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        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, May 1, 2007, Vol. 10, No. 85

                            Headlines

A U S T R A L I A

BEENUTT PTY: Will Declare Dividend for Priority Unsecured Claims
BONNIE PTY: Members' Final Meeting Set for May 15
COMMERCIAL CONCRETE: Members & Creditors to Meet on May 24
GREGMAL CORPORATION: Undergoes Voluntary Liquidation
H&S STEEL: Will Declare Dividend for Priority Creditors

IVNO PTY: Liquidator to Present Wind-Up Report
MASTER DECORE: Inability to Pay Debts Prompts Wind-Up
MITCHELL KELLY: Creditors to Hold Final Meeting on May 24
HIGH VIEW: Taps Martin John Green as Liquidator
WJR CABINETS: Members Agree to Shut Down Business


C H I N A   &   H O N G  K O N G

BR LIMITED: Shareholders Agree to Liquidate Business
BRIGHTFUTURE INVESTMENT: Inability to Pay Debts Prompts Wind-Up
CELOSMARINE LIMITED: Creditors Must Prove Debts by May 25
CERBERUS INVESTMENTS: Members to Hold Meeting on June 1
CHINA EASTERN: Expects First-Half Loss Despite Narrow Qtr. Loss

CHINA MINSHENG: 1Q Profit Up 47% on Lending Growth, Tax Breaks
CHINA SOUTHERN: Wants Nepal as Key Tourist Destination
CITIC BANK: Improved Capitalization Cues Fitch to Lift Ratings
FUHWA BANK: Fitch Holds Individual D Rating
HUA XIA: First Qtr. Profit Leaps 21% on Higher Interest Income

MAN TAT: Court to Hear Wind-Up Petition on June 6
MELO HOPE: Proofs of Debt Must Be In by May 28
MILBRIGHT LIMITED: Members to Receive Wind-Up Report on May 30
ROAD KING: S&P Chips BB+ Credit Rating to BB
ROAD KING: Moody's Lowers Corporate Family Rating to Ba2

SKY RICH: Members' Final General Meeting Set for May 29
XCAN ASIA: Yan and Haughey Quit Liquidator Posts
WINTEK TECHNOLOGY: Liquidators Quit Posts


I N D I A

AFFILIATED COMPUTER: Acquires Albion Assets for US$25.5 Million
GENERAL MOTORS: Halts Vehicle Development Programs in Two Plants
HAYES LEMMERZ: Plans US$150 Million of Senior Notes Offering
ICICI BANK: Net Profit Up 4% in Quarter Ended March 31
ICICI BANK: Board Okays Public Issue of Shares for Fresh Equity

ICICI BANK: Names Madhabi Puri-Buch as Executive Director
IFCI LTD: Citigroup & Lehman Leads Race for 26% Stake
JUNIPER NETWORKS: Stock Options Query Cues S&P to Remove Watch


I N D O N E S I A

ALCATEL-LUCENT: Partners with NEC on SEA and US Cable Network
EXCELCOMINDO PRATAMA: First Quarter Net Profit Drops 50%
GOODYEAR TIRE: March 31 Balance Sheet Upside-Down by US$90 Mil.
HILTON HOTELS: S&P's BB+ Rating Unaffected by Sale of 10 Hotels
PAKUWON JATI: Fitch Affirms Issuer Default Ratings at B

PERTAMINA: To Import LPG from Middle East, Thailand, & Australia
TELKOM INDONESIA: First Quarter Profit Drops 12% to IDR3.04-Tril
TELKOM INDONESIA: Overseas Unit to Be Fully Operational in May
TUPPERWARE BRANDS: Posts 8% Increase in First Quarter Sales


J A P A N

ALL NIPPON AIRWAYS: Earns JPY32.6 Billion in Fiscal Year 2006
EIGHTEENTH BANK: Fitch Revises Outlook to Positive from Stable
FORD MOTOR: Reports Preliminary Results for First Quarter 2007
HIGASHI-NIPPON: Fitch Revises Outlook to Positive from Stable
HOKURIKU BANK: Fitch Upgrades Individual Rating to D

JUROKU BANK: Fitch Affirms C Individual Rating
MAZDA MOTOR: Chinese Joint Venture Starts Operation
MITSUBISHI UFJ: Teams with Morley Fund on US$500 Million Venture
MOMIJI BANK: Fitch Affirms Individual Rating at D
MUSASHINO BANK: Fitch Affirms Individual Rating at C

NISHI-NIPPON CITY: Fitch Lifts Individual Rating to 'D/E'
OGAKI KYORITSU: Fitch Holds Individual Rating at 'C/D'
SUMITOMO MITSUI: Revises Consolidated Earnings Forecasts
SUMITOMO MITSUI: Launches New Medium-Term Management Plan
SUMITOMO MITSUI: Fitch Affirms Individual Rating at 'C'

SURUGA BANK: Fitch Affirms Individual Rating at 'C'
TOHO BANK: Fitch Holds Individual Rating at 'C'
YAMAGUCHI BANK: Fitch Holds Individual Rating at 'C'


K O R E A

INDUSTRIAL BANK: 1st Quarter Earnings Soar on One-Off Asset Sale
KOOKMIN BANK: To Bid for KGI Securities' Majority Stake


M A L A Y S I A

FEDERAL FURNITURE: Eyes Chinese Market Entry Via Banting Plant
MALAYSIA AIRLINES: Firefly Takes Over FAX Rural Air Services
MYCOM BERHAD: MYR60.32MM Unsecured Loan Gets MARC's BB- Rating
OLYMPIA INDUSTRIES: MARC Rates MYR137-MM Unsecured Loan at BB-


N E W  Z E A L A N D

CLEAR CHANNEL: Earns US$102.2 Million in Quarter Ended March 31


P H I L I P P I N E S

ATLAS CONSOLIDATED: Unit Infuses PHP1.2 Billion to New Facility
BANK OF THE PHIL. ISLANDS: Sells Bad Loans to Bank of America
CENTRAL AZUCARERA: Losses Trim Down 36% for Period Ended Dec. 31
CHIQUITA BRANDS: Loss Prompts Cancel of 2006 Executive Bonuses
MANILA ELECTRIC: Turnarounds With PHP532MM Net Income in 1Q 2007

UNION BANK: Concerned Over Central Bank's Liquidity Mop Up Plan
UNION BANK: Sells 90 Million New Common Shares


S I N G A P O R E

IMAGEWARE SYSTEMS: Annual Shareholders Meeting Sets on Sept. 19
SAVVIS INC: March 31 Balance Sheet Upside-Down by US$13 Million
SERENA SOFTWARE: Posts US$57-Mil. Net Loss in Fiscal Year 2007
SPECTRUM BRANDS: Fitch Holds CCC Issuer Default Rating
PETROLEO BRASILEIRO: Inks Cooperation Deal with Enap

PETROLEO BRASILEIRO: Inks Policies Promotion Deal with 2 Groups


T H A I L A N D

DAIMLERCHRYSLER AG: Chrysler Sale Threatens Marysville Deal

     - - - - - - - -

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

BEENUTT PTY: Will Declare Dividend for Priority Unsecured Claims
----------------------------------------------------------------
Beenutt Pty Ltd, which is in liquidation, will declare a
dividend for priority unsecured claims on May 10, 2007.

Priority creditors who were not able to prove their debts within
April 26, 2007, are excluded from sharing in the company's
dividend distribution.

The company's liquidator is:

         G. J. Keith
         Grant Thornton
         Rialto Towers, Level 35
         South Tower, 525 Collins Street
         Melbourne, Australia

                       About Beenutt Pty

Beenutt Pty Ltd, which is also trading as The Rathdowne Street
Food Store, operates eating-places.  The company is located in
Victoria, Australia.


BONNIE PTY: Members' Final Meeting Set for May 15
-------------------------------------------------
The members of Bonnie Pty Ltd will have their final meeting on
May 15, 2007, to hear the liquidator's report about the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Edward Angyalosy
         John Havas & Associates Pty Ltd
         45/47 Neridah Street
         Chatswood, New South Wales 2067
         Australia

                        About Bonnie Pty

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


COMMERCIAL CONCRETE: Members & Creditors to Meet on May 24
----------------------------------------------------------
The members and creditors of Commercial Concrete Constructions
Qld Pty Limited will have their final meeting on May 24, 2007,
at 10:00 a.m., to receive the liquidator's report about the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Blair Pleash
         Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia

                   About Commercial Concrete

Commercial Concrete Constructions Pty Ltd, which is also trading
as Commercial Concrete Constructions Pty Ltd, runs employment
agencies.  The company is located in New South Wales, Australia.


GREGMAL CORPORATION: Undergoes Voluntary Liquidation
----------------------------------------------------
On April 13, 2007, Gregmal Corporation Pty Limited entered
voluntary liquidation.

Jamieson Louttit was appointed as liquidator.

The Liquidator can be reached at:

         Jamieson Louttit
         Jamieson Louttit & Associates
         Suite 73, Level 15, 88 Pitt Street
         Sydney, New South Wales 2000
         Australia
         Telephone:(02) 9231 0505
         Facsimile:(02) 9231 0303

                   About Gregmal Corporation

Located in New South Wales, Australia, Gregmal Corporation Pty
Limited is a distributor of durable goods.


H&S STEEL: Will Declare Dividend for Priority Creditors
-------------------------------------------------------
H&S Steel Fabrications Pty Limited, which is in liquidation,
will declare a first and final dividend for its creditors on
June 1, 2007.

Creditors who cannot prove their debts by May 22, 2007, are
excluded from sharing in the company's dividend distribution.

The company's liquidator is:

         Scott Darren Pascoe
         SimsPartners Chartered Accountants
         Level 5, 55 Hunter Street
         Sydney, New South Wales 2000
         Australia

                       About H & S Steel

Located in New South Wales, Australia, H & S Steel Fabrications
Pty Limited is a manufacturer fabricated structural metal.


IVNO PTY: Liquidator to Present Wind-Up Report
----------------------------------------------
A final meeting will be held for the members and creditors of
Ivno Pty Ltd on May 25, 2007, at 10:30 a.m.

Richard Albarran, the company's liquidator, will give a report
about the company's wind-up proceedings and property disposal.

The Liquidator can be reached at:

         Richard Albarran
         c/o Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia

                         About Ivno Pty

Ivno Pty Ltd, which is also trading as Station Deli & Coffee
Lounge, operates eating-places.  The company is located in
Victoria, Australia.


MASTER DECORE: Inability to Pay Debts Prompts Wind-Up
-----------------------------------------------------
The members and creditors of Master Decore Painting Services Pty
Limited had their meeting on April 5, 2007, and passed a
resolution winding up the company's operations due to its
inability to pay its debts.

Richard Albarran and Geoffrey McDonald were appointed as
liquidators.

The Liquidators can be reached at:

         Richard Albarran
         Geoffrey McDonald
         c/o Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia

                      About Master Decore

Master Decore Painting Services Pty Ltd is a distributor of
paintings and paper hangings.  The company is located in New
South Wales, Australia.


MITCHELL KELLY: Creditors to Hold Final Meeting on May 24
---------------------------------------------------------
The creditors of Mitchell Kelly Consulting Group Pty Ltd will
hold their final meeting on May 24, 2007, at 1:30 a.m., to hear
a report about the company's wind-up proceedings and property
disposal.

The company's liquidator is:

         B. R. Silvia
         Ferrier Hodgson
         GPO Box 4114, Sydney
         New South Wales 2001
         Australia
         Telephone:(02) 9286 9999

                      About Mitchell Kelly

Located in New South Wales, Australia, Mitchell Kelly Consulting
Group Pty Ltd provides business services.


HIGH VIEW: Taps Martin John Green as Liquidator
-----------------------------------------------
At an extraordinary general meeting held on April 11, 2007, the
members of High View Windows Pty Limited agreed to liquidate the
company's business.

Martin John Green was appointed as liquidator at the creditors'
meeting held later that day.

The Liquidator can be reached at:

         Martin J. Green
         GHK Green Krejci
         Level 13, 1 Castlereagh Street
         Sydney, New South Wales 2000
         Australia

                         About High View

High View Windows Pty Limited is a distributor of lumber,
plywood, millwork, and wood panels.  The company is located in
New South Wales, Australia.


WJR CABINETS: Members Agree to Shut Down Business
-------------------------------------------------
At an extraordinary general meeting held on April 11, 2007, the
members of WJR Cabinets Pty Ltd agreed to shut down the
company's business.

Richard John Cauchi and Peter Gountzos of CJL Partners were
appointed as liquidators at the creditors' meeting held later
that day.

The Liquidators can be reached at:

         Richard John Cauchi
         Peter Gountzos         
         CJL Partners
         Level 3, 180 Flinders Lane
         Melbourne, Victoria 3000
         Australia
         Telephone:(03) 9639 4779
         Facsimile:(03) 9639 4773

                       About WJR Cabinets

WJR Cabinets Pty Ltd is a distributor of wood kitchen cabinets.  
The company is located in Victoria, Australia.


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

BR LIMITED: Shareholders Agree to Liquidate Business
----------------------------------------------------
On April 18, 2007, the shareholders of BR Limited agreed to
liquidate the company's business.

Creditors are required to file their proofs of debt by
May 18, 2007, to be included in the company's dividend
distribution.

The company's liquidators are:

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


BRIGHTFUTURE INVESTMENT: Inability to Pay Debts Prompts Wind-Up
---------------------------------------------------------------
On April 20, 2007, the sole shareholder of Brightfuture
Investment Limited passed a resolution winding up the company's
operations due to its inability to pay its debts.

Cosimo Borrelli and G Jacqueline Fangonil Walsh were appointed
as liquidators.

The Liquidators can be reached at:

         Cosimo Borrelli
         G Jacqueline Fangonil Walsh
         Borrelli Walsh Limited of 1401
         Level 14, Tower 1
         Admiralty Centre, 18 Harcourt Road
         Hong Kong


CELOSMARINE LIMITED: Creditors Must Prove Debts by May 25
---------------------------------------------------------
The creditors of Celosmarine Limited are required to file their
proofs of debt by May 25, 2007, to be included in the company's
dividend distribution.

The company's liquidator is:

         David Hague
         22nd Floor, Prince's Building
         Hong Kong


CERBERUS INVESTMENTS: Members to Hold Meeting on June 1
-------------------------------------------------------
The members of Cerberus Investments Limited will have their
final general meeting on June 1, 2007, at 10:00 a.m.

Andrew David Ross and Bruno Arboit, the company's liquidators,
will present the company's wind-up report and property disposal
during the meeting.

The company's Liquidators can be reached at:

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


CHINA EASTERN: Expects First-Half Loss Despite Narrow Qtr. Loss
---------------------------------------------------------------
China Eastern Airlines Corp Ltd cut its net loss for the first
quarter to CNY510.86 million from CNY955.12 million a year
earlier due to higher passenger traffic, Forbes says, citing the
airline's statement.  The carrier, however, said it still
expects to incur losses for the first half of the year.

According to the company's statement, it carried 8.588 million
passengers in the three months to March, up 7.15% year-on-year,
and 200,130 tons of cargo, down 0.865.

China Eastern's core revenue, computed using Chinese accounting
standards, jumped to CNY9.25 billion for the three-month period
from CNY7.77 billion a year earlier.

The airline's assets were valued at CNY61.29 billion at the end
of March, compared to CNY60.14 billion at end-2006.

                          *     *     *

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal  
activity is operation of domestic and international commercial
air transportation.  The Group also is involved in the common
aircraft industry. Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training. The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly.  Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.

On April 28, 2006, Fitch Ratings downgraded China Eastern's
Foreign Currency and Local Currency Issuer Default Ratings to B+
from BB-.  The outlook on the IDRs is stable.


CHINA MINSHENG: 1Q Profit Up 47% on Lending Growth, Tax Breaks
--------------------------------------------------------------
China Minsheng Banking Corp.'s first-quarter net profit rose 47%
from a year earlier, reflecting growth in lending and a lower
tax burden, the Wall Street Journal reports.

According to the report, the bank's net profit rose to
CNY1.11 billion (US$143.7 million) from CNY753.77 million a year
earlier, while its first-quarter net interest income rose 40% to
CNY4.55 billion from CNY3.26 billion.

The inclusion of more deductible items in the calculation of its
income tax, which has been approved the regulators, helped to
boost its net profit, WSJ relates, citing the bank's statement.

Meanwhile, Minsheng's total outstanding deposits declined
slightly to CNY581.2 billion at the end of March, compared with
CNY583.3 billion at the end of last year.  Total outstanding
loans rose to CNY474.37 billion from CNY447.4 billion as of the
end of 2006, the report notes.

In addition, the bank's nonperforming loans totaled
CNY5.74 billion at the end of March, and the nonperforming loan
ratio was 1.21% at the time, the bank's statement said.  The
Wall Street recounts that Minsheng earlier said that its
nonperforming loan ratio was 1.23% at the end of 2006.

The figures, according to Rose Yu and Sun Yan, both writing for
the Journal, were calculated using the Chinese accounting
standard.

                          *     *     *

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: Wants Nepal as Key Tourist Destination
------------------------------------------------------
China Southern Airlines is focusing at promoting Nepal as an
attractive tourist destination among outbound Chinese travelers,
nearly three months after it started its operation, People Daily
relates, citing a Xinhua News report.

Vincent Zhen, general manager of the airline's Nepal Office told
Xinhua that, "[a]lthough we are still a starter in the Nepali
market, the initial three months have proved that we could
market Nepal as an attractive destination among the Chinese
tourists."

As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 8, 2007, China Southern Airlines began its operations on
the Guangzhou-Kathmandu-Guangzhou route with a maiden flight on
Jan. 4, 2007, flying the route twice-a-week on Mondays and
Fridays.

"Over 1,100 Chinese passengers flew by China Southern on
Guangzhou-Kathmandu route over the past three months.  The trend
is encouraging, which is a clear testimony that there still lies
a huge potential to be tapped," Mr. Zhen said, adding "Keeping
the growing trend in mind, CSA is ready to increase frequency to
four flights a week or even daily."

                          *     *     *

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 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 in 2004.


CITIC BANK: Improved Capitalization Cues Fitch to Lift Ratings
--------------------------------------------------------------
Fitch Ratings upgraded the Individual and Support ratings of
China CITIC Bank, reflecting:

    * improved capitalization following the bank's initial
      public offering,

    * the strengthened ability of the government to support
      domestic banks, and

    * CNCB's historically close relationship with the central
      government.

The upgrades to the ratings are as follows:

    -- Individual rating upgraded to 'D' from 'D/E'

    -- Support rating upgraded to '2' from '3'

The upgrade of CNCB's Individual rating reflects the bank's
much-improved financial profile, bolstered by the recent IPO and
numerous capital injections from its parent, CITIC Group, as
well as ongoing improvements in its asset quality.  Following
the dual IPO in Hong Kong and Shanghai, CNCB's equity/assets and
Total CAR ratios are expected to exceed 9% and 17%,
respectively, making it the best capitalized bank in China.  In
addition, asset quality ratios continue to improve owing to
aggressive write-offs and provisioning in advance of the bank's
public listing, as well as the implementation of more advanced
risk management systems. At end 2006, CNCB's five-tier non-
performing loans (NPLs)/total loans ratio stood at 2.5%, down
from 6.3% in 2004, while loan loss reserve coverage has risen to
85% from 78% over the same period.  Notwithstanding these
positives, CNCB continues to face challenges on the
profitability front, registering a return on average assets of
0.6% in 2006, below peer average, due to lower non-interest
income, higher tax charges, and a larger cost base (in part
driven by a hefty annual 'fee' the bank has been paying to
parent CITIC Group - of RMB750 million in 2006).  Post IPO,
however, the fee paid to CITIC Group will cease, which should
ease some pressure on net profits.

The Support rating upgrade for CNCB reflects the substantial
improvement in the central government's ability to provide
support for domestic financial institutions, as well as CNCB's
close affiliation with the central government.  CNCB's majority
shareholder is CITIC Group, which is 100% owned by China's
Ministry of Finance, also a key commercial conglomerate under
China's State Council, or cabinet. Additionally, the agency
notes that the introduction of BBVA as a strategic shareholder,
currently holding a 4.8% stake with an option to increase this
to 9.9% in 2008, could also serve as a potential source of
future support.


FUHWA BANK: Fitch Holds Individual D Rating
-------------------------------------------
Fitch Ratings upgraded the ratings of Fuhwa Bank as:

    * National Long-term Rating upgraded to A+(twn) from A-
     (twn);  

    * National Short-term Rating upgraded to F1(twn) from
      F2(twn); and

    * Support Rating upgraded to 2 from 3.  

The agency also affirmed Fuhwa's:

    * Individual rating at D.

The Outlook for all the ratings remains Stable.

The upgrade of Fuhwa's National ratings and Support rating
reflect the stronger support by its sole parent, Fuhwa Financial
Holding Co., following its inclusion of Yuanta Core Pacific
Securities Co. (Yuanta) effective from April 2, 2007.  Fuhwa's
Individual Rating considers its small size, weak profitability
and adequate capitalisation.

Yuanta is the largest brokerage firm in Taiwan and has a
reasonably strong credit profile, backed by its constant
profitability, and strong liquidity and capitalisation.  The
merger with Yuanta substantially strengthens FFH's securities
franchise and capitalization.  The holding company's sum-of-
parts capital adequacy ratio (eligible capital to regulatory
required capital), by Fitch's estimates, would increase by 42%
to around 150%, with a consolidated equity base of about TWD100
billion based on 2006 year end figures.  FFH plans to remove
excess capital from its securities arm, namely Yuanta, after the
merger and will use the funds to enhance Fuhwa's capitalisation.

Fuhwa suffered a big loss in 2006 as a result of the sizeable
credit costs amidst the unsecured consumer lending debacle.  
Fitch considers that the potential credit costs from the
remaining unsecured consumer credit portfolio would still be a
constraining factor for Fuhwa's earnings performance in 2007.  
The bank's core capital decreased significantly after
recognizing the loss as its Tier 1 ratio dropped to 5.4% at end-
2006 from 7.5% at end-2005.  Nonetheless, through the issuance
of subordinated debt, its total capital adequacy ratio remained
at an adequate 9.2% at end-2006.

Fuhwa's ratings have a Stable Outlook in view of the sustainable
capital support from FFH.  Any sharp business expansion or
mergers and acquisitions resulting in weaker support would place
downward pressure on its ratings.

Fuhwa was set up in 1992 and became a wholly owned subsidiary of
FFH in 2002. It has a 1.3% market share by deposits, with 70
branches in operation at end-2006.


HUA XIA: First Qtr. Profit Leaps 21% on Higher Interest Income
--------------------------------------------------------------
Hua Xia Bank Co.'s first-quarter net profit rose 21% from the
same period last year, under Chinese accounting standards, on
higher interest income, Market Watch reports citing the bank's
statement.

According to Market Watch, Hua Xia's net profit for the three
months ended March 31 rose to CNY455.37 million from
CNY375.24 million a year earlier.

Huaq Xia's first-quarter net interest income rose to
CNY2.31 billion from CNY1.69 billion in the first quarter last
year.

                          *     *     *

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

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

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

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


MAN TAT: Court to Hear Wind-Up Petition on June 6
-------------------------------------------------
On March 29, 2007, BII Finance Company Limited filed a petition
to wind up the operations of Man Tat Hong Investment Limited.

The petition will be heard before the High Court of Hong Kong on
June 6, 2007, at 9:30 a.m.

BII's solicitors are:

         To, Lam & Co.
         Units 1503B-1504, 15th Floor
         Wing On House, 71 Des Voeux Road
         Central, Hong Kong


MELO HOPE: Proofs of Debt Must Be In by May 28
----------------------------------------------
Melo Hope Limited is receiving proofs of debt until May 28,
2007.

Creditors who cannot prove their debts by the deadline will be
excluded from sharing in the company's dividend distribution.

The company's liquidators are:

         Natalia Seng Sze Ka Mee
         Cynthia Wong Tak Yee
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


MILBRIGHT LIMITED: Members to Receive Wind-Up Report on May 30
--------------------------------------------------------------
The members of Milbright Limited will have their final meeting
on May 30, 2007, at 10:00 a.m., to receive a report about the
company's wind-up proceedings and property disposal.

The meeting will be held on Unit A, 26th Floor, Block 2, Elegant
Terrace at 36 Conduit Road, Hong Kong.

Lau Chi Wai is the company's liquidator.


ROAD KING: S&P Chips BB+ Credit Rating to BB
--------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Road King Infrastructure Ltd. to BB from BB+.  The
rating was also removed from CreditWatch, where it had been
placed with negative implications on Jan. 26, 2007, following
RKI's announcement that it planned to increase its stake in a
Chinese property developer, Sunco Binhai Land Ltd., (Sunco A) to
90% and the possible acquisition of 100% of Sunco Real Estate
Investment Ltd. (Sunco B).  The outlook is stable.
     
"We've lowered the rating on RKI rating by one notch to reflect
its higher exposure to China's competitive real-estate
development sector, its limited track record in property
development, moderate-to-aggressive financial profile, and the
high execution risk in its property development activities,"
said Standard & Poor's credit analyst Judy Kwok-Cheung.  These
weaknesses are balanced by the company's strong growth
prospects, high asset portfolio diversification, and predictable
cash flow from its mature toll-road operations.
     
RKI's increasing exposure to China's cyclical and competitive
real estate development sector is a major constraint on the
rating. Cash flow volatility has risen since property
development became an increasingly significant part of its
operations in 2004; before that, RKI was predominately a toll-
road operator.  As a result, the company's financial profile
risk should remain moderate to aggressive over the short term.
Discretionary cash flow is likely to be negative in 2007, mainly
as a result of planned land acquisitions and the cyclical
investment nature of property developments.
     
RKI's higher business profile risk is balanced by a high level
of asset portfolio diversification, which is a major rating
strength.  Although it operates across eight provinces, some of
its toll road and properties projects are in the same areas.  
The company therefore enjoys diversification benefits and
synergistic relationships with government authorities, and has a
good understanding of local market fundamentals.
     
Despite the expected marginal reduction in cash distribution
from toll-road projects, the more established operating track
record and maturity of its roads/expressways add to the
stability of cash flows.  In fiscal 2006, RKI's toll-road
projects accounted for Hong Kong dollar HK$885 million
(US$113 million) of its cash (28% of total debt at end-2006).


ROAD KING: Moody's Lowers Corporate Family Rating to Ba2
--------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Road King Infrastructure Ltd (Road King) to Ba2 from
Ba1.  Moody's has also downgraded the senior unsecured rating on
Road King Infrastructure Finance (2004) Ltd's bonds to Ba2 from
Ba1.

The outlook for the ratings is negative.  This concludes Moody's
review initiated on Jan 26, 2007.

At the same time, Moody's has assigned a Ba2 rating on the
proposed 7-year US$200 million fixed-rate senior unsecured
bonds, and the proposed 5-year US$100 million floating-rate
senior unsecured bonds, to be issued by Road King Infrastructure
Finance (2007) Ltd.  The outlook for the ratings is negative.

"The rating action reflects the increase in Road King's business
and financial risks as a result of the company's continued debt-
funded investments in China's property development sector," says
Renee Lam, a Moody's Vice President/Senior Analyst and lead
analyst for Road King.

"While Road King still enjoys stable recurring cash flow
generated from its diversified portfolio of toll road projects
across China, the Ba2 rating better reflects its heightened
financial and operational risks, as property development is
significantly more cyclical than toll road operations," says Mr.
Lam.  "Besides, Road King's ability to manage a property
operation at such an expanded scale is untested."

In addition to the initial cash outlays for its acquisition of
Sunco, there will be a potential need for further funding of
construction costs prior to recouping cash flows from project
launches, resulting in pressure on the company's level of
financial leverage.  That said, Moody's recognizes the Sunco
acquisition would significantly enhance the size and
geographical diversity of Road King's land bank.

After completing the transaction, Road King's property business
would account for 60-80% of its operating cash flow in the next
three years and over 60% of its consolidated assets.  Moody's
had previously stated downward rating pressure could emerge if
the property business accounted for over 60-70% of total cash
flow and over 50% of assets.

Furthermore, Moody's now considers Road King's overall credit
profile as more comparable to other property development
companies.  However, when compared with Ba2-rated China property
developers, such as Hopson Development Holdings Ltd (Hopson) and
Greentown China Holdings Ltd (Greentown), it has a shorter track
record in managing a sizable property portfolio.

In addition, a number of its property projects are in cities
less affluent than those of Hopson and Greentown, and its
overall portfolio quality is more consistent with a low-Ba
/high-B profile.  Offsetting these risks is the very stable
recurring cash flow generated from its diversified toll road
portfolio, and its long operating track record in managing such
projects.  Cash generated from toll roads is expected to cover
1-2x of total interest costs over the next three years, thereby
supporting the Ba2 rating.

The negative outlook reflects Moody's concern over the
substantial execution risks that Road King faces in relation to
its recent property acquisitions.  In particular, its ability to
simultaneously manage multiple project constructions and
launches will be instrumental to its maintenance of its healthy
cash flow and liquidity positions.  The negative outlook also
reflects uncertainties over the magnitude of liabilities that
Road King could incur in relation to its Sunco acquisition and
to funding of projected large construction costs.

The rating outlook could stabilize if:

    1) the company establishes a longer track record for
       managing larger scale property development projects;

    2) achieves property sales, as planned, to partly alleviate
       ongoing construction funding needs; and

    3) adjusted leverage stabilizes at 50-55%.  Maintenance of
       appropriate back-up liquidity would also be important
       factor for a stable outlook.

Downward rating pressure would emerge if Road King takes on
further sizeable property or land bank acquisitions, such that
adjusted debt to capital rises to 55%-60% and operating cash
flow (OCF)/interest falls below 3x.  A deterioration in the
performance and hence cash flow generation capacity of its toll
road business, with cash generated from toll roads to total
interest falling below 1x, would also be negative for the
rating.

Established in 1994, Road King is a Hong Kong-listed company
with investments in toll roads and property development projects
in China. As of Dec 2006, the company had toll road investments
of around HK$6 billion and mileage of approximately 1,000
kilometers spread throughout eight provinces in China. The
company also had an attributable land bank of 2.9 million sq m
across two provinces at end-Dec 2006.


SKY RICH: Members' Final General Meeting Set for May 29
-------------------------------------------------------
Sky Rich Property Limited will hold a final general meeting for
its members on May 29, 2007, at 3:00 p.m.

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

The meeting will be held in Room M207-8, Haleson Building at 1
Jubilee Street in Central, Hong Kong.

Wong Tak Chiu is the company's liquidator.


XCAN ASIA: Yan and Haughey Quit Liquidator Posts
------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey ceased to act as
liquidators of XCAN Asia Limited on April 27, 2007.

The former Liquidators can be reached at:

         Lai Kar Yan (Derek)
         Darach E. Haughey
         35th Floor, One Pacific Place
         88 Queensway, Hong Kong


WINTEK TECHNOLOGY: Liquidators Quit Posts
-----------------------------------------
On April 17, 2007, Lai Kar Yan (Derek) and Darach E. Haughey
quit as the liquidators of Wintek Technology H.K. Limited.

The former Liquidators can be reached at:

         Lai Kar Yan (Derek)
         Darach E. Haughey
         35th Floor, One Pacific Place
         88 Queensway
         Hong Kong


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


AFFILIATED COMPUTER: Acquires Albion Assets for US$25.5 Million
---------------------------------------------------------------
Affiliated Computer Services, Inc., has completed acquisition of
certain assets of Albion, Inc., for US$25.5 million, subject to
certain adjustments.  The purchase was funded through a
combination of cash and borrowings under Affiliated Computer's
existing credit facility.  The trailing 12-month revenue of the
acquired assets was approximately US$25 million.

The acquisition enables Affiliated Computer to address key HHS
challenges facing State and Local government clients, including:

   * expensive legacy systems;
   * a need for cost effectiveness; and
   * a client-centered approach to service delivery.

The acquired proprietary @Vantage software addresses these
clients' challenges while meeting Federal financial support
requirements for a commercial, off-the-shelf or COTS solution.

"This capability is emerging as a standard for federal financial
support among health and human services agencies," said Tom
Burlin, Executive Vice President and Chief Operating Officer of
Affiliated Computer Services Government Solutions.  "Albion's
@Vantage solution and our extensive experience in eligibility
will provide ACS with a distinct advantage in the growing
eligibility services market that will translate into better
service for our clients."

The combination of Affiliated Computer's BPO service offerings
with the @Vantage solution enables Affiliated Computer to offer
an end-to-end integrated eligibility offering across multiple
HHS programs, including temporary assistance for needy families,
food stamps, and Medicaid and significantly enhances Affiliated
Computer's ability to bid competitively on future state
eligibility systems contracts.

Approximately 170 employees will transition to Affiliated
Computer as part of the acquisition.

                        About Albion

Founded in 1994, Albion is headquartered in Atlanta, Georgia,
with additional operations in Massachusetts, Minnesota, New
Mexico, Tennessee, and Wyoming.  The company specializes in
integrated eligibility software solutions.  Approximately 170
employees will transition to ACS as part of the acquisition.

                About Affiliated Computer Services

Affiliated Computer Services Inc. (NYSE: ACS)
-- http://www.acs-inc.com/-- provides business process  
outsourcing and information technology solutions to world-
class commercial and government clients.  The company has more
than 58,000 employees supporting client operations in nearly 100
countries.  The company has global operations in India, Brazil,
China, Dominican Republic, Guatemala, Ireland, Philippines,
Poland, and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 3, 2007, Moody's Investors Service confirmed Affiliated
Computer Services' Ba2 corporate family rating and assigned a
stable rating outlook, following the company's conclusion of an
internal investigation into its options granting practices and
restoration to current U.S. Securities and Exchange Commission
financial reporting.

In March 2007, Fitch Ratings placed Affiliated Computer Services
Inc. on Rating Watch Negative after the proposed offer from
Darwin Deason, founder and current chairman of ACS, and Cerberus
Capital Management L.P. to acquire the company in a leveraged
buyout transaction valued at US$8.2 billion, including existing
debt.  Ratings affected were (i) Issuer Default Rating 'BB';
(ii) Senior secured revolving credit facility at 'BB'; (iii)
Senior secured term loan at 'BB'; and (iv) Senior notes at
'BB-'.


GENERAL MOTORS: Halts Vehicle Development Programs in Two Plants
----------------------------------------------------------------
General Motors Corp. suspended development activities on
vehicles at its Fairfax, Kan., and Lordstown, Ohio, plants after
the United Auto Workers union backed out of negotiations on cost
cuts at the facilities, John D. Stoll and Jeffrey McCracken of
The Wall Street Journal report.

According to The Journal, the suspended programs include the
Epsilon midsize-car program and the Delta compact-car program.  

Sharon Terlep of The Detroit News relates that the stoppage came
after the UAW ordered its local negotiating teams to stop
bargaining with the company on work rules designed to make the
factories more competitive specially with the automaker's
Japanese rivals.

"The management and union leadership at both Lordstown and
Fairfax are in discussions about improving the competitiveness
of both plants and putting both plants in a better position to
secure future products," Detroit News cited GM spokesman Dan
Flores as saying.

          CEO Takes the Challenge to Beat Toyota's Sales

In response to Toyota Motor Corp.'s disclosure early last week
that it topped GM in quarterly sales for the first time, GM
Chairman and Chief Executive Rick Wagoner vowed to "fight hard
for every sale," the Associated Press said.

AP cited Mr. Wagoner as saying that GM's business strategies
around the globe were working and would help the auto
manufacturer succeed.

"We still have the majority of the year in front of us, and we
will fight hard for every sale -- all the while staying focused
on our long-term goals as a global, growing company," Mr.
Wagoner said in an email obtained by AP.

Toyota said it sold 2.35 million vehicles world-wide in the
first quarter of 2007, AP said, citing preliminary figures.

Early this month, GM said in a press statement that for the
first quarter of 2007, the company delivered 909,094 vehicles, a
decline of 5.6%, driven by reductions of almost 60,000 daily
rental vehicle sales.  GM's retail sales for the first quarter
of 2007 were up 0.5%.  The reductions in fleet sales have
resulted in a significant improvement in the retail/fleet mix,
the company explained.

In addition, GM Latin America, Africa and Middle East region set
a new first quarter sales record in 2007, selling over 269,000
vehicles, up approximately 39,000 units over the same period
last year.  GM said its quarterly market share in the region
increased 0.2% to 16.3%.

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

                            *    *    *

Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed US$1.5 billion senior
term loan facility, expiring 2013, with a recovery rating of
'1'.  The 'B+' rating was placed on Creditwatch with negative
implications, consistent with the other issue ratings of GM,
excluding recovery ratings.

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


HAYES LEMMERZ: Plans US$150 Million of Senior Notes Offering
------------------------------------------------------------
Hayes Lemmerz International Inc. plans to offer approximately
US$150 million, or the equivalent amount denominated in euros,
of senior unsecured notes.  The notes are expected to be issued
by a European subsidiary.  The issuance of the notes is subject
to market and other customary conditions.

The notes will be offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities
Act of 1933, as amended, and outside the United States pursuant
to Regulation S under the Securities Act.  The notes have not
been and will not be registered under the Securities Act and may
not be offered or sold in the United States without registration
or an applicable exemption from the registration requirements.

Additionally, Hayes Lemmerz has launched the syndication of the
new senior secured credit facilities in an amount of up to
US$495 million.

The proceeds of the new credit facilities will be used to
refinance the company's obligations under its Amended and
Restated Credit Agreement dated April 11, 2005.  The refinancing
of the Amended and Restated Credit Agreement and the placement
of a portion of the company's debt outside the United States are
conditions to the obligation of Deutsche Bank Securities Inc.
and SPCP Group LLC, an affiliate of Silver Point Capital L.P.,
to backstop the Rights Offering.  

Additional proceeds will be used to replace existing letters of
credit and to provide for working capital and other general
corporate purposes, and to pay the fees and expenses associated
with the new credit facilities.
    
Bank meetings are scheduled Wednesday, May 2, 2007, in
London, England and Thursday, May 3, 2007, in New York, NY.
    
Citigroup Global Markets Inc. and Deutsche Bank AG, New
York Branch and Deutsche Bank Securities Inc. will act as joint
arrangers and joint book-runners for the syndication of
the new credit facilities.

            About Hayes Lemmerz International Inc.

Hayes Lemmerz International Inc. (Nasdaq: HAYZ) --
http://www.hayes-lemmerz.com/-- is a global supplier of    
automotive and commercial highway wheels, brakes and powertrain
components.  The company has 30 facilities and approximately
8,500 employees worldwide.

                          *     *     *

In March 2007, Standard & Poor's Ratings Services placed its 'B-
' corporate credit rating and related issue ratings on Hayes
Lemmerz International Inc. on CreditWatch with positive
implications, after the company's disclosure that it plans to
repurchase its senior unsecured debt with proceeds from an
equity rights offering.  Hayes' recovery ratings were not placed
on CreditWatch.


ICICI BANK: Net Profit Up 4% in Quarter Ended March 31
------------------------------------------------------
ICICI Bank Ltd's net profit for the quarter ended March 31,
2007, grew 4% to INR8.25 billion from the INR7.9 billion booked
in the corresponding quarter last year.

According to Reuters, the net profit in the latest quarter
lagged behind forecasts.  Reuters said that based on a poll it
conducted, analysts expected a 26% increase in the bank's net
profit to INR9.98 billion.

Kalpana Morparia, joint managing director at ICICI Bank,
attributed the poor growth rate to soaring provisions, without
which net profits would have risen by more than 40%, Reuters
relates.

For the quarter ended March 31, 2007, the bank's provision and
contingencies total INR8.76 billion, a 47% jump from
INR5.97 billion in the same period in 2006.

There was a one-time provision of INR3.10 billion due to
regulatory changes, Mr. Morparia told Reuters.

The bank's total income increased from INR55.07 billion for the
quarter ended March 31, 2006, to INR84.95 billion in the March
2007 quarter.

A copy of the bank's financial results for the quarter ended
March 31, 2007, is available for free at:

               http://ResearchArchives.com/t/s?1e23

ICICI Bank's audited financial results for the year ended
March 31, 2007, shows growth in net profit of 22% to INR31.10
billion from the INR25.40 billion booked in the year ended March
31, 2006.  The bank's total income increased from INR184.87
billion for the year ended March 31, 2006, to INR289.23 billion
for the year ended March 31, 2007.

The bank's audited financial results for the year ended March
31, 2007, is available for free at:

    http://ResearchArchives.com/t/s?1e26

The company disclosed in a filing with the Bombay Stock Exchange
that its board of directors has recommended a dividend of
INR10.00 per equity share (100%) for the year ended March 31,
2007.  The declaration and payment of dividend is subject to
requisite approvals.  The board also recommended a dividend of
0.001%, i.e., INR100 per preference share on 350 preference
shares of the face value of INR10.00 million each for the year
ended March 31, 2007.

India-based ICICI Bank Ltd -- http://www.icicibank.com-- is a    
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services.  The bank
operates in two business segments: consumer and commercial
banking, and investment banking.  ICICI has a network of over
741 branches and over 3,300 ATMs in India.

                          *     *     *

Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.

ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.


ICICI BANK: Board Okays Public Issue of Shares for Fresh Equity
---------------------------------------------------------------
ICICI Bank Ltd's board of directors approved the bank's raising
of additional equity capital by way of a public issue of shares
in India and an issue of American Depositary Shares in the
United States, the bank disclosed on April 28, 2007.

The capital raising, which is still subject to applicable
regulations and necessary approvals, is expected to be around
INR20,000 crore (approximately US$5.0 billion).  

According to The Financial Express, the INR20,000-crore follow-
on public offer would be the largest public issue ever made in
India's corporate history.  The issue would help the bank to
increase its capital adequacy ratio substantially to more than
20% from the present level of 0.98% from 0.71%, the news agency
adds.

India Infoline News, citing analysts, says the issue would lead
to an equity dilution of about 25% for ICICI Bank hurting the
stock price since it will limit growth in earnings per share.  
The analysts believe that the bank's return on equity too will
be affected.

The bank will still need the approval of its shareholders for
the raising of capital.  The bank says it will seek the
shareholders' nod by postal ballot.

Shares of ICICI Bank tumbled yesterday after the country's
largest private sector bank announced plans to raise as much as
Rs200bn (US$5bn) through fresh issue of equity shares in the
domestic as well as international markets.

India-based ICICI Bank Ltd -- http://www.icicibank.com-- is a    
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services.  The bank
operates in two business segments: consumer and commercial
banking, and investment banking.  ICICI has a network of over
741 branches and over 3,300 ATMs in India.

                          *     *     *

Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.

ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.


ICICI BANK: Names Madhabi Puri-Buch as Executive Director
---------------------------------------------------------
ICICI Bank Limited's board of directors has appointed Madhabi
Puri-Buch as executive director, subject to the approval of the
Reserve Bank of India, and of the shareholders at the next
general meeting.

The board promoted Ms. Puri-Buch from Group Corporate Brand
Officer and Head - Operations to the executive-director post on
its April 28 meeting.  The appointment is effective June 1,
2007.

Ms. Puri-Buch has been with the ICICI group since 1997, and had
earlier worked with erstwhile ICICI Limited from 1989 to 1992,
ICICI Bank relates.  She will be responsible for the Internal
Control Environment function of the bank globally, including
operations, risk management, and legal, as well as the corporate
brand.

India-based ICICI Bank Ltd -- http://www.icicibank.com-- is a    
diversified financial company that provides a range of banking
and financial services to customers, including retail banking,
project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment
banking, broking, and treasury products and services.  The bank
operates in two business segments: consumer and commercial
banking, and investment banking.  ICICI has a network of over
741 branches and over 3,300 ATMs in India.

                          *     *     *

Moody's Investors Service, on Apr. 24, 2007, said that ICICI
Bank 's Foreign Currency Deposit Rating is unchanged at Ba2.

ICICI Bank carries Fitch Ratings' 'C' Individual Rating and 'BB'
Subordinated Debt Rating.


IFCI LTD: Citigroup & Lehman Leads Race for 26% Stake
-----------------------------------------------------
Citigroup and Lehman Brothers are leading the race to acquire a
26% strategic stake in IFCI Ltd., Reuters relates citing a
report by the Hindustan Times.

As reported in the Troubled Company Reporter - Asia Pacific on
IFCI Limited wants to raise as much as US$250 million by selling
up to 26% fresh equity to a foreign investor and has tapped
Ernst & Young to help the company look for a strategic investor.  

The report, citing an unnamed baker directly involved in the
deal, said Citigroup and Lehman's offers are more attractive
than the others.

Other foreign financial institutions that reportedly showed
interest in the 26% stake are Barclays, Morgan Stanley and ABN
Amro Bank.

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

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
April 3, 2007, Credit Analysis & Research Ltd. retained a CARE D
rating to IFCI's Long & Medium Term Debt aggregating INR91.36
crore.  The amount represents the outstanding non-restructured
amount under the Bonds series, which have been rated by CARE.

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


JUNIPER NETWORKS: Stock Options Query Cues S&P to Remove Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Juniper Networks Inc. and removed the ratings from CreditWatch
where were placed with negative implications on May 22, 2006,
following an announcement that Juniper received a request for
information from the office of the U.S. Attorney for the Eastern
District of New York relating to its granting of stock options.
      
"The action reflects a conclusion of the investigation, a
financial restatement, and changed procedures for granting stock
options; the outlook is now positive," said Standard & Poor's
credit analyst Bruce Hyman.
     
Following the Federal announcement, related inquiries were
undertaken by the SEC and NASDAQ; the board's audit committee
reviewed the company's stock-option granting process; and
several shareholder lawsuits were filed.  Subsequently, numerous
instances were identified in which option grant dates were
chosen to give favorable prices.  Procedures were put into
effect to improve the stock-option granting process.  On
March 9, 2007, the company filed its December 2006 form 10-K,
bringing it current with SEC filing requirements; on March 15,
2007, the company came in compliance with all NASDAQ marketplace
rules.  S&P now believe the income-tax consequences, and the
outcome of the ongoing lawsuits, while potentially material, are
unlikely to affect the rating over the near to intermediate
term, given Juniper's current liquidity.
  
The ratings continue to reflect the challenges of rapid growth
in a highly competitive, rapidly evolving market, expectations
of an ongoing acquisitive business posture, and the potential
for continued industry volatility, somewhat offset by the
company's broadening business base, continued good market
position in the networking equipment and information security
markets, and a moderate financial profile.

                     About Juniper Networks

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


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

ALCATEL-LUCENT: Partners with NEC on SEA and US Cable Network
-------------------------------------------------------------
Alcatel-Lucent and NEC Corporation will jointly deploy the Asia
America Gateway, the first direct Terabit submarine cable
network between Southeast Asia and the United States.

Spanning over 20,000 km, AAG will link Malaysia to the U.S. via
Singapore, Thailand, Brunei, Vietnam, Hong Kong, the
Philippines, Guam, Hawaii and the West coast of the U.S.  Worth
approximately US$500 million, the contract will deliver a cable
network spanning almost half the length of the equator.

The turnkey contract was signed with a consortium formed by 10
parties including the Government of Brunei, AT&T (USA), Bharti
(India), CAT (Thailand), PLDT (Philippines), PT Telkom
(Indonesia), Telekom Malaysia (Malaysia), Telstra (Australia),
StarHub (Singapore) and VNPT (Vietnam).  Alcatel-Lucent and NEC
will design, manufacture, install, integrate and commission the
full network on a turnkey basis.  The project is scheduled to be
completed by late 2008.

The new cable network is expected to meet the forecasted
explosive growth in bandwidth requirements for new and
revolutionary broadband applications such as IP, video, data,
and other multimedia services.  In addition to providing full
network diversity from the conventional cable routes, which are
normally connected via North Asia, the AAG will provide a
seamless direct link between the U.S. and other Asian countries
via one single cable.  Furthermore, it will provide connectivity
and the ability to be expanded in the future to Australia,
India, Africa, and Europe.  International communications between
the countries involved has been growing rapidly, and is expected
to benefit greatly from the enhanced connectivity offered by the
new cable network.

"This award further increases the significant track-record we
have developed since the beginning of the year and confirms our
leadership in the submarine cable industry.  AAG will help
operators leverage a state-of-the art submarine infrastructure
for the end-users benefit," stated Jean Godeluck, President of
Alcatel-Lucent's submarine network activity.  "We are confident
that this new project, rolled out in association with NEC, will
further enable voice and data communications, which are vital to
support social and economic development."

"NEC's award of the contract for the Asia America Gateway Cable
Network confirms our leadership in submarine cable construction
and our dedication to building an unmatched network in the Asia
Pacific region.  NEC is confident that our partnership with
Alcatel-Lucent brings leading technology and field-proven
expertise, empowering our customers to provide the most advanced
and reliable services to the end users," said Masamichi Imai,
Executive General Manager of the Broadband Networks Operations
Unit at NEC Corporation.

                      About NEC Corporation

NEC Corporation -- http://www.nec.com/-- provides Internet,  
broadband network and enterprise business solutions dedicated to
meeting the specialized needs of its diverse and global base of
customers.  NEC delivers tailored solutions in the key fields of
computer, networking and electron devices, by integrating its
technical strengths in IT and Networks, and by providing
advanced semiconductor solutions through NEC Electronics
Corporation.  The NEC Group employs more than 150,000 people
worldwide.

               About NEC's Submarine Network Systems

NEC Corporation is a leading supplier of the world's most
advanced submarine network systems - platforms vital to the
realization of next generation networks.  With over 30 years of
experience in supplying total submarine cable solutions to
customers in Japan and abroad, NEC brings a wealth of
technologies, know-how and resources to each new project.  In
particular, NEC has managed the construction of nearly all of
the cable systems available today in Asia and the Asia Pacific
region.

                     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 Ratings
Services' BB rating.  Its Short-Term Corporate Credit rating
stands at B.

Moody's Investor Services, 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 Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.


EXCELCOMINDO PRATAMA: First Quarter Net Profit Drops 50%
--------------------------------------------------------
PT Excelcomindo Pratama Tbk's first quarter profit dropped 50%
to IDR175.82 billion from IDR354.61 billion a year ago, after
booking small foreign exchange gains, Reuters reports.

According to the report, revenue climbed 41.4% to
IDR1.37 trillion with operating income up 48.5% to
IDR347.9 billion.

The company's earnings before interest, tax, depreciation, and
amortization were up 33% to IDR759 billion, but EBITDA margins
slipped to 43% as of March from 44% in the year ago-period, the
report notes.

The report adds that Excelcom's subscribers up 23% year-on-year
to 10.1 million users and by the end of 2007 Excelcom aims to
have 14 million users.

                   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
all 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 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.


GOODYEAR TIRE: March 31 Balance Sheet Upside-Down by US$90 Mil.
---------------------------------------------------------------
The Goodyear Tire & Rubber Company's balance sheet at
March 31, 2007, showed US$15.86 billion in total assets and
US$15.95 billion in total liabilities, resulting in a US$90
million total stockholders' deficit.

The Goodyear Tire & Rubber Company reported a net loss of
US$174 million for the first quarter ended March 31, 2007,
compared with net income of US$74 million for the same period of
fiscal 2006.
This net loss includes a loss from discontinued operations of
US$64 million related to classifying the Engineered Products
business as "held for sale".  This compares to income from
discontinued operations of US$28 million in the fiscal 2006
period.

The company reported first quarter sales from continuing
operations of US$4.50 billion, up 1 % from first quarter sales
from continuing operations in fiscal 2006 of US$4.46 billion
despite the impact of a fourth quarter strike last year in North
America.

The improvement in global sales was driven by Goodyear's three
emerging market tire businesses, which were up 11 % from last
year.  Each of these businesses had record first quarter sales.  
The sales improvement was also supported by a faster-than-
expected recovery from the United Steelworkers strike in North
America.

This growth offset a 10 % decline in sales for Goodyear's North
American Tire business, which was impacted by the strike and an
exit from certain segments of the private label tire business,
which together reduced sales by about US$200 million.

"Our first quarter represented a strong start to the year, with
revenue per tire up 8 %.  This reflected strong pricing and
product mix, which exceeded raw material cost, increases in the
quarter.  Our focus on speed and the pace of change at Goodyear
is having a meaningful impact," said Robert J. Keegan, chairman
and chief executive officer.

"Our recovery from the strike is going much better than
expected. We restored production faster than anticipated and
weaker consumer OE demand enabled us to sell more high-value-
added tires into the replacement market," he said.

As a result of improved profitability from increased replacement
market sales, the company has reduced its estimated impact of
the USW strike on North American Tire to between US$100 million
and US$120 million for the year.  The previous estimate was
US$200 million to US$230 million.

Including an estimated US$34 million impact from the strike,
Goodyear's first quarter segment operating income from
continuing operations was US$226 million in 2007.  This compares
to income of US$282 million last year, which included US$30
million in settlements from suppliers.

For the 2007 first quarter, Goodyear reported a loss from
continuing operations of US$110 million, compared to income from
continuing operations of US$46 million during the 2006 period.

In addition to the strike, the loss in the 2007 quarter was also
impacted by after-tax curtailment charges of US$64 million due
to salaried benefit plan changes and US$31 million for
rationalizations, including accelerated depreciation related to
previously announced plant closures.

Improved pricing and product mix of approximately US$165 million
more than offset increased raw material costs of approximately
US$120 million.

Income from continuing operations in the 2006 quarter benefited
from after-tax items including supplier settlements of
US$26 million, a pension plan change of US$13 million and a
legal settlement of US$10 million.  Negatively impacting the
quarter was an after-tax charge of US$29 million for
rationalizations, including accelerated depreciation and asset
write-offs.

                      Discontinued Operation

As a result of its agreement on March 23, 2007 to sell
substantially all of its Engineered Products business, Goodyear
now reports these results as a discontinued operation.

Sales from discontinued operations in the first quarter of 2007
totaled US$383 million, down from US$394 million the previous
year.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?1e12

                 Liquidity and Capital Resources

At March 31, 2007, the company had US$2.08 billion in cash and
cash equivalents as well as US$1.72 billion of unused
availability under its various credit agreements, compared to
US$3.86 billion and US$533 million at Dec. 31, 2006.  Cash and
cash equivalents decreased primarily due to repayments on the
amounts borrowed under the US$1.0 billion revolving portion of
the US$1.5 billion First Lien Credit Facility, the 8.5% Notes
due 2007 and the German revolving credit facility due 2010.  
Cash and cash equivalents do not include restricted cash.  

Net cash used in operating activities from continuing operations
in the first quarter of 2007 of US$393 million decreased from
US$315 million in the first quarter of 2006. The decrease was
due primarily to lower operating results offset by improved
working capital.

Net cash used in investing activities from continuing operations
was US$55 million during the first quarter of 2007, compared to
US$144 million in the first quarter of 2006.  Capital
expenditures were US$97 million and US$111 million in the first
quarter of 2007 and 2006, respectively.  The change in cash used
in investing activities was primarily the result of the 2006
acquisition of the remaining outstanding shares of South Pacific
Tyres Ltd.

Net cash used in financing activities from continuing operations
was US$1.31 billion in the first quarter of 2007 compared to
US$150 million in the first quarter of 2006.  The increase in
cash used was due primarily to the payments of US$873 million on
the U.S. revolving credit facility, US$300 million on the 8.5%
Notes due 2007, and approximately US$200 million repayment of
the German revolving credit facility due 2010.

             About The Goodyear Tire & Rubber Company

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
April 10, 2007, that Fitch Ratings affirmed ratings.

The Goodyear Tire & Rubber Company's Issuer Default Rating at
'B'; US$1.5 billion first-lien credit facility at 'BB/RR1';
US$1.2 billion second-lien term loan at 'BB/RR1'; US$300 million
third-lien term loan at 'B/RR4'; US$650 million third-lien
senior secured notes at 'B/RR4'; and Senior unsecured debt at
'CCC+/RR6'.

Fitch also affirmed the rating on Goodyear Dunlop Tires Europe
B.V.'s EUR505 million European secured credit facilities at
'BB/RR1'.

Fitch also revised the Rating Outlook to Positive from Stable.

Standard & Poor's Ratings Services assigned various ratings to
Goodyear Tire & Rubber Co.'s proposed bank financings.  At the
same time, S&P assigned a recovery rating to the existing US$650
million senior secured notes.  S&P will withdraw the ratings on
the existing bank facilities that are being refinanced upon
closing of the new facilities.

The corporate credit rating on Goodyear is B+/Positive/B-2.  The
ratings on the Akron, Ohio-based company reflect its aggressive
financial risk profile, characterized by low earnings in North
America, a leveraged capital structure, and significant, albeit
declining, underfunded employee benefit liabilities.  These
factors more than offset the company's business strengths,
including its position as one of the three largest global tires
manufacturers, its good geographic diversity, its strong
distribution, and its well-recognized brand name.

S&P also assigned these ratings to Goodyear Tire & Rubber Co.:
US$1.5 billion asset-backed rev. credit facility at BB with
Recovery rating of 1; and US$1.2 billion second-lien term loan
at B+ with Recovery rating of 2.

Goodyear Dunlop Tires Europe B.V.'s EUR350 million revolving
credit facility carries S&P's BB- ratings and Recovery rating of
1.  Goodyear Dunlop Tires Germany GmbH's EUR155 million
revolving credit facility is rated BB- with Recovery rating of
1.

The TCR-AP reported on March 30, 2007, that Moody's Investors
Service affirmed Goodyear Tire & Rubber Company's Corporate
Family Rating of B1 but raised the outlook to positive.

In addition, a Ba1 rating was assigned to Goodyear's new
US$1.5 billion first lien revolving credit facility and a Ba2
rating was assigned to the company's new US$1.2 billion second
lien term loan.  At the same time, a Ba1 rating was assigned to
Goodyear Dunlop Tyres Europe's new first lien credit facilities
for EUR505 million (approximately US$650 million).  The
Speculative Grade Liquidity rating of SGL-2 was also affirmed.
Amounts being refinanced are identical to current facilities,
relative priorities are unchanged, but maturity profiles have
been extended under improved terms.


HILTON HOTELS: S&P's BB+ Rating Unaffected by Sale of 10 Hotels
---------------------------------------------------------------
Standard & Poor's Ratings Services said its rating and outlook
on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by
the company's announcement that it has entered into an agreement
with Morgan Stanley Real Estate to sell up to 10 hotels for
approximately US$612 million in proceeds (net of property level
debt repayment, taxes, and transaction costs).  Upon the close
of the transactions, Hilton Hotels plans to use the net proceeds
to repay debt.

Standard & Poor's rating upgrade for Hilton Hotels in March 2007
incorporated the expectation that the company would sell a
meaningful level of additional assets over the near term, which
would likely lead to additional debt reduction.  Still, Standard
& Poor's is encouraged by the expected transaction multiple
related to today's announcement.  If the lodging transaction
market remains strong, enabling Hilton Hotels to generate
substantial proceeds from remaining asset sales, if these
proceeds are used for debt reduction, and if the lodging
environment remains strong, an outlook revision to positive
could be considered as 2007 progresses.  Any movement signaling
the potential for a higher rating will depend on Hilton Hotels's
commitment to maintaining credit measures aligned with higher
ratings over the lodging cycle.

                      About Hilton Hotels

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


PAKUWON JATI: Fitch Affirms Issuer Default Ratings at B
-------------------------------------------------------
Fitch Ratings has assigned a National rating of 'BBB-(idn)' to
Pakuwon Jati's amortising Bond I of principal amount
IDR93.46 billion as at end-2006.  Fitch has also affirmed
Pakuwon's Long-term Foreign Currency and Local Currency Issuer
Default Ratings at 'B', National Long-term rating at 'BBB-
(idn)', and senior unsecured rating at 'B' with recovery rating
of 'RR4'.  The outlook on the IDRs and National Long-term Rating
remains Stable.

Pakuwon's ratings are constrained by the project risks arising
from one major greenfield project, Superblock Gandaria, a 7.5
hectares mixed-use development to be built between 2006 and 2009
in South Jakarta, at a cost of approximately IDR1,700 billion.  
The development, targeting the middle-to-upper income groups,
comprises a shopping mall with a gross lettable area of 88,071
square metres, an office tower with a GLA of 55,592 sq m, two
condominium blocks with 688 units and a 323-room four star
hotel.  Pakuwon intends to pre-sell the office tower and
condominiums on a strata-title basis to partly finance the
development.  The agency notes that while this strategy may
alleviate some constraint on liquidity, it also exposes Pakuwon
to volatilities in the Jakarta real estate market, where there
is an apparent oversupply in the office and condominium
segments.

Some mitigants to these risks include Pakuwon's track record of
having successfully completed a similar mixed-use development in
Surabaya, its ability to phase out the construction of one of
two condominium towers and hotel, and the probable high
occupancy rates for the mall given that 42% of the GLA has
already been committed to by potential tenants.  Indonesia's
continual move to reduce interest rates may help alleviate the
oversupply situation by increasing demand for property.
Pakuwon's ratings also reflect the low interest coverage ratio
expected in 2007 and 2008 while Gandaria is being developed.
While these ratios are expected to improve with future EBITDA
contributions from Gandaria, the increasing focus on property
development, especially in the case of Gandaria condominiums and
office, could translate into increased volatility in earnings
and cashflow.

Pakuwon's ratings are supported by its position as a leading
township developer and mall operator in Surabaya. Its current
main asset is Superblock Tunjungan City, a well-established
mixed-use development in the Central Business District of
Surabaya. This asset, comprising a mall, an office building, a
hotel and condominiums contributed 95% and 98% of total revenue
and EBITDA respectively, in 2006.  Fitch notes, however, that
the 2006 revenue and EBITDA contributions from Tunjungan were
lower than projected. Nonetheless, the operating cashflow from
the mall remains healthy and should allow Pakuwon to meet its
interest expenses even if the Gandaria project is delayed due to
market conditions.

Pakuwon is also involved in property development in East
Surabaya, targeting the mid-to-high end market segments via its
280 ha share of the 500 ha Grand Pakuwon township.  Development
in the township is undertaken in phases and largely on a pre-
sold basis.  This strategy, along with Pakuwon's low land
acquisition costs, reduces the risks arising from market
volatility.  While contribution from this project is relatively
small compared to Tunjungan, Pakuwon derives some financial
flexibility from the large land bank inventory within Grand
Pakuwon, although Fitch notes that the ability to monetise land
bank is usually constrained during periods of stress.

The Stable Outlook reflects Fitch's expectation that Pakuwon
will continue to maintain healthy operating cash flows from its
commercial property business in line with its 2006 performance,
and maintain its leverage ratio at a level below 6.0x.  Weaker
than expected sales from its planned new launches, any
significant deterioration in leverage and interest coverage
ratios from projected levels or any material financial support
to related entities, may result in a negative rating action.  On
the other hand, if the Gandaria project is successfully
executed, resulting in improved financial performance as
projected, a positive rating action may be taken.

Pakuwon is a listed property company in Indonesia with a
presence in commercial property investment and development and
residential property development, primarily in Surabaya but with
plans to expand to Jakarta in the future.  Pakuwon achieved
revenue of IDR392 billion, EBITDA of IDR210bn and net income of
IDR219 billion in 2006.  The founder's family has a 50.6%
beneficial interest in Pakuwon.

                        About Pakuwon Jati

Headquartered in Surabaya, Indonesia, PT Pakuwon Jati Tbk is a
property management company.  The company operates the Tunjungan
Plaza shopping center, the Mandiri Tower office center, the
Sheraton Surabaya Hotel and Towers and the Laguna Indah housing
and industrial estate.


PERTAMINA: To Import LPG from Middle East, Thailand, & Australia
----------------------------------------------------------------
PT Pertamina (Persero) will import around 1.5 million tons of
liquefied petroleum gas from Qatar and the United Arab Emirates
in 2009 to support the government's campaign to gradually
replace highly subsidized kerosene with natural gas, the Jakarta
Post reports.

Ithocu Group, the appointed agent for the purchase, is expected
to sign the contract soon.

According to the report, the company is also in talks with the
Australian unit of BP and a Thai company to meet Indonesia's
requirement of 3.9 million tons of LPG a year by 2010.  The
company has designated 11 companies to supply gas stoves as part
of the program.

Pertamina has allocated IDR200 billion for the procurement of
4.17 million LPG stoves, which is expected to be launched next
month.

                       About PT 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.


TELKOM INDONESIA: First Quarter Profit Drops 12% to IDR3.04-Tril
----------------------------------------------------------------
PT Telekomunikasi Indonesia's first quarter profit dropped 12%
to IDR3.04 trillion from IDR3.46 trillion a year earlier as
higher costs for using rival networks offset gains in
subscribers at its mobile-phone unit, Bloomberg News reports.

According to the report, the company's earnings before interest,
depreciation, taxes and amortization, expressed as a percentage
of revenue, fell 6.6 percentage points on higher costs at the
network and interconnection division, which accounts for 20% of
the 100-year-old company's sales.

The company said that the new interconnection tariff scheme has
resulted in an increase in revenue and at the same time an
increase in expenses, which has impacted profitability, the
report points out.

                      About Telkom Indonesia

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

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.

Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.

Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit rating.


TELKOM INDONESIA: Overseas Unit to Be Fully Operational in May
--------------------------------------------------------------
PT Telekomunikasi Indonesia (Telkom)'s unit, Telkom
Internasional, projected to expand state-owned overseas
telecommunication company, will be fully operational by May
2007.

According to the report, in the initial phase of the operation
Telkom Internasional will be cooperate with other
telecommunication operators in developing a network as a support
in aiming its target.

Telkom Internasional's partnership agreement with Singapore
Telecommunications Limited was the starting point of the
company's operation, the report points out.

The Troubled Company Reporter - Asia Pacific reported on March
16, 2007, that Telkom's unit will partner Singtel in expanding
coverage of its global data communications services.

                    About Telkom Indonesia

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

As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.

Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.

Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit rating.


TUPPERWARE BRANDS: Posts 8% Increase in First Quarter Sales
-----------------------------------------------------------
Tupperware Brands Corporation reported first quarter 2007
results as:
    
First Quarter Summary

    -- Sales up 8% as reported and 5% in local currency to
       US$456.9 million

    -- Tupperware segments were up 5% in local currency

    -- Beauty segments were up 6% in local currency

    -- EPS of 32 cents

    -- EPS after adjustments of 36 cents, vs. guidance of
       27-32 cents

"We are pleased we achieved mid-single digit local currency
sales growth in both beauty segments along with a 35% increase
in our key Tupperware emerging markets," said Rick Goings,
Chairman and CEO.  "Together with the key emerging markets,
significant increases in our established Tupperware markets in
the United States, Japan, Australia and South Africa from
enhanced sales force leadership programs, products and selling
situations outweighed continued weak performance in Germany,"
Goings continued.

First Quarter Highlights

In conjunction with the appointment of Simon Hemus as President
and COO as of January 1, 2007, which resulted in a realignment
of the reporting segments, the Company now has a Beauty North
America segment composed of Fuller Mexico and BeautiControl
North America.  All other units previously reported in the
International Beauty segment are now reported as a segment
called Beauty Other.  Previously reported information has been
reclassified to reflect this change.

Tupperware Brand Segments

Both the Asia Pacific and Tupperware North America segments had
sales increases over last year as reported and in local
currency.  There were particularly strong increases in Japan,
Malaysia and the United States.  In addition, the emerging
markets of China, India, and Indonesia were up 21% in local
currency.

Sales in Europe were buoyed by continued growth in South Africa
and the key emerging markets in this segment, which were up 44%
in local currency.  This sales growth was offset by Germany
where the average active sales force continued to be below last
year.  Sales in Europe, excluding Germany, were up 10% in local
currency.

Profit increases in Asia Pacific and North America offset a
European decline, primarily from Germany, for a total increase
in local currency profit of 5% by the Tupperware segments.

Beauty Segments

Sales were up in both beauty segments primarily due to Fuller
Mexico and Central and South America. Profit in the beauty
segments was down as a result of higher manufacturing;
commission and sales force training costs in BeautiControl North
America and the timing of expenses in Fuller Mexico.

Outlook

"Continued progress this quarter evidenced by achieving the high
end of our sales expectations, indicates that we have entered a
new era whereby our having a global portfolio of direct selling
companies gives us more growth opportunities as well as makes
our business more predictable," said
Rick Goings, Chairman and CEO.

                        2007 Full Year

    --  Sales up 3-5% in local currency to US$1.85 - US$1.87
        billion, including about $46.0 million in positive
        foreign exchange

    --  EPS of US$1.69 to US$1.74 vs. 1.54 last year and
        previous guidance range of US$1.56 - US$1.61, including:

    --  US$6.2 million after tax land and insurance gains

    --  US$6.0 million after tax re-engineering expenses

    --  US$9.2 million after tax intangible asset
            amortization

    --  EPS of US$1.84 to US$1.89 vs. US$1.79 last year and
        previous guidance range of US$1.74 - US$1.79, excluding
        re-engineering costs, intangible asset amortization and
        land and insurance gains:
   --  13-15 cents positive foreign exchange

   --  About 9 cents lower interest expense at US$44 million vs.
       previous expectation of US$52 million

   --  5 cents dilution from more shares vs. no dilution assumed
       In previous guidance

   --  Unallocated costs of US$35-37 million

   --  Significantly higher effective tax rate versus 2006, in
       the low-20% range

Segment Outlook

Tupperware Asia Pacific and North America local currency sales
are expected to increase in the high-single digit percentage
range with a small increase in return on sales in Asia Pacific,
versus 16% in 2006, and a mid- single digit return on sales in
North America.

In Europe, the 2007 full-year sales outlook is for local
currency sales and profit to be about even with 2006.  Sales by
the beauty segments are expected to increase by about 7% with a
small decrease in return on sales versus 2006 in Beauty North
America and about breakeven in Beauty Other.

                    2007 Second Quarter

    --  Sales up 3-5% in local currency to US$467 - US$476
        million, including about US$15.0 million in positive
        foreign exchange

    --  EPS of 42 to 47 cents vs. 41 cents last year including:

    --  US$1.2 million after tax land gains

    --  US$1.0 million after tax re-engineering

    --  US$2.3 million after tax intangible asset amortization

    --  EPS of 45 to 50 cents vs. 49 cents last year, excluding
        re- engineering costs, intangible asset amortization and
       land gains:

    --  4-6 cents from positive foreign exchange vs. 2006

    --  1 cent dilution from increased average diluted shares
        outstanding

                   About Tupperware Brands

Tupperware Brands Corporation -- http://www.tupperware.com/--  
is a global direct seller of premium, innovative products across
multiple brands and categories through an independent sales
force of approximately 1.9 million.  Tupperware's product brands
and categories include design-centric preparation, storage and
serving solutions for the kitchen and home through theTupperware
brand and beauty and personal care products through its Avroy
Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and  
Swissgarde brands.

The company has operations in Indonesia, Argentina, Australia,
Bahamas, Brazil, China, France, Germany, Philippines, Spain, and
Sweden, among others.

The company carries Moody's Investors Service's Ba3 Corporate
Family Rating.


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

ALL NIPPON AIRWAYS: Earns JPY32.6 Billion in Fiscal Year 2006
-------------------------------------------------------------
All Nippon Airways Co., Limited released on April 27 its
financial results for the year ending March 31, 2007 along with
its financial forecast for the year ending March 31, 2008.

All Nippon's net profit grew by 22.2% year-on-year to
JPY32.6 billion, following the "strong demand for both business
and leisure travel in tandem with the performance of the
Japanese economy as whole," reveals Mineo Yamamoto, President
and CEO of ANA.

ANA's consolidated operating profit increased to
JPY92.1 billion, a difference of JPY3.3 billion from the
previous fiscal year.

The company's consolidated operating revenue rose to
JPY1,489.6 billion with an 8.8% increase from the previous
year's  JPY1,368.7 billion.

For fiscal year 2007, ANA predicts that the airline segment,
which has the highest revenue earned for FY2006, will bring in
additional revenue of roughly JPY63.0 billion.

The company predicted net profit would grow 31.4% in the current
financial year to hit JPY64 billion from the sale of its hotel
business to Morgan Stanley, ABC Money reports, citing Agence
France Press.

                           About All Nippon

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

   * Scheduled air transportation business;   

   * Nonscheduled air transportation business and business             
     utilizing aircraft;   
     
   * Business of buying, selling, leasing and maintenance of             
     aircraft and aircraft parts; and   
       
   * Aircraft transportation ground support business, including      
     passenger boarding procedures and loading of hand baggage.

                           *      *      *

As reported in the Troubled Company Reporter - Asia Pacific on
June 13, 2006, Fitch Ratings said that the credit quality gap
between Japan's top two airlines continues to widen with All
Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting
from market improvements while its rival, Japan Airlines
Corporation -- rated 'BB-'/Stable -- continues to be grounded by
internal woes.  The agency adds that going forward, the speed of
credit quality improvements and the potential for rating
upgrades would depend largely on the airlines' ability to
improve efficiency of operations to offset any further increase
in oil prices.

As reported in the Troubled Company Reporter - Asia Pacific on
May 30, 2006, Moody's Investors Service has upgraded to Ba1 from
Ba3 the senior unsecured debt ratings of All Nippon Airways Co.,
Ltd.  The rating action concludes the review initiated on March
3, 2006.  The rating outlook is stable.

As reported in the Troubled Company Reporter - Asia Pacific on
May 03, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability,
thanks to cost reductions efforts as well as a stronger
competitive position. Standard & Poor's also affirmed its long-
term corporate credit and senior unsecured debt ratings on the
company.


EIGHTEENTH BANK: Fitch Revises Outlook to Positive from Stable
--------------------------------------------------------------
Fitch Ratings affirms the ratings of Eighteenth Bank, Ltd.,
revising the rating outlook to 'Positive' from 'Stable':

   * Long-term foreign and local currency: BBB

   * Short-term foreign and local currency: F2

   * Individual Rating: C

   * Support Rating: 3

The Support Rating floor of 'BB-' remains unchanged.

Eighteenth Bank has recovered well from a disastrous showing for
the financial year ended March 2005. Its capital base and asset
quality are back to the pre-2005 period.  This recuperating
trend is the basis of our Outlook revision.  However, its
profitability needs further improvement, having been dragged
down by intensifying local competition and the weak local
economy.

                        About Eighteenth Bank

Headquartered in Nagasaki Prefecture, The Eighteenth Bank,
Limited -- http://www.18bank.co.jp/-- is a regional bank that  
operates in three business segments.  The banking segment is
engaged in the provision of banking services, such as such as
loan services, deposit services, securities investment services,
foreign trading services, foreign exchange services, investment
trust services and other banking services.  The Leasing segment
is involved in the leasing of movable assets and others.  The
Others segment is involved in the provision of credit card
services, venture capital services, credit guarantee services,
computer services, temporary staffing services, building
maintenance services and other services.


FORD MOTOR: Reports Preliminary Results for First Quarter 2007
--------------------------------------------------------------
Ford Motor Company reported a net loss of US$282 million, for
the first quarter of 2007.  This compares with a net loss of
US$1.4 billion, in the first quarter of 2006.

Ford's first-quarter loss from continuing operations, excluding
special items, was US$171 million, compared with a profit of
US$223 million, in the same period a year ago.

Special items, which primarily reflected the impact of
restructuring efforts, reduced pre-tax results by US$113 million
in the first quarter.

Ford's first-quarter revenue was US$43 billion, up from
US$40.8 billion a year ago.  The increase primarily reflected
mix improvement and favorable currency exchange, partially
offset by lower volume.

"We are making progress on executing the four priorities of our
plan -- restructuring the company, accelerating product
development, funding our plan and working effectively as one
team," said president and chief executive officer Alan Mulally.  
"I am pleased that the basics of our business are improving, but
we still have a lot of work to do.

"Our first quarter results came in somewhat stronger than
expected, but there are many uncertainties going forward.  We
remain focused on improving our quality, productivity and
business performance," Mr. Mulally added.

                       Automotive Sector

On a pre-tax basis, worldwide Automotive sector losses in the
first quarter were US$225 million.  This compares with a pre-tax
loss of US$203 million during the same period a year ago.  The
2007 losses were more than explained by net interest expense,
partially offset by automotive operating profits of US$116
million during the quarter.

Worldwide Automotive revenue for the first quarter was
US$38.6 billion, up from $37 billion in the same period last
year.  The increase primarily reflected mix improvement and
favorable currency exchange, partially offset by lower volume.  
Vehicle wholesales in the first quarter were 1,650,000, down
from 1,756,000 a year ago.

Automotive gross cash, which includes cash and cash equivalents,
net marketable securities, loaned securities and short-term VEBA
assets, was US$35.2 billion at March 31, 2007, up from US$33.9
billion at the end of the fourth quarter.

Ford North America:  In the first quarter, Ford's North America
Automotive operations reported a pre-tax loss of US$614 million,
compared with a pre-tax loss of US$442 million a year ago.  The
increase in losses primarily reflected unfavorable volume and
mix, partially offset by cost reductions.  Revenue was US$18.2
billion, down from US$19.8 billion for the same period a year
ago.

Ford South America:  Ford's South America Automotive operations
reported a first-quarter pre-tax profit of US$113 million,
compared with a pre-tax profit of US$137 million a year ago.  
The decline primarily reflected the non-recurrence of hedging
gains.  First quarter revenue improved to US$1.3 billion from
US$1.2 billion in 2006.

Ford Europe:  Ford Europe's first-quarter pre-tax profit was
US$219 million compared with a pre-tax profit of US$65 million
during the same period in 2006.  The improvement was more than
explained by favorable volume and mix, partially offset by
higher incentive spending.  During the first quarter of 2007,
Ford Europe's revenue was US$8.6 billion, compared with US$6.8
billion during the first quarter of 2006.

Premier Automotive Group (PAG):  PAG reported a record pre-tax
profit of US$402 million for the first quarter, compared with a
pre-tax profit of US$152 million for the same period in 2006.  
The improvement is more than explained by favorable volume and
mix, favorable net pricing and lower costs, partially offset by
adverse currency exchange.  First-quarter 2007 revenue was
US$8.4 billion, compared with US$7.1 billion a year ago.

Ford Asia Pacific and Africa:  For the first quarter, Ford Asia
Pacific and Africa reported a pre-tax loss of US$26 million,
compared with a pre-tax profit of US$2 million a year ago.  
Adverse currency exchange and unfavorable volume and mix were
partially offset by favorable cost performance.  Revenue was
US$1.8 billion for the first quarter of 2007, compared with
US$1.7 billion in 2006.

Mazda: For the first quarter, Ford earned US$22 million from its
investment in Mazda and associated operations, compared with
US$45 million during the same period a year ago.  The decline is
largely explained by the non-recurrence of gains on an
investment in Mazda convertible bonds.

Other Automotive: First-quarter results included a pre-tax loss
of US$341 million, compared with a loss of US$162 million a year
ago.  The year-over-year decline is largely explained by higher
interest expense and related costs associated with the debt
increase in the fourth quarter of 2006.  This was partially
offset by increased interest income on a larger cash portfolio.

                       Financial Services Sector

For the first quarter, Financial Services sector earned a pre-
tax profit of US$294 million, compared with a pre-tax profit of
US$375 million a year ago.

Ford Motor Credit Company:  Ford Motor Credit reported net
income of US$193 million in the first quarter of 2007, down
US$55 million from earnings of US$248 million a year earlier.  
On a pre-tax basis from continuing operations, Ford Motor Credit
earned $294 million in the first quarter, compared with US$382
million in the previous year.  The decrease in earnings was more
than explained by higher borrowing costs and higher depreciation
expense for leased vehicles.  The non-recurrence of losses
related to market valuation adjustments from non-designated
derivatives was a partial offset.

                           About Ford Motor

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

The company has operations in Japan.

                          *     *     *

Standard & Poor's Ratings Services placed its 'B' senior
unsecured debt issue ratings on Ford Motor Co. on CreditWatch
with negative implications.  At the same time, S&P affirmed all
other ratings on Ford, Ford Motor Credit Co., and related
entities, except the rating on Ford Motor Co. Capital Trust II
6.5% cumulative convertible trust preferred securities, which
was lowered to 'CCC-'from 'CCC.'

                          *     *     *

At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3'
senior unsecured debt on Rating Watch Negative reflecting Ford's
intent to raise secured financing that would impair the position
of unsecured debt holders.  Under Fitch's recovery rating
scenario it was estimated that unsecured holders would recover
approximately 68% in a bankruptcy scenario, equating to a
Recovery Rating of 'RR3' (50-70% recovery).

                          *     *     *

Moody's Investors Service has disclosed that Ford's very weak
third quarter performance, with automotive operations generating
a pre-tax loss of US$1.8 billion and a negative operating cash
flow of US$3 billion, was consistent with the expectations which
led to the September 19 downgrade of the company's long-term
rating to B3.

                          *     *     *

Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle
from R-3 high.  DBRS also lowered Ford Motor Credit Company's
long-term debt rating to BB(low) from BB, and confirmed Ford
Credit's short-term debt rating at R-3(high).


HIGASHI-NIPPON: Fitch Revises Outlook to Positive from Stable
-------------------------------------------------------------
Fitch Ratings affirms the ratings of Higashi-Nippon Bank,
Limited, revising the rating outlook to 'Positive' from
'Stable':

   * Long-term foreign and local currency: BBB-

   * Short-term foreign and local currency: F3

   * Individual Rating: C/D

   * Support Rating: 4

The Support Rating floor of 'B' remains unchanged.

Higashi-Nippon Bank maintains a high loan-to-deposit ratio,
which stood at 85% at end-March 2006, and its top-line
profitability largely depends on loan interest revenues.  A
growth in generally lucrative loans to the real estate sector
against the backdrop of a recent construction boom in the city
area underpins its relatively good top-line profitability.  
Higashi-Nippon has written off a substantial amount of bad loans
in the last couple of years and net risk-monitored loan (RML) to
total lending ratio declined by almost half to over 3% at end-
September 2006, from the recent peak level of over 6% at end-
March 2002.

                      About Higashi-Nippon

Headquartered in Tokyo, Japan, Higashi-Nippon Bank, Limited --
http://www.higashi-nipponbank.co.jp/-- is a regional financial  
institution.  The bank operates in two main business segments,
banking and leasing.  The banking segment offers financial
services that include deposits, loans, foreign exchange
transactions, credit guarantee, telephone banking and Internet
banking, as well as financial products that include mutual
funds, life insurance, credit/debit cards and other financial
products.  The Leasing segment offers leasing services.  
Additionally, the bank is engaged in the provision of staffing
services and system development services for individual and
corporate customers.  As of March 31, 2006, the bank had 74
branches and five consolidated subsidiaries.


HOKURIKU BANK: Fitch Upgrades Individual Rating to D
----------------------------------------------------
Fitch Ratings upgraded the individual rating of Hokuriku Bank,
Ltd., from D/E to D and removing it from the Positive Watch:

   * Long-term foreign and local currency: BBB-

   * Short-term foreign and local currency: F3

   * Individual Rating: D

   * Support Rating: 2

The rating Outlook has been changed to 'Positive' from 'Stable'.
The Support Rating floor of 'BBB-' remains unchanged.

The upgrade of Hokuriku's Individual Rating and the revision of
the rating Outlook reflects a continued improvement in its asset
quality and capitalization.  Fitch also notes an improvement in
the quality of its capital.  This trend is expected to continue
given the recovery of the regional economy, and consequently, an
increase of its lending.

Headquartered in Toyama, Toyama- Hokuriku Bank, Ltd., --
http://www.hokuhoku-fg.co.jp/english.html -- deals with non-
performing loans. Hokoriku refers to a greater region in Japan
that encompasses Fukui, Ishikawa, and Toyoma prefectures. In
addition to the Hokuriku region, the bank has branches in Kyoto,
Osaka, Niigata, Nagano, Tokyo, Kanagawa, Gifu, Aichi, and
Hokkaido. The bank also operates overseas representative offices
in Shanghai, Singapore, and New York City.The Hokuriku Bank is a
subsidiary of the Hokuhoku Financial Group.


JUROKU BANK: Fitch Affirms C Individual Rating
----------------------------------------------
Fitch Ratings affirmed the 'C' individual rating of Juroku Bank
on yesterday.  The other ratings are:

   * Long-term foreign and local currency: BBB+

   * Short-term foreign and local currency: F2

   * Support Rating: 2

The rating Outlook is Stable. The subordinated debt rating has
been upgraded to 'BBB' from 'BBB-'.  The Support Rating floor of
'BBB-' remains unchanged.

The overall trend for Juroku Bank in terms of its asset quality,
profitability and retained earnings has been good over the past
three and a half years and the bank is steadily gaining strength
in its balance sheet. The bank's recent strategy on small-lot
loans to small and mid-sized businesses has contributed to the
loan growth to a large extent. Although the credit risk inherent
to the sector should be taken into account in a prudent manner,
Juroku has been coordinating the risk tolerance with its capital
standing based on the integrated VaR method.


MAZDA MOTOR: Chinese Joint Venture Starts Operation
---------------------------------------------------
Mazda Motor Corporation's joint venture operation, Changan Ford
Mazda Engine Co., Ltd. in Nanjing has started mass production of
the first BZ series engines to be built in China.

Smooth completion of the project, funded and managed by the
joint venture established by Changan Automotive Group, Ford
Motor Company and Mazda Motor Corporation, symbolizes the three
partners' mutual commitment and close cooperation. With the
beginning of this mass production, CFME will continue to grow at
a steady pace, with a production capacity of 350,000 units per
year.

With a project investment of over RMB2.5 billion, CFME began
construction in September 2005, and has now completed three
major production lines for casting, machining, and assembly.
Five key components of the engine: the cylinder block, cylinder
head, crankshaft, camshaft, and connecting rod, will be all
manufactured on-site. As one of the largest engine manufacturing
plants in China, CFME will supply engine products to each
party's vehicle manufacturing operations in China.

"Mazda is committed to succeed in the China market and become a
prominent contributor in the auto industry," says Kiyoshi Ozaki,
director and senior managing executive officer of Mazda
Corporation.  "The Changan Ford Mazda Engine Company is
significant in regard to three aspects.  First of all, we will
produce engines, which are actually the 'heart' of the vehicle.
Second, it is a joint venture company with Changan, Ford and
Mazda, through which we can further strengthen our strategic
partnership in China.  Third, with its operation in Nanjing, we
can contribute to the development of the local economy and
society.  By exploring the full utilization of this plant, we
will provide the best products to satisfy our customers here in
China."

CFME's BZ series engine is one of the world's finest engines,
embodying the latest engine designs, manufacturing and
engineering technologies from Mazda.  The BZ series engine
adopts a modern aluminum cylinder head and block, intake VVT
(variable valve timing), plastic intake manifold, TSCV (tumble
swirl control valve), and multi-point electronic fuel injection.
All of these features have significantly improved engine
performance, adding more power and better fuel economy, reducing
exhaust and noise as well as exceeding Chinese government
standards. In addition to this, another engine series, the "I4",
will be introduced later this year.

Creating the world's leading engine production facility is a top
priority at CFME, which has introduced high-quality, efficient,
and flexible production lines, while remaining committed to
environmental protection and harmonious development.  Combining
Mazda's revolutionary casting technology with a high-pressure
casting technique, the casting plant is highly efficient and
environmentally friendly.  The machining lines are capable of
switching conveniently between new and different models, meeting
diverse production requirements.  The assembly plant is fitted
with innovative and highly effective integrated production
lines, making it possible to assemble quality parts and whole
engines of various types on the same assembly line.  Flexible
manufacturing technologies help increase capacity utilization
and make it possible to add new models at minimum costs,
satisfying the constantly changing demands of the auto market.

                       About Mazda Motors

Headquartered in Hiroshima Prefecture, Mazda Motor Corporation -
- http://www.mazda.co.jp-- together with its subsidiaries and  
associates, is primarily involved in the manufacture and
distribution of automobiles.  The company manufactures passenger
cars and commercial vehicles.  Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on April 27,
2007, that Standard & Poor's Ratings Services raised Mazda Motor
Corp. long-term corporate credit rating and the company's long-
term senior unsecured debt as:

   * Corporate Credit Rating: BB /Stable/

   * Company's Long-term Senior Unsecured Debt: BB+

S&P's rating actions reflect Mazda's improved operational and
financial performance, and financial risk profile.  Mazda's
operating and financial performance has been improving over the
past several years due to the success of new products following
a shift in strategy.  The company continued to improve operating
and financial performance in the nine months ended Dec. 31,
2006, owing to an improved sales mix and favorable foreign
exchange rates.  Although the EBITDA margin of about 6% remains
lower than most of its Japanese peers, profitability is steadily
improving.  Mazda is now focusing on certain segments instead of
attempting to compete as a full-line producer.  The company
also has excellent product engineering capabilities.


MITSUBISHI UFJ: Teams with Morley Fund on US$500 Million Venture
----------------------------------------------------------------
Aviva Plc's Morley Fund Management Ltd. has teamed up with
Mitsubishi UFJ Trust and Banking Corporation for a
US$500 million venture, according to reports.  

The joint venture made its first investment of JPY9 billion in a
Tokyo central district office, according to Financial News
Online.

Kathleen Chu at Bloomberg News reported that Morley "will invest
US$10 billion in property in Asia over the next four years, and
will put half of that into Japan, where land prices are
increasing for the first time since 1991."

Ms. Chu says Mitsubishi UFJ will advise Morley on the purchase,
sale and management of properties.

"We have a gap in Asia which we are now filling. . . . It is the
right time to be investing in Japanese property for our clients,
and we are looking for compelling investment opportunities
across Japan," Ian Womack, head of property at Morley, said at a
news conference in Tokyo last week, Ms. Chu related.

Mark Cobley of Financial News Online relates that "Morley is
also planning further partnerships across Japan, South Korea and
India, and is recruiting for a head of Asian property, to be
based in its Singapore office."

           About Mitsubishi UFJ Trust and Banking Corp

Mitsubishi UFJ Trust and Banking Corp. --
http://www.tr.mufg.jp/english/-- is one of Japan's leading  
asset-management companies with JPY28 trillion in managed
assets, Mitsubishi UFJ Trust and Banking meets the needs of
international investors with a variety of creative investment
products.

Fitch Ratings upgraded Mitsubishi UFJ Trust and Banking's
individual rating to C from C/D on Jan. 1, 2006.


MOMIJI BANK: Fitch Affirms Individual Rating at D
-------------------------------------------------
Fitch Ratings has affirmed Momiji Bank, Ltd.'s:

   * Long-term foreign and local currency Issuer Default Ratings
     at 'BBB+',

   * Short-term foreign and local currency IDRs at 'F2',

   * Individual Rating at 'D', and

   * Support Rating at '2'.

The rating Outlook remains Stable and the Support Rating floor
of 'BBB-' remains unchanged.

Momiji Bank has been consolidated with Yamaguchi Bank Ltd. under
a holding company, Yamaguchi Financial Group, which was
established in October 2006 and the two banks have since aligned
their provisioning policies.  As a result, Momiji made a large
provisioning for the latest financial year ended March 2007,
which depleted its Tier 1 capital.  The supporting factor for
its IDRs is the strong local franchise of Yamaguchi Bank and its
financial strength.

Yamaguchi Bank's stand-alone balance sheet strength is
relatively good considering its asset quality and capital
standing.  The RML to total loan ratio was comparatively low at
1.9%, while pure Tier 1 ratio stood at a little over 8% at end-
September 2006.  On the other hand, uncertainty over the
negative effect from Momoji Bank on the bank's parent company,
Yamaguchi FG, will remain, at least in the short term.


MUSASHINO BANK: Fitch Affirms Individual Rating at C
----------------------------------------------------
Fitch Ratings has upgraded Musashino Bank, Ltd.'s long-term
foreign and local currency Issuer Default Ratings to 'BBB+' from
'BBB'.  The rating Outlook is now Stable.  Short-term foreign
and local currency IDRs were affirmed at 'F2', Individual Rating
was affirmed at 'C' and Support Rating was affirmed at '4'.  The
subordinated debt rating has been upgraded to 'BBB' from 'BBB-'
(BBB minus).  The Support rating floor of 'B' remains unchanged.

Musashino Bank's Long-term IDRs were upgraded as a result of its
continued improvement in the credit quality of its loan
portfolio and in its capital position. Fitch also notes that the
bank's profitability is relatively high as a regional bank.


NISHI-NIPPON CITY: Fitch Lifts Individual Rating to 'D/E'
---------------------------------------------------------
Fitch Ratings has upgraded Nishi-Nippon City Bank, Ltd.'s
Individual Rating to 'D/E' from 'E'.  Long-term foreign and
local currency Issuer Default Ratings were affirmed at 'BBB-',
Short-term foreign and local currency IDRs were affirmed at 'F3'
and Support Rating was affirmed at '2'.  The rating Outlook
remains Stable.  The subordinated debt rating is affirmed at
'BB+'.  The Support Rating floor of 'BBB-' remains unchanged.

Nishi-Nippon City Bank has repaid half the public funds in
September 2006, which it had inherited from Fukuoka City Bank
following a merger with the latter in October 2004. Even with
this repayment, Nishi-Nippon City's capital position has been
underpinned by the better-then expected bottom-line profit and
conversion of convertible bonds in the six months to end-
September. The bank forecasts a substantial growth in bottom-
line at end-March 2007 thanks to a decrease in net credit costs,
and this should lead to a further improvement in its capital
standing. On the other hand, the asset quality problem of its
subsidiary bank, Nagasaki Bank, remains to be incorporated into
Nishi-Nippon City's IDRs.


OGAKI KYORITSU: Fitch Holds Individual Rating at 'C/D'
------------------------------------------------------
Fitch Ratings has upgraded Ogaki Kyoritsu Bank, Ltd.'s long-term
foreign and local currency Issuer Default Ratings to 'BBB' from
'BBB-'.  Short-term foreign and local currency IDRs were also
upgraded to 'F2' from 'F3'.  Individual Rating is affirmed at
'C/D' and Support Rating is affirmed at '3'.  The rating Outlook
is Stable.  Support rating floor of 'BB-' remains unchanged.

The upgrade of Ogaki Kyoritsu's IDRs was driven primarily by an
improvement in asset quality.  A decrease in credit costs and a
resultant improvement in its bottom-line profit accelerated the
accumulation of earnings, which support a relatively rapid
growth of its risk assets.


SUMITOMO MITSUI: Revises Consolidated Earnings Forecasts
--------------------------------------------------------
Sumitomo Mitsui Financial Group, Inc. revised its consolidated
earnings forecasts for the fiscal year ended March 31, 2007,
which was announced in November 2006, mainly due to a decrease
in banking profit (before provision for general reserve for
possible loan losses) of Sumitomo Mitsui Banking Corporation, a
major subsidiary of SMFG.

Forecasts on dividends and non-consolidated earnings remain
unchanged.

Revision of consolidated earnings forecasts for the fiscal year
ended March 31, 2007.

(Billions of yen, except percentages)

                  Ordinary income   Ordinary profit   Net income
                  ---------------   ---------------   ----------
Previous forecast     JPY3,700            JPY950        JPY570
Revised forecast         3,900               800           440
Change                     200              (150)         (130)
Percentage change (%)     5.4%             (15.8)%       (22.8)%

Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui
Financial Group, Inc., -- http://www.smfg.co.jp/-- is a  
financial holding company. It is principally involved in the
provision of financial services and products, which include
banking, leasing, securities, credit cards, investment and
lending, financing and venture capital. The Company has two core
business segments. The Banking segment offers services, such as
deposits, loans, commodities trading, securities investment,
domestic and foreign exchange, futures trading, bond fiduciary
and registration, trust, securities brokerage and insurance. The
Leasing segment mainly offers leasing services through SMBC
Leasing Co., Ltd. in Japan and SMBC Leasing and Finance, Inc.
overseas. The Company is also engaged in the system development,
debt management and collection, information processing,
consulting, factoring, money collection and financial derivative
businesses.  As of March 31, 2006, the Company had 162
consolidated subsidiaries and 63 affiliated companies.


SUMITOMO MITSUI: Launches New Medium-Term Management Plan
---------------------------------------------------------
Sumitomo Mitsui Financial Group, Inc. has launched a new medium-
term management plan, "LEAD THE VALUE" plan, for the coming
three years from fiscal 2007 to 2009 given the completion of
repayment of public funds in October 2006 and in response to the
greatly changed business environment, including the economic
situation and competitive environment.

In the new medium-term management plan, the basic policy of SMFG
is to aim for a globally competitive financial services group
with the highest trust by maximizing its strengths -- "Spirit of
Innovation," "Speed" and "Solution & Execution."  Under this
basic policy, SMFG has set three goals:

     1. Aim for top quality in growth business areas

     2. Realize solid financial base as a global player

     3. Increase return to shareholders.

SMFG and its group companies will make every effort to achieve
the goals of the medium-term management plan in order to realize
sustainable growth and higher corporate value.

A full-text copy of the company's 8-page press release about its
management plan is available for free at:

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

Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui
Financial Group, Inc., -- http://www.smfg.co.jp/-- is a  
financial holding company. It is principally involved in the
provision of financial services and products, which include
banking, leasing, securities, credit cards, investment and
lending, financing and venture capital. The Company has two core
business segments. The Banking segment offers services, such as
deposits, loans, commodities trading, securities investment,
domestic and foreign exchange, futures trading, bond fiduciary
and registration, trust, securities brokerage and insurance. The
Leasing segment mainly offers leasing services through SMBC
Leasing Co., Ltd. in Japan and SMBC Leasing and Finance, Inc.
overseas. The Company is also engaged in the system development,
debt management and collection, information processing,
consulting, factoring, money collection and financial derivative
businesses.  As of March 31, 2006, the Company had 162
consolidated subsidiaries and 63 affiliated companies.


SUMITOMO MITSUI: Fitch Affirms Individual Rating at 'C'
-------------------------------------------------------
Fitch Ratings has affirmed Sumitomo Mitsui Financial Group,
Inc.'s and it subsidiary Sumitomo Mitsui Banking Corporation's
ratings:

   SMFG:

   * Long-term local and foreign currency Issuer Default rating:
     'A' with Outlook Stable

   * Short-term local and foreign currency IDR: 'F1'

   * Individual rating: 'C'

   * Support rating: '1'

   SMBC:

   * Long-term local and foreign currency IDR: 'A' with Outlook
     Stable

   * Short-term local and foreign currency IDR: 'F1'

   * Individual rating: 'C'

   * Support rating: '1'

The Support Rating Floors for both SMFG and SMBC are 'A-'.

The affirmations follow SMFG's announcement that it has revised
its consolidated net income forecast downwards for the fiscal
year to end March 2007.  The profit forecast reduction is due to
the decline in operating profits after the bank recognized
losses from its bond portfolio as a result of interest rate
volatility both domestically and internationally.  In addition,
the group's 22%-owned Promise Co., Ltd's ('A-'/F2/Negative)
revised its forecast downwards on 25 April 2007, leading SMFG to
recognize impairment of goodwill and losses using the equity
method and SMBC to create provisions for investment impairment
losses.  Despite these losses the bank will post net income of
JPY440 billion for FYE07, 23% down from earlier projections.

Simultaneously the group has announced a medium-term growth plan
with financial targets, including JPY650bn consolidated net
income by 2010 with a return on risk assets of 1% and return on
equity of 10%-15% while keeping Tier 1 capital adequacy ratio at
about 8%.

Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui
Financial Group, Inc., -- http://www.smfg.co.jp/-- is a  
financial holding company. It is principally involved in the
provision of financial services and products, which include
banking, leasing, securities, credit cards, investment and
lending, financing and venture capital. The Company has two core
business segments. The Banking segment offers services, such as
deposits, loans, commodities trading, securities investment,
domestic and foreign exchange, futures trading, bond fiduciary
and registration, trust, securities brokerage and insurance. The
Leasing segment mainly offers leasing services through SMBC
Leasing Co., Ltd. in Japan and SMBC Leasing and Finance, Inc.
overseas. The Company is also engaged in the system development,
debt management and collection, information processing,
consulting, factoring, money collection and financial derivative
businesses.  As of March 31, 2006, the Company had 162
consolidated subsidiaries and 63 affiliated companies.


SURUGA BANK: Fitch Affirms Individual Rating at 'C'
---------------------------------------------------
Fitch Ratings has affirmed Suruga Bank, Ltd.'s:

   * Long-term foreign and local currency Issuer Default Ratings
     at 'BBB+',

   * Short-term foreign and local currency IDRs at 'F2',

   * Individual Rating at 'C', and

   * Support Rating at '4'.

The rating Outlook has been changed to 'Positive' from 'Stable'.
The Support Rating floor of 'B' remains unchanged.

Suruga Bank's rating Outlook was revised to Positive, driven by
its strong profitability and the improvement in the credit
quality of its loan portfolio and in its capital position.


TOHO BANK: Fitch Holds Individual Rating at 'C'
-----------------------------------------------
Fitch Ratings has affirmed Toho Bank, Ltd.'s:

   * Long-term foreign and local currency Issuer Default Ratings
     at 'BBB',

   * Short-term foreign and local currency IDRs at 'F2',

   * Individual Rating at 'C', and

   * Support Rating at '2'.

The rating Outlook has been changed to 'Positive' from 'Stable'.
The Support Rating floor of 'BBB-' remains unchanged.

Toho's rating Outlook was revised to Positive, driven by a
continuing improvement in its asset quality and capital
position, as well as its increasing interest revenue. While the
loss related to bond sales was a drag on the top-line revenue in
FYE07, a decrease of interest rate risk on its bond portfolio is
viewed positively by Fitch.


YAMAGUCHI BANK: Fitch Holds Individual Rating at 'C'
----------------------------------------------------
Fitch Ratings has affirmed Yamaguchi Bank, Ltd.'s:

   * Long-term foreign and local currency Issuer Default Ratings
     at 'BBB+',

   * Short-term foreign and local currency IDRs at 'F2',

   * Individual Rating at 'C', and

   * Support Rating at '2'.

The rating Outlook remains Stable and the Support Rating floor
of 'BBB-' remains unchanged.

Yamaguchi Bank has been consolidated with Momiji Bank Ltd. under
a holding company, Yamaguchi Financial Group, which was
established in October 2006 and the two banks have since aligned
their provisioning policies.  As a result, Momiji made a large
provisioning for the latest financial year ended March 2007,
which depleted its Tier 1 capital. The supporting factor for its
IDRs is the strong local franchise of Yamaguchi Bank and its
financial strength.

Yamaguchi Bank's stand-alone balance sheet strength is
relatively good considering its asset quality and capital
standing.  The RML to total loan ratio was comparatively low at
1.9%, while pure Tier 1 ratio stood at a little over 8% at end-
September 2006.  On the other hand, uncertainty over the
negative effect from Momoji Bank on the bank's parent company,
Yamaguchi FG, will remain, at least in the short term.



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

INDUSTRIAL BANK: 1st Quarter Earnings Soar on One-Off Asset Sale
----------------------------------------------------------------
Industrial Bank of Korea's first quarter earnings came to
KRW524.4 billion compared with KRW270.6 billion from a year
earlier, a 93.8% jump, on increased interest income and the
proceeds from a one-off asset sale, Yonhap News reports.  

Sales gained 21% year-on-year to KRW2.53 trillion and operating
profit soared 98.6% to KRW714.4 billion, the bank said in its
regulatory filing.

                          *     *     *

Headquartered in Seoul, Kore, state-run Industrial Bank of Korea
-- http://www.kiupbank.co.kr/-- provides commercial banking  
services to small and mid-sized companies.  The Bank provides
loans, discount bills, deposits, installment savings deposits,
domestic remittances, foreign exchange, safe deposit boxes, and
payment acceptances and guarantees.  IBK also provides PC
banking and telephone banking services.

Moody's Investors Service gave Industrial Bank of Korea a Bank
Financial Strength Rating of 'D' effective Jan. 24, 2006.


KOOKMIN BANK: To Bid for KGI Securities' Majority Stake
-------------------------------------------------------
Kookmin Bank confirmed in a filing with the Korea Exchange that
it had submitted a letter of Intent to buy KGI Securities, as it
seeks to beef up its brokerage business to counter weaker
lending margins, Reuters reports.

Citing local media reports, Reuters relates that Kookmin handed
in a letter to bid for a majority stake in unlisted KGI
Securities, 51% owned by Taiwanese conglomerate Koos Group.

A KGI executive in Taiwan told Reuters on Wednesday the Koos
Group had received several letters of intent for its stake in
KGI Securities, but declined to give any details.

South Korean banks, according to the report, are aiming to
expand brokerage business this year before the passage of the
Capital Market Consolidation Act, which is intended to create
major banks in the mould of big U.S. investment banks.

                          *     *     *

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

The Troubled Company Reporter - Asia Pacific reported on Jan.
24, 2007, that the bank carries Moody's bank financial strength
rating of D+.



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

FEDERAL FURNITURE: Eyes Chinese Market Entry Via Banting Plant
--------------------------------------------------------------
Federal Furniture Holdings Bhd plans to enter the Chinese market
and take advantage of the country's 1.3 billion populace once
its plant becomes operational by the third quarter of this year,
New Straits Times reports, citing Bernama News as its source.

According to the report, Federal Furniture now has a plant in
Banting, which manufacture fixtures from its factory in Qingdao,
China, managed by its wholly-owned subsidiary, Qingdao Federal
Furniture Industry Ltd.

Mohd Iswandi, writing for Bernama said that besides reaping
market opportunities and serving clients in China, the plant was
also strategically located in Northeast China to serve Korea and
Japan.

"The plant there [Banting] would enable the company to capture
the growth and huge potential in China and contribute to Federal
Furniture's sales and bottomline from next year," managing
director Choy Wai Hin, told Bernama.

                          *     *     *

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

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

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


MALAYSIA AIRLINES: Firefly Takes Over FAX Rural Air Services
------------------------------------------------------------
Malaysia Airlines's newly established carrier, Firefly, has
obtained the cabinet's approval to take over rural air services
in Sabah and Sarawak now being operated by Fly Asian Xpress, New
Sabah Times reports.

According to the report, Transport Minister Datuk Seri Chan Kong
Choy said the Cabinet agreed to FAX's proposal submitted on
April 17 to surrender its rural air services in Sabah and
Sarawak to Firefly.

The Troubled Company Reporter - Asia Pacific on April 19, 2007,
reported that Malaysia Airlines is likely to restart operating
rural air service in Sabah and Sarawak after AirAsia Bhd made a
proposal to hand over its operations.  Several directors of
AirAsia owns FAX.

Datuk Seri Chan told the paper that his office had studied the
proposal and recommended it to the Cabinet.

"The government is responsible for the rural air services, so we
will (now) appoint MAS to manage this through Firefly to run
them on behalf of the government," he told reporters after
chairing his ministry's post-Cabinet meeting.

According to Datuk Seri Chan, the government will subsidize the
services at between MYR50 million and MYR70 million a year,
depending on the finance and transport ministries' valuation on
the subsidy.

The Minister, according to the report, assured the flag carrier
that the move will not affect its business turnaround plan as
"Any losses [from RAS operations] will be borne by the
government."

FAX's offer for Firefly to take over its rural air operations
was reportedly due to it wanting to focus on its planned long-
haul low-cost AirAsia X operations, the Times says.

Meanwhile, Idris Jala, the flag carriers managing director, had
responded that the airline will consider the take over if its
business turnaround plan is not jeopardized, the paper relates.

Malaysia Airlines will also seek its board's approval for the
move, Mr. Jala added.

                          *     *     *

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

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


MYCOM BERHAD: MYR60.32MM Unsecured Loan Gets MARC's BB- Rating
--------------------------------------------------------------
Malaysian Rating Corp Bhd accorded the rating of BB- to Mycom
Berhad's MYR60,315,280 nominal value of Redeemable Unsecured
Loan Stocks, which reflects the risks associated with the
implementation of the Group's restructuring scheme.

The rating category reflects significant uncertainties that
could affect the ability of the issuer to adequately service
debt obligations.  The rating carries a stable outlook.

Mycom is an investment holding company with subsidiaries engaged
in property development and investment, plantations,
manufacturing and plywood.

With its core activities concentrated on property development
and natural resources, the Group was gravely affected by the
1997/1998 economic slowdown.

Arising from this, the Group initiated a Group wide
restructuring scheme to rationalize debt and inject new assets
with a view towards remaining viable.

The restructuring scheme involves, among others, a capital
reduction; recapitalization via a rights and special issue
exercise; and a debt restructuring.

The debt restructuring exercise involves the issuance of RM60.4
million RULS and other debt instruments as settlement of Mycom's
debt obligations.

Pursuant to the restructuring scheme, Mycom will streamline its
business focus to that of property development.

In pursuing this strategy, the management has proposed to
acquire property based companies from its related company,
Olympia Industries Berhad (OIB) in order to increase its project
portfolio and landbank for future developments.

The Group may eventually dispose certain non-core assets under
its plantations and plywood businesses in order to supplement
its cash coffers.

Mycom's property developments, Bandar Sri Duta (BSD) and the
Duta Grand Hotels (DGH) projects will be financed from the
proceeds of the restructuring scheme.

BSD, a proposed mixed development project within the vicinity of
Sri Hartamas will be a joint venture (58:42) with OIB; where
Mycom will actively carry out the development activities while
OIB remains as the passive partner.

Mycom's other development; DGH will comprise condominiums,
service apartments and a hotel.

Although market risks for both the BSD and DGH projects are
somewhat moderated by their strategic locations, the viability
of these projects remains uncertain as it hinges on the
implementation of the restructuring scheme.

Both BSD and DGH projects will commence upon implementation of
the restructuring scheme, which is targeted in March 2007.

The Group has recorded consecutive losses since 1998 resulting
in negative shareholders funds of RM500.4 million as at FY2006.

The Group's past net cash flow position has been tight, plagued
by the continued losses.  Its financial flexibility is severely
constrained due to the limited availability of unencumbered
assets, and its chequered credit history.


OLYMPIA INDUSTRIES: MARC Rates MYR137-MM Unsecured Loan at BB-
--------------------------------------------------------------
Malaysian Rating Corp Bhd assigns the rating of BB- to Olympia
Industries Berhad's MYR137,124,246 nominal value of Redeemable
Unsecured Loan Stocks, reflecting the risks associated with the
implementation of the Group's restructuring scheme.

The rating carries a stable outlook.

OIB is involved in property investment, construction, stock
broking and lotteries/number forecast.

It is a related company of Mycom Berhad, a Main Board listed
company on Bursa Malaysia which is also concurrently undergoing
a restructuring exercise.

OIB's lotteries/number forecast business resumed operations at
the end of 2001 upon renewal of its lotteries/number forecast
license.

Meanwhile, its stock broking arm subsidiary, Jupiter Securities
Sdn Bhd (JSSB), has been trading with restrictions since October
1998.

The restructuring scheme involves, among others, a capital
reduction; recapitalization via a rights and special issue
exercise; and a debt restructuring.

The debt restructuring, in turn, involves the issuance of the
RULS and other debt instruments as settlement of OIB's debt
obligations.

The restructuring scheme will also involve the divestment of
OIB's property related companies to Mycom as several of OIB's
subsidiaries holding land bank will be disposed to Mycom.

Post restructuring, OIB Group's core activities will focus on
property investment, lotteries/number forecast and stock
broking.

OIB's property development projects, namely Bandar Sri Duta
(BSD) and K-Residence will be financed from the proceeds of the
restructuring scheme.

BSD, the 42:58 joint venture mixed development project with
Mycom, is strategically located near the upmarket area of Sri
Hartamas and will target the higher end of the residential
market.

The K-Residence development, on the other hand, which is located
in the vicinity of the KLCC, comprises a condominium tower and a
service apartment tower.

Tower 1 comprising condominiums, is currently under development.  
As at mid January 2007, 150 units of condominiums out of a total
of 188 units of Tower 1 have been sold with total sales value of
RM288 million.

The successful completion of these projects will hinge on the
restructuring scheme.

The Group has registered operating losses since 1998.  OIB's
earnings then, which were mainly dependent on financial
services, property development and investment activities were
adversely affected due to JSSB's trading restrictions, reduction
in brokerage rates since September 2000 as well as the slowdown
in the property and construction sectors.

Future improvements in earnings performance and debt servicing
ability are contingent on the successful implementation of
development projects post-restructuring.


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

CLEAR CHANNEL: Earns US$102.2 Million in Quarter Ended March 31
---------------------------------------------------------------
Clear Channel Communications Inc. reported net income of
US$102.2 million for the first quarter of 2007, compared with
net income of US$96.8 million for the first quarter of 2006.  
The company's first quarter 2006 net income included
approximately US$39.6 million of pre-tax gains, primarily on the
divestiture of radio assets and the swap of certain outdoor
assets.  

The company reported revenues of US$1.6 billion in the first
quarter of 2007, an increase of 8% from the US$1.5 billion
reported for the first quarter of 2006.  Included in the
company's revenue is a US$31.2 million increase due to movements
in foreign exchange; excluding the effects of these movements in
foreign exchange, revenue growth would have been 6%.

Clear Channel's income before discontinued operations increased
2% to US$99.2 million, as compared to US$97.1 million for the
same period in 2006.  

Clear Channel's expenses increased 5% to US$1.1 billion during
the first quarter of 2007 compared to 2006.  Included in the
company's 2007 expenses is a US$28.9 million increase due to
movements in foreign exchange; excluding the effects of these
movements in foreign exchange, growth in expenses would have
been 3%.

The company's operating income before depreciation &
amortization, non-cash compensation expense and gain on
disposition of assets - net) was US$435.7 million in the first
quarter of 2007, a 12% increase from 2006.

Mark P. Mays, chief executive officer of Clear Channel
Communications, commented, "The company delivered solid first
quarter results and we are very pleased with our overall
performance.  We want to thank and congratulate all of our
employees, who work extremely hard every day to help Clear
Channel achieve its goals and objectives."

                   Proposed Merger Transaction

On April 18, 2007, the company amended its agreement to be
acquired by a group of private equity funds led by Bain Capital
Partners LLC and Thomas H. Lee Partners L.P. to provide for an
increase to US$39.00 per share in the price shareholders will
receive in cash for each share of common stock they hold.  The
transaction is subject to shareholder approval, antitrust
clearances, FCC approval and other customary closing conditions.
The company filed its supplement to the definitive proxy
statement with the Securities and Exchange Commission on
April 25, 2007, and the shareholder meeting will be held on
May 8, 2007.

                Radio and Television Divestitures

On April 20, 2007, the company entered into a definitive
agreement to sell its Television Group for approximately US$1.2
billion.  The sale includes 56 television stations (including 18
digital multicast stations) located in 24 markets across the
United States.  Also included in the sale are the stations'
associated Web sites, the Television Operations Center, and
Inergize Digital Media, which manages the Television Group's
online and wireless initiatives.  The transaction is expected to
close in the fourth quarter of 2007, subject to regulatory
approvals and other customary closing conditions.

Clear Channel estimates net proceeds after taxes and customary
transaction costs will be approximately US$1.1 billion for the
Television Group.  

To date the company has entered definitive agreements to sell
161 radio stations in 34 markets for a total consideration of
approximately US$331 million.  The company expects these
transactions to close during the second half of 2007.  The
company estimates net proceeds after taxes and customary
transaction costs for these 161 stations will be approximately
US$300 million.

                     Liquidity and Total Debt

For the quarter ended March 31, 2007, cash flow from operating
activities was US$337.9 million, cash flow used by investing
activities was US$75.7 million, cash flow used by financing
activities was US$283.2 million, and net cash provided by
discontinued operations was US$14.6 million for a net decrease
in cash of US$6.4 million.

At March 31, 2007, Clear Channel had total debt of US$7.4
billion.

                       About Clear Channel

Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media     
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers.  The company's
businesses include radio, television and outdoor displays.  
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.

                          *     *     *

In April 2007, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Clear
Channel Communications Inc. to 'B+' from 'BB+'.  The ratings
remain on CreditWatch with negative implications, where they
were placed on Oct. 26, 2006, following the company's
announcement that it was exploring strategic alternatives to
enhance shareholder value.


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

ATLAS CONSOLIDATED: Unit Infuses PHP1.2 Billion to New Facility
---------------------------------------------------------------
Atlas Consolidated Mining and Development Corp.'s unit, Berong
Nickel Corp., is infusing fresh investments of PHP1.2 billion
into a new facility that will produce beneficiated nickel ore in
Quezon, Palawan, the Manila Standard relates.

The Standard reports that the facility will have a capacity to
process 1.47 million metric tons of nickel ore per year.  

The Standard adds that Berong has received a special mines
permit from the government and is set to start full-scale
commercial mining of laterite nickel ore in Palawan, allowing it
to start mining operations while it completes a feasibility
report as part of the requirements for its application for a
commercial mineral production sharing agreement.

The Berong nickel project is a joint venture between Atlas,
Toledo Mining Corp. and Investika Ltd.

The Standard also reported that in an earlier disclosure to the
Philippine Stock Exchange, Atlas Consolidated said that customer
demand for the laterite ore was strong, with demand far
exceeding supply.   Atlas said negotiations were well-advanced
for the long-term (at least four years) supply of up to 50% of
the mine's output to the BHP/QNI plant at Townsville, Australia.

The report also mentions that there are also ongoing talks with
numerous Chinese and Japanese customers for a shorter-term
supply of up to two years.

Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano-
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company.  The company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products.  The
company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located.  The Cebu copper
mine ceased operations in 1994.  Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite.  The closure has brought huge
losses to the mining firm.

In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.

According to a TCR-AP report on June 1, 2006, Atlas reported a
capital deficiency of PHP3.035 billion for the year ended
December 31, 2005.  Moreover the company's auditor, Jaime F. Del
Rosario, of Sycip Gorres Velayo, raised substantial doubt on the
company's ability to continue as a going concern.


BANK OF THE PHIL. ISLANDS: Sells Bad Loans to Bank of America
-------------------------------------------------------------
Bank of the Philippine Islands is negotiating the sale of
PHP3.75 billion worth of bad loans to Bank of America, the
Manila Standard reports.

According to the Standard, BPI disclosed to the Philippine Stock
Exchange that Bank of America was the highest bidder among
several foreign investors for the sale of the bad loans.

The Standard explains that BPI has some PHP12.4 billion worth of
bad loans as of the end of 2006.  With a loan portfolio
amounting to PHP181.8 billion, bad loans ratio stood at 5.89%,
slightly higher than the industry average.

The Standard recounts that this is the fourth bad loans sale BPI
entered.  The bank had earlier:

   * sold PHP6.3 billion and PHP2.4 billion of its bad loans to
     Avenue Asia, an affiliate of the Amroc Group, one of the
     leading distressed asset management companies in the United
     States;

   * sold PHP8.6 billion of bad loans to Philippine Asset
     Investment, a unit of Morgan Stanley Emerging Markets Inc.

Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is  
the oldest bank in South East Asia and is the second largest
commercial bank in the Philippines in terms of assets, deposits,
loans and capital base in the year 2003.  The bank has two major
products and services categories: the first covers its deposit
taking and lending/investment activities, while the second
covers income derived from all services other than deposit
taking, lending and investing, which are generally in the form
of commissions, service charges and fees.

The Troubled Company Reporter - Asia Pacific reported that on
November 2, 2006, Moody's Investors Service revised the outlook
of the bank of the Philippine Islands' foreign currency long-
term deposit rating of B1 to stable from negative.

The outlooks for BPI's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of C- remains
stable.


CENTRAL AZUCARERA: Losses Trim Down 36% for Period Ended Dec. 31
----------------------------------------------------------------
Central Azucarera de Tarlac posted a net loss of
PHP68.03 million for the six months ending Dec. 31, 2006, a 36%
decrease against a PHP106.28 million net loss for the six months
ending Dec. 31, 2005.

Revenues increased by 618.68% to PHP207.86 million for the
period in review.  Sugar sales accounted for PHP110.36 million,
up 398.60%, due mainly to the increased sales volume to 113,634
50-kg bags in raw equivalent that offset a slight decline in the
composite price of raw sugar.

The increased refinery output that grew 609.21% to a total of
219,927 50-kg bags of refined sugar boosted tolling reveneues.  
Tolling fees for refined sugar totaled PHP45.25 million, up
609.21% for the period in review.

Alcohol sales amounted to PHP51.91 million covering 2.02 million
gauge liters at an average selling price of PHP25.72 per litter.

The sales volume of carbon dioxide totaled PHP337,192.

Despite the higher revenues, the gross profit margin for the
period in review remained low at only 10.55%  This coupled with
the increase operating expenditures and the high financing costs
resulted in the net loss.

The company's financials are available for download at:

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

Central Azucarera de Tarlac was incorporated in 1927 and renewed
in 1976.  It operates a sugar mill and refinery, distillery and
carbon dioxide plants in Barrio San Miguel, Tarlac City.  The
sugar cane milled is sourced within the Tarlac district and
nearby towns of Pampanga.  Affiliate Hacienda Luisita, Inc.,
provides around 1/3 of the mill's cane requirements.

                     Going Concern Doubt

Belinda B. Fernando, CPA, partner at auditing firm Sycip Gorres
Velayo & Co., points out in an independent auditors report that
the company's ability to continue as a going concern depends on
the successful implementation of its planned initiatives to
increase revenue and reduce costs, the finalization of the
ongoing settlement with creditor banks and the settlement of
intercompany accounts with related parties.

The Troubled Company Reporter - Asia Pacific reported on
Feb. 28, 2007 that Central Azucarera's net loss narrowed by 84%
to PHP87.48 million for the fiscal year ended June 30, 2006,
from the PHP548.98-million incurred during the year ended June
30, 2005.


CHIQUITA BRANDS: Loss Prompts Cancel of 2006 Executive Bonuses
--------------------------------------------------------------
Cliff Peale at The Enquirer reports that Chiquita Brands
International Inc. Chairperson and Chief Executive Officer
Fernando Aguirre and other company executives didn't get
performance-based bonuses for last year.

The Cincinnati Business Courier relates that Chiquita Brands'
proxy statement indicated that bonuses were denied because the
firm failed to meet net income goals.

The Enquirer's Mr. Peale relates that Chiquita Brands lost US$96
million in 2006.

Chiquita Brands said in its proxy statement filed with the U.S.
Securities and Exchange Commission that Mr. Aguirre's US$795,769
salary increased 6.7% in 2006 from 2005, but he received a bonus
of almost US$1.9 million in 2005.

The Enquirer's Mr. Peale notes that Mr. Aguirre's total
compensation, including stock awards and stock options, was
slightly over US$3 million in 2006.

The Business Courier relates that Mr. Aguirre took a 29% pay
reduction last year.

According to The Business Courier, Chiquita Brands had a US$28-
million operating loss in 2006 on net sales of US$4.5 billion,
compared to a US$188-million operating profit and net sales of
US$3.9 billion in 2005.  Last year's results included a US$43-
million goodwill impairment charge related to its acquisition of
Atlanta AG and a US$25-million charge to settle a criminal probe
involving protection payments that Chiquita Brands made to
Colombian terrorist groups.

Mr. Aguirre told Chron.com that the payments made were motivated
by concern for the workers' safety.

Chiquita Brands' board set earnings goals over a three-year
period that will result in the award of just over US$1 million
in shares, assuming that the company meets performance targets,
The Business Courier states.

Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an  
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others.  It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.

                        *     *     *

Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc.  Moody's said the outlook on all ratings is
stable.

Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.


MANILA ELECTRIC: Turnarounds With PHP532MM Net Income in 1Q 2007
----------------------------------------------------------------
Manila Electric Company reported a net income of PHP532 million
for the first quarter of 2007, a turnaround from a net loss of
PHP748 million in the same period in 2006, according to a
preliminary results report submitted to the Philippine Stock
Exchange.

Provisioning for probable losses was stopped starting January
2007 with the favorable Supreme Court decision on the unbundling
rate case on December 8, 2006.

Had there been no provisions made for probable losses amounting
to PHP1.43 billion in the first quarter of 2006, net income for
that period would have been PHP179 million.  Compared to that
level, net income this year would still be higher by 197% or by
PHP353 million.

The other factors that improved the bottom line were:

   *3.7% sales growth to 6,039 gWh; and

   *49.1% decrease in unrecoverable purchased power to
    PHP494.46 million.

Unappropriated retained earnings continued to improve,
recovering from a deficit of PHP2.12 billion in the first
quarter of 2006 to a positive balance of PHP10.92 billion in
2007.

On the robust electricity volume growth of 3.7%, revenues
increased by 15.8% from PHP41.61 billion last year to PHP48.20
billion this year.

Total expenses increased by 10.7% to PHP47.40 billion, caused by
the rise in purchased power cost and operations and maintenance
expenses by 16.0% and 20.7%, respectively.
However, these increases were offset by declines in other
expense items such as interest and other financial charges by
30.1%; taxes other than income tax by 56.4%; depreciation and
amortization by 2.4%; and, provision for disallowed receivables
by 6.3%.

Purchased power cost increased to PHP42.72 billion, the
components of which were:

   * Recoverable purchased power cost (cost up to the 9.5%
     system loss cap) - increased by 17.7% from PHP35.87 billion
     in 2006 to PHP42.23 billion in 2007.

   * Unrecoverable purchased power cost (system loss in excess
     of the cap) - dropped by 49.1% from PHP 971.63 million to
     PHP494.46 million this year.  Operations and maintenance
     costs increased to P 2.83 billion mainly due to additional
     pension provisions from PHP301.28 million in 2006 to
     PHP813.76 million in 2007.

As a result of the net income in the first quarter of 2007, net
income per common share (excluding deprecation on appraisal
increase) reached PHP0.533.  This was an improvement of 71.2%
from a net loss per common share of PHP0.749 last year.

In the first quarter of 2007, Meralco invested PHP1.29 billion
in capital expenditures, 22.5% more than the PHP1.06 billion
last year.  These investments were primarily used to address
customer growth, correct overloaded facilities, meet customer
service requirements, and reduce system loss.

Energy Sales

Energy sales for the first quarter of 2007 increased 3.7% to
6,039 gWh compared to the same period last year. Sales rose
despite lower humidity (72.66% in 2007 vs. 77.43% in 2006) and
shorter average billing days (89.50 days in 2007 vs. 89.98 days
in 2006) compared to last year.

Significant increases in energy sales by the Commercial segment
of 6.1% to 2,294 gWh and Industrial segment of 4.1% to 1,761 gWh
were the main catalysts of this overall growth.

Energy consumption of the Residential segment modestly grew by
0.7% to 1,949 gWh, reversing declines in three consecutive
quarters.

Commercial sales accounted for 38% of total energy sales in
2007, up from 37.1% in the previous year. The share of
Industrial sales also increased to 29.16% from 29.05%, while
that of Residential sales went down to 32.28% in 2007 from
33.23% in the previous year.

Sales growth in the Commercial segment was driven by the real
estate sub-segment which expanded by 12.1%. This was followed by
private services at 6.7% and retail trade at 3.6%.

Real estate growth was largely attributed to the consumption of
new buildings operating since the last quarter of 2006. For the
first quarter of this year, a total of 11 new real estate
developments with loads of 500 KW and above (e.g. Cyberzone in
Filinvest Corporate City; Serendra & HSBC in Bonifacio Global
City) were energized. The buildings, with an aggregate applied
capacity of 9.5MW, are expected to contribute an estimated 5.5
gWh upon their full operation.

Business Process Outsourcing (BPO), which includes call centers,
also continued to fuel the expansion in this subsegment as five
newly energized call centers in 2006 contributed 5.1 gWh in the
first quarter of 2007. A total of 17 new BPO projects in our
franchise with an aggregate applied load of 24.5 MW are expected
to further increase sales.

Growth in private services was due to the increased consumption
of business services and private educational institutions, which
rose by 12.5% and 12.2%, respectively.

Retail trade growth, on the other hand, was spurred by the full
operation of newly opened malls (SM Mall of Asia, SM
Supercenter, SM Hypermart, Robinsons Malls at Novaliches
and Cainta).

As of the end of the first quarter of 2007, a total of 76 major
shopping malls (with at least 1MW in demand) operated within the
Meralco franchise.  These malls accounted for 312 gWh or 13.6%
of the total Commercial sales for the quarter.

Industrial sales posted a 4.1% increase from last year. Food
manufacturing, plastic products, and fabricated metals were the
main drivers of this growth, rising by 7.8%, 4.1%, and
23.1%respectively.  Although fabricated metals posted the
highest increase, its contribution to total industrial sales is
only 3.7%, vs. 15.9% for food and 14.6% for plastic products.

The increase in food manufacturing was mainly due to the
increased operations of core customers, notably Ajinomoto
Phils.; Nestle, Inc.; Monde Nissin and Zesto Corporation with an
aggregate increase of 10.4 gWh. The fabricated metals sub-
segment's growth was the result of increased consumption by
steel companies such as Midland Steel and Sonic Steel, with a
combined increase in consumption of 4 gWh.

Residential sales increased in the first quarter of 2007 despite
the rise in residential rates due to the full removal of the
interclass subsidy in November 2006. A higher average
temperature in the first quarter of 2007 at 26.61 degrees
celsius compared to 26.46 degrees in 2006 contributed to this
segment's higher energy consumption.

Average Retail Rate

The average retail rate for the month of March 2007 went down to
PHP7.75/kWh from PHP8.03/kWh in the same period of 2006. On a
per customer class basis, the average retail rates for the month
of March 2007 compared to March 2006 were:

                                Average Rate  (P/kWh)
   Customer Class              March 2006   March 2007
                               ----------   ----------
   Residential                      8.73         8.70
   Lifeline                         5.80         6.01
   Non-Lifeline                     9.21         9.15
   Commercial                       8.18         7.70
   GS, Small and Medium             8.77         8.43
   Large                            7.87         6.69
   Very Large                       7.37         6.79
   Industrial                       7.00         6.71
   Small and Medium                 8.37         8.14
   Large                            7.36         6.93
   Very Large                       6.82         6.32
   Extra Large                      6.41         6.09
                               ----------   ----------
   T O T A L                        8.03         7.75

The company's first quarter financials can be downloaded at:

         http://bankrupt.com/misc/meralco1q.pdf

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

                          *     *     *

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

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


UNION BANK: Concerned Over Central Bank's Liquidity Mop Up Plan
---------------------------------------------------------------
Union Bank of the Philippines has expressed concerns over moves
of the Bangko Sentral ng Pilipinas to mop up excess liquidity in
the system beginning May 10, 2007, the Manila Standard relates
citing a senior central bank official.

According to the Standard, the BSP will be introducing three new
measures aimed to mop up excess liquidity in the system arising
mainly from the remittances of Filipino migrant workers and
portfolio investments, one of which involves encouraging the
GSIS, the Social Security System and other government-owned and
-controlled corporations to deposit their funds with the central
bank.

The Standard explains that UnionBank has some PHP17.677 billion
in government deposits, the bulk of which comes from the
Government Service Insurance System.

Union Bank of the Philippines -- http://www.unionbankph.com/--   
offers a wide range of products and services to both corporate
and individual clients.  Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance.  It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.

Fitch Ratings affirms Union Bank of the Philippines' ratings at
individual C/D and support 4 after a review of the bank.


UNION BANK: Sells 90 Million New Common Shares
----------------------------------------------
Union Bank of the Philippines is selling some 90 million in new
common shares to the public this week in order to raise some
US$100 million through a combination of a public offer and a
stock rights offer, the Manila Standard reports.

The report relates that the bank has tapped Macquarie Securities
(Asia) Pte Ltd. as international lead manager and bookrunner and
ATR Kim Eng Capital Partners Inc. as domestic issue manager and
lead underwriter.

Trading of UnionBank shares will be stopped from April 26 to May
9 with pricing of the new shares to be known on April 26.  The
new shares could be listed as early as May 10 but not later than
June 10.

Union Bank of the Philippines -- http://www.unionbankph.com/--   
offers a wide range of products and services to both corporate
and individual clients.  Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance.  It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.

Fitch Ratings affirms Union Bank of the Philippines' ratings at
individual C/D and support 4 after a review of the bank.


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

IMAGEWARE SYSTEMS: Annual Shareholders Meeting Sets on Sept. 19
---------------------------------------------------------------
ImageWare(R) Systems Inc. will hold its annual shareholders
meeting at 10:00 a.m. PT, on Sept. 19, 2007, at the Radisson
Suite Hotel - Rancho Bernardo, located at 11520 West Bernardo
Ct. in San Diego, California.

ImageWare's Board of Directors has set Aug. 10, 2007, as the
date of record for this meeting.  All shareholders who own
ImageWare common stock on Aug. 10, 2007 should expect to receive
meeting materials that include an annual report on Form 10K,
proxy materials, and a ballot.

At Dec. 31, 2006, ImageWare Systems reported cash of
approximately $940,000.  On March 12, 2007, ImageWare Systems
received net proceeds of approximately $1.5 million in a private
placement of Series D Convertible Preferred Stock and warrants.  
In addition, the company received approximately $1.1 million in
proceeds from the exercise of warrants during the quarter ended
March 31, 2007.

                    About ImageWare Systems

ImageWare Systems, Inc. (AMEX:IW) -- http://www.iwsinc.com/--  
is the leading global developer of digital imaging,
identification and biometric software solutions for the
corporate, government, law enforcement, professional
photography, transportation, education and healthcare markets,
among others.  ImageWare's secure credential and biometric
product lines are used to produce ID cards, driver licenses,
passports, national medical health cards, national IDs and more.  
The company's law enforcement and biometric product lines
provide the public safety market with booking, investigative and
identification solutions that can be accessed and shared via PC,
Web and wireless platforms.  ImageWare's professional digital
imaging product line provides professional photographers with
automated, in-studio and mobile solutions to facilitate the
transition from film-based photography to digital imaging.  
Founded in 1987, ImageWare is headquartered in San Diego, with
offices in Canada, Europe and Singapore.

                        Going Concern Doubt

Stonefield Josephson, Inc., in San Diego, California, raised
substantial doubt about ImageWare Systems' ability to continue
as a going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2005.  The
auditor pointed to the company's substantial net losses and
substantial monetary liabilities in excess of monetary assets,
and had an accumulated deficit of US$64,321,551.


SAVVIS INC: March 31 Balance Sheet Upside-Down by US$13 Million
---------------------------------------------------------------
SAVVIS, Inc.'s balance sheet as of March 31, 2007, reflected
total assets of US$640.2 million and total liabilities of
US$653.7 million, resulting in a total stockholders' deficit of
US$13.5 million.

The company's revenue for the first quarter of 2007 totaled
US$205.2 million.  Net income was US$114.5 million for the first
quarter of 2007, as compared with a net loss of US$6.8 million
for the first quarter in the previous year.  Income from
operations, which included US$125.2 million from the gain on the
sale of non-strategic assets, was US$139 million in the first
quarter 2007.

First quarter operating cash flow was US$28.3 million, and cash
capital expenditures were US$35.8 million, of which US$12.7
million was for previously announced growth projects, including
the build-out of four new data centers and SAVVIS' next-
generation network.  Total cash and cash equivalents were
US$221.6 million at March 31, 2007.

Results for the first quarter of 2007 included a US$125.2
million gain on the sale of non-strategic assets, and US$3.6
million of non-recurring, colocation revenue related to the
resolution of a contractual dispute that had been reserved for
in 2006.  Excluding the impact of these non-recurring items:

    * first quarter 2007 revenue would be US$201.6 million, up
      12% from the same period a year ago and essentially flat,
      as compared with the prior quarter;

    * gross profit, defined as total revenue less cost of
      revenue, would be US$84.9 million, up 27% from the same
      period a year ago and 3% from the prior quarter, and would
      be 42% of current-quarter revenue; and

    * income from operations would be US$10.1 million, as
      compared with US$3.7 million in the same period a year ago
      and US$11.6 million in the prior quarter.

Chief executive officer Phil Koen said, "Our first quarter
financial results reflect continued strong growth in SAVVIS'
core revenue from hosting services, with managed hosting revenue
up 37% from a year ago, and 4% from last quarter.  Our
customers, and industry analysts, agree that SAVVIS provides a
unique value proposition in offering IT infrastructure as a
service.  Our strong Adjusted EBITDA performance in the quarter
demonstrates the success of the SAVVIS business model in
generating margin improvement."

                             Cash Flow

Net cash provided by operating activities was US$28.3 million in
the first quarter.  Cash capital expenditures for the quarter
totaled US$35.8 million, which included US$12.7 million for
previously announced growth projects including the next-
generation network and the build-out of four new data centers.  
SAVVIS' cash position at March 31, 2007, was US$221.6 million,
as compared with US$98.7 million at Dec. 31, 2006, and US$49.6
million at March 31, 2006.

                        Financial Outlook

Chief financial officer Jeff Von Deylen said, "This year is a
transitional period for SAVVIS, as we undertake two critical
growth projects: the deployment of our next-generation network
and the build-out of four new data centers.  The sale of non-
strategic assets, completed in January, will fund a significant
portion of those projects.  Continued growth in our hosting
revenue in the first quarter reflects our expectation that
hosting will drive SAVVIS' financial performance improvements in
2007."

The company's current expectations for 2007 financials include
total revenue in a range of US$820 million to 835 million and
cash capital expenditures of US$340 million to 350 million.

                Stockholders' Deficit at Dec. 2006

SAVVIS Inc.'s balance sheet at Dec. 31, 2006, showed total
assets of US$467,019,000 and total liabilities of US$605,354,000
resulting in a total stockholders' deficit of US$138,335,000.

                        About SAVVIS Inc.

Headquartered in Town & Country, Missouri, SAVVIS, Inc. (NASDAQ:
SVVS) -- http://www.savvis.net/-- provides managed and  
outsourced IT services that focuses exclusively on IT solutions
for businesses.  With an IT services platform that extends to 47
countries, SAVVIS has over 5,000 enterprise customers and leads
the industry in delivering secure, reliable, and scalable
hosting, network, and application services.  These solutions
enable customers to focus on their core business while SAVVIS
ensures the quality of their IT systems and operations.  SAVVIS'
strategic approach combines virtualization technology, a global
network and 25 data centers, and automated management and
provisioning systems.  The company has sales offices in the
U.K., and Singapore.

At Sept. 30, 2006, the company's balance sheet showed a
stockholders' deficit of US$141,675,000, as compared to a
deficit of US$132,009,000 at Dec. 31, 2005.


SERENA SOFTWARE: Posts US$57-Mil. Net Loss in Fiscal Year 2007
--------------------------------------------------------------
Serena Software, Inc. disclosed a net loss for fiscal year 2007
of US$57,212,000, as compared with a net income of US$35,267,000
in fiscal year 2006.  Included in the fiscal year 2007 results
were US$43,800,000 of transaction costs related to the merger
transaction involving Silver Lake Partners.

For fiscal year 2007, total revenue was US$255,291,000, software
license revenue was US$86,520,000, maintenance revenue was
US$134,605,000, and service revenue was US$34,166,000.  Excluded
from revenue are US$1,500,000 and US$12,500,000 of maintenance
revenue written down in the purchase accounting for the
company's merger with Spyglass Merger Corporation, an affiliate
of Silver Lake Partners, for the fourth quarter and full fiscal
year of 2007, respectively.

As of Jan. 31, 2007, the company posted total assets of
US$1,347,447,000 and total liabilities of US$860,827,000,
resulting in a total stockholders' equity of US$486,620,000.  
Total cash and equivalents as of Jan. 31, 2007, was
US$68,455,000 and total deferred revenue was US$78,401,000.

The company's balance sheet for the fiscal year 2007 also showed
strained liquidity with total current assets of US$125,005,000
and total current liabilities of US$145,907,000.

                   Fourth Quarter 2007 Results

Total revenue was US$76,534,000 in the fourth quarter of fiscal
year 2007 and represented am increase over total revenue of
US$70,137,000 in the fourth quarter of fiscal year 2006.  Net
income for the fourth quarter 2007 was US$5,180,000, as compared
with a net income for the fourth quarter of the previous year of
US$8,101,000.

                    About Serena Software

Headquartered in San Mateo, California, Serena Software, Inc.
-- http://www.serena.com/-- is a software provider focused  
solely on the design, development, marketing and support of
software used to manage and control change in organizations.

The company has its international headquarters in Singapore, and
the United Kingdom.

Serena Software carries Moody's Investors Service's B2 Corporate
Family Rating.


SPECTRUM BRANDS: Fitch Holds CCC Issuer Default Rating
------------------------------------------------------
Fitch Ratings has affirmed the ratings of Spectrum Brands, Inc.
as:

    -- Issuer default rating 'CCC';

    -- US$1.6 billion 6-year Credit Agreement 'B/RR1';

    -- US$700 million 7 3/8% Senior Subordinated Note due 2015
       'CCC-/RR5'

    -- US$350 million 11.25% Variable Rate Toggle Interest
       pay-in-kind Senior Subordinated Note due 2013 'CCC-/RR5'

The Credit Agreement and Variable Rate Toggle Interest Note have
relatively the same terms and conditions and are rated the same
as the facilities being replaced.  The Outlook remains Negative.

                      About Spectrum Brands

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


PETROLEO BRASILEIRO: Inks Cooperation Deal with Enap
----------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA and
Chilean counterpart Enap said in a joint statement that they
have signed a cooperation deal to analyze projects and
businesses in the energy sectors of the two nations.

Business News Americas relates that the deal focuses on
biofuels, liquefied natural gas and oil exploration in Brazil,
Chile and other areas of the Pacific.

Agencia Brasil notes that Brazil's President Luiz Inacio Lula da
Silva and Chile's President Michelle Bachelet were scheduled to
sign memorandums of understanding on April 26 at La Moneda
Palace, in Santiago, Chile.  The MOUs cover:

          -- science and technology,
          -- social security,
          -- biofuels,
          -- education, and
          -- tourism.

                   About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/-- was founded in    
1953.  The company explores, produces, refines, transports,
markets, and distributes oil and natural gas and power to
various wholesale customers and retail distributors in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's Investors Service.

Fitch Ratings assigned BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.

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


PETROLEO BRASILEIRO: Inks Policies Promotion Deal with 2 Groups
---------------------------------------------------------------
Brazil's state-run oil firm Petroleo Brasileiro SA has signed a
deal with the Brazilian chapters of environmental non-government
organizations Greenpeace and WWF to promote sustainable
development policies, Business News Americas reports.

Greenpeace, WWF, Petroleo Brasileiro and Votorantim and Alcoa --
two other firms that entered the deal with the two organizations
-- said in a joint statement that the deal is also aimed at
boosting the presence of renewable sources in the Brazilian
energy matrix.

Greenpeace Brazil Campaign Manager Marcelo Furtado said in a
press conference, "We want to show that if companies and civil
action groups can sit together at a table, so can governments.  
There is vacuum of leadership on this issue and we have to
create new leaders."

According to BNamericas, the agreement involves 10 measures that
need to be taken.  Four of the measures are:

          -- a call to end deforestation,

          -- including more renewable sources in Brazil's energy
             mix,

          -- launching of a campaign to reduce carbon emissions,
             and

          -- calls for government cooperation.

The statement says that the Greenpeace, WWF, and the companies
will promote power efficiency programs and develop a national
market to stimulate renewable sources like solar, wind and
small-scale hydro.

BNamericas adds that the Brazilian chapter of the World Business
Council for Sustainable Development supports the deal.

"We have three companies initially committed to the pact but
we're talking with several others," CEBDS President Fernando
told BNamericas.

                   About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/-- was founded in    
1953.  The company explores, produces, refines, transports,
markets, and distributes oil and natural gas and power to
various wholesale customers and retail distributors in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's Investors Service.

Fitch Ratings assigned BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.

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


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

DAIMLERCHRYSLER AG: Chrysler Sale Threatens Marysville Deal
-----------------------------------------------------------
The Chrysler Group's US$700 million investment in Marysville and
the 1,000 jobs that come with it may unravel if DaimlerChrysler
AG's plan to sell the unit pushes through, Jim Bloch writes for
The Voice.

The TCR-Europe reported on April 19 that the Chrysler Group
will boost the Michigan economy with an investment of
US$1.78 billion, much of it to start a multi-product
"Powertrain Offensive."  The initiative will consist of:

   * US$730 million for a new plant in Trenton, Mich., to
     produce the "Phoenix" family of V-6 engines;

   * US$700 million in Marysville, Mich., to build a new axle
     plant;

   * US$300 million in the Sterling Heights (Mich.) Assembly
     Plant (SHAP) to expand its paint shop; and

   * US$50 million for retooling of Warren Truck Assembly Plant
     and Warren Stamping Plant for future product.

The new axle plant in Marysville will incorporate engineering
and development for the creation of a new family of axles that
provide better fuel economy.  In addition, the common axle will
allow the company to consolidate the number of axles for better
economies of scale.

The city of Marysville is planning to buy the property for US$3
million, annex it from the township, and then give the land to
Chrysler, The Voice relates.  However, the deal to build the
axle plant in Marysville could fall through in the event of
Chrysler's sale.  The agreement includes a hold-harmless clause,
under which the city would get its money back for the property
and any other ancillary expenses should something go haywire.

The Economic Development Alliance of St. Clair County, which
played a key role in putting the deal together, currently
controls the option on the farmland, The Voice states.  The city
hopes to regain its investment through Chrysler's taxes in the
next three to five years.

                      About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- 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 operations are located in: Australia,
Canada, Mexico, United States, Argentina, Brazil, Venezuela,
China, India, Indonesia, Japan, Vietnam, and Thailand.

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.


                            *********

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.  Azela Jane Taladua, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Tara Eliza Tecarro,
Freya Natasha Fernandez, Frauline Abangan, 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 ***