TCRAP_Public/070315.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

            Thursday, March 15, 2007, Vol. 10, No. 53

                            Headlines

A U S T R A L I A

FORTESCUE METALS: S&P Places FMG's BB- Ratings on CreditWatch
HEADSTART CORPORATION: ASIC Bans Directors for One Year
METAL STORM: To Pay Convertible Notes on April 2
METAL STORM: Bruce McComish Resigns from Board
MULTIPLEX GROUP: Wembley Stadium Granted Practical Completion

SUNCORP-METWAY: Moody's Affirms A2/P-1 Ratings on Promina Merger
WESTPOINT GROUP: Slater & Gordon Files 2nd Class Action
ZINIFEX LTD: Agrees with Wolfden to Extend Exclusivity Agreement


C H I N A   &   H O N G  K O N G

BANK OF OVERSEAS: Fitch Affirms Individual Rating at E
CHINA CONSTRUCTION: Expects to Cut Tax Bills on New Regulation
CITIC PACIFIC: Offers Pre-IPO Preferential Shares in Unit
COSMOS BANK: Fitch Affirms Individual 'E' Rating
TOM GROUP: S&P Affirms Long-Term Credit and Bonds Due '08 at BB+

TOM GROUP: To Pay HK$1.57 Billion to Privatize Unit
* China's Top 3 Banks to Set Up Platform for Business Expansion


I N D I A

BANK OF INDIA: R. Prasad Appointed as Workmen Employee Director
BHARAT PETROLEUM: Acquires 25% Interest in two North Sea Blocks
BHARTI AIRTEL: Reveals Strategic Management Changes
BHARTI AIRTEL: In Talks With Telcos for 5th SEa-Me-We Cable
BHARTI AIRTEL: No Dividend Yet, Chairman Mittal Says

GENERAL MOTORS: 2006 Net Loss Decreases to US$2 Billion
JUNIPER NETWORKS: CFO Robert Dykes & EVP Robert Sturgeon Resign
JUNIPER NETWORKS: Files Annual Report & Delayed SEC Form 10-Q


I N D O N E S I A

ANEKA TAMBANG: Forms Joint Venture for Tayan Alumna Project
CA INC: Partners with BEA Systems for Identity & Access Mgmt.
DIRGANTARA INDONESIA: Bids in Tender held by Malaysian Air Force
FOSTER WHEELER: Subsidiary Wins IOCL Contract for Delayed Coker
GOODYEAR TIRE: Fitch Affirms 'B' Issuer Default Rating

KRONOS INT'L: Parent Posts US$41.2-MM Net Income for 4th Quarter
METSO OYJ: Supplies EUR8-Mil. Lime Calcining Plant to Graymont
NUTRO PRODUCTS: Reschedules Live Conference Call to March 29
PERTAMINA: Shows Interest in Chevron Rapak & Ganal Oil Blocks
PERTAMINA: Subsidiary Incurs US$3.1-Million Loss in Bojonegro

PERUSAHAAN GAS: To Exploit Coal Bed Methane With Bukit Asam
PERUSAHAAN LISTRIK: Seeks Partners for Hydroplant Project


J A P A N

AICHI BANK: Posts JPY2.6BB Net Income for Year to Mar. 31, 2006
ALL NIPPON: Grounds Bombardier Fleet Due To Latest Plane Mishap
ATTACHMATE CORP: Fitch Rates Proposed US$500 Mil. Facility at B
DELPHI CORP: Posts Claims Transfers Totaling More Than US$200MM
DELPHI CORP: Judge Grants Shareholders Access to Delphi Docs

FORD MOTOR: Aston Martin CEO Vows to Make it World's Number One
JAPAN AIRLINES: Reports Group Traffic Data For January 2007
MITSUBISHI MATERIALS: Inks PGM Recycling Deal With 2 Other Firms
NIKKO CORDIAL: Citigroup To Raise Offer to JPY1,700 Per Share
NIKKO CORDIAL: S&P Ratings on Companies on CreditWatch Positive

SAPPORO HOLDINGS: Reports Consolidated Earnings For December 06
SOJITZ CORP: To Buy Back JPY230.4 Billion-Worth of Shares
SOJITZ CORP: Appoints Akio and Yutaka as Chairman and President
TAIHEIYO CEMENT: Will Dissolve and Liquidate Subsidiary
TENNECO INC: Earns US$51 Million in Year Ended December 31, 2006

TOHOKU MISAWA: Lowers Net Profit Outlook for Year to Mar. 2007
TOKYO DOME: To Sell Golf and Resorts to Morgan Stanley Unit


K O R E A

CHOROKBAEM MEDIA: Issues Second Unregistered Convertible Bonds
CHOROKBAEM MEDIA: Signs MOUs for Business Tie-Ups
HANA BANK: Receives FSS Request to Ease Card Marketing Scheme
KOREA EXCHANGE BANK: BAI Wants Lone Star Sale Corrected
SAMSUNG CARD: IPO to Raise Up to US$570 Million, Sources Say

SILVER STAR: Adjusts Conversion Price of Second Conv. Bonds
SILVER STAR: Signs Memorandum of Understanding with KYG
THE LEADCORP: Amends Conversion Price of First Convertible Bonds
TONG YANG MAGIC: Declares Annual Cash Dividend
CPN CO: Changes Name to Namae International


M A L A Y S I A

FEDERAL FURNITURE: Seeks Extension to Complete Reform Exercise
GEORGE TOWN: Fails to File 2006 Fourth Quarter Results
KAI PENG: Balance Sheet Upside Down by MYR37.82 Mil. at Dec. 31
MALAYSIA AIRLINES: Expects 10% Load Raise with Supersavers Promo
MALAYSIA AIRLINES: Sells Training Center for US$41.4 Million

PROTON HOLDINGS: German Envoy Optimistic About Volkswagen Deal
SUTERA HARBOUR: RAM Downgrades Tranche 2 Secured Bonds to D


P H I L I P P I N E S

LEPANTO CONSOLIDATED: Stockholders Meeting Set for April 16
MANILA MINING: Sets Annual Stockholders Meeting on April 17
MIRANT CORP: Earns US$1.3 Billion for Quarter Ended December 31
VULCAN INDUSTRIAL: Sets Record & Payment Dates for Stock Offer
WARNER MUSIC: Prepares Fresh Takeover Approach for EMI


S I N G A P O R E

ADVANCED MICRO: Low Performance Cues Moody's to Cut Rating to B1
MICRO COMPONENT: Net Loss in 4th Qtr. 2006 Narrows to US$0.7MM
REFCO INC: Crisis Managers Want US$7.4 Mil. in Success Fees Paid
REFCO INC: Ch. 7 Trustee Wants Lease-Decision Deadline Extended
REFCO INC: Administrators Want Until Apr. 30 to Object to Claims

SEA CONTAINERS: Jan. 31 Balance Sheet Upside-Down by US$166 Mil.
SPECTRUM BRANDS: Gets US$1.6-Bil. Pledge to Refinance Bank Loan


T H A I L A N D

ABICO HOLDINGS: SET to Keep "SP" Sign Until Rehab Plan Is Ready
DAIMLERCHRYSLER: CAW Local 1285 Members Votes for New Agreement
DAIMLERCHRYSLER: Sells EUR2 Bil. 4.375% Bonds Due March 2010
PHELPS DODGE: Fitch Cuts 7.375% Notes' Rating to BB- from BBB

     - - - - - - - -

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

FORTESCUE METALS: S&P Places FMG's BB- Ratings on CreditWatch
-------------------------------------------------------------
On March 13, 2007, Standard & Poor's Ratings Services placed its
'BB-' issue ratings on FMG Finance Pty Ltd. (100% owned by
Fortescue Metals Group Ltd.) on CreditWatch with negative
implications.  The CreditWatch placement reflects uncertainty
surrounding the development, timing, and liquidity of FMG's iron
ore project in the Pilbara, Western Australia, in the wake of
Cyclone George, which struck the company's project on March 9,
2007.

As a result of the cyclone, the construction schedule and cost
of the project's rail, port, and mine components will be
affected.  However, the magnitude of cost overruns and
completion dates is uncertain until the company can assess the
damage caused by the high winds and flood waters on the project
rail camps and rail route.  FMG is confident that it has
appropriate contingencies in place to mitigate any risk of
adverse material change to the company's financial position.  In
support of this view, and to mitigate some of the liquidity
risks associated with delays, Standard & Poor's notes that
project debt has been sized to include AU$198 million of
contingencies, AU$300 million of cost overruns, and a backup
construction-completion account of AU$135 million.  However, as
at Jan. 31, 2007, the AU$198 million contingency account had
reduced to about AU$145 million.

"Until the company has completed its damage assessment, there is
significant uncertainty over the project costs and completion
schedules," Standard & Poor's credit analyst Peter Stephens
said. "If the project uses its cash reserves and contingencies
at a higher-than-expected rate, FMG will need to raise
additional equity; in such a scenario, the issue ratings may be
lowered."

Standard & Poor's will monitor FMG's review processes and will
update the CreditWatch when the information becomes available.


HEADSTART CORPORATION: ASIC Bans Directors for One Year
-------------------------------------------------------
On March 14, 2007, the Australian Securities and Investments
Commission said that in February, it has disqualified directors
from managing corporations after their involvement in failed
companies, including Hairdressers Michael Strugnell and
Elizabeth Cole.

Mr. Strugnell and Ms. Cole have each been banned by the ASIC
from managing companies for one year.

The banning follows an ASIC investigation into their involvement
in two failed companies:

   1) Headstart Corporation Pty Ltd; and
   2) Future Investments Pty Ltd

The ASIC found that Mr. Strugnell and Ms. Cole failed to prevent
the companies from trading while insolvent and that they engaged
in phoenix activity by winding up the companies, transferring
assets, and operating liabilities into new companies and leaving
statutory debts in the liquidated entities.

As reported in the Troubled Company Reporter - Asia Pacific on
Aug. 22, 2005, the members and creditors of Headstart resolved
to wind up the company and appointed R. A. Sutcliffe as
liquidator.

The Liquidator can be reached at:

         R. A. Sutcliffe
         Ground Floor, 192-198 High Street
         Northcote Vic 3070
         Phone: (03) 9482 6277


METAL STORM: To Pay Convertible Notes on April 2
------------------------------------------------
On March 13, 2007, Metal Storm Limited advised that the payment
of interest on Convertible Notes for the period Jan. 1, 2007, to
March 31, 2007, will occur on:

   * March 23, 2007 -- the record date to identify the Note
     Holders entitled to receive interest payments on the
     Convertible Notes; and

   * April 2, 2007 -- the interest payment date.

Interest is payable at 10% per annum.

The interest payment for this period is AU$0.33288 cents for
each Convertible Note.

The Convertible Notes will trade on an ex-interest basis from
the commencement of trading on March 19, 2007.

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.


METAL STORM: Bruce McComish Resigns from Board
----------------------------------------------
In a statement posted at its Web site on March 8, 2007, Metal
Storm Limited said that Bruce McComish resigned from the
company's board of directors.  Mr. McComish joined the Board in
October 2004.

According to Metal Storm Chairman Terry O'Dwyer, Mr. McComish
has "provided valuable input to the Board particularly during
the 2006 successful capital raise where his Chairmanship of the
Finance Committee was critical to the outcome."

Mr. O'Dwyer advised that the company does not intend to fill the
casual vacancy in the foreseeable future.

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.


MULTIPLEX GROUP: Wembley Stadium Granted Practical Completion
-------------------------------------------------------------
In a statement dated March 12, 2007, Multiplex Group stated that
a Certificate of Practical Completion has been granted for the
Wembley Stadium project in London.

Multiplex explained that the granting of this certificate by
Wembley National Stadium Limited marks the handover of the
management and control of the stadium to WNSL.

World Soccer relates that final safety checks on the stadium
were completed last week.

                         About Multiplex

Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its  
revenue from property funds management, construction, property
development, and facilities management.  The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East.  In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion.  Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.

Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties.  Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down.  In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits.  This started a series of profit downgrades throughout
2005.

In May 2005, Multiplex admitted that its troubled Wembley
Stadium construction project may end up with a multimillion
loss.  As of February 2006, the Company is faced with liquidity
crisis after posting a massive AU$474 million loss on Wembley.

The Troubled Company Reporter - Asia Pacific reported on
Aug. 18, 2006, that Multiplex Group's financial results for the
year ended June 30, 2006, noted that the Wembley project in the
United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss.  The project loss position has
remained unchanged since Dec. 31, 2005.


SUNCORP-METWAY: Moody's Affirms A2/P-1 Ratings on Promina Merger
----------------------------------------------------------------
On March 13, 2007, Moody's Investors Service affirmed Suncorp
Metway Limited's A2/P-1 long- and short-term senior debt and
deposit ratings, and its bank financial strength rating of C+
with a Stable outlook.  The move follows approval by the Federal
Court of Australia and the bank's shareholders to merge with
Promina Group Limited.  Suncorp Metway's ratings had previously
been on review, direction uncertain.

"The merger will significantly enhance Suncorp Metway's
franchise by adding a well established suite of brand names, an
expanded customer base and greater geographic coverage. Suncorp
Metway has also proven its ability to successfully integrate
previous acquisitions", said Patrick Winsbury, Senior Vice
President at Moody's Sydney office.

However, the acquisition does increase leverage within the
group, and the group structure will create some structural
subordination at the parent company level, resulting in a net
neutral rating outcome.

Moody's highlighted that the rating affirmation does not
consider the potential impact of the agency's revised bank
rating methodology, announced last month.  The effect on Suncorp
Metway's ratings of adopting the revised methodology will be
covered in a separate rating announcement in the coming weeks,
at the same time as other Australian banks.

Suncorp Metway reported assets of AU$57 billion (approximately
US$43 billion) at financial year-end 2006.

                      About Suncorp-Metway

Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and  
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses.  Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.

Standard and Poor's gave the company a 'B' insurer financial
strength rating on July 10, 2005.


WESTPOINT GROUP: Slater & Gordon Files 2nd Class Action
-------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 25, 2006, the law firm of Slater & Gordon sued
Professional Investment Services on behalf of 22 investors who
lost an average of AU$100,000 in Westpoint Corp.'s collapse.

A previous report from the TCR-AP noted that on Aug. 22, 2006,
500 people have signed up in a class action -- organized by
Slater & Gordon and funded by IMF Australia concerning
Westpoint's collapse -- against financial planners.

In an update, a report from the Australian Associated Press
relates that Slater & Gordon has filed a second class action in
the New South Wales Supreme Court in behalf of 82 investors who
lost more than AU$9.5 million against Westpoint's two financial
planning companies:

   1) Quantum Securities Pty Ltd; and

   2) Masu Financial Management Pty Ltd.

The class action alleges that Quantum and Masu provided
misleading information to the investors.

The investors seek a court order for the companies to refund
their investment with interest, costs, and compensation for
anxiety and stress, the Sydney Morning Herald says.

The AAP reveals that:

   -- 59 clients from the Chinese community filed the class
      action against Quantum claiming they were encouraged to
      invest in Westpoint's Bayshore development in Port
      Melbourne and the Mount Street development in North
      Sydney; and

   -- 23 clients filed proceedings against Masu alleging that
      they were encouraged to invest in Westpoint's Ann Street,
      Bayview and York streets developments.

Slater & Gordon will allege Quantum representative Andy Chen had
developed a finely tuned strategy to target investors from the
Chinese community, the AAP says.

Many of the Westpoint schemes were represented as safe and even
guaranteed by the financial planners from both companies, the
Sydney Herald cites Slater & Gordon lawyer Steven Lewis as
saying.

                    About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property  
development and owns or manages retail and commercial properties
with a total value of over AU$300 million.  The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group.  The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings.  The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.  
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years.  These wind-up actions are
still continuing.

In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd.  The ASIC had
applied to wind up the company on grounds of insolvency.  The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.  
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.

The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.  Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.


ZINIFEX LTD: Agrees with Wolfden to Extend Exclusivity Agreement
----------------------------------------------------------------
As stated in a press release dated March 9, 2007, Zinifex
Limited and Wolfden Resources have agreed to amend the terms of
their previously announced exclusivity agreement governing
Zinifex's non-binding proposal to acquire Wolfden.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 23, 2007, Zinifex has made a non-binding proposal to
acquire all the outstanding common shares of Wolfden for
CDN$3.90 per share.  The proposal, which was subject to
confirmatory due diligence and the satisfaction of certain other
pre-conditions, values Wolfden at approximately CDN$358 million.

According to the TCR-AP, Wolfden granted Zinifex a period of
exclusivity until March 7, 2007, in which to complete due
diligence and has agreed not to solicit other proposals.

Under the terms of the agreement, this exclusivity period could
be extended until March 16, 2007, to complete transaction
documentation, provided there was no change in price or adverse
change in other proposal conditions.  The parties have agreed to
amend the exclusivity agreement in relation to price.

The amended price per share that Zinifex would propose to offer
subject to completion of transaction documentation is AU$3.81.
Zinifex has waived its condition as to the completion of due
diligence and has confirmed no change in the other bid terms
stated in its conditional letter of interest.

The parties anticipate commencing negotiations in respect of
definitive transaction documentation shortly.  Shareholders are
cautioned that no definitive agreements have yet been reached,
other than the Exclusivity Letter, as amended.  There can be no
assurances that any transaction will result, or as to the terms
thereof.

                         About Zinifex

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

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

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

                          *     *     *

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

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


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

BANK OF OVERSEAS: Fitch Affirms Individual Rating at E
------------------------------------------------------
On March 14, 2007, Fitch Ratings downgraded the Support ratings
assigned to selected smaller banks and bills finance companies
in Taiwan to reflect the reduced likelihood of full and timely
support from the government for financial institutions that are
not deemed "too big to fail".

After Fitch's rating action, Bank of Overseas Chinese ratings
shows:

   * Individual rating affirmed at E
   * Support downgraded to 5 from 4

According to Fitch, the recent partial default by Great Chinese
Bills in January 2007 highlights that the Taiwanese government
is gradually withdrawing its full support to smaller financial
institutions and is introducing an element of market discipline
by imposing costs on institutional creditors and depositors --
especially other financial institutions -- while ensuring that
retail depositors are paid in full.

Fitch notes that the revision to the Financial Restructuring
Fund Act in June 2005 effectively ceased the regulatory bail-out
fund's protection to non-deposit liabilities.  Beyond this, the
transitional blanket guarantee to all depositors of troubled
financial institutions covered by the FRF will be phased out by
2011.

Although Fitch does not expect full and timely government
support to be extended to the smaller financial institutions in
Taiwan, the agency still believes that support to large,
systemically important ones remains strong, given their
importance to Taiwan's economy.


CHINA CONSTRUCTION: Expects to Cut Tax Bills on New Regulation
--------------------------------------------------------------
The Construction Bank of China expects that its tax bill will
fall by about a quarter as a result of a new law to unify
corporate income tax, Reuters reports, citing bank Chairman Guo
Shuqing.

Mr. Gou did not give an exact figure on how much the bank will
save from the new tax policy.

Reuters relates that on March 8, a draft law was introduced
stating that all firms will pay tax at 25%.  Currently, domestic
companies are taxed at 33%, while most foreign-funded
manufacturing enterprises pay 15%-24%.

Meanwhile, Mr. Gou said that the bank plans to launch a share
incentive scheme for employees, possibly later this year.  
According to the planned scheme, the bank would initially issue
0.4% of its share capital to staff, a total that could rise over
time to at most 3%.

The scheme is aimed to attract talented people to a bank where
salaries lagged from those of its international peers, Mr. Gou
said.

                          *     *     *

The China Construction Bank -- http://www.ccb.cn/-- is one of  
the "big four" banks in the People's Republic of China.  It was
founded on October 1, 1954 under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.

The Troubled Company Reporter - Asia Pacific reported on
Nov. 20, 2006, that Fitch Ratings affirmed the bank's 'D'
individual ratings.


CITIC PACIFIC: Offers Pre-IPO Preferential Shares in Unit
---------------------------------------------------------
CITIC Pacific Ltd is making a preferential offer to select
shareholders interested in subscribing in its unit, CITIC 1616
Holdings Ltd, Forbes reports.

As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 17, 2007, Citic Pacific plans to spin off its unit by
selling up to 35% existing shares of CITIC 1616 and listing on
the Stock Exchange of Hong Kong.

The preferential offer, according to company secretary Alice Tso
is to be made to qualified shareholders of the company if and
when the proposed spin off of CITIC 1616 materializes, Forbes
relates.

No specific date was mentioned for the planned offering.

Forbes notes that local newspapers reported earlier that CITIC
1616 plans to launch a pre-marketing campaign for its initial
public offering next week and aims to open the offer for retail
subscription at the end of this month.

Meanwhile, Ms. Tso said that under the proposed preferential
scheme, CITIC Pacific's qualifying shareholders are entitled to
subscribe, on an assured basis at the CITIC 1616 offer price, to
one share for every whole multiple of 20 existing CITIC Pacific
shares held as of 5 p.m. on March 16.

Shareholders owning less than 20 existing CITIC Pacific shares
by March 16 will not be entitled to participate in the
preferential scheme, Ms. Tso noted.

                        About CITIC 1616

CITIC 1616 is a wholly owned subsidiary of CITIC Pacific.  CITIC
1616 Group is principally engaged in the provision of value
added services to telecom operators with a focus on China and
Hong Kong telecom market through the operation of a neutral and
independent telecom hub.  Through its telecom hub, CITIC 1616
Group handles both traditional international voice calls,
roaming voice and advanced Mobile VAS, including SMS and
roaming-enhanced services.
  
                          *     *     *

Based in Hong Kong, CITIC Pacific Ltd --
http://www.citicpacific.com/-- is engaged in a range of  
businesses in China and Hong Kong, including steel
manufacturing, property development and investment, power
generation, aviation, infrastructure, communications and
distribution.  It is 29% indirectly owned by China International
Trust & Investment Corporation.

On June 28, 2006, The Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on CITIC Pacific Ltd to BB+
from BBB-.  At the same time, it removed the rating from
CreditWatch, where it had been placed with negative implications
on April 7, 2006.  The outlook is stable.

In addition, the TCR-AP also reported that Moody's Investors
Service on June 16, 2006, assigned a Ba1 corporate family rating
to CITIC Pacific Ltd and has withdrawn its Baa3 issuer rating.  
The senior unsecured rating for CITIC Pacific Finance (2001)
Ltd's bond is downgraded to Ba1 from Baa3.  The rating outlook
is stable.  This concludes the review initiated by the rating
agency in April 2006.


COSMOS BANK: Fitch Affirms Individual 'E' Rating
------------------------------------------------
On March 14, 2007, Fitch Ratings downgraded the Support ratings
assigned to selected smaller banks and bills finance companies
in Taiwan to reflect the reduced likelihood of full and timely
support from the government for financial institutions that are
not deemed "too big to fail".

After Fitch's rating action, Cosmos Bank's ratings shows:

   * Individual rating affirmed at E
   * Support downgraded to 5 from 4

According to Fitch, the recent partial default by Great Chinese
Bills in January 2007 highlights that the Taiwanese government
is gradually withdrawing its full support to smaller financial
institutions and is introducing an element of market discipline
by imposing costs on institutional creditors and depositors --
especially other financial institutions -- while ensuring that
retail depositors are paid in full.

Fitch notes that the revision to the Financial Restructuring
Fund Act in June 2005 effectively ceased the regulatory bail-out
fund's protection to non-deposit liabilities.  Beyond this, the
transitional blanket guarantee to all depositors of troubled
financial institutions covered by the FRF will be phased out by
2011.

Although Fitch does not expect full and timely government
support to be extended to the smaller financial institutions in
Taiwan, the agency still believes that support to large,
systemically important ones remains strong, given their
importance to Taiwan's economy.


TOM GROUP: S&P Affirms Long-Term Credit and Bonds Due '08 at BB+
----------------------------------------------------------------
On March 13, 2007, Standard & Poor's Ratings Services affirmed
its BB+ long-term corporate credit rating on TOM Group Ltd.  The
outlook is stable.

At the same time, Standard & Poor's affirmed its BB+ issue
rating on the outstanding convertible bonds due 2008 that were
issued by its subsidiary, TOM Holdings Ltd., and guaranteed by
TOM.

The affirmations follow TOM's announced plan to take private and
delist its wireless Internet subsidiary, TOM Online Inc.
     
"By taking the company private, TOM would have the flexibility
to access the cash that TOM Online generates, which accounts for
nearly 60% of the cash generated by the entire group," said
Standard & Poor's credit analyst Lawrence Lu.
     
TOM Online is expected to undertake significant business
restructuring and additional capital investments to broaden and
expand its business.
     
"Standard & Poor's will continue to discuss the company's future
business plans with its management," said Mr. Lu.  "Significant
sustained increases in TOM's debt or the company's entry into
new businesses that have weak profiles could be problematic."
     
TOM is still effectively controlled by the Hong Kong group
chaired by Li Ka-Shing that includes Cheung Kong (Holdings) Ltd.
(A-/Negative/--) and Hutchison Whampoa Ltd. (A-/Negative/--).  
The implicit support provided by Mr. Li's group is a major
factor underpinning the rating on TOM.
     
TOM plans to buy out TOM Online shareholders at a cash price of
HK$1.52 per share.  That would be a 33.3% premium over the
closing price of HK$1.14 per share on March 2, 2007.  To take
the company private, TOM will need total cash of HK$1,571
million, excluding options.  If all the outstanding TOM Online
vested share options were exercised, it would need total cash of
HK$1,771 million.
     
TOM intends to borrow from banks to finance the transaction.  As
at June 30, 2006, it had total debt of about HK$3 billion.  
After TOM Online is taken private, TOM's debt leverage will
increase to a level that is at the high end for the current
rating category.  However, Standard & Poor's expects TOM to
realize cost savings and synergistic benefits from delisting TOM
Online.

TOM's ratio of total debt to EBITDA should drop to 6x within the
next two years, which was the level in mid 2006.
     
TOM has adequate liquidity.  As at June 30, 2006, it had a free
cash balance of HK$1.7 billion and access to financing
facilities of HK$2.1 billion.  Its liquidity should soften after
the transaction.


TOM GROUP: To Pay HK$1.57 Billion to Privatize Unit
---------------------------------------------------
TOM Group Ltd plans to pay about HK$1.57 billion to buy the
remaining 1.03 billion shares -- a 24.27% stake -- it does not
own in unit TOM Online Inc, The Edge Daily reports.

According to the group, funding for the purchase will come from
borrowing from financial institutions.  Goldman Sachs was
appointed the group's financial adviser, The Edge relates.

TOM Online's assets, apart from its mobile-services arm, include
joint ventures with Skype and U.S. Web auction giant EBay Inc.,
The Edge notes.

                          *     *     *

TOM Group's principal activities are carried out in five media
areas.  Publishing includes circulation, printing and
distribution of magazine and book titles in Greater China.  

It has two units, TOM Online and TOM Outdoor Media Group.  TOM
Online offers wireless Internet services including SMS, MMS,
WAP, IVR, ring tones and ringback tones.  Its www.tom.com portal
features over 50 content channels on entertainment, music and
sports.  TOM Outdoor Media Group, meanwhile, operates 16
subsidiaries and a billboard and unipole network in Mainland
China with media asset space over 300,000 sq meters covering
near 60 cities.

The Group is headquartered in Hong Kong and has operations in 15
cities throughout the Greater China region, including Beijing,
Shanghai, Guangzhou and Taipei.
On March 13, 2007, Standard & Poor's Ratings Services affirmed
its BB+ long-term corporate credit rating on TOM Group Ltd.  The
outlook is stable.

At the same time, Standard & Poor's also affirmed its BB+ issue
rating on the outstanding convertible bonds due 2008 that were
issued by its subsidiary, TOM Holdings Ltd., and guaranteed by
TOM.


* China's Top 3 Banks to Set Up Platform for Business Expansion
---------------------------------------------------------------
The Agricultural Bank of China, Industrial and Commercial Bank
of China and the China Construction Bank plans to establish a
joint online platform in an effort to expand their businesses
from the financial sector to other fields, Xinhuanet News
reports, citing unnamed bank sources.

The banks have decided to team up and establish an online
exchange platform to compete with other online companies,
sources said, adding that the banks would first explore business
opportunities in the education sector, Xinhuanet notes.

China Securities Journal quoted the general manager of the e-
bank of the Agricultural Bank as saying that the platform will
be open to all commercial banks.


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

BANK OF INDIA: R. Prasad Appointed as Workmen Employee Director
---------------------------------------------------------------
India's Ministry of Finance has appointed Rameshwar Prasad as
the Bank of India's new workmen employee director pursuant to a
notice dated March 5, 2007.  Mr. Prasad, who was formerly a
special assistant at the bank's Patna Branch, will hold office
from the date of his appointment and until he attains retirement
age, or until he ceases to be a workmen employee of the bank
whichever is earlier, the bank says in a filing with the Bombay
Stock Exchange.

BOI further informs BSE of the retirement of two directors from
the bank's board:

   -- Tarun Sheth, and

   -- Dr. P Kotaiah.

Bank of India -- http://www.bankofindia.com/-- has 2,628   
branches spread over all states/union territories in India,
including 93 specialized branches.  The bank provides a range of
financial products and services, including numerous credit
schemes, deposit schemes, cash management services, credit/debit
cards, deposit vaults and corporate bonds.  It also extends
finance to small and medium enterprises and small-scale
industries.  It provides a variety of loans, such as mortgage
loans, educational loans, auto finance loans, holiday loans,
personal loans and home loans.  The bank offers Internet banking
services for both the retail and corporate clients.

The bank also operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States and Vietnam.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 1, 2007, Standard & Poor's Ratings maintained Bank of
India's Bank Fundamental Strength Rating at 'C'.


BHARAT PETROLEUM: Acquires 25% Interest in two North Sea Blocks
---------------------------------------------------------------
Bharat Petroleum Corp. Ltd signed a farm-in agreement on
March 13, 2007, for acquiring participating interest in the
North Sea, in U.K., blocks 48/1b and 48/2c, a filing with the
Bombay Stock Exchange states

After farm-in, Bharat Petroleum will have a 25% participating
interest in the blocks.  The participating interests of the
three other consortium partners will also be 25% each:

   -- Encore (NNS) Ltd and Encore Petroleum Ltd-Operator;

   -- NWE Southern Cross (UK) Pty Ltd; and

   -- Tata Petrodyne Ltd.

The terms of the exploration license require a well to be
drilled before December 2008.

Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is     
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene.  During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities.  There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country.  The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.

Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.

On Sept. 23, 2005, the Company delisted its shares from the
Madras Stock Exchange Ltd, Calcutta Stock Exchange Association
Ltd and Delhi Stock Exchange Association Ltd.  In November 2005,
Bharat Petroleum's November 2004 profits dissipated and the
company registered a INR203-crore (US$45.7 million) net loss.
By the end of the third quarter ending December 31, 2005, the
Company posted a US$231-million net loss.

In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted.  Even with its expansion moves, Bharat Petroleum has
decided to put aside a US$1.4-million expansion project due to
losses brought about by oil subsidies, as the Company -- and the
entire industry -- suffered huge losses and has difficulty
implementing expansion activities due to the Government's
refusal to allow oil companies to raise fuel prices despite
global crude oil price crossing US$70 a barrel.

On Feb. 20, 2006, the Petroleum Ministry proposed an increase of
INR3 per liter each in petrol and diesel prices and INR20 per
cylinder increase in liquefied petroleum gas price to save the
oil companies from going bankrupt.


BHARTI AIRTEL: Reveals Strategic Management Changes
---------------------------------------------------
Bharti Airtel, on March 11, disclosed a major initiative for
leadership and growth across the organization in India as well
as its overseas ventures.  The new organizational structure is
in line with the company's continued endeavor to propel its high
performers across businesses to take up larger responsibilities
and in the process capitalize on their learning and competencies
at Bharti Airtel.

Manoj Kohli, President, Bharti Airtel Limited said, "Our journey
towards becoming the most admired brand and institutionalizing
'One Airtel' necessitates that we leverage our learnings across
the organization not only in India but also in our new overseas
ventures.  The formation of a new structure is the result of the
organization's objective to transition high performers across
businesses and provide them with larger responsibilities.  I am
confident that through these changes in the leadership teams we
will enable Bharti Airtel to take a quantum leap in setting
'best in class' performance parameters both in India as well as
overseas and become a top talent destination."

In alignment with the company's growth both in India and its new
international ventures the following changes in the Leadership
team will come into effect from April 1, 2007.

Sanjay Nandrajog, will be the new Executive Director,
International Operations & Managed Services.  In his previous
stint as Executive Director, North, he was successfully leading
the largest Region for the mobility business of the group.  In
this new role Sanjay will be responsible for translating
Bharti's success in India across borders -- for locations like
Sri Lanka, a wholly owned operation and in Seychelles, Jersey
and Guernsey as managed services. In addition any other new
licenses will also come under his purview.  All current CEOs of
these operations will now directly report in to Mr. Sanjay
Nandrajog.

P. Swaminathan, will take over as Executive Director, Bharti
Infratel.  He has successfully led the integrated Tamil Nadu, as
a Director & CEO.  Bharti Infratel is the new foray of Bharti
group into Telecom Infrastructure Management.  This new role is
significantly important for the company as it will help build
synergies and cost efficiencies based on substantial
infrastructure sharing, energy conservation etc.

Both Sanjay and Swaminathan will continue to report to Mr. Manoj
Kohli.  Apart from them the other important changes are:

K Srinivas, is being promoted as Executive Director - Mobility
East.  In his earlier stint as the Director Mobility East, has
successfully built upon the vast market opportunity in the
region, and will continue to report to Mr. Sanjay Kapoor, Jt.
President, Bharti Airtel Ltd.

Jayant Khosla, is the new Executive Director - Mobility West.  
He has been instrumental in creating success and leading the
Airtel brand in the Western region.  As earlier Mr. Jayant
Khosla will continue to report to Mr. Sanjay Kapoor, Jt.
President, Bharti Airtel Ltd.  Airtel has also recently merged
its Mumbai and Maharashtra & Goa circles into a consolidated
operation in the West to achieve better market penetration and
seamless service delivery, in line with its vision of driving
operational synergy and the West leadership team, under Khosla,
will work towards achieving dominance in the West.

Deepak Mehrotra, is being promoted as Director - Mobility South.
As CEO Karnataka Mobility Circle, he has successfully
consolidated the leadership position of the circle and will now
report to Mr. Sanjay Kapoor.  Additionally, Mr. Deepak Mehrotra
will provide the guidance and ensure a smooth transition to his
successor Mr. V. Venkatesh, who is being promoted as CEO
Karnataka circle.

The management changes are in line with Airtel's leadership and
talent agenda and will help propel the organization towards
aggressive growth.

Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.  
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services.  The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India.  The B&TS business unit provides broadband and
telephone services in 90 cities across India.  The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates.  Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services.  The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+.  The outlook on the rating remains stable.

Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+ ratings
on Sept. 21, 2005.


BHARTI AIRTEL: In Talks With Telcos for 5th SEa-Me-We Cable
-----------------------------------------------------------
Bharti Airtel Ltd is in talks with Asian, African telecom majors
for building the fifth undersea submarine cable connecting South
East Asia to Europe via the Indian subcontinent and Middle East,
The Economic Times reports citing an unnamed Bharti executive.

The new cable is amongst many undersea links being planned to
address Asia's exploding bandwidth requirements largely driven
by a dramatic increase in the number of Internet users, the
report explains.

According to the report, Bharti's move is in line with its plans
to be a major player in the enterprise segment.

The plans to build the Sea-Me-We-5, however, are still on the
drawing board, The Times points out.  According to the news
agency, the Sea-Me-We-5 consortium members, its participating
operators and the countries that the cable will touch, are not
yet determined.

Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.  
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services.  The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India.  The B&TS business unit provides broadband and
telephone services in 90 cities across India.  The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates.  Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services.  The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+.  The outlook on the rating remains stable.

Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+ ratings
on Sept. 21, 2005.


BHARTI AIRTEL: No Dividend Yet, Chairman Mittal Says
----------------------------------------------------
Bharti Airtel Ltd Chairman Sunil Mittal says the company's
investors will have to wait some more years before they can
expect the maiden dividend, Zee News reports.

"We have not given dividend precisely because we are spending
more than we are earning," the report quotes Mr. Mittal as
saying.

Mr. Mittal believes a company like Bharti Airtel, paying small
dividend may not mean anything to shareholders.  "They
(shareholders) would rather have us invested more and create
value," he told the news agency.

Mr. Mittal expects that investments being pumped into the
company to continue to outpace earnings.

Asked whether investors still have confidence in Bharti and when
he expects the company to turn cash flow positive, Mittal said,
"Yes, they (investors) do understand telecom business. As far as
turning cash-flow positive, I hope, we still continue to grow at
rapid fire and if we continue to grow at this rate, we will
still carry on like this."

Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.  
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services.  The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India.  The B&TS business unit provides broadband and
telephone services in 90 cities across India.  The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates.  Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services.  The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+.  The outlook on the rating remains stable.

Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+ ratings
on Sept. 21, 2005.


GENERAL MOTORS: 2006 Net Loss Decreases to US$2 Billion
-------------------------------------------------------
General Motors Corp. posted net income for 2006, excluding
special items, of US$2.2 billion, compared with a net loss of
US$3.2 billion in 2005, marking a US$5.4 billion improvement.

Including special items, GM had a net loss of US$2.0 billion for
2006, compared with a net loss of US$10.4 billion in the year-
ago period.  GM earned record revenue of US$207 billion in 2006,
compared with US$195 billion in 2005.

"We needed 2006 to be a big year, and it was," GM Chairman and
CEO Rick Wagoner said.  "Our performance last year reflects the
significant progress we've made toward transforming GM into a
more competitive, global business focused on long-term,
sustainable success.  The improvement is a credit to
our employees, union partners, dealers and suppliers worldwide.  
It's also validation that our strategy is working, and faster
than many people thought possible."

"But nobody at GM is declaring victory, because we all know
there is still a lot more work to do to achieve our goals of
steady growth, solid profitability and positive cash flow
generation.  We're confident that the momentum we generated in
2006 will continue to build through this year and beyond," Mr.
Wagoner added.

GM's net income in the fourth quarter 2006 was US$180 million
excluding special items.  These results compare to a net loss of
US$936 million in the year ago period.  Including the net
favorable effect of all special items, GM's net income was
US$950 million in the fourth quarter of 2006, compared with a
loss of US$6.6 billion in the fourth quarter of 2005.

GM had revenue of US$51.2 billion in the fourth quarter 2006,
compared with US$51.7 billion in the same period a year ago,
with the decline more than accounted for by the exclusion of
GMAC revenue starting Dec. 1, 2006.

The reported results for the fourth quarter 2006 include special
items totaling US$770 million after tax.  These are primarily
attributable to gains related to GMAC transaction-related items
and the sale of the GM desert proving ground property, partially
offset by costs related to previously announced GM restructuring
items.

                     GM Automotive Operations

Net income from global automotive operations for 2006 improved
by more than US$5.7 billion, totaling US$422 million on an
adjusted basis, excluding special items (reported net loss of
US$3.2 billion).  Adjusted net income for GM's automotive
operations in the fourth quarter 2006 was US$228 million
(reported net income of US$194 million), compared with an
adjusted loss of US$1.2 billion in the year-ago period.

GM sold 9.1 million vehicles worldwide in 2006.  For the second
consecutive year, unit sales outside of the U.S. surpassed
domestic sales with almost 5 million units, or 55 percent of
global volume.  GM Europe (GME), GM Asia Pacific (GMAP), and GM
Latin America, Africa and the Middle East (GM LAAM) all set
regional sales records, with GME exceeding 2 million units, GMAP
topping 1.25 million units, and LAAM surpassing 1 million units
for the first time.

GM North America (GMNA) posted a US$5 billion earnings
improvement in 2006, with an adjusted net loss of US$779 million
(reported net loss of US$4.6 billion).  In the fourth quarter of
2006, GMNA recorded its fourth consecutive quarter of more than
US$1 billion improvement in adjusted earnings.  GMNA had an
adjusted net loss of US$14 million in the fourth quarter 2006
(reported net income of US$50 million), versus an adjusted loss
of US$1.4 billion in the same quarter 2005.  The calendar year
improvement was realized despite a 207,000 unit reduction in
GMNA production to balance inventory with deliveries, and
reflects continued significant reductions in structural costs
related to health care, manufacturing and workforce attrition,
as well as positive sales mix and the impact of the company's
product and value focused sales and marketing strategy.

GM reduced structural costs in North America by US$6.8 billion
in 2006, exceeding its target of US$6 billion, and remains on-
track to deliver the previously announced US$9 billion of annual
structural cost savings in 2007(versus 2005 structural cost
levels).  GM's progress in globalizing its product development,
powertrain and manufacturing operations, combined with
aggressive GMNA turnaround actions, are driving these
significant structural cost reductions.  GM reduced its global
automotive structural cost from over 34 percent of revenue in
2005 to 30 percent of revenue in 2006, an impressive first step
toward GM's goal of cutting structural cost to 25 percent of
revenue by 2010.

"We made very significant progress in 2006 toward our 25 percent
structural cost goal," Mr. Wagoner said.  "At the same time, we
continue to invest heavily in future products, technology and
growth markets.  GM plans to increase its global capital
spending from US$7.5 billion in 2006, to between US$8.5 and US$9
billion in 2007 and 2008."

GM's commitment to quality and design leadership was reinforced
in 2006 with strong consumer and media reception to GM's newest
cars and trucks, including the Chevrolet Tahoe, GMC Yukon, and
Cadillac Escalade full-size utilities; GMC Sierra and Chevrolet
Silverado full-size pickups; the Saturn Aura midsize sedan; Opel
Corsa small car; and the Holden Commodore fullsize sedan.  In
addition, early public reaction to the Saturn Outlook and GMC
Acadia midsize crossovers, introduced late in 2006, has been
positive.

GME posted its first full year of profitability since 1999 with
adjusted earnings of US$227 million for 2006 (reported net loss
of US$225 million).  GME had an adjusted loss of US$8 million in
the fourth quarter 2006 (reported net loss of US$119 million),
compared to net income of US$5 million in the year-ago quarter.  
GME revenue in the fourth quarter 2006 was US$9 billion, up from
US$8.1 billion in the same quarter 2005.  Contributing to GME's
improved performance during the year was strong revenue growth
due to record volume of over 2 million units, and continued
structural cost reductions.

"The actions we've taken in Europe to reduce structural cost and
re-energize our product lineup is making a big impact on the
business," Mr. Wagoner noted.  "And our multi-brand approach in
Europe is really getting traction.  The Opel/Vauxhall brands are
strengthening, led by products like the all-new Corsa and
segment-leading Meriva and Zafira.  And, the Chevrolet brand
again achieved record sales, while Saab and Cadillac also
demonstrated strong growth.  And we're especially pleased with
our progress in Russia, where GM sales grew 73 percent in 2006."

GMAP delivered adjusted earnings of US$441 million in 2006
(reported net income of US$1.2 billion), compared with US$557
million in 2005, with the decline totally attributable to the
loss of Suzuki equity income in 2006, as a result of the
divestiture of most of GM's holdings in Suzuki Motor Corp.
For the fourth quarter of 2006, GMAP's adjusted earnings were
US$122 million (reported net income of US$135 million),
consistent with the same quarter 2005 earnings of US$124
million.  Record 2006 sales of GM Daewoo products contributed to
GM's continued strong performance in the region, headlined by
sales gains of 32 percent in China and 19 percent in Korea.

"The AP region remains the core of GM's global growth strategy.  
In 2006, GM advanced its leading position in China, again
improving its market share to almost 12 percent.  We also
announced plans to add a new assembly plant in India to take
advantage of opportunities in that important market, and we
continue to grow in Korea," Mr. Wagoner said.

GM's LAAM region delivered its best financial performance in 10
years with adjusted earnings of US$533 million in 2006 (reported
net income of US$490 million), an improvement of US$381 million
over 2005.  GMLAAM also recorded adjusted and reported fourth
quarter earnings of US$128 million, up from adjusted earnings of
US$63 million in the same quarter of 2005.  These improvements
were driven by record revenue and volume for the region, and
significant gains at GM do Brasil.

"By cost-effectively leveraging GM's products and resources from
around the world, GM LAAM has been able to take advantage of
growth opportunities throughout the region, achieving milestone
sales of over 1 million units and impressive revenue and profit
results," Mr. Wagoner said.

                               GMAC

On a standalone basis, GMAC Financial Services reported 2006 net
income of US$2.1 billion, compared with net income of US$2.3
billion in 2005.  GMAC's operating earnings for 2006, excluding
two significant items, amounted to US$2.0 billion, compared to
US$2.7 billion of operating earnings in 2005.

For the fourth quarter of 2006, GMAC had net income of
US$1.0 billion, up from US$112 million in the fourth quarter of
2005.  The 2006 fourth quarter results include a US$791 million
after-tax benefit related to deferred tax liabilities that GMAC
transferred to GM when GMAC converted to a Limited Liability
Company (LLC). Conversely, fourth quarter 2005 results included
the impact of goodwill impairment charges of US$439 million
after-tax.  Excluding the LLC benefit, GMAC operating earnings
for the fourth quarter 2006 were US$225 million, compared to
US$551 million in the year-ago period.

On November 30, 2006, GM closed the previously announced
transaction to sell 51 percent controlling interest in GMAC to
an investor consortium led by Cerberus Capital.  As a result of
the closing of the GMAC transaction, GMAC results through
November were fully consolidated in GM's reporting, and
December results were reflected on an equity income basis for
GM's remaining 49 percent interest.

After adjusting GMAC results for equity income in December,
dividends to GM on preferred stock and various transaction-
related items, GM reported an adjusted net loss of US$284
million associated with GMAC for the fourth quarter 2006, and
net income of US$1.5 billion for the calendar year.  Going
forward, GM will record GMAC results on an equity income basis.

Based on GMAC's results, GM will refund approximately US$1
billion to GMAC, in the form of a capital contribution, to
restore its adjusted tangible equity balance as of Nov. 30,
2006, to the US$14.4 billion level that was agreed upon in
conjunction with the 51 percent sale of GMAC.  The amount of the
refund reflects reduced tangible book value at Nov. 30, 2006,
principally caused by a deterioration in GMAC's Residential
Capital, LLC (ResCap) earnings, changes in GMAC deferred tax
balances and the restatement of prior financial results.

For additional details on GMAC 2006 fourth quarter and calendar-
year financial results, see the company's earnings release dated
March 13, 2007, on the company Web site at
http://www.gmacfs.com/

                        Cash and Liquidity

GM achieved positive adjusted operating cash flow for the fourth
quarter 2006 of approximately US$300 million, an improvement of
US$1.4 billion compared to the fourth quarter 2005.

Cash, marketable securities, and readily-available assets of the
Voluntary Employees' Beneficiary Association (VEBA) Trust
totaled US$26.4 billion at December 31, 2006, up from US$20.4
billion on September 30, 2006.  In addition to the impact of
favorable operating cash flow in fourth quarter, this reflects
the impact of distributions received from the closing of the
sale of the 51 percent interest in GMAC.

                      Financial Restatements

GM previously disclosed that it had understated its
stockholders' equity as of Dec. 31, 2001, and subsequent periods
by approximately US$500 million related to deferred tax
liabilities and taxation of foreign currency translation.  GM
confirmed a final adjustment to stockholders' equity as of
January 1, 2002, of US$245 million.

GM also previously disclosed it would be restating its financial
statements for 2002 through the third quarter of 2006 largely
due to hedge accounting.  The following chart provides a summary
of the impact of the restatements on reported net income for the
2002-2006 periods.

          (US$Ms) GM Reported Net Income (after-tax GAAP)

                      Q1-Q32006    2005    2004    2003    2002
                      ---------    ----    ----    ----    ----
Previously reported    (3,025)   (10,567) 2,804   3,859   1,574
Adjustments                97       150   (103)   (334)     161
Restated results       (2,928)   (10,417) 2,701   3,525   1,735

These results had no impact on cash flow for any of the restated
periods.

GM said it will file its annual report on Form 10-K with the
Securities and Exchange Commission today.

                    US$1 Billion GMAC Settlement

As reported yesterday in the Troubled Company Reporter, GM
agreed to pay approximately US$1 billion in settlement charges
to GMAC Financial Services by the end of the first quarter in
relation to a change in the lending arm's balance sheet, John D.
Stoll of The Wall Street Journal wrote.

The cash settlement is related to the impact that problems in
the subprime mortgage segment, which focuses on borrowers with
low credit scores, have had on GMAC's book value, WSJ said,
citing people familiar with the settlement.

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 5, 2006, GM completed the sale of a 51% interest in GMAC to
a consortium of investors led by Cerberus FIM Investors LLC and
including wholly owned subsidiaries of Citigroup Inc., Aozora
Bank Ltd., and The PNC Financial Services Group Inc.

The transaction was intended to preserve the mutually beneficial
relationship between GM and GMAC, while improving GMAC's access
to cost-effective funding.  In addition, the sale of the
controlling interest in GMAC was intended to provide significant
liquidity to GM that will support its North American turnaround
plan, finance global growth initiatives, and strengthen its
balance sheet.

                    About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 284,000
people around the world.  It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries.  GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.

                          *     *     *

In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006.  S&P said
the outlook is negative.

In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.


JUNIPER NETWORKS: CFO Robert Dykes & EVP Robert Sturgeon Resign
---------------------------------------------------------------
Juniper Networks Inc.'s Executive Vice President and Chief
Financial Officer, Robert Dykes, and Executive Vice President
for Service Layer Technology Group, Robert Sturgeon, will be
resigning in connection with the company's ongoing review of its
growth plans and requirements to achieve its desired scale.

Mr. Dykes has driven significant advances in streamlining
Juniper's manufacturing processes and has led the company's
finance, legal, IT, investor relations and manufacturing
organizations.  He will continue in his current role with
Juniper through the end of April.

Mr. Sturgeon has been instrumental in the development of
Juniper's customer service organization and in guiding the
company through the first phase of its enterprise business
strategy.  He will continue in his current role with Juniper
through the end of March.

The company said neither resignation was the result of any
disagreement on any matters relating to the company's
operations, policies or practices.

                     About Juniper Networks

Juniper Networks Inc. -- http://www.juniper.net/-- enables  
secure  and assured communications over a single IP network.  
The company's IP platforms enable customers to support many
different services and applications at scale.  The company has
sales offices in Australia, China, Hong Kong, Japan, Korea,
Malaysia, New Zealand, Singapore, Taiwan, Thailand, Vietnam and
India.

                          *     *     *

Standard & Poor's Rating Services placed ratings on Juniper
Networks Inc. including its 'BB' long-term and 'B-1' short-term
corporate credit ratings, on CreditWatch with negative
implications.


JUNIPER NETWORKS: Files Annual Report & Delayed SEC Form 10-Q
-------------------------------------------------------------
Juniper Networks, Inc., has filed with the Securities and
Exchange Commission its Annual Report on Form 10-K for the year
ended Dec. 31, 2006, as well as its previously delayed Quarterly
Reports on Form 10-Q for the second and third quarters of 2006.

These filings contain financial statements that were restated as
a result of the stock option review, including those required to
be restated for prior periods.  The company said its periodic
filings with the SEC are now current.

With these filings and additional submissions previously
delivered to NASDAQ, Juniper believes that it has now regained
compliance with the requirements for continued listing on the
NASDAQ Global Select Market; however, the company awaits
confirmation of compliance from NASDAQ.

Juniper's Consolidated Statements of Operations show:

              2nd Quarter      3rd Quarter       Year Ended
             Ended 6/30/06    Ended 9/30/06      12/31/06
             -------------    -------------    ---------------
Total
Revenues    US$567,469,000   US$573,567,000   US$2,303,580,000

Net Income
(Loss)      (1,206,456,000)      58,274,000     (1,001,437,000)

Juniper's Balance Sheets show:

                   6/30/06         9/30/06            12/31/06
                   -------         -------            --------
Current
Assets    US$2,057,049,000  US$2,294,941,000     $2,521,806,000

Total
Assets      7,040,271,000      7,205,848,000      7,368,395,000

Current
Debts         663,595,000        690,663,000        762,617,000

Total Debts   475,086,000        488,282,000        490,694,000

Stockholders'
Equity      5,901,590,000      6,026,903,000      6,115,084,000

Full-text copies of the company's financials are available for
free at:

   -- Second Quarter Ended June 30, 2006
      http://ResearchArchives.com/t/s?1b60

   -- Third Quarter Ended Sept. 30, 2006
      http://ResearchArchives.com/t/s?1b61

   -- Annual Report Ended Dec. 31, 2006    
      http://ResearchArchives.com/t/s?1b62

                     About Juniper Networks

Juniper Networks Inc. -- http://www.juniper.net/-- enables  
secure  and assured communications over a single IP network.  
The company's IP platforms enable customers to support many
different services and applications at scale.  The company has
sales offices in Australia, China, Hong Kong, India, Japan,
Korea, Malaysia, New Zealand, Singapore, Taiwan, Thailand and
Vietnam.

                          *     *     *

Standard & Poor's Rating Services placed ratings on Juniper
Networks Inc. including its 'BB' long-term and 'B-1' short-term
corporate credit ratings, on CreditWatch with negative
implications.


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

ANEKA TAMBANG: Forms Joint Venture for Tayan Alumna Project
-----------------------------------------------------------
PT Antam Tbk has formed a joint venture company to study the
feasibility of building a chemical grade alumina plant at Tayan,
West Kalimantan, Indonesia.  The formation of the joint venture
company follows the signing of the joint venture agreement of
the Tayan project in March 2006.

The formation of the joint venture company, called PT Indonesia
Chemical Alumina, was marked by the signing of the articles of
association by senior executives of Antam and its international
partners, Showa Denko KK of Japan, Straits Trading Amalgamated
Resources Private Limited of Singapore, and Marubeni Corporation
of Japan on February 26th, 2007 at Antam Head Office, Jakarta,
Indonesia.

Following this, the parties will move into finalization of loan
documents, all ancillary agreement, the selection of
Engineering, Procurement and Construction contractor and
updating the 2003 bankable feasibility study.

Based on the 2003 Bankable Feasibility Study completed for Antam
by Mizuho, the Tayan project will produce 300,000 tons of
chemical grade alumina per year.  These figures are not final
and are subject to revision during the updating of the
feasibility study.  The project is likely to be funded 35%
equity and 65% through debt.

Antam's share in this project is 49% with the other three
partners owning the remaining 51%, which consist of SDK 30%,
STAR 15% and Marubeni 6%.  However, Antam has an option to
increase its ownership to 51% in the future.

Antam expects construction to begin in late 2007 and commercial
operations to begin in 2010 to process the vast, high quality
bauxite reserves into chemical grade alumina, for sales under
offtake agreement to Japan and other countries including current
SDK chemical grade alumina customers and also to local sales
within Indonesia.

                      About Aneka Tambang

PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,  
processes, develops, and explores natural deposits.  The company
operates six mines.  They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold).  The company also operates a precious metal
refinery and a geology unit in Jakarta.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Dec. 4,
2006, that Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Indonesian state-owned mining
company PT Antam Tbk. to 'B+' from 'B'.  The outlook is stable.
At the same time, Standard & Poor's also raised to 'B+', from
'B', the rating on the senior unsecured notes issued by Antam
Finance Ltd. and guaranteed by Antam.

Moody's Investors Service gave Aneka Tambang a local currency B1
corporate family rating, and a B2 foreign currency bond rating.


CA INC: Partners with BEA Systems for Identity & Access Mgmt.
-------------------------------------------------------------
CA, Inc. and BEA Systems, Inc. revealed a partnership to further
streamline and simplify identity and access management across
the enterprise -- jointly helping customers reduce IT costs and
improve performance by combining best-of-breed Web single sign-
on, user management, and SOA Infrastructure.

BEA has chosen to strategically partner with CA for IAM, with
integration across the AquaLogic and WebLogic product families
to CA's leading IAM technology, specifically CA SiteMinder and
CA Identity Manager.  The two companies will validate the
existing integrations and collaborate to extend the integrations
for their joint customers.  In addition, CA has chosen BEA's
award-winning WebLogic Server as the application server for CA's
IAM technology where it plans to make additional investment to
extend current integration between the product lines to drive
improved performance.

"Identity and Access Management is critical within SOA as
applications become increasingly distributed," said Wai Wong,
executive vice president, products at BEA Systems.  "CA and BEA
together can enable customers to benefit from reduced
administration costs of their security architectures, as well as
provide increased IT efficiency and better business agility
through their application and SOA infrastructure."

The companies plan to conduct interoperability testing and
validations that can provide customers with improved performance
and reliability.  As part of the agreement, BEA and CA are
focusing investment in these areas:

Engineering and development: The two companies plan to validate
and further extend integration between CA SiteMinder and BEA
WebLogic and AquaLogic technologies, while also collaborating on
identity and access management standards.

Distribution: CA will include WebLogic Server Premium Edition
evaluation license with CA Identity Manager as the application
server of choice for CA IAM technology.

Marketing programs: The companies will implement marketing and
sales programs to communicate the value proposition of their
joint solutions to current and prospective customers and
proactively team together on customer opportunities.

"With the ongoing trend of abstracting identity and security
logic from the underlying applications, integration between CA's
IAM solution and BEA's application infrastructure will offer
customers the flexibility and control they need to deliver a new
generation of value-added services across the extended
enterprise," said Bilhar Mann, senior vice president and general
manager of CA's security management business unit.

In September, CA was named the worldwide market leader in IAM
software by IDC for the sixth consecutive year.  According to
IDC's report, "Worldwide Hardware Authentication and Identity
and Access Management 2005 Vendor Shares", CA continues to lead
the IAM market, with a 17.2 percent share and revenues exceeding
US$522 million.

                           About Ca Inc.

Headquartered in Islandia, New York, CA Inc. (NYSE:CA)
-- http://www.ca.com/-- is an information technology management  
software company that unifies and simplifies the management of
enterprise-wide IT.  Founded in 1976, CA serves customers in
more than 140 countries.  In Asia-Pacific, the company has
operations in Indonesia, Australia, China, Japan, Hong Kong,
India, Philippines and Thailand.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Feb. 7,
2007, that Moody's Investors Service comments that it is
maintaining the negative outlook for CA Inc. following the
company's fiscal third quarter 2007 earnings reported yesterday
evening.

TCR-AP noted "CA's fiscal third quarter results provide evidence
of its bookings and billings growth, reversing previous negative
trends" commented John Moore, VP/Senior Analyst.  "Moody's is
monitoring CA's negative rating outlook pending further evidence
of organic business growth" Moore added.

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 Software sectors this week,
the rating agency confirmed its Ba1 Corporate Family Rating for
CA, Inc.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$350 Million
   6.5% Senior
   Unsecured Notes
   due 2008               Ba1      Ba1     LGD4       54%

   US$1 Billion
   Senior Global
   Notes due 2011         Ba1      Ba1     LGD4       54%

   US$460 Million
   Convertible
   Senior Unsecured
   Notes due 2009         Ba1      Ba1     LGD4       54%

Standard & Poor's Rating Services affirmed its 'BB' corporate
credit and senior unsecured debt ratings on CA Inc., and removed
them from CreditWatch where they were placed on July 5, 2006,
with negative implications.  S&P said the outlook is negative.


DIRGANTARA INDONESIA: Bids in Tender held by Malaysian Air Force
----------------------------------------------------------------
PT Dirgantara Indonesia is competing in the tender for four
personnel aircraft to be held by the Malaysian Air force, Xinhua
News reports.

According to the report, among the company's fierce competitors
are British Aerospace and Spain's CASA.

The report, citing Bisnis Indonesia, says that Dirgantara relays
on the US$20 million propeller plane CN-235, eight of which have
been in service for both civilian and military uses.

The company is also reportedly waiting for the Thai government's
decision over the purchase of 10 CN-235s.

                   About Dirgantara Indonesia

Headquartered in Bandung, Indonesia, PT Dirgantara Indonesia
-- http://www.indonesian-aerospace.com/-- is one of the  
indigenous aerospace companies in Asia with core competence in
aircraft design, development and manufacture of civilian and
military regional commuter aircraft.  In its production line,
Dirgantara Indonesia has delivered more than 300 units of  
aircraft and helicopters, defense system, aircraft components
and other services.

According to press reports, the company was not able to fully
recover from the 1998 Asian financial crisis, and has sought
government help to turn its business around.  It has urged the
government to support the industry by purchasing aircraft from
PT DI, and is currently marketing its products to neighboring
countries in the region.

The Troubled Company Reporter - Asia Pacific reported on
September 13, 2006, that the Indonesian Government intends to
provide IDR40 billion in bailout funds to Dirgantara Indonesia.


FOSTER WHEELER: Subsidiary Wins IOCL Contract for Delayed Coker
---------------------------------------------------------------
Foster Wheeler Ltd.'s subsidiary Foster Wheeler USA Corporation,
part of its Global Engineering and Construction Group, has been
awarded a contract by Indian Oil Corporation Limited to provide
a license and basic engineering package for a new delayed coker.
The 3.7 million tonnes per annum delayed coker, which will be
based on Foster Wheeler's Selective Yield Delayed Coking
process, forms part of IOCL's residue upgrading project at its
Gujarat refinery in India.

The terms of the award, which will be included in the company's
first-quarter 2007 bookings, were not disclosed.

"We are extremely pleased that IOCL has selected our leading
SYDEC(SM) technology," said Troy Roder, president and chief
executive officer of Foster Wheeler USA Corporation.  "India is
a key strategic market for Foster Wheeler and we look forward to
working with IOCL on this important upgrading project."

Foster Wheeler's SYDEC(SM) process is a thermal conversion
process used by refiners worldwide to upgrade heavy residue feed
and process it into high value transport fuels.  The SYDEC
process achieves maximum clean liquid yields and minimum fuel
coke yields from high sulfur residues.  By installing a SYDEC
unit, a refinery owner is able to process heavier crudes, which
sell at a discount to the benchmark light, sweet crudes, thereby
allowing the owner to receive the benefit of increased refining
margins.

                      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 TIRE: Fitch Affirms 'B' Issuer Default Rating
------------------------------------------------------
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company and revised the Rating Outlook to Stable from
Negative.

   --Issuer Default Rating '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';

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

Goodyear Dunlop Tires Europe B.V.

   --EUR505 million European secured credit facilities 'BB/RR1'

At Dec. 31, 2006, GT had approximately US$7.2 billion of debt
outstanding, prior to a paydown of bank debt in January.

The revision to a Stable Outlook reflects Fitch's expectation
for further improvement in GT's operating profile as it recovers
from the labor strike and continues to implement its cost-
savings plan.  The settlement of the strike at the end of 2006
also served to mitigate concerns about further deterioration in
GT's capital structure.  Increases in GT's debt during 2006
provided funds to cover costs of the strike and the
establishment of a Voluntary Employees' Beneficiary Association
trust for US$1 billion.  The VEBA is subject to government
approval and will be funded by cash and up to US$300 million of
stock.  Ongoing rating concerns include high levels of debt that
increased temporarily to US$7.2 billion at the end of 2006 from
US$5.4 billion at the end of 2005.

In addition, GT faces significant cash requirements that could
contribute to negative cash flow in 2007.  These requirements
include pension contributions, capital expenditures, an increase
in working capital requirements as GT rebuilds inventory, and
debt and interest payments.  Cash flow could improve in 2008
when GT plans to close the Tyler Texas plant and as it realizes
additional cost savings.  GT also expects domestic pension
contributions to decline in 2008.  Other rating concerns include
an improving but still high cost structure in North America,
high raw material costs, weak demand in North America, and
competitive pricing in certain other markets.

These concerns are partly offset by ongoing operating cost
savings and from annual cash savings estimated by GT at US$145
million from the transfer of OPEB liabilities to the VEBA trust.
GT's efforts to rationalize its operations and build stronger
marketing capabilities were partly reflected in its 2006 results
that included record sales of US$20 billion.  Improved pricing
and product mix contributed to a 7% increase in revenue per tire
and helped offset the negative impact on revenue from lower tire
unit sales.  Operating profit was significantly affected by
strike costs of approximately US$361 million in 2006, and GT
estimates additional strike-related costs in 2007 will be US$205
million-US$240 million.

Liquidity at the end of 2006 included cash balances of US$3.9
billion, part of which was used in January 2007 to pay down
US$873 million on GT's US$1.5 billion first lien credit
facility.  Remaining cash will be available to help fund the
VEBA trust, pension contributions and capital expenditures of
US$750 million-US$800 million.  GT also had US$660 million of
current debt at the end of 2006.  Liquidity could potentially be
strengthened from an eventual sale of the Engineered Products
business and from any issuance of common shares.  Cash proceeds
from such sources, together with any improvement in operating
cash flow, could support GT's long-term plan to reduce leverage
substantially from current levels.

                          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.


KRONOS INT'L: Parent Posts US$41.2-MM Net Income for 4th Quarter
----------------------------------------------------------------
Kronos Worldwide, Inc., the parent company of Kronos
International, reported net income for the fourth quarter of
2006 of US$41.2 million, or US$.84 per diluted share, compared
with net income of US$8.5 million, or US$.17 per diluted share,
in the fourth quarter of 2005.  For the full year of 2006,
Kronos reported net income of US$82.0 million, or US$1.67 per
diluted share, compared with net income of US$71.5 million, or
US$1.46 per diluted share, for the full year of 2005.

Net sales of US$298.4 million in the fourth quarter of 2006 were
US$2.6 million, or 1%, lower than the fourth quarter of 2005.
Net sales of US$1.3 billion for the full year of 2006 were
US$82.7 million, or 7%, higher than the full year of 2005.  Net
sales decreased in the fourth quarter of 2006 primarily due to
lower TiO2 sales volumes, partially offset by the favorable
effect of fluctuations in foreign currency exchange rates, which
increased sales by approximately US$12 million.  For the full
year, net sales increased due to higher TiO2 sales volumes and
the favorable effect of fluctuations in foreign currency
exchange rates, which increased sales by approximately US$2
million.  The Company's average TiO2 selling prices for both the
fourth quarter and full year of 2006 were comparable to those
for the respective periods of 2005.  The table at the end of
this release shows how each of these items impacted the overall
increase in sales.

The Company's TiO2 segment profit for the fourth quarter of 2006
was US$39.6 million compared with US$34.4 million in the fourth
quarter of 2005, and was US$151.3 million for the full year of
2006 compared with US$182.2 million for the full year of 2005.
Segment profit increased in the fourth quarter of 2006 as the
favorable effect of higher production volumes was partially
offset by lower TiO2 sales volumes, higher manufacturing costs,
particularly raw materials and energy costs, and the unfavorable
effects of fluctuations in foreign currency exchange rates,
which decreased segment profit by approximately US$2 million.  

In addition, segment profit in the fourth quarter of 2006
includes income of US$1.8 million for proceeds of the Company's
business interruption insurance claim related to Hurricane Rita.
Full year segment profit decreased as the favorable effects of
higher sales and production volumes were more than offset by the
unfavorable effect of higher raw materials and energy costs and
the effect of fluctuations in foreign currency exchange rates,
which decreased segment profit by approximately US$20 million.

The Company's fourth quarter 2006 TiO2 sales volumes decreased
5% from the fourth quarter of 2005, as higher volumes in Europe
were more than offset by the effect of lower volumes in all
other markets.  TiO2 sales volumes for the full year 2006 were a
new record for Kronos and increased 7% compared to the full year
2005, with higher sales volumes in the US, Europe and export
markets offsetting the effects of lower sales volumes in Canada.
The Company's TiO2 production volumes were 10% and 5% higher in
the fourth quarter and full year of 2006, respectively, as
compared to the same periods in 2005, with operating rates at
near full capacity in all periods.  The Company's TiO2
production volumes in 2006 were a new record for Kronos for the
fifth consecutive year.  The Company's finished goods
inventories at December 31, 2006 represented approximately 2
months of average sales.

The Company's results for the full year of 2005 include a second
quarter securities transaction gain of US$5.4 million related to
a gain on the sale of the Company's passive interest in a
Norwegian smelting operation.

As previously reported, in April 2006 the Company's wholly-owned
subsidiary, Kronos International, Inc. issued an aggregate of
euro 400 million principal amount of new 6.5% Senior Secured
Notes due April 2013.  KII used the proceeds from the issuance
of the 6.5% Senior Secured Notes to redeem all of its 8.875%
Senior Secured Notes in May 2006 at 104.437% of the aggregate
principal amount of EUR375 million.  The Company recognized a
US$22.3 million pre-tax charge in the second quarter of 2006
related to the early extinguishments of the 8.875% Senior
Secured Notes.  Other interest income increased for the full
year of 2006 due primarily to the interest earned in the second
quarter from the net proceeds of the new 6.5% Senior Secured
Notes which were held in escrow for approximately one month
until the 8.875% Senior Secured Notes were redeemed.

The Company's effective income tax rate varies significantly
from the U.S. statutory federal income tax rate in 2006 due
primarily to an aggregate net income tax benefit of US$34.9
million, or US$.71 per diluted share, related to the net effect
of the withdrawal of certain income tax assessments previously
made by the Belgian and Norwegian tax authorities, the favorable
resolution of certain income tax audit issues related to the
Company's German and Belgian operations, the unfavorable
resolution of certain other income tax issues related to the
German operations, an increase in the Company's income tax
contingency reserve principally related to ongoing income tax
audits in Germany and the enactment of a reduction in the
Canadian federal income tax rate.  The Company's provision for
income taxes in 2005 includes an aggregate non-cash income tax
expense of US$6.0 million, or US$.13 per diluted share, related
to the effect of developments in certain of the Company's non-
U.S. income tax audits.

Effective December 31, 2006 the Company adopted a new accounting
standard related to planned major maintenance expense.  Under
the new standard, the Company no longer accrues the cost of
planned major maintenance expense in advance but instead
recognizes the cost of planned major maintenance when incurred.
The new standard is adopted retroactively, and accordingly the
Company's net income in 2005 is approximately US$.4 million, or
US$.01 per diluted share, higher than previously reported.

                    About Kronos International

Kronos International Inc. -- http://www.kronostio2.com/-- is a  
wholly owned subsidiary of Kronos Worldwide, Inc., headquartered
in Dallas, Texas and produces titanium dioxide (TiO2) pigments
in Europe.  It has sales offices in the Asia Pacific, including:
Australia, Indonesia, Japan, Korea and the Philippines.

                          *     *     *

On Nov. 8, 2006, 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. chemical and allied
products sectors, the rating agency confirmed its B1 Corporate
Family Rating for Kronos International, Inc. as well as the B2
rating on the Company's EUR400 million Senior Secured Notes due
2013.  Moody's also assigned an LGD5 rating to those debentures,
suggesting note holders will experience a 75% loss in the event
of a default.

Standard & Poor's Ratings Services lowered its corporate credit
rating on Valhi Inc. and its indirect subsidiary Kronos
International Inc. to 'BB-' from 'BB'.  At the same time,
Standard & Poor's lowered its rating on Kronos' EUR400 million
senior secured notes issue due 2013 to 'B' from 'B+'.  All
ratings remain on CreditWatch with negative implications, where
they were placed earlier this year in connection with an adverse
verdict in a Rhode Island lead pigment lawsuit.


METSO OYJ: Supplies EUR8-Mil. Lime Calcining Plant to Graymont
-------------------------------------------------------------
Metso Minerals, a unit of Metso Oyj, will supply a lime
calcining plant to Graymont for its Cricket Mountain lime plant
in Utah, U.S.A.

The delivery will be completed by the end of this year.  The
value of the order is approximately EUR8 million.  The order
comprises a lime calcining plant with a Low Pressure Drop (LPD)
preheater system as well as erection and commissioning services.

When the delivery is complete, Cricket Mountain lime plant's
production of high quality quicklime will increase from current
annual production of around 900,000 tons to 1,300,000 tons. The
plant is one of the largest lime plants in the western U.S.A.

Graymont is the third largest producer of lime in U.S.A.

                           About Metso

Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj
--http://www.metso.com/-- is a global engineering and  
technology corporation with 2005 net sales of around EUR4.2
billion.  Its 22,000 employees in more than 50 countries serve
customers in the pulp and paper industry, rock and minerals
processing, the energy industry and selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.

                        *    *    *

As of Feb. 9, Metso Oyj carries a 'BB+' long-term and 'B' short-
term corporate credit ratings and 'BB' senior unsecured debt
rating from Standard and Poor's.


NUTRO PRODUCTS: Reschedules Live Conference Call to March 29
------------------------------------------------------------
Nutro Products, Inc. will reschedule its live conference call
from March 28, 2007 at 2:00 p.m. PDT to March 29, 2007 at 2:00
p.m. PDT. Nutro Products, Inc. will discuss the financial
results for fiscal year ended December 30, 2006.  

Investors interested in participating in the call should e-mail
Nutro Products' Investor Relations Department at
http://IR@nutroproducts.com

If you participated in Nutro Products' second quarter or third
quarter conference call The Company will e-mail you the
necessary information for the fiscal year-end conference call.

                      About Nutro Products

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

The Troubled Company Reporter - Asia Pacific reported on
Oct. 18, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. Consumer
Products sector, the rating agency confirmed its B2 Corporate
Family Rating for Nutro Products, Inc.

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

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

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

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

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


PERTAMINA: Shows Interest in Chevron Rapak & Ganal Oil Blocks
-------------------------------------------------------------
PT Pertamina (Persero) is interested in acquiring at least 10%
of shares in Chevron's Rapak and Ganal oil blocks in the deep
seas off East Kalimtan, Antara News reports.

The report notes that Chevron owns 80% of the shares in the
blocks and ENI SpA owns the remaining 20%.

The Ganal Block covers the Gehem and Gendalo gas fields while
the Rapak Block includes the Ranggas gas field, the report
points out.

According to the report, Pertamina Deputy Director for Upstream
Business Tri Siwindono said that as part of regulations, they
will still have to wait for approval of the plan of development
before buying shares in the blocks.  The two blocks are expected
to start production in 2013.

                         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.


PERTAMINA: Subsidiary Incurs US$3.1-Million Loss in Bojonegro
-------------------------------------------------------------
PT Pertamina (Persero)'s subsidiary, P.T. Pertamina EP Cepu
suffered a loss of 60,000 barrels worth about US$3.12 million
due to selling of crude oil, produced traditionally by locals in
Bojonegoro districts, to other parties in the past eight months,
Antara News reports.

According to the report, Pertamina EP Spokesperson Anggadewi
Widyastuti said that Bojonegoro's traditional crude oil miners
had stopped delivering their 250/day production to the company
since August 2006.

Ms. Widyastuti said that Pertamina will review its four year
work contract, with regard to their Bojonegoro crude oil
exploitation, with the Bogo Sasono village cooperatives and try
to formulate a new suitable agreement that will be beneficial to
both parties.

                         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.


PERUSAHAAN GAS: To Exploit Coal Bed Methane With Bukit Asam
-----------------------------------------------------------
PT Perusahaan Gas Negara signed on March 11 a cooperation
agreement with PT Bukit Asam to exploit coal bed methane
resources in South Sumatra to meet demand from power plants,
Antara News reports.

Under the deal, Bukit Asam will exploit its coal bed methane
resources and distribute them to power plants through Perusahaan
Gas' pipelines, the report says citing Bukit Asam Director
Milawarma.

The report adds that the partnership opens business potentials
for Bukit Asam as its coal methane resources can meet demand
from a 230 MW power plant for 200 years.

                      About Perusahaan Gas

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

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

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

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

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

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

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


PERUSAHAAN LISTRIK: Seeks Partners for Hydroplant Project
---------------------------------------------------------
PT Perusahaan Listrik Negara seeks private investors for a
partnership to build a 250-MW hydro power plant in South
Kalimantan to reduce its dependence on more expensive fuel-fired
plants, The Jakarta Post reports.

According to the report, PLN Business Unit Oversight and Civil
Engineering Head Kabul Sutijono Sugeng said that estimated
required investment for the project amounts to US$250 million.

On March 21, Perusahaan Listrik will sign power purchase
agreements with seven local firms for the development of seven
mini hydropower projects in North Sumatra, Bengkulu, Jambi and
Sulawesi that has a total investment of US$98,000, the report
notes.

The company also signed a power purchase agreement with
Norwegian energy firm KF Gruppen for a 10-MW hydro power plant
in South Sulawesi, the report adds.

                    About Perusahaan Listrik

Indonesian state utility firm PT Perusahaan Listrik Negara
-- http://www.pln.co.id/-- transmits and distributes  
electricity to around 30 million customers, roughly 60% of
Indonesia's population.  The Indonesian Government decided to
end PLN's power supply monopoly to attract independents to build
more capacity for sale directly to consumers, as many areas of
the country are experiencing power shortages.

PLN posted a IDR4.92-trillion net loss in 2005, against a net
loss of IDR2.02 trillion in 2004.

The Troubled Company Reporter - Asia Pacific reported on Feb.
06, 2007, that Moody's Investors Service has changed the outlook
to positive from stable for the B1 corporate family rating and
senior unsecured bond rating of PT Perusahaan Listrik Negara.

The rating action follows Moody's decision to change the outlook
of Indonesia's B1 foreign and local currency government bond
ratings to positive from stable.

Standard & Poor's Ratings Services also assigned its 'BB-'
foreign currency rating and 'BB' local currency rating to PLN.
The outlook on the ratings is stable.  At the same time,
Standard & Poor's assigned its 'BB-' issue rating to the
proposed U.S. dollar senior unsecured notes issued by PLN's
wholly owned subsidiary, Majapahit Holding B.V.


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

AICHI BANK: Posts JPY2.6BB Net Income for Year to Mar. 31, 2006
---------------------------------------------------------------
Aichi Bank, Ltd., reported a net income of JPY76.98 billion for
the year ended March 31, 2006, as compared with a net income of
JPY7.03 billion for the year ended March 31, 2005.    

The bank's balance sheet as of March 31, 2006, showed total
assets of JPY2.58 trillion, a little more than the total assets
of JPY2.49 trillion as of Mar. 31, 2005.

The bank's March 31, 2006 balance sheet also showed total
liabilities of JPY2.40 trillion, versus the total liabilities of
JPY2.34 trillion as of Mar. 31, 2005.

Aichi Bank's shareholders' equity for the year ended Mar. 31,
2006, was at JPY179.07 billion, compared with the
JPY154.43 billion equity recorded as of Mar. 31, 2005.       

A full-text copy of Aichi Bank Ltd's financial report for fiscal
year ended Mar. 31, 2006, is available for free at:

http://bankrupt.com/misc/aichi2006report.pdf

                  About Aichi Bank, Ltd.

Headquartered in Nagoya, The Aichi Bank, Ltd.  --
http://www.aichibank.co.jp/-- is involved in the banking,   
securities, trust contract and leasing services in the Tokai
region of Japan.

Fitch Ratings gave Aichi Bank a 'C' individual rating on
Nov. 28, 2005.


ALL NIPPON: Grounds Bombardier Fleet Due To Latest Plane Mishap  
---------------------------------------------------------------
All Nippon Airways grounded its entire fleet of Bombardier
planes and the government ordered emergency inspections after
the front landing gear on one failed to descend, forcing the
aircraft to make an emergency landing with 60 people on board,
The Associated Press says.

The report says that no passengers were injured when the
Bombardier DHC-8 turboprop landed on its rear wheels and then
gently eased its nose to the runway.  Sparks flew from the
bottom of the fuselage as the plane stopped.   

The report recounts that the accident was the latest in a series
of problems with ANA's fleet of Canadian-made Bombardier
aircraft.  ANA said that it would ground its 13 Bombardiers for
inspection and service will not resume until the aircrafts are
proven safe.

Bloomberg states that there have been incidents when the landing
gear on the same type of plane in ANA's fleet failed to work
properly nine times, forcing pilots to manually override the
automatic system.

The report, citing Bombardier spokesman Marc Holloran, says that
the accident was the first-ever belly landing of one of
Bombardier's Q400 turboprops, 36 Q-Series aircraft are in Japan.

"The plane has a very good safety record since it was introduced
in service in 2000.  We can't comment on the likely cause in
this particular incident.  We will be sending engineering and
product safety personnel to Japan," Bloomberg quotes Mr.
Holloran.

AP recalls that in February 2006, a pilot aborted an initial
landing attempt after all three sets of an ANA Bombardier
plane's wheels failed to deploy.  The landing gear was deployed
manually and the plane landed with no injured passengers or
crew.  

The report says that another emergency landing incident happened
to two ANA-operated Bombardier airliners moments after take off
at Osaka Airport.  One aircraft experienced heating system
issues while the other plane experienced glitches in its door
locking system.    

According to AP, in the latest accident, the plane, carrying 56
passengers and four crew members, circled for nearly two hours
over Kochi airport in western Japan as it tried to extend its
front wheels and negotiate an emergency landing.  The plane was
sprayed with fire retardant chemicals after passengers were
rushed to safety.      

The report points out that Executive Vice President Shin
Nagase's apology on Tuesday was the second made over
ANA's airplane mishaps -- the first apology came during ANA's
shareholder's meeting in June 2006, at a time when ANA had 11
Bombardiers in its fleet and had placed orders for 14 more.

AP states that, nationwide, there have been 77 reported
incidents -- from faulty lighting to landing gear failures --
with Bombardier planes since 2003.  

                     About All Nippon Airways

Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline  
company in terms of revenue.  The company, which was founded in
1952, provides these services:

   1. Scheduled air transportation business;

   2. Nonscheduled air transportation business and business
      utilizing aircraft;

   3. Business of buying, selling, leasing and maintenance of
      aircraft and aircraft parts; and

   4. Aircraft transportation ground support business, including
      passenger boarding procedures and loading of hand baggage.

The airlines flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.

The Troubled Company Reporter - Asia Pacific reported on
June 13, 2006, that Fitch said the credit quality gap between
Japan's top two airlines continues to widen with All Nippon
Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from
market improvements, while its rival, Japan Airlines Corporation
-- rated 'BB-'/Stable -- continues to be grounded by internal
woes.

The TCR-AP also stated on May 30, 2006, that Moody's Investors
Service has upgraded to Ba1 from Ba3 the senior unsecured debt
ratings of All Nippon Airways Co., Ltd.  The rating action
concludes the review initiated on March 3, 2006.  The rating
outlook is stable.

On May 3, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability,
thanks to cost reductions efforts as well as a stronger
competitive position.


ATTACHMATE CORP: Fitch Rates Proposed US$500 Mil. Facility at B
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Seattle, Washington-based Attachmate Corp., and
revised its outlook to stable from negative.

The outlook revision reflects the company's successful
cost-cutting efforts and improved profitability.

"At the same time, we assigned our 'B' bank loan rating and '2'
recovery rating to the company's proposed new US$500 million
first-lien credit facility, indicating that lenders can expect
substantial (80-100%) recovery of principal in the event of
payment default," said Standard & Poor's credit analyst David
Tsui.

Standard & Poor's assigned its 'CCC+' bank loan rating and '5'
recovery rating to the proposed US$275 million second-lien term
loan, indicating that lenders can expect negligible (0-25%)
recovery of principal in the event of payment default.  All
ratings are based on preliminary offering statements and are
subject to review upon final documentation.  Funds will be used
to refinance existing debt and to fund a US$280 million dividend
to its parent.

The ratings reflect Attachmate's narrow product portfolio in
mature markets, a short operating history at current
profitability levels, and increasing leverage because of the
proposed, debt-financed dividend.  These factors partly are
offset by good market share in its niche market of host access
and integration software solutions and successful cost cutting
efforts in its consolidation strategy.  Attachmate is a software
services provider specializing in host access and integration
solutions and security and performance management.  Revenues
were about $370 million for the 12 months ended Dec. 31, 2006.

                  About Attachmate Corporation

Based in Seattle, Washington, Attachmate Corporation --
http://www.attachmate.com/-- is a software services provider  
specializing in host access and integration solutions.

Attachmate has offices in Japan, Sweden and Brazil.


DELPHI CORP: Posts Claims Transfers Totaling More Than US$200MM
---------------------------------------------------------------
Papers filed with the United States Bankruptcy Court for the
Southern District of New York disclosed that more than
US$200,000,000 of claims changed hands for the period from
Sept. 1, 2006, to Feb. 28, 2007, in Delphi Corporation and its
debtor-affiliates' chapter 11 cases.

Among the investors who bought claims are:

                                             No. of
                                             Claims  Aggregate
   Investor                                  Bought Claim Amount
   --------                                  ------ ------------
   3V Capital Master Fund Ltd.                   2  US$1,863,119
   AFI, LLC                                      8       175,179
   Amrock Investments, LLC                      46     2,741,311
   Applied Data Systems, Inc.                    1       147,550
   APS Clearing, Inc.                            3     3,393,480
   Argo Partners                               105     3,061,332
   ASM Capital, L.P.                            46       633,337
   Bank of America, N.A.                         1       101,107
   Bear Sterns Investment Products Inc.          7     9,447,691
   Capital Markets                              15       467,952
   CF Special Situation Fund 1 LP                2     1,505,993
   Contrarian Funds, LLC                        45     8,012,407
   Credit Suisse                                 1     7,500,000
   Credit Suisse International                   1     9,078,756
   Debt Acquisition Company of America V, LLC   81       118,015
   Deutsche Bank Securities Inc.                 8    13,378,530
   Fair Harbor Capital, LLC                     83       526,933
   Goldman Sachs Credit Partners LP             15    21,284,893
   Hain Capital Holdings, LLC                   62       327,198
   HTC Global Services Inc.                      1        27,847
   JPMorgan Chase Bank, N.A.                     9    12,601,283
   Longacre Master Fund, Ltd.                  113    31,542,860
   Madison Investment Trust-Series 38           99     3,357,468
   Madison Niche Opportunities, LLC              2        16,077
   Merrill Lynch Credit Products, LLC            4     4,346,640
   Midtown Claims LLC                            2       428,692
   Onyx Environmental Services                   1         3,359
   Ore Hill Hub Fund Ltd.                        3       706,232
   Redrock Capital Partners, LLC                38       163,485
   Revenue Management                           62     3,478,979
   Sierra Liquidity Fund                        39       174,978
   SPCP Group LLC                               15    24,966,346
   Special Situations Investing Group, Inc.      7    12,444,679
   Stonehill Institutional Partners, L.P.       15     4,897,768
   The Bank of Tokyo-Mitsubishi UFJ, Ltd.        3     8,098,039
   TPG Credit Opportunities Fund, L.P.          12    17,632,025
   Trade-Debt.net                               51        31,359
   Xerion Partners II Master Fund Limited        1     2,004,716

The largest claim transfers include those between these parties:

                                                           Claim
Transferee              Transferor                       Amount
----------              ----------                       ------
3V Capital              SPCP Group                 US$1,641,742
APS Clearing            Loepold Kostal GmbH & Co.     2,004,716
APS Clearing            D & R Technology LLC          1,347,828
Bear Sterns             CTS Corporation               1,950,968
Bear Sterns             Futaba Corp. of America       4,145,064
Bear Sterns             Trans Tron Ltd. Inc.          2,240,718
CF Special Situation    APS Clearing                  1,260,331
Contrarian Funds        JPMorgan                      2,492,426
Credit Suisse           SPCP Group                    7,500,000
Credit Suisse Int'l     Credit Suisse                 9,078,756
Deutsche Bank           Hitachi Automotive Products   5,721,969
Deutsche Bank           Tokico (USA) Inc.             1,708,509
Deutsche Bank           N.D.K. America, Inc.          1,403,132
Deutsche Bank           Sony Ericsson Mobile Comm.    1,373,431
Deutsche Bank           Clarion Corp. of America      2,115,405
Goldman Sachs           Daishinku (America) Corp.     1,580,234
Goldman Sachs           SPCP Group                    5,430,121
Goldman Sachs           Deutsche Bank                 5,694,400
Goldman Sachs           Madison Investment            2,246,698
Goldman Sachs           Madison Investment            2,576,441
Goldman Sachs           Madison Niche                 1,735,795
JPMorgan Chase Bank     Tokyo-Mitsubishi Bank         4,041,686
JPMorgan Chase Bank     Judd Wire, Inc.               1,363,728
JPMorgan Chase Bank     SPCP Group                    2,492,426
Latigo Master Fund      Deutsche Bank                 1,373,431
Longacre Master Fund    Compuware Corp.               1,500,000
Longacre Master Fund    A. Berger Precision Ltd.      1,059,143
Longacre Master Fund    Special Situations            1,000,000
Longacre Master Fund    ATS Automation Tooling Sys    1,983,000
Longacre Master Fund    ATS Ohio Inc.                 1,621,059
Longacre Master Fund    Tennessee Valley Authority    1,268,394
Madison Investment      Premier Manufacturing         1,179,772
Merrill Lynch           SPCP Group                    2,752,068
Merrill Lynch           SPCP Group                    1,377,687
SPCP Group              Panasonic Automotive Systems  8,000,000
SPCP Group              TCS America                   2,696,313
SPCP Group              Alumax Mill Products, Inc.    2,332,387
SPCP Group              ON Semiconductor Components   5,764,040
SPCP Group              Furukawa Electric N. America  4,756,206
Special Situations      JPMorgan                      4,041,686
Special Situations      Merrill Lynch                 1,377,687
Special Situations      Merrill Lynch                 2,752,068
Stonehill               Tal-Port Industries LLC       1,792,207
Tokyo-Mitsubishi Bank   Cataler North America Corp.   4,041,686
TPG Credit              Solectron Corporation         5,652,116
TPG Credit              JPMorgan                      2,351,518
TPG Credit              JPMorgan                      2,760,477
TPG Credit              AB Automotive Inc.            1,428,629
TPG Credit              Solectron Corporation         2,198,045
Xerion Partners II      APS Clearing                  2,004,716

                    About Delphi Corporation

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

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


DELPHI CORP: Judge Grants Shareholders Access to Delphi Docs
------------------------------------------------------------
The Honorable Gerald Rosen of the U.S. District Court for the
Eastern District of Michigan has permitted Delphi Corporation
shareholders to examine sensitive documents, which Delphi
provided to the U.S. Securities and Exchange Commission, the
Department of Justice, and other federal agencies in connection
with numerous financial fraud lawsuits filed against the company
and certain of its former executives, Margaret Cronin Fisk of
Bloomberg News reports.

The Delphi shareholders filed a class action lawsuit in the
Michigan District Court against Delphi and its officers and
directors in March 2005 after the company reported a
US$200,000,000 overstatement in 2000 cash flow from operations
and a US$61,000,000 overstatement in 2001 pre-tax income.  
Among the Delphi executives charged by the shareholders were
former Chief Executive Officer J.T. Battenberg III and former
Chief Financial Officer Alan Dawes.

Delphi spokeswoman Lindsey Williams told Bloomberg News that the
company "will abide by the terms of the order and provide the
necessary documents."  No timetable for Delphi to provide the
documents has been set.

                   About Delphi Corporation

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

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


FORD MOTOR: Aston Martin CEO Vows to Make it World's Number One
---------------------------------------------------------------
Aston Martin CEO Ulrich Bez revealed plans to make the famous
marquee "the number one prestige car company in the world" after
Ford Motor Company sold it to an investor consortium, the
Financial Times states.

As reported in the TCR-Europe on March 13, Ford has entered into
a definitive agreement to sell Aston Martin, its prestigious
sports car business, to a consortium comprised of David
Richards, John Sinders, Investment Dar, and Adeem Investment
Co., for GBP479 million (US$925 million).

Analysts say Aston is in good hands, as it will continue to be
led by a strong management team with Mr. Bez at the helm.  In
addition, the luxury car segment, of which Aston is a part, is
raking in more money than volume manufacturers, in spite of the
car industry's crisis, FT relates.

According to the report, one more thing working in Aston's favor
is its robust dealership network, which has steadily grown from
60 to 225 over the past few years.  The brand further plans to
expand in metropolitan centers in Moscow, St. Petersburg,
Shanghai, and Beijing.  Aston will also introduce a new model --
the Rapide -- a four-door sports coupe with a GBP180,000 tag
price, expected to enter production by 2010.

However, analysts are concerned that new manufacturing platforms
may cost the new owners up to US$1 billion (EUR758 million) due
to the car industry's high development costs, FT reveals.

Aston must invest heavily in cleaner engine technology as well,
in the wake of stricter regulations of automobile emissions.  In
this regard, Ford has expressed its desire to continue supplying
engines to the ultra-luxury marquee, FT adds.

                     About Ford Motor Co.

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

The company also has operations in Japan.

                          *     *     *

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

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

On Dec. 5, 2006, Moody's Investors Service assigned a Caa1,
LGD4, 62% rating to Ford Motor Company's US$3 billion of senior
convertible notes due 2036.


JAPAN AIRLINES: Reports Group Traffic Data For January 2007  
-----------------------------------------------------------
Japan Airlines Corp.'s group flight operation data showed that
the group's number of passengers rose to 71.7% or 1,116,250 in
January 2007.  Revenue seat kilometers also increased to 89.8%
or 5,023,051 kilometers in January 2007.

In terms of domestic flight operations, the JAL group reported
23,953 domestic flights, 1,397 delayed flights, 254 cancelled
flights, 25 diverted flights, and 11 flights that returned to
their departure airports for January 2007.  Internationally, the
airline group served 1145 flights, 132 delayed flights and two
diverted flights.

JAL Group's total domestic passenger traffic reports show that
for fiscal year ended Mar.31, 2006, the airline group had served
36,735,959 passengers on their domestic flights as compared with
43,848,755 passengers in the fiscal year ended Mar. 31, 2005.

JAL Group's cargo traffic data show that for the fiscal year
ended Mar. 31, 2006, the airline group was able to carry 645,594
tons of cargo and 25,689 tons of mail, as compared with 776,356
tons of cargo and 29, 154 tons of mail in fiscal year ended
Mar. 31, 2005.

A full-text copy of Japan Airlines Corp.'s Group Monthly Traffic
Data for January 2007 can be viewed for free at:

http://bankrupt.com/misc/JALTrafficDatJAN07.xls

                     About Japan Airlines

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan.  The outlook on the long-
term corporate credit rating is negative.

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

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


MITSUBISHI MATERIALS: Inks PGM Recycling Deal With 2 Other Firms
----------------------------------------------------------------
Mitsubishi Materials Corp., Mitsubishi Corp. and
Furuya Metal Co. have announced the conclusion of a joint
development contract for the purpose of developing platinum
group metals recycling technology, The Daily Yomiuri reports.

The report states that the joint contract pools Mitsubishi
Materials' copper-smelting technology, Furuya Metal's knowledge
of PGM processing, and Mitsubishi Corp.'s expertise with PGM
dealing and hedging.

The report explains that PGMs consist of platinum, palladium,
rhodium, iridium, ruthenium and osmium, which are used in
chemical catalysts, auto catalysts, glassmaking furnaces,
electrical parts and magnetic memory devices.

Platinum group metals, Daily Yomiuri explains, are very
resistant to heat and corrosion, and these metals are known for
their high catalytic performance and magnetic features.  

                  About Furuya Metals Co. LTd.

Headquartered in Tokyo, Furya Metal Co, LTD --
http://www.furuyametals.co.jp/--  specializes in platinum group  
metals (PGMs).  The Electronic division develops oxide
monocrystals, and manufactures and sells industrial precious
metal products. Its products are employed for the applications
in magnetic heads, noise cancellers for cellular phones, optical
isolators and scintillators, as well as for optical glass
dissolution and forming, among others.  The Thin Film division
manufactures and sells metal sputtering targets, deposition
materials, alloy materials, as well as thin film products that
uses new alloy materials developed by the Company.  The Sensor
division manufactures and sells thermocouples for continuous
temperature measurement and control used in silicon
semiconductor, compound semiconductor and fine ceramics
manufacturing, among others.  The Others division offers
industrial equipment and precision machinery, such as pyrolytic
boron nitride (PBN) products and fine ceramics products.

                     About Mitsubishi Corp.

Headquartered in Tokyo, Mitsubishi Corporation --
http://www.mitsubishi.co.jp/--  has six business segments.  The  
New Business Initiative group identifies and invests in new
companies, develops new business models and supports other
business groups through the use of financial and marketing
technologies. The Energy Business group identifies and invests
in oil and gas projects, and focuses its trading activities on
petroleum products.  The Metals group is mainly engaged in the
distribution of metal and non-ferrous metal products.  The
Machinery group is engaged in coordinating construction projects
for customers in a variety of industries.  The Chemicals group
identifies and invests in chemical development projects and
focuses its trading activities on basic chemicals.  The Living
Essentials group invests in companies and focuses its trading
activities on products, such as foods and general merchandise.
MC purchased shares in Kinsho Corporation, in July 2006, which
approximates its equity interest to 51%.

                   About Mitsubishi Materials

Headquartered in Tokyo, Mitsubishi Materials Corp. --
http://www.mmc.co.jp/english/-- was formed on Dec. 21, 1990,    
from the merger of two firms, Mitsubishi Metal Mining Company
Limited and Mitsubishi Cement Limited.  The company's principal
activity is the manufacture of metals and ceramics.

The company has international offices in the United States,
Canada, Brazil, Chile, France, Italy, Indonesia and the rest of
Asia.

The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Standard & Poor's Ratings Services revised
to positive from stable the outlook on its 'BB' long-term
corporate credit rating on Mitsubishi Materials Corp. based on
the company's increasing level and stability of cash flows, and
expectations for further improvement in the company's financial
profile.  


NIKKO CORDIAL: Citigroup To Raise Offer to JPY1,700 Per Share
-------------------------------------------------------------
Citigroup Inc. intends to raise its offer for Nikko Cordial
Corp. to JPY1,700 per share from the previous JPY1,350, The
Japan Times reports.

The report relates that Citigroup's higher offer came a day
after the Tokyo Stock Exchange decided not to delist Nikko
Cordial's securities.

As reported in the Troubled Company Reporter - Asia Pacific on
March 14, 2007, the TSE decided not to delist Nikko Cordial's
securities because, according TSE President Taizo Nishimuro, it
cannot confirm whether the brokerage falsified its financial
statements in a systematic manner.

The TCR-AP report said that although the TSE's unanimous
decision was good news for Nikko Cordial, it may mean trouble
for Citigroup, which was gearing for a tender offer for Nikko
Cordial.  Citigroup was expected to raise its offer if it still
wants to buy out the firm.

Previous reports have indicated that Citigroup's initial offer
to gain a majority stake in Nikko Cordial was heavily criticized
by the company's top shareholders.  The TCR-AP, on Mar. 13,
stated that Nikko Cordial's four largest shareholders -- Harris
Associates LP, with a 7.5.% stake, Orbis Investment Management
Ltd., with a 6.9% stake; Southeastern Asset Management Inc.,
with 6.6%; and Mackenzie Financial Corp., with 5.7% -- have
publicly said that Citigroup's JPY1,350-per-share offer price is
too low.

The Japan Times says that Citigroup's raised bid was approved by
the board of directors of both Citigroup and Nikko Cordial.
According to the report, Citigroup was now aware that Nikko
Cordial's prospect improved when the company was removed from
the TSE monitoring post.

Bloomberg News, citing Deutsche Securities Inc. analyst Hiroyuki
Maekawa, said that the increase in the offer just shows that
Citigroup means business.  Mr. Maekawa added that Citigroup may
even have to bid higher to get a majority stake in Nikko
Cordial.  

Citigroup will launch its higher tender offer once preparations
are completed, The Times relates.  

Bloomberg says that Nikko Cordial shares were set to rise by
their daily limit of JPY200, or 13.4%, to JPY1,690 -- the
highest in 10 months.

The Times says that had Nikko Cordial been delisted from the
TSE, its stock prices would have dropped and that would have
encouraged shareholders to respond positively to Citigroup's
initial offer.

                      About Citigroup

Headquartered in New York, Citigroup --
http://www.citigroup.com/-- is today's pre-eminent financial    
services company, with some 200 million customer accounts in
more than 100 countries.  Other major brand names under
Citigroup's trademark red umbrella include Citi Cards,
CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners
Club, The Citigroup Private Bank, and CitiCapital.

                      About Nikko Cordial

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2007, that Fitch Ratings revised the Rating Watch on the foreign
and local currency Issuer Default and Individual ratings of
Nikko Cordial Corporation and Nikko Cordial Securities Inc. to
Evolving from Negative.  These ratings were placed on Watch
Negative on Dec. 21, 2006:

  * NCC: Individual rating C/D and Support rating 5.

  * Nikko Cordial Securities: Individual C and Support rating 4.

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


NIKKO CORDIAL: S&P Ratings on Companies on CreditWatch Positive
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on
Nikko Cordial companies on CreditWatch with positive
implications, following the Tokyo Stock Exchange's decision not
to delist Nikko Cordial Corp. shares.

Following the announcement by the TSE, the 'BBB-/A-3'
counterparty and 'BBB-' senior unsecured debt ratings on Nikko
Cordial Corp., 'BBB/A-2' counterparty credit ratings on Nikko
Cordial Securities Inc., and the 'A' long-term counterparty
credit rating on NikkoCiti Trust & Banking Corp. were all placed
on CreditWatch with positive implications.  The 'A-1' short-term
rating on NikkoCiti Trust was affirmed.

The ratings on the three companies were first placed on
CreditWatch with negative implications on Dec. 26, 2006,
following the resignations of Nikko Cordial group's president
and chairman over accounting problems.  The ratings were
subsequently placed on CreditWatch with developing implications
on Mar. 6, 2007, excluding the short-term counterparty credit
rating on NikkoCiti Trust & Banking Corp.

The placement of the ratings on CreditWatch with positive
implications reflects the diminishing possibility that the
group's credit quality will weaken further since the TSE will
continue to list Nikko Cordial group shares.  Although revisions
of its financial statements had negative implications for
Nikko's reputation and its business franchise, Standard & Poor's
has already incorporated this impact in its current ratings on
the group companies.

The ratings on Nikko Cordial group companies could be raised if
U.S.-based Citigroup Inc. (AA/Stable/A-1+) is successful in its
proposed takeover bid.  The scope of the upgrade will depend on
the size of Citigroup's ownership in Nikko Cordial after the
completion of the takeover bid and its business strategies going
forward.  Conversely, if the takeover bid fails and
Citigroup's support for the Nikko Cordial group becomes unclear,
the ratings on the Nikko Cordial group companies may be
affirmed, provided that no other significant issues emerge.  
Furthermore, the long-term rating on NikkoCiti Trust & Banking
may be affirmed even if the ratings on other group companies
are raised as Citigroup's support has been already incorporated
in Standard & Poor's rating.

                      About Nikko Cordial

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2007, that Fitch Ratings revised the Rating Watch on the foreign
and local currency Issuer Default and Individual ratings of
Nikko Cordial Corporation and Nikko Cordial Securities Inc. to
Evolving from Negative.  These ratings were placed on Watch
Negative on Dec. 21, 2006:

  * NCC: Individual rating C/D and Support rating 5.

  * Nikko Cordial Securities: Individual C and Support rating 4.

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


SAPPORO HOLDINGS: Reports Consolidated Earnings For December 06
---------------------------------------------------------------
Sapporo Holdings posted net income of JPY2.34 billion for the
year ended Dec. 31, 2006, a 35.6% drop from the JPY3.63 billion
net income recorded for the year ended Dec. 31, 2005.  

Sapporo Holding's consolidated balance sheet as of Dec. 30,
2006, showed strained liquidity with JPY127.97 billion in
current assets available to pay JPY268.89 billion in current
liabilities within the next 12 months.

The company's balance sheet as of end-December 2006 also
reflected total assets of JPY589.60 billion and total
liabilities of JPY476.10 billion, resulting in total
shareholders' equity of JPY102.45 billion.

A full-text copy of Sapporo Holdings' financial results for
fiscal year ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/SapporoFinancialStatement.pdf

                     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.


SOJITZ CORP: To Buy Back JPY230.4 Billion-Worth of Shares
---------------------------------------------------------
Sojitz Corporation, on Mar. 30, 2007, will repurchase its
preferred shares worth JPY230.4 billion from five financial
institutions, Reuters Key Development reports, citing Jiji
Press.

These five financial institutions are:

   1. The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
   2. Mizuho Corporate Bank, Ltd.,
   3. Resona Bank, Limited.,
   4. Mitsubishi UFJ Trust and Banking Corporation, and;
   5. The Norinchukin Bank.

Sojitz will retire the shares after the share buyback, the
report states.

                       About Sojitz Corp.

The Sojitz Group was essentially formed through the business
integration between Nichimen Corporation and Nissho Iwai
Corporation, two companies with over a century of history. This
business integration took shape in December 2002 and was
followed on April 1, 2003, by the incorporation of a joint
holding company.  As a public listed company, this holding
company was incorporated to pursue business integration,
management supervision and comprehensive disclosure. Heralding a
new era, the principal operating arms of the Group, Nichimen
Corporation and Nissho Iwai Corporation were merged to form a
new single entity, Sojitz Corporation on April 1, 2004.  On
October 1, 2005, the final phase of business integration was
completed through the merger of the holding company and Sojitz
Corporation.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Feb. 28, 2007, that Standard & Poor's Ratings Services raised
its long-term issuer credit rating on Sojitz Corp. to 'BB+' from
'BB' and removed the rating from CreditWatch where it was placed
on Apr. 28, 2006, with positive implications.  The upgrade
follows Sojitz's conversion of a total JPY205 billion of its
JPY300 billion in outstanding convertible bonds into common
shares by Feb. 26, 2007.  


SOJITZ CORP: Appoints Akio and Yutaka as Chairman and President
---------------------------------------------------------------
Sojitz Corporation has appointed Akio Dobashi as the new
chairman of the board of directors, and Yutaka Kase as president
of the company.  Both appointments are effective April 1, 2007.

The Sojitz Group was essentially formed through the business
integration between Nichimen Corporation and Nissho Iwai
Corporation, two companies with over a century of history. This
business integration took shape in December 2002 and was
followed on April 1, 2003, by the incorporation of a joint
holding company.  As a public listed company, this holding
company was incorporated to pursue business integration,
management supervision and comprehensive disclosure. Heralding a
new era, the principal operating arms of the Group, Nichimen
Corporation and Nissho Iwai Corporation were merged to form a
new single entity, Sojitz Corporation on April 1, 2004.  On
October 1, 2005, the final phase of business integration was
completed through the merger of the holding company and Sojitz
Corporation.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Feb. 28, 2007, that Standard & Poor's Ratings Services raised
its long-term issuer credit rating on Sojitz Corp. to 'BB+' from
'BB' and removed the rating from CreditWatch where it was placed
on Apr. 28, 2006, with positive implications.  The upgrade
follows Sojitz's conversion of a total JPY205 billion of its
JPY300 billion in outstanding convertible bonds into common
shares by Feb. 26, 2007.


TAIHEIYO CEMENT: Will Dissolve and Liquidate Subsidiary
-------------------------------------------------------
Taiheiyo Cement Corporation will dissolve and liquidate its
consolidated subsidiary, which is based in Hyogo Prefecture and
engaged in the manufacturing and sale of fresh concrete, on
Mar. 31, 2007, Reuters Key Development says.

Headquartered in Tokyo, Japan, Taiheiyo Cement Corporation --
http://www.taiheiyo-cement.co.jp/-- formed by the 1998  merger   
of Chichibu Onoda Cement and Nihon Cement, is Japan's leading
cement manufacturer.  Taiheiyo's other interests include
minerals and aggregates, construction materials (ready-mix
concrete and concrete products), and real estate.  The company
also operates materials recycling businesses that include the
conversion of sewage sludge from power plants.  Taiheiyo
provides real estate management services in the Tokyo area.    

The Troubled Company Reporter - Asia Pacific reported on
February 9, 2006, that Standard & Poor's Rating Services
assigned its 'BB' long-term corporate credit and senior
unsecured debt ratings to Taiheiyo Cement Corporation.  The
outlook on the long-term corporate credit rating on the company
is stable.  The outlook on the long-term corporate credit rating
is stable.   


TENNECO INC: Earns US$51 Million in Year Ended December 31, 2006
----------------------------------------------------------------
Tenneco Inc. reported net income of US$51 million on total
revenues of US$4.68 billion for the year ended Dec. 31, 2006,
versus a net income of US$58 million on total revenues of
US$4.44 billion for the year ended Dec. 31, 2005.

Excluding the impact of currency and substrate sales, revenue
was down US$58 million driven primarily by lower OE production
volumes in North America, particularly light trucks and SUVs,
partially offset by higher aftermarket sales.

Revenues from the company's North American operations decreased
by US$69 million in 2006 compared to the same period last year
reflecting lower sales in OE partially offset by increased
aftermarket sales.  Revenues from the company's European, South
American, and Indian segments increased by US$252 million in
2006, compared to last year.  Revenues from its Asia Pacific
segment, which includes Australia and Asia, increased to US$421
million in 2006, compared with US$360 million for the prior
year.

For the year 2006, total costs and expenses were US$4.48 billion
up from US$4.22 billion for 2005.  The increase was primarily
driven by the rise in cost of sales to US$3.83 billion for 2006,
from US$3.58 billion a year ago.

Income taxes paid were US$3 million in 2006, compared with US$25
million in 2005.  Included in the income taxes paid in 2006 were
benefits of US$16 million.  The effective tax rate for 2006,
including the US$16 million of benefits, was 5%.  Excluding
these benefits would have increased the company's effective tax
rate by 27%.

As of Dec. 31, 2006, the company listed US$3.26 billion in total
assets, US$3.01 billion in total liabilities, US$28 million in
minority interests, resulting in a total shareholders' equity of
US$221 million.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1acc.

                    About Tenneco Inc.

Headquartered in Lake Forest, Illinois, Tenneco Inc. --
http://www.tenneco.com/-- is a leading manufacturer of  
automotive ride control and emissions control products and
systems for both the worldwide original equipment market and
aftermarket.  Leading brands include Monroe(R), Rancho(R), and
Fric Rot ride control products and Walker(R) and Gillet emission
control products.

The company has operations in Argentina, Japan, and Germany,
among others.

                          *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Automotive and Equipment sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Tenneco Inc.


TOHOKU MISAWA: Lowers Net Profit Outlook for Year to Mar. 2007
--------------------------------------------------------------
Tohoku Misawa Homes Co., Ltd., has reaffirmed its consolidated
full-year outlook for revenues of JPY27.00 billion and ordinary
profit of JPY300 million, for the fiscal year ending Mar. 31,
2007, Reuters Key Development reports.  However, the company
lowered its consolidated full-year net profit guidance from
JPY150 million to JPY100 million,

According to Reuters, the company lowered its full-year net
profit outlook due to the recording of extraordinary loss.

                     About Tohoku Misawa

Headquartered in Miyagi, Japan, Tohoku Misawa Homes Co. Ltd's --
http://www.t-misawa.co.jp/-- principal activity is to construct  
ceramic prefabricated houses.  The activities of the Group
include marketing of houses in lot, real estate agents, fixed
assets leasing and other house-related facilities and furniture
sales.

The Troubled Company Reporter - Asia Pacific reported on
Feb. 14, 2006, that Japan Credit Rating Agency has upgraded the
rating on senior debts of Tohoku Misawa Homes Co. Limited from
BB- to BB.  The outlook is stable.


TOKYO DOME: To Sell Golf and Resorts to Morgan Stanley Unit
-----------------------------------------------------------
Tokyo Dome Corporation has signed an agreement to sell its golf
and business resorts such as ski resorts, hotels and amusement
parks, to a real estate fund of Morgan Stanley Japan Securities
Co. Ltd., Reuters Key Developments reports.

The report states that the sale will take place between the end
of April to the end of May.  The price of the sale was not
disclosed.

The Troubled Company Reporter - Asia Pacific reported on
Oct. 19, 2006, that Tokyo Dome wants to reduce its consolidated
interest-bearing debt by nearly 40% to slightly more than
JPY190 billion over four years through January 2010 by selling
some of its assets.  

The TCR-AP report said that after selling its financial
operations to United States-based investment firm Lone Star
Funds, Tokyo Dome decided to sell six more facilities that
include golf courses, hotels and amusement parks across Japan.    

The TCR-AP report also stated that through the use of more than
JPY60 billion in proceeds from these deals, Tokyo Dome aims to
cut its interest-bearing debt by 31% from JPY305.3 billion at
the end of the last fiscal year to JPY212 billion by the end of
January 2008.  The report states that Tokyo Dome intends to
reduce the figure by another JPY20 billion over the following
two years by securing net profits of more than JPY10 billion.

                        About Tokyo Dome

Established in 1936 to manage Korakuen Stadium (now known as
Tokyo Dome), Tokyo Dome Corp. -- http://www.tokyo-dome.co.jp/--    
operates sport and leisure facilities through four sectors:

   (a) Sports/Leisure Division -- manages the baseball stadium
                                  Tokyo Dome, golf courses,
                                  amusement parks and ski
                                  resorts;
   (b) Hotels Division         -- manages city hotels and resort
                                  hotels;
   (c) Retail Division         -- sells sports and variety
                                  goods; and
   (d) Other Operations        -- building management and
                                  administration and travel
                                  agencies.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Aug. 2,
2006, that Rating & Investment Information Inc. had affirmed its
'BB+' rating on Tokyo Dome Corp., after the Company adjusted its
forecast for the July 2006 interim period to a JPY70.9-billion
net loss.

In addition to adopting impairment loss accounting on fixed
assets that it had announced earlier, Tokyo Dome will also
dispose of provisions for its finance business, which would
significantly erode equity capital.


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

CHOROKBAEM MEDIA: Issues Second Unregistered Convertible Bonds
--------------------------------------------------------------
Chorokbaem Media Co., Ltd., has issued its second offering of
unregistered convertible bonds, raising funds up to US$8 million
through the Euro market, Reuters Key Developments says.

The details regarding the bond insurance are as follows:

   * maturity on March 13, 2010,
   * yield to maturity 5%,
   * lump-sum redemption of principal on maturity date,
   * 100% conversion rate of bonds to common shares at KRW705,
     and;
   * subscription period for conversion from March 13, 2007, to
     March 13, 2010.

Korea Investors Service gave this particular issue a B rating
with a stable outlook on Feb. 16, 2007.

Seoul, Korea-based Chorokbaem Media Co., Ltd. is a manufacturer
engaged in the provision of non-woven fabrics.  The company
provides non-woven fabrics used in normal and special filters,
artificial and synthetic leathers and other related usages.  In
addition, the company operates family restaurants.


CHOROKBAEM MEDIA: Signs MOUs for Business Tie-Ups
-------------------------------------------------
Chorokbaem Media Co., Ltd., has signed a memorandum of
understanding with Anine Media Inc. for a business tie-up in
user created content business areas, Reuters Key Developments
states.

In addition, the report says that Chorokbaem signed an MOU with
a Korea-based company, on Feb. 27, 2007, for the establishment
of a joint venture broadcasting academy.

Seoul, Korea-based Chorokbaem Media Co., Ltd. is a manufacturer
engaged in the provision of non-woven fabrics.  The company
provides non-woven fabrics used in normal and special filters,
artificial and synthetic leathers and other related usages.  In
addition, the company operates family restaurants.

The Troubled Company Reporter - Asia Pacific reported that Korea
Investors Service gave the company's unregistered US$8 million
convertible bonds a 'B' rating on Feb. 16, 2007.


HANA BANK: Receives FSS Request to Ease Card Marketing Scheme
-------------------------------------------------------------
The Financial Supervisory Service has requested Hana Bank to
ease its card-marketing scheme -- specifically Hana's "My Way
Card" -- to prevent a heated competition in the card market by
offering excessive benefits to cardholders, Na Jeong-ju writes
for The Korea Times.

According to the report, the benefits of Hana's "My Way Card,"
include:

   (a) a discount of up to KRW4,000 a month to cardholders when
       they pay for subway and bus fares with the card;

   (b) an exemption of full service charges to those who sign up
       for the card by the end of April; and

   (c) discounts when cardholders use it at family restaurants,
       gas stations, and large discount chains.

Since the card's marketing in February, the bank has attracted
more than 100,000 new subscribers, the report relates.

"We are discussing with the FSS to cut the benefits, but
existing subscribers will be able to enjoy the benefits that we
promised to offer," The Times cites a Hana Bank official as
saying.

"Card firms have been preparing to issue new cards with more
benefits to counter Hana's cards," the paper quotes an FSS
official.

"However, credit default rates may rise again if the economy
slows down.  Card firms may face greater default risks," the FSS
official noted.

The Times reveals that Hana plans to double its customer base to
6 million, and increase its card revenues by 35.5% to
KRW14.3 trillion this year.  Thus, Hana has lowered its fees for
top-income earners and clients with good credit records.

                         About Hana Bank

Hana Bank -- http://www.hanabank.com/-- provides financial  
services to individuals and corporate clients such as
international banking, trust business and security investment
business through 298 domestic branches and one head office.

Moody's Investors Service gave the bank a D+ Bank Financial
Strength Rating.


KOREA EXCHANGE BANK: BAI Wants Lone Star Sale Corrected
-------------------------------------------------------
On Feb. 12, 2007, the Troubled Company Reporter - Asia Pacific
cited a report from The Chosun Ilbo stating that the Financial
Supervisory Commission and the Board of Audit and Inspection
were reportedly at odds over whether to deprive Lone Star Funds
of its status as the major shareholder of Korea Exchange Bank.

According to the report, the BAI asked the FSC to consider
stripping Lone Star of its major shareholder status.  However,
the FSC insisted that it will make a decision on the issue only
after the Court's final decision.

On March 12, 2007, the BAI urged the FSC to correct the KEB sale
by taking "proper measures," alleging that the FSC "illegally
and improperly" approved Lone Star's takeover bid, the Yonhap
News reports.

Yonhap explains that under domestic law, non-banking companies
are banned from buying a controlling stake in a bank unless it
is in serious financial trouble.  An investor is only allowed to
hold 10% in a bank.

The BAI also alleged that Morgan Stanley "improperly" served as
an adviser for the Seoul Government by intentionally
underestimating KEB's value, Yonhap notes.  Thus, the BAI
recommended that Morgan Stanley be sanctioned.

According to prosecutors, KEB's financial health was
deliberately understated to help Lone Star purchase a majority
stake in KEB at a price at least KRW344.3 billion (US$374.6
million) below its market value, Yonhap relates.

The BAI also concluded that Byeon Yang-ho -- who was then the
head of the Ministry of Finance and Economy's financial policy
bureau -- masterminded the discount sale for private gain in
concert with former KEB President Lee Kang-won, the paper says.

The BAI further said that the FSC and other financial regulators
are also responsible for the case, as they approved the deal
without objectively reviewing the financial reports on the bank,
Yonhap notes.

"The 2003 approval was inappropriate and flawed because it was
based on financial data that inflated the bank's losses, and the
FSC approved the deal knowing that Lone Star was not qualified
to take over the bank," Yonhap cites a statement from the BAI.

However, the FSC will wait for court decisions before nullifying
the sale, the paper relates.

Yonhap relates that court trials involving former and current
South Korean financial officials and former KEB executives, as
well as a lobbyist accused of taking part in the illegal sale,
are currently underway.

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

                          *     *     *

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

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

On Feb. 22, 2007, Standard & Poor's Ratings Services affirmed
its C+ Fundamental Strength Rating on Korea Exchange Bank.


SAMSUNG CARD: IPO to Raise Up to US$570 Million, Sources Say
------------------------------------------------------------
Samsung Card plans to sell 12 million outstanding shares, or
about 12% of its share capital, the sources told Reuters.

On March 9, 2007, Samsung Card filed a listing application with
the Korea Exchange, Reuters says, citing one of the unidentified
sources.

Samsung Card Co. expected to price its initial public offering
at between KRW40,000 and KRW45,000 per share, raising up to
KRW540 billion (US$570.6 million), Reuters relates.

Thus, Samsung Card will have a market capitalization of up to
KRW4.5 trillion post-listing, Reuters says.

According to the sources, Samsung had scrapped a plan to issue
new shares, and existing stakeholders including Samsung
Electronics Co. Ltd. will offload their 12 million shares in the
IPO.

Reuters says Samsung Card's IPO will become the first listing
for a South Korean credit card firm in five years.  The report
notes that in the credit card boom of 2002, LG Card raised
KRW464 billion from its IPO.

                       About Samsung Card

Headquartered in Jongro-Gu, Seoul, Korea, Samsung Card --
http://samsungcard.co.kr/-- offers credit card services  
including issuing cards, one-time payments, installments and
cash advance services.  The Company also provides other
financial services like leasing and loan services.

Formerly the No.1 credit card issuer, Samsung Card fell to third
place (after Kookmin Card and LG Card) following a liquidity
crunch in 2003, because of a rise in overdue credit card bills.
Samsung Card suffered an 18% increase in net loss for 2005 to
KRW1.31 trillion.  The Company recorded net losses of
KRW1.299 trillion and KRW1.103 trillion in 2003 and 2004,
respectively.


SILVER STAR: Adjusts Conversion Price of Second Conv. Bonds
-----------------------------------------------------------
Silver Star Corporation announced that it has adjusted the
conversion price of its second convertible bonds to
KRW2,489 from KRW2,600, effective on Feb. 19, 2007, Reuters Key
Developments says.

Based in Seoul, Silver Star Corporation is a Korea-based company
engaged in the provision of fabric for cleaning equipment and
bath products. The Company produces two main products: cleaning
equipment, including mops, pot cleaners, optical clothes,
gloves, window cleaners and micro fabric for cleaning such as
suede and terry, and bath products, including towels, hair
turbans, bath gowns, mats and slippers.  During the year ended
Dec. 31, 2005, the Company had a production capacity of 88,707
yards of micro fabric and its actual output was 53,454 yards of
micro fabric. In 2005, cleaning equipment accounted for
approximately 92% of total sales.

On June 30, 2006, Korea Investors Service affirmed the company's
convertible bonds issued on October 15, 2004, a B+ rating with a
stable outlook.


SILVER STAR: Signs Memorandum of Understanding with KYG
-------------------------------------------------------
Silver Star Corporation has signed a Memorandum of Understanding
on a joint development of DNA materials and environmental
hormone with KYG, Reuters Key Developments says.

Based in Seoul, Silver Star Corporation is a Korea-based company
engaged in the provision of fabric for cleaning equipment and
bath products.  The Company produces two main products: cleaning
equipment, including mops, pot cleaners, optical clothes,
gloves, window cleaners and micro fabric for cleaning such as
suede and terry, and bath products, including towels, hair
turbans, bath gowns, mats and slippers. During the year ended
Dec. 31, 2005, the Company had a production capacity of 88,707
yards of micro fabric and its actual output was 53,454 yards of
micro fabric. In 2005, cleaning equipment accounted for
approximately 92% of total sales.

On June 30, 2006, Korea Investors Service affirmed the company's
convertible bonds issued on Oct. 15, 2004, a B+ rating with a
stable outlook.


THE LEADCORP: Amends Conversion Price of First Convertible Bonds
----------------------------------------------------------------
The Leadcorp, Inc., has amended the conversion price of the
company's first overseas-unsecured convertible bonds conversion
price from KRW2,895 to KRW2,720, Reuters Key Development
reports.  

The bonds, first announced on June 21, 2006, will raise
US$7 million through the Euro market.

Seoul, Korea-based The LEADCORP, Inc. is engaged in the
provision of oil and consumer financial service.  The company
operates its business under three main sectors: oil, gas station
and resting place, and consumer financial service.  Its oil
business supplies gasoline, lamp oil, light oil and other
related products predominantly in Jeolla Province, Korea.  Its
gas station and resting place business operates Cheon Ahn
resting place in Chungcheong Province, Korea.  The consumer
financial service business offers loan service primarily through
the Internet with its 10 domestic branches.

On June 28, 2006, Korea Investors Service affirmed the company's
straight bonds series 13's 'BB-' rating with a stable outlook.


TONG YANG MAGIC: Declares Annual Cash Dividend
----------------------------------------------
Tong Yang Magic Co. Ltd.'s board of directors has declared a
dividend payment of KRW100 per common share, payable for the
financial year ended Dec. 31, 2006, Reuters Key Development
says.

Reuters adds that the total cash dividend amount is
approximately KRW840 million.

The Troubled Company Reporter - Asia Pacific has learned from
data obtained from Bloomberg News that the company reported a
KRW5.46 billion net income for the year ending Dec. 31, 2006, on
net sales of KRW227.81 billion.

Seoul Korea-based Tong Yang Magic Co., Ltd. --
http://english.magic.co.kr/-- is involved in the manufacturing  
of home appliances and industrial machines.  The company's home
appliances offering includes gas ranges, gas oven ranges, dish
washers, built-in appliances, microwave ovens, Kim chi
refrigerators and healthcare products (such as water purifiers
and softeners, bidets, humidifiers, air cleaners, rice cookers,
oven toasters, coffee makers and wireless irons).  With its
industrial machinery manufacturing, the company provides turbo
fans and tunnel ventilation systems, selective catalytic
reduction reactors, regenerative thermal oxidizers and catalytic
oxidizers.  It markets its products in the Americas, Asia, the
Middle East and Eastern Europe, as well as in domestic markets.

On Dec. 28, 2006, Korea Investors Service affirmed its B rating
on the company's commercial papers.


CPN CO: Changes Name to Namae International
-------------------------------------------
CPN Co., Ltd., has changed its name to Namae International. Co.,
Ltd., according to Reuters Key Developments.

The Employee Stock Ownership Association has decreased its
equity stake holding in Namae International, down to 3.97%, he
report adds.

Moreover, Namae has announced that its largest shareholder has
been changed to Sysnco Co. Ltd. from Kiwoom.Com Securities Co.,
Ltd.

Sysnco holds a 9.47% equity stake in the company, while
Kiwoom.Com Securities Co., Ltd. has earlier decreased its equity
stake in the company down to 9.45%.

Headquartered in Gyeonggi Province, Korea, Namae International.
Co., Ltd., formerly CPN Co., Ltd. -- http://www.cpns.co.kr/--  
is engaged in the provision of distribution services.  The
company operates its business through three divisions:
distribution, education and Internet divisions. Its distribution
business division distributes golf sticks, hair care products,
shampoos, hair conditioners, hair packs, body cleansers, baby
formulas, batteries, lip care products, chocolates, mask packs
and others to more than 4000 stores in Korea.  Its education
business division offers academic and athletic training
curriculums.  Its Internet business division provides e-coin
cards and other related products.

Korea Investors Service affirmed its CCC ratings on both series
4 and series 5 of the company's convertible bond on July 11,
2006.  Both ratings carry a stable outlook.


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

FEDERAL FURNITURE: Seeks Extension to Complete Reform Exercise
--------------------------------------------------------------
Federal Furniture Holdings (M) Bhd asked the Securities
Commission to extend until Sept. 13, 2007, the period within
which it is required to complete its corporate restructuring
exercise.

The Commission has previously required the company to complete
the implementation of its regularization plan by March 15.

As reported by the Troubled Company Reporter - Asia Pacific,
Federal Furniture submitted its regularization plan to the
Securities Commission and other relevant authorities on July 5,
2006.

The regularization plan contains, among others, these proposals:

    * capital reduction
    * share premium reduction
    * rights issue with warrants, and
    * debt settlement scheme with some of its creditors.

                          *     *     *

Headquartered in Selangor Darul Ehsan Malaysia Federal Furniture
Holdings Bhd -- http://www.federal-furniture.com/-- is a listed  
company on the Kuala Lumpur Stock Exchange and is Malaysia's
premier furniture and interior design group.  It consists of
companies in all the main sectors of the furniture-related
industries, from manufacturing, marketing, exporting, contract
furnishing and interior design to retail.

On June 24, 2004, the Board of Directors of Federal Furniture
has proposed a capital reduction, a share premium reduction,
rights issue with warrants and a debt settlement scheme with
some of its financial institution lenders to restructure and
settle a substantial part of its total bank borrowings.  On
July 5, 2006, the Company submitted its Regularization Plan to
Bursa Malaysia Securities Berhad for approval.

Federal Furniture Holdings Bhd's unaudited balance sheet as of
Dec. 31, 2006, showed solvency problem with total assets of
MYR135.78 million and total liabilities of MYR153.46 million,
resulting to a shareholders deficit of MYR17.67 million.


GEORGE TOWN: Fails to File 2006 Fourth Quarter Results
------------------------------------------------------
George Town Holdings Bhd said in a disclosure with the Bursa
Malaysia Securities Bhd that it will delay the filing of its
financial results for the fourth quarter ended Dec. 31, 2006.

According to George Town, the delay was caused as the company is
still in the process of working on its proposed regularization
plan.

The company assured the bourse that the fourth quarter results
will be submitted once the regularization plan is finalized.

                          *     *     *

Headquartered at Petaling Jaya, in Selangor Darul Ehsan,
Malaysia, George Town Holdings Berhad operates supermarkets,
department stores and convenience stores.  Its other activities
include property development, trading in pharmaceutical
products, media design and advertising, management services,
goldsmith and jewelers, management of car parks, bakery, pastry
and fast food center, financial services, hotel management and
investment holding.

The Group operates in Malaysia, Continental Europe/Offshore
Islands and other countries.

The company has been categorized as an Affected Listed Issuer
under Practice Note 17, based on its unaudited financial
statement as at December 31, 2004, wherein it showed that it had
MYR28.7 million shareholders' equity representing 23.4% of the
issued and paid-up share capital which is less than the 25%
minimum required under the listing requirements of Bursa
Securities.


KAI PENG: Balance Sheet Upside Down by MYR37.82 Mil. at Dec. 31
---------------------------------------------------------------
Kai Peng Bhd's unaudited balance sheet as of Dec. 31, 2006,
showed solvency problem with total assets of MYR105.34 million
and total liabilities of MYR143.17 million, resulting to a
shareholders' deficit of MYR37.82 million.

The company's balance sheet as of end-December 2006 also showed
strained liquidity with current assets of MYR55.87 million
available to pay current liabilities of MYR132.14 million.

For the second quarter ended Dec. 31, 2006, Kai Peng incurred a
net loss of MYR185,000 on MYR39.44 million of revenues, as
compared with a net loss of MYR1.98 million on MYR45.51 million
of revenues in the same quarter in 2005.

A full-text copy of the company's financial statements for the
second quarter ended Dec. 31, 2006, can be viewed for free at:

        http://bankrupt.com/misc/kaipeng-2q-results.xls

                          *     *     *

Headquartered in Selangor, Darul Ehsan, Malaysia, Kai Peng
Berhad Kai manufactures, markets and distributes steel products.  
Other activities include provision of information and
communication technology services, undertaking steel fabrication
and engineering works and investment holding.  Operations are
carried out principally in Malaysia.

Kai Peng was, on May 9, 2006, classified under Practice Note 17
of Bursa Malaysia Securities Berhad after its shareholders'
equity failed to meet the listing requirement.  As an affected
listed issuer, the Company is required to submit a financial
regularization plan or risk the possibility of delisting.

On November 9, 2006, the Troubled Company Reporter - Asia
Pacific reported that the external auditors of Kai Peng Berhad,
Ernst & Young, have raised substantial doubt on the company's
and the group's ability to continue as going concerns after
auditing their financial statements for the fiscal year ended
June 30, 2006.

Specifically, Ernst & Young pointed out these factors in Kai
Peng's June 30, 2006 financial statements:

   -- The group and the company reported net losses of
      MYR62,181,981 and MYR53,789,921 respectively;

   -- The group and the company's current liabilities
      exceeded their current assets by MYR77,245,002 and
      MYR49,988,562 respectively; and

   -- The group and the company's June 30, 2006 balance
      sheet showed shareholder's deficit of MYR36,300,109 and
      MYR34,116,889 respectively.

Kai Peng Bhd's unaudited balance sheet as of Dec. 31, 2006,
showed solvency problem with total assets of MYR105.34 million
and total liabilities of MYR143.17 million, resulting to a
shareholders' deficit of MYR37.82 million.


MALAYSIA AIRLINES: Expects 10% Load Raise with Supersavers Promo
----------------------------------------------------------------
Malaysia Airlines expects that its "Supersavers Promotion Fare"
will generate a 10% increase in load factor in its Sarawak-
Kuala/Lumpur-Sarawak routes, Bernama News reports.

According to Shauqi Ahmad, the airline's area manager, the
promotion has been divided into two categories -- Jimat and
Advance Purchase One Way -- which provided a substantial saving
to certain destinations from Sarawak to Kuala Lumpur, the report
relates.

"With this promotion, our load factor, which is about 65% now,
is expected to increase to 75%," Mr. Ahmad was quoted as saying
during a media conference.

Under the airline's Jimat promotion, a one-way trip from various
cities and towns in Sarawak to Kuala Lumpur will be offered for
as low as MYR129 from March 1 to April 30 this year, Bernama
says.

However, passengers can only avail of the promotion during
flights on Tuesdays, Wednesdays and Thursdays, Mr. Ahmad
clarifies.

Meanwhile for APOW promotion, Mr. Ahmad said the booking and
travel period were all-year round and the fare would come as low
as MYR139.

                          *     *     *

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

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


MALAYSIA AIRLINES: Sells Training Center for US$41.4 Million
------------------------------------------------------------
Malaysian Airline System Bhd will sell its MAS Academy in Kelana
Jaya for US$41.4 million (MYR145 million) to the Employees
Provident Fund as part of its efforts to sell non-core assets,
Asia Pulse reports.

Under the agreement, the Malaysian flag-carrier will sell the
academy to the state-controlled pension fund and then lease it
back for five years with a renewal option for another five
years, the report relates.

MAS Academy, which is currently used for training center and IT
building, comprises six buildings and has a freehold land area
of about 358,869.0230 square feet, Asia Pulse notes, citing a
statement from the airline.

The property was acquired in 1989 for MYR133.15 million with the
buildings completed in 1995.

The proposed disposal is expected to be completed by end-2007
and was part of its strategic asset rationalization exercise,
the airline said in its statement.

With the proposed disposal, Malaysia Airlines expects to gain
MYR43.2 million, which translated to improved earnings per share
of CNY0.04 based on the company's audited consolidated financial
statement as of Dec 31, 2005.

Meanwhile, the carrier said that the proposed leaseback will
give more flexibility in choosing its best options for future
office consolidation and could help maximize the yield and at
the same time, achieve the best price possible.

The rent for first five years would be about MYR8.7 million
annually, the airline added.

                          *     *     *

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

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


PROTON HOLDINGS: German Envoy Optimistic About Volkswagen Deal
--------------------------------------------------------------
The German envoy to Malaysia, Herbert Jess, is hopeful of a
breakthrough in talks between Volkswagen AG and Proton Holdings
Bhd after two years of negotiations between the two carmakers,
The Edge Daily reports.

Speaking in Kuala Lumpur on March 13 after attending the
launching ceremony of new initiatives between the German-
Malaysia Institute and its industry partners, Mr. Jess told The
Edge that he cannot comment on the Malaysian Government's plan
but said Volkswagen is prepared to partner with Proton if the
terms are right.

"If the negotiations proceed satisfactorily, it will come to a
deal.  If not, the deal will not be reached," Mr. Jess said.

Mr. Jess also said that he is hopeful that bilateral trade
relations between the two countries would continue to improve.

According to the envoy, Germany was Malaysia's biggest trade
partner in Europe with two-way trade volume between both
countries valued at about MYR30 billion last year.  Germany was
also Malaysia's ninth largest trade partner.

                          *     *     *

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

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

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


SUTERA HARBOUR: RAM Downgrades Tranche 2 Secured Bonds to D
-----------------------------------------------------------
Rating Agency Malaysia has downgraded the rating of Sutera
Harbour Resort Sdn Bhd's MYR90 million Tranche 2 Redeemable
Secured Bonds, from C1 to D.  The downgrade is premised on the
failure of Sutera Harbour to redeem the Tranche 2 Bonds on the
scheduled maturity date on Feb. 28, 2007, as confirmed by the
Trustee via a letter to the company as of the same date.

According to RAM's rating definition, a D rating reflects a
situation where the payment of interest and/or repayment of
principal are currently in default or face imminent default,
whether or not formally declared.

Nonetheless, RAM understands that the management is currently
working to facilitate a comprehensive debt settlement involving
all classes of creditors, including the bondholders, of the
Sutera Harbour Group.

Consequently, Sutera Harbour has sought the indulgence of its
bondholders for a 6-month extension, to enable all the relevant
parties to negotiate and agree upon a comprehensive and
realistic debt settlement.

RAM will continue monitoring the related developments and make
the appropriate announcements when necessary.  

Meanwhile, RAM has reaffirmed the AAA rating of the Company's
MYR30 million Tranche 3 Redeemable Secured Bonds, which reflects
the credit strength of its guarantor, Malayan Banking Berhad.


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

LEPANTO CONSOLIDATED: Stockholders Meeting Set for April 16
-----------------------------------------------------------
Lepanto Consolidated Mining Co. will hold its annual
stockholders meeting on April 16, 2007, at 4:00 p.m., at The
Peninsula Manila, in Makati City, Philippines.

The company advises that only holders of issued stocks of record
on March 6 will be entitled to vote on the meeting.

Among others, the shareholders will elect its board of directors
and consider the approval of the company's annual report.

The company advises the Philippine Stock Exchange that the
company will file its 2006 financial results after the audit
committee of its board of directors approves the audited
financials.

Headquartered in Makati City, Lepanto Consolidated Mining
Company -- http://www.lepantomining.com/-- was incorporated   
primarily to engage in the exploration and mining of gold,
silver, copper, lead, zinc and all kinds of ores, metals,
minerals, oil, gas and coal and their related by-products.  The
Company was incorporated in 1936 and until 1997 was operating an
enargite copper mine.  It shifted to gold bullion production
that same year through its Victoria Project.  Lepanto operated a
copper flotation plant from August 2000 to December 2001, when
copper operations were suspended due to the presence of
excessive penalty elements in the mill feed and copper
concentrate.  Lepanto sells its gold bullion production to
London's Johnson Matthey.  Lepanto is now one of the country's
top producers of gold and its by-products, copper and silver.  
The Company also has investments in other areas through its
subsidiaries such as hauling business, diamond drilling
business, insurance business, manufacturing of industrial
diamond tools for mining exploration, marble cutting and the
construction industry.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 27, 2006, that Lepanto Consolidated is working to
recover from a PHP400-billion loss incurred in the past two
years due to labor disputes.


MANILA MINING: Sets Annual Stockholders Meeting on April 17
-----------------------------------------------------------
Manila Mining Corp. will hold its regular annual stockholders
meeting on April 17, at 3:00 p.m. at the Renaissance Makati City
Hotel, the company informs the Philippine Stock Exchange in a
regulatory filing.

The agenda for the shareholder meeting includes approval of the
company's annual report and election of directors.

Only holders of issued stocks of record at the close of business
hours on March 7, and whose status as stockholders on that date
has been satisfactorily established, will be entitled to vote on
the meeting.

Manila Mining Corporation -- http://www.manilamining.com/-- was   
incorporated primarily to carry out the business of mining,
milling, concentrating, converting, smelting, treating,
preparing for market, manufacturing, buying, selling, exchanging
and otherwise producing and dealing in precious and semi-
precious metals, ores, minerals and their by-products.  The
Company is an affiliate of Lepanto Consolidated Mining Company.  
It started its mining operations in Placer, Surigao del Norte in
1981.  Up until it suspended its mining and milling operations
in July 2001, the Company produced gold bullion through a
Carbon-In-Pulp (CIP) Plant.

                          *     *     *

After auditing Manila Mining's annual report for the year ended
Dec. 31, 2005, Rodelio A. Acosta, of Isla Lipana & Co., raised
substantial doubt on the Company's ability to continue as a
going concern, noting the Company's continued losses from
operations that resulted to a deficit of PHP936,543,157 and
working capital deficiency of PHP729,068,305 in 2005.


MIRANT CORP: Earns US$1.3 Billion for Quarter Ended December 31
---------------------------------------------------------------
Mirant Corporation reported net income of US$1.324 billion for
the quarter ended Dec. 31, 2006, compared to net income of
US$207 million for the same period in 2005.  For 2006, Mirant
reported net income of US$1.864 billion, compared to a net loss
of US$1.307 billion for 2005.  Earnings per share for the fourth
quarter were US$4.89 per diluted share and earnings per share
for the year were US$6.28 per diluted share.

In the fourth quarter of 2006, the company recognized tax
benefits of US$845 million related to the pending sale of its
Philippine business consisting of US$124 million related to the
reversal of a liability for Philippine dividend withholding
taxes with respect to Philippine earnings which will not be
repatriated as dividends and US$721 million related to book/tax
basis differences in the shares of the entity being sold and to
the release of the valuation allowance previously recorded
against NOLs and other deferred tax assets which will be used to
offset the taxable gain from the sale.  The benefit of US$721
million represents an acceleration into 2006 of the tax effects
of the sale of the Philippine business.  As a result, the gain
from that transaction to be recorded in 2007 will be treated as
fully taxable for financial reporting purposes in that year.

Mirant reported adjusted net income of US$186 million for the
fourth quarter of 2006, resulting in adjusted earnings per
diluted share of US$0.69.  Adjusted net income for the quarter
excludes the positive effects of the total tax benefits of
US$845 million, a US$221 million gain recognized for the
settlement of the New York property tax dispute and the net
effect of US$72 million of other non-recurring items.

Mirant reported adjusted net income for 2006 of US$644 million,
resulting in adjusted earnings per diluted share of US$2.17 for
the year.  Adjusted net income for the year excludes the
positive effect of the total tax benefits of US$845 million,
unrealized mark-to-market gains of US$667 million, the
US$221 million gain recognized for the settlement of the New
York property tax dispute and the negative effect of a
US$375 million impairment for the U.S. natural gas plants, a
US$120 million impairment for Bowline unit 3 and the net effect
of US$18 million of other non-recurring items.

Adjusted EBITDA from continuing operations was US$171 million
for the quarter, compared to a loss of US$31 million for the
same period in 2005.  For 2006, adjusted EBITDA from continuing
operations was US$641 million, compared to US$169 million for
the same period in 2005.  The period over period increases for
the quarter and the year resulted primarily from an increase in
the realized value of hedges for the 2006 periods compared to
the 2005 periods, offset in part by lower power prices and lower
generation volumes in 2006.

Net cash provided by operating activities during the fourth
quarter was US$289 million.  Net cash provided by operating
activities was US$1.377 billion for 2006, excluding bankruptcy
payments of US$814 million.

As of December 31, 2006, the company's continuing operations had
cash and cash equivalents of US$1.142 billion, total available
liquidity of US$1.8 billion and total outstanding debt of
US$3.275 billion.

Adjusted EBITDA from discontinued operations was US$129 million
for the quarter, compared to US$141 million for the same period
in 2005.  For 2006, adjusted EBITDA from discontinued operations
was US$662 million, compared to US$610 million for the same
period in 2005.

                       Asset Sale Process

In December, Mirant entered into a definitive agreement for the
sale of its Philippine business.  The transaction is expected to
close in the second quarter of 2007.  In January, the company
entered into a definitive agreement for the sale of six U.S.
natural gas plants.  The transaction is expected to close in the
second quarter of 2007.  The sales process for the company's
Caribbean businesses is underway; the sale is expected to close
in mid-2007.

As previously announced, Mirant plans to continue returning
cash to its shareholders upon completion of its planned asset
and business sales.  The amount of cash returned will be
determined based on the outlook for the continuing business
(1) to preserve the credit profile of the continuing business,
(2) to maintain adequate liquidity for expected cash equirements
including, among other things, capital expenditures for the
continuing business, and (3) to retain sufficient working
capital to manage fluctuations in commodity prices.  Consistent
with Mirant North America's debt covenants, proceeds from the
sales of the Zeeland and Bosque plants, expected to be
approximately US$500 million, will be reinvested in and/or used
to retire debt of Mirant North America.

                       Chairman's Comment

"Mirant's strong financial performance and the return of US$1.3
billion to shareholders enabled us to create significant
shareholder value in the year since the company emerged from
bankruptcy," said Edward R. Muller, chairman and chief executive
officer.  "In addition, we have made significant progress on the
divestiture program announced in mid-2006."

                           Guidance

Mirant raised its 2007 adjusted EBITDA guidance from US$962
million to US$1.089 billion for continuing operations and
provided initial 2008 adjusted EBITDA guidance for continuing
operations of US$914 million.

The company also adjusted its projections for the capital
expenditures required to comply with the Maryland Healthy Air
Act.  Previously, the company had expected the expenditures to
be between US$1.3 to US$1.5 billion by the end of 2009.  In
light of changes in the scope of the work and rising costs for
materials, the company now expects those expenditures to be
approximately US$1.6 billion.

                        Earnings Call

Mirant hosted an earnings call to discuss its fourth quarter
2006 financial results and outline business priorities.  A
recording of the event is available for playback on the
company's Web site.  A replay is also available by dialing
888.203.1112 (International 719.457.0820) and entering the pass
code 2747399.

Mirant is a competitive energy company that produces and
sells electricity in the United States, the Caribbean, and
the Philippines.  Mirant owns or leases approximately 17,500
megawatts of electric generating capacity globally.  The company
operates an asset management and energy marketing organization
from its headquarters in Atlanta.  For more information, please
visit http://www.mirant.com/

A full-text copy of Mirant Corporation and its affiliate-
debtors' 10-K report is available at the Securities and Exchange
Commission at no charge at http://ResearchArchives.com/t/s?1b3a

                       About Mirant Corp.

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that  
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.

Mirant Corporation filed for chapter 11 protection on July 14,
2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of
a confirmed Second Amended Plan on Jan. 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.  The Debtors emerged
from bankruptcy on Jan. 3, 2006.  Mirant NY-Gen, LLC, Mirant
Bowline, LLC, Mirant Lovett, LLC, Mirant New York, Inc., and
Hudson Valley Gas Corporation, were not included and have yet to
submit their plans of reorganization.  (Mirant Bankruptcy News,
Issue No. 117; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


VULCAN INDUSTRIAL: Sets Record & Payment Dates for Stock Offer
--------------------------------------------------------------
In December 2000, Vulcan Industrial and Mining Corp.'s board of
directors approves the proposed increase of the company's
capital stock from PHP600 million to PHP1.5 billion.

Out of the PHP900 million increase in capitalization, the PHP600
million will be through private placement and the PHP300 million
is through pre-emptive offerings at 1:2 ratio, the company says.

In an update, Vulcan Industrial informs Philippine Stock
Exchange that its board, on March 13, has proposed the record
and payment dates for the stock offering.  According to the
company, March 30 is the proposed record date and while April 30
is the payment date.

The stock offering is still subject to approval of Securities &
Exchange Commission and PSE, the company notes.

Headquartered in Mandaluyong, Vulcan Industrial & Mining
Corporation is engaged mainly in oil and mineral exploration
projects.  One of its successful ventures is the concrete
aggregate project in Rodriguez, Rizal, which was spun-off into a
joint venture company called Vulcan Materials Corporation.  VMC
is on its tenth year of rock aggregate quarrying, crushing and
marketing.

VMC has an edge over the other rock aggregates companies due to
its captive market in D.M. Consunji, Inc., one of the giants in
the construction industry, which owns 49% of VMC, the remaining
51% is owned by Vulcan Industrial.

As of December 31, 2001, the Company is still in the exploration
stage and no discovery of oil and gas in commercial quantities
has been made.  The full recovery of deferred petroleum
exploration costs is dependent on the discovery of oil and gas
in commercial quantities.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
October 18, 2006, after auditing Vulcan Industrial's financial
report for the year ended December 31, 2005, Sycip, Gorres,
Velayo & Co. raised significant doubt on the Company's ability
to continue operating as a going concern due to its difficulty
in meeting its obligations to creditor banks.

The Company and its subsidiary's current liabilities exceeded
current assets by PHP227.1 million in 2005, and by PHP151.8
million in 2004, and its recurring losses are due to its share
in the net losses of subsidiary Vulcan Materials Corp.


WARNER MUSIC: Prepares Fresh Takeover Approach for EMI
------------------------------------------------------
Warner Music Group CEO Edgar Bronfman Junior is prepared to draw
a fresh takeover bid for EMI Group Plc, on condition that EMI
will consider a revised offer, reports say.

EMI rejected Warner's GBP2.1 billion non-binding takeover bid on
March 2, saying that the price of 260 pence per share in cash
for EMI is inadequate.

Warner approached EMI on Jan. 24, after it obtained the support
of Brussels-based Impala, a trade group for independent European
record labels ending its opposition to a Warner-EMI merger.  
Warner clarified Feb. 21 that any possible takeover offer for
EMI is likely to be solely in cash.

Analysts believed that an EMI-Warner merger could generate cost
savings of about GBP150 million a year.

EMI issued two profit warnings since January 2007.

                            About EMI

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent   
music company, operating directly in 50 countries and with
licensees in a further 20.  The group has operations in Brazil,
China, and Hungary.  The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.

                    About Warner Music Group

Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--   
is a music company that operates through numerous international
affiliates and licensees in more than 50 countries, including
the Philippines.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
March 1, 2007, Standard & Poor's Ratings Services placed its
ratings on Warner Music Group Corp., including the 'BB-'
corporate credit rating, on CreditWatch with negative
implications, following the company's statement that it
is exploring a possible merger agreement with EMI Group PLC (BB-
/Watch Neg/B), which EMI management has confirmed.


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

ADVANCED MICRO: Low Performance Cues Moody's to Cut Rating to B1
----------------------------------------------------------------
Moody's Investors Service lowered AMD's corporate family rating
to B1 from Ba3.  The outlook is stable.

The downgrade reflects AMD's weaker than expected operating
performance in the last two quarters and Moody's expectations
that the next couple of quarters will remain very challenging as
a result of Intel's strong competitive pressure as well as some
level of excess inventory at both AMD and Intel.

As a result, Moody's expects a continued aggressive pricing
environment over the near term, especially in the server market,
an area that had been a key driver to AMD's improved operating
results during 2006.  The company recently pre-announced weaker
than expected first quarter results that we believe reflect the
sector's challenges on both a unit as well as on an average
selling price basis.

Although the company's position in the server, desktop and
notebook business segments remains good, with its overall
microprocessor unit market share is near an all time high of
about 25%, AMD is at least a quarter away from providing its
customers with products at the next technology/performance node,
a level where Intel is now comfortably positioned.

Therefore, notwithstanding AMD's continued expansion into and
penetration of OEM customers, with Dell being the most notable
new customer in 2006, Moody's believes that AMD will be at a
cost and product disadvantage until it introduces and ramps more
advanced products toward the middle of 2007.

Moody's had commented last October that AMD's ratings could come
under pressure if:

   * AMD's profitability or market share were to materially
     erode for more than two consecutive quarters,

   * the company's currently good liquidity profile were to
     erode materially, thus impacting AMD's ability to make
     necessary investments in technology and manufacturing
     capacity, or

   * AMD did not make progress in reducing leverage as measured
     by balance sheet debt to EBITDA to approximately 1.2x by
     the end of fiscal 2007.

With the prospect of lower than previously anticipated revenue
combined with the high fixed cost nature of its business,
Moody's expects that operating profitability and cash flow
generation will be negatively impacted.

As a result, Moody's anticipates that AMD will be more
challenged than previously anticipated to internally fund the
build out of its 300 millimeter production capacity, which is
essential to AMD keeping pace with manufacturing cost reduction
and process node advances, while at the same time maintaining
strong balance sheet liquidity and reducing debt levels.

Elements that support AMD's stable outlook include:

   * the overall strength of AMD's product portfolio and
     roadmap, which Moody's believes should result in the
     maintenance of market share or even some expansion as
     personal computer manufacturers seek to better balance
     their sources of microprocessor supply;

   * AMD's broader and deeper penetration of OEM customers, and

   * the favorable intermediate term prospects for the ATI
     acquisition in enhancing AMD's competitive position in the
     broader and faster growing consumer electronics space,
     further diversifying the company's revenue base.

Notwithstanding the lower corporate family rating, the ratings
on the secured US$390 million notes and secured term loan remain
at Ba3, reflecting their superior position in AMD's capital
structure.

As Moody's commented last year, to the extent that secured debt
declines to below US$2.5 billion, the security package
benefiting the US$390 million senior note holders would be
released.  Absent any other change, such collateral release
would cause the then unsecured senior note rating to decline by
up to two notches from its existing Ba3 level, reflecting its
more junior position in AMD's capital structure.

Ratings revised:

   * Corporate Family Rating to B1 from Ba3

   * US$390 million senior secured note due August 2012 at Ba3,
     LGD3, 38% from 47%

   * US$2.5 billion senior secured term loan due 2013 at Ba3,
     LGD3, 38% from 47%

   * Probability-of-default rating to B1 from Ba3

AMD's ratings or outlook could come under downward pressure to
the extent that product launches are delayed, if it experiences
operating losses in the second half of 2007, or if cash levels
fall below $1 billion.

Alternatively, upwards rating pressure could emerge if AMD is
able to make progress towards sustainable free cash flow from
operations, which would enhance financial flexibility that is
critical in the capital intensive and volatile microprocessor
segment.

                            About AMD

Headquartered in Sunnyvale, California, Advanced Micro Devices,
Inc., -- http://www.amd.com/-- designs and manufactures  
microprocessors and other semiconductor products.

The company has a facility in Singapore.  It has sales offices
in Belgium, France, Germany, the United Kingdom, Mexico and
Brazil.


MICRO COMPONENT: Net Loss in 4th Qtr. 2006 Narrows to US$0.7MM
--------------------------------------------------------------
Micro Component Technology, Inc. reported results for its fourth
quarter and fiscal year ended December 31, 2006.  Net sales for
the fourth quarter ended December 31, 2006 were US$2.9 million,
a sequential increase of 42% from the fourth quarter of 2005.
The net loss for the current quarter was US$0.7 million or
US$0.02 per share compared to a loss of US$1.5 million or
US$0.20 per share in the fourth quarter of 2005.

Net sales for the year ended December 31, 2006 were US$12.2
million, an increase of 71.8% from net sales of US$7.1 million
in the prior year.  The net loss for the 2006 was US$3.7
million, or US$0.12 per share, compared to a net loss of US$5.1
million, or US$0.20 per share in the prior year.

MCT's Chief Executive Officer, Roger Gower, commented, "MCT in
2006 made strong progress from both the financial and marketing
standpoint.  Financially, the loss in 2006 of US$3.7 million
included non-cash charges of US$1.8 million related to debt
issuance costs and the conversion from debt to equity of US$2.1
million of convertible notes.  In addition, our EBITDA for 2006
was approximately US$250,000, reflecting the impact of strong
gross margins and the stringent expense controls implemented in
2006. From a market perspective, MCT introduced its new Tri Temp
Tapestry product in June 2006 and received orders of over US$3.6
million for this product during the remainder of 2006.  This
momentum is continuing into 2007, new orders of US$2.3 million
for the Tri Temp Product have already been received this year."
MCT, Inc.

                       Going Concern Doubt

Virchow, Krause & Company, LLP, expressed substantial doubt
about Micro Component's ability to continue as a going concern
after auditing the Company's financial statements for the years
ended Dec. 31, 2005, 2004 and 2003.  The auditing firm pointed
to the Company's recurring losses from operations and has a
stockholders' deficit

                      About Micro Component

Micro Component Technology, Inc. -- at http://www.mct.com--  
supplies integrated automation solutions for the global
semiconductor test and assembly industry.  MCT offers complete
and comprehensive equipment automation solutions for the test,
laser mark handling equipment, mark inspect, singulation, sort,
and packaging for shipment portions of the back-end of the
semiconductor manufacturing process that significantly improve
our customers' productivity, yield and throughput.  The company
has facilities in Malaysia, the Philippines and Singapore.


REFCO INC: Crisis Managers Want US$7.4 Mil. in Success Fees Paid
----------------------------------------------------------------
AP Services, LLC, and Goldin Associates, LLC, ask the United
States Bankruptcy Court for the Southern District of New York to
compel Refco, Inc., and its debtor-subsidiaries to pay them
contingent success fees totaling US$7,430,433 for services
rendered as crisis managers in the Debtors' Chapter 11 cases.

Specifically, APS seeks approval of a US$5,000,000 Success Fee
consistent with the terms of its Court-approved engagement
letter with the Debtors, dated Oct. 18, 2005.

Goldin seeks payment of a US$2,430,433 Success Fee in connection
with its engagement as crisis manager for Refco, including
services performed by Harrison J. Goldin, as chief executive
officer; David Pauker and Mark Slane, as chief restructuring
officers; and Jerry Lombardo, as chief financial officer.

The Goldin Success Fee represents a 25% premium to the hourly
fees paid to Goldin in connection with its Engagement Letter
with the Debtors, dated Jan. 5, 2006.

APS and Goldin believe that the exceptional results they
achieved in Refco's successful cases in a narrow time frame, as
well as their relevant contributions, fully merit the award of
the requested Success Fees.

                   APS US$5,000,000 Success Fee

Sheldon S. Toll, Esq., at Sheldon S. Toll PLLC, in Southfield,
Michigan, tells Judge Drain that amid the chaos from the
Debtors' bankruptcy filing through the effective date of the
Reorganized Debtors' Chapter 11 Plan, APS has expended
incredible crisis management efforts around the world to ensure
a timely and orderly wrap-up of the Debtors' affairs, while
seeking to maximize the cash available to their creditors.

According to Mr. Toll, the APS team, working with the other
retained firms in the Debtors' cases, led certain key aspects
and contributed significantly to the overall success and prompt
wind-down of the Refco business by:

   (1) managing the lengthy and complex post-closing processes
       of the Man Financial Inc. transaction, which included
       Refco's largest U.S. operation and related international
       entities in the United Kingdom, Canada, and Asia;

   (2) working with management and parties-in-interest to wind
       down Refco Securities, LLC, out of court, hence, saving
       substantial direct costs and accelerating the speed of
       the case;

   (3) analyzing customer accounts with and assets and
       liabilities of Refco Capital Markets, Ltd., which effort
       provided valuable insights to the Debtors and creditors
       during the customer litigation and RCM customer
       settlement process, and enabled prompt initial
       distributions to creditors after the Plan Effective Date;

   (4) leading intercompany analysis, providing creditors and
       debtors with valuable insights into the company's
       intercompany accounts and historical transactions, and
       providing information necessary for the parties to
       conduct Plan negotiations;

   (5) separating information technology function from Man
       Financial subsequent to the acquisition, and leading the
       development of an independent estate IT function; and

   (6) leading the claims analysis and resolution efforts for
       the Debtors, which led to the resolution to a substantial
       number of claims before the Effective Date and enabled
       distribution of over US$1,400,000,000 in cash to RCM
       creditors in December 2006 -- within two days after the
       Effective Date.

Other estate management issues addressed by the APS team include
liquidity and cash management; wind-down of fund management
business; wind-down of Refco F/X Associates, LLC; human
resources and facilities management; and general case
management.

Mr. Toll asserts that APS has played a key role in worldwide
asset sales and orderly liquidations that will result in over
US$1,000,000,000 in cash to the Debtors' estates.

Mr. Toll also points out that the APS role has been key not only
to the negotiation of various asset purchase agreements and
planning of orderly wind downs, but also key in leading
implementation of those initiatives, as well as in the absence
of any management structure.  In addition, APS has enabled the
estate to preserve value through management of complex post
petition negotiations, with estimated proceeds totaling up to
US$1,283,200,000, he states.

Mr. Toll notes that during the Debtors' case, neither APS nor
other retained firms were paid on a current basis.  Thus, he
says, APS and the other firms were effectively uncompensated DIP
lenders to the estate.  He adds that the estates benefited
because they would have had to borrow at rates in excess of 11%
if they could have borrowed at all.  APS' average monthly unpaid
balance from the Debtors' bankruptcy filing through the
Effective Date was over US$7,000,000, he discloses.

Mr. Toll acknowledges other retained firms and individuals who
played important roles in the Reorganized Debtors' cases.  He
maintains, however, that the successful results would not have
occurred without the APS team efforts.

Mr. Toll insists that the APS Success Fee is appropriate because
it was included in the US$180,000,000 fee cap computation, and,
thus should be approved.

                  Goldin's US$2,430,433 Success Fee

Steven J. Reisman, Esq., at Curtis, Mallet-Prevost, Colt & Mosle
LLP, in New York, states that Goldin played a significant role
in organizing a consensual Chapter 11 Plan in the Debtors' cases
by providing interim management and restructuring services to
the Debtors.  Goldin also:

   (a) orchestrated and led a strategy based on full cooperation
       with all governmental investigations in connection with
       the alleged fraud present in the Debtors' cases;  

   (b) led negotiations that successfully resolved all issues
       concerning RSL distribution;

   (c) worked for the Reorganized Debtors' overseas operations
       to ensure distributions of foreign subsidiaries and
       affiliates;

   (d) sought to maximize the number of qualified estate
       personnel regarding the Debtors' human resource
       activities and functions; and

   (e) was responsible for overseeing the accounting, financial
       reporting and related activities.

Mr. Reisman notes that Goldin continued to be involved in
maximizing future distributions to customers and facilitating
orderly resolution of the issues facing RCM, even after the RCM
estate came under the separate management of a Court-appointed
trustee.

Mr. Reisman says Goldin was also involved in formulating and
executing numerous strategies to maximize recoveries to Refco
from Refco, LLC, by providing extensive resources of the parent
company and its professionals to support the activities of
Albert Togut, as Chapter 7 Trustee for the Refco LLC estate.

Moreover, Mr. Reisman states, Goldin played a key role in
representing the interests of the FXA creditors during the Plan
negotiations, and actively negotiated to obtain numerous
improvements, including increased cash, reduced expenses and
interests in a litigation trust.

Mr. Reisman further discloses that Goldin minimized the costs to
the estates of outside management consultants throughout the
bankruptcy proceedings by reducing the combined Goldin/AP
Services, LLC, interim management staff from 23 in January 2006,
to 12 by December 2006.

Through the final quarter of 2006, Goldin was paid US$9,721,734
in fees and reimbursed US$106,107 in expenses for services
rendered during the Debtors' cases, Mr. Reisman states.

"Given the extraordinary circumstances presented when Goldin was
retained to take over management, a success fee is a normal and
expected component of compensation," Mr. Reisman asserts.

The Court will convene a hearing on April 11, 2007, at 10.00
a.m. to consider approval of the APS and Goldin Success Fees.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a  
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.  The Debtors' Amended Plan was confirmed on Dec. 15,
2006.  (Refco Bankruptcy News, Issue No. 58; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or    
215/945-7000).


REFCO INC: Ch. 7 Trustee Wants Lease-Decision Deadline Extended
---------------------------------------------------------------
Albert Togut, the Chapter 7 Trustee overseeing the liquidation
of Refco LLC's estate, asks the Honorable Robert D. Drain of the
U.S. Bankruptcy Court for the Southern District of New York to
extend the Lease Decision Deadline until May 9, 2007, without
prejudice to the rights of (i) any non-debtor counterparties to
seek an earlier date upon which the Trustee must assume or
reject a specific contract, and (ii) the Trustee to seek a
further extension, if necessary and appropriate.

The Chapter 7 Trustee tells the Court that as of Jan. 16, 2007,
he has completed his evaluation of the Debtor's executory
contracts and contacted various parties to negotiate
modifications to certain terms and conditions of seven remaining
contracts so that they may be assumed.

The Chapter 7 Trustee expects to reach agreements to assume, or
assume as modified, the Remaining Contracts, and is hopeful that
the process can be completed within the next 60 days.

Currently, the Remaining Contracts that have not yet been
assumed or rejected pertain to document and electronic data
storage services that are continuously used in connection with
the administration of the Debtor's estate, Scott E. Ratner,
Esq., at Togut, Segal & Segal LLP, in New York, states.  The
Remaining Contracts also relate to documents that may be
required to be maintained and stored under applicable
commodities or other law.

Counterparties to the Remaining Contracts are:

   * Archives One, Inc. - New York,
   * GRM - Chicago,
   * Iron Mountain Information Management, Inc.,
   * Iron Mountain Off-Site Data Protection, Inc.,
   * Data Impact, also known as Speedscan, Inc.,
   * Vanguard Archives, Inc. - Chicago.

Mr. Ratner asserts that the extension is necessary and
appropriate and will assist the Chapter 7 Trustee in maximizing
the value of Refco LLC's estate for the benefit of creditors.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a  
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.  The Debtors' Amended Plan was confirmed on Dec. 15,
2006.  (Refco Bankruptcy News, Issue No. 58; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or    
215/945-7000).


REFCO INC: Administrators Want Until Apr. 30 to Object to Claims
----------------------------------------------------------------
RJM LLC, the duly appointed administrator of Refco Inc.'s case,
and Marc S. Kirschner, the duly appointed administrator and
Chapter 11 Trustee of Refco Capital Markets, Ltd.'s estate, ask
the Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York to extend the Administrative
Claims Objection Deadline through and including April 30, 2007.

Upon the Effective Date of the Chapter 11 Plan filed by Refco
Inc., and its debtor-subsidiaries, the plan administrators
assumed the rights, powers, and duties of the Reorganized
Debtors and RCM on the estates' behalf.

Under the Plan Confirmation Order, the Court set Jan. 25, 2007,
-- 30 days after the Effective Date -- as the deadline to file
an administrative expense priority claim.

Steven Wilamowsky, Esq., at Bingham McCutchen LLP, in New York,
relates that before the expiration of the Administrative Claims
Bar Date, over 200 administrative claims have been filed against
the Refco estates.  

On Feb. 9, 2007, the Plan Administrators, on behalf of Refco F/X
Associates, LLC, objected to approximately 150 administrative
expense claims filed against FXA.

Over the course of the Debtors' Chapter 11 cases, a number of
administrative expense claims have been resolved by Court order
or by consent of the parties, Mr. Wilamowsky notes.

The Plan Administrators continue to reconcile the remaining
Administrative Claims filed against the Chapter 11 estates.

According to Mr. Wilamowsky, the Plan defines "Administrative
Claims Objection Deadline" as the last day for filing an
objection to any request for the payment of an Allowed
Administrative Claim, which will be:

   (a) the later of 60 days after the Effective Date, or 30 days
       after filing an Administrative Claim; or

   (b) other date specified in the Plan or ordered by the
       Court.

Mr. Wilamowsky points out that since the Effective Date occurred
on Dec. 26, 2006, the Administrative Claims Objection
Deadline is presently Feb. 26, 2007, and not Jan. 25, 2007.

The Plan Administrators state that by virtue of filing their
request, the Administrative Claims Objection Deadline is
automatically extended until entry of an order approving or
denying the extension.

The Plan Administrators assert that an extension of the
Administrative Claims Objection Deadline is appropriate to
complete the administrative claims reconciliation process and to
help ensure that all non-meritorious administrative claims are
appropriately challenged.

Furthermore, the Plan Administrators believe that the extension
is particularly important to ensure that no unwarranted
administrative expense claims are allowed simply by virtue of
the passage of time; allowed administrative expense claims are
required to be paid in full under the Plan, and, thus have a
greater relative impact upon recoveries to prepetition unsecured
creditors, who are expected to receive only a fraction of the
allowed amounts of their claims.

While the need to seek additional extensions is not anticipated,
the Plan Administrators reserve the right to seek further
extensions of the Administrative Claims Objection Deadline.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a  
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.  The Debtors' Amended Plan was confirmed on Dec. 15,
2006.  (Refco Bankruptcy News, Issue No. 58; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or    
215/945-7000).


SEA CONTAINERS: Jan. 31 Balance Sheet Upside-Down by US$166 Mil.
----------------------------------------------------------------
                     Sea Containers, Ltd.
                    Unaudited Balance Sheet
                    As of January 31, 2007

                            Assets

Current Assets
   Cash and cash equivalents                      US$54,289,351
   Trade receivables, less allowances
     for doubtful accounts                                    -
   Due from related parties                           7,758,745
   Prepaid expenses and other current assets          6,478,060
                                                   ------------
      Total current assets                        US$68,526,156

Fixed assets, net                                             -

Lont-term equipment sales receivable, net                     -
Investments in group companies                                -
Intercompany receivables                                      -
Investment in equity ownership interests            209,015,333
Other assets                                          3,226,962
                                                   ------------
Total assets                                     US$280,768,451

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$2,031,753
   Accrued expenses                                  33,996,232
   Current portion of long-term debt                 26,411,239
   Current portion of senior notes                  385,125,608
                                                   ------------
      Total current liabilities                     447,564,832

Total shareholders' equity                         (166,796,381)
                                                   ------------
Total liabilities and shareholders' equity        US$280,768,451

                     Sea Containers, Ltd.
               Unaudited Statement of Operations
             For the Month Ended January 31, 2007

Revenue                                            US$1,450,454

Costs and expenses:
   Operating costs                                     (100,063)
   Selling, general and
     administrative expenses                            892,796
   Reorganization costs                                       -
   Charges to provide against
     intercompany accounts                          (14,914,955)
   Depreciation and amortization                              -
                                                   ------------
      Total costs and expenses                      (14,122,222)
                                                   ------------

Gain or (Loss) on sale of assets                        272,531
                                                   ------------
Operating income (loss)                              15,845,207

Other income (expense)
   Interest income                                        5,393
   Foreign exchange gains or (losses)                   (53,776)
   Interest expense, net                             (3,508,109)
                                                   ------------
Income (Loss) before taxes                           12,288,715
Income tax expense                                     (100,000)
                                                   ------------
Net (Loss)                                        US$12,188,715

Sea Containers, Ltd., also reported US$1,781,721 in cash
receipts and US$1,889,159 in disbursements for January 2007.

                    Sea Containers Services
                    Unaudited Balance Sheet
                    As of January 31, 2007

                            Assets

Current Assets
   Cash and cash equivalents                         US$206,104
   Trade receivables                                    185,845
   Due from related parties                           5,070,228
   Prepaid expenses and other current assets          4,821,696
                                                   ------------
      Total current assets                           10,283,873

Fixed assets, net                                     3,077,947

Investments                                           2,637,008
Intercompany receivables                             43,483,537
Other assets                                          3,654,824
                                                   ------------
Total assets                                      US$63,137,188

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$2,197,677
   Accrued expenses                                   4,159,988
   Current portion of long-term debt                  1,679,853
                                                   ------------
      Total current liabilities                       8,037,519

Total shareholders' equity                           55,099,669
                                                   ------------
Total liabilities and shareholders' equity        US$63,137,188

                    Sea Containers Services
               Unaudited Statement of Operations
             For the Month Ended January 31, 2007

Revenue                                              US$818,278

Costs and expenses:
   Operating costs                                            -
   Selling, general and
     administrative expenses                            554,441
   Professional Fees                                     68,555
   Other charges                                              -
   Depreciation and amortization                        119,809
                                                   ------------
      Total costs and expenses                          742,805
                                                   ------------

Gains on sale of assets                                       -
                                                   ------------
Operating income (loss)                                  75,474

Other income (expense)
   Interest income                                            -
   Foreign exchange gains (losses)                        5,819
   Interest expense, net                                (13,136)
------------
Income (Loss) before taxes                               68,157
Income tax credit                                             -
                                                   ------------
Net Income                                            US$68,157

Sea Containers Services recorded US$1,621,872 in cash receipts
and US$1,473,529 in disbursements for January 2007.

A full-text copy of Sea Containers Services and Sea Containers
Ltd.'s schedules of receipts and disbursements is available for
free at http://researcharchives.com/t/s?1b06   

Sea Containers Carribean, Inc., reported zero assets and
accounts payable of US$3,530,094, as its sole liability, in its
January 2007 balance sheet.

                      About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA,
SCRB)-- http://www.seacontainers.com/-- provides passenger and  
freight transport and marine container leasing.  Registered in
Bermuda, the company has regional operating offices in London,
Genoa, New York, Rio de Janeiro, Sydney, and Singapore.  The
company is owned almost entirely by United States shareholders   
and its primary listing is on the New York Stock Exchange (SCRA
and SCRB) since 1974.  On October 3, the company's common shares
and senior notes were suspended from trading on the NYSE and  
NYSE Arca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.

The Debtors' exclusive period to file a plan expires on June 12,
2007.  Their exclusive period to solicit acceptances expires on  
Aug. 11, 2007.  (Sea Containers Bankruptcy News, Issue No. 12;  
Bankruptcy Creditors' Service, Inc.  
http://bankrupt.com/newsstand/or 215/945-7000)


SPECTRUM BRANDS: Gets US$1.6-Bil. Pledge to Refinance Bank Loan
---------------------------------------------------------------
Spectrum Brands Inc. reported that Goldman Sachs and Bank of
America have provided a commitment to refinance Spectrum Brands'
existing bank credit facility.  This commitment provides for a
new bank credit facility in the aggregate principal amount of at
least US$1.6 billion with a six-year maturity.  The refinancing
will be completed by March 30, 2007.

Spectrum Brands President and Chief Executive Officer David
Jones stated: "We are very pleased to have reached this
refinancing agreement, which will provide us with the financial
flexibility to pursue additional steps to improve our capital
structure in an orderly manner, while continuing to strengthen
our operating businesses.  We remain keenly focused on
completion of asset sales to reduce our outstanding debt and
leverage.  We believe the Company is on the right track to
creating long-term sustainable value."

The commitment of Goldman Sachs and Bank of America is subject
to customary terms and conditions, including negotiation and
execution of definitive loan documentation.  Goldman Sachs will
lead the refinancing and act as joint lead arranger, joint
bookrunner and sole syndication agent.  Bank of America will act
as joint lead arranger and joint bookrunner. There can be no
assurances that the anticipated refinancing will be completed
or, if completed, what the time or terms of such transaction
will be.

                      About Spectrum Brands

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products  
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world.  The company has manufacturing
and distribution facilities in China, Australia and New Zealand,
and sales offices in Melbourne, Shanghai, and Singapore.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Feb.
13, 2007, that Standard & Poor's Ratings Services lowered all of
its ratings on Atlanta, Georgia-based Spectrum Brands Inc.,
including the company's corporate credit rating, which was
lowered to 'CCC+' from 'B-'.

The outlook is developing.

Moody's Investors Service confirmed Spectrum Brands Inc.'s B3
Corporate Family Rating in connection with the rating agency's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology.


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

ABICO HOLDINGS: SET to Keep "SP" Sign Until Rehab Plan Is Ready
---------------------------------------------------------------
The Stock Exchange of Thailand has not yet removed the "SP" sign
on Abico Holding's securities -- which means suspended trading
-- because the company still needs to prepare and submit a
rehabilitation plan.

The SET noted, however, that Abico Holdings has submitted its
audited financial statements, both in Thai and English versions,
for the period ending Dec. 31, 2006, and 2005.

                   About Abico Holdings PCL

Headquartered in Pathumthani, Thailand, Abico Holdings Public
Company Limited -- http://www.abicogroup.com/-- is into trading   
palm oil, real estate development and raw milk producer and
distributor.

On Apr. 12, 2004, Thailand's Central Bankruptcy Court issued an
order for the rehabilitation of the Company and appointed the
Company as its own rehabilitation plan manager.  The Company's
rehabilitation plan was then approved by creditors and the
Central Bankruptcy Court.

The Troubled Company Reporter - Asia Pacific reported on
Mar. 5, 2007, that the Stock Exchange of Thailand placed "SP" or
suspension sign on Abico Holdings' securities due to the
company's failure to timely submit its financial statements for
the period ending Dec. 31, 2006.


DAIMLERCHRYSLER: CAW Local 1285 Members Votes for New Agreement
---------------------------------------------------------------
Canadian Auto Workers Local 1285 members who work at
DaimlerChrysler's Brampton, Ont., car assembly plant voted
overwhelmingly to an agreement that helps secure new work at the
facility.

More than 2,800 members attended a packed meeting.  
CAW production members voted 78% in favor and skilled trades
members voted 95% in favor of the agreement that will come into
force when new products come into the plant, which currently
produces the Chrysler 300, the Dodge Magnum and Dodge Charger.

Bob Chernecki, assistant to the CAW President, spoke to the
members about the tough environment facing domestic automakers
and the challenging times that have created so much insecurity
in auto producing communities.

"Our members work hard to produce high quality vehicles and they
made a difficult decision [this]day that will help provide a
more secure future for themselves, their families and their
community," Mr. Chernecki said.

Ardis Snow, Local 1285 unit chairperson at DaimlerChrysler,
said, "It was a very hard decision for the members to make, but
they looked at the long term future for themselves and their
families.  As the new plant chairperson I have a lot of work
ahead of me to unite the membership and the leadership," Mr.
Snow said.

Ken Lewenza, chairperson of the CAW's DaimlerChrysler master
bargaining committee, said, "There is obviously a lot of
uncertainty in the auto industry and our members continue to
express frustration and concern about the future."

                     About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DAIMLERCHRYSLER: Sells EUR2 Bil. 4.375% Bonds Due March 2010
------------------------------------------------------------
DaimlerChrysler AG sold EUR2 billion of 4.375% bonds due
March 2010 at a yield premium or a spread of 35 basis points
over the mid-swaps rate, the Budapest Business Journal reports
citing Bloomberg as its source.

Investors earlier demanded the highest risk premiums to hold the
company debt in at least a month after a rise in supreme
mortgage failures.

According to Mahmoud El-Shaer, who helps manage about
US$35 billion of fixed-income assets for State Street Investment
Management in London, the market is entering into a more normal
phase following a period of volatility, BBJ relates.

Mr. E-Shaer said speculations that DaimlerChrysler will
successfully find a buyer for its unprofitable Chrysler division
may have also helped boost demand for the bonds.

However, a company spokeswoman refused to disclose details on
how the automobile manufacturer intends to use the proceeds of
the sale.

According to data compiled by Bloomberg, DaimlerChrysler has up
to EUR8.3 billion of bonds maturing this year.  Commerzbank AG,
Royal Bank of Scotland Group Plc and UniCredit SpA is managing
the sale of the debt.

The company's bonds reported a gain on Feb. 14 after
DaimlerChrysler CEO Dieter Zetsche disclosed that his company is
keeping all options open, including a sale or possible
partnerships, for its loss-making Chrysler division.

                     About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


PHELPS DODGE: Fitch Cuts 7.375% Notes' Rating to BB- from BBB
-------------------------------------------------------------
Fitch assigned the ratings to Freeport-McMoRan Copper & Gold and
downgraded the ratings of Phelps Dodge in connection with FCX's
pending acquisition of Phelps Dodge for approximately
US$25.9 billion in cash and stock.

The transaction is subject to the approval of the shareholders
of FCX and Phelps Dodge; the vote is scheduled Mar. 14, 2007
with closing expected Mar. 19, 2007.  The transaction is
expected to give rise to about US$16 billion in additional debt.

Assigned:

   * Freeport-McMoRan Copper & Gold

      -- Issuer Default Rating 'BB';

      -- US$500 million PT Freeport Indonesia/FCX Secured Bank
         Revolver 'BBB-';

      -- US$1 billion Secured Bank Revolver 'BB';

      -- US$2.5 billion Secured Bank Term Loan A 'BB';

      -- US$7.5 billion Secured Bank Term Loan B 'BB';

      -- Existing Notes to be secured 'BB';

      -- 10.125% senior notes due 2010;

      -- 6.875% notes due 2014;

      -- 7% convertible notes due 2011 'BB-';

      -- FCX New Unsecured Notes due 2015 and 2017 at 'BB-'; and

      -- FCX Convertible Preferred Stock at B+.

   * Phelps Dodge

      -- Cyprus Amax 7.375% Notes due May 2007, to be secured
         and to be guaranteed by FCX downgraded from 'BBB' to
         'BB-';

      -- Senior Unsecured Notes and Debentures to be guaranteed
         by FCX downgraded from 'BBB' to 'BB-';

      -- 8.75% notes due 2011;

      -- 7.125% debentures due 2027;

      -- 9.50% notes due 2031; and

      -- 6.125% notes due 2034.

Phelps Dodge Bank Revolver ratings have been withdrawn.

Some US$18.7 billion in securities are affected.  The Ratings
Outlook is Stable.  The debt ratings of Phelps Dodge have been
removed from Ratings Watch Negative.

Pro Forma Dec. 31, 2006 Debt of about US$17.6 billion compares
at 2.26x pro forma 2006 EBITDA of US$7.8 billion.  Fitch notes
that earnings and cash flows are highly levered to metals prices
and US$0.20/lb. decline in copper prices could cut EBITDA by
US$800 million over a twelve month period.  In particular, the
price of copper averaged $3.05/lb. on the London Metal Exchange
in 2006 and $2.57/lb. for the first two months of 2007.

Liquidity is quite strong with slight usage expected on the
US$1.5 billion in revolvers for letters of credit.  Pro forma
Dec. 31, 2006 cash balances are US$3.4 billion.

Results of both companies continue to benefit from strong metals
prices albeit at lower levels than the very high prices in 2006.
Metals prices, over the short to medium term, should allow
significant debt reduction and permit leverage to remain in a
range consistent with the ratings in a modestly lower earnings
environment.

The PT Freeport Revolver benefits from a superior security
package and therefore warrants a higher rating than the IDR.

The bank facilities and some of FCX's notes will be secured by:

   * the stock of certain domestic subsidiaries and 65% of
     certain first-tier foreign subsidiaries,

   * the intercompany indebtedness owed to FCX by its
     subsidiaries, and

   * deposits and investment accounts of FCX and will be
     unconditionally guaranteed by certain of FCX's existing and
     subsequently acquired or organized subsidiaries.

The Cyprus Amax Notes will be secured by pledges of the
outstanding shares of capital stock of Phelps Dodge's wholly
owned domestic subsidiaries and a portion of the capital stock
of Phelps Dodge's wholly owned first-tier foreign subsidiaries;
these are due in the very near term and repayment is supported
by strong liquidity.

                    About Phelps Dodge Corp

Phelps Dodge -- http://www.phelpsdodge.com/-- is among the   
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.

Phelps Dodge has operations in Thailand, China, the Philippines
and Japan, among others.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
March 6, 2007, Moody's Investors Service affirmed the B1 (LGD4,
63%) rating on Phelps Dodge's Cyprus Amax notes and on Phelps
Dodge's other existing senior unsecured notes.





                            *********

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
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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.  
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sheet for liabilities that may never materialize.  The prices at
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                            *********


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, Rousel Elaine Tumanda, Valerie
Udtuhan, Francis James Chicano, Catherine Gutib, Tara Eliza
Tecarro, Freya Natasha Fernandez, and Peter A. Chapman, Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
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                 *** End of Transmission ***