TCRAP_Public/070320.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  

             Tuesday, March 20, 2007, Vol. 10, No. 56

                            Headlines

A U S T R A L I A

AGRITRADE INTERNATIONAL: Placed Under Members' Voluntary Wind-Up
AINSWORTH GAME: Receives Licenses for Pennsylvania & Wisconsin
ARNOTT NOMINEES: Members & Creditors Set to Meet on April 11
BESHOLD PTY: To Declare Final Dividend on April 4
CBH RESOURCES: Becomes Substantial Shareholder in Tennant Creek

ELDER & ROSE: To Declare Final Dividend on March 28
EVERETT & STEELE: Will Declare Dividend on March 30
FORTESCUE METALS: Rail Construction Faces Delay Due to Cyclone
HUTCHISON TELECOMMUNICATIONS: To Raise AU$2.85 Bln. to Pay Debt
LONERGAN PTY: Creditors' Proofs of Debt Due on March 16

PRIMELIFE CORPORATION: Court Orders Wind-Up of Two Schemes
PRIMELIFE CORPORATION: Issues 25 Million New PLFGA Notes
SKYRISE HOLDINGS: Commences Wind-Up Proceedings
SUNCORP-METWAY: To Explore Takeover Opportunities After Merger
THE NEW MANAGEMENT: Members & Creditors Set to Meet on April 10

TOWNSVILLE CUSTOM: Creditors' Final Meeting Set for April 3
VADA PTY: Liquidators to Present Wind-Up Report
WINNING DIRECTIONS: Members & Creditors to Hear Wind-Up Report


C H I N A   &   H O N G  K O N G

ASIA ALUMINUM: Moody's Affirms B1 Ratings; Outlook Stable
BALLY TOTAL: Faces Default Due to Delayed Form 10-K Filing
BALLY TOTAL: May File for Chapter 11 Bankruptcy Protection
BALLY TOTAL: Share Price Falls 62% on News of Likely Bankruptcy
CHINA MINSHENG: Completes Details on A-Shares Sale

CHINA SOUTHERN: To Start Dubai-Guangzhou Route on March 26
CITIC KA WAH: Inks Technology Partnership with HP
CITIC PACIFIC: 2006 Net Profit Doubles to HK$8.27 Billion
CITIMIND LIMITED: Members' Final Meeting Slated for April 16
CLINICAL RESEARCH: Final General Meeting Set for April 11

DENSEN DEVELOPMENT: Final General Meeting Set for April 11
EXCEL DENTAL: Contributories & Creditors to Meet on March 16
HUNG FAT: Faces Tse Lok Ling's Wind-Up Petition
KENSWICK BERCHTOLD: Liquidator to Give Wind-Up Report on Apr. 11
LARAMI FAR EAST: Members' Final Meeting Set for April 13

MINSEC MANAGEMENT: Members to Hold Final Meeting on April 16
NICE DEVELOPMENT: Commences Wind-Up Proceedings
ORIENTAL TEAM: Members to Receive Wind-Up Report on April 10
WANG CHEONG: Court to Hear Wind-Up Petition on April 25


I N D I A

BALLY TECHNOLOGIES: Posts US$46.1MM Net Loss in 2006 Fiscal Year
BALLY TECHNOLOGIES: Inks Chickasaw Deal to Provide Mgmt. Systems
BRITISH AIRWAYS: Committee Blames Poor Mktg. for Scheme Failure
BRITISH AIRWAYS: Opposes Conservative Party's Taxation Proposals
DENA BANK: Fitch Affirms 'D/E' Individual and '4' Support Rating

DENA BANK: Net Profit Down 15% to INR705.3MM in Dec. 2006 Qtr.
ESSAR OIL: Obtains Shareholders' Consent on Delisting
HDFC BANK: Venkat Rao Gadwal Quits from Director Post
HDFC BANK: To Vest 41,79,700 Stock Options under ESOS
TATA MOTORS: CRISIL Reaffirms Ratings of Two Debt Programmes


I N D O N E S I A

ALCATEL-LUCENT: Completes UMTS/HSDPA Network Deployment with O2
ALCATEL-LUCENT: To Deploy First Urban WiFi Network in Trento
APEXINDO PRATAMA: Gets Drilling Contracts Totaling US$22.5 Mil.
BANK MANDIRI: Sets Aside IDR11 Tril. for Small-Scale Plantations
BANK MANDIRI: Wants to Double Market Value by 2010

EXCELCOMINDO PRATAMA: Applies for Low-Cost Service License
EXCELCOMINDO PRATAMA: Pefindo Assigns 'idAA-' Ratings
NORTEL NETWORKS: Reports Results for 4th Qtr. and Full Year 2006
ORBITAL SCIENCES: Earns US$7.8 Mil. in Quarter Ended December 31
PERTAMINA: Bids for 100% Stake in Polyprima Karyareksa


J A P A N

AMERICAN AIRLINES: Pilots Want To Maintain Retirement Age at 60
ASHIKAGA BANK: Fitch Affirms Individual Rating at 'E'
BANK OF FUKUOKA: To Be Replaced by Fukuoka Fin'l in S&P Indices
FURUKAWA ELECTRIC: S&P Lifts Long Term Rating to BB From BB-
MIZUHO FINANCIAL: Calyon Files US$750MM Suit Over Staff Poaching

NOMURA HOLDINGS: Enters Into Consulting Pact with Vietnam's SCIC
NORTHWEST AIRLINES: Court Extends Exclusive Periods to June 29
SAPPORO HOLDINGS: Backs Plan to Implement Defense Measures
US AIRWAYS: Employees Share US$58.7 Million Earnings in 2006
US AIRWAYS: Fitch Upgrades Issuer Default Rating to B-

USINAS SIDERURGICAS: Investing US$4.7B to Hike Steel Production
USINAS SIDERURGICAS: Will Do Well in 2007, Says Unibanco


K O R E A

KOREA EXCHANGE BANK: Lone Star Rejects Audit Results


M A L A Y S I A

MALAYSIA AIRLINES: Airbus A350 Orders May Not Push Through
MALAYSIA AIRLINES: Mulls Entry Into Other Aircraft Industry
PROTON HOLDINGS: In "Advanced" Talks w/ VW over Partnership Deal
PROTON HOLDINGS: Enters Indonesian Market; To Open 10 Centers
STAR CRUISES: Superstar Libra for Seasonal Deployment in Taiwan

SUNWAY INFRASTRUCTURE: Hits New Amended PN17 Listing Criteria
SUREMAX GROUP: AIBB Demands MYR3.07 Million on Judgment Payment
SUREMAX GROUP: Unit Agrees to Sell Land Asset for MYR175 Million
TALAM CORP: Provisional Liquidator Named on Unit's Wind-Up
TAP RESOURCES: Unit's Members Okay Voluntary Liquidation


N E W   Z E A L A N D

AIR NEW ZEALAND: Pilots to Appeal Holiday Entitlements Decision
AIR NEW ZEALAND: Expands Sales & Mktng. Agreement with Discover
AIR NEW ZEALAND: Season Change Prompts Flight Adjustments
DEBT RELIEF: Placed in Liquidation with NZ$1.7 Million in Debts
GENESIS RESEARCH: To Hold Annual Meeting on May 25

GLASS EARTH: Changes Financial Year-End to December 31
GLASS EARTH: Says CDN$6.9 Million Cash Sufficient Until Mid-2008
GLASS EARTH: To Issue Unlimited Number of Common Shares


P H I L I P P I N E S

FIL-ESTATE CORP: To Acquire 30% Stake in Camp John Hay Dev't.
MARIWASA MANUFACTURING: Signs PHP1.6BB Debt Restructuring Pact


S I N G A P O R E

LEAR CORP: Faces ERISA Violations Suit Over US$2.31-Bil. Sale
LEAR CORP: Faces Lawsuits Over US$2.31 Bil. Sale to Carl Icahn
LEAR CORP: To Supply Seating Systems to Bombardier Recreational
SEA CONTAINERS: Files Updated Operating Report for October 2006
SEA CONTAINERS: Files Updated Operating Report for November 2006

SEA CONTAINERS: Files Updated Operating Report for December 2006
SHIP FINANCE: Sells VLCC Front Vanadis to TMT Subsidiary


T H A I L A N D

BANK OF AYUDHYA: To Launch New Online and Mobile Services in 07
BANK OF AYUDHYA: Lowers Interest Rates by .25%
DAIMLERCHRYSLER AG: Equity Groups Want Bernhard as Advisor
DAIMLERCHRYSLER AG: Workers Opt for More Jobs Over Pay Cuts
PHELPS DODGE: DBRS Downgrades Rating on Senior Notes to BB (Low)

PHELPS DODGE: Freeport Prices Notes Offering to Finance Buy
SIAM COMMERCIAL: Appoints New Senior Executive Vice President


* BOND PRICING: For the Week 12 March to 16 March 2007

     - - - - - - - -

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

AGRITRADE INTERNATIONAL: Placed Under Members' Voluntary Wind-Up
----------------------------------------------------------------
On Feb. 20, 2007, the members of Agritrade International Pty Ltd
held a general meeting and agreed to voluntarily wind up the
company's operations.

Accordingly, G. A. Lopez, E. R. Verge and C. A. L. Huxtable were
appointed as liquidators.

                 About Agritrade International

Agritrade International Pty Ltd is a distributor of fresh fruits
and vegetables.  The company is located in Western Australia,
Australia.


AINSWORTH GAME: Receives Licenses for Pennsylvania & Wisconsin
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
March 7, 2007, Ainsworth Game Technology Limited reported a loss
of AU$17.7 million for the half-year period ending Dec. 31,
2006, compared with a profit of AU$3.1 million in the
corresponding period in 2005.

The company blamed the net loss it incurred on the delay of
expected sales in key markets in the Americas, further delays in
achieving U.S.A. licenses, and current legislative restrictions
within European markets, the TCR-AP report said.

In a recent filing with the Australian Securities Exchange,
Ainsworth Game Technology advises that it has been granted
approval for the issue of a Manufacturer's License by the
Pennsylvania Gaming Control Board.

Pennsylvania is an emerging gaming market with an initial four
casinos open and it is anticipated that after further planned
expansion, gaming is expected to generate a market of US$1.5
billion a year in revenue within this jurisdiction, the company
notes.

The company also advises that it has received the Wisconsin
Gaming-Related Contractor Licence.  Wisconsin is regarded as the
fourth largest tribal casino state with approximately 18 tribal
casinos, the company says.

Accordingly, Ainsworth Game has commenced product development in
these and other jurisdictions where licenses have been secured
and will be seeking the necessary product and game approvals to
enable commercial realization of these revenue opportunities.

The company notes that the securing of a license in any
jurisdiction is an initial step prior to obtaining the product
and game approvals necessary before sales can be made to that
jurisdiction.

According to Executive Chairman Len Ainsworth, "the gaming
industry is highly regulated and as such the period from
obtaining a license to achieving machine sales could be as much
as 12 months or longer."

                      About Ainsworth Game

Ainsworth Game Technology Limited --
http://www.ainsworth.com.au/-- designs, develops and sells   
gaming machines and other related equipment and services.  The
Company's products are ambassador gaming machine and celebrity
gaming machine. AGT has products in casinos across Australia.  
AGT operates in Russia, Austria, France and Germany. Its wholly
owned subsidiaries are AGT Pty Ltd, Ainsworth Game Technology
Inc (USA), Ainsworth Game Technology (UK) Ltd, Ainsworth
International GmbH, Ainsworth Game Technology (NZ) Limited and
AGT Service Pty Ltd.

The Troubled Company Reporter - Asia Pacific's Distressed Bonds
Column on March 6, 2007, listed Ainsworth Game's bond with a
8.000% coupon and a December 31, 2009 maturity date as trading
at 0.84% of its face value.


ARNOTT NOMINEES: Members & Creditors Set to Meet on April 11
------------------------------------------------------------
The members and creditors of Arnott Nominees Pty Ltd will meet
on April 11, 2007, at 2:30 p.m., to:

   -- receive the liquidators' final receipts and payments;

   -- receive the formal notice of the end of administration;   
      and

   -- discuss other related business.

The company's liquidator is:

         Jason Bettles
         Worrells Solvency & Forensic Accountants
         Australia
         Web site: http://www.worrells.net.au

                     About Arnott Nominees

Located in Queensland, Australia, Arnott Nominees Pty Ltd is an
investor relation company.


BESHOLD PTY: To Declare Final Dividend on April 4
-------------------------------------------------
Beshold Pty. Ltd., which is in voluntary liquidation, will
declare a final dividend on April 4, 2007.

Creditors who cannot prove their debts by April 3, 2007, will be
excluded from the company's dividend distribution.

The company's liquidator is:

         David M. McCarthy
         Christopher R. Campbell
         Deloitte Touche Tohmatsu Grosvenor Place
         225 George Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9322 7000

                         About Beshold Pty.

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


CBH RESOURCES: Becomes Substantial Shareholder in Tennant Creek
---------------------------------------------------------------
In a filing with the Australian Securities Exchange, CBH
Resources Limited discloses that it has taken a placement of
6 million shares, each at 39 cents, in Tennant Creek Gold
Limited.  This represents 5.3% of TNG's current issued shares
and 3.3% on a fully diluted basis.

TNG's principal asset is the Manburrum zinc/lead/silver resource
being a reported Indicated and Inferred Resource of 10.5 million
tones at 2.9% zinc, 0.7% lead, and 5.5g/t silver, located in the
Northern Territory, some 70 km northeast of Kununurra, West
Australia.

CBH Resources, through its wholly owned subsidiary, Triako
Resources Limited, holds the Sorby Hills lead/zinc/silver
deposits, being a reported Inferred Resource of 10 million
tonnes at 6.4% lead, 0.9% zinc, and 66g/t silver, about 30 km to
the west of the Manburrum resource in Western Australia in the
area to be developed as Stage 2 of the Ord River Project.

Due to the proximity of these deposits, CBH Resources considers
there may be synergies between these two potential mining
projects, which could considerably improve the respective
development economics (e.g. common processing facilities).

Thus, CBH Resources has taken this placement to further the
cooperation with TNG as they move forward in the potential
development of this area.

CBH Resources Limited -- http://www.consbh.com.au/-- is a  
Sydney-based mineral resources company engaged in the production
of zinc, lead and silver from the Endeavor Mine at Cobar.
Development studies are underway for the zinc, lead and silver
resources at Broken Hill, and copper and zinc resources a
Sulphur Springs in western Australia.

The Troubled Company Reporter - Asia Pacific's Distressed Bonds
Column on Jan. 30, 2007, listed CBH Resources's bond with a
9.500% coupon and a December 16, 2009 maturity date as trading
at 0.45% of its face value.


ELDER & ROSE: To Declare Final Dividend on March 28
---------------------------------------------------
Elder & Rose (Tempe), which is in liquidation, will declare a
first and final dividend on March 28, 2007.

Failure to prove debts by March 21, 2007, will exclude a
creditor from sharing in the company's dividend distribution.

In a report by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on Jan. 24, 2007.

The company's liquidator is:

         G. D. Short
         c/o Short Kenyon & Co. Proprietary
         Chartered Accountants
         54 Sailors Bay Road
         Northbridge, New South Wales 2063
         Australia

                       About Elder & Rose

Elder & Rose (Tempe) Pty Limited operates hotels and motels.  
The company is located in New South Wales, Australia.


EVERETT & STEELE: Will Declare Dividend on March 30
---------------------------------------------------
Everett & Steele Pty Ltd, which is in liquidation, will declare
a final dividend on March 30, 2007.

Accordingly, creditors are asked to prove their debts by
March 29, 2007, to be included in the dividend distribution.

The company's liquidator is:

         Kim Wallman
         K. S. Wallman & Co
         PO Box 4055, Wembley, Western Australia 6014
         Australia
         Telephone:(08) 9481 0977
         Facsimile:(08) 9231 0429

                     About Everett & Steele

Everett & Steele Pty Ltd -- previously trading as Perth Meat
Export Western Australia -- is a distributor of packaged frozen
foods.  The company is located in Western Australia, Australia.


FORTESCUE METALS: Rail Construction Faces Delay Due to Cyclone
--------------------------------------------------------------
Fortescue Metals Group's railway construction faces delay in the
wake of Cyclone George, The Australian says, citing industry
insiders.

Fortescue, however, did not comment on the possibility of delays
because of the cyclone, preferring to wait for a review into the
extent of the storm damage on its rail project, Kevin Andrusiak
writes for The Australian.

The cyclone claimed the life of two Fortescue workers at the
company's Rail Camp 1.  The deaths are now subject to a coronial
inquiry and Worksafe WA investigation, The Australian says,
adding that Fortescue has also launched its own review in the
wake of the tragedy.

According to the paper, Fortescue has reported that its port
construction and mine development projects suffered minimal
damage.  Yet, the company noted that the heavy rain would have
damaged site earthworks at its Cloud Break mine, 260km east of
Port Hedland.

The Australian cites Fortescue's latest project update in
February showing that the construction of rail and port
facilities was on time and within budget.  It also indicated
that the company has used AU$142 million left in its contingency
budget, the paper relates.

                          *     *     *

Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the  
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.

In 2005, Fortescue's chief executive officer, Andrew Forrest,
admitted to a AU$500-million blowout on the cost of port and
rail infrastructure in the Pilbara Project because of price
hikes for steel, fuel, construction materials, and contract
labor.  The Company also disclosed that the hampered progress of
the Pilbara Project brings in the possibility that the company
may not meet its ore delivery schedule and pushes up costs at
resource developments across Western Australia.  In May 2005,
the Australian Stock Exchange pressured Fortescue to explain
matters about the project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products.  The ASX then referred the matter to the
Australian Securities and Investments Commission, which
commenced a legal action against the Company.

The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on August 23 and Nov. 5, 2004.  In particular,
Fortescue did not disclose that the Chinese parties had not
reached a concluded agreement on fundamental aspects of the
projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters.  The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.

                          *     *     *

Fortescue reported a net loss for the past two fiscal years.  
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was AU$2.15
million.

                          *     *     *

The TCR-AP reported on Aug. 10, 2006, that Moody's Investors
Service assigned a Ba3 rating to approximately US$1.9 billion in
senior secured 144A bonds to be issued by FMG Finance Pty Ltd,
the financing vehicle of the Fortescue Metal Group.  The funding
will be used to partially finance the development of the
Company's iron ore mine in the Pilbara region of Western
Australia as well as an associated rail line and port
infrastructure.


HUTCHISON TELECOMMUNICATIONS: To Raise AU$2.85 Bln. to Pay Debt
---------------------------------------------------------------
Hutchison Telecommunications (Australia) Ltd plans to raise up
to AU$2.85 billion in equity to improve its profitability, The
Age reports, citing the Australian Associated Press.

According to the AAP, Hutchison will raise the funds by way of a
pro-rata renounceable rights issue of convertible preference
shares, under which shareholders will be offered 20 converting
preference shares for each Hutchison ordinary share held on the
record date.

The issue price will be 21 cents per CPS, which is the 10-day
volume weighted average price immediately prior to the date of
the announcement, The Age explains.

Hutchison Chief Executive officer Nigel Dews said "the proposed
recapitalization will be addressing the level of debt in the
company, and setting the business on a faster course for
profitability with AU$250 million less in annual interest
payments."

Hutchison Whampoa Ltd supports the rights issue.  HWL is
committed to maintaining a listing for Hutchison on the
Australian Securities Exchange, the company told The Australian.

After completion of the rights issue, Hutchison expects its debt
to be reduced to approximately AU0$1.1 billion, the paper says.

HWL has indicated its intention that its wholly owned subsidiary
-- Hutchison Communications Australia Pty Ltd -- will take up
its full pro rata entitlement, the AAP says, noting that HCAPL
currently has a 57.82% shareholding in Hutchison.

The balance of the offer will be underwritten by HWL, The
Australian notes.

                        About Hutchison

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

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

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

The company recorded a AU$759.4-million net loss for the 2006
fiscal year, compared with a AU$547.3-million loss for 2005.


LONERGAN PTY: Creditors' Proofs of Debt Due on March 16
-------------------------------------------------------
Lonergan Pty. Ltd., which is under liquidation, will be
receiving proofs of debt from its creditors until March 16,
2007.

The company will declare a first dividend on March 30, 2007.

The company's liquidator is:

         M. H. Lyford
         Lyfords Ogilvie House
         12 Kintail Road, Applecross Western Australia 6153

                       About Lonergan Pty

Located in Western Australia, Australia, Lonergan Pty Ltd is an
investor relation company.


PRIMELIFE CORPORATION: Court Orders Wind-Up of Two Schemes
----------------------------------------------------------
Primelife Corporation Ltd relates that the Federal Court has
ordered the wind up of these unregistered managed investment
schemes:

   (a) Port Albert Scheme -- established to invest in a proposed
       Primelife retirement village and aged care facility in
       Port Melbourne; and

   (b) Glendale Scheme -- a newly completed aged care facility
       at Werribee, developed and operated by Primelife.

                      Port Albert Scheme

At the request of the Australian Securities & Investments
Commission and in the absence of an agreed winding up proposal,
the court appointed Andrew McLellan of PPB Chartered Accountants
as custodian, trustee, and liquidator for the winding up of the
Port Albert Scheme.

Primelife Managing Director John Martin noted "the appointment
of Mr. McLellan relates solely to the Port Albert Scheme and
does not relate to or have any impact on any Primelife company."

                        Glendale Scheme

The winding up of the Glendale scheme will involve a court-
approved proposal for the realization and distribution of the
remaining scheme assets to the investors in the scheme.

Primelife Managing Director John Martin said "the winding up of
the Glendale Scheme will not have any impact on the day-to-day
operations of the new Orden Aged Care Facility at Werribee."

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au/-- develops and manages properties  
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.

Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  The ASIC also applied for the schemes to be wound
up.

The ASIC alleged that the schemes are not registered, as
required under the Corporations Act.  The ASIC brought the
Federal Court proceedings against Primelife and a number of
other defendants including parties who, the ASIC alleges, have
been involved in promoting and managing the schemes to a large
number of investors since 1997.

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.

The Troubled Company Reporter - Asia Pacific's Distressed Bonds
Column on Mar. 13, 2007, showed that Primelife Corporation's
bond, with a coupon of 10.000% and maturity date of Jan. 31,
2008, trades at 1.02% of its face value.


PRIMELIFE CORPORATION: Issues 25 Million New PLFGA Notes
--------------------------------------------------------
On March 9, 2007, Primelife Corporation Ltd disclosed a
placement of 25,000,000 unsecured convertible redeemable notes
at an issue price of AU$1.00 per note to raise AU$25,000,000.  
Proceeds from the issue will be used for Primelife's working
capital requirements.  The raising will also provide Primelife
an opportunity to pursue acquisition opportunities presently
under consideration.

The terms of issue of the notes are identical to the existing
PLFGAs notes expiring on Jan. 31, 2008, currently on issue.  The
new PLFGAs bear interest at 10% per annum payable half yearly on
June 30 and December 31.

As the interest amount payable on June 30, 2007, for the new
notes will differ from the amount payable to existing PLFGAs,
the new PLFGAs will trade as a separate line under the code
PLFGC.

The existing PLFGAs and the PLFGCs will merge and trade together
from the date the notes trade ex-interest for the period to June
30, 2007.  This is anticipated to be on June 18, 2007.

The issue was expected to be completed March 16, 2007.

The placement was made to professional and sophisticated
investors.  Tricom Equities Limited acted as placement agent for
the issue.

                        About Primelife

Headquartered in Melbourne, Australia, Primelife Corporation --
http://www.primelife.com.au/-- develops and manages properties  
catering to a wide range of senior living needs, including
independent retirement living, serviced apartments, aged care or
low care hostels and high care nursing homes, and in-home care.

Primelife almost skidded into insolvency when, on September 23,
2004, the Australian Securities and Investments Commission filed
37 proceedings in the Federal Court of Australia seeking, among
other things, orders that an investigating accountant be
appointed over managed investment schemes under Primelife to
report to the Federal Court to ascertain the position of each of
the schemes.  ASIC also applied for the schemes to be wound up.

The ASIC alleged that the schemes are not registered, as
required under the Corporations Act.  ASIC brought the Federal
Court proceedings against Primelife and a number of other
defendants including parties who, ASIC alleges, have been
involved in promoting and managing the schemes to a large number
of investors since 1997.

The unregistered schemes are undergoing or were completely wound
up starting October 2005.  The Company had currently resolved
most of the legal issues and was turning the corner after a
couple of years.

The Troubled Company Reporter - Asia Pacific's Distressed Bonds
Column on Mar. 13, 2007, showed that Primelife Corporation's
bond, with a coupon of 10.000% and maturity date of Jan. 31,
2008, trades at 1.02% of its face value.


SKYRISE HOLDINGS: Commences Wind-Up Proceedings
-----------------------------------------------
At an extraordinary general meeting held on Feb. 19, 2007, the
members of Skyrise Holdings Pty Ltd resolved to voluntarily wind
up the company's operations.

Brian McMaster and Jack James were appointed as liquidators.

The Liquidators can be reached at:

         Brian McMaster
         Jack James
         KordaMentha
         Level 11, 37 St George's Terrace
         Perth, Western Australia
         Australia

                     About Skyrise Holdings

Skyrise Holdings Pty Ltd -- also trading as Balmain House
Daycare Centre -- provides child day care services.  The company
is located in Western Australia, Australia.


SUNCORP-METWAY: To Explore Takeover Opportunities After Merger
--------------------------------------------------------------
Suncorp-Metway Ltd will consider "potentially large" takeover
opportunities in the banking sector once its AU$7.9 billion
merger with Promina Group Ltd is bedded down, the Australian
Associated Press reports, citing Suncorp Chief Executive Officer
John Mulcahy.

According to The Age, Mr. Mulcahy also expects:

   (a) Suncorp to use acquisitions to grow its wealth management
       business; and

   (b) a change in the ranks.

However, Suncorp does not intend to sell off any of it or
Promina's businesses, the paper says, noting that Mr. Mulcahy
did not disclose the composition of the merged entity's
management team.

As reported in the Troubled Company Reporter - Asia Pacific on
March 6, 2007, shareholders of insurer Promina Group have
approved an AU$8-billion merger with Suncorp-Metway.

                      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.


THE NEW MANAGEMENT: Members & Creditors Set to Meet on April 10
---------------------------------------------------------------
The New Management Company Pty Ltd will hold a joint meeting for
its members and creditors on April 10, 2007, at 9:30 a.m.

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

According to the Troubled Company Reporter - Asia Pacific, the
company commenced wind-up proceedings on Aug. 17, 2006.

The company's liquidator is:

         Gavin C. Morton
         PKF Chartered Accountants and Business Advisers
         Level 6, 10 Eagle Street
         Brisbane, Queensland 4000
         Australia

                    About The New Management

The New Management Company Pty Limited operates drinking places.  
The company is located in New South Wales, Australia.


TOWNSVILLE CUSTOM: Creditors' Final Meeting Set for April 3
-----------------------------------------------------------
The creditors of Townsville Custom Computer Furniture Pty Ltd
will meet on April 3, 2007, at 11:00 a.m. for their final
meeting.

During the meeting, the creditors will hear the liquidator's
final accounts regarding the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Bill Buckby
         KordaMentha (NQ)
         Level 1, 150 Walker Street
         Townsville, Queensland 4810
         Australia
         Telephone:(07) 4724 5455
         Facsimile:(07) 4724 5405

                     About Townsville Custom

Townsville Custom Computer Furniture Pty Ltd is involved with
carpentry work.  The company is located in Queensland,
Australia.


VADA PTY: Liquidators to Present Wind-Up Report
-----------------------------------------------
The members and creditors of Vada Pty Ltd will meet on April 5,
2007, at 10:30 a.m. for their final meeting.

During the meeting, Liquidators Peter Morris and Todd Kelly will
present a report about the company's wind-up proceedings and
property disposal.

The Liquidators can be reached at:

         Peter Morris
         Todd Kelly
         c/o Foremans Business Advisors
         Suite 1, 29 Lake Street
         Cairns, Queensland 4870
         Australia

                         About Vada Pty

Located in Queensland, Australia, Vada Pty Ltd is a distributor
of durable goods.


WINNING DIRECTIONS: Members & Creditors to Hear Wind-Up Report
--------------------------------------------------------------
The members and creditors of Winning Directions Pty Ltd will
hold their final meeting on April 4, 2007, at 11:00 a.m., to
hear the liquidator's report about the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Gerald T. Collins
         c/o JCJ Partners Pty Ltd
         Level 4, 370 Queen Street
         Brisbane, Queensland 4000
         Australia

                    About Winning Directions

Winning Directions Pty Ltd provides public relations services.  
The company is located in Queensland, Australia.


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

ASIA ALUMINUM: Moody's Affirms B1 Ratings; Outlook Stable
---------------------------------------------------------
On March 19, 2007, Moody's Investors Service has confirmed the
B1 corporate family rating and senior unsecured bond rating of
Asia Aluminum Holdings Ltd.  The ratings outlook is stable.

This concludes the review for possible downgrade commenced on
Feb. 14, 2007.

"This rating action follows AAH's filing of its interim results
ending 31/12/06 with its Trustee within the 30-day grace
period," says Moody's lead analyst, Angela Choi.  "This has
mitigated the risk of breaching the bond indenture -- a
situation arising after it failed to file the information within
45 days after the end of its second financial quarter which
could have triggered an event of default," she adds.

"The interim results are in line with expectations and the
company's overall financial profile remains consistent with its
current rating level," says Choi.

While AAH is expected to incur overall additional cost overruns
of approximately HK$1 billion for its extrusion and flat rolled
panel expansion projects, this amount can be more than covered
by its available cash balance.  Moody's draws additional comfort
from the lower execution risk following the completion of the
extrusion plant and also from the expected completion of the
panel plant in one year's time.

The stable outlook reflects Moody's expectation that AAH will
continue with its transparent financial disclosure policy and
corporate governance practices, as well as maintain its leading
position in China's aluminum extrusion market.

Upward rating pressure will be limited over the next 2 years
given AAH's current and projected high adjusted leverage.

On the other hand, downward ratings pressure could evolve if:

    1) further delays and cost overruns appear in the
       construction of AAH's extrusion and flat rolled panel
       expansion projects; and/or

    2) operating performance weakens, such that average EBITDA
       interest coverage falls below 2.5x or if deleveraging --
       total gross debt/EBITDA -- falls to approximately 8.5x in
       FY2007 and 6x in FY2008.

Asia Aluminum Holdings Ltd, founded in 1992 and listed on the
Hong Kong Stock Exchange since 1998, is recognized by the
Ministry of Construction of China as the largest aluminum
extruder in Asia.  AAH has been privatized in May 2006.  It had
an annual designed capacity of 350,000 tons as of December 31,
2006.  Total sales reached HK$3.9 billion for year end-June 30,
2006.


BALLY TOTAL: Faces Default Due to Delayed Form 10-K Filing
----------------------------------------------------------
Bally Total Fitness has filed a notice with the U.S. Securities
and Exchange Commission on Form 12b-25 indicating that it is
unable to file its Annual Report on Form 10-K for the year ended
Dec. 31, 2006, by the March 16, 2007 deadline without
unreasonable effort and expense because it has not yet completed
the preparation of its financial statements for the year ended
Dec. 31, 2006.  The company is not yet able to determine when it
will be able to file this report.

Bally indicated that in determining the amount of its liability
for deferred revenue, the Company estimates membership life for
its members at the time that members enter into membership
agreements based on historical trends of actual attrition.  The
company has identified certain errors in its historical member
data used to create its estimates of membership life for those
members whose memberships are expected to extend beyond seven
years.  The company is also evaluating the assumptions it uses
in updating these attrition estimates throughout the
memberships' terms.  The company is evaluating the impact that
these data errors and the assumptions relating to attrition
estimates will have on its estimates of membership life and its
estimate of deferred revenue on previously reported annual and
interim consolidated financial statements as well as interim
consolidated financial statements and interim consolidated
financial information for 2006.

In its 12b-25 filing, Bally stated that it expects to report a
loss from continuing operations for 2006, and that it expects
cash collections of membership revenues in 2006 to be
approximately 3%, or more than $25 million, lower than cash
collections in 2005.  The trend of lower cash collections has
continued in the first eleven weeks of 2007 and is expected to
continue through at least the remainder of 2007.  These
unfavorable comparisons and trends reflect shortfalls in new
member additions and the continuing effects on cash collections
associated with the company's 2005 transition to its Build Your
Own Membership model, related changes in the company's sales
approach and club operating model, and heightened competition in
the company's key markets.  While the changes implemented to the
BYOM model since the third quarter of 2006 have led to some
improvement in certain key operating parameters, this progress
has not been sufficient to offset the impact of lower cash
collections from BYOM members added in 2005 and early 2006.

Bally reported that its results of operations for 2006 are still
being finalized by management, and that it expected certain
expenses to be higher in 2006 compared to 2005.  Those higher
expenses include an impairment charge estimated at US$35 to
US$37 million and associated with the carrying value of certain
long-lived assets, primarily leasehold improvements to certain
fitness clubs.  Interest expense increased approximately 20% (or
approximately US$16 million) in 2006, primarily due to the
amortization of deferred financing costs.

On March 14, 2007, the company's liquidity was approximately
US$45 million.  The company's availability under its amended and
restated Credit Agreement, subject to compliance with the terms
thereof, was approximately US$2.1 million.

Further, as of March 14, 2007, the company had approximately
US$827 million in debt outstanding, which includes approximately
US$19 million in letters of credit.  Interest payments on the
company's public notes are due in April, July and October 2007,
along with the maturity of the US$300 million of 9-7/8% Senior
Subordinated Notes in October 2007.  The company is exploring a
broad range of options to restructure its debt obligations.  If
the company is unable to restructure that debt, is unable or
determines not to make the interest payments, or otherwise
determines that its financial condition and obligations
necessitate a broader restructuring, it may seek to reorganize
its operations under Chapter 11.  The company has engaged
Jefferies & Company, Inc. as its financial advisor.

The company's inability to file its 2006 Form 10-K by March 16,
2007, will be a default under its public note indentures.
Subject to certain notice provisions, events of default
resulting from the company's failure to file and deliver 2006
audited financial statements, or make the interest payment under
its Senior Subordinated Notes on April 15, 2007, could
ultimately result in certain debt obligations becoming
immediately due and payable.

The company also said that management is assessing the
effectiveness of its internal control over financial reporting,
and has identified material weaknesses in the internal control
over financial reporting as of Dec. 31, 2006.

Bally's independent auditor, KPMG LLP, has informed the
company's Audit Committee that, in the absence of further
information in support of the company's ability to meet its
obligations as they become due, comply with certain debt
covenants and timely file its financial statements, its
auditors' report on the Company's consolidated financial
statements will include an explanatory paragraph indicating that
substantial doubt exists as to the company's ability to continue
as a going concern.  Further, the company also expects that the
independent auditor's report on internal control over financial
reporting will again include an adverse opinion on the
effectiveness of its internal controls over financial reporting,
consistent with management's conclusion that material weaknesses
exist.

                          *     *     *

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial  
operator of fitness centers in the U.S., with nearly 390
facilities and 30 franchises and joint ventures located in 29
states, Mexico, Canada, Korea, China and the Caribbean.  Bally
also sells Bally-branded apparel, nutritional products, fitness-
related merchandise and its licensed portable exercise equipment
is sold in more than 10,000 retail outlets.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service affirmed the Caa1 rating on Bally
Total Fitness Holding Corporation's US$235 million 10.5% senior
unsecured notes (guaranteed) due 2011 and the Caa3 rating on the
company's US$300 million 9.875% senior subordinated notes due
2007.  Moody's said the rating outlook remains negative.


BALLY TOTAL: May File for Chapter 11 Bankruptcy Protection
----------------------------------------------------------
Bally Total Fitness Holding Corp. told Reuters that it may file
for chapter 11 bankruptcy protection if it fails to restructure
its debt.

Bally Total said that while it has US$45 million in cash, it has
US$827 million in outstanding debt, Reuters relates.  The firm
is considering a broad range of options to decrease the debt.

Bally Total also told the U.S. Securities and Exchange
Commission that it is unable to file its annual report for 2006,
which was due March 16.  The firm said it doesn't know when it
will be able to file the report.  It has hired Jeffries & Co. as
its financial advisor, Reuters notes.

Bally Total told Reuters that it expects to report a loss from
continuing operations last year, with membership revenue
decreasing 3%, or over US$25 million less than 2005.

Bally Total Chief Executive Barry Elson said in a conference
call that membership collections have continued to decline
through the first 11 weeks of 2007, which is expected to
continue at least through 2008.

Reuters underscores that Bally Total has been trying to attract
new members in recent year.  The company has put itself on sale
in 2005 but it failed to find a buyer.

Bally Total's strained finances prevented it from making much-
needed improvements to its facilities in recent years, making it
vulnerable to its rivals that offer modern facilities to
clients.  To lessen its financial woes, the company will dismiss
workers, renegotiate rents and close "underperforming" clubs,
Reuters states, citing Mr. Elson.

                          *     *     *

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial  
operator of fitness centers in the U.S., with nearly 390
facilities and 30 franchises and joint ventures located in 29
states, Mexico, Canada, Korea, China and the Caribbean.  Bally
also sells Bally-branded apparel, nutritional products, fitness-
related merchandise and its licensed portable exercise equipment
is sold in more than 10,000 retail outlets.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service affirmed the Caa1 rating on Bally
Total Fitness Holding Corporation's US$235 million 10.5% senior
unsecured notes (guaranteed) due 2011 and the Caa3 rating on the
company's US$300 million 9.875% senior subordinated notes due
2007.  Moody's said the rating outlook remains negative.


BALLY TOTAL: Share Price Falls 62% on News of Likely Bankruptcy
---------------------------------------------------------------
Shares of Bally Total Fitness Holding Corp. lost more than half
their value Friday, according to various news reports.  The
plunge was due to company's disclosure it was considering
bankruptcy as an option.

The company's stock plummeted 62%, or US$1.24, to close at its
all-time low of 75 cents a share on the New York Stock Exchange.

                           Debt Outstanding

As reported in Friday's Troubled Company Reporter, the company
said that as of March 14, 2007, it had approximately US$827
million in debt outstanding, which includes approximately US$19
million in letters of credit.  Interest payments on the public
notes are due in April, July and October 2007, along with the
maturity of the US$300 million of 9 7/8% Senior Subordinated
Notes in October 2007.  The company disclosed that it was
exploring a broad range of options to restructure its debt
obligations and if the company is unable to restructure that
debt, is unable or determines not to make the interest payments,
or otherwise determines that its financial condition and
obligations necessitate a broader restructuring, it may seek to
reorganize its operations under
Chapter 11.  The company has engaged Jefferies & Company, Inc.
as its financial advisor.

                            Delay Filing

The company further disclosed that it was unable to file its
Annual Report on Form 10-K for the year ended Dec. 31, 2006, and
said that this inability to file will be a default under its
public note indentures.

                         Material Weakness

The company also said that management is assessing the
effectiveness of its internal control over financial reporting,
and has identified material weaknesses in the internal control
over financial reporting as of Dec. 31, 2006.

                        About Bally Total

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial  
operator of fitness centers in the U.S., with nearly 390
facilities and 30 franchises and joint ventures located in 29
states, Mexico, Canada, Korea, China and the Caribbean.  Bally
also sells Bally-branded apparel, nutritional products, fitness-
related merchandise and its licensed portable exercise equipment
is sold in more than 10,000 retail outlets.


As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service affirmed the Caa1 rating on Bally
Total Fitness Holding Corporation's US$235 million 10.5% senior
unsecured notes (guaranteed) due 2011 and the Caa3 rating on the
company's US$300 million 9.875% senior subordinated notes due
2007.  Moody's said the rating outlook remains negative.


CHINA MINSHENG: Completes Details on A-Shares Sale
--------------------------------------------------
China Minsheng Bank has finished arranging details of a private
placement of shares that is expected to raise CNY18.2 billion,
Reuters reports.

According to the report, a total of 2 billion new A shares,
comprising about 16% of the bank's expanded share capital, are
being issued to seven domestic institutional investors at
CNY9.08 each, an 18% discount to Minsheng's last market price of
CNY11.03.

New Hope Group, which founded Minsheng Bank headed by private
entrepreneur Liu Yonghao, and an affiliated company are taking a
total of 410 million shares, Reuters relates.

The number of shares Mr. Liu's group acquires will preserve his
position as top shareholder in Minsheng, Reuters says, citing
Shanghai Securities News.

The bank needs the funds to support its expansion.  In addition,
bank's chairman Dong Wenbiao said that the share placement would
boost Minsheng's capital adequacy ratio to about 13%.  It stood
at 8.12% at the end of last year, against the minimum regulatory
requirement of 8%, Reuters relates.

                          *     *     *

China Minsheng Banking Corporation Ltd's principal activity is
the provision of commercial banking services that include
absorbing public deposits, providing short term, medium term,
and long term loans, making domestic and international
settlement, discounting bills and issuing financial bonds.

On September 4, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings affirmed on September 5,
2006, China Minsheng Banking Corp.'s Individual D/E and Support
4 ratings.


CHINA SOUTHERN: To Start Dubai-Guangzhou Route on March 26
----------------------------------------------------------
China Southern Airlines will start its new service to Dubai via
Guangzhou, on March 26, 2007, Gulf News reports.

"Demand for this service is unbelievable," Hussain Tehrani,
general manager of Al Rais Travel, the airline's general sales
agent in the UAE, told Gulf News.

Mr. Tehrani added that travel between China and the Gulf
Cooperation Council countries, has been growing due to increase
in trade links.

As a proof, Wang Jun, China Southern's general manager for
Middle East, said China Southern will soon add Jeddah to its
international route.  The planned service will be via the UAE
and link the Chinese city of Urmuqi with Jeddah, Gulf News
relates.

The airline also currently flies three times a week between
Dubai and Beijing, which also covers the Lagos route in Nigeria,
the report notes.

                          *     *     *

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

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

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


CITIC KA WAH: Inks Technology Partnership with HP
-------------------------------------------------
CITIC Ka Wah Bank Limited has selected HP as its strategic IT
partner for its comprehensive deployment of an advanced branch-
banking infrastructure.  

The deployment will enable the bank to enhance its customers'
experience and increase competitiveness in the banking market.

The new branch-banking infrastructure is part of CITIC Ka Wah's
strategy to transform its current system environment into a more
responsive and proactive total service delivery platform.

Powering the system is the HP OpenBank solution, an open retail
banking architecture framework that integrates front- and back-
end systems using open standard processes and technologies.  
Supporting the new branch-banking infrastructure will be a range
of HP hardware components including HP ProLiant servers, HP
Compaq business desktop PCs, HP magnetic strip readers, BANQIT
self-service printers and passbook printers.

"The deployment of one advanced system covering our front-end
and processing systems will enable us to deliver enhanced
services, and underlines our commitment to continuous innovation
and service excellence.  It will also support the Bank's
continuing business expansion by providing a solid system
foundation for introducing additional applications in the future
to accommodate its broadening range of products and services,"
said Mrs. Lorainne Lam, Executive Vice President and Head of
Retail Banking Group of CITIC Ka Wah Bank.

"CITIC Ka Wah Bank is an innovator in the financial industry,
driving growth through its alignment of IT and business
operations.  HP is delighted to be its partner as it embarks on
this all-important infrastructure and operational enhancement,
designed to increase the efficiency and effectiveness of its
front office service delivery," said Mr. Felix See, Managing
Director, HP Hong Kong.  

"This is a great opportunity to showcase the capabilities of the
HP OpenBank solution, which provides a flexible and adaptive
approach to building a truly word-class banking operation."

The deployment, which began in the third quarter of 2005, is
undertaken in two phases: the first phase involved replacing
existing branch banking infrastructure, deploying HP OpenBank
and integration of the Bank's online system with core banking
system.  The second phase involved transformation of the Bank's
teller operation to sales operation to enable more advisory type
of services.

                          *     *     *

CITIC Ka Wah Bank Limited is a wholly-owned subsidiary of CITIC
International Financial Holdings Limited, which in turn is
approximately 54.5% owned by CITIC Group.

The Bank operates 31 branches in Hong Kong and also has an
established presence in China through its branches in Beijing,
Shanghai and Macau, and its wholly owned finance company, China
International Finance Company Limited (Shenzhen).  The Bank's
overseas branch network covers New York and Los Angeles.

On Aug. 1, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed CITIC Ka Wah Bank's Long-
term foreign currency Issuer Default Rating at BBB+, Short-term
foreign currency rating at F2, Individual rating at C and
Support rating at 3.  The Outlook on the ratings is Stable.


CITIC PACIFIC: 2006 Net Profit Doubles to HK$8.27 Billion
---------------------------------------------------------
CITIC Pacific Co. Ltd's 2006 net profit surged two-fold due to
solid contributions from its steel, property and aviation
divisions, and one-off gains from asset sales, Reuters reports.

Based on the company's annual financial report for 2006, it
posted a net profit of HK$8.27 billion against HK$3.99 billion
in 2005, Reuters says, noting that the firm proposed a final
special dividend of HK$0.30 per share.

According to the report, the results beat a consensus mean
estimate of HK$6.5 billion from 10 analysts polled by Reuters
Estimates.

CITIC's earnings were boosted by profits from the sale of a Hong
Kong shopping mall, Festival Walk, and the lowering of its stake
in Cathay Pacific Airway Ltd. to 17.5% from 25.4% amid an
overhaul of the carrier, Reuters reveals.

                          *     *     *

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.


CITIMIND LIMITED: Members' Final Meeting Slated for April 16
------------------------------------------------------------
Citimind Limited, which is in members' voluntary wind-up, will
hold a final meeting for its members on April 16, 2007, at
10:00 a.m.

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

The company's liquidators are:

         Pun Wing Mou, Bernard
         Lee Hung Chak
         45th Floor, Sun Hung Kai Centre
         30 Harbour Road
         Hong Kong


CLINICAL RESEARCH: Final General Meeting Set for April 11
---------------------------------------------------------
Clinical Research Centre on Chinese Medicine Limited will hold a
final general meeting for its members on April 11, 2007, at
10:00 a.m.

The meeting will be held at Shop Nos. 10-12, Level 3 of Hilton
Plaza Commercial Centre, 3-9 Shatin Centre Street, Shatin, in
New Territories, Hong Kong.

In a report by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Jan. 12, 2007.

The company's liquidator is:

         Ho Dai
         Shop Nos. 10-12, Level 3
         Hilton Plaza Commercial Centre
         3-9 Shatin Centre Street
         Shatin, New Territories
         Hong Kong


DENSEN DEVELOPMENT: Final General Meeting Set for April 11
----------------------------------------------------------
Densen Development Limited will hold a final general meeting on
April 11, 2007, at 9:15 a.m., at the 21st Floor of Fee Tat
Commercial Centre, No. 613 Nathan Road in Kowloon, Hong Kong.

During the meeting, the members will receive the liquidator's
report showing the manner in which the wind-up has been
conducted, and the properties disposed of.

As reported by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Jan. 26, 2007.

The Liquidator can be reached at:

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


EXCEL DENTAL: Contributories & Creditors to Meet on March 16
------------------------------------------------------------
Excel Dental Supplies Limited, which is in compulsory
liquidation, will hold a first meeting for its members and
creditors on March 16, 2007, at 2:00 p.m. and 2:30 p.m.,
respectively.

The meeting will be held at Room 1001, 10 Floor, Tai Yau
Building, 181 Johnston Road in Wanchai, Hong Kong.

During the meeting, the creditors and contributories will:

   -- receive and consider the report of the provisional
      liquidators;

   -- appoint joint and several liquidators and fix their   
      remuneration;

   -- nominate and appoint the committee of inspection members;
      and

   -- discuss other business.

The TCR-AP reported that the High Court of Hong Kong heard the
petition against the company on Nov. 22, 2006.  Chow Kam Chuen
filed the petition.


HUNG FAT: Faces Tse Lok Ling's Wind-Up Petition
-----------------------------------------------
Tse Lok Ling filed a petition to wind up the operations of Hung
Fat Trading Transportation Company Limited on Feb. 26, 2007.

The High Court of Hong Kong will hear the petition on May 2,
2007, at 9:30 a.m.

Tse Lok's solicitors are:

         Messrs. Chan and Associates
         2201 Hong Kong Trade Centre
         161 Des Voeux Road Central
         Hong Kong


KENSWICK BERCHTOLD: Liquidator to Give Wind-Up Report on Apr. 11
----------------------------------------------------------------
The contributories and creditors of Kenswick Berchtold (China)
Limited will hold a final meeting on April 11, 2007, at 10:00
a.m. and 10:15 a.m., respectively.

The meeting will be held at Rooms 1002-1004 on the 10th Floor of
Hong Kong Trade Centre in 161 Des Voeux Road Central, Hong Kong.

Liquidator Bernie Fuk Yuen Suen will present a report about the
company's wind-up proceedings and property disposal.


LARAMI FAR EAST: Members' Final Meeting Set for April 13
--------------------------------------------------------
Larami Far East Limited, which is in members' voluntary
liquidation, will hold a final general meeting for its members
on April 13, 2007, at 11:15 a.m.

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

The company started to wind up its operation on July 28, 2006,
as reported by the Troubled Company Reporter - Asia Pacific.

The company's liquidator is:

         Susan Y. H. Lo
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


MINSEC MANAGEMENT: Members to Hold Final Meeting on April 16
------------------------------------------------------------
The members of Minsec Management Services Company Limited will
hold a final meeting on April 16, 2007, at 3:00 p.m., at Suite
No. A, 11th Floor of Ritz Plaza, 122 Austin Road, Tsimshatsui in
Kowloon, Hong Kong.

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

The company's liquidator is:

         Sung Mi Yin
         Suite No. A, 11th Floor
         Ritz Plaza, 122 Austin Road
         Tsimshatsui, Kowloon
         Hong Kong


NICE DEVELOPMENT: Commences Wind-Up Proceedings
-----------------------------------------------
At an extraordinary general meeting held on Feb. 27, 2007, the
members of Nice Development Limited resolved to voluntarily wind
up the company's operations.

Wong Hing Sun and Mok Wai Kwong were appointed as liquidators.

The Liquidators can be reached at:

         Wong Hing Sun
         Mok Wai Kwong
         Room 905-6, 9th Floor, Axa Centre
         151 Gloucester Road
         Wanchai, Hong Kong


ORIENTAL TEAM: Members to Receive Wind-Up Report on April 10
------------------------------------------------------------
The members of Oriental Team Holdings Limited will hold a final
general meeting on April 10, 2007, at 11:00 a.m., to hear the
liquidator's report about the company's wind-up proceedings and
property disposal.

The meeting will be held at the 9th Floor of Surson Commercial
Building, 140-142 Austin Road, Tsimshatsui in Kowloon, Hong
Kong.

The TCR-AP reported that the company entered wind-up proceedings
on June 21, 2006.

The company's liquidator is:

         Luk Wing Hay
         9th Floor, Surson Commercial      
         140-142 Austin Road, Tsimshatsui
         Kowloon, Hong Kong


WANG CHEONG: Court to Hear Wind-Up Petition on April 25
-------------------------------------------------------
A petition to wind up the operations of Wang Cheong Enterprise
International Limited was filed by Citic Ka Wah Bank Limited on
Feb. 15, 2007.

The petition will be heard before the High Court of Hong Kong on
April 25, 2007, at 9:30 a.m.

Citic Ka Wah's solicitor is:

         V. Hau & Chow
         702 Aon China Building
         29 Queen's Road Central
         Hong Kong


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

BALLY TECHNOLOGIES: Posts US$46.1MM Net Loss in 2006 Fiscal Year
----------------------------------------------------------------
Bally Technologies Inc. reported the filings of its Form 10-Q
for the fiscal quarter ended March 31, 2006, and its Form 10-K
for the fiscal year ended June 30, 2006.

Total revenues grew to US$547.1 million in fiscal 2006 compared
with US$483.1 million recorded in fiscal 2005.  Gaming Equipment
and Systems revenues in fiscal 2006 increased by US$63.4 million
to US$494.5 million compared with US$431.1 million recorded in
fiscal 2005.

The company recorded a net loss of US$46.1 million for fiscal
2006 compared with a net loss of US$22.6 recorded in fiscal
2005.

The loss of US$46.1 million in fiscal 2006 includes:

   a) the impact of several items, including US$15.6 million of
      impairment charges related to certain patents and other
      intangibles;

   b) a US$3.0 million write-down of prepaid royalties related
      to licensed game themes;

   c) US$14.2 million of inventory and related asset write-
      downs;

   d) an increase in depreciation expense of US$15.4 million
      related to changes in the useful life and salvage value
      for certain gaming equipment that were charged to the cost
      of gaming equipment; and

   e) US$12.9 million of share-based compensation expense.

The company also incurred significant costs associated with
previously disclosed legal and accounting matters.

The company's interest expense in fiscal 2006 was
US$27.5 million, an increase of US$9.2 million over fiscal 2005.  
This increase is primarily attributable to higher average market
rates of interest compared with fiscal 2005 as well as
US$2.2 million in charges for bank facility amendments relating
to the extended due dates for the delivery of financial
statements.

"Our core operations in the latter half of fiscal 2006 began to
reflect the impact of our new products in the market and also
reflect the strong results of our Systems products," said
Richard Haddrill, Chief Executive Officer.  "Total revenues in
the third quarter and fourth quarter of fiscal 2006 increased by
28 percent and 33 percent, respectively, as compared with the
corresponding period of the prior year.  We remain pleased with
the results of our technology integration and product retooling,
which resulted in significant charges in fiscal 2006 and fiscal
2005.  As previously disclosed, we currently expect total
revenue in fiscal 2007 to exceed US$670 million."

Robert C. Caller, Chief Financial Officer, said, "The completion
of these reports is a big step in our efforts to get back to a
normal filing cycle and represents our fourth and fifth major
filings in less than five months.  We will now focus our energy
on the completion of the Form 10-Qs for the quarterly periods
ended Sept. 30, 2006 and Dec. 31, 2006."

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,  
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Miss.  The company's South American
operations are located in Argentina.  The company also has
operations in Macau, China and India.

                          *     *     *

In August 16, 2006, Standard & Poor's Ratings Services held its
ratings on Bally Technologies Inc., including the 'B' corporate
credit rating, on CreditWatch with negative implications.


BALLY TECHNOLOGIES: Inks Chickasaw Deal to Provide Mgmt. Systems
----------------------------------------------------------------
Bally Technologies Inc. has signed an enterprise-wide contract
with the Chickasaw Nation to provide an expansive range of Bally
slot and casino management systems and bonusing technology in
more than 8,000 gaming machines in 17 locations along the
Interstate 35 corridor of southeastern Oklahoma.

After the decision to replace its current systems provider and a
thorough competitive review, the Chickasaw Nation selected a
full complement of Bally Slot Management Systems and Casino
Management Systems technologies, Bally Power Bonusing(TM)
solutions, eTICKET(TM) cashless functionality and interactive
iVIEW displays for a large portion of their casino floors.
Bally will also provide custom technology development that will
allow the Chickasaw Nation to seamlessly integrate Class II and
Class III machines.

The Chickasaw Nation operates gaming centers in 13 counties in
south-central Oklahoma and offers full casino destinations at
the Riverwind Casino in Norman and the WinStar Casino in
Thackerville, both with more than 2,200 electronic games.  The
Chickasaw Nation plans to utilize Bally technology to introduce
a common player's club across all of its locations.  The Bally
solution will also allow the locations to offer their players
Bally Power Winners(TM), a configurable random progressive
jackpot technology that rewards players using their player's
club cards.

The Chickasaw gaming locations are expected to "go live" with
the various Bally technologies over the next 18 months.

"The stability and reputation of the Bally products were the key
drivers of our decision," said Rob Jacks, CIO, of the Chickasaw
Nation Division of Commerce.  "We see our business continuing to
expand over the years and we wanted a business partner who has a
proven track record of providing solutions to large casino
enterprises.  The Bally SMS/CMS solution will offer a solid
foundation for us to add Bally's player-centric bonusing tools
to further enhance our market-leading position."

"The Chickasaw Nation is the perfect partner and its Oklahoma
enterprise is a great way for Bally to showcase the flexibility
of our technology for small and large casinos, both Class II and
Class III," said Derik Mooberry, Vice President of Systems
Sales, West Region.  "Oklahoma is clearly becoming a major
domestic gaming market and we're pleased customers are
recognizing the strength of both our games and systems."

Recognized as the industry systems leader with more than 350,000
machines and 660 casino, bingo, Class II, central determination
and lottery locations worldwide -- including more than 188
locations currently running Bally eTICKET(TM) on more than
224,000 slot machines -- the Bally Technologies systems product
line offers slot machine cash monitoring, table management,
cashless, accounting, security, maintenance, marketing,
promotional and bonusing capabilities, enabling operators to
accurately analyze performance and accountability while
providing an enhanced level of customer service.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,  
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Miss.  The company's South American
operations are located in Argentina.  The company also has
operations in Macau, China and India.

                          *     *     *

In August 2006, Standard & Poor's Ratings Services held its
ratings on Bally Technologies Inc., including the 'B' corporate
credit rating, on CreditWatch with negative implications.


BRITISH AIRWAYS: Committee Blames Poor Mktg. for Scheme Failure
---------------------------------------------------------------
British Airways Plc was criticized by members of the all-party
Environmental Audit Committee of poorly marketing its carbon
offsetting scheme under which customers pay for the cost of the
emissions created by their journey, BBC News reports.

As previously disclosed, the money raised through the scheme
will be used by an organization called Climate Care to invest in
sustainable energy projects that tackle global warming by
reducing carbon dioxide levels.

According to BA Secretary Alan Buchanan, the scheme has saved
just 1,600 tons of CO2 since September 2005.

"The take-up has been disappointing and it has been largely flat
throughout the period," Mr. Buchanan was quoted by BBC as
saying.

The committee alleged passengers lack information on how to take
part in the scheme and check-in staff were unaware of the
options available when asked, BBC relates.

However, Mr. Buchanan emphasized marketing was put on hold as it
expected customers to be less sympathetic to the scheme after
air passenger duties doubled.

He added that the best way to achieve a proper offset is through
an organized emissions trading scheme that would cover an entire
flight.

                        About the Company

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

                          *     *     *

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


BRITISH AIRWAYS: Opposes Conservative Party's Taxation Proposals
----------------------------------------------------------------
British Airways Plc and Virgin Atlantic Airways Ltd. criticized
proposals of Britain's opposition Conservative Party to impose
new taxes on air travel in an effort to reduce carbon emission,
according to published reports.

The party is considering a number of measures including levying
VAT or fuel duty on domestic flights and replacing air passenger
duty with a per flight tax based on carbon emissions, BBC News
relates.

According to George Osborne, a top party official, the taxes
will only target frequent flyers and planes with dirty engines.

Mr. Osborne emphasized that other taxes would be lowered to
offset the new air travel levies, Aaron Karp writes for ATW
Daily News.

However, British Airways believed taxation is an extremely blunt
instrument in terms of reducing carbon emissions.  The airline
favors emissions trading instead, politics.co.uk reveals.

Virgin Atlantic, on the other hand, is calling on the aviation
industry to invest in the technology, which will deliver lighter
and cleaner planes and fossil-free fuels, Paul Charles, Virgin
spokesman, was quoted by the Associated Press as saying.

Mr. Charles added taxing passengers could harm the economy as
they make U.K. airlines less competitive and shift jobs to other
countries in Europe.

                            About BA

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

                          *     *     *

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


DENA BANK: Fitch Affirms 'D/E' Individual and '4' Support Rating
----------------------------------------------------------------
Fitch Ratings, on March 16, 2007, assigned a National Short-term
rating of 'F1+(ind)' to Dena Bank's INR5 billion certificates of
deposits programme.  At the same time, the agency has affirmed
DB's other ratings as follows:

   -- National Long-term rating at 'A+(ind)',
   -- Individual at 'D/E',
   -- Support at '4', and
   -- INR3bn Upper Tier II bond issue at 'A(ind)'.

The Outlook on the ratings is Stable.

The agency notes that over the past three years, there has been
a significant improvement in the bank's reported asset quality
ratios.  This has led to the upgrade of DB's Individual rating
to 'D/E' from 'E' in October 2006.  However, the agency notes
that the bank's small size and higher net non-performing loans
to equity ratio, when compared to other government banks, are
factors to keep an eye on.  The Short-term rating is supported
by a healthy renewal of retail deposits, adequate access to the
inter-bank money market and the holdings of government
securities in excess of the regulatory minimum.

DB is one of the smaller government banks and its network of
1,123 branches is primarily based in the Western states of
Gujarat and Maharashtra.  The government's 51.2% stake limits
the bank's flexibility to raise common equity.  The bank's net
non-performing loans ratio (2.5%, FYE06: 3.1%) and capital
adequacy ratio (12.1%, FYE06: 10.6%) improved in the nine months
ended December 2006.


DENA BANK: Net Profit Down 15% to INR705.3MM in Dec. 2006 Qtr.
--------------------------------------------------------------
Dena Bank's net profit decreased in the three months ended Dec.
31, 2006, despite increased revenues.

Dena Bank posted a net profit of INR705.3 million for the
quarter ended Dec. 31, 2006, down 15% from the INR831.8-million
profit booked in the corresponding quarter in 2005.

In the quarter ended Dec. 31, 2006, the bank's income totaled
INR6.93 billion, a 15% increase from the INR6.02 billion income
earned in the December 2005 quarter.

The decrease in the net income figure could be attributed to the
bank's increased expenditures and much higher provision for
taxes.

The bank's expenses soared 20% from INR3.99 billion in the
quarter ended Dec. 31, 2005, to INR4.78 billion in the December
2006 quarter.   The bank provided INR(217.9) million tax
provision in the December 2006 quarter, compared to INR55.2
million in the December 2005 quarter.

Provisions and contingencies are just about the same for the two
quarters -- INR1.24 billion in December 2006 and INR1.25 billion
in December 2005.

A copy of the bank's financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange at http://ResearchArchives.com/t/s?1bae

                          *     *     *

Headquartered in Mumbai, Dena Bank -- http://www.denabank.com/
-- is principally engaged in the provision of a range of
financial and banking solutions.  It offers both retail banking
and corporate banking services.

On March 16, 2007, Fitch affirmed the bank's 'D/E' Individual
Rating and '4' Support Rating.


ESSAR OIL: Obtains Shareholders' Consent on Delisting
-----------------------------------------------------
Essar Oil Ltd has obtained the consent of its shareholders, with
requisite majority, to have the company's equity shares delisted
from the Bombay Stock Exchange Ltd and the National Stock
Exchange of India Ltd in terms of Securities and Exchange Board
of India (Delisting of Securities) Guidelines, 2003, a
regulatory filing discloses.

As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 13, 2007, Essar Oil's board of directors sought the consent
of the shareholders for the delisting by way of postal ballot.

The company believes the delisting will offer more flexibility
in its operations and management, greater efficiencies and at
the same time provide an exit opportunity for its shareholders.

Headquartered in Gujarat, India, Essar Oil --
http://www.essar.com/-- is a fully integrated oil company of  
international size and scale, covering the entire value chain
from exploration and production to refining and retailing of
oil.  Essar has set up over 900 retail outlets which are fully
operational and plans to set up 2500 retail outlets by the end
of 2007.  Essar Oil employs highly qualified and experienced
technical staff at its refinery.

                          *     *     *

On Aug. 23, 2005, CRISIL Ratings reaffirmed the outstanding
"D" rating on the INR5.65-billion and INR2-billion Non-
Convertible Debenture programmes of Essar Oil Limited.  The
rating indicates that the instruments are in default.


HDFC BANK: Venkat Rao Gadwal Quits from Director Post
-----------------------------------------------------
HDFC Bank Ltd informs the Bombay Stock Exchange that Dr. Venkat
Rao Gadwal has relinquished his office and ceased to be the
bank's director with effect from the close of business hours on
March 14, 2007.

The resignation is pursuant to the provisions of Banking
Regulation Act, 1949, the bank explains.

Dr. Gadawal was appointed as the bank's director on March 15,
1999.

Headquartered in Mumbai, India, HDFC Bank Limited --
http://www.hdfcbank.com/-- is a private sector bank that offers   
a range of commercial and transactional banking services and
treasury products to wholesale and retail customers.  The bank
operates in three segments: retail banking, wholesale banking
and treasury services.  The retail banking segment serves retail
customers through a branch network and other delivery channels.
The wholesale banking segment provides loans and transaction
services to corporate and institutional customers.  The treasury
services segment undertakes trading operations on the
proprietary account, foreign exchange operations and derivatives
trading.

Fitch Ratings, on June 1, 2005, gave HDFC Bank a 'C' individual
rating.


HDFC BANK: To Vest 41,79,700 Stock Options under ESOS
-----------------------------------------------------
HDFC Bank Ltd's compensation committee has approved the vesting
of 41,79,700 options on under the Employees Stock Option Schemes
-- ESOS-005, ESOS-006 and ESOS-007.

The committee made the decision at its meeting on March 9.

According to a filing with the Bombay Stock Exchange, the
schedule for the vesting of the stock options will be:

   -- March 26, 2007 for ESOS-005 and ESOS-006; and

   -- July 18, 2007 for ESOS-007.

Headquartered in Mumbai, India, HDFC Bank Limited --
http://www.hdfcbank.com/-- is a private sector bank that offers   
a range of commercial and transactional banking services and
treasury products to wholesale and retail customers.  The bank
operates in three segments: retail banking, wholesale banking
and treasury services.  The retail banking segment serves retail
customers through a branch network and other delivery channels.
The wholesale banking segment provides loans and transaction
services to corporate and institutional customers.  The treasury
services segment undertakes trading operations on the
proprietary account, foreign exchange operations and derivatives
trading.

Fitch Ratings, on June 1, 2005, gave HDFC Bank a 'C' individual
rating.


TATA MOTORS: CRISIL Reaffirms Ratings of Two Debt Programmes
------------------------------------------------------------
Credit Rating Information Services of India Ltd reaffirms the
ratings of Tata Motors Ltd's debt programmes:

   -- INR0.50 Billion Non-Convertible Debenture Issue,  
      AA+/Stable; and

   -- INR18 Billion Short-Term Debt Programme, P1+.

The ratings on Tata Motors Ltd's debt programmes reflect the
company's strong market position across commercial vehicle,
passenger car and utility vehicle segments, and its healthy
financial profile.  Tata Motors' strong market position is
underpinned by a dominant 65% share in the domestic CV market,
supported by its wide distribution and after-sales service
network.

Continued success of the 207 DI/307 DI models and Tata ACE in
the high-growth sub-four tonne category have pushed the
company's market share in the LCV segment to an estimated 63% in
2006-07 (refers to financial year, from April 1 to March 31)
from 43% in 2002-03.  The transfer of technology and new designs
from Tata Daewoo CV Ltd, Korea, have reduced the time and cost
of product development.  CRISIL believes that Tata Motors will
continue to retain its strong position in the domestic CV
industry.

Tata Motors is among the top three players in the domestic
passenger vehicle segment, with a market share of around 17%.
Growth in demand for passenger cars, and increased acceptance of
its products (especially in the diesel segment) has resulted in
strong volume growth for Tata Motors.  In the entry-level mid-
size segment, its Indigo model is one of the largest selling
cars.  Despite the company's success in the passenger car
segment, the domestic car market remains extremely competitive
with expected product launches by all major car manufacturers in
both the petrol and diesel segments.  Unlike other players in
the passenger vehicle segment, Tata Motors does not have access
to a ready suite of new models.  The company plans to launch a
new platform in 2007-08 to gradually replace the existing Indica
platform, and it is also working on a small car project.

The ratings also reflect the company's strong financial profile.
High volume growth due to the extended upcycle in the CVs and
steady growth in passenger cars sales since 2002-03 have
strengthened Tata Motors' financial profile.  The company's
topline has registered an average growth of 30% over the past
four years.  Strong cash accruals, equity infusions following
partial conversion of the foreign currency convertible bond
issues made in July 2003 and April 2004, and the exercise of
warrants attached with the 2001-02 rights issue, have
strengthened the company's capital structure.  Tata Motors has
issued two sets of FCCBs -- in April 2004 and March 2006 -- for
a total of US$500 million.

Tata Motors' capital requirements are expected to increase with
the company's INR115 billion capital expenditure plan over the
next four years.  Further, with aggressive plans for the captive
vehicle financing business including TML Financial Services Ltd,
the need to regularly infuse capital, will entail large funding
requirement for Tata Motors.  CRISIL expects Tata Motors'
leverage to increase in the medium term.  A weakening of
domestic demand for CVs, coupled with delays in stabilisation or
market acceptance of the company's new products (including the
small car), could result in further increase in borrowings,
weakening the company's financial profile.  The cyclical nature
of the Indian CV segment and the high investment intensity of
all its businesses that necessitates continuous capital
expenditure constrain the rating.

In the short-to-medium term, CRISIL believes that Tata Motors
will continue to maintain a comfortable financial profile
because of its strong cash accruals (expected at over
INR20 billion annually post dividend), and its largely
unutilised bank lines of INR27 billion.

                            Outlook

CRISIL expects Tata Motors to maintain its credit profile over
the medium term, supported by its robust market position and
sound financial profile.  The rating could move upwards if the
company significantly improves its cash flow stability.  Tata
Motors could achieve this by strengthening its market position
in, and increasing the proportion of its revenues from, the
passenger car market; increased exports would also help de-risk
cash flow volatility.  The rating would come under pressure if
large debt-funded capital expenditure or acquisitions were to
coincide with a downturn in the business cycle for CVs.

                        About the Company

Tata Motors is India's largest fully integrated automobile
company, with a capacity to produce 535,500 vehicles per year.
It manufactures and sells passenger cars, multi-utility
vehicles, and CVs.  The company has over 130 models of light,
medium, and heavy CVs, ranging from 0.75 tonne to 40 tonnes, 12-
60 seater buses, and construction, off-road and defence
vehicles.  Tata Motors' passenger cars include the Indica and
the Indigo models in petrol and diesel versions, while its
multi-utility vehicles include Tata Sumo, Spacio, and Tata
Safari.  The company's main subsidiaries are Tata Daewoo CV Ltd,
a heavy truck manufacturing company in Korea, Telco Construction
Equipment Ltd, a construction equipment manufacturer, and two
automotive components businesses.  In June 2006, Tata Motors set
up TMLFSL, a captive finance subsidiary.  Prior to this, Tata
Motors had been financing commercial vehicles and passenger cars
through Tata Motorfinance, an in-house division.  TMLFSL
finances CVs and passenger cars manufactured by Tata Motors and
construction equipment manufactured by Telcon.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services raised its
corporate credit ratings for Tata Motors to 'BB+' from
'BB'.  The outlook is stable.  At the same time, Standard &
Poor's has raised its rating on Tata Motors' senior unsecured
notes to 'BB+' from 'BB'.

Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.


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

ALCATEL-LUCENT: Completes UMTS/HSDPA Network Deployment with O2
---------------------------------------------------------------
Alcatel-Lucent and Manx Telecom, a wholly owned subsidiary of
O2, have successfully completed the first, third-generation UMTS
and HSDPA network deployment using the 900 MHz spectrum on the
Isle of Man.  This real life field trial followed a series of
Alcatel-Lucent first demonstrations of UMTS 900MHz in Europe.

During the six-month trial, the companies leveraged the lower
frequency to extend UMTS voice and HSDPA data coverage and
measured the benefits of deploying UMTS at 900 MHz using
Alcatel-Lucent's UMTS/HSDPA base station products developed for
this spectrum band.  A scanner supplied by Rhode & Shwartz was
used to measure UMTS900 against UMTS2100 and GSM900 for indoor
and outdoor coverage.

"Alcatel-Lucent is the only vendor with a field-proven UMTS 900
MHz solution, which positions us well in the market place as the
industry moves forward with making this frequency available for
use in several European countries,"said Mike Loundes, Chief
Technology Officer, Manx Telecom.

Deploying UMTS/HSDPA technology in the 900 MHz spectrum can help
mobile operators cost-effectively deliver UMTS/HSDPA services
because the lower frequency provides an important increase in
base station coverage, significantly reducing the number of
sites required for rural coverage.  Additionally, it enables
better signal penetration for in-building coverage, 30% better
than with 2100 MHz and can reach 40% in deep indoor penetration.

The trial also proved that the HSDPA throughput could increase
by as much as 10%, raising overall network capacity by around
5%.  Another critical finding was the ability of the network to
hand over calls between base stations operating at different
frequencies.

The tests confirmed that an incumbent GSM900 operator could
reuse sites for UMTS technology without having to completely
redesign and redeploy the network.  This will significantly
reduce operational costs tied to new network deployments.

"With O2, we are proving that Alcatel-Lucent is uniquely
positioned for new spectrum opportunities such as 900 MHz.
Alcatel-Lucent's deepest and broadest wireless portfolio in the
industry integrates the best of the newly Alcatel, Lucent and
Nortel combined forces to establish a strong footprint in the
telecom equipment market," said Philippe Keryer, President of
Alcatel-Lucent's GSM/W-CDMA/WiMAX activities.

On Nov. 1, 2005, O2, Manx Telecom and what is now Alcatel-
Lucent, launched the first commercial HSDPA network service in
Europe on the Isle of Man.  This commercial network, deployed in
the 2100 MHz spectrum band, was used during the trial to
benchmark against the 900 MHz field trial.

As a global leader in the development and deployment of third-
generation networks, Alcatel-Lucent has deployed commercial 3G
systems for more than 70 operators worldwide.

                      About Alcatel-Lucent

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

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

                          *     *     *

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

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

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


ALCATEL-LUCENT: To Deploy First Urban WiFi Network in Trento
------------------------------------------------------------
Alcatel-Lucent disclosed that Tecnofin Immobiliare, owned by the
public administration of the Italian province of Trento, has
awarded Alcatel-Lucent and a consortium of sub-contracting
companies that includes Essentia S.p.A. and Sensi s.r.l, a
contract to supply and integrate the first urban WiFi network in
Trento.  This broadband WiFi wireless access network will help
bridge the digital divide, bringing high-speed Internet access
even to small areas still not reached by DSL.

This network will enable Trentino province to provide
municipalities, businesses of all sizes and residential users
with broadband wireless access to the Internet as well as voice
services.  It will serve public sites in the area, including
schools, businesses and individual households, and will deliver
broadband services to inhabitants and visitors.

"Trentino regards innovation as one of the mainstays on which to
base its own territorial policies development, by focusing on
opening to other realities on a European scale, and on its
network development in order to achieve competitiveness, social,
economical and cultural growth," Mr Lorenzo Dellai, Province of
Trento's President, has emphasized.  "The network Alcatel-Lucent
is deploying will provide 1,600 WiFi access points and will be
one of the largest in Italy and all of Europe."

Alcatel-Lucent will provide the engineering, integration,
installation and commissioning and will be in charge of the
operation, monitoring and maintenance of the WiFi network, which
will employ an existing Alcatel-Lucent optical backbone network.
In addition it will provide its Alcatel-Lucent 9500 MXC, a new
generation of digital, medium-to-high-capacity, point-to-point
microwave radio.

"This complex and sophisticated project is further proof of our
global track-record for network and services integration," said
Olivier Picard, President of Alcatel-Lucent's Europe and South
activities.  "This success confirms Alcatel-Lucent's leading
position as a turnkey provider of broadband access solutions
helping bridge the digital divide.  This contract demonstrates
the value of our Broadband for All vision."

                    About Tecnofin Trentina

Is a public financial company, which through its control of
Tecnofin Immobiliare S.r.l., financially supports the Province
of Trento for telecommunications projects.  Tecnofin Immobiliare
S.r.l., with reference to the agreement with the province of
Trento, has the task of enabling the region with a broadband
network, which includes not only the wireless project, but also
an 800 Km optical backbone.

                      About Alcatel-Lucent

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

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

                          *     *     *

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

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

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


APEXINDO PRATAMA: Gets Drilling Contracts Totaling US$22.5 Mil.
---------------------------------------------------------------
PT Apexindo Pratama Duta has oil and gas drilling contracts
aggregating US$22.5 million, Asia Pulse reports.

Citing Apexindo President Hertriono Kartowisastro, the report
says that the drilling contracts comprise:

   1. Vico's six-month extension US$13.9 contract for drilling
      in East Kalimantan;

   2. a contract with Pearol (Tungkal) Limited worth US$2.6
      million for oil drilling in the Tungkal area in Jambi;

   3. a US$2.5-million contract from Lundin Blora BV for work in
      East Java; and

   4. a US$3.5-million contract from JOB Pertamina-Medco for
      work in Sulawesi.

                     About Apexindo Pratama

Headquartered in Jakarta, Indonesia, PT Apexindo Pratama Duta
Tbk -- http://www.apexindo.com/-- is a national onshore and  
offshore drilling contractor that has been serving both
prominent local and international clients domestically as well
as abroad for the last two decades.

Apexindo Pratama is controlled by Indonesia's largest listed
energy firm, PT Medco Energi International Tbk (MEDC.JK), which
has a 52% stake.

Apexindo Pratama has recorded a net loss of IDR43.126 billion in
fiscal year 2005, compared with a IDR36.524-billion net loss in
2004.


BANK MANDIRI: Sets Aside IDR11 Tril. for Small-Scale Plantations
----------------------------------------------------------------
PT Bank Mandiri will provide a maximum of IDR11 trillion in new
loans to the smallholder plantation sector to be disbursed in
stages between 2007 and 2010, the Jakarta Post reports.

The loans, which will finance about 321,268 plantation hectares
producing palm oil, cocoa and rubber, will be channeled through
large-scale plantation companies that act as guarantors, The
Post relates citing Mandiri Micro and Retail Banking Director
Budi Gunadi Sadikin.

Mr. Budi told the Post that the new loans would increase
Mandiri's total outstanding loans value to the plantation sector
to IDR14.39 trillion, consisting of IDR11.3 trillion and IDR3.09
trillion to industrial plantation firms and small-scale
plantation cooperatives and growers respectively.

The report says that based on the central bank's figures,
Mandiri's outstanding loans to the plantation sector account for
36% of the IDR39.5 trillion in total borrowing by the sector.

Mandiri President Agus D. Martowardojo expects the increased
lending to the sector will help the bank achieve its 20% lending
growth target for this year, the report adds.

                       About Bank Mandiri

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

The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service revised the outlook to
positive from stable of PT Bank Mandiri's senior debt and
foreign currency long-term deposit ratings.  The bank's short-
term deposit rating and long-term subordinated debt rating
continue to carry Moody's stable outlook while the bank
financial strength remains on review for possible upgrade.

Moody's detailed ratings for Bank Mandiri are:

   -- senior/subordinated debt of Ba3/Ba3;

   -- foreign currency long-term/short-term deposit of B2/Not
      Prime; and

   -- bank financial strength of E+.

Fitch Ratings has affirmed all the ratings of Bank Mandiri as
follows:

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

   * Short-term rating 'B',

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

   * Individual 'D', and

   * Support '4'.

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

The TCR-AP reported on March 12, 2007, that the Indonesian
government hopes that Bank Mandiri's non- performing loan ratio
can return to a normal level of below 5% this year after
reaching a peak of 26.66% in 2005.


BANK MANDIRI: Wants to Double Market Value by 2010
--------------------------------------------------
PT Bank Mandiri wants to double its market value to
US$10 billion by 2010 to become a regional bank and even rival
regional competitors including DBS Group Holdings Ltd, Bloomberg
news reports, citing the bank's Chief Financial Officer Pahala
Mansury.

According to the report, Mandiri wants to tap accelerating
growth in Indonesia, where the government forecasts expansion of
6.3% in 2007.

Bloomberg notes that Mandiri's net non-performing loan ratio
improved to 5.9% at the end of 2006 from 15.3%in 2005, which
brings the bank close to the central bank's criterion of 5%,
allowing Mandiri to acquire rivals.

Without naming potential targets, Mr. Mansury says the bank may
buy domestic rivals.

                       About Bank Mandiri

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

The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service revised the outlook to
positive from stable of PT Bank Mandiri's senior debt and
foreign currency long-term deposit ratings.  The bank's short-
term deposit rating and long-term subordinated debt rating
continue to carry Moody's stable outlook while the bank
financial strength remains on review for possible upgrade.

Moody's detailed ratings for Bank Mandiri are:

   -- senior/subordinated debt of Ba3/Ba3;

   -- foreign currency long-term/short-term deposit of B2/Not
      Prime; and

   -- bank financial strength of E+.

Fitch Ratings has affirmed all the ratings of Bank Mandiri as
follows:

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

   * Short-term rating 'B',

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

   * Individual 'D', and

   * Support '4'.

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

The TCR-AP reported on March 12, 2007, that the Indonesian
government hopes that Bank Mandiri's non- performing loan ratio
can return to a normal level of below 5% this year after
reaching a peak of 26.66% in 2005.


EXCELCOMINDO PRATAMA: Applies for Low-Cost Service License
----------------------------------------------------------
PT Excelcomindo Pratama is applying for a low-cost service
license, Bloomberg News reports.

According to the report, Excelcomindo President Director Hasnul
Suhaimi said that the company wants to offer by the end of 2007,
or early next year, cheap phone calls and text messaging
services using global system for mobile communication
technology.

The company is following PT Telekomunikasi Indonesia's example
in offering budget services to gain from a new market segment as
competition increases, the report notes.

                    About Excelcomindo Pratama

Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications  
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
services.  In addition, Excelcomindo provides voice, data and
other value-added cellular telecommunications services.  Its
product lines include jempol, bebas and xplor.  The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
call centers.  Excelcomindo starter packs and voucher reloads
are also sold by independent retailers.

Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%.  TM and
its parent Khazanah together hold 73.7% in XL.


EXCELCOMINDO PRATAMA: Pefindo Assigns 'idAA-' Ratings
-----------------------------------------------------
Pefindo assigned "idAA-" ratings to PT Excelcomindo Pratama Tbk
and the Company's proposed Bond/2007 amounting to a maximum of
IDR2 trillion.  The outlooks of both ratings are 'Stable'.  

The ratings reflect favorable telecommunication industry, the
Company's stable market position in the midst of the tightening
competition, and stronger profile of majority shareholder.  
However, those strengths have been slightly offset by a huge
funding requirement for further expansion and the Company's high
exposure to foreign currency risk.

Since its first operation in October 1996, EXCL has been
consistently able to hold its position as the 3rd largest
cellular operator in Indonesia after Telkomsel and Indosat.  Its
main products are Xplor, XL Bebas, Jempol and Jimat.  In 2005,
Telekom Malaysia, bought shares of Nynex Indocel Holding Sdn
Bhd, 4.2% shares from Mitsui & Co., and parts of PT Rajawali
Corpora's shares.  Later in the same year, EXCL listed its
shares at the Jakarta Stock Exchange.  As of end 2006, EXCL's
shareholders consisted of Indocel Holding Sdn Bhd, Khazanah
Nasional Bhd, PT Rajawali Corpora, AIF and public.

                    About Excelcomindo Pratama

Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications  
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
services.  In addition, Excelcomindo provides voice, data and
other value-added cellular telecommunications services.  Its
product lines include jempol, bebas and xplor.  The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
call centers.  Excelcomindo starter packs and voucher reloads
are also sold by independent retailers.

Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%.  TM and
its parent Khazanah together hold 73.7% in XL.

                          *     *     *

A Feb. 7, 2007 report by the Troubled Company Reporter - Asia
Pacific stated that Moody's Investors Service revised the
outlook to positive from stable on Excelcomindo Finance Company
B.V.'s Ba3 foreign currency senior unsecured bond rating.  The
bond is irrevocably and unconditionally guaranteed by PT
Excelcomindo Pratama.  This rating action follows Moody's
decision to revise the rating outlook on Indonesia's Ba3 foreign
currency sovereign ceiling to positive.

At the same time, Moody's has affirmed the Ba2 local currency
corporate family rating of Excelcomindo Pratama.  The outlook
for the rating remains stable.

Fitch Ratings, on June 5, 2006, upgraded PT Excelcomindo
Pratama's Long-term foreign currency and local currency Issuer
Default Ratings to 'BB-' from 'B+'.  The outlook on the ratings
is stable.


NORTEL NETWORKS: Reports Results for 4th Qtr. and Full Year 2006
----------------------------------------------------------------
Nortel Networks Corporation's continued focus on growth
initiatives and organizational simplification delivered
measurable operational and financial progress as the Company
announced results for the fourth quarter and audited results for
the year 2006.  These results were prepared in accordance with
United States generally accepted accounting principles in U.S.
dollars.

"A relentless focus on execution in 2006 delivered solid
progress on our Business Transformation plan and laid the
foundations upon which Nortel will build its future.  I am
particularly pleased with the progress made in the fourth
quarter as we grew revenues by 10 percent, grew our backlog, and
improved operating margin and operating cash flow performance.
In fact, the fourth quarter operating margin, was the highest in
eight quarters and the operating cash flow performance for 2006
was the best since 1998," said Mike Zafirovski, Nortel president
and CEO.  "We are 100% focused on the future and are taking the
necessary steps to reduce costs, grow revenues faster than the
market in key next-generation solutions and position the Company
for profitable growth.  There is a significant amount of work
left to be done, but today Nortel is stronger than it has been
in years."

Operating Margin is a non-GAAP measure defined as Gross Profit
less SG&A and R&D expenses divided by Revenue.  The Company
believes that operating margin is a meaningful measurement of
operating performance.

                   Fourth Quarter 2006 Results

Revenues for the fourth quarter of 2006 were US$3.32 billion.
Nortel achieved year over year revenue increases of 10% in the
quarter and 14% sequentially as it continued to drive its core
strategy and expand its business through growth in our strategic
priority areas of the Transformed Enterprise, Next Generation
Mobility and Convergence, and Services and Solutions.

Net loss in the fourth quarter of 2006 was US$80 million, or
US$0.19 per common share on a diluted basis, included a gain of
US$164 million on the sale of assets, a shareholder litigation
expense of US$234 million reflecting a mark-to-market adjustment
of the share portion of the global class action settlement and
special charges of US$29 million for restructuring.  The net
loss in the fourth quarter of 2005 was US$2,286 million, which
included a litigation expense of US$2,474 million, a tax benefit
of US$134 million and special charges of US$24 million.  The net
loss in the third quarter of 2006 was US$63 million, which
included a benefit of approximately US$43 million related to the
announced changes to the North American employee benefit plans,
a gain of US$15 million on the sale of assets, a shareholder
litigation expense of US$38 million and special charges of US$22
million.

The fourth quarter of 2006 operating margin was impacted by two
items, higher accruals for commissions and incentive plans,
largely offset by increased profitability of our LG-Nortel joint
venture resulting from the recognition of previously deferred
revenue.  Although we expect improved annual performance from
the LG-Nortel joint venture in 2007, the strong performance in
the fourth quarter of 2006 is not expected to be repeated to the
same extent in quarters throughout 2007.

Deferred revenues decreased sequentially by US$152 million from
third quarter 2006 and by US$187 million since the beginning of
2006. Order input for the quarter was US$3.43 billion, up from
US$3.38 billion in the fourth quarter of 2005 and up from the
US$2.33 billion in the third quarter of 2006.

Mobility and Converged Core Networks revenues in the fourth
quarter of 2006 were US$1,672 million, a decrease of 5% compared
with the year-ago quarter and an increase of 10% sequentially.  
In the fourth quarter, the strong pace of CDMA growth was offset
by declines in the GSM business, primarily due to a contract in
Asia not repeated in 2006 and a decrease in North American GSM
revenues.

Recent MCCN highlights include:

    * Signed a US$2 billion wireless equipment and services deal
      with Verizon Wireless;

    * Completed sale of certain assets and liabilities related
      to UMTS access business to Alcatel-Lucent;

    * Introduced mobile WiMAX portfolio to position Nortel for
      leadership in the emerging 4G market;

    * Signed WiMAX contract with Chunghwa Telecom in Taiwan; and

    * Conducted trials with Golden Telecom in Russia and with
      Toshiba Corporation for the Japanese Government.

Enterprise Solutions revenues in the fourth quarter of 2006 were
US$806 million, an increase of 61% compared with the year-ago
quarter and an increase of 39% sequentially.  The year over year
strong growth was driven by the LG-Nortel joint venture and
robust growth in voice, data and applications revenues.  We
believe that we gained market share for the second consecutive
quarter.

Recent ES highlights include:

    * Signed a three-year partnership agreement with BT to drive
      the uptake of VoIP, multimedia, instant messaging and
      mobile communications by UK enterprises of all sizes;

    * The Innovative Communications Alliance formed by
      Nortel and Microsoft unveiled a roadmap for future
      development, signed agreements with dozens of customers,
      and has developed a pipeline of hundreds of prospects who
      want to realize the benefits of unified communications;

    * Contracts signed with the New York Times and the Montreal
      Canadiens hockey team;

    * Several new wins in the hospitality sector, including the
      Louisiana Superdome, Kernzer International Limited and the
      Intercontinental Jeddah Hotel in Saudi Arabia;

    * A string of new municipal-wireless customer wins,
      including Carlsbad, New Mexico; Occoquan Wireless in       
      Occoquan, Virginia; and Ronco Communications in Niagara
      County, New York;

    * Momentum in the Middle East, with contracts from the
      American University in Cairo and the Dubai Silicon Oasis,
      the region's innovations hub for high-tech industries;

    * Strategic additions to the enterprise portfolio, including
      two data products targeted specifically at the small and
      medium business market, and enhancements to the municipal
      wireless and contact center portfolios.

Metro Ethernet Networks revenues in the fourth quarter of 2006
were US$473 million, an increase of 18% compared with the year-
ago quarter and an increase of 9% sequentially.  A strong
performance in the optical networking business was partially
offset by declines in the data networking and security space.

Recent MEN highlights include:

    * MEN began 2007 with a groundbreaking win with BT,
      positioning Nortel as an important vendor for that
      company's 21st Century project and validating our Provider
      Backbone Transport technology;

    * Signed contract with MTC, a leading mobile operator in the
      Middle East and Africa, to deliver high-speed mobile
      services such as mobile video, multimedia messaging and
      web browsing in Kuwait;

    * Win with Iraq Telecommunications & Post Corporation,
      Iraq's sole fixed-line operator, to build a nationwide
      optical backbone;

    * Other contracts around the globe included Ntl Telewest,
      the UK's largest cable operator; the Chinese Academy of
      Sciences; Joint University Computer Center in Hong Kong;
      and Easynet Belgium.

Global Services revenues in the fourth quarter of 2006 were
US$313 million, an increase of 2% compared with the year-ago
quarter with growth across all service groups and a decrease of
5% sequentially.

Recent GS highlights include:

    * Signed a three-year contract extension with Eastman Kodak
      Company for management of Kodak's U.S. voice network;

    * Opened a new customer network management center in New
      Delhi, India, to deliver services & solutions to
      enterprises, service providers and cable operators
      worldwide;

    * Introduced a new network managed service - the industry's
      first real-time, end-to-end support for IP telephony voice
      quality - to help enterprises speed their transition to
      VoIP;

    * Enhanced an already broad channel partner Assurance
      Services portfolio for Europe, Middle East and Africa with
      the addition of a program for small and medium business.

Gross margin

Gross margin was 40% of revenue in the fourth quarter of 2006,
reflecting a strong contribution from the LG-Nortel joint
venture and CDMA solutions.  This compares to gross margin of
39% for the fourth quarter of 2005 and 385 for the third quarter
of 2006.  Compared to the fourth quarter of 2005, there were
significant improvements in MCCN gross margins due to the
negative impact of certain contracts in the fourth quarter of
2005 not repeated in the fourth quarter of 2006, partially
offset by a significant decline in MEN margins due to product
mix and lower margins in ES and GS.

Selling, general and administrative

SG&A expenses were US$694 million in the fourth quarter of 2006,
compared to US$683 million for the fourth quarter of 2005, and
US$585 million for the third quarter of 2006.  Compared to the
fourth quarter of 2005, SG&A was impacted by the consolidation
of the LG-Nortel joint venture, higher accruals for commission
and bonus payments, and higher costs related to our business
transformation initiatives, partially offset by lower
restatement related and employee benefit plan costs.

Research and development

R&D expenses were US$488 million in the fourth quarter of 2006,
compared to US$457 million for the fourth quarter of 2005 and
US$474 million for the third quarter of 2006.  Compared to the
fourth quarter of 2005, R&D was impacted by increased investment
in targeted product areas, higher accruals for bonus payments
and the impact of the consolidation of the LG-Nortel joint
venture, partially offset by lower employee benefit plan costs.

Other

Special charges in the fourth quarter of 2006 of US$29 million
included US$13 million related to our prior restructuring plans
and US$17 million for the restructuring program announced June
27, 2006.  As discussed in our February 7, 2007 press release,
the business transformation programs to reduce operating costs
and improve operating margins will result in additional
restructuring costs, as the program is implemented.

Other income - net was US$34 million of income for the fourth
quarter of 2006, which primarily included interest and dividend
income of US$47 million.

Minority interest expense was US$58 million in the fourth
quarter of 2006, compared to US$2 million for the fourth quarter
of 2005 and US$11 million for the third quarter of 2006.
Compared to the fourth quarter of 2005, minority interest
expenses were primarily driven by the profitability of the LG-
Nortel joint venture in the fourth quarter of 2006 resulting
from the recognition of previously deferred revenue.

Interest expense on long-term debt was US$84 million in the
fourth quarter of 2006, compared to US$54 million for the fourth
quarter of 2005 and US$85 million for the third quarter of 2006.
Compared to the fourth quarter of 2005, interest expense on
long-term debt was up due to the increase in interest costs
associated with the US$2 billion aggregate principal amount of
senior notes issued in July 2006.

Cash

Cash balance at the end of the fourth quarter of 2006 was
US$3.49 billion, up from US$2.60 billion at the end of the third
quarter of 2006.  This increase was primarily driven by positive
cash from operations of US$520 million as well as US$306 million
in cash received upon the closing of the sale of certain assets
and liabilities related to the UMTS Access business.

                     Full Year 2006 Results

For the year 2006, revenues were US$11.42 billion compared to
US$10.51 billion for the year 2005.  The Company reported net
earnings for the year 2006 of US$28 million, or US$0.06 per
common share on a diluted basis, compared to a net loss of
US$2,610 million, or US$6.02 per common share on a diluted
basis, for the year 2005.

Net earnings for the year 2006 included a shareholder litigation
recovery of US$219 million reflecting mark-to-market adjustments
of the share portion of the global class action settlement,
special charges of US$105 million primarily related to
restructuring activities, a benefit of approximately US$43
million related to the announced changes to the North American
employee benefit plans and a benefit of US$206 million related
to the sale of assets.  The year 2005 results included a
litigation expense of US$2,474 million, special charges of
US$169 million and US$47 million of costs related to the sale of
businesses and assets.

Pensions

The unfunded status of the Company's pension benefit obligation
was US$2.1 billion as of year-end 2006, as compared to US$2.5
billion in 2005.  The decrease of US$425 million resulted from
changes to our North American plans disclosed in the second
quarter of 2006, improved return on assets, and the Company's
contributions to the plans.  The full unfunded status is
recorded as a liability on the balance sheet in accordance with
SFAS 158.

Outlook

Commenting on the Company's financial expectations, Peter
Currie, executive vice president and chief financial officer,
Nortel said, "For the full year 2007, we expect revenues to be
flat to down slightly compared to 2006, reflecting a decrease in
revenues as a result of the UMTS Access disposition.  We expect
full year 2007 gross margin to be in the low 40's, as a
percentage of revenues, and operating margin to be at 5 percent,
or higher, of revenues.   For the first quarter of 2007, we
expect revenues to be approximately flat compared to the same
period in 2006, reflecting a decrease in revenues as a result of
the UMTS Access disposition.  We expect first quarter of 2007
gross margin to be in the high 30's, as a percentage of
revenues, and operating expenses to be down modestly compared to
the first quarter of 2006."

      * The Company's financial outlook contains forward-looking
        information and as such, is based on certain
        assumptions, and is subject to important risk factors
        and uncertainties that could cause actual results or
        events to differ materially from this outlook.

      * Operating Margin is a non-GAAP measure defined as Gross
        Profit less SG&A and R&D expenses divided by Revenue.
        The Company believes that operating margin is a
        meaningful measurement of operating performance.

Material Weaknesses

As reported in our 2006 Annual Report on Form 10-K, management
has implemented remedial measures and other actions to
significantly improve Nortel's internal control over financial
reporting, which individually and in the aggregate addressed
most of the internal control issues in the previously reported
five material weaknesses.  As at December 31, 2006, management
has concluded that these measures resulted in the elimination of
the five material weaknesses, with the exception of the
deficiencies that comprise the revenue related material weakness
as at December 31, 2006.  See Item 9A in the 2006 Form 10-K for
further information.

Restatement Completed

The restatement of certain prior periods disclosed on March 1,
2007 has been completed and is reflected in the 2006 Form 10-K.
The restatement includes revisions to the Company's previously
reported 2006 nine month results resulting in increases in
revenues and improvements in net earnings of approximately US$15
million and US$8 million, respectively, as well as revisions to
its previously reported 2005 and 2004 financial results
reflecting reductions in revenue of approximately US$14 million
and US$38 million and increases in net loss of approximately
US$35 million and US$40 million, respectively.  With respect to
financial results prior to 2004, the restatement includes
cumulative reductions in revenues and earnings of approximately
US$28 million and US$2 million, respectively.

Global Class Action Settlement

As previously revealed, the Company signed a definitive
agreement with the lead plaintiffs and Canadian plaintiffs with
respect to most pending and proposed shareholder class actions
commenced against the Company and certain other individuals.
Also as previously disclosed, the settlement remains conditioned
on receipt of all court, securities regulatory and stock
exchange approvals.  Nortel now anticipates that these
conditions will be satisfied shortly, resulting in an effective
date as early as March 20, 2007 for the finalization of the
settlement.  On or about this date, it is anticipated that
approximately 4 percent of the total 62,866,775 Nortel Networks
Corporation settlement shares will be issued to plaintiffs'
counsel in accordance with the terms of the settlement, and be
freely tradable, with the remainder of the shares expected to be
issued, and be freely tradable, in the second half of 2007.

                      About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized  
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.

Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  DBRS says all trends are stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.


ORBITAL SCIENCES: Earns US$7.8 Mil. in Quarter Ended December 31
----------------------------------------------------------------
Orbital Sciences Corp. reported net income of US$7.8 million on
revenues of US$215.8 million for the fourth quarter ended
Dec. 31, 2006, compared with net income of US$7.5 million on
revenues of US$199.6 million for the same period in 2005.

The company's fourth quarter 2006 operating income rose 50% to
US$20.4 million as compared to US$13.6 million of operating
income in the comparable quarter in 2005.

The fourth quarter increase in revenues was primarily due to an
18% increase in satellites and space systems segment revenues,
driven by increased program activity on certain science and
technology satellites and a contract awarded in the third
quarter of 2006 to build and test a new Launch Abort System for
NASA's Orion Crew Exploration Vehicle.  Launch vehicles segment
revenues decreased 8% primarily due to lower revenues from the
target launch vehicle product line.  Transportation management
systems segment revenues increased 61% in the quarter, largely
driven by work on several new contracts started in late 2005 and
early 2006.

For the full year, Orbital reported net income of US$34.9
million on revenues of US$802.8 million in 2006, compared with
net income of US$27.8 million on revenues of US$703.5 million in
2005.  Operating income was US$67.9 million in 2006, up 29% as
compared to US$52.5 million in 2005.

The 2006 increase in revenues was primarily due to a 32%
increase in satellites and space systems segment revenues that
were driven by growth in the communications satellites product
line.  

Commenting on Orbital's financial results, Mr. David W.
Thompson, chairman and chief executive officer, said, "With
exceptionally strong fourth quarter results, Orbital completed
an outstanding year in 2006.  The company's commercial satellite
business generated strong revenue growth and significantly
higher operating profit margins as compared to last year.  Our
missile defense programs also continued to post solid results,
as did the other products in our launch vehicles segment.  In
addition, we completed a long-term debt refinancing late in
2006, enhancing our capital structure and significantly reducing
future interest costs.  We also expect these positive
operational and financial trends to continue in 2007, as we add
human space exploration projects as a new contributor to revenue
growth and profitability for the company."

Orbital reported operating income of US$67.9 million for the
full year 2006, up 29% over 2005.  This increase was due to
significantly higher operating income in the satellites and
space systems segment, primarily attributable to higher
operating results in the communications satellites product line,
driven by substantial growth in contract activity as well as
cost reductions and profit margin improvements on certain
contracts.  Operating income in the launch vehicles segment
declined slightly, while transportation management systems
segment operating income increased due to an increased level of
contract activity in 2006.

In December 2006 the company recorded a US$10.4 million pretax
debt extinguishment charge related to the repurchase of notes
payable.  In addition, the company recorded a US$1.6 million
gain in the fourth quarter of 2006 in connection with the
liquidation of an investment that had been fully written off
several years ago.

At Dec. 31, 2006, the company's balance sheet showed
US$744.5 million in total assets, US$350.2 million in total
liabilities, and $394.3 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1b7e

                 Senior Subordinated Notes Due 2027

In December 2006 the company issued US$143.8 million of 2.4375%
convertible senior subordinated notes due in 2027.  The proceeds
from the sale of the notes, together with cash on hand, were
used to repurchase US$125.9 million of the previously
outstanding principal amount of its 9% senior notes due in 2011
and to repurchase 2.7 million shares of the company's common
stock at a price of US$18.83 per share, for a total of US$50
million.

                       Operational Highlights  

"For the year as a whole, Orbital carried out 16 major launch
vehicle and space system missions and 18 smaller sounding rocket
and missile target launches.  The company also delivered 13
additional rockets, satellites and other space systems for
future deployments," said Mr. Thompson.  "These highly
successful operations increased our record to 63 consecutive
successful major space missions since 2002 and boosted our
record to 149 successes out of 151 major space missions during
the past ten years," Mr. Thompson added.

                     About Orbital Sciences

Orbital Sciences Corp. (NYSE: ORB) -- http://www.orbital.com/--
develops and manufactures small rockets and space systems for
commercial, military and civil government customers.  The
company's primary products are satellites and launch vehicles,
including low-orbit, geosynchronous-orbit and planetary
spacecraft for communications, remote sensing, scientific and
defense missions; ground- and air-launched rockets that deliver
satellites into orbit; and missile defense systems that are used
as interceptor and target vehicles.  Orbital also offers space-
related technical services to government agencies and develops
and builds satellite-based transportation management systems for
public transit agencies and private vehicle fleet operators.

The company also has operations in Indonesia.

As reported in the Troubled Company Reporter on Dec. 12, 2006
Standard & Poor's Ratings Services assigned its 'B+' rating to
the US$143.8 million 2.4375% convertible subordinated notes due
2027 of Orbital Sciences Corp.

The TCR reported on Oct. 3, 2006, that Moody's Investors
Service, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology, confirmed its Ba2 Corporate Family Rating for
Orbital Sciences Corporation and its Ba3 rating on the company's
9% Senior Notes due 2011.  Moody's assigned those debentures an
LGD4 rating suggesting noteholders will experience a 61% loss in
case of default.


PERTAMINA: Bids for 100% Stake in Polyprima Karyareksa
------------------------------------------------------
PT Pertamina has submitted a bid for 100% of PT Polyprima
Karyareksa, Bloomberg News reports, citing Bisnis Indonesia.

According to the report, four investors have submitted bids
including Malaysia's Petroliam Nasional Bhd.  The four companies
are reportedly reviewing Polyprima's accounts in a due diligence
process.

Polyprima specializes in manufacturing purified terephthalic
acid, which is used in the textile and packaging industries.  
The company supplies film and industrial yarn grade PET resins.

                         About Pertamina

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

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

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

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


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

AMERICAN AIRLINES: Pilots Want To Maintain Retirement Age at 60
---------------------------------------------------------------
The Allied Pilots Association, which represents the 12,000
pilots of American Airlines, released the results of two
recently conducted polls that demonstrate strong continuing
support for maintaining mandatory retirement at age 60 for the
nation's commercial pilots.

In the first poll, 86% of American Airlines pilots favored the
current retirement rule, while 12% reported that they wanted a
change -- an overwhelming 7-to-1 margin.  When the poll results
were broken down by age, they showed that even the oldest pilots
expressed a desire to maintain mandatory retirement at age 60.  
Furthermore, the safety of the traveling public was cited as the
No. 1 reason for maintaining the current regulation.  This poll
was conducted by the Wilson Center for Public Research, a
professional survey organization with extensive experience
conducting polls on behalf of a wide variety of pilot groups and
other labor organizations.  The poll, conducted by phone, used a
stratified random sample that resulted in an accurate cross-
section of the American Airlines pilot group.  A total of 600
interviews were conducted, providing a sample margin of error of
4%.

APA also conducted an in-house, Internet-based survey.  Of the
2,496 American Airlines pilots who responded, 79% indicated they
support maintaining mandatory retirement at age 60, while 18%
indicated they desire a change.

Federal Aviation Administrator Marion C. Blakey recently
announced that the Federal Aviation Authority or FAA will issue
a formal Notice of Proposed Rulemaking later this year that
calls for raising retirement age to 65 to comply with a newly
adopted international standard.  Ironically, this untested
standard requires that at least one pilot on the flight deck be
under 60 years old, indicating that there continue to be
legitimate concerns about how old is too old to operate
commercial aircraft.

Since the FAA established age 60 retirement 48 years ago, not
one single airline accident has been attributed to the sudden or
subtle effects of aging.  Multiple studies have shown that a
pilot's mental and physical performance is impaired with
increasing age, and there is no definitive medical or functional
test that can determine which pilots could safely fly past age
60.

"The FAA should consider the concerns of the men and women in
the cockpits who have personally witnessed the impact of
advancing age on their fellow pilots," said APA President
Captain Ralph Hunter.  "APA strongly supports the current
mandatory retirement age of 60 until the FAA can definitely
establish that there will be no decrease in the current level of
flight safety.  Without this assurance, any change would be
tantamount to conducting an experiment on the traveling public."

                About Allied Pilots Association

Founded in 1963, the Allied Pilots Association --
http://www.alliedpilots.org/-- the largest independent pilot  
union in the U.S., is headquartered in Fort Worth, Texas.  APA
represents the 12,000 pilots of American Airlines, including
more than 2,800 pilots on furlough.  The furloughs began shortly
after the Sept. 11, 2001 attacks.  Also, several hundred
American Airlines pilots are on full-time military leave of
absence serving in the armed forces.

                    About American Airlines

American Airlines -- http://www.AA.com/-- is the world's   
largest airline.  American, American Eagle and the
AmericanConnection regional airlines serve more than 250 cities
in over 40 countries with more than 3,800 daily flights.
American Airlines flies to Belgium, Brazil, Japan, among others.
The combined network fleet numbers more than 1,000 aircraft.
American Airlines is a founding member of the oneworld Alliance,
whose members serve more than 600 destinations in over 135
countries and territories.

American Airlines, Inc. and American Eagle are subsidiaries of
AMR Corp.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 21, 2006,
Moody's Investors Service affirmed its 'B3' Corporate Family
rating for AMR Corp. and its subsidiary, American Airlines Inc.


ASHIKAGA BANK: Fitch Affirms Individual Rating at 'E'
-----------------------------------------------------
Fitch Ratings affirmed Ashikaga Bank's ratings as follows:

   -- Long-term foreign and local currency Issuer Default
      ratings  'BBB-' with a Stable Outlook;

   -- Short-term foreign and local currency IDRs 'F3';

   -- Individual rating 'E'; and

   -- Support rating '2'.

Ashikaga's ratings reflect the existing and expected strong
support from the Japanese government.  The Individual rating of
'E', the lowest of Fitch's nine-notch scale, is commensurate
with the bank's negative net worth.

Since implementing a three-year business plan in June 2004,
Ashikaga's asset quality has shown a substantial improvement as
risk-monitored loans decreased by nearly 70% to end-September
2006.  Although the bank seems to have overcome the worst, with
regards to bad loan write-offs, further improvement in its loan
quality is necessary considering its high level of RML to total
loan ratio which stood at over 7% at end-September 2006.

Ashikaga's capital condition has been improving steadily since
March 2004 when the bank reported massive losses due to a surge
in credit costs, though its net worth remains negative.
Total equity ratio rose to -18.51% at end-March 2006 from
-26.57% in the previous year, and the ratio rose again to -
17.39% at end-September 2006.  Such a pace of recovery exceeds
the bank's business plan and Fitch expects the recovery trend to
continue as the credit cost burden is mitigated thanks to the
adequate reserves made from FYE 2004 onwards.

Ashikaga was nationalized in November 2003.  In September 2006
the Financial Services Agency began screening possible sponsors
for Ashikaga's re-privatization.  The sponsors are expected to
be nominated by this summer.

                   About Ashikaga Bank Ltd.

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


BANK OF FUKUOKA: To Be Replaced by Fukuoka Fin'l in S&P Indices   
---------------------------------------------------------------
Standard & Poor's will make certain changes in the S&P Japan
SmallCap 250, S&P Japan MidCap 100 and S&P Japan 500 Indices.  
The changes include:

   Bank of Fukuoka Ltd. a member of the S&P Japan MidCap 100 and
   S&P Japan 500 indices, will be replaced by Fukuoka Financial
   Group Inc  after the market close of Friday, Mar. 30, 2007.
   Bank of Fukuoka Ltd shares will be delisted from the Tokyo
   Stock Exchange following its merger with Kumamoto Family Bank
   Ltd to establish Fukuoka Financial Group Inc.  The shares
   used for the index calculation for the new company will be
   699,799,247 and its IWF will be 0.83.

After the market close of Monday, Apr. 2, 2007, Fukuoka
Financial Group Inc shares used for the index calculation will
be changed to 726,573,520 and its IWF will be updated to 0.84,
and SKY Perfect JSAT Corp shares used for the index calculation
will be changed to 3,696,037 and its IWF will be updated to
0.64.  For index calculation purpose, the price of Bank of
Fukuoka Ltd & JSAT Corp will be frozen as of the close of March
26, the last trading day, to March 30 in the S&P Japan SmallCap
250, S&P Japan MidCap 100 and S&P Japan 500 Indices
respectively.

The Bank of Fukuoka and Kumamoto Family Bank have agreed to pool
their resources under a joint holding company, Fukuoka Financial
Group (FFG), to be established on Apr. 2, 2007.  
Fukuoka Financial will become a financial group that creates
values for all stakeholders by implementing strategies and
measures that make the best use of the respective strengths of
the two banks and creating a synergy through integration.

Masaaki Tani, director and president of the Bank of Fukuoka, and
Kazuyuki Kawaguchi, director and president Kumamoto Family Bank
have developed the First Mid-Term Management Plan for Fukuoka
Financial from  Apr. 2, 2007 to Mar. 31, 2009   
   
                  About The Bank of Fukuoka

Headquartered in Fukuoka-shi, Japan, The Bank of Fukuoka, Ltd.
-- http://www.fukuokabank.co.jp/-- is a regional bank that  
serves its home market of Fukuoka Prefecture and the Kyushu
region in western Japan.  The Bank is principally engaged in the
provision of services that include deposits, loans, as well as
domestic and foreign exchange services.  Additionally, the Bank
is involved in the provision of corporate revival support, debt
management and collection, guarantee and administrative
services.  Through one of its wholly owned subsidiaries, the
Bank also specializes in the management of real estate and the
dispatch of manpower.  As of Mar. 31, 2006, the Bank had six
consolidated subsidiaries and one associated company.

                      *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Oct. 18, 2006, that Fitch Ratings has affirmed the ratings of
Bank of Fukuoka as follows:

   -- Long-term foreign and local currency Issuer Default
      ratings at 'BBB+' with Positive Outlook;

   -- Short-term foreign and local Currency IDRs at 'F2';

   -- Individual at 'C'; and

   -- Support '2'.

The TCR-AP reported on Oct. 18, 2006, that Moody's Investors
Service has affirmed The Bank of Fukuoka's D+ bank financial
strength rating.


FURUKAWA ELECTRIC: S&P Lifts Long Term Rating to BB From BB-
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Furukawa Electric Co. Ltd. to 'BB'
from 'BB-' and its senior unsecured debt rating to 'BB+' from
'BB'. The outlook on the long-term corporate credit rating is
positive.

These rating actions reflect the increase in both companies'
cash flow stability through strengthened profitability backed by
cost reductions, rationalization, and diversification
improvements.  As a result, the financial profiles of Furukawa
Electric are on a recovery trend and are likely to experience
further improvements over the medium term.

Furukawa Electric's earnings have shown steady improvement since
bottoming out in fiscal 2003 (ended Mar. 31, 2004).  The company
suffered substantial losses owing to sharp declines in the
global demand for optical fiber cable and optical transmission
equipment and components as well as the resulting weak
performance in OFS, its U.S. optical fiber manufacturing and
sales subsidiary, which it acquired from Lucent Technologies
Inc. (BB-/Positive/B-1) in fiscal 2001.  However, Furukawa
Electric's telecommunications business achieved operating
profits in fiscal 2005 (ended Mar. 31, 2006) owing to successful
restructuring measures and bottoming-out in demand, while the
OFS unit also recorded operating profits in the six months ended
Sept. 30, 2006, for the first time since the acquisition.

Despite weak performance in the company's telecommunications
business, other business segments including metals, light
metals, and electronics & automotive systems maintained
relatively stable earnings, albeit at a low level.  Although the
metals and light metals segments are vulnerable to market
conditions, and concerns remain over unit price decline in the
electronics & automotive systems segment, Standard & Poor's
believes that Furukawa Electric's resilience to changes in the
market environment has improved solidly, underpinned by ongoing
cost reduction efforts and a shift to high-value added products
in these segments.

Furukawa Electric's financial profile has also improved
significantly owing to debt reduction enabled by recovering
profits and cash flow. The ratio of FFO (funds from operations)
to net debt and the ratio of net debt to total capital improved
to about 10% and 57% at Mar. 31, 2006 from about 3% and 74%
at Mar. 31, 2004, respectively.  Although some fluctuations are
expected due to the company's vulnerability to copper prices,
etc., Standard & Poor's expects the company's financial profile
to continue improving in the next two to three years, and
believes these ratios are likely to improve, reaching
mid-10% and about 50%, respectively.

The rating on the long-term senior unsecured bonds issued by
Furukawa Electric is one notch higher than the long-term issuer
rating on the company.  This reflects Standard & Poor's
assumption that bondholders would incur no losses from default,
as any default by the company would take the form of a
loan waiver, rather than bankruptcy, and as a result, the
default probability on the long-term senior unsecured bonds is
lower than that on bank borrowings.  The bond rating reflects
the company's high exposure to bank borrowings and close
relationship with major banks.  

Ratings List
Upgraded
                                        To                 From
Furukawa Electric Co. Ltd.
Senior Unsecured
  Local Currency                        BB+                BB

Upgraded; CreditWatch/Outlook Action
                                        To                 From
Furukawa Electric Co. Ltd.
Corporate Credit Rating                BB/Positive/--     BB-
/Stable/--

               About Furukawa Electric Co. Ltd.

Headquartered in Tokyo, Furukawa Electric Co., Ltd. --
http://www.furukawa.co.jp/-- provides materials, products, and  
services across a range of fields, encompassing energy,
electronics, optical and information systems, and automobiles.  
The company operates through six business segments:
Telecommunications; Energy and Industrial Products; Metals;
Electronics and Automotive Systems; Light Metals, and Services
and Others.  Furukawa Electric and its subsidiaries manufacture
a range of products, which include optical fibers and cables,
network equipment, bare wires, power cables, plastic products,
copper pipes/stripes, battery products, automotive components
and electrical wires, aluminum products, and cast and forged
products.  The company is also engaged in real estate,
logistics, information and other services.


MIZUHO FINANCIAL: Calyon Files US$750MM Suit Over Staff Poaching
----------------------------------------------------------------
Mizuho Financial Group was sued by its direct competitor --
Calyon -- last week on claims that Mizuho illegally poached
staff from a debt trading unit, Reuters reports.   

The report states that the French investment bank is seeking
US$150 million in compensatory damages and US$600 million in
punitive damages in its complaint, which was filed with the
United States District Court for the Southern District of New
York.  Moreover, Calyon wants the court to stop Mizuho from
soliciting, negotiating or consummating any collaterized debt
obligation transactions in the United States with any party that
had been negotiating with Calyon.

The report says that Mizuho spokesman Ken Atobe declined to
comment on the matter.

According to Reuters, the Calyon complaint identifies 11 of its
former employees, including former senior executives Douglas
Munson and Alexander Rekeda, who were in possession of
confidential and proprietary business information when they
resigned on Dec. 8, 2006.  It was also in the same day that the
two accepted employment at Mizuho.

                         About Calyon

headquartered in La Defense, France, Calyon --
http://www.calyon.com/--  is a subsidiary of French superbank  
Credit Agricole.  The company was formed in 2004 when Credit
Agricole Indosuez merged with the investment banking division of
Credit Lyonnais, which Credit Agricole acquired in 2003.  Active
in some 60 countries, Calyon offers such services as mergers and
acquisitions advice; equity, debt and derivatives sales and
underwriting; and foreign exchange trading.  The company's
Chevreaux unit provides equity brokerage and research services
in Europe.

                 About Mizuho Financial Group

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

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

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


NOMURA HOLDINGS: Enters Into Consulting Pact with Vietnam's SCIC
----------------------------------------------------------------
Nomura Holdings Inc. and Vietnam's State Capital Investment
Corporation have signed a memorandum of understanding wherein
the Japanese securities group will advice the SCIC regarding the
investment and management of state capital in companies so that
the Vietnamese Government's initiative to let state-owned
enterprises go public can be accelerated, The Saigon Times
reports.

According to The Saigon Times, the MOU was signed on March 13,
2007, by SCIC Deputy General Director Le Song Lai and Nomura
Deputy President Hiroshi Toda.

The report also states that under the deal, the SCIC will
provide Nomura Holdings with important information to help the
company build up its investment and business operations in
Vietnam.  Nomura Holdings will help local companies in Vietnam
raise funds in international capital markets when it is
necessary.

The Saigon Times says that this was the seventh deal signed
between SCIC and foreign partners, showing the company's
willingness to build cooperative linkages with international
investors.  These foreign partnerships also strengthens and
develops SCIC's managing enterprises, risk and corporate
operations.  

The report, citing Nomura President and Chief Executive Officer
Nobuyuki Koga, states that the company's focus is on the
consolidation and development of its operations in Asia.  The
company is expanding in its investment and trading fields,
gaining more opportunities to support local companies and the
economies of their countries.   

                     About Nomura Holdings

Nomura Holdings, Inc. -- http://www.nomura.com/-- is a     
securities and investment banking firm in Japan and have
worldwide operations in more than 20 countries and regions
including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries.  Nomura
operates in five business segments: Domestic Retail, which
includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading
and asset finance businesses in and outside Japan; Global
Investment Banking, which includes mergers and acquisitions
advisory and corporate financing businesses in and outside
Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which
includes development and management of investment trusts, and
investment advisory services.

On Apr. 13, 2006, Fitch Ratings gave Nomura Holdings a 'C'
individual rating.


NORTHWEST AIRLINES: Court Extends Exclusive Periods to June 29
--------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York extended Northwest Airlines Corp. and its debtor-
affilaites' exclusive periods to file a chapter 11 plan and
solicit acceptances of that plan to Jun. 29, 2007, Bloomberg
News reports.

The Ad Hoc Committee of Equity Security Holders tried to block
the request, arguing, among other things, that the Debtors do
not deserve another extension of exclusivity.  The Ad Hoc
Committee complained that giving the Debtors a further extension
would significantly prejudice the shareholders, as the Ad Hoc
Committee and other parties-in-interest won't have a meaningful
opportunity to propose a plan that can top the Debtors'
valuation.

Lorenzo Marinuzzi, Esq., at Otterbourg, Steindler, Houston &
Rosen, P.C., in New York, counsel for the Official Committee of
Unsecured Creditors, retorted that the Ad Hoc Committee's
objection is another ill-advised attempt to impede the progress
of the Debtors' reorganization to pursue its fanciful and
unsubstantiated theories of value.

Mr. Marinuzzi told Judge Gropper that the Debtors' request for
extension is not an attempt by the Debtors to prolong the
reorganization for "impermissible purposes."  Rather, the
Debtors seek additional time to conduct all the necessary steps
to continue on the path to confirmation of the Plan and emerge
within the timeframe approved by the Court.

The Debtors, for their part, argued that each of the allegations
raised by the Ad Hoc Committee in its objection address the
adequacy of the Debtors' disclosure statement or to confirmation
of their Proposed Plan, rather than to the "cause" for the
requested extension of exclusivity.  The Debtors further noted
that the Ad Hoc Committee never claimed that it will file an
alternative plan, or provide any explanation of what termination
of exclusivity would achieve.

For these reasons, the Ad Hoc Committee failed to establish any
"cause" to terminate exclusivity, the Debtors said.

AS reported in the Troubled Company Reporter on Mar. 8, 2007,
the Debtors relates that they are on a clear path to
confirmation and that the requested extension of the Exclusive
Period will provide them sufficient time to:

    (a) obtain approval of the Disclosure Statement; and

    (b) mail out the solicitation packages and ballots to all
        parties entitled to vote on the Plan, and give them time
        to consider the materials provided in the solicitation
        packages and return their ballots by the voting  
        deadline.

Moreover, in connection with the proposed Plan, and concurrently
with the solicitation of votes, creditors will also have the
opportunity to exercise subscription rights as described in the
Plan, said Bruce R. Zirinsky, Esq., at Cadwalader, Wickersham &
Taft LLP.

These are all necessary steps for the Debtors to continue on the
path to Plan confirmation and emerge within the timeframe
approved by the Court in a scheduling order, Mr. Zirinsky
explained.

                   About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/--  
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents.  The Company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930).  Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts.  The Official Committee of
Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld
LLP as its bankruptcy counsel in the Debtors' chapter 11 cases.  
When the Debtors filed for protection from their creditors, they
listed US$14.4 billion in total assets and US$17.9 billion in
total debts.  On Feb. 15, 2007, the Debtors filed an Amended
Plan & Disclosure Statement.  The hearing to consider the
adequacy of the Disclosure Statement has been scheduled for
March 26, 2007.  (Northwest Airlines Bankruptcy News, Issue No.
59; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)   


SAPPORO HOLDINGS: Backs Plan to Implement Defense Measures
----------------------------------------------------------
Sapporo Holdings has reportedly repeated its belief that its
plan for fresh takeover defense measures will not erode
shareholder value, Just-Drinks reports.

The report says that Sapporo Holdings plans to communicate to
its nearly 35,000 shareholders to explain its reasons of
adopting takeover defense measures.  The company would also urge
its investors to support its "poison pill" proposal when it
would be discussed for approval at its March 29 shareholders'
meeting.

The report recounts that Steel Partners Japan Strategic Fund has
urged shareholders to reject Sapporo's proposal, which require
any company hoping to secure at least 20% of the voting rights
in Sapporo to submit a report detailing the purpose of its bid.

As reported in the Troubled Company Reporter - Asia Pacific on
Mar. 19, 2007, Steel Partners announced that Institutional
Shareholder Services Inc., the world's leading independent proxy
advisory firm, has recommended that shareholders vote against
the proposal by Sapporo Holdings to adopt a new version of its
"advance warning system" at its annual general meeting of
shareholders on Mar. 29, 2007.
    
The TCR-AP said that the ISS recommendation comes one day after
Glass Lewis, another leading independent proxy advisory firm,
also issued a report recommending that shareholders vote against
the AWS proposal.  On March 12, the Fund commenced a campaign
urging shareholders to vote against the AWS proposal.

Steel Partners, last month, proposed a plan to raise its stake
in Sapporo from 17.52% to 66.6%.  Sapporo, on the other hand,
pledged to implement particular measures to ascertain that any
offer will contribute to improving the company's value.

                    About Steel Partners Japan

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

                    About Sapporo Holdings

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

                          *     *     *

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

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

   -- Senior unsecured debt 'BB';

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

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


US AIRWAYS: Employees Share US$58.7 Million Earnings in 2006
------------------------------------------------------------
More than 35,000 US Airways Group Inc. employees, furloughees
and retirees in the US, Canada, Europe, the Caribbean and Latin
America are sharing in the airline's 2006 profits when checks
totaling US$58.7 million were distributed on Mar. 14, 2007.

"We are simply delighted to distribute profit sharing checks to
our outstanding employees, especially given only two years ago,
US Airways was nearing liquidation and America West's own future
was uncertain.  To say we've come a long way in a short amount
of time is a vast understatement and I couldn't be more proud or
privileged to be part of this team," Chairman and CEO Doug
Parker said in a message thanking employees for "continued
dedication to building a winning airline."

US Airways' profit sharing program sets aside 10% of the
airline's annual pre-tax profits.  The airline posted a 2006 net
profit of $507 million as disclosed earlier this year.  
Employees of US Airways and its wholly owned US Airways Express
carriers participate in the program.

Around the US Airways system, employees will celebrate at
barbeques, ice cream socials, buffets and more to commemorate a
profitable year.  2006 was the first full year for US Airways as
a combined carrier, following its merger with America West
Airlines in 2005.  Last year's milestones include:

   * all customer facing areas at all 38 overlap cities now
     combined;

   * strong Philadelphia baggage improvement: 95% of local bags
     arriving at baggage claim within 19 minutes;

   * full year profit of US$507 million;

   * Embraer 190 added to mainline fleet;

   * six US$50 payouts for on-time performance; ranked second
     (against major airlines) for 2006 as a whole;

   * launched the new http://www.usairways.com/and
     100 pilots and 200 flight attendants recalled.

                      About US Airways

Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.

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

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

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

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

                          *     *     *

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


US AIRWAYS: Fitch Upgrades Issuer Default Rating to B-
------------------------------------------------------
Fitch Ratings has upgraded its ratings on US Airways Group, Inc.
(NYSE: LCC) as:

    -- Issuer Default Rating to 'B-' from 'CCC';
    -- Secured term loan rating to 'BB-/RR1' from 'B/RR1';
    -- Senior unsecured rating to 'CCC/RR6' from 'CC/RR6'.

Fitch's ratings apply to approximately US$1.9 billion in
outstanding debt.  In addition, Fitch has assigned a rating of
'BB-/RR1' to US Airways' new $1.6 billion secured term loan
facility that is currently in syndication.  The Rating Outlook
is Positive.


The upgrade in US Airways' ratings reflects the substantial
improvement in the airline's credit profile that has occurred
since the carrier exited Chapter 11 protection and merged with
America West Holdings Corp. in September 2005.  In addition,
with the withdrawal of its acquisition offer for Delta Air
Lines, Inc. in late January, US Airways can focus on the few
remaining tasks necessary to complete the full integration of
the US Airways, Inc. and America West Airlines, Inc. operating
units.  Fitch does not expect US Airways to seek another
acquisition in the near term.

Over the past year, US Airways has posted relatively strong
financial results, which have translated into credit metrics
that place it among the better-performing hub-and-spoke
airlines.  Lease-adjusted leverage of 6 times (x) and EBITDA
interest coverage of 3x are the strongest of the four solvent
legacy carriers, while its 2006 EBITDAR margin of 7.8% is second
only to AMR Corp.  Unrestricted cash and equivalents, at 20% of
2006 revenue, has increased by 500 basis points over the past
year and is in the same range as AMR, UAL Corp. and Continental
Airlines, Inc.  US Airways' financial performance relative to
its peers has been driven primarily by cost savings that
resulted from its Chapter 11 reorganization combined with
revenue and expense synergies that have been realized through
the merger with America West.

The new term loan, which will mature in 2014, is backed by hard
assets, such as aircraft, spare parts and ground service
equipment; soft assets, including route authorities, slots and
gates; $750 million in cash held in control accounts; and
certain accounts receivable assets.  The 'BB-/RR1' rating
reflects the loan's substantial collateral coverage and very
strong recovery prospects in a default scenario.  Proceeds from
the term loan will be primarily used to refinance US Airways'
existing $1.25 billion term loan facility, as well as pre-pay
other outstanding secured and unsecured debt.  In addition to
more favorable pricing, the refinancing moves the company's
significant debt maturities three years further into the future,
which will improve liquidity through 2013 and provide the
airline with increased financial flexibility over a longer time
horizon.  The refinancing also removes several aircraft from
collateral pools that are currently securing some of the
existing debt.  Releasing the aircraft increases US Airways'
unencumbered asset base, which could serve as collateral to
secure future financings in the event of another industry
downturn.

US Airways' strengthened liquidity position and a lack of
significant debt maturities over the next several years have
significantly reduced the probability of a near-term cash
crisis. Furthermore, unlike AMR, Continental, Delta and
Northwest Airlines Corp., US Airways has no significant defined
benefit (DB) pension plans in place.  Although the Pension
Protection Act has significantly reduced cash funding
requirements for those airlines that maintain DB plans, US
Airways' lack of DB plans could provide the carrier with a
competitive advantage over the longer term, particularly in the
next industry down cycle.

Looking ahead, industry demand fundamentals are expected to
remain fairly strong during 2007, while domestic capacity growth
will continue to be limited.  The pace of yield growth will
likely slow, however, as year-over-year comparables become more
difficult. Operating expenses will still be significantly
affected by the price of jet fuel, although US Airways, along
with most U.S. carriers, has taken advantage of dips in oil
prices by increasing its fuel hedging position.  As of January
30, US Airways had 43% of its estimated full-year fuel needs
hedged using costless collars, with a jet fuel equivalent put
price of US$1.97 and a call price of US$2.17.  Operating
expenses could see some pressure from increased wages, as the
airline continues to seek integrated labor agreements with its
pilots, flight attendants, mechanics and fleet service workers.  
The airline has stressed, however, that the status of its labor
agreements is immaterial to its ability to combine the
operations of US Airways, Inc. and AWA under a single Federal
Aviation Administration operating certificate, and it still
plans to complete the full operational integration of the two
airlines by mid-2007.

                      About US Airways

Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.

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

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

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

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

                          *     *     *

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


USINAS SIDERURGICAS: Investing US$4.7B to Hike Steel Production
---------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA is investing up to
US$4.7 billion to advance its annual steel production, which
includes a 2.2 million metric ton expansion at its Ipatinga
steelworks, the Associated Press reports.

In a regulatory filing, the company stated that its board
granted the Ipatinga expansion in Central Brazil for US$2
billion.  The construction would start immediately with an
expected completion date in 2010 or 2011, AP says citing
Usiminas as saying.

AP relates that the company would also build a 750,000 metric-
ton-a-year coke plant at Ipatinga to supply the steelworks.  
Japan Bank for International Cooperation has provided a
US$240 million loan to build the coke plant.

According to the report, the company expressed interest for a
separate 3 million-metric ton expansion project amounted to
US$2.7 billion but noted that its Cubatao steelworks expansion
in the southeastern Brazilian state of Sao Paulo was the first
option.

Usiminas shares were up 2.5% on Sao Paulo's Bovespa exchange
after the announcement, AP says.

                   About Usinas Siderurgicas

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.  The company also sells in China and Japan.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 3, 2007, that Standard & Poor's Ratings Services revised
its outlook on Brazil-based steelmaker Usinas Siderurgicas de
Minas Gerais S.A., aka Usiminas, to positive from stable.  
Standard & Poor's also said that it affirmed its 'BB+' local and
foreign currency corporate credit ratings on Usiminas.


USINAS SIDERURGICAS: Will Do Well in 2007, Says Unibanco
--------------------------------------------------------
Brazil's brokerage Unibanco Corretora said in a report that it
is upbeat on Usinas Siderurgicas de Minas Gerais' outlook this
year due to positive demand for the latter's products.

According to Unibanco Corretora's report, a 5% price boost in
heavy plates within Brazil will cause a strong impact in 2007.  
Brazil's growth acceleration plan will increase the need for
steel products.

International prices of flat steel are increasing successively,
Business News Americas relates, citing Unibanco Corretora.

                   About Usinas Siderurgicas

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.  The company also sells in China and Japan.

The Troubled Company Reporter - Asia Pacific reported on Jan. 3,
2007, that Standard & Poor's Ratings Services revised its
outlook on Brazil-based steelmaker Usinas Siderurgicas de Minas
Gerais S.A., aka Usiminas, to positive from stable.  Standard &
Poor's also said that it affirmed its 'BB+' local and foreign
currency corporate credit ratings on Usiminas.


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

KOREA EXCHANGE BANK: Lone Star Rejects Audit Results
----------------------------------------------------
Lone Star Funds Chairman John Grayken rejected accusations by
South Korea's Board of Audit and Inspection that a gauge of the
financial strength of Korea Exchange Bank was manipulated to
pave the way for its sale to Lone Star, Kim Kyoungwha writes for
Bloomberg News.

As reported in the Troubled Company Reporter - Asia Pacific on
March 15, 2007, the BAI urged the Financial Supervisory
Commission to correct the sale of KEB by taking "proper
measures," alleging that the FSC "illegally and improperly"
approved Lone Star's takeover bid.

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, the TCR-AP report
cited Yonhap News.

The BAI has stated that "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."

However, Mr. Grayken said that the BAI's statement is
"impossible to accept."

BAI contended that the FSC overstated KEB'S financial
difficulties and the nation's economic malaise to justify KEB'S
sale of a 51% stake to Lone Star, Blooomberg relates.

Even if the report's allegation that the capital adequacy ratio
was lowered as a result of a "conspiracy" was true, the
regulator's response should have been to order Lone Star to trim
its stake to below 10%, Mr. Grayken said, noting that "this is
exactly what Lone Star has stated it intends to do and has been
prevented from doing because of the ongoing controversy."

Mr. Grayken, however, welcomed the BAI's conclusion that Lone
Star did nothing illegal in its acquisition of KEB, Bloomberg
notes.

Bloomberg recounts that on March 12, UBS AG downgraded KEB,
citing a lack of clarity on Lone Star's legal issues.  The
recommendation was lowered to 'Neutral 2' from 'Buy 2,'
Bloomberg notes.

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.


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

MALAYSIA AIRLINES: Airbus A350 Orders May Not Push Through
----------------------------------------------------------
Malaysia Airlines is likely to cancel its orders for six A380
jumbo passenger jets from Airbus as the new delivery dates of
the aircrafts will no longer fit into the carrier's plan,
Business Times reports.

According to the report, although no specific date was given on
the new delivery schedule, it is expected that the carrier will
get its first A380 by late 2009.  Business Times speculated that
date based on an earlier understanding that it will get the
aircraft a year after Singapore Airlines, which is scheduled to
take delivery of its first unit in October next year, the report
says.

However, recent developments in Airbus, whose European workers
went on strike over recent job cuts, could push the delivery
dates further than scheduled.  Sources told Business Times that
the cancellation of the orders for the aircraft is one of the
options.

"Everything is fluid at the moment.  Until today, Penerbangan
Malaysia Bhd and MAS are still discussing the issue of
compensation for the delays and the new delivery schedules with
Airbus," said a source.

"These planes are really expensive.  So there is no point
wasting taxpayers' money if it no longer fits into MAS' overall
plans," the source added.

Business Times recounts that PMB, the carrier's parent, ordered
in 2003 six A380s at a price of MYR1.6 billion.  The parent
plans to lease the aircrafts to Malaysia Airlines.

Meanwhile, Singapore-based aviation analyst Shukor Yusof, from
Standard & Poor's Equity Research, told Business Times that to
cancel the A380 orders will benefit PMB and MAS more in the long
run.

However, he said that if MAS decides to cancel the orders, they
should do it now before Airbus starts producing the planes.  The
airline will be paying a fine if they cancel the order when the
production has commenced, Mr. Yusof said.

                          *     *     *

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: Mulls Entry Into Other Aircraft Industry
-----------------------------------------------------------
Malaysia Airlines is planning to move into aircraft repairs and
other businesses to help grow its profit, Reuters reports,
citing the airline's managing director, Idris Jala.

Mr. Jala also said that its new regional airline, Firefly, would
form a key part of its profit strategy through its no-frills
carrier and minimal costs and staff.

Speaking to Reuters, Mr. Jala said Firefly and its other new
businesses, including maintenance, repairs and overhaul, would
be the future for the carrier as it sold off most of its
properties and other non-core assets.

"We don't have any more big assets," he said.  The state-
controlled firm recently sold off its Four Seasons Hotel in the
Malaysian island of Langkawi to a Saudi prince and its training
centre to a Malaysian state pension fund.

                          *     *     *

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: In "Advanced" Talks w/ VW over Partnership Deal
----------------------------------------------------------------
Talks on a partnership deal between Volkswagen AG and Proton
Holdings are at a "fairly advanced" stage, Bloomberg News
reports, citing an interview with the European company's
international sales manager, Kevin Rose.

"Both parties clearly know what they would want from such an
agreement," Mr. Rose told Bloomberg, adding that Volkswagen will
"work within" the Malaysian government's March 31 deadline.

As reported by the Troubled Company Reporter - Asia Pacific on
March 7, 2007, talks between the two companies have hit a bumpy
patch in January last year after disagreement on issues,
including control of the company.

The Malaysian Government has been looking for an alliance since
Mitsubishi Motors Corp. ended their partnership in 2004,
Bloomberg says.  PSA Peugeot Citroen recently ended its talks
with Proton while General Motors Corp. said discussions were
still ongoing.

Bloomberg notes that Volkswagen is actively seeking a platform
to expand its operations in Southeast Asia.  Volkswagen has been
boasting its capacity in China and plans to expand its Indian
operations to bolster sales of its Passat and Jetta models.

Chong Lee Len, an analyst at Hwang-DBS Vickers Research Sdn,
told Bloomberg that Volkswagen may want a 51% of Proton's
manufacturing business.  Ms. Chong said that control of the unit
may cost Volkswagen about MYR900 million.

Reuters tried to reach officials of Proton, but could not be
immediately reached for comment.

                          *     *     *

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.


PROTON HOLDINGS: Enters Indonesian Market; To Open 10 Centers
-------------------------------------------------------------
National car-maker Proton Holdings Bhd officially entered the
Indonesian market on March 16, 2007, and is planning to open up
to 10 sales and service centers this month, Business Times
reports.

There are now three outlets opened in Slipi, Jalan Warung Buncit
and Pokok Indah, all in Jakarta, the Times relates.  Other
outlets will be located in Samarang, Surabaya, Bali, Makasar,
Medan, Jogjakarta and Bandung.

According to PT Proton Edar Indonesia directors, Norhisham Kamal
and Dwi Sasetia, the centers will aid in facilitating the
company's target of capturing a 1.7% share of all vehicles sold
in the republic in five years, the report adds.  

Total cost of setting up the outlets could reach US$8 million,
the directors told the Times.

Proton would directly operate two outlets including the one in
Slipi, while the remaining eight will be under independent
dealers.

Meanwhile, the report notes that Savvy and Gen. 2 are the first
Proton models being sold in Indonesia as passenger cars, while
the Wira model has been on the road as a taxi since last August.

"We have to change the perception that Proton is only a taxi
manufacturer. We need to have strong promotion.  We do hope that
with the outlets in the main cities, Indonesians will accept
Proton's other models too," Mr. Dwi said.

                          *     *     *

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.


STAR CRUISES: Superstar Libra for Seasonal Deployment in Taiwan
---------------------------------------------------------------
After two years, Star Cruises will return to Taiwan by
repositioning SuperStar Libra to Keelung, for a seasonal
deployment between June and October 2007.

SuperStar Libra ends her current season in India on May 25,
2007. Thereafter, the ship will undergo renovations to
especially cater to the Taiwan market in areas like dining with
the addition of an International buffet and a Chinese family
style restaurant.

The vessel is scheduled to arrive in Keelung on June 29, 2007,
where it will commence offering a combination of 2 and 3-night
cruises to destinations in Taiwan and Japan.  The 2-night
cruises will call at the new and popular destination of Penghu,
located off the southeast coast of Taiwan and Ishigaki in Japan
while the three night itineraries will call at Ishigaki and
Naha, Okinawa in Japan.

The new season will see SuperStar Libra making her maiden call
to Penghu on July 4.

Cruisers will continue to enjoy an exciting array of onboard
facilities and activities including international performances,
themed parties, food and beverage specials, fitness center, golf
driving range, swimming pool, twin hot tubs, sports deck and a
never-ending string of other fun activities.

"The repositioning of SuperStar Libra to Taiwan is part of the
company's seasonal deployment strategy to mobilize Star Cruises'
fleet and thus bringing the Star Cruises' experience of its
variety of exciting destinations and ports-of-call to and from
various parts and countries of the region", said Mr. Chong Chee
Tut, Chief Operating Officer of Star Cruises.

"SuperStar Libra's stint in Taiwan will provide an opportunity
for the Taiwan market to once again experience cruising as an
exciting holiday option at sea featuring a combination of
onboard dining, entertainment and recreation options while
sailing to exciting destinations", said Ms. Jean Teo, Senior
Vice President, Sales & Marketing of Star Cruises. "The ship
will undergo preparations to cater to the needs and demands of
cruisers from this region in line with Star Cruises' philosophy
of always offering the best cruise experience possible to all
its cruisers", Ms. Teo added.

                          *     *     *

Star Cruises Limited -- http://www.starcruises.com/-- is a  
Company publicly listed in Hong Kong and is a core member of the
Genting Group and 36.1% owned by Resorts World, which is, in
turn, 57.7% owned by Genting Berhad.  Star Cruises operates 22
ships with 35,000 lower berths under five main brands:  Star
Cruises and Cruise Ferries, which service Asia Pacific, and
three brands under NCL.  The company also has operations in
Malaysia.

Moody's Investors Service has placed the B1 corporate family
rating of Star Cruises Limited on review for possible downgrade
on Jan. 25, 2007.

The review has been prompted by SCL's announcement that it and
Genting International Plc, a subsidiary of Genting Berhad, will
acquire a 75% interest in Macau Land Investment Corporation,
which will develop a hotel and casino project on the foreshore
of downtown Macau.

In addition, on December 11, 2006, Standard & Poor's Ratings
Services placed its BB- long-term corporate credit ratings on
Malaysia-based cruise operator Star Cruises Ltd. on CreditWatch
with negative implications.

S&P also placed its BB- long-term corporate credit ratings on
U.S. based cruise operator NCL Corp. Ltd. (NCL) and its B
foreign currency ratings on NCL's senior unsecured debt of
US$250 million due 2014 on CreditWatch with negative
implications.


SUNWAY INFRASTRUCTURE: Hits New Amended PN17 Listing Criteria
-------------------------------------------------------------
Sunway Infrastructure Bhd triggered another listing criteria
under the Amended PN17 listing requirement of the Bursa Malaysia
Securities Bhd.

According to the company, its MYR7.173-million shareholders'
equity on a consolidated basis based on the unaudited results
for the quarter ended Dec. 31, 2006, is less than 25% of its
issued and paid-up capital MYR90 million and such shareholders'
equity is less than the minimum issued and paid-up capital as
required under Paragraph 8.16A(1) of the Listing Requirements --
MYR60 million.

Sunway has been previously tagged as a PN17 company after its
auditors expressed a modified opinion with emphasis on its going
concern pertaining to the latest audited financial statements
for the period ended June 30, 2006, and the unaudited
shareholders' equity of approximately MYR26.702 million based on
its quarterly results for the period ended Sept. 30, 2006, being
less than 50% of its issued and paid up capital of MYR90
million.

                          *     *     *

Headquartered in Petaling Jaya, Malaysia, Sunway Infrastructure
Berhad -- http://www.sunway.com.my/-- is an investment holding  
company in Malaysia.  The Company's wholly owned subsidiary,
Sistem Lingkaran-Lebuhraya Kajang Sdn. Bhd. (SILK), is
responsible for the construction of the Kajang Traffic Dispersal
Ring Road.  Silk's activities are the upgrading and widening of
existing roads; the design and construction of a new alignment,
and the operation of the Kajang Traffic Dispersal Ring Road,
including toll operations and maintenance.  Through SILK, the
Company owned Salient Million Sdn. Bhd. Salient Million Sdn. Bhd
mainly focuses on undertaking housing development for residents
whose dwellings are located on the land, on which the Kajang
Traffic Dispersal Ring Road is constructed or who are affected
by the construction of the Kajang Traffic Dispersal ring road.  
On November 22, 2005, SILK disposed of Salient Million Sdn. Bhd.

The company is an affected listed issuer pursuant to the Amended
PN17 since its auditors have expressed a modified opinion with
emphasis on the company's going concern in the company's audited
financial statements for the year ended June 30, 2006, and since
the unaudited shareholders' equity of approximately MYR26.702
million based on its quarterly results for the period ended
September 30, 2006, is less than 50% of its issued and paid up
capital of MYR90 million.

In addition, the Troubled Company Reporter - Asia Pacific
reported on March 20, 2007, that its shareholders' equity on a
consolidated basis based on the unaudited results for the
quarter ended Dec. 31, 2006 of MYR7.173 million, is less than
25% of the issued and paid-up capital of the Company of MYR90
million and such shareholders' equity is less than the minimum
issued and paid-up capital as required under Paragraph 8.16A(1)
of the Listing Requirements of RM60 million, triggering another
listing criteria under Amended PN17 listing requirements.


SUREMAX GROUP: AIBB Demands MYR3.07 Million on Judgment Payment
---------------------------------------------------------------
The Alliance Investment Banking Bhd served a statutory notice
demanding that Suremax Group Bhd pay MYR3,073,146.92, pursuant
to a Kuala Lumpur High Court's judgment dated May 30, 2006.

Suremax received the copy of the notice on March 5, the same
date the payment was due, the company said in a disclosure with
the Bursa Malaysia Securities Bhd.  The debt will continue to
accrue interest until the date of the final payment.

In the event that Suremax fails to pay its debt within three
weeks from the service of the Notice, the company will be deemed
in default and appropriate action will be taken for wind-up, the
notice states.

The company will seek legal advice from its solicitors on the
next course of action, Suremax told the bourse.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported on May 16,
2006, that based on the Audited Financial Statements of Suremax
Group for the year ended August 31, 2005, the company's auditors
have expressed a modified opinion with emphasis on Suremax's
ability to continue as a going concern.  Furthermore, based on
the company's six-month period accounts to February 28, 2006,
Suremax's shareholders' equity on a consolidated basis is less
than 50% of its issued and paid-up capital.  

As such, Suremax is an affected listed issuer of the Bursa
Malaysia Securities Berhad's Amended Practice Note 17 category,
and is therefore required to implement a plan to regularize its
financial condition.


SUREMAX GROUP: Unit Agrees to Sell Land Asset for MYR175 Million
----------------------------------------------------------------
Suremax Land Sdn Bhd, a wholly owned subsidiary of Suremax Group
Bhd, has entered into a sale purchase agreement with Peakda Sdn
Bhd for the disposal of vacant lands for MYR175 million.

The vacant lands are freehold and located in the Mukim of
Rantau, District of Seremban, State of Negeri Sembilan measuring
approximately 187.4 acres in area.  

MN Associates Sdn Bhd valuated the market value of the land at
MYR50,600,000.00

                    Salient Terms of the Agreement

The salient terms and conditions of the SPA includes:

    i The total deposit sum of MYR7,500,000.00 will be paid by
      Peakda to Suremax Land within two months after the
      fulfillment of the necessary requirements needed.

   ii The SPA will be conditional upon the fulfillment of the
      following conditions precedent within three months from
      the date of the SPA:

      * SLSB's Board of Directors' and Shareholders' Resolution
        to sell the vacant lands to PEAKDA;

      * PEAKDA's Board of Directors' and Shareholders'
        Resolution to purchase the vacant lands;

      * PEAKDA will secure and obtain a loan from any financial
        institution for financing and completing the purchase of
        the vacant lands; and

      * PEAKDA obtaining the approval of the Foreign Investment
        Committee and the Securities Commission to the purchase
        of the vacant lands.

Suremax expects to benefit in respect of debts settlement and
raising of capital for other projects with the disposal.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported on May 16,
2006, that based on the Audited Financial Statements of Suremax
Group for the year ended August 31, 2005, the company's auditors
have expressed a modified opinion with emphasis on Suremax's
ability to continue as a going concern.  Furthermore, based on
the company's six-month period accounts to February 28, 2006,
Suremax's shareholders' equity on a consolidated basis is less
than 50% of its issued and paid-up capital.  

As such, Suremax is an affected listed issuer of the Bursa
Malaysia Securities Berhad's Amended Practice Note 17 category,
and is therefore required to implement a plan to regularize its
financial condition.


TALAM CORP: Provisional Liquidator Named on Unit's Wind-Up
----------------------------------------------------------
Talam Corp Bhd disclosed with the Bursa Malaysia Securities that
a provisional liquidator was appointed on the wind-up
proceedings against its 60% owned unit, Noble Rights Sdn Bhd.

The Assistant Official Reciever in the Cawangan Wilayah
Persekutuan, Tingkat 7 & 8, Kompleks Pertama, Jalan Tuanku Abdul
Rahman, in 50100 Kuala Lumpur will act as the provisional
liquidator.

As reported by the Troubled Company Reporter - Asia Pacific on
March 13, 2007, the Kuala Lumpur High Court has ordered on
Feb. 28, 2007, the wind-up of Noble Rights' operations.

Noble Rights is facing a judgment sum of MYR655,398.08 pursuant
to its wind-up.

                          *     *     *

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

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

In accordance with PN 17, the company is required to submit and
implement a plan to regularize its financial condition.


TAP RESOURCES: Unit's Members Okay Voluntary Liquidation
--------------------------------------------------------
Sumbangan Tiara Sdn Bhd, a subsidiary of Tap Resources Bhd, was
placed under voluntary liquidation after a special resolution
passed by the unit's members on March 15, 2007.

The voluntary liquidation of Sumbangan forms part of the Tap
Resources' restructuring exercise.

Based on Tap Resources' proposals, certain subsidiaries are
facing liquidation as these subsidiaries have either ceased or
wound down their respective businesses.

                         About Sumbangan Tiara

Sumbangan Tiara was incorporated on April 24, 1999, as a private
limited company .  Its authorized share capital is MYR100,000
divided into 100,000 ordinary shares of MYR1.00 each and its
issued and paid-up share capital is MYR20 divided into 20
ordinary shares of MYR1.00 each. The unit is principally an
investment holding company but was inactive since its
incorporation.

                          *     *     *

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

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

With Tap's failure to comply with the requirements, Bursa
Securities will commence a suspension and delisting procedure on
the company's securities.


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

AIR NEW ZEALAND: Pilots to Appeal Holiday Entitlements Decision
---------------------------------------------------------------
The Supreme Court has granted the Air New Zealand pilots union
leave to appeal a decision by the Court of Appeal on whether or
not an employee's entitlement to a public holiday can be
transferred to another agreed day, tvnz.co.nz reports, citing
Newstalk ZB.

According to the report, the decision allows the exchange as
long as it does not restrict the pilots' access to the statutory
11 annual public holiday days.

Under their old agreement, pilots have 11 extra leave days, on
top of their annual holidays, regardless of how many public
holidays they worked, Newstalk ZB recounts.

The report says that the Supreme Court will have to clarify
whether public holidays can be transferred, and how they have to
be identified in employment agreements.

                      About Air New Zealand

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

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

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


AIR NEW ZEALAND: Expands Sales & Mktng. Agreement with Discover
---------------------------------------------------------------
Air New Zealand has expanded its agreement with Discover the
World Marketing to manage its sales and marketing in France.  

Discover started its representation with Air New Zealand in
Greece and Russia in 2005.  Spain and the Scandinavian countries
of Denmark, Finland, Norway, and Sweden followed in 2006.

"Besides having an impact on generating new revenue for us, it
is the ease of outsourcing this function, especially in off-line
destinations with Discover that has been beneficial to both of
us," Gary Kershaw, Air New Zealand's Sales Manager --
Continental Europe said.

               About Discover the World Marketing

Established in 1981, Discover the World Marketing --
http://www.discovertheworld.com/-- has 82 offices in 54  
countries.  Headquartered in Scottsdale, Ariz., Discover is a
travel representation company with annual client revenues
approaching one-half billion dollars.  The company represents
more than 40 major travel corporations.

                      About Air New Zealand

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

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

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


AIR NEW ZEALAND: Season Change Prompts Flight Adjustments
---------------------------------------------------------
Air New Zealand has cut its five daily direct services to Osaka
to two from the end of March as the tourism market enters its
off-season, Radio New Zealand reports.

However, the airline will retain its seven daily services in
Tokyo, with two of these flights coming back through Osaka to
Auckland, Radio NZ notes.

According to Auckland International Airport, Japanese visitors
have fallen 15% to 88,000 over the last year, Radio NZ relates.

Meanwhile, a report from tvnz.co.nz, citing Newstalk ZB, relates
that Air New Zealand is cashing in on the growing number of
people seeking sun and relaxation in the Cook Islands during the
Northern Hemisphere winter.

Air New Zealand will increase its weekly service from Auckland
to Rarotonga and onto Los Angeles from one flight to two flights
a week from Dec. 6, 2007, to March 26, 2008.

The second flight will operate on Thursdays alongside the
existing Saturday service.

The service from Los Angeles to Rarotonga is now currently the
quickest route for passengers traveling from Europe and North
America, Air New Zealand says.

                      About Air New Zealand

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

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

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


DEBT RELIEF: Placed in Liquidation with NZ$1.7 Million in Debts
---------------------------------------------------------------
In November 2006, Debt Relief NZ, which managed money for 147
cash-strapped clients from its offices in Paraparaumu, was
placed in liquidation, with NZ$1.7 million in debts, the New
Zealand Herald reports.

The company offered relief from hounding creditors by
negotiating low repayments with companies like Telecom and
Mercury Energy, the report explains, noting however that Debt
Relief did not have a trust account.

According to the NZ Herald, a series of linked companies were
also put into liquidation.  Thus, it is likely that many small
clients who used Debt Relief to help pay their bills may be even
worse off, Jonathan Marshall and Chris Daniels write for the
paper.

PricewaterhouseCoopers liquidator John Fisk has filed a
complaint with the Serious Fraud Office to investigate the
company's collapse.

"We put together the evidence that relates to our concerns,
report it through to them and then they tell us whether it'll be
taken on for investigation.  In this case they've said they're
going to take it on," Mr. Fisk said, noting that the claims
relate to "misappropriation of funds and other concerns".

Mr. Fisk was appointed interim liquidator for three companies
connected with Debt Relief:

   1) Old Detroit Motors,
   2) First Plus Finance Limited, and
   3) First Plus Ltd.

PricewaterhouseCoopers was also appointed receiver to 0800 New
Phone Limited and Nevada Management Ltd.

                      The Road to Trouble

The NZ Herald relates that according to Debt Relief's sole
director, Keith Ross Mackie, the company charged customers NZ$25
per week to receive all of their income.  It would then pay
bills on their behalf.

Mr. Mackie revealed that the company had just NZ$700 in the bank
when the liquidators came in.  The company continued paying
customers' debts even when they stopped handing over wages and
benefits to Debt Relief, Mr. Mackie explained.

Mr. Mackie also insisted that he "was more an admin manager than
a director."   A woman named Belinda was behind the collapsed
business, Mr. Mackie claimed.  However, he was unsure of
Belinda's surname or phone number, the NZ Herald notes.

Mr. Mackie further denied being the owner of Old Detroit Motors,
insisting that he was the "admin manager."  However, company
records he is registered as the sole shareholder and director,
the paper relates.

According to Mr. Fisk, Old Detroit Motors was "providing finance
to people and leasing vehicles to people who couldn't get
vehicles any other way," NZ Herald says.

           Returns to Debt Relief Creditors Unlikely

Mr. Fisk, citing the initial liquidation documents for Debt
Relief, said that it is "unlikely there will be a return to
unsecured creditors, and if so, it is not anticipated to exceed
20 cents in the dollar."

The Federation of Family Budgeting Services, which helps 30,000
families -- and of which Debt Relief is not a member -- welcomed
further investigation into the matter, the NZ Herald says.

The paper notes that the head of the Federation, Raewyn Fox,
said that Debt Relief "was more a finance company than a
budgeting service."

The Commerce Commission is not actively investigating Debt
Relief, spokeswoman Kate Camp said, according to NZ Herald.

Accountancy firm KPMG's financial services deputy chairman
Godfrey Boyce said in the report that "the key element" in the
failures of the three companies was the credit processes used to
originate the lending and ultimately collect the debt, the NZ
Herald relates.


GENESIS RESEARCH: To Hold Annual Meeting on May 25
--------------------------------------------------
Genesis Research and Development Corporation Ltd advises that
its 2007 Annual Meeting will be held on May 25, 2007, at 2:00
p.m., at the Ellerslie Event Centre, 80-100 Ascot Ave, in
Ellerslie, Auckland.

Pursuant to NZX Listing Rule and the company's constitution, the
period for director nominations will close on March 30, 2007.

Parnell, New Zealand-based Genesis Research & Development Corp.
-- http://www.genesis.co.nz/-- is a discovery-based  
biotechnology company.  The company uses its ribonucleic acid
interference (RNA i) technology to develop therapeutics for
allergic diseases, especially asthma and atopic dermatitis.  The
company's subsidiaries include AgriGenesis BioSciences Limited,
AgriGenesis Limited, ArborGen, LLC, BioStore NZ Limited and
Genesis Employee Fund Limited.  The research in the fields of
agriculture, horticulture and forestry is carried out in
AgriGenesis BioSciences Limited.

The group recorded a net deficit after taxation of NZ$7,134,000
and NZ$13,695,000, as of December 31, 2005, and 2004,
respectively.

The parent company recorded a net deficit after taxation of
NZ$5,937,000 and NZ$6,758,000, as of December 31, 2005, and
2004, respectively.


GLASS EARTH: Changes Financial Year-End to December 31
------------------------------------------------------
In its Financial Report filed with the New Zealand Stock
Exchange, Glass Earth Limited indicated that it has changed its
financial year-end from May 31 to December 31.

Glass Earth relates that on July 31, 2006, St. Andrew Goldfields
Limited increased its interest in Glass Earth to 48.3%.  In
October 2006, St Andrew subscribed for 48.3% of the
NZ$10 million (approximately $7.5 million) financing of Glass
Earth to maintain its equity interest in the company.

On Nov. 29, 2006, shareholders approved an increased slate of
directors for Glass Earth that included two individuals
nominated by St. Andrew.  In December 2006, St. Andrews
increased its interest in the company further, to 50.2%.

With the emergence of this controlling shareholder, and the
accounting requirement for St. Andrew to include the
consolidated financial results of Glass Earth within those of
its own company, it would be more cost efficient and in the best
interest of shareholders, for both companies to have the same
financial year end.

Accordingly, Glass Earth implemented this change by having a
transition year of 7-months, with the last day of the transition
year being Dec. 31, 2006 (with comparative figures for the year
ended May 31, 2006).

                      About Glass Earth

Glass Earth Ltd -- http://www.glassearthlimited.com/-- and its  
subsidiaries principal activity are the exploration for and
mining of gold deposits in New Zealand.  Glass Earth has
established a large portfolio of gold prospecting and
exploration permits in New Zealand, including advanced gold
prospects in the Hauraki-Waihi area; advanced and greenfields
gold prospects at the Mamaku-Muirs Reef area between Rotorua and
Tauranga; Greenfield gold prospects in the Central Volcanic
Region between Rotorua and Taupo, and advanced and greenfields
gold prospects in the Otago mesothermal gold fields, including
priority over a 20,550km2 prospecting permit area which it
believes is prospective for Macraesstyle gold mineralisation.  
All Glass Earth's business operations are owned and managed by
its New Zealand subsidiaries Glass Earth (New Zealand) Limited
and HPD New Zealand Limited.  As of December 27, 2006, St Andrew
Goldfields Ltd. held approximately 50.2% interest in the
company.

                      Going Concern Doubt

The company is in the development stage, and has not earned
revenues to date.  For the nine-month period ended Nov. 30,
2006, the company had a net loss of CDN$629,000 and accumulated
deficit of CDN$2,579,000.  The company's ability to meet its
obligations and continue as a going concern, according to its
auditors, is dependent upon its ability to obtain additional
financing, the discovery, development or sale of mining reserves
and achievement of profitable operations.


GLASS EARTH: Says CDN$6.9 Million Cash Sufficient Until Mid-2008
----------------------------------------------------------------
Glass Earth Limited has filed its operating results and
financial condition for the seven months ended Dec. 31, 2006.

The company noted that the audited consolidated financial
statements have been prepared in accordance with accounting
principles generally accepted in Canada and are expressed in
Canadian dollars, except where otherwise indicated.

As previously noted by the Troubled Company Reporter - Asia
Pacific, the company has changed its financial year-end from
May 31 to December 31.  The change has been implemented by
having a transition period of 7 months with the last day of the
transition period being Dec. 31, 2006.

At Dec. 31, 2006, the company had net working capital of
CDN$6,912,000 (May 31, 2006: CDN$1,127,000), including cash and
equivalents of CDN$7,316,000 (May 31, 2006: CDN$1,403,000).

Glass Earth was incorporated under the Business Corporations Act
(British Columbia) on March 23, 1989, under the name "362293
B.C. Ltd.".  On Aug. 30, 1989, the company changed its name to
BC Report Magazine Ltd., and on March 30, 2005, to Glass Earth
Limited concurrently with the completion of a Reverse Takeover
of the company by Glass Earth (New Zealand) Limited -- GENZL.

As a result, the consolidated financial statements for the
periods ended Dec. 31, 2006, May 31, 2006, and May 31, 2005,
reflect:

   * the assets, liabilities, and results of operations of
     GENZL, the legal subsidiary, prior to the reverse takeover;
     and

   * the consolidated assets, liabilities and results of
     operations of the company and GENZL subsequent to the
     reverse takeover.

The consolidated financial statements are issued under the name
of the company, but are deemed to be a continuation of GENZL.

Glass Earth's General and Administrative expenditures are
expected to be approximately CDN$700,000 for fiscal 2007.  The
company's cash of CDN$6.9 million as at Dec. 31, 2006, is
considered sufficient to carry the company through into mid
2008.

                      About Glass Earth

Glass Earth Ltd -- http://www.glassearthlimited.com/-- and its  
subsidiaries principal activity are the exploration for and
mining of gold deposits in New Zealand.  Glass Earth has
established a large portfolio of gold prospecting and
exploration permits in New Zealand, including advanced gold
prospects in the Hauraki-Waihi area; advanced and greenfields
gold prospects at the Mamaku-Muirs Reef area between Rotorua and
Tauranga; Greenfield gold prospects in the Central Volcanic
Region between Rotorua and Taupo, and advanced and greenfields
gold prospects in the Otago mesothermal gold fields, including
priority over a 20,550km2 prospecting permit area which it
believes is prospective for Macraesstyle gold mineralisation.  
All Glass Earth's business operations are owned and managed by
its New Zealand subsidiaries Glass Earth (New Zealand) Limited
and HPD New Zealand Limited.  As of December 27, 2006, St Andrew
Goldfields Ltd. held approximately 50.2% interest in the
company.

                     Going Concern Doubt

The company is in the development stage, and has not earned
revenues to date.  For the nine-month period ended Nov. 30,
2006, the company had a net loss of CDN$629,000 and accumulated
deficit of CDN$2,579,000.  The company's ability to meet its
obligations and continue as a going concern, according to its
auditors, is dependent upon its ability to obtain additional
financing, the discovery, development or sale of mining reserves
and achievement of profitable operations.


GLASS EARTH: To Issue Unlimited Number of Common Shares
-------------------------------------------------------
Glass Earth was incorporated under the Business Corporations Act
(British Columbia) on March 23, 1989, under the name "362293
B.C. Ltd.".  On Aug. 30, 1989, the company changed its name to
BC Report Magazine Ltd., and on March 30, 2005, to Glass Earth
Limited concurrently with the completion of a Reverse Takeover
of the Company by Glass Earth (New Zealand) Limited -- GENZL.

Glass Earth Limited's shares trade on the TSX Venture Exchange
and the New Zealand Alternative Exchange under the symbol "GEL".
The company is authorized to issue an unlimited number of common
shares without par value.

As at March 6, 2007, these items were issued and outstanding:

   -- 129,902,633 common shares;

   -- 11,140,000 common share purchase options with an average
      exercise price of CDN$0.16 per share and expiry dates of
      between Feb. 22, 2011, and Dec. 1, 2011;

   -- 23,375,998 unlisted common share purchase warrants with an
      average exercise price of CDN$0.28 per share and expiry
      dates of between March 31, 2007, and June 6, 2008; and

   -- 20,000,000 listed (on the NZAX) common share purchase
      warrants with an exercise price of NZ$0.35 (approximately
      $0.26) per share and expiry date of Oct. 13, 2008.

Pursuant to escrow agreements with the TSX Venture Exchange,
these holdings are the subject of escrow provisions:

   -- the 36,000,720 common shares issued to purchase GENZL, on
      March 31, 2005, with an initial 10% released immediately
      subject to a hold provision of 4 months.  A further 15%
      was released on Oct. 6, 2005 and will be released every 6
      months thereafter;

   -- 5,018,000 common shares held as of the date of the
      purchase of GENZL by a control party, with an initial 10%
      released immediately subject to a hold provision of 4
      months.  A further 15% was released on Oct. 6, 2005, and
      will be released every 6 months thereafter.

A total of 18,458,424 common shares remain subject to the
provisions of the escrow agreement, Glass Earth disclosed in its
financial report for the seven-months ended Dec. 31, 2006, filed
with the New Zealand Stock Exchange.

                       About Glass Earth

Glass Earth Ltd -- http://www.glassearthlimited.com/-- and its  
subsidiaries principal activity are the exploration for and
mining of gold deposits in New Zealand.  Glass Earth has
established a large portfolio of gold prospecting and
exploration permits in New Zealand, including advanced gold
prospects in the Hauraki-Waihi area; advanced and greenfields
gold prospects at the Mamaku-Muirs Reef area between Rotorua and
Tauranga; Greenfield gold prospects in the Central Volcanic
Region between Rotorua and Taupo, and advanced and greenfields
gold prospects in the Otago mesothermal gold fields, including
priority over a 20,550km2 prospecting permit area which it
believes is prospective for Macraesstyle gold mineralisation.  
All Glass Earth's business operations are owned and managed by
its New Zealand subsidiaries Glass Earth (New Zealand) Limited
and HPD New Zealand Limited.  As of December 27, 2006, St Andrew
Goldfields Ltd. held approximately 50.2% interest in the
company.

                      Going Concern Doubt

The company is in the development stage, and has not earned
revenues to date.  For the nine-month period ended Nov. 30,
2006, the company had a net loss of CDN$629,000 and accumulated
deficit of CDN$2,579,000.  The company's ability to meet its
obligations and continue as a going concern, according to its
auditors, is dependent upon its ability to obtain additional
financing, the discovery, development or sale of mining reserves
and achievement of profitable operations.


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

FIL-ESTATE CORP: To Acquire 30% Stake in Camp John Hay Dev't.
-------------------------------------------------------------
Fil-Estate Corp. entered into an agreement Fil-Estate Management
Inc. to acquire FMI's 30% equity interest in Camp John Hay
Development Corp., a regulatory filing with the Philippine Stock
Exchange reveals.

Pursuant to the deal, FC will acquire the interest by way of
stock-to-stock swap.

The agreement will take effect upon securing the necessary
government approvals.

Headquartered in Pasig City, Philippines, Fil-Estate Corporation
was originally incorporated as San Jose Oil Company, Inc. whose
primary purpose was to prospect for and market, oil, natural gas
and other minerals and secondarily invest in non-mining
corporation or other enterprises.  In July 1996, the Board of
Directors and the stockholders approved the change in the
company's primary purpose from oil exploration to that of a
holding company authorized to engage in property and
infrastructure development, as well as the increase in
authorized capital stock from PHP300 million to PHP2 billion
with par value of PHP1.00 per share.

On January 22, 1998, the Securities and Exchange Commission
approved the change in corporate name to Fil-Estate Corporation,
the change in primary purpose from oil exploration to a holding
firm, the change in par value from PHP0.01 to PHP1.00 per share,
and the declassification of the A and B shares.  The company
started engaging in infrastructure, privatization, leisure and
real estate investments through directly managed subsidiaries,
associated entities and strategic alliances.  The key investment
of Fil-Estate Corporation is in the form of equity interest in
Metro Rail Transit Holdings, Inc., and Metro Rail Transit
Holdings 2.

The Troubled Company Reporter - Asia Pacific previously reported
that Fil-Estate Corporation, as of Dec. 21, 2006, has assets
totaling US$33.30 million and total shareholders' equity deficit
of US$5.80 million.


MARIWASA MANUFACTURING: Signs PHP1.6BB Debt Restructuring Pact
--------------------------------------------------------------
Mariwasa Manufacturing Corp. is currently negotiating with local
banks for a PHP1.6-billion debt restructuring agreement, the
company tells the Philippine Stock Exchange, confirming a news
article.

On March 16, BusinessWorld reported of Mariwasa's entry into a
restructuring deal with seven creditor banks:

   -- International Finance Corp.,
   -- Banco de Oro Universal Bank,
   -- China Banking Corp.,
   -- Bank of the Philippine Islands,
   -- Lehman Brothers, Inc.,
   -- JP Morgan Corp. and
   -- Meridian Corp.

Mariwasa Manufacturing expects the signing of the agreement to
be completed within a month.

The company further informs the PSE that majority of its
stockholders has approved to reclassify its authorized capital
stock to PHP1,500,000,000, divided into:

   -- 1,200,000,000 common shares with the par value of PHP1.00
      per share; and

   -- 3,000,000,000 preferred shares with par value of PHP0.10
      per share.

Majority of stockholders also approved the increase of
Mariwasa's authorized capital stock from PHP1.5 billion to
PHP1.83billion divided into 1,200,000,000 common shares with par
value of PHP1.00 per share and 6,300,000,000 preferred shares
with par value of PHP0.10 per share.  Convertible debentures may
be converted into preferred shares at PHP0.10 per share, the
company adds.

Incorporated on November 5, 1963, Mariwasa Manufacturing
Corporation -- http://www.mariwasa.com/-- manufactures and
sells glazed ceramic floor tiles in various sizes, colors and
designs via a distribution network that spans the whole
archipelago.  The Company has 76 distributors and a significant
number of exclusive distributors nationwide.  Aside from the
local market, Mariwasa tiles also exports to foreign markets
such as the United States and Hong Kong, among others.

                       Going Concern Doubt

After auditing the Company's 2005 Annual Report, Aileen Saringan
of Sycip Gorres Velayo and Co. raised substantial doubt on the
Company's ability to continue as a going concern.  According to
Ms. Saringan, "the Parent Company and its subsidiaries have
incurred recurring net losses and have a working capital
deficiency.  In addition, the Parent Company and its major
subsidiary have not complied with certain loan covenants with
creditor banks."

Mariwasa has deferred payments pending the approval of its
proposed restructuring scheme.

Loan restructuring has been initiated and with the completion of
the loan restructuring, the Group expects to reduce its interest
expense and achieve more flexibility in its cash management.

The Group has also implemented these measures:

   * Tightening credit control to avert potential bad debts; and

   * Continuously improving production efficiencies and cutting
     down overall costs by optimizing capacities and reducing
     downtime.


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

LEAR CORP: Faces ERISA Violations Suit Over US$2.31-Bil. Sale
-------------------------------------------------------------
Lear Corp. employees filed a lawsuit in the U.S. District Court
for the Eastern District of Michigan seeking to block the
automotive parts supplier's acquisition by billionaire investor
Carl Icahn, The Detroit News reports.

Named defendants in the suit:

     -- Roger A. Jackson
     -- Robert E. Rossiter
     -- James H. Vandenberghe
     -- David E. Fry
     -- Vincent J. Intrieri
     -- Conrad L. Mallet, Jr.
     -- Larry W. McCurdy
     -- Roy E. Parrott
     -- David P. Spalding
     -- James A. Stern
     -- Henry D.G. Wallace
     -- Richard F. Wallman
     -- Lear Corp.
     -- American Real Estate Partners, L. P.
     -- Carl C. Icahn
     -- Lear Corp. Employee Benefits Committee

In February, the company agreed to a US$2.31 billion buyout
offer from Icahn-controlled American Real Estate Partners LP.
The transaction involves Mr. Icahn paying US$36 per share for
the shares he does not already own, according to reports.

Under the terms of the agreement, Lear was allowed to solicit
alternate proposals for 45 days.

According to the lawsuit, the employees have company stock in
two retirement plans, accounting for 1.5 million shares at the
end of 2005, roughly amounting to US$45 million.

The lawsuit seeks class-action status and argues the deal would
violate the Employee Retirement Income Security Act.

Besides undervaluing Lear, the lawsuit argues that the deal is
prohibited by ERISA since it would have Lear's salaried and
hourly retirement savings plans sell shares of company stock to
Mr. Icahn's affiliate.

The lawsuit states that ERISA prohibits "any transaction
involving the sale or exchange of plan assets between a plan and
a party in interest."

The lawsuit argues that Mr. Icahn's affiliate is a "party in
interest" in this case.

The suit is "Qualey v. Jackson et al., Case No. 2:07-cv-10910-
GER-RSW," filed in the U.S. District Court for the Eastern
District of Michigan, under Judge Gerald E. Rosen, with referral
to Judge R. Steven Whalen.

Representing plaintiffs are:

     (1) Barry D. Adler of Adler and Assoc. (Farmington Hills),
         30300 Northwestern Highway, Suite 304, Farmington
         Hills, MI 48334, Phone: 248-855-5090, E-mail:
         badler@adlerfirm.com;

     (2) Ellen M. Doyle of Malakoff, Doyle, 437 Grant St., Suite
         200, Pittsburgh, PA 15219, Phone: 412-281-8400, E-mail:
         edoyle@mdfpc.com; and

     (3) Ronen Sarraf of Sarraf Gentile, 487 Seventh Avenue,
         Suite 1005, New York, NY 10018, Phone: 212-868-3610,
         Fax: 212-918-7967, E-mail: ronen@sarrafgentile.com.

                     About Lear Corporation

Headquartered in Southfield, Michigan , Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive interior    
systems and components.  Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.

Lear has operations in these Asian countries: Singapore, China,
India, Japan, Thailand and the Philippines.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Feb. 15, 2007, that following Lear's agreement to be acquired by
Carl Icahn-controlled American Real Estate Partners, L.P.,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Lear to 'B' from 'B+' and placed its ratings on
CreditWatch with negative implications.

The TCR-AP also noted on Feb. 7, 2007, that Moody's Investors
Service placed Lear's corporate family rating at B2, under
review for possible downgrade.  The company's speculative grade
liquidity rating of SGL-2 has been affirmed.


LEAR CORP: Faces Lawsuits Over US$2.31 Bil. Sale to Carl Icahn
--------------------------------------------------------------
Southfield, Michigan-based Lear Corp. is facing six purported
class actions filed by certain shareholders seeking to block the
automotive parts supplier's acquisition by billionaire investor
Carl Icahn, according to the company's Feb. 27, 2007 Form 10-K
filing with the U.S. Securities and Exchange Commission for the
period ended Dec. 31, 2006.

In February, the company agreed to a US$2.31 billion buyout
offer from Icahn-controlled American Real Estate Partners LP.  
The transaction involves Mr. Icahn paying US$36 per share for
the shares he does not already own, according to reports.

Under the terms of the agreement, Lear was allowed to solicit
alternate proposals for 45 days.

Between Feb. 9, 2007 and Feb. 21, 2007, certain stockholders
filed six purported class actions against the company, certain
members of the board of directors and American Real Estate
Partners, L.P. and certain of its affiliates (AREP).

Three of the lawsuits were filed in the Delaware Court of
Chancery and have since been consolidated into a single action.   
Another three were filed in Michigan Circuit Court.

The class action complaints, which are substantially similar,
generally allege that the Agreement and Plan of Merger unfairly
limits the process of selling Lear and that certain members of
the company's board of directors have breached their fiduciary
duties in connection with the Merger Agreement and have acted
with conflicts of interest in approving the Merger Agreement.

The lawsuits seek to enjoin the merger, to invalidate the Merger
Agreement and to enjoin the operation of certain provisions of
the Merger Agreement, a declaration that certain members of the
company's Board of Directors breached their fiduciary duties in
approving the Merger Agreement and an award of unspecified
damages or rescission in the event that the proposed merger with
AREP is completed.

On Feb. 23, 2007, the plaintiffs in the consolidated Delaware
action filed a consolidated amended complaint, a motion for
expedited proceedings and a motion to preliminarily enjoin
the merger contemplated by the Merger Agreement.

The company believes that the lawsuits are without merit and
intend to defend against them vigorously.

                      About Lear Corporation

Headquartered in Southfield, Michigan , Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive interior    
systems and components.  Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.

Lear has operations in these Asian countries: Singapore, China,
India, Japan, Thailand and the Philippines.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Feb. 15, 2007, that following Lear's agreement to be acquired by
Carl Icahn- controlled American Real Estate Partners, L.P.,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Lear to 'B' from 'B+' and placed its ratings on
CreditWatch with negative implications.

The TCR-AP also noted on Feb. 7, 2007, that Moody's Investors
Service placed Lear's corporate family rating at B2, under
review for possible downgrade.  The company's speculative grade
liquidity rating of SGL-2 has been affirmed.


LEAR CORP: To Supply Seating Systems to Bombardier Recreational
---------------------------------------------------------------
Lear Corp. has been awarded a new contract to supply seating
systems to Bombardier Recreational Products Inc. for its Can-Am
line of all-terrain vehicles.  The new business is for a term of
five years.  Financial details of the agreement were not
disclosed.

In May of this year, Lear will begin providing complete seating
assemblies with key characteristics of durability and comfort to
BRP's all-new ATV assembly plant in Juarez, Mexico.  The seats
will be produced at Lear's existing San Lorenzo, Mexico seating
facility, which currently employs 2,500 workers.  This facility
also manufactures seat trim covers for Ford Motor Company and
DaimlerChrysler Corporation's Chrysler unit.

"This new seating business signals progress in our strategic
initiative to further diversify Lear's customer and product
segment portfolio and explore non-traditional growth
opportunities that are synergistic with our core competencies
and existing infrastructure," Doug DelGrosso, Lear President and
Chief Operating Officer, said.  "Lear and BRP are working
jointly to identify other opportunities and we are also
exploring possibilities to leverage our seating expertise within
other industries."

                     About Lear Corporation

Headquartered in Southfield, Michigan , Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive interior    
systems and components.  Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.

Lear has operations in these Asian countries: Singapore, China,
India, Japan, the Philippines and Thailand.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Feb. 15, 2007, that following Lear's agreement to be acquired by
Carl Icahn- controlled American Real Estate Partners, L.P.,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Lear to 'B' from 'B+' and placed its ratings on
CreditWatch with negative implications.

The TCR-AP also noted on Feb. 7, 2007, that Moody's Investors
Service placed Lear's corporate family rating at B2, under
review for possible downgrade.  The company's speculative grade
liquidity rating of SGL-2 has been affirmed.


SEA CONTAINERS: Files Updated Operating Report for October 2006
---------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates underwent a
reconciliation process of, among other things, their
intercompany claims, to ensure that their financial reporting is
as of the Petition Date, rather than as of Sept. 30, 2006.  As a
result, the Debtors updated their monthly operating report
previously filed with the Court:

                      Sea Containers, Ltd.
                    Unaudited Balance Sheet
                    As of October 31, 2006

                            Assets

Current Assets
   Cash and cash equivalents                      US$52,084,064
   Trade receivables, less allowances
     for doubtful accounts                            1,197,118
   Due from related parties                          10,077,614
   Prepaid expenses and other current assets          4,369,498
                                                   ------------
      Total current assets                           67,728,294

Fixed assets, net                                             0

Long-term equipment sales receivable, net                     -
Investments in group companies                                -
Intercompany receivables                                      -
Investment in equity ownership interests            199,120,137
Other assets                                          3,454,797
                                                   ------------
Total assets                                     US$270,303,229
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                   US$14,462
   Accrued expenses                                  24,978,283
   Current portion of long-term debt                 26,042,311
   Current portion of senior notes                  385,040,923
                                                   ------------
      Total current liabilities                     436,075,980

Total shareholders' equity                         (165,772,752)
                                                   ------------
Total liabilities and shareholders' equity       US$270,302,228
                                                   ============

                     Sea Containers, Ltd.
               Unaudited Statement of Operations
             For the Month Ended October 31, 2006

Revenue                                            US$1,400,953

Costs and expenses:
   Operating costs                                      249,354
   Selling, general and
     administrative expenses                           (178,520)
   Charges to provide against
     intercompany accounts                            3,488,763
   Depreciation and amortization                              0
                                                   ------------
      Total costs and expenses                        3,559,597
                                                   ------------

Loss on sale of assets                                        0
                                                   ------------
Operating income (loss)                               4,960,550

Other income (expense)
   Interest income                                      163,248
   Foreign exchange gains (losses)                       14,664
   Interest expense, net                             (1,749,438)
                                                   ------------
Income (Loss) before taxes                            3,389,024
Income tax expense                                      (51,614)
                                                   ------------
Net (Loss)                                         US$3,337,410
                                                   ============

Sea Containers, Ltd., also reported US$1,614,406 in cash
receipts, and no disbursements for October 2006.  The Debtor
held US$52,084,064 in cash as of October 31.

                 Sea Containers Services Ltd.
                    Unaudited Balance Sheet
                    As of October 31, 2006

                            Assets

Current Assets
   Cash and cash equivalents                         US$271,670
   Trade receivables                                    475,165
   Due from related parties                           5,789,600
   Prepaid expenses and other current assets         13,252,836
                                                   ------------
      Total current assets                           19,789,271

Fixed assets, net                                     3,324,751

Investments                                           2,556,283
Intercompany receivables                             35,355,343
Other assets                                             14,294
                                                   ------------
Total assets                                      US$61,039,942
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$4,465,371
   Accrued expenses                                   4,420,261
   Current portion of long-term debt                  1,836,525
                                                   ------------
      Total current liabilities                      10,722,156

Total shareholders' equity                           50,317,786
                                                   ------------
Total liabilities and shareholders' equity        US$61,039,942
                                                   ============

                 Sea Containers Services Ltd.
               Unaudited Statement of Operations
             For the Month Ended October 31, 2006

Revenue                                            US$1,136,728

Costs and expenses:
   Operating costs                                            -
   Selling, general and
     administrative expenses                           (903,621)
   Other charges                                              -
   Depreciation and amortization                        (66,405)
                                                   ------------
      Total costs and expenses                         (970,026)
                                                   -------------

Gains on sale of assets                                       0
                                                   ------------
Operating income (loss)                                 166,702

Other income (expense)
   Interest income                                            8
   Foreign exchange gains (losses)                           95
   Interest expense, net                                 (5,806)
                                                   ------------
Income (Loss) before taxes                              160,998
Income tax expense                                            0
                                                   ------------
Net Income                                           US$160,998
                                                   ============

Sea Containers Services recorded US$122,000 in cash receipts,
and US$124,323 in disbursements for October 2006.  The Debtor
held US$271,670 in cash as of October 31.

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?1afd

In its balance sheet, Sea Containers Carribean, Inc., reported
zero assets and accounts payable of US$3,530,094, as its sole
liability, as of October 31.

                      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)


SEA CONTAINERS: Files Updated Operating Report for November 2006
----------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates underwent a
reconciliation process of, among other things, their
intercompany claims, to ensure that their financial reporting is
as of the Petition Date, rather than as of Sept. 30, 2006.  As a
result, the Debtors amended their monthly operating report
previously filed with the Court:

                      Sea Containers, Ltd.
                    Unaudited Balance Sheet
                    As of November 30, 2006

                            Assets

Current Assets
   Cash and cash equivalents                      US$56,007,964
   Trade receivables, less allowances
     for doubtful accounts                            1,917,770
   Due from related parties                           8,201,195
   Prepaid expenses and other current assets          6,524,397
                                                   ------------
      Total current assets                           72,651,326

Fixed assets, net                                             0

Long-term equipment sales receivable, net                     -
Investments in group companies                                -
Intercompany receivables                                      -
Investment in equity ownership interests            202,366,216
Other assets                                          3,378,541
                                                   ------------
Total assets                                     US$278,396,083
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$2,809,381
   Accrued expenses                                  29,436,083
   Current portion of long-term debt                 26,795,063
   Current portion of senior notes                  385,069,151
                                                   ------------
      Total current liabilities                     444,109,678

Total shareholders' equity                         (165,713,595)
                                                   ------------
Total liabilities and shareholders' equity       US$278,396,083
                                                   ============

                     Sea Containers, Ltd.
               Unaudited Statement of Operations
             For the Month Ended November 30, 2006

Revenue                                            US$1,342,882

Costs and expenses:
   Operating costs                                       27,402
   Selling, general and
     administrative expenses                         (4,183,914)
   Reorganization costs                                       -
   Charges to provide against
     intercompany accounts                            7,044,011
   Depreciation and amortization                              -
                                                   ------------
      Total costs and expenses                        2,887,499
                                                   ------------

Loss on sale of assets                                        0
                                                   ------------
Operating income (loss)                               4,230,381

Other income (expense)
   Interest income                                      218,643
   Foreign exchange gains (losses)                       23,237
   Interest expense, net                             (3,483,956)
                                                   ------------
Income (Loss) before taxes                              988,304
Income tax expense                                     (100,000)
                                                   ------------
Net (Loss)                                           US$888,304
                                                   ============

Sea Containers, Ltd., also reported US$4,238,889 in cash
receipts, and 311,788 in disbursements for November 2006.  The
Debtor held US$56,007,964 in cash as of Nov. 31.

                 Sea Containers Services Ltd.
                    Unaudited Balance Sheet
                    As of November 30, 2006

                            Assets

Current Assets
   Cash and cash equivalents                         US$233,206
   Trade receivables                                    259,095
   Due from related parties                           5,890,101
   Prepaid expenses and other current assets          6,898,193
                                                   ------------
      Total current assets                           13,270,596

Fixed assets, net                                     3,280,027

Investments                                           2,596,645
Intercompany receivables                             42,852,621
Other assets                                             12,705
                                                   ------------
Total assets                                      US$62,012,595
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$2,806,523
   Accrued expenses                                   6,109,749
   Current portion of long-term debt                  1,660,779
                                                   ------------
      Total current liabilities                      10,577,050

Total shareholders' equity                           51,435,544
                                                   ------------
Total liabilities and shareholders' equity        US$62,012,595
                                                   ============

                 Sea Containers Services Ltd.
               Unaudited Statement of Operations
             For the Month Ended November 30, 2006

Revenue                                              US$418,420

Costs and expenses:
   Operating costs                                            -
   Selling, general and
     administrative expenses                             38,281
   Reorganization costs                                       -
   Other charges                                              -
   Depreciation and amortization                       (102,752)
                                                   ------------
      Total costs and expenses                          (64,470)
                                                   ------------

Gains on sale of assets                                       0
                                                   ------------
Operating income (loss)                                 353,950

Other income (expense)
   Interest income                                            -
   Foreign exchange gains (losses)                      (35,864)
   Interest expense, net                                 (2,537)
                                                   ------------
Income (Loss) before taxes                              315,549
Income tax expense                                            0
                                                   ------------
Net Income                                           US$315,549
                                                   ============

                       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)


SEA CONTAINERS: Files Updated Operating Report for December 2006
----------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates underwent a
reconciliation process of, among other things, their
intercompany claims, to ensure that the Debtors' financial
reporting is as of the Petition Date, rather than as of
Sept. 30, 2006.  As a result, the Debtors amended their monthly
operating report previously filed with the Court:

                      Sea Containers, Ltd.
                    Unaudited Balance Sheet
                    As of December 31, 2006

                            Assets

Current Assets
   Cash and cash equivalents                      US$54,196,789
   Trade receivables, less allowances
     for doubtful accounts                              508,115
   Due from related parties                             385,028
   Prepaid expenses and other current assets          4,465,332
                                                   ------------
      Total current assets                           59,555,264

Fixed assets, net                                             0

Long-term equipment sales receivable, net                     -
Investments in group companies                                -
Intercompany receivables                                      -
Investment in equity ownership interests            204,331,424
Other assets                                          3,302,285
                                                   ------------
Total assets                                     US$267,188,973
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$2,123,898
   Accrued expenses                                  30,796,263
   Current portion of long-term debt                 26,946,083
   Current portion of senior notes                  385,097,380
                                                   ------------
      Total current liabilities                     444,963,624

Total shareholders' equity                         (177,774,651)
                                                   ------------
Total liabilities and shareholders' equity       US$267,188,973
                                                   ============

                     Sea Containers, Ltd.
               Unaudited Statement of Operations
             For the Month Ended December 31, 2006

Revenue                                              US$499,123

Costs and expenses:
   Operating costs                                      351,937
   Selling, general and
     administrative expenses                         (4,449,737)
   Reorganization Costs                                  (7,480)
   Charges to provide against
     intercompany accounts                           (4,882,245)
   Depreciation and amortization                        (58,677)
                                                   ------------
      Total costs and expenses                       (9,046,202)
                                                   ------------

Loss on sale of assets                                  (29,747)
                                                   ------------
Operating income (loss)                              (8,576,826)

Other income (expense)
   Interest income                                      248,766
   Foreign exchange gains (losses)                      (92,909)
   Interest expense, net                             (3,408,685)
                                                   ------------
Income (Loss) before taxes                          (11,829,654)
Income tax expense                                     (100,000)
                                                   ------------
Net (Loss)                                       (US$11,929,654)
                                                   ============

Sea Containers, Ltd., also reported US$1,614,406 in cash
receipts, and US$3,325,581 in disbursements for December 2006.  
The Debtor held US$54,196,789 in cash as of Dec. 31.

                 Sea Containers Services Ltd.
                    Unaudited Balance Sheet
                    As of December 31, 2006

                            Assets

Current Assets
   Cash and cash equivalents                          US$64,809
   Trade receivables                                    467,956
   Due from related parties                           3,334,083
   Prepaid expenses and other current assets          8,528,756
                                                   ------------
      Total current assets                           12,395,604

Fixed assets, net                                     3,196,876

Investments                                           2,637,008
Intercompany receivables                             45,758,723
Other assets                                          3,656,666
                                                   ------------
Total assets                                      US$67,644,876
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                US$2,810,115
   Accrued expenses                                   4,663,663
   Current portion of long-term debt                  1,677,105
                                                   ------------
      Total current liabilities                       9,150,883

Total shareholders' equity                           58,493,993
                                                   ------------
Total liabilities and shareholders' equity        US$67,644,876
                                                   ============

                 Sea Containers Services Ltd.
               Unaudited Statement of Operations
             For the Month Ended December 31, 2006

Revenue                                            US$3,441,096

Costs and expenses:
   Operating costs                                            -
   Selling, general and
     administrative expenses                         (2,152,356)
   Professional fees                                   (756,603)
   Other charges                                              -
   Depreciation and amortization                       (111,089)
                                                   ------------
      Total costs and expenses                       (3,020,048)
                                                   ------------

Gains on sale of assets                                  15,033
                                                   ------------
Operating income (loss)                                 436,080

Other income (expense)
   Interest income                                           45
   Foreign exchange gains (losses)                     (110,628)
   Interest expense, net                                (31,417)
                                                   ------------
Income (Loss) before taxes                              294,080
Income tax expense                                    5,964,852
                                                   ------------
Net (Loss)                                         US$6,258,932
                                                   ============

In its schedules of receipts and disbursements, Sea Containers
Services recorded US$3,265,192 in cash receipts, and
US$3,415,721 in disbursements for December 2006.

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?1b00

In its balance sheet, Sea Containers Carribean, Inc., reported
zero assets and accounts payable of US$3,530,094 as its sole
liability as of Dec. 31, 2006.

                      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)


SHIP FINANCE: Sells VLCC Front Vanadis to TMT Subsidiary
--------------------------------------------------------
Ship Finance International Ltd. has agreed to sell the single-
hull VLCC Front Vanadis to a subsidiary of Taiwan Maritime
Transportation Co., Ltd., an unrelated third party.

The sale will be in the form of a hire-purchase agreement, where
the vessel will be chartered to the Buyer for a 3.5-year period,
with a purchase obligation at the end of the charter.

There will a gross upfront payment of US$12.5 million from TMT,
and the gross bareboat charter rate will be US$25,000 per day
during the charter period. The purchase obligation at the end of
the charter is US$3 million. In addition, the Buyer will have
quarterly purchase options during the charter, starting at
US$27.9 million, and reducing gradually over the term of the
charter. Ship Finance has agreed to pay a compensation payment
of approximately US$13.2 million to Frontline Ltd. for the
termination of the current charter. Delivery to the Buyer is
expected to take place in April or May 2007.

During the term of the new charter, Ship Finance will receive on
average approximately US$10,000 more per day compared to the
base rate in the current charter agreement with Frontline, net
of operating expenses.

Following this sale, and after the delivery of six other suezmax
single-hull tankers previously announced sold, Ship Finance will
only have 10 single hull vessels remaining in the fleet, of
which three have double sides.  This is significantly less than
the 18 single hull vessels in the fleet only four months ago. Of
the remaining crude oil tankers without double hull, Frontline
has, as charterer, secured profitable sub-charters for seven of
the vessels, and only the three vessels with double sides are
currently traded in the spot market.

The reduction of the single hull tanker exposure is in line with
the Company's strategy of focusing on modern assets in various
shipping and offshore market segments.  Including new buildings
and recently announced acquisitions and sales, the Company's
fleet will consist of 56 vessels, essentially all on medium to
long term charters.

                        About Ship Finance

Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages  
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers.  The company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway and Singapore.

It is also involved in the charter, purchase and sale of
vessels.

                          *     *     *

Moody's Investors Service affirmed Ship Finance International
Ltd.'s ratings, including the Ba3 Corporate Family Rating, the
Ba2 Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating.  Moody's said the ratings outlook
remains stable.


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

BANK OF AYUDHYA: To Launch New Online and Mobile Services in 07
---------------------------------------------------------------
The Bank of Ayudhya announced that it will launch a number of
Web-based banking services for its customers starting next
month, Newsbytes reports.

The report states that BAY just signed its second five-year
contract with Alltel to implement the core accounting software
and other modules such as customer relationship management.  
Web-based banking applications such as Internet banking, payment
gateway, electronic trading and cash management are also
included in the software package.     

The report says that BAY will launch "Krungsri e-trade" -- an
electronic trading system for business -- next month.  The
system will allow companies and corporations to safely conduct
trade online.    

Newsbytes says that BAY is testing the system with 10 of its
corporate customers.  BAY Executive Vice President
Nanthasit Leksrisakul says that the system is verified by IBM
and the bank is getting the Bank of Thailand's approval to
launch "Krungsri e-trade".    

The report states that BAY will also launch an online retail
banking service, with its nearly 3 million individual users as
its base.

According to BAY Executive Vice President Preeprame Tespasit,
the bank has set a budget of around THB2.5 billion
(US$58.33 million) for Information Technology this year to
facilitate the integration of customer information, to offer
more sophisticated products, and to streamline its loan
products, the report adds.   

Newsbytes says that BAY will launch its electronic banking
services during the second quarter, and new mobile banking
services will be introduced during the first half of 2007.

                 About The Bank of Ayudhya PCL

Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of   
banking and financial services.  The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches.  It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 16, 2007, that Fitch Ratings upgraded Bank of Ayudhya's:

    * Long-term foreign currency Issuer Default rating to BBB-
      from BB+;

    * Short-term foreign currency to F3 from B;

    * Foreign currency subordinated debt rating to BB+ from BB;
      and

    * Individual rating to C/D from D.

Fitch also affirmed the bank's Support ratings at 3.

At the same time, Moody's Investors Service upgraded the Bank of
Ayudhya's bank financial strength rating to "D-" from "E+".


BANK OF AYUDHYA: Lowers Interest Rates by .25%
----------------------------------------------
The Bank of Ayudhya announced that it has lowered all loan
interest rates by 0.25% starting Mar. 16, 2007, Thai News
reports, citing deputy managing director Tak Bunnak.  

The report adds that the Thai baht is at around THB35.01 to
THB35.03 per US$1 -- the highest in the last nine years.  

                 About The Bank of Ayudhya PCL

Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of   
banking and financial services.  The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches.  It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.

The Troubled Company Reporter - Asia Pacific reported on
Jan. 16, 2007, that Fitch Ratings upgraded Bank of Ayudhya's:

    * Long-term foreign currency Issuer Default rating to BBB-
      from BB+;

    * Short-term foreign currency to F3 from B;

    * Foreign currency subordinated debt rating to BB+ from BB;
      and

    * Individual rating to C/D from D.

Fitch also affirmed the bank's Support ratings at 3.

At the same time, Moody's Investors Service upgraded the Bank of
Ayudhya's bank financial strength rating to "D-" from "E+".


DAIMLERCHRYSLER AG: Equity Groups Want Bernhard as Advisor
----------------------------------------------------------
Some private equity groups want Former Volkswagen AG Chairman
Wolfgang Bernhard to act as adviser for a consortium seeking to
acquire DaimlerChrysler AG's Chrysler Group, John Reed writes
for the Financial Times.

The report says that Mr. Bernhard, who is deemed a potential
asset for aspiring Chrysler investors, was previously the unit's
chief operating officer before he moved to Volkswagen in 2005.

A source involved in the bidding process said Cerberus Capital
Management, Carlyle, Apollo Management, and Ripplewood could all
submit proposals, FT states.

According to reports, a detailed sales prospectus for Chrysler
Group bidders should be completed soon, the first step toward a
potential sale that would unwind the 1998 merger that created
DaimlerChrysler.

                   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 AG: Workers Opt for More Jobs Over Pay Cuts
-----------------------------------------------------------
Workers at a DaimlerChrysler AG plant in Ontario, Canada, agreed
to a CDN5,000 pay cut in exchange for a CDN700 million
investment by Chrysler Group, Rick Eglinton writes for Toronto
Star.

Bob Chernecki, assistant to Canadian Auto Workers president Buzz
Hargrove, told The Star that Chrysler's investment would allow
the plant to produce more variety of vehicles, which would
subsequently ensure the plant's competitiveness in a volatile
market.

Majority of workers in the Brampton plant, representing 78
percent of CAW production employees and 95 percent of skilled
trades members, agreed on March 11 to give up a paid premium
that amounts to about 48 minutes a day, which is roughly CDN125
a week, Joe Schneider of Bloomberg News says.  This would come
into effect when the new investment is put into the Brampton
plant, The Star adds.  About 4,200 workers of the Brampton plant
are currently receiving an average pay of between CDN30 to CDN35
an hour.  

The concessions, Bloomberg relates, would save DaimlerChrysler
between CDN25 million and CDN30 million annually.

Aside from the elimination of shift premiums, the concessions
would also allow for:

   -- the outsourcing of 44 janitorial staff; and

   -- the outsourcing of work done by lift- truck and mobile
      equipment repair workers.

Chrysler earlier disclosed plans to introduce the full-sized
Chrysler Imperial before 2017.  The plan is to make the Brampton
assembly plant a flexible factory, capable of building four or
five models at the same time, The Star relates.

The Chrysler plant in Brampton aims to begin production of the
new Challenger muscle car in June in addition to its current
load building the Chrysler 300 sedan, Dodge Magnum wagon and
Charger.

DaimlerChrysler has scheduled a March 14 board meeting to
determine whether to proceed with the upgrade at the Brampton
plant.

                   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: DBRS Downgrades Rating on Senior Notes to BB (Low)
----------------------------------------------------------------
Dominion Bond Rating Service downgraded the rating of Freeport-
McMoRan Copper & Gold Inc.'s Senior Unsecured Notes to B (high)
from BB (low) after the announcement by the company on
Mar. 14, 2007, that shareholders of Freeport and Phelps Dodge
Corporation have approved Freeport's US$25.9 billion acquisition
of Phelps.  The trend is Stable.  DBRS downgraded the rating on
Phelps' Senior Unsecured Notes to BB (low) from BBB.  The trend
is Stable.

New rating action:

Freeport-McMoRan
   
   Revolving Credit Facility BB(high)
   Term Loan A & B BB(high)
   Senior Secured Notes BB(high)
   Issuer Rating BB
   Senior Unsecured Notes B(high)
   cross-guarantees Senior Secured Notes BB(high)

Phelps Dodge

   Issuer Rating BB
   Senior Unsecured Notes BB(low)

DBRS is assigning to Freeport's Revolving Credit Facility, Term
Loan A & B and Senior Secured Notes ratings of BB (high) and an
Issuer rating of BB.  The trends are Stable.  DBRS is assigning
to Phelp's Senior Secured Notes a rating of BB (high) and an
Issuer Rating of BB.  The trends are Stable.  The ratings
recognize the combined companies' strengthened business profile.
However, DBRS notes this has been partially offset by the
weakening of the financial profile.  The transaction is expected
to close on Mar. 19, 2007. With these rating actions, Freeport
is removed from Under Review with Developing Implications and
Phelps is removed from Under Review with Negative Implications -
where they were placed on Nov. 20, 2006.

The acquisition strengthens the business profile of New
Freeport as it benefits from additional metal production,
additional operating assets, geographic diversification, scale,
additional reserves and development potential.  Stand-alone
Freeport is currently a one-mine company -- with its mining
asset located in Indonesia.  With the acquisition of Phelps, New
Freeport will operate 11 mines, thus reducing mine operational
risks substantially.  New Freeport will have operating mines in
four countries and a large development project.  Pro forma 2006
revenue by geography was 35% in the United States, 38% in
Indonesia, 22% in Chile and 5% in Peru.  With approximately
3.6 billion pounds of copper production in 2006, New Freeport
would be the secondlargest copper producer in the world --
behind state-owned Corporacion Nacional del Cobre de Chile --
and the largest publicly traded copper mining company in the
world. Phelp's Tenke Fungurume development project, which is
located in the Democratic Republic of Congo, is believed to be
one of the largest undeveloped, high-grade copper/cobalt
projects in the world today.  The political risk profile of New
Freeport is reduced as mine production from Indonesia will be
reduced from 100% for stand-alone Freeport to approximately 40%
for New Freeport.

However, DBRS also notes that the acquisition weakens the
financial profile of New Freeport as its leverage increases
substantially.  Pro forma total debt for New Freeport is
$17.6 billion, as at Dec. 31, 2006.  New Freeport's pro forma
per cent gross debt-to-capital is 63%, up from 22% for stand-
alone Freeport, as at Dec. 31, 2006.  New Freeport's pro forma
cash flow-to-total debt is approximately 0.4x, down from 2.6x
for stand-alone Freeport, for the 12 months ended Dec. 31, 2006.

Freeport is financing the acquisition with a five-year
US$1.5 billion revolving credit facility, a five-year
US$2.5 billion senior secured Term Loan A, a seven-year
US$7.5 billion senior secured Term Loan B, eight-year senior
unsecured notes and ten-year senior unsecured notes.

DBRS notes that New Freeport will become the largest mining
company in North America by market capitalization.  

             About Freeport-McMoran Copper & Gold Inc.

Freeport-McMoRan Copper & Gold Inc. is a Louisiana based
producer of copper and gold through its Grasberg mine in
Indonesia.  Freeport's revenue in 2006 was US$5.8 billion.

                     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.


PHELPS DODGE: Freeport Prices Notes Offering to Finance Buy
-----------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. reported the pricing of
senior unsecured notes as part of the US$17.5 billion of debt
financing for the pending acquisition of Phelps Dodge Corp.  The
financing is comprised of US$16 billion in funded debt,
including US$10 billion in senior secured term loans and
US$6 billion in senior unsecured notes.

In addition, Freeport-McMoRan has a US$1.5 billion senior
secured revolving credit facility, which is expected to be
undrawn at closing.

Freeport-McMoRan will use the net proceeds from these offerings
to fund a substantial portion of the cash consideration of its
acquisition of Phelps Dodge and to pay related fees and
expenses.  The closing of each of the senior notes offering and
the senior secured credit facility is conditioned on Freeport-
McMoRan's acquisition of Phelps Dodge.  As previously announced,
shareholders of both companies separately approved Freeport-
McMoRan's acquisition of Phelps Dodge at special meetings held.  
Freeport-McMoRan expects the financing and acquisition
transactions to close on Mar. 19, 2007.

The joint book-running managers for the senior notes offering
are JPMorgan and Merrill Lynch & Co.  JPMorgan and Merrill Lynch
are also the joint lead arrangers and joint book-running
managers in respect of the Term A loan, the Term B loan and the
revolver.

            About Freeport-McMoran Copper & Gold Inc.

Freeport-McMoRan Copper & Gold Inc. is a Louisiana based
producer of copper and gold through its Grasberg mine in
Indonesia.  Freeport's revenue in 2006 was US$5.8 billion.

                     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.


SIAM COMMERCIAL: Appoints New Senior Executive Vice President
-------------------------------------------------------------
Siam Commercial Bank appointed Na Bhengbhasang Krishnamra as its
new Senior Executive Vice-President, TMC Net reports, citing The
Bangkok Post.  Mr. Na will oversee the bank's sales and service
division.  

The report says that Mr. Na earned his bachelor and graduate
degrees at the University of Pennsylvania.

The report adds that Siam Commercial Bank also appointed
Yokporn Tantisawetrat as its new Senior Executive Vice-President
and Chief Financial Officer, overseeing the bank's risk
management group.

Kannika Ngamsopee was also made as the bank's new Executive
Vice-President and Chief Audit and Compliance Officer.

                   About Siam Commercial Bank

Thailand's fourth largest commercial bank, Siam Commercial Bank
-- http://www.scb.co.th/-- provides a wide variety of personal    
and business banking options, including funds management, loan
and investment services, foreign currency exchange, and more.  
The bank has more than 500 branches countrywide, its total
assets added to THB814 billion as of December 31, 2005.

The Troubled Company Reporter - Asia Pacific reported on
Aug. 23, 2006, that Moody's Investors Service confirmed Siam
Commercial Bank Public Company Limited's D+ bank financial
strength rating and changed its outlook to positive from stable.

On Oct. 23, 2006, Fitch Ratings affirmed the ratings of Siam
Commercial Bank and removed them from Rating Watch Negative on
which they were placed on September 20, 2006, following the
military coup.  The Outlook on their ratings is now Stable.

After the rating action, SCB's ratings are as follows:

    * Long-term foreign currency IDR BBB+/ Outlook Stable;
    * Short-term foreign currency F2;
    * Individual C;
    * Support 2;
    * Senior unsecured debt BBB+;
    * Subordinated debt BBB.


* BOND PRICING: For the Week 12 March to 16 March 2007
------------------------------------------------------

Issuer                         Coupon  Maturity  Currency  Price
------                         ------  --------  --------  -----

AUSTRALIA & NEW ZEALAND
-----------------------
Ainsworth Game                 8.000%  12/31/09     AUD     0.90
Alinta Networks                5.750%  09/22/10     AUD     6.62
APN News & Media Ltd           7.250%  10/31/08     AUD     5.79
A&R Whitcoulls Group           9.500%  12/15/10     NZD     9.75
Arrow Energy NL               10.000%  03/31/08     AUD     1.50
Babcock & Brown Pty Ltd        8.500%  12/31/49     NZD     7.60
Becton Property Group          9.500%  06/30/10     AUD     0.85
BIL Finance Ltd                8.000%  10/15/07     NZD     9.75
Capital Properties NZ Ltd      8.500%  04/15/07     NZD     8.55
Capital Properties NZ Ltd      8.500%  04/15/09     NZD     8.55
Cardno Limited                 9.000%  06/30/08     AUD     5.40
CBH Resources                  9.500%  12/16/09     AUD     0.42
Chrome Corporation Ltd        10.000%  02/28/08     AUD     0.02
Clean Seas Tuna Ltd            9.000%  09/30/08     AUD     0.81
Djerriwarrh Investments Ltd    6.500%  09/30/09     AUD     4.40
Evans & Tate Ltd               8.250%  10/29/07     AUD     0.44
Fletcher Building Ltd          8.600%  03/15/08     NZD     8.60
Fletcher Building Ltd          7.800%  03/15/09     NZD     8.25
Fletcher Building Ltd          8.850%  03/15/10     NZD     8.20
Fletcher Building Ltd          7.550%  03/15/11     NZD     7.50
Futuris Corporation Ltd        7.000%  12/31/07     AUD     2.44
Hy-Fi Securities Ltd           7.000%  08/15/08     NZD     9.99
Hy-Fi Securities Ltd           8.750%  08/15/08     NZD    10.99
Hutchison Telecoms Australia   5.500%  07/12/07     AUD     0.20
IMF Australia Ltd             11.500%  06/30/10     AUD     0.82
Infrastructure & Utilities
   NZ Ltd                      8.500%  09/15/13     NZD     8.70
Infratil Ltd                   8.500%  11/15/15     NZD     8.20
Kiwi Income Properties Ltd     8.000%  06/30/10     NZD     1.22
Minerals Corporation Ltd      10.500%  09/30/07     AUD     0.89
Nuplex Industries Ltd          9.300%  09/15/07     NZD     9.40
Primelife Corporation         10.000%  01/31/08     AUD     1.03
Salomon SB Aust                4.250%  02/01/09     USD     7.67
Sapphire Sec                   9.160%  09/20/35     NZD     9.16
Silver Chef Ltd               10.000%  08/31/08     AUD     1.05
Software of Excellence         7.000%  08/09/07     NZD     1.75
Speirs Group Ltd.             10.000%  06/30/49     NZD    65.00
Structural Systems            11.000%  06/30/07     AUD     1.60
TrustPower Ltd                 8.300%  09/15/07     NZD     8.30
TrustPower Ltd                 8.300%  12/15/08     NZD     8.10
TrustPower Ltd                 8.500%  09/15/12     NZD     8.05
TrustPower Ltd                 8.500%  03/15/14     NZD     8.00


CHINA
-----
China Tietong                  4.600%  08/18/15     CNY    60.00
Jiangxi Investment             4.380%  09/11/21     CNY    56.84


JAPAN
-----
Japan Funi Muni Ent            1.700%  10/30/08     JPY     2.67
JNR Settlement                 2.200%  02/15/08     JPY     1.94
Nara Prefecture                1.520%  10/31/14     JPY    10.27


KOREA
-----
Korea Development Bank         7.450%  10/31/21     KRW    49.97
Korea Development Bank         7.400%  11/02/21     KRW    49.95
Korea Development Bank         7.310%  11/08/21     KRW    49.91
Korea Electric Power           7.950%  04/01/96     USD    57.52
Seoul Metro Rail               2.500%  01/31/14     KRW    47.47


MALAYSIA
--------
Aliran Ihsan Resources Bhd     5.000%  11/29/11     MYR     0.79
Asian Pac Bhd                  4.000%  12/21/07     MYR     0.40
Berjaya Land Bhd               5.000%  12/30/09     MYR     0.88
Bumiputra-Commerce             2.500%  07/17/08     MYR     1.27
Camerlin Group                 5.500%  07/15/07     MYR     2.13
Crescendo Corporation Bhd      3.000%  08/25/07     MYR     1.02
Denko Industrial Corp. Bhd     5.000%  03/15/07     MYR     0.69
Eastern & Oriental Hotel       8.000%  07/25/11     MYR     1.81
Eden Enterprises (M) Bhd       2.500%  12/02/07     MYR     1.00
Equine Capital                 3.000%  08/26/08     MYR     0.36
EG Industries Bhd              5.000%  06/16/10     MYR     0.55
Greatpac Holdings              2.000%  12/11/08     MYR     0.26
Gula Perak Bhd                 6.000%  04/23/08     MYR     0.44
Hong Leong Industries Bhd      4.000%  06/28/07     MYR     0.82
Huat Lai Resources Bhd         5.000%  03/28/10     MYR     0.46
I-Berhad                       5.000%  04/30/07     MYR     0.62
Insas Bhd                      8.000%  04/19/09     MYR     0.71
Kamdar Group Bhd               3.000%  11/09/09     MYR     0.35
Kosmo Technology Industrial    2.000%  06/23/08     MYR     0.53
Kretam Holdings Bhd            1.000%  08/10/10     MYR     0.60
Kumpulan Jetson                5.000%  11/27/12     MYR     0.45
LBS Bina Group Bhd             4.000%  12/31/07     MYR     0.49
LBS Bina Group Bhd             4.000%  12/31/08     MYR     0.49
LBS Bina Group Bhd             4.000%  12/31/09     MYR     0.49
Media Prima Bhd                2.000%  07/18/08     MYR     1.55
Mithril Bhd                    8.000%  04/05/09     MYR     0.41
Mithril Bhd                    3.000%  04/05/12     MYR     0.63
Nam Fatt Corporation Bhd       2.000%  06/24/11     MYR     0.56
Pilecon Engineering Bhd        5.000%  12/19/11     MYR     0.17
Pelikan International          3.000%  04/08/10     MYR     2.00
Pelikan International          3.000%  04/08/10     MYR     1.85
Puncak Niaga Holdings Bhd      2.500%  11/18/16     MYR     0.88
Ramunia Holdings               1.000%  12/20/07     MYR     0.91
Rashid Hussain Bhd             3.000%  12/23/12     MYR     1.80
Rashid Hussain Bhd             0.500%  12/24/12     MYR     1.80
Rhythm Consolidated Bhd        5.000%  12/17/08     MYR     0.30
Silver Bird Group Bhd          1.000%  02/15/09     MYR     0.31
Senai-Desaru Exp               3.500%  06/07/19     MYR    74.25
Senai-Desaru Exp               3.500%  12/09/19     MYR    72.87
Senai-Desaru Exp               3.500%  06/09/20     MYR    71.49
Senai-Desaru Exp               3.500%  12/09/20     MYR    70.14
Senai-Desaru Exp               3.500%  06/09/21     MYR    68.77
Southern Steel                 5.500%  07/31/08     MYR     1.36
Tenaga Nasional Bhd            3.050%  05/10/09     MYR     1.26
Tradewinds Corp.               2.000%  02/08/12     MYR     0.72
Tradewinds Plantations Bhd     3.000%  02/28/16     MYR     1.00
TRC Synergy Berhad             5.000%  01/20/12     MYR     1.36
WCT Land Bhd                   3.000%  08/02/09     MYR     1.35
Wah Seong Corp                 3.000%  05/21/12     MYR     3.12
YTL Cement Bhd                 4.000%  11/10/15     MYR     1.56


SINGAPORE
---------
Sengkang Mall                  8.000%  11/20/12     SGD     1.54
Sengkang Mall                  4.880%  11/20/12     SGD     0.85





                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Andrei Sanchez, Rousel Elaine Tumanda, Valerie
Udtuhan, Francis James Chicano, Catherine Gutib, Tara Eliza
Tecarro, Freya Natasha Fernandez, and Peter A. Chapman, Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***