brought in to
operate iTV, and the programming ratio during prime time -- 70%
devoted to news programs -- would be retained.

The report adds that Jade Dhonavanik, dean of Siam University's
Faculty of Law, opined that an MCOT takeover is far-fetched,
since MCOT is now a private company and private companies are
not allowed to run government properties.

The Nation recounts that the Cabinet approved the concession
revocation after a meeting on Wednesday last week, and the
Cabinet agreed that all 1,700 iTV employees would not be laid
off.  The report states that on March 1-6, the Prime Minister's
Office will ask a representative to tell the employees to submit
their resignations, and then re-apply for their jobs with the
office.

The Nation says that the offer to re-apply for the same jobs
along with the same salaries is a privilege given to iTV
employees because the company is a concessionaire of the state.

The Nation says that iTV staff, represented by Tuangporn
Asvavilai, issued a statement thanking the Cabinet for solving
the problem without causing too much hassle to iTV's employees.    
The staff vowed to continue their work and they asked the
government to not intervene in the network's future operations.  

Mr. Chulayuth said that the Prime Minister's Office plans to
change the company's name and logo because the present iTV name
and logo are copyrighted.

"These are the preparations the government will take if iTV
eventually fails to pay the money on March 6.  We cannot wait
until the day comes and then act. This is a common procedure,"
The Nation quotes Mr. Dhipavadee.

                          About iTV

iTV PLC's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets.  Shin Corp Plc is iTV's major
shareholder, with a 53% stake.  Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family.  Earlier this year, it sold its majority
stake in iTV to Temasek.

The Troubled Company Reporter - Asia Pacific reported on
June 23, 2006, that the Prime Minister's Office demanded a
concession fee payment and fines to the government from the
television network.

The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's Office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.

On Dec. 15, 2006, the TCR-AP reported that the Supreme
Administrative Court upheld the Central Administrative Court's
verdict by voiding the arbitration ruling on concession fee
payments won by iTV in 2004.  The overdue concession payment and
fines that the broadcaster must pay reached THB100 billion.

The TCR-AP reported on Feb. 22, 2007 that the Central
Administrative Court denied iTV Plc's request for an urgent
hearing pertaining to its petition to temporarily block the
Prime Minister's Office from revoking its broadcast concession
if it fails to pay the THB100 billion fee and fine by March 6,
2007.


* SET Posts "SP" Sign on 11 Firms Unable to Submit Fin'l Report
---------------------------------------------------------------
The Stock Exchange of Thailand disclosed that on Mar. 2, 2007,
certain listed companies failed to submit their financial
statements for the period ending Dec. 31, 2006, by the specified
deadline.

As a result, the SET has posted "SP" -- Suspension -- signs on
the trading of the individual company securities effective on
the first trading session of Mar. 2 until the companies submit
their financial statements.  

   * Listed Company under Normal Sector:

      1. Power-P Public Company Limited (POWER)
      2. Sunwood Industries Public Company Limited (SUN)
      3. Traffic Corner Holdings Public Company Limited (TRAF)
      4. Abico Holdings Public Company Limited (ABICO)
      5. Circuit Electronics Industries Public Company Limited
         (CIRKIT)
      6. Daidomon Public Company Limited (DAIDO)
      7. Hantex Public Company Limited (HTX)

   * Listed Companies under Non-Performing Group:

      1. Agro Industrial Machinery Public Company Limited (AMAC)
      2. Datamat Public Company Limited (DTM)
      3. Srithai Food & Beverage Public Company Limited (SRI)
      4. Thai Wah Public Company Limited (TWC)

                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.



                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Andrei Sanchez, Nolie Christy Alaba, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano,
Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez,
and Peter A. Chapman, Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***