TCRAP_Public/070509.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

              Wednesday, May 9, 2007, Vol. 10, No. 91

                            Headlines

A U S T R A L I A

AMP BANK: Moody's Upgrades Bank Financial Strength Rating to D+
ARAB BANK: Moody's Upgrade Bank Financial Strength Rating to D+
BALDWIN TRANSFORMERS: Final Meeting Set for June 4
CARDNO LIMITED: Expands Services by Acquiring SPLAT
CONSOLIDATED BULK: Members Resolve to Liquidate Business

DARNOC PTY: Names Anthony Schiffmann as Liquidator
GRANT'S INVESTMENTS: Members Pass Resolution to Wind Up Firm
HUTCHISON: Shareholders OKs Raising AU$2.85 Bil. to Pay Debt
J. D. ADAMS: Members Opt for Voluntary Wind-Up
KWIKTURN PTY: Creditors Agree on Voluntary Liquidation

LOGAN MAY: Members to Receive Wind-Up Report on June 4
NIGHTSWAN PTY: Will Declare First and Final Dividend on May 22
QUEENSLAND BUILDERS: Undergoes Voluntary Liquidation
ROOFIX INDUSTRIES: Appoints Moloney and Geroff as Liquidators


C H I N A   &   H O N G  K O N G

BANK OF CHINA(HK): Moody's Lifts Financial Strength Rating to C+
BANK SINOPAC: Mody's Keeps Financial Strength Rating at D
BENQ CORP: Shareholders to Approve Spin-Off Plan on June 15
CHINA BEER: Members' Final Meeting Set for June 4
CITIC KA WAH: Moody's Hikes Financial Strength Rating to C-

GOLDEN FORCE: Appoints Chang Pin Benjamin as Liquidator
HELINGER LIMITED: Liquidators Quit Posts
ICBC: Considers Purchasing Travelex
NATUZZI ASIA: Liquidator to Present Wind-Up Report on June 4
P. D. E. LIMITED: Court to Hear Wind-Up Petition on June 6

PR NEWSWIRE ASIA: Receiving Proofs of Debt Until June 4
RIHAND INDUSTRIAL: Subject to Lau Sui's Wind-Up Petition
SLI CONSULTING: Members Opt to Wind Up Operations
SOUND YEAR: Placed Under Voluntary Liquidation
TOPVILLE INDUSTRIAL: High Court to Hear Wind-Up Petition Today

ZTE CORP: Amsterdam Holdings Says Phil. Broadband Deal Illegal


I N D I A

EASTMAN KODAK: Posts US$151 Million Net Loss in First Quarter
GENERAL MOTORS: Earns US$62 Million in Quarter Ended March 31
GENERAL MOTORS: April Sales Down 2.2%; Rental Sales Down 36%
JCT ELECTRONICS: Net Loss Narrows to INR171.4MM in March 31 Qtr.
KARNATAKA BANK: Board to Meet on May 19 to Consider Financials

KINETIC ENGINEERING: Narrows Net Loss to INR63.2 Million
KINETIC ENGINEERING: Micro Age Increases Stake to 11.96%
VISTEON CORP: March 31 Balance Sheet Upside-Down by US$106 Mil.


I N D O N E S I A

BANK MANDIRI: To Finance Cikampek Paliaman Toll Road Project
BLT Finance: Fitch Assigns 'BB-' Rating to US$400MM Unsec. Notes
FOSTER WHEELER: To Hold 1Q 2007 Earnings Conference Call Today
INDOSAT: To Increase Size of Planned Bond Issue to IDR3 Trillion
MCDERMOTT INT'L: Earns US$158.1 Million in First Quarter 2007

MCDERMOTT INT'L: Unit Acquires Marine Mechanical for US$75MM
NORTEL NETWORKS: Invests US$5 Million in Irish Customer Center
NORTEL NETWORKS: Posts US$103 Million Net Loss in 1Q 2007
PHILLIPS-VAN HEUSEN: Three Long-Time Directors to Retire
TELKOMSEL: Chooses Tektronix for Rollout of Mobile Technology


J A P A N

FENDER MUSICAL: S&P Holds B+ Rating & Revises Outlook to Stable
FORD MOTOR: U.S. Sales Decreased 13% to 228,623 in April
RESONA: Moody's Upgrades Bank Financial Strength Rating to D+
SAITAMA RESONA: Moody's Raises Financial Rating to D From D-


K O R E A

BOWATER INCORPORATED: Posts US$35 Million Net Loss in 1Q 2007
CITIBANK KOREA: Ordered to Pay Menstruation Allowance
DRESSER INC: Riverstone-Led Consortium Completes Takeover


M A L A Y S I A

AMBANK BHD: Moody's Holds Financial Strength Rating at D-
CIMB BANK: Moody's Affirms Financial Strength Rating at D
DCEIL INTERNATIONAL: Bursa Starts Securities Delisting Exercise
EON BANK: Moody's Affirms Financial Strength Rating at D
RHB BANK: Moody's Keeps D Rating on Bank's Financial Strength

TENAGA NASIONAL: Malaysia Lifts 25% Cap on Foreign Ownership


N E W  Z E A L A N D

BIG SKY: Court Taps Whittfield and Finnigan as Liquidators
DIVE MECHANIX: Appoints Price and Horton as Liquidators
DIVETEC (NZ): Shareholders Opt to Liquidate Business
GRAYSHEILD LTD: Appoints Craig Emerson Speakman as Liquidator
KOPUTAHI LTD: High Court to Hear Wind-Up Petition on May 14

NATURE'S FOREST: Placed Under Liquidation
PAPER VENTURES: Subject to CIR's Wind-Up Petition
R & K BUILDERS: Taps Shephard and Dunphy as Liquidators
SAFETY PROJECTS: Faces CIR's Wind-Up Petition
TEBROC CONSULTANTS: Wind-Up Petition Hearing Set for May 14


P H I L I P P I N E S

BANK OF THE PHIL. ISLANDS: Earmarks PHP2 Bil. For New UK Branch
BAYAN TELECOMMUNICATIONS: Turns Around with PHP5-Bil. Net Income
BENPRES HOLDINGS: Sycip Gorres Velayo Raises Going Concern Doubt
CHINA BANKING: Board OKs Dividends & Increase in Capital Stock
CHINA BANKING: Posts a PHP3.54-Billion Net Income for 2006

METROPOLITAN BANK: Declares a 3% Dividend Payout
METROPOLITAN BANK: Shareholders Elect Antonio Abacan As Chairman
PHIL. NATIONAL BANK: Sets Annual Stockholders' Meeting on May 29
PHILODRILL CORP: Buys 4.07 Billion Phoenix Gas Shares
PICOP RESOURCES: Sets Annual Stockholders' Meeting on June 27

RIZAL COMMERCIAL: First Quarter Net Income Reaches PHP828 Mil.
SECURITY BANK: Posts PHP758.80 Mil. Net Income in First Qtr.


S I N G A P O R E

LIONS OF ASIA: Court Enters Wind-Up Order
LIONS OF IND TRADING: Court Enters Wind-Up Order
PETROLEO BRASILEIRO: Starts Shipping Ethanol to U.S.
VALEANT PHARMA: Elects G. Mason Morfit to Board of Directors


T H A I L A N D

ARVINMERITOR INC: Posts US$94 Million Loss for 2Q Ended Mar. 31
DAIMLERCHRYSLER: Magna is Chrysler's Serious Bidder, Paper Says
DAIMLERCHRYSLER: Chrysler's April 2007 Sales Up 17%
OMNOVA SOLUTIONS: Fitch Affirms and Withdraws Low-B Ratings
PICNIC CORP PCL: Elects 3 Directors & Names 3 Auditors for 2007

SAFARI WORLD: Re-Elects 3 Directors & Appoints Auditors for 2007
TOTAL ACCESS COMMS: Earns THB1.6 Billion in First Quarter 2007


* Upcoming Meetings, Conferences and Seminars

     - - - - - - - -

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

AMP BANK: Moody's Upgrades Bank Financial Strength Rating to D+
--------------------------------------------------------------
Moody's Investors Service published Friday the rating results
for banks in Australia as part of the application of its refined
joint default analysis and updated bank financial strength
rating methodologies.  Among the banks rated was AMP Bank
Limited.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.  

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.  Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.  

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.  

The updated BFSR methodology led to one-notch upgrades of the
BFSRs for ten Australian banks, reflecting the solid franchises
and good financial fundamentals many of these banks possess
relative to global peers.  

Moody's assesses systemic support levels for Australian banks
using its high country support guideline.  This guideline takes
into consideration the historic evidence of support for banks,
as well as the size, strength, and degree of fragmentation of
the banking system.  Based on this framework, the deposit
ratings of the four largest banks, Australia and New Zealand
Banking Group, Commonwealth Bank of Australia, National
Australia Bank, and Westpac Banking Corporation, were raised by
2 notches, to Aa1.  This reflected the banks' unchanged BFSRs of
B as well as Moody's assessment of their very high probability
of systemic support given the banks' importance to the
Australian financial system.  The ratings of five other
Australian banks were also raised by two notches, although in
those cases the 2 notches reflected both a higher BFSR as well
as Moody's assessment of the likelihood of systemic or parental
support for those banks.  And the ratings of five Australian
banks were raised by one notch, in most cases due solely to a
higher BFSR.

The specific ratings changes for AMP Bank are:

   - BSFR has been upgraded to D+ from D;

   - Foreign Currency Deposit Ratings remain unchanged at
     A2/Prime-1;  

   - The Long Term Local Currency Debt Rating for senior debt
     obligations remains unchanged at A2;

   - Local Currency Deposit Ratings of A2/Prime-1 have been
     assigned;

   - All ratings are assigned stable outlooks.


ARAB BANK: Moody's Upgrade Bank Financial Strength Rating to D+
--------------------------------------------------------------
Moody's Investors Service published on May 4, 2007, the rating
results for banks in Australia as part of the application of its
refined joint default analysis and updated bank financial
strength rating methodologies.  Among the banks rated was Arab
Bank Australia Limited.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.

The updated BFSR methodology led to one-notch upgrades of the
BFSRs for ten Australian banks, reflecting the solid franchises
and good financial fundamentals many of these banks possess
relative to global peers.

Moody's assesses systemic support levels for Australian banks
using its high country support guideline. This guideline takes
into consideration the historic evidence of support for banks,
as well as the size, strength, and degree of fragmentation of
the banking system.

The specific ratings changes for Arab Bank are:

   - BSFR has been upgraded to D+ from D;

   - Foreign Currency Deposit Ratings have been upgraded to
     A3/Prime-1 from Baa1/Prime-2;

   - Local Currency Deposit Ratings of A3/Prime-1 have been
     assigned;

   - All ratings are assigned stable outlooks.


BALDWIN TRANSFORMERS: Final Meeting Set for June 4
--------------------------------------------------
The members and creditors of Baldwin Transformers Australia Pty
Ltd will have their final meeting on June 4, 2007, at 9:15 a.m.,
to hear the liquidator's report about the company's wind-up
proceedings and property disposal.

The meeting will be held in the office of Brooke Bird & Co,
Chartered Accountants, at 471 Riversdale Road in East Hawthorn
3123, Australia.

                   About Baldwin Transformers

Baldwin Transformers Australia Pty Ltd is a distributor of
electrical apparatus, equipment wiring supplies and construction
materials.  The company is located in Victoria, Australia.


CARDNO LIMITED: Expands Services by Acquiring SPLAT
---------------------------------------------------
Cardno Limited has further expanded its physical infrastructure
services discipline base by acquiring S.P.L.A.T., a Brisbane and
Gold Coast based landscape architecture, urban design and
environmental management consultancy.

Cardno S.P.L.A.T. is expected to contribute AU$4 million in
revenue annually and be EPS positive.  The acquisition will be
funded by a mix of cash and shares.

Cardno S.P.L.A.T. will add a new dimension to Cardno's
multidisciplinary professional services by offering landscape
architecture and expanded environmental and urban design
services.

Cardno Limited Managing Director Andrew Buckley said S.P.L.A.T.
was an excellent strategic fit, which will complement Cardno's
existing civil engineering urban development business.

"The purchase of S.P.L.A.T. aligns with Cardno's strategic focus
of acquiring businesses which enhance current infrastructure
services capabilities and provide additional cross selling
opportunities to further grow Cardno's revenue and profit," Mr.
Buckley said.

Mr. Buckley added that S.P.L.A.T.'s current client base would
now be able to access the extensive resources of the Cardno
group and as a result of the acquisition, Cardno will now offer
a complete design solution for land development and
infrastructure projects.

"With high demand from the urban development sector,
particularly in Queensland, Cardno S.P.L.A.T.'s 40-staff are a
welcome addition," said Mr Buckley.

                           About SPLAT

Headquartered in Brisbane, Australia, S.P.L.A.T --
http://www.splat.net.au/-- is a landscape architecture, urban  
design and environmental management consultancy.  They offer:

    * Site and Master Planning
    * Urban Design
    * Conceptual Design
    * Contract Documentation
    * Detailed Design
    * Contract Administration
    * Landscape Maintenance Guidance
    * Environmental Management

                      About Cardno Limited

Headquartered in Queensland, Australia, Cardno Limited --
http://www.cardno.com.au/-- is an integrated professional  
services provider in the physical and social infrastructure
sectors.  The Company's services include civil engineering
consultancy, management and environmental services, as well as
project management of international development assistance
programs.  Its physical infrastructure capabilities include
building and property; coastal, ocean and marine; environment
and water; urban development; transport, and water and
wastewater management.  Its social infrastructure services
include solutions in education, governance, healthcare,
environmental and natural resource management, and post-conflict
restoration.  During the fiscal year ended June 30, 2006, it
acquired EOP Holdings Pty Ltd, Agrisystems Limited, Barton
Enterprises Pty Ltd and its subsidiaries.  In April 2006, the
Company acquired the professional services firm, Forbes Rigby,
and in September 2006, it acquired Stanwill Consulting
Engineers.

The Troubled Company Reporter - Asia Pacific, on Jan 30, 2007,
listed Cardno Limited's bond with a 9.000% coupon and a June 30,
2008 maturity date as distressed.


CONSOLIDATED BULK: Members Resolve to Liquidate Business
--------------------------------------------------------
The members of Consolidated Bulk Handling Pty Ltd met on
April 19, 2007, and decided to liquidate the company's business.

Ian Richard Hall and David Clement Pratt were appointed as
liquidators.

The Liquidators can be reached at:

         Ian Richard Hall
         David Clement Pratt
         Level 15 Riverside Centre
         123 Eagle Street
         Brisbane, Queensland 4001
         Australia

                     About Consolidated Bulk

Consolidated Bulk Handling Pty Ltd operates miscellaneous
business credit institution.  The company is located in
Queensland, Australia.


DARNOC PTY: Names Anthony Schiffmann as Liquidator
--------------------------------------------------
The members of Darnoc Pty Ltd met on April 17, 2007, and
resolved to voluntarily wind up the company's operations.

Anthony Schiffmann was appointed as liquidator.

The Liquidator can be reached at:

         Anthony Schiffmann
         Chartered Accountant of BDO Kendalls
         Level 18, 300 Queen Street
         Brisbane, Queensland 4000
         Australia

                        About Darnoc Pty

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


GRANT'S INVESTMENTS: Members Pass Resolution to Wind Up Firm
------------------------------------------------------------
On March 14, 2007, the members of Grant's Investments Pty Ltd
passed a resolution winding up the company's operations and
Cameron Dyal was appointed as liquidator.

The Liquidator can be reached at:

         Cameron Dyal
         Suite 6, Level 1
         531 Sandgate Road
         Clayfield, Queensland 4011
         Australia

                   About Grant's Investments

Grant's Investments Pty Ltd is a distributor of electrical
appliances, television and radio sets.  The company is located
in Queensland, Australia.


HUTCHISON: Shareholders OKs Raising AU$2.85 Bil. to Pay Debt
------------------------------------------------------------
Hutchison Telecommunications disclosed late last week that its
shareholders approved plans to raise AU$2.85billion via a
renounceable rights issue of convertible preference shares,
according to Cellular-News, citing Lyndal McFarland of Dow Jones
Newswires.

Hutchison will use the proceeds to pay down debt related to its
third-generation mobile phone network to around AU$1.1 billion.

After completion of the rights issue, Hutchison expects its debt  
to be reduced to approximately AU0$1.1 billion, the Troubled
Company Reporter - Asia Pacific reported on March 20.

Hutchison expects to send a prospectus for the issue to
shareholders around May 17.

According to the report, under the proposed issue, shareholders
will be offered 20 convertible preference shares for every share
they hold, at 21 Australian cents each.

The offering is strongly supported by Hutchison Whampoa,
Hutchison's majority shareholder.  Depending of the takeup by
minority shareholders, Hutchison Whampoa could end up with as
much as 97.7% of Hutchison Australia.  However, it has indicated
it wants to maintain a listing on the Australian Stock Exchange,
the report concludes.

Headquartered in New South Wales, Australia, Hutchison
Telecommunications (Australia) Limited --
http://www.hutchison.com.au/-- is engaged in the ownership and   
operation of wideband code division multiple access (W-CDMA),
third-generation (3G) mobile network (branded 3) across the five
mainland capital cities and national capital, Canberra; the
ownership and operation of a code division multiple access
(CDMA) network (branded Orange) mobile in and around Sydney and
Melbourne, and a national paging and messaging service under the
Orange brand. 3 is part of the global telecommunication
operations of  Hutchison Whampoa Limited.  In February 2006,
Hutchison re-branded its CDMA network to 3 CDMA.  3 CDMA
provides customer with voice and basic messaging services.  3
also provides a range of paging, messaging and portable
information services.

The Troubled Company Reporter - Asia Pacific on April 20, 2007,
included in its Large Companies With Insolvent Balance Sheets
Column Hutchison Telecommunication with US$786.31 million in
stockholders' equity deficit.

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


J. D. ADAMS: Members Opt for Voluntary Wind-Up
----------------------------------------------
At a general meeting held on April 17, 2007, the members of
J. D. Adams Investments Pty Ltd resolved to voluntarily wind up
the company's operations.

Creditors who cannot prove their debts by May 11, 2007, will be
excluded from sharing in the company's dividend distribution.

The company's liquidators are:

         Morgan Lane
         Michael Peldan
         Messrs Worrells, Solvency & Forensic Accountants
         8th Floor, 102 Adelaide St.
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3225 4300
         Facsimile:(07) 3225 4311
         Web site: http://www.worrells.net.au


KWIKTURN PTY: Creditors Agree on Voluntary Liquidation
------------------------------------------------------
On April 19, 2007, the creditors of Kwikturn Pty Ltd agreed to
voluntarily liquidate the company's business and B. J. Marchesi
was appointed as liquidator.

Mr. Marchesi can be reached at:

         B. J. Marchesi
         Bent & Cougle Pty Ltd
         Chartered Accountants
         Level 5, 332 St Kilda Road
         Melbourne, Victoria 3004
         Australia

                       About Kwikturn Pty

Located in New South Wales, Australia, Kwikturn Pty Ltd is
involved with manufacturing industries.


LOGAN MAY: Members to Receive Wind-Up Report on June 4
------------------------------------------------------
The members of Logan May Pty Ltd will meet on June 4, 2007, at
9:00 a.m., to hear the liquidator's report about the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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

                        About Logan May

Located in Queensland, Australia, Logan May Pty Ltd is an
investor relation company.


NIGHTSWAN PTY: Will Declare First and Final Dividend on May 22
--------------------------------------------------------------
Nightswan Pty Ltd, which is in liquidation, will declare a first
and final dividend on May 22, 2007.

Creditors who were not able to file their proofs of debt before
March 30, 2007, will be excluded from sharing in the company's
dividend distribution.

The company's liquidator is:

        D. McLay
        Summerscorporate
        Next Building, Level 5
        16 Milligan Street
        Perth, Western Australia 6000
        Australia

                      About Nightswan Pty

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


QUEENSLAND BUILDERS: Undergoes Voluntary Liquidation
----------------------------------------------------
On April 18, 2007, the members of Queensland Builders Transport
Pty Ltd met and agreed to voluntarily liquidate the company's
business.

The company's liquidators are:

         Gregory Moloney
         Peter Geroff
         c/o Ferrier Hodgson (Queensland)
         Level 7, 145 Eagle Street
         Brisbane, Queensland 3000
         Australia

                   About Queensland Builders

Queensland Builders Transport Pty Ltd operates holding
companies.  The company is located in Queensland, Australia.


ROOFIX INDUSTRIES: Appoints Moloney and Geroff as Liquidators
-------------------------------------------------------------
At an extraordinary general meeting held on April 18, 2007, the
members of Roofix Industries Pty Ltd agreed to voluntarily wind
up the company's operations.

Gregory Moloney and Peter Geroff were appointed as liquidators.

The Liquidators can be reached at:

         Gregory Moloney
         Peter Geroff
         c/o Ferrier Hodgson (Queensland)
         Level 7, 145 Eagle Street
         Brisbane, Queensland 4000
         Australia

                    About Roofix Industries

Located in Queensland, Australia, Roofix Industries Pty Ltd
provides repair services.


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

BANK OF CHINA(HK): Moody's Lifts Financial Strength Rating to C+
----------------------------------------------------------------
Moody's Investors Services published on May 4, 2007, the rating
results for banks in Hong Kong as part of the application of its
refined joint default analysis (JDA) and updated bank financial
strength rating (BFSR) methodologies.

With the new methodologies, Bank of China (Hong Kong) Limited's
BFSR is changed to C+ from C- with stable outlook.  The Foreign
Currency Deposit Ratings are changed to Aa3/P-1 from A2/P-1 with
positive outlook.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.

The updated BFSR methodology has benefited the BFSRs of almost
half of the banks in Hong Kong.  The upgrades were mostly driven
by the solid financial fundamentals and the strong regulatory
and operating environments.

Moody's assesses support levels to Hong Kong banks using its low
country support guideline.  Moody's views Hong Kong as a low
support country, given the government's policy of non-
interventionism, past bailout history, and the size and strength
of the banking system.


BANK SINOPAC: Mody's Keeps Financial Strength Rating at D
---------------------------------------------------------
On May 4, 2007, Moody's Investors Service published the rating
results for banks in Taiwan as part of the application of its
refined joint default analysis and updated bank financial
strength rating methodologies.

With the new methodologies, Bank SinoPac's BFSR remains
unchanged at D+.  The Long-Term/Short-Term Local Currency
Deposit Ratings were assigned at Baa1/Prime-2.  The Long-
Term/Short-Term Foreign Currency Deposit Rating was upgraded to
Baa1/Prime-2, one notch up from Baa2/Prime-3.  The outlook for
all ratings is stable.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.

Based on this framework, the implementation of the JDA
methodology has led to the upgrade in the local currency deposit
ratings of several Taiwanese banks, mainly due to systemic
support.  Moody's assesses systemic support levels for banks in
Taiwan using its high country support guideline.  This guideline
takes into consideration the historic evidence of support for
banks, in addition to the size, strength and the degree of
fragmentation of the Taiwanese banking system.  The average
ratings uplift from the stand-alone baseline credit assessment
implied by the BFSR for all rated banks in Taiwan due to
systemic support was 3.6 notches.

In particular, wholly owned government policy banks received the
most uplift.  However, the ratings of both Bank of Taiwan and
Land Bank of Taiwan had already incorporated considerable
systemic support.  Their ratings were upgraded by only one and
two notches, respectively.  Their deposit ratings are now equal
to Taiwan's Local Currency Deposit Ceiling of Aa3.

In connection with the JDA rollout for rated banks, issuer
ratings for financial holding companies in Taiwan are
accordingly and mostly adjusted upwards.  In principle, bank-
dominated financial holding companies' ratings were one-notch
down from those of their bank subsidiaries, given Taiwan's high-
support stance towards the financial sector.

Extra notching (i.e. at most 2 notches for Taiwan), however, was
considered for those financial holding companies which either
show relatively high leverage or may provide financial support
to weaker or growing non-bank subsidiaries important to the
group in terms of business scale or earnings.


BENQ CORP: Shareholders to Approve Spin-Off Plan on June 15
-----------------------------------------------------------
Benq Corp.'s shareholders will meet on June 15, 2007, to decide
on the planned spin-off of its branded business and to rename
the company Jia Da Corp after the exercise, InfoWorld Daily
reports.

According to the report, the company's board of directors had
earlier approved the plan to spin off its branded business,
which step is seen as a bold attempt for a major turn-around.

As reported by the Troubled Company Reporter - Asia Pacific on
April 26, 2007, BenQ's board approved the spin-off after the
company posted its sixth straight quarterly loss due to its
ailing mobile phone business.  The TCR-AP said the spin-off is
set for Sept. 1, 2007.

InfoWorld relates that BenQ Mobile GmbH & Co. OHG's closing was
also the catalyst behind the currently proposed spin-off.  
"After the discontinuation of funding for the German mobile
phone subsidiary, BenQ's branded business structure has become
less complicated and the scale of the branded business has
become relatively small compared to our integrated manufacturing
service business," K.Y. Lee, the company's chairman, said in a
statement, according to the report.  "Therefore, it is a
straightforward decision to spin-off the branded business," he
added.

After the spin-off, BenQ's branded company will be positioned as
a fabless company with integration of 3C technology in the
fields of product design, mobile communications, mechanical and
material engineering, and network convergence technologies, the
report adds.  Meanwhile, all BenQ brand-related global sales and
marketing departments and related R&D units, as well as the
lifestyle design center and part of the advanced technology
center, will be transferred to the spun-off unit.

Jia Da Corp. will be positioned as a dedicated 3C integrated
manufacturing service provider focusing on the fields of
display, optoelectronic devices, mobile devices and infotainment
solutions, InfoWorld notes.  Mr. Lee will continue to serve as
chairman of the new company.

                          *     *     *

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

BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses.  The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.  BenQ Mobile has
lost market share against giant competitors.

A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after the company failed to secure a
buyer by the Dec. 31, 2006 deadline.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.  The
outlook on the long-term rating is negative.  At the same time,
Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.  The ratings reflect BenQ's continuing operating
losses from its handset operations and high leverage, and the
competitive nature and low profitability of the LCD monitor
industry.


CHINA BEER: Members' Final Meeting Set for June 4
-------------------------------------------------
The members of China Beer (H.K.) Company Limited will have their
final meeting on June 4, 2007, at 10:00 a.m., to receive a
report of the company's wind-up proceedings and property
disposal.

The meeting will be held in Room 905 on the 9th Floor of China
Resources Building at 26 Harbour Road in Wanchai, Hong Kong.


CITIC KA WAH: Moody's Hikes Financial Strength Rating to C-
-----------------------------------------------------------
On May 4, 2007, Moody's Investors Services published the rating
results for banks in Hong Kong as part of the application of its
refined joint default analysis (JDA) and updated bank financial
strength rating (BFSR) methodologies.

With the new methodologies, CITIC Ka Wah Bank Limited's BFSR is
changed to C- from D+.  The Foreign Currency Deposit Ratings are
changed to Baa1/P-2 from Baa2/P-3.  The Foreign Currency and
Local Currency Deposit Note/CD Program Ratings are changed to
Baa1/P-2 from Baa2/P-3. The Foreign Currency Debt Rating for
senior unsecured obligations is changed to Baa1 from Baa2, and
for subordinated obligations is changed to Baa2 from Baa3. The
outlook is stable.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.

The updated BFSR methodology has benefited the BFSRs of almost
half of the banks in Hong Kong.  The upgrades were mostly driven
by the solid financial fundamentals and the strong regulatory
and operating environments.

Moody's assesses support levels to Hong Kong banks using its low
country support guideline.  Moody's views Hong Kong as a low
support country, given the government's policy of non-
interventionism, past bailout history, and the size and strength
of the banking system.


GOLDEN FORCE: Appoints Chang Pin Benjamin as Liquidator
-------------------------------------------------------
The shareholders of Golden Force Limited resolved on April 23,
2007, to voluntarily liquidate the company's business and Chang
Pin Benjamin was appointed as liquidator.

Creditors are required to file their proofs of debt by June 8,
2007, to be included in the company's dividend distribution.

The company's liquidator is:

         Chang Pin Benjamin
         Messrs. Winston Chu & Co. of 2006
         One Pacific Place, 20th Floor
         88 Queensway
         Hong Kong


HELINGER LIMITED: Liquidators Quit Posts
----------------------------------------
Lo Wai Tsun and Katherine Lai Wai Han quit as the liquidators of
Helinger Limited on April 30, 2007.

The former Liquidators can be reached at:

         Lo Wai Tsun
         Katherine Lai Wai Han
         JPMorgan Tower, 22nd Floor
         138 Rural Committee Road
         Shatin, New Territories
         Hong Kong


ICBC: Considers Purchasing Travelex
-----------------------------------
Industrial and Commercial Bank of China has participated in
preliminary talks to buy UK-based Travelex, which runs an
airport currency exchange network, Channel News Asia says,
citing a report from the South China Morning Post.

Travelex, according to the report, was valued at GBP1.06 billion
in a February 2005 deal.  Private equity firm, Apax Partners
Worldwide, is the company's majority owner.  The deal, if it
proceeds, would easily be one of the largest overseas
acquisitions for a Chinese company, the South China Morning Post
noted, according to Channel News Asia.  

ICBC and Travelex have held several rounds of talks and both
sides have discussed expanding Travelex in China, the report
added.  The Channel News Asia said ICBC's spokesperson declined
to comment on the report.

                          *     *     *

The Industrial and Commercial Bank of China --
http://www.icbc.com.cn-- is the largest state-owned commercial  
bank, and is authorized by the State Council and the People's
Bank of China.  ICBC conducts operations across China as well as
in major international financial centers.

On Sept. 18, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed ICBC's Individual D/E
rating.

On Dec. 6, 2006, Moody's Investors Service upgraded to D- from
E+ the Bank Financial Strength Rating for Industrial and
Commercial Bank of China.  The D- BFSR has a stable outlook.  
The upgrade concludes a review of ICBC's BFSR started on Aug. 9,
2006.


NATUZZI ASIA: Liquidator to Present Wind-Up Report on June 4
------------------------------------------------------------
Natuzzi Asia Limited will hold a final meeting for its members
on June 4, 2007, at 10:00 a.m., on the 8th Floor of Gloucester
Tower, The Landmark at 15 Queen's Road in Central, Hong Kong.

Thomas Andrew Corkhill, the company's liquidator, will present a
report of the company's wind-up proceedings and property
disposal at the meeting.


P. D. E. LIMITED: Court to Hear Wind-Up Petition on June 6
----------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition against
P. D. E. Limited on June 6, 2007, at 9:30 a.m.

The petition was filed by Hang Seng Bank Limited on April 2,
2007.

Hang Seng's solicitor is:

         Messrs. Li, Kwok & Law
         Units 1204-06, Man Yee Building
         68 Des Voeux Road
         Central, Hong Kong


PR NEWSWIRE ASIA: Receiving Proofs of Debt Until June 4
-------------------------------------------------------
PR Newswire Asia Limited started to wind up its business on
April 27, 2007.

Creditors are required to file their proofs of debt by June 4,
2007, to be included in the company's dividend distribution.

The company's liquidators are:

         James T. Fulton
         Cordelia Tang
         905 Silvercord, Tower 2
         30 Canton Road, Tsimshatsui
         Kowloon, Hong Kong


RIHAND INDUSTRIAL: Subject to Lau Sui's Wind-Up Petition
--------------------------------------------------------
Lau Sui Hing Edwin filed a petition to wind up the operations of
Rihand Industrial Company Limited on April 18, 2007.

The petition will be heard before the High Court of Hong Kong on
June 20, 2007, at 9:30 a.m.


SLI CONSULTING: Members Opt to Wind Up Operations
-------------------------------------------------
At an extraordinary general meeting held on April 26, 2007, the
members of SLI Consulting Limited resolved to voluntarily wind
up the company's operations.

Andrew David Ross and Bruno Arboit, the appointed liquidators,
are receiving the creditors' proofs of debt until June 4, 2007.

The Liquidators can be reached at:

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


SOUND YEAR: Placed Under Voluntary Liquidation
----------------------------------------------
On April 26, 2007, Sound Year International Limited was placed
under members' voluntary liquidation.

The company requires its creditors to file their proofs of debt
by June 4, 2007.

The company's liquidators are:

         Tai Hay Yuen
         Kong Tak Wing, Robert
         Tai Kong Corporate Advisory Limited
         Chinachem Tower, 21st Floor
         34-37 Connaught Road
         Central, Hong Kong


TOPVILLE INDUSTRIAL: High Court to Hear Wind-Up Petition Today
--------------------------------------------------------------
The hearing of the wind-up petition against Topville Industrial
Company Limited was reset for today, May 9, 2007, at 9:30 a.m.,
from May 23.

Yeung Man Loong Maxly filed the petition on March 21, 2007.

Yeung Man's solicitor is:

         S. K. Wong & Co.
         Grand Building, 9th Floor
         15-18 Connaught Road
         Central, Hong Kong


ZTE CORP: Amsterdam Holdings Says Phil. Broadband Deal Illegal
--------------------------------------------------------------
Amsterdam Holdings Inc. claims that ZTE Corp. and the
Philippines' Department of Transportation and Communications
"hastily brokered" a US$350 million deal to put up a national
broadband network, thereby violating laws, All Headlines News
reports.

According to the report, Amsterdam Holdings and Arescom Inc., as
well as U.S. Ambassador Kristie A. Kenney, have complained to
the Philippine National Economic Development Authority on the
fast tracking of the national broadband network deal inked by
ZTE and the DOTC on April 21.

ZTE denied the allegations.  A ZTE official privy to the deal
told All Headlines that months before it submitted its proposal
in August 2006, ZTE had been communicating with the Commission
on Information and Communications Technology, an attached agency
of the DOTC, which was originally in charge of the project.  The
CICT then endorsed the Chinese firm's proposal to the NEDA on
Oct. 20, 2006.  On March 29, the NEDA approved the Chinese
firm's proposal, the ZTE official said.

Komfie Manalo, a correspondent for the news agency, relates that
the NEDA confirmed the dates of submission and approval.

"It took six months to evaluate the proposal," NEDA Director
General Romulo Neri told Mr. Manalo.  "We don't think that is
undue haste.  When any agency endorses a proposal to, it must
have been selected based on development goals."

According to the report, DOTC Secretary Leandro Mendoza added
that ZTE can best implement the broadband project and meet
government goals.  "AHI is just a holding company and they
cannot even name their principals, how can we deal with them?"
Mr. Mendoza said.

Amsterdam Holdings, however, stressed that it will continue to
pursue the project and is preparing to sue the DOTC, All
Headlines noted.

                          *     *     *

Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and  
communication terminal equipment.  The group operates both in
the domestic and international market.

The Troubled Company Reporter - Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'.  The rating
outlook is stable.


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

EASTMAN KODAK: Posts US$151 Million Net Loss in First Quarter
-------------------------------------------------------------
Eastman Kodak Company reported financial results for the first
quarter of 2007.

The net loss for the first quarter of 2007 was US$151 million,
compared with a net loss for the first quarter of 2006 of
US$298 million, representing an improvement in earnings of
US$147 million or 49%.

Sales totaled US$2.12 billion, a decrease of 8% from US$2.29
billion in the first quarter of 2006.  Digital revenue totaled
US$1.21 billion, a 3% decrease from US$1.25 billion.

Traditional revenue totaled US$896 million, a 13% decline from
US$1.02 billion in the year ago quarter.  New Technologies
revenue was US$13 million in the first quarter, compared with
US$16 million in the year-ago period.

Kodak held US$1.02 billion in cash and cash equivalents as of
March 31, 2007, consistent with the company's goal of
maintaining at least US$1 billion in cash on its balance sheet.

As of March 31, 2007, the company's debt level was US$2.75
billion.  With the completion of the sale of Kodak's Health
Group to an affiliate of Onex Corporation, the company has now
fully repaid approximately US$1.15 billion of secured term debt.

Gross Profit was 20.2%, down from 20.5%, primarily attributable
to approximately US$30 million of adverse silver and aluminum
costs, partially offset by the favorable impact of foreign
exchange.

"I'm very pleased with our first-quarter performance, in which
we made significant progress on our two key objectives for 2007
-- new product success and cost reduction," Antonio M. Perez,
Chairman and Chief Executive Officer, Eastman Kodak Company,
said.  "Thus far the year is proceeding on plan.  Both our
Consumer Digital and Film Products groups were well ahead of
plan.  On the product side, we successfully launched a
revolutionary line of inkjet products, and at the recent AIIM/On
Demand Conference our Graphic Communications Group introduced
several award-winning products that broadened our portfolio of
solutions.  We also significantly reduced our SG&A expenses,
improved our receivables performance, and ended the quarter with
more than US$1 billion in cash on our balance sheet.  When we
conclude the sale of our manufacturing facility in Xiamen,
China, we will have completed the last, significant step in our
manufacturing restructuring."

At this time, the company has not yet completed the full balance
sheet and cash flow analysis adjusted for the impact of
discontinued operations. These items will be detailed in the
company's first quarter Form 10Q filing on or before May 10,
2007. However, current estimates suggest that the company
achieved a year-over-year improvement in net cash generation in
the range of US$175 million to US$200 million.  This corresponds
to an estimated improvement in net cash used in continuing
operations from operating activities in the range of US$150
million to US$175 million.

                      Updated 2007 Outlook

Kodak remains focused on three financial metrics as it continues
to transform its business:

     * net cash generation,
     * digital earnings from operations and
     * digital revenue growth.

The company has decided to increase its inkjet investment by as
much as US$50 million in order to fully capitalize on strong
customer reaction.  As a result, the company expects net cash
generation this year of greater than US$100 million (after
restructuring cash disbursements of approximately US$600
million), compared with the previous net cash generation
estimate of US$100 million to US$200 million.

Additionally, the company now expects 2007 full-year digital
earnings from operations of US$150 million to US$250 million.

Finally, the company continues to forecast 2007 digital revenue
growth of 3% to 5%, with total 2007 revenue expected to be down
between 4% and 7%.

                     Health Group Sale Closed

On April 30, 2007, the company completed the sale of its Health
Group to an affiliate of Onex Corporation for up to US$2.55
billion. At closing Kodak received US$2.35 billion in cash with
the potential to receive up to US$200 million in additional
future payments if Onex achieves certain returns with respect to
its investment.

                    About Eastman Kodak Co.

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

                          *     *     *

In February 2007, Moody's Investors Service said it is
continuing its review on Eastman Kodak's ratings for possible
downgrade including Corporate Family Rating at B1, Senior
Unsecured Rating at B2, and Senior Secured Credit Facilities at
Ba3.


GENERAL MOTORS: Earns US$62 Million in Quarter Ended March 31
-------------------------------------------------------------
General Motors Corp. reported net income of US$62 million,
including special items, in the first quarter ended
March 31, 2007, compared with net income of US$602 million, in
the year-ago quarter.  Results are preliminary and may be
revised prior to actual filing of GM's first quarter report on
Form 10-Q.

The decline in reported GM earnings is more than accounted for
by losses in the residential mortgage business of GMAC Financial
Services, driven by continued weakness in the U.S. nonprime
mortgage sector.  In addition, last year's results included a
one-time after tax gain of US$395 million due to the sale of a
portion of GM's equity ownership position in Suzuki Motors.

The reported results for the first quarter of 2007 include
unfavorable special items totaling US$32 million after tax
related largely to restructuring actions in Europe and Asia
Pacific, offset in part by a favorable item related to workforce
attrition costs for previously divested components plants.

"The first quarter of 2007 marked another quarter of continued
progress in GM's global automotive operations.  We were able to
expand vehicle sales and improve automotive profitability based
on the progress in our turnaround initiatives in North America
and Europe and our expansion strategy for key growth markets
like China, Russia and South America," said GM chairman and
chief executive officer, Rick Wagoner.  "We continue to see
progress on the automotive bottom line as we implement the
strategies laid out two years ago."

Excluding special items, GM posted adjusted net income of
US$94 million, compared to adjusted net income of US$350 million
in the first quarter of 2006.  Total revenue for the first
quarter of 2007 was US$43.9 billion, down from US$52.4 billion,
almost entirely due to GMAC revenue no longer being included in
GM's consolidated results.  Following the 51 percent equity sale
of GMAC in late 2006, GM is reporting its 49 percent ownership
interest using the equity accounting method.  Automotive revenue
for the first quarter of 2007 was US$42.9 billion, down slightly
from US$43.6 billion in the first quarter of 2006.

                    GM Automotive Operations

Net income from GM's global automotive operations totaled
US$304 million on an adjusted basis, in the first quarter of
2007, compared to US$40 million in the year-ago quarter.

GM sold an all-time first quarter record 2.26 million cars and
trucks in the first quarter of 2007, up 3 percent, or 67,000
units, over the first quarter of 2006.  Sales in the GM Asia
Pacific region grew more than 20 percent; GM Latin America,
Africa and Middle East grew 17 percent, and GM Europe grew 6
percent.  GM's all-time sales record was achieved despite
challenging market conditions in the U.S. largely due to
volatile fuel prices and contraction in the housing market.

                             GMAC

GMAC posted a net loss of US$305 million in the first quarter of
2007, compared to net income of US$495 million in the year-ago
period.  For the first quarter, GM recognized a net loss of
US$115 million associated with its 49 percent ownership of GMAC,
including the accrual of dividends on GMAC preferred membership
interests and certain tax benefits realized.

GMAC results were significantly impacted by a net loss of
US$910 million at Residential Capital LLC due to continued
pressures in the U.S. mortgage market.  GMAC's first quarter net
income generated by auto finance, insurance and other operations
was US$605 million, more than double the earnings generated by
these same operations in the first quarter of 2006.

                      Cash and Liquidity

GM generated adjusted automotive operating cash flow of
US$300 million for the first quarter of 2007, an improvement of
US$1.5 billion year-on-year, with all four regions reporting
improvement.

Cash, marketable securities, and readily-available assets of the
Voluntary Employees' Beneficiary Association trust totaled
US$24.7 billion at March 31, 2007, up from US$21.6 billion on
March 31, 2006, but down from the year-end 2006 total of
US$26.4 billion.

At March 31, 2007, the company's balance sheet showed
US$185.2 billion in total assets, US$188.4 billion in total
liabilities, US$1.1 billion in minority interests, resulting in
a US$4.3 billion total stockholders' deficit.

                      About General Motors

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.

                        *     *     *

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

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


GENERAL MOTORS: April Sales Down 2.2%; Rental Sales Down 36%
------------------------------------------------------------
General Motors Corporation reported that GM dealers in the
United States delivered 311,687 vehicles in April, a reduction
of 2.2% on a sales-day-adjusted basis.  GM's April retail sales
of 228,465 were up 3.6%, on a sales-day-adjusted basis.  There
were two fewer selling days in April this year.

Fifteen different models showed a retail sales increase,
reflecting the continuing strength of GM's new product
portfolio.  So far this year, daily rental sales of 13% of total
sales accounted for the lowest percentage of total sales in five
years.  Daily rental sales were down 23,178 vehicles in April,
or 36% on a sales-day-adjusted basis, compared with a year ago
as mix and quality of share continued to improve significantly.
Consistent with its turnaround strategy, GM has reduced daily
rental sales by more than 83,000 vehicles in the first four
months of 2007.

"April sales were consistent with the pattern of the last few
quarters -- retail sales up, daily rental down, and continued
strength of our launch vehicles," said Mark LaNeve, vice
president, GM North American Sales, Service and Marketing.  "We
are particularly pleased with the Silverado and Sierra pickups,
and from January to March this year we've seen more than a four
point full-size pickup market share increase at the expense of
Toyota, Ford and DCX.  Pickup truck customers are telling us in
today's environment they are shopping for value, fuel economy
and warranty.  GM wins on all three."

Chevrolet Aveo, Impala, Silverado, Suburban, and Avalanche;
Pontiac G6; Saturn Sky and VUE; GMC Sierra, Yukon XL and Canyon;
Cadillac CTS, SRX, Escalade ESV and Escalade EXT all had April
retail sales increases compared with a year ago on a sales-day-
adjusted basis.  Pontiac G5, Saturn Aura and Outlook and the GMC
Acadia are newly-offered products and continue to contribute
retail sales momentum.  The GMC Acadia and Saturn Outlook had
retail sales of more than 9,100 vehicles, pushing a significant
retail increase in GM's mid-crossover segment.

GM's total sales of more than 11,000 vehicles in this segment
pushed monthly performance up 184%, on a sales-day-adjusted
basis, compared with the same month last year.

Total sales of Saturn vehicles were up 29 percent, GMC was up 17
percent and Cadillac was up 2% in April on a sales-day-adjusted
basis.

"As we continue to execute our North American marketing plans,
we've seen positive results, including increased residual values
for our products.  For customers, this means better resale
values for their GM car or truck," LaNeve added.  "With new
products such as the Buick Enclave, Cadillac CTS and Chevrolet
Malibu still to come this year, we expect to build on this
customer enthusiasm."

                     Certified Used Vehicles

April 2007 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,622
units, down 11 percent from last April.  Total year-to-date
certified GM sales are 181,473 units, up 3% from the same period
last year.

GM Certified Used Vehicles, the industry's top-selling
manufacturer-certified used brand, posted 36,625 sales, down
nearly 10% from last April.  Year-to-date sales for GM Certified
Used Vehicles are 159,409 units, up 4% from the same period in
2006.

Cadillac Certified Pre-Owned Vehicles posted April sales of
2,800 units, down 22% from last April.  Saturn Certified Pre-
Owned Vehicles sold 1,478 units in April, down 17%. Saab
Certified Pre-Owned Vehicles sold 639 units, down 10% from last
April, and HUMMER Certified Pre-Owned Vehicles sold 80 units,
down 30%.

"GM Certified Used Vehicles, the industry's top-selling
certified brand, continues to set the pace for the category,
with sales through April up more than 4 percent," said Mr.
LaNeve.  "April sales were impacted by having two less sales
days than last year.  Certified GM sales year-to-date are up
over 3 percent from the same period last year."

GM North America Reports April Production, 2007 Second-Quarter
Production Forecast is Revised at 1.145 Million Vehicles

In April, GM North America produced 335,000 vehicles (120,000
cars and 215,000 trucks).  This is down 17,000 units or 5%
compared to April 2006 when the region produced 352,000 vehicles
(130,000 cars and 222,000 trucks).  (Production totals include
joint venture production of 15,000 vehicles in April 2007 and
24,000 vehicles in April 2006.)

Additionally, the region's 2007 second-quarter production
forecast is revised at 1.145 million vehicles (403,000 cars and
742,000 trucks), down 15,000 units or 1.3% from last month's
guidance.

GM also announced final 2007 first-quarter and unchanged 2007
second-quarter production forecast for its international
regions.

GM Europe - GM Europe produced 511,000 vehicles in the first-
quarter of 2007.  In the first-quarter of 2006 the region built
494,000 vehicles.  The region's 2007 second-quarter production
forecast remains unchanged at 473,000 vehicles.  In the second-
quarter of 2006 the region built 495,000 vehicles.

GM Asia Pacific - The region built 544,000 vehicles in the
first-quarter of 2007.  In the first-quarter of 2006 the region
produced 472,000 vehicles.  GM Asia Pacific's 2007 second-
quarter production forecast remains unchanged at 568,000
vehicles.  In the second-quarter of 2006 the region built
482,000 vehicles.

GM Latin America, Africa and the Middle East - The region built
222,000 vehicles in the first quarter of 2007.  In the first
quarter of 2006 the region produced 194,000 vehicles.  The
region's 2007 second-quarter production forecast is unchanged at
233,000 vehicles.  In the second quarter of 2006 the region
built 206,000 vehicles.

                    About General Motors Corp.

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.

                        *     *     *

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

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


JCT ELECTRONICS: Net Loss Narrows to INR171.4MM in March 31 Qtr.
----------------------------------------------------------------
JCT Electronics Ltd. posted a net loss of INR171.4 million in
the quarter ended March 31, 2007, an improvement compared to the
INR511.6-million loss incurred in the corresponding quarter last
year.

JCT booked increased revenues from the INR554.5 million in the
quarter ended March 31, 2006, to INR743.7 million in the March
2007 quarter.  Operating expenditures rose 25% from INR640.4
million in the March 2006 quarter to INR801.5 million in the
latest quarter under review, bringing an operating loss of
INR57.8 million.  Interest charges sharply declined to INR5.1
million in the March 2007 quarter from the INR323.6 million
booked in the same period in 2006.

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

               http://ResearchArchives.com/t/s?1ea8

For the financial year ended March 31, 2007, the company
recorded a net loss of INR1.73 billion, a slight decrease from
the INR1.83-billion loss in the previous year.  Total income
increased to INR2.96 billion in FY2006-07 from INR2.46 billion
in FY2005-06.  Expenditures also increased from INR2.60 billion
in FY2005-06 to INR3.20 billion in FY2006-07.

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

              BIFR-Sanctioned Rehabilitation Scheme

JCT is under a rehabilitation scheme, which scheme the Board for
Industrial and Financial Reconstruction approved on March 26,
2007.  The BIFR-sanctioned scheme provides for:

   -- Reduction in the rate of interest on unpaid balances of
      the financial institutions & banks from March 31, 2007, at
      6% p.a.  The future interest will be payable with effect
      from Oct. 1, 2008.

   -- Repayment of the outstanding principal of the financial
      institutions and banks as on the cut off date from
      December 2008 onwards in quarterly installments.

   -- Waiver of all past interest, compound interest, liquidated
      damages, penal interest, etc.

   -- Shifting of the entire plant and machinery of the Mohali
      Unit to Baroda and installing the same as Line - III at
      the Baroda Unit.

   -- Sale of all Mohali Assets, proceeds of which will be used
      to liquidate some of the debts of the term lenders or
      banks, pay the foreign banks on a one-time settlement of
      their principal outstanding, and settle the legal dues in
      arrears (worker's past liability) of the Mohali workmen as
      per approval of BIFR.

   -- Workmen of the Mohali unit to be given employment at the
      Baroda unit on the terms and conditions as applicable to
      similar workmen at the Baroda unit.  In case of any worker
      not opting for shifting or transfer, their legal dues will
      be paid as per settlement.

   -- Capital reduction through write down of the existing paid-
      up equity share capital as on the date of sanction of the
      scheme by 90%.

   -- Conversion of the share application money in the books
      into equity shares after write down of existing equity.

   -- Promoters contribution of INR2500 lakhs towards upfront
      payment to lenders (INR750 lakhs) and capital expenditure
      (INR1750 lakhs) to be converted into equity share capital
      by issue of equity shares after write down of existing
      equity.

   -- Conversion of 15% of the principal outstanding of the term
      loans or working capital term loans into equity shares
      after write down of existing equity.

   -- Pledge of the entire shareholding of the promoters post
      restructuring with the lead institution.

   -- Personal guarantee of Managing Director Arjun Thapar to be
      provided on the entire outstanding loans of the financial
      institutions or banks.

   -- Sanction of need based non funded limits of INR5054 lakhs
      for working capital requirements.

According to the company, the interest charges for the quarter
ended March 31, 2007, has been provided as per rehabilitation
scheme.

                       About JCT Electronics

JCT Electronics Ltd. manufactures color picture and black &
white tubes for television sets.  The company also manufactures
cathode ray tubes and gas discharge tubes.

JCT Electronics incurred net losses for at least two consecutive
years -- INR1.83 billion in FY2005-06 and INR1.73 billion in
FY2006-07.


KARNATAKA BANK: Board to Meet on May 19 to Consider Financials
--------------------------------------------------------------
Karnataka Bank Ltd informed the Bombay Stock Exchange that its
board of directors will hold a meeting on May 19, 2007.  The
board will, inter alia, consider the bank's audited financial
results for the year ended March 31, 2007, and recommend
dividend on the equity shares for the said period.

As previously reported in the Troubled Company Reporter - Asia
Pacific, the bank posted a net profit of INR538.8 million for
the three months ended Dec. 31, 2006, a 30% increase from the
INR415.2 million earned in the corresponding period in 2005.

Headquartered in Mangalore, India, Karnataka Bank Ltd --
http://karnatakabank.com/ktk/Index.jsp-- provides products and  
services for business and personal purposes that include
borrowing facilities, deposits, providing optimum returns on
surplus funds or helping with overseas transactions.  The bank
has two business segments: Treasury and Other Banking
Operations. Treasury Operations mainly comprise of surplus
statutory liquidity ratio and non-SLR investments.  Other
Banking Operations mainly consist of advance portfolio of the
bank and SLR securities to the extent of SLR requirements.  The
bank provides Working Capital Finance, Term Loans and
Infrastructure Finance.  The Business Finance Products offers
both fund-based and non-fund-based products.  The bank has
diversified into the marketing of life insurance products of
MetLife India Insurance Co. Pvt. Ltd.  The Bank has entered into
a memorandum of understanding with Bajaj Allianz General
Insurance Co. Ltd. for distribution of its general insurance
products through its branches.

Fitch Ratings gave Karnataka Bank a support rating of 5.


KINETIC ENGINEERING: Narrows Net Loss to INR63.2 Million
--------------------------------------------------------
For the three months ended March 31, 2007, Kinetic Engineering
Ltd. narrowed its net loss to INR63.2 million from the
INR161.4-million loss booked in the corresponding period last
year.  Sales decreased 24% from INR292.4 million in the quarter
ended March 31, 2006, to INR222.1 million in the March 2007
quarter.

The March 2007 quarter is the first quarter during which the
Kinetic Engineering has restructured itself to auto-component-
making company.  Hence, the company points out, full benefits of
the new business are not reflected in the financial results.  In
the coming quarters, the company's directors expect improved
results arising from larger volumes of auto-component business.

The company's operating expenditures in the latest quarter under
review decreased 40% to INR237.2 million, bringing an operating
profit of INR900,000.  The company booked interest charges of
INR39.5 million, depreciation of INR16.1 million and taxes of
INR300,000.

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

         http://ResearchArchives.com/t/s?1eb2

India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,   
which specializes in two wheelers.  The company has sold over 6
million vehicles in India.  Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks.  The company offers top-end bikes, such as Comet and
Aquila.  It has a nationwide network of nearly 450 dealers and
over 1,000 service centers.  Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.

The Troubled Company Reporter - Asia Pacific reported on
March 23, 2007, that the company has a stockholders' equity
deficit of US$5.40 million.


KINETIC ENGINEERING: Micro Age Increases Stake to 11.96%
--------------------------------------------------------
Micro Age Instruments Pvt Ltd informed the Bombay Stock Exchange
that it gained an additional 270,000 shares, or 4.95% stake in
Kinetic Engineering Ltd by the preferential allotment of equity
shares on conversion of warrants.

Before the allotment, Micro Age owned 382,499 shares of Kinetic
Engineering, or 7.01% interest in the company.  With the
allotment, Micro Age increased its holding to 652,499 shares or
11.96% interest in the company.

India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,   
which specializes in two wheelers.  The company has sold over 6
million vehicles in India.  Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks.  The company offers top-end bikes, such as Comet and
Aquila.  It has a nationwide network of nearly 450 dealers and
over 1,000 service centers.  Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.

The Troubled Company Reporter - Asia Pacific reported on
March 23, 2007, that the company has a stockholders' equity
deficit of US$5.40 million.


VISTEON CORP: March 31 Balance Sheet Upside-Down by US$106 Mil.
---------------------------------------------------------------
Visteon Corporation reported a net loss of US$153 million on
total sales of US$2.93 billion for the first quarter ended
March 31, 2007, compared with net income of US$3 million on
total sales of US$2.96 billion for the same period in 2006.

Results for the first quarter of 2007 included US$41 million of
expenses reimbursable from the 400 million escrow account funded
by Ford and non-cash asset impairments of US$50 million.
Results for the first quarter of 2006 included US$9 million of
restructuring expenses that qualified for reimbursement from the
escrow account.

"We continue to make progress implementing our restructuring,
improvement and growth plan, despite North American production
declines," said Michael F. Johnston, chairman and chief
executive officer.  "We anticipated this environment, and we
have taken the necessary steps to ensure we have the financing
and flexibility we need to continue our momentum."

Total sales for first quarter 2007 totaled US$2.93 billion.
First quarter 2007 product sales were US$2.8 billion, down
slightly from first quarter 2006 as favorable currency and
increased sales in Europe and Asia were offset by lower
production volumes, principally in North America.  Services
revenues of US$130 million decreased US$15 million from the same
period in 2006.

Cash used by operating activities for the first quarter of 2007
was US$131 million compared with cash provided by operating
activities of US$32 million in the same period a year ago.
First quarter 2007 cash flow was impacted by normal seasonal
factors, customer and geographic sales mix, the change in
payment terms from Ford in North America and operating
performance.

Capital expenditures for the first quarter of 2007 of US$64
million were US$21 million lower than the same period a year
ago.  Free cash flow for the first quarter of 2007 was negative
US$195 million, compared with negative US$117 million in the
same period of 2006.

As of March 31, 2007, cash balances totaled US$872 million as
compared to US$1.057 billion at Dec. 31, 2006.  Total debt of
US$2.2 billion as of March 31, 2007 was essentially unchanged
from year-end 2006.

Visteon reached agreement to sell certain chassis operations in
Germany, Poland and Brazil to Special Situations Venture Partner
II LP in March 2007.  On April 30 the European facilities were
transferred to SSVP.  Driveline assets located in Visteon's Sao
Paulo, Brazil facility will be transferred in the second half of
2007.

"With the completion of these chassis divestitures, half of the
actions we committed to take in our multi-year plan are
complete," said Don Stebbins, president and chief operating
officer.  "By addressing non-core and underperforming assets we
continue to enhance our already strong global footprint, as we
focus on our core product areas and position Visteon for
profitable growth."

At March 31, 2007, the company's balance sheet showed
US$6.84 billion in total assets, US$6.68 billion in total
liabilities and US$263 million in minority interest, resulting
in a US$106 million total stockholders' deficit.

                        About Visteon Corp.

Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive  
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  The company has more than
170 facilities in 24 countries and employs around 50,000 people.

With approximately 2,200 employees, Visteon has a significant
presence in India in electronics, climate (car air conditioning
and engine cooling systems), interior (instrument panel and door
trims), rotating electronics and lighting systems.  Visteon
facilities in India include:

   *  Climate Systems India Limited,
   *  Visteon Automotive Systems India Private Ltd.
   *  Visteon Automotive Systems India Private Ltd.
   *  Visteon Powertrain Control Systems India Private Ltd.
   *  TATA Visteon Automotive Private Ltd.
   *  TACO Visteon Engineering Private Ltd.

                          *     *     *

In April 2007, Fitch Ratings took these actions regarding the
ratings of Visteon Corp.: Issuer Default Rating affirmed 'CCC';
Senior Secured Bank Facility affirmed 'B/RR1'; and Senior
unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'.


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

BANK MANDIRI: To Finance Cikampek Paliaman Toll Road Project
------------------------------------------------------------
PT Bank Mandiri and PT Bank Central Asia have been named by PT
Lintas Marga Sedaya as joint lead arrangers to raise IDR5
trillion to finance the Cikampek Paliaman toll road project,
Antara News reports.

According to the report, the road project would need an
investment of IDR7 trillion.  The two banks would determine the
amount of funds to be put up by each member of the syndicate.  
Bank Mandiri is expected to provide IDR4 trillion, the report
points out.

                        About Bank Mandiri

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

The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service revised the outlook to
positive from stable of PT Bank Mandiri's senior debt and
foreign currency long-term deposit ratings.  The bank's short-
term deposit rating and long-term subordinated debt rating
continue to carry Moody's stable outlook while the bank
financial strength remains on review for possible upgrade.  
Moody's detailed ratings for Bank Mandiri are:
senior/subordinated debt of Ba3/Ba3; foreign currency long-
term/short-term deposit of B2/Not Prime; and bank financial
strength of E+.

Fitch Ratings affirmed these ratings of Bank Mandiri: Long- term
foreign and local currency Issuer Default ratings at 'BB-',
Short-term rating at 'B', National Long-term rating at AA(idn)',
Individual at 'D', and Support at '4'.  The Outlook for the
ratings was revised to Positive from Stable.


BLT Finance: Fitch Assigns 'BB-' Rating to US$400MM Unsec. Notes
----------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'BB-' to the US$400
million senior unsecured notes due 2014 issued by BLT Finance
B.V. and guaranteed by PT Berlian Laju Tanker Tbk (BLT, rated
'BB-' (BB minus)/Stable).

The final rating action follows the completion of the notes
issue and receipt of documents conforming to information
previously received.  The final rating is the same as the
expected rating assigned on April 30, 2007.

                        About Berlian Laju

PT Berlian Laju Tanker Tbk is the largest Indonesian shipping
company, focusing on liquid bulk cargo, with operations
primarily in Asia with some expansion into the Middle East and
Europe.  In 2006, BLT achieved revenue of US$335 million, EBITDA
of US$154 million and net income of US$107 million.  The
founder, Hadi Surya, has a 48.7% beneficial interest in BLT.


FOSTER WHEELER: To Hold 1Q 2007 Earnings Conference Call Today
--------------------------------------------------------------
Foster Wheeler Ltd. scheduled its first-quarter 2007 earnings
results conference call today, May 9, 2007, at 11:00 a.m.
(Eastern).  The company expects to release the results today
before the market opens.  A slide presentation will be available
approximately one hour before the call commences.

The call will be accessible to the public by telephone or
webcast.  To listen to the call by telephone in the United
States, dial 866-425-6195 (conference I.D. No. 8685505)
approximately ten minutes before the call.  International access
is available by dialing 973-935-8752 (conference I.D. No.
8685505).  The conference call and slides will also be available
over the Internet at http://www.fwc.com/or through StreetEvents  
at http://www.streetevents.com/  

A replay of the call will be available on the company's Web
site, and the call replay will also be available by telephone.
The replay and slides can also be accessed on the company's Web
site for four weeks following the call.  To listen to the replay
by telephone, dial 877-519-4471 or 973-341-3080 (replay passcode
8685505# required) starting one hour after the conclusion of the
call through 8:00 p.m. (Eastern) on Wednesday, June 6, 2007.

                       About Foster Wheeler

With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of  
engineering, procurement, construction, manufacturing, project
development and management, research, and plant operation
services.  Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology, and healthcare industries.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand and Vietnam.

                          *     *     *

On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.  At the
same time, Standard & Poor's affirmed its 'B+' corporate credit
rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


INDOSAT: To Increase Size of Planned Bond Issue to IDR3 Trillion
----------------------------------------------------------------
PT Indosat will increase the size of its planned bond issue to
IDR3 trillion from IDR2 trillion due to higher demand from
investors, Reuters reports.  The change is subject to approval
from Indonesia's capital market watchdog, Bapepam.

According to the report, the bond will be split into two series,
the first series with seven-year maturity and an indicative
coupon rate of 10.15% to 10.50%, while the second series will
have 10-year maturity and coupon rate between 10.65% to 10.90%.

The conventional paper will have an installment ranging between
IDR30.45 billion to IDR31.50 billion per year, the report adds.

                          About Indosat

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

                          *     *     *

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

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


MCDERMOTT INT'L: Earns US$158.1 Million in First Quarter 2007
-------------------------------------------------------------
McDermott International, Inc. reported net income of US$158.1
million for the 2007 first quarter, compared to net income of
US$55.3 million for the corresponding period in 2006.  Weighted
average common shares outstanding on a fully diluted basis were
approximately 114.2 million and 113.0 million for the quarters
ended March 31, 2007 and March 31, 2006, respectively.  For the
2006 quarter, McDermott's common shares outstanding and earnings
per share are adjusted to reflect the 3-for-2 stock split
effected in May 2006.

McDermott's revenues in the first quarter of 2007 were
US$1,363.4 million, compared to US$644.9 million in the
corresponding period in 2006.  The increase in revenues is
primarily attributable to three months of The Babcock & Wilcox
Company's revenues in 2007 first quarter, compared to only one
month during the 2006 quarter, as B&W was reconsolidated with
the Company in March last year.  Additionally, revenues in the
Offshore Oil & Gas Construction segment increased 86 % compared
to a year ago due to strong industry demand.

Operating income was US$192.5 million in the 2007 first quarter,
compared to US$67.7 million in the 2006 first quarter. The
improvement in operating income is primarily attributable to a
446 % increase in segment income in the Offshore Oil & Gas
Construction segment.  In addition, the Company's other
segments, Government Operations and Power Generation Systems,
increased segment income by 31.8 % and 57.8 %, respectively,
while unallocated corporate expenses declined.

"At McDermott, we generally avoid over-emphasizing any given
quarter as our results, and the industry in general, are
inherently lumpy.  However, the first quarter was truly
outstanding for us and is a terrific start to 2007," said Bruce
W. Wilkinson, Chairman of the Board and Chief Executive Officer
of McDermott.  "During the quarter, the Company experienced near
flawless execution of our backlog, we delivered profits ahead of
forecast and successfully realized income opportunities while
mitigating risks.  The combination of these factors with our
active workload allowed McDermott to deliver earnings that far
surpassed our own expectations."

At March 31, 2007, McDermott's consolidated backlog was US$7.9
billion, compared to US$5.9 billion at March 31, 2006 and US$7.6
billion at December 31, 2006.

                      RESULTS OF OPERATIONS
      (2007 First Quarter Compared With 2006 First Quarter)

   * Offshore Oil & Gas Construction Segment (J. Ray)

Revenues in the Offshore Oil & Gas Construction segment were
US$550.3 million in the 2007 first quarter, compared to US$295.4
million for the same period a year ago.  The year-over-year
increase in revenues resulted primarily from increased activity
in the Middle East, Asia Pacific and Caspian regions.

Segment income for the 2007 first quarter was US$121.2 million,
compared to US$22.2 million in the 2006 first quarter.  Each
major region contributed to the improvement, led by the
increased activities in the Middle East.  In addition, project
close-outs; change orders and settlements were particularly
strong during the first quarter of 2007, with J. Ray realizing
approximately US$40 million in segment income from these items.
In the 2006 first quarter, J. Ray's segment income was reduced
by a non-cash impairment of US$16.4 million related to
accumulated currency translation losses.

At March 31, 2007, J. Ray's backlog was US$4.2 billion, compared
to backlog of US$2.4 billion and US$4.1 billion at March 31,
2006 and December 31, 2006, respectively.

   * Power Generation Systems Segment

Revenues in the Power Generation Systems segment for the first
quarter 2007 were US$655.4 million, compared to US$189.0 million
reported in the first quarter of 2006 which included only one
month of B&W's financial results.  Between February 2000 and
February 2006, B&W was deconsolidated from the Company's
reported financial statements.

Segment income for the 2007 first quarter was US$43.5 million,
compared to US$27.6 million in the 2006 first quarter.  The
improvement in segment income resulted primarily from improved
margins in B&W's service and parts business, and increased
activity during the 2007 first quarter for new boilers and
retrofit projects.

At March 31, 2007, B&W's backlog was US$2.3 billion compared to
backlog of US$1.9 billion and US$2.2 billion at March 31, 2006
and December 31, 2006, respectively.  Backlog at March 31, 2007
excludes the amounts associated with three TXU boiler and SCR
contracts that B&W continues to fulfill, but the respective
amounts will be rebooked should a new buyer or buyers contract
for one of more of these units.

   * Government Operations Segment

Revenues in the Government Operations segment were US$161.4
million in the 2007 first quarter, compared to US$161.0 million
for the same period a year ago.

Segment income for the 2007 first quarter was US$34.8 million,
compared to US$26.4 million in the 2006 first quarter.  The
improvement was primarily due to increased activity and higher
margins from the manufacture of nuclear components for certain
U.S. Government programs, including the recognition of savings
associated with the previously announced completion of a multi-
award agreement with the Department of Energy.

At March 31, 2007, BWXT's backlog was US$1.5 billion, compared
to backlog of US$1.6 billion and US$1.3 billion at March 31,
2006 and December 31, 2006, respectively.

   * Corporate

Unallocated corporate expenses were US$6.9 million in the 2007
first quarter, compared to US$8.4 million in the 2006 first
quarter.  The decrease was primarily related to lower stock
based compensation expenses.

   * Other Income and Expense

The Company's other expense for the first quarter of 2007 was
US$1.1 million, compared to other income of US$8.9 million in
the first quarter of 2006.  The year-over-year variance is
primarily due to a US$13.2 million benefit from tax-related
interest adjustments that occurred in the first quarter a year
ago, partially offset by a US$5.5 million improvement in net
interest income/expense compared to the 2006 first quarter due
to improved cash and investment balances.

                  About McDermott International

Headquartered in Houston Texas, McDermott International, Inc.
(NYSE:MDR) -- http://www.mcdermott.com/-- through its  
subsidiaries, an engineering and construction company, with
specialty manufacturing and service capabilities, focused on
energy infrastructure.  McDermott's customers are predominantly
utilities and other power generators, major and national oil
companies, and the United States Government.  With its global
operations, McDermott operates in over 20 countries -- including
Indonesia and the United Kingdom -- with more than 20,000
employees.

                          *     *     *

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

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

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

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

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


MCDERMOTT INT'L: Unit Acquires Marine Mechanical for US$75MM
------------------------------------------------------------
McDermott International, Inc.'s Government Operations
subsidiary, BWX Technologies, Inc. has completed its acquisition
of Marine Mechanical Corporation for approximately US$75
million.

Headquartered in Euclid, Ohio, Marine Mechanical Corporation
designs, manufactures and supplies electro-mechanical equipment
used by the United States Navy.  MMC, employing approximately
250 people, generated revenues in 2006 of approximately US$50
million and ended the year with backlog of approximately US$165
million.  McDermott will operate MMC as a unit of BWXT's Nuclear
Operations Division.

                  About McDermott International

Headquartered in Houston Texas, McDermott International, Inc.
(NYSE:MDR) -- http://www.mcdermott.com/-- through its  
subsidiaries, an engineering and construction company, with
specialty manufacturing and service capabilities, focused on
energy infrastructure.  McDermott's customers are predominantly
utilities and other power generators, major and national oil
companies, and the United States Government.  With its global
operations, McDermott operates in over 20 countries -- including
Indonesia and the United Kingdom -- with more than 20,000
employees.

                          *     *     *

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

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

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

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

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


NORTEL NETWORKS: Invests US$5 Million in Irish Customer Center
--------------------------------------------------------------
Nortel Networks opened its new global Customer and Technology
Center at its Mervue campus in Galway, Ireland.  

Nortel has invested US$5 million in the new Center, which is
responsible for developing customer contact center applications
for markets around the world.  The opening also marks Nortel's
celebration of 25 years of research and development in the
Galway area.

The new Center is developing contact center solutions focused on
ensuring customer enquiries to businesses are answered as
quickly and efficiently as possible, incorporating multimedia
capabilities such as instant messaging and video.  The Center
will also showcase applications that provide customers with the
opportunity to participate in demonstrations tailored
specifically for verticals markets such as healthcare, education
and finance.

At a Nortel Galway campus ceremony on Thursday, May 3, the
Center was officially opened by Frank Fahey, Teachta Dala,
Minister of State at the Department of Justice, Quality and Law
Reform.  The ceremony was attended by Darryl Edwards, president,
EMEA, Nortel as well as Nortel customers and employees.  Local
dignitaries and guests from Galway's business and political
communities also attended.

"This is a great day for Nortel and Galway because it
underscores the global importance of the role that the Galway
campus plays for the company," Mr. Edwards said in his remarks
at the Center's opening.  "The Technology and Customer Center is
part of our multi-million dollar investment in the region and
our talented Galway team."

"Nortel should be congratulated for its commitment to Galway
over the last 25 years," Minister Fahey said.  "Nortel has
developed rapidly since its arrival here and we are delighted
that its Irish-based operation is continuing to play a key role
in its global transformation.  [The] opening speaks volumes to
the depth, quality, expertise and loyalty of the Irish workforce
in the West region."

Nortel began operations in Galway in 1973.  A research and
development team was established in 1982.  Today, its Galway
campus has global responsibility for one of Nortel's most
sophisticated technologies - multimedia contact centers.  The
solutions have enhanced customer service for companies worldwide
including: Lloyds TSB, Fossil and Guy's and St Thomas' NHS
Foundation Trust.

"Nortel in Ireland has evolved significantly over the past 25
years," Dave Quane, managing director for Nortel, Ireland, said.

                         About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology  
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.

Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.

                          *     *     *

In March 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering.  Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par.  Moody's said the outlook remains stable.

Standard & Poor's Ratings Services assigned its 'B-' debt rating
to Canada-based Nortel Networks Corp.'s proposed US$1 billion
senior unsecured convertible notes, which will consist of two
tranches of US$500 million, maturing in 2012 and 2014,
respectively.  Proceeds from the convertible notes will be used
to partially refinance NNC's US$1.8 billion senior unsecured
convertible notes due Sept. 1, 2008, and therefore the overall
debt level is not expected to change.  Standard & Poor's also
affirmed its 'B-' long-term and 'B-2' short-term corporate
credit ratings on 100%-owned Canada-based subsidiary, Nortel
Networks Ltd.  At the same time, the ratings on the US$200
million notes of NNL and the US$150 million notes of Nortel
Networks Capital Corp. were lowered to 'CCC' from 'B-'.  NNC,
NNL, and the U.S.-based subsidiary, Nortel Networks Inc., are
collectively referred to as Nortel.  S&P said the outlook on NNL
is stable.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  DBRS says all trends are stable.  DBRS confirmed B (low)
Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B
(low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class
A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A,
Non-Cumulative Redeemable Preferred Shares.


NORTEL NETWORKS: Posts US$103 Million Net Loss in 1Q 2007
---------------------------------------------------------
Nortel Networks Corp. released its financials results for the
first quarter ended March 31, 2007, prepared in accordance with
United States generally accepted accounting principles.

Nortel posted US$103 million in net losses against US$2.5
billion in revenues for the first quarter ended March 31, 2007,
compared with US$171 million in net losses against US$2.4
billion in revenues for the same period in 2006.

At March 31, 2007, the Company's balance sheet showed
US$18.7 billion in total assets, US$15.2 billion in total
liabilities and US$2.7 billion in stockholders' equity.

"I am very pleased with our revenue and gross margin performance
to start the year.  Our first quarter revenues grew 4 percent
year over year or 12 percent if you consider that we divested
our UMTS Access business at the end of last year, and we showed
positive cash flow from operations for the second quarter in a
row excluding the impact of the litigation settlement" Mike
Zafirovski, President and CEO, Nortel, said.  "While our first
quarter results demonstrated significantly improved financial
performance, we must and will continue our relentless pursuit of
customer satisfaction and business transformation to deliver on
our 2007 business plan."

                             Outlook

"For the full year 2007, we continue to expect revenues to be
flat to down slightly compared to 2006, reflecting a decrease in
revenues as a result of the UMTS Access disposition.  We expect
full year 2007 gross margin to be in the low 40's, as a
percentage of revenues, and operating margin to be at 5 percent,
or higher, of revenues, David Drinkwater, interim chief
financial officer, Nortel said.

"For the second quarter of 2007, we expect revenues to be flat
to down slightly compared to the year ago quarter.  We expect
second quarter of 2007 gross margin to be around 40, as a
percentage of revenue, and operating expenses (SG&A and R&D) to
be down by high single digits, compared to the year ago
quarter," Mr. Drinkwater added.

                          About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology  
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.

Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.

                          *     *     *

In March 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering.  Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par.  Moody's said the outlook remains stable.

Standard & Poor's Ratings Services assigned its 'B-' debt rating
to Canada-based Nortel Networks Corp.'s proposed US$1 billion
senior unsecured convertible notes, which will consist of two
tranches of US$500 million, maturing in 2012 and 2014,
respectively.  Proceeds from the convertible notes will be used
to partially refinance NNC's US$1.8 billion senior unsecured
convertible notes due Sept. 1, 2008, and therefore the overall
debt level is not expected to change.  Standard & Poor's also
affirmed its 'B-' long-term and 'B-2' short-term corporate
credit ratings on 100%-owned Canada-based subsidiary, Nortel
Networks Ltd.  At the same time, the ratings on the US$200
million notes of NNL and the US$150 million notes of Nortel
Networks Capital Corp. were lowered to 'CCC' from 'B-'.  NNC,
NNL, and the U.S.-based subsidiary, Nortel Networks Inc., are
collectively referred to as Nortel.  S&P said the outlook on NNL
is stable.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  DBRS says all trends are stable.  DBRS confirmed B (low)
Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B
(low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class
A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A,
Non-Cumulative Redeemable Preferred Shares.


PHILLIPS-VAN HEUSEN: Three Long-Time Directors to Retire
--------------------------------------------------------
Phillips-Van Heusen Corporation's three long-time directors,
including Bruce Klatsky, Chairman of the Board, will retire from
the Board effective at the company's annual meeting on June 19,
2007.  In addition to Bruce Klatsky, Joel Goldberg and Marc
Grosman, who have been directors of the company since 1997, are
also retiring.  

Emanuel Chirico, Chief Executive Officer, is expected to be
named Chairman subject to his re-election to the Board at the
upcoming meeting.  Additionally, Henry Nasella, an independent
director of the company, is expected to be named to preside over
the meetings of the non-management directors of the company,
subject to his re-election as a director.  Mr. Klatsky currently
presides over such sessions.

Mr. Klatsky said, "I joined PVH almost 36 years ago as a
merchandise trainee and rose through the ranks to become its
Chairman, including the past two years as non-executive
Chairman.  I have been very proud to lead such a dedicated group
as our Board, and cannot imagine a better person to succeed me
than Manny Chirico."

He continued, "Manny Chirico joined our corporation from Ernst &
Young as Controller in 1993 and became Executive Vice President
and Chief Financial Officer in 1999, President and Chief
Operating Officer and a director in 2005 and Chief Executive
Officer in 2006.  His performance in each of these roles has
been nothing short of outstanding.  He has well earned the
esteem he enjoys in the financial and investment community,
within the company and on our Board of Directors."

Mr. Chirico said, "I have worked closely with Bruce for almost
two decades, both in my capacities with the company's auditor
and as an executive of the company for over 13 years.  I could
not imagine a better role model to follow in assuming leadership
of our Board of Directors and thank him on behalf of myself and
the company for his advice, his long service and his impeccable
leadership of our Board of Directors."   He continued, "Henry
Nasella has been an asset to our Board since he joined it in
connection with our acquisition of Calvin Klein, which he was
instrumental in completing in his former role at Apax Partners,
our equity partner in that transaction.  Henry's business acumen
and understanding of the retail industry has been a welcome
addition to the Board and I look forward to continue working
with him in our respective new capacities to guide the direction
of PVH."

Mr. Nasella, who has been a director of the company since 2003,
is a Partner of LNK Partners, a private equity investment fund.
He has served on the Board's Audit Committee and currently
serves as Chairman of its Compensation Committee.  It is
expected that he will continue in that role, as well, if he is
re-elected.  Prior to forming LNK Partners, Mr. Nasella was a
Venture Partner of Apax Partners, an international private
equity investment group.  Mr. Nasella has also served as
Chairman and Chief Executive Officer of the Star Markets
supermarket chain and President and Chief Operating Officer of
the Staples office products superstore chain.  He is also a
director of Denny's Corporation, the operator of the Denny's
full-service family restaurant chain.

                   About Phillips-Van Heusen

Phillips-Van Heusen Corporation -- http://www.pvh.com/-- owns  
and markets the Calvin Klein brand worldwide.  It is a shirt
company that markets a variety of goods under its own brands:
Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co.,
Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole,
BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael
Kors, Chaps and Donald J. Trump Signature.

It has operations in the Asia-Pacific region, including
Indonesia, China, Philippines, Malaysia, and Thailand.

The Troubled Company Reporter - Asia Pacific reported on
Dec. 14, 2006, that Moody's Investors Service upgraded Phillips
Van Heusen Corporation's corporate family rating to Ba2 from
Ba3.  The company's senior secured notes were upgraded to Baa3
from Ba1 and the company's senior unsecured notes were upgraded
to Ba3 from B1.  The rating outlook is stable, reflecting
Moody's expectations that the company will sustain financial
metrics appropriate for the rating category.


TELKOMSEL: Chooses Tektronix for Rollout of Mobile Technology
-------------------------------------------------------------
PT Telekomunikasi Selular Indonesia selected Tektronix, Inc. a
leading worldwide provider of communications network management
and diagnostics solutions, to provide additional protocol
analyzer solutions for advanced network equipment evaluations in
their new test lab set up.  Telkomsel extends its existing
Tektronix test infrastructure of K12, K15 and Spectra solutions
for GSM/GPRS testing to include a test platform comprising
Tektronix' K1297-G35 and Spectra2 equipment.  These solutions
will address mobile network element simulation and load testing
before live network deployment.

"Telkomsel has been using multiple Tektronix protocol analyzers
for years for 2G/2.5G network testing," said Marfani Hasan,
Manager, Switching Operation, Telkomsel.  "We want to ensure
high-performance levels of our network elements before we
introduce next generation technology services to our customers.
We are confident Tektronix' G35 and Spectra2 solutions will help
us perform the required network element simulation and load
tests before going live in the networks."

Building on Tektronix' recognized leadership in simulation and
emulation of mobile network elements, the K1297-G35 provides the
highest level of test performance available. The highly
integrated, portable Spectra2 solution allows simulation of
large-scale load conditions to enable validation of network
signaling and media delivery at maximum stress levels.

"Today's mobile market is highly competitive, and our customers
need robust and innovative test solutions that enable them to
launch new services and network elements in the most effective
and reliable way while reducing time to revenues," said Arif
Kareem, Vice President, Network Diagnostics, Tektronix.
"Telkomsel has been a valuable Tektronix customer for many
years, and we are pleased to extend our association with them as
they begin the next stage of their advanced technology
introduction."

                        About Tektronix

Headquartered in Beaverton, Oregon, Tektronix --
http://www.tektronix.com/-- is a supplier of test, measurement,  
and monitoring products, solutions and services for the
communications, computer, and semiconductor industries as well
as military/aerospace, consumer electronics, education and a
broad range of other industries worldwide.  With 60 years of
experience, Tektronix enables its customers to design, build,
deploy, and manage next-generation global communications
networks, advanced and pervasive technologies.  Tektronix has
operations in 19 countries worldwide.

                        About Telkomsel

PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share.  By the end of June 2006,
Telkomsel had close to 29.3 million customers, which, based on
industry statistics, represented a market share of more than
50%.

Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, an
internationally, through 259 international roaming partner in 53
countries as of June 2006.  The company provides its subscribers
with the choice between two prepaid cards-simPATI and kartuAs of
a pre-paid simPATI service, or the post-paid kartuHALO service,
as well as a variety of value-added services and programs.

Fitch Ratings, in August 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.


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

FENDER MUSICAL: S&P Holds B+ Rating & Revises Outlook to Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed the 'B+' corporate
credit rating on Scottsdale, Arizona-based Fender Musical
Instruments Corp. and revised the outlook to stable from
negative.  At the same time, Standard & Poor's assigned a 'B+'
rating, the same as the corporate credit rating, to the
company's $200 million senior secured term loan facility, with a
recovery rating of '3', indicating that lenders could expect
meaningful (50%-80%) recovery of principal in the event of a
payment default.  The company will also procure a new $100
million asset-based revolving credit facility.

The revised outlook is based on Fender achieving its May 2006
bank model for fiscal 2006 and maintaining appropriate credit
protection measures and liquidity.

"We believe the company's improved infrastructure, which has
contributed to significantly improved inventory management, will
help the company maintain operating stability over the
intermediate term," said Standard & Poor's credit analyst
Kenneth Shea.  "The new bank facility will also result in lower
interest expense, enhancing the company's liquidity and credit
measures."

The ratings are based on Fender's high debt leverage and narrow
business focus, and the discretionary nature of its products.  
These factors are somewhat mitigated by the company's strong
market share and global brand names in the guitar-and amplifier-
segment, including Fender, Squier, Gretsch, and Guild.

Fender Musical Instruments Corp. -- http://www.fender.com/-- is  
the world's foremost manufacturer of guitars, basses, amplifiers
and related equipment.  The FMIC family includes several other
distinctive musical instrument brands: Charvel(R), Gretsch(R),
Guild(R), Jackson(R), Olympia(R), Orpheum(R), SWR(R), Squier(R)
and Tacoma(R).  FMIC also manufactures a complete line of
professional audio equipment under the Fender brand, including
the Passport(R) portable sound system.  Fender also offers a
complete line of accessories, including strings, authorized
replacement parts, cases, straps and clothing among others.

FMIC's U.S. facilities are located in Arizona, California,
Tennessee and Washington, with international facilities in
England, France, Germany, Japan, Mexico, Spain and Sweden.


FORD MOTOR: U.S. Sales Decreased 13% to 228,623 in April
--------------------------------------------------------
Ford Motor Co. disclosed in a regulatory filing with the
Securities and Exchange Commission that the company's April U.S.
sales totaled 228,623, down 13% compared with a year ago.

"With April behind us, we remain focused on getting the word out
about the strength of our new products, and our marketing
offensive is moving into high gear," said Mark Fields, Ford's
President of The Americas.  "Customers are responding very
positively to our new 'Ford Challenge' ads that pit Ford
vehicles against the best of the competition, so we're
accelerating our plans."

Currently, Ford said it began airing two new F-Series truck ads
starring Mike Rowe, creator and star of the Discovery Channel's
hit show "Dirty Jobs."  The ads demonstrate the clear advantages
of Ford Tough trucks in safety, strength and capability.

Ford's internal data show that the Ford Challenge campaign has
generated a strong response in product favorability, purchase
consideration and sales.  Following the start of the successful
"Fusion Challenge" ads in January, the Ford Fusion posted
double-digit sales increases throughout the first quarter.

              Strong Crossover Growth Continues

Although April sales for most products were lower than a year
ago, new crossover utilities helped Ford increase its share of
the industry's fastest growing category.  Ford Edge sales were
9,134, and Lincoln MKX sales were 2,901.  In addition, Land
Rover introduced its first crossover utility, the LR2, and first
month sales were 1,302.  Total Ford Motor Company crossover
sales were 28% higher than a year ago during April.

"The success of our newest products - Ford Fusion, Edge, Lincoln
MKX, Ford Super Duty and Ford Expedition - gives us
encouragement that we're creating the products our customers
really want, and we're beginning to stabilize our retail market
share," Fields said.

"Three years ago, 70% of new Ford Motor Company vehicles sold in
the U.S. were trucks and traditional SUVs. Today, the balance is
nearly 50% cars and crossovers, and 50% trucks and SUVs," Fields
explained.  "We will continue to introduce new crossovers and
even more small cars in the U.S., as they represent the consumer
growth segments going forward."

                      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).


RESONA: Moody's Upgrades Bank Financial Strength Rating to D+
-------------------------------------------------------------
Moody's Investors Service on May 4, 2007, published the rating
results for banks in Japan as part of the application of its
refined joint default analysis and updated bank financial
strength rating methodologies.  Among the rated banks is Resona
Bank, Limited.  The rating agency made these changes to the
bank's ratings:

   * Bank financial strength rating: D+ from D-;

   * Long-term deposit ratings: /A1/ from /A3/;

   * Short-term deposit rating: /P-1/ from /P-2/;

   * Senior and junior subordinated rating: /A2/ from /Baa1/

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.  Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.


SAITAMA RESONA: Moody's Raises Financial Rating to D From D-
------------------------------------------------------------
Moody's Investors Service on May 4, 2007, published the rating
results for Saitama Resona Bank, Ltd., as part of the
application of the rating agency's refined joint default
analysis and updated bank financial strength rating
methodologies:

   * Bank financial strength rating: D from D-;

   * Long-term deposit ratings: A1 from A3;

   * Short-term deposit ratings: P-1 from P-2;

   * Senior and junior subordinated debt ratings: A2 from Baa1.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis. Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.


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

BOWATER INCORPORATED: Posts US$35 Million Net Loss in 1Q 2007
-------------------------------------------------------------
Bowater Incorporated reported a US$35.4 million net loss for the
first quarter of 2007 on sales of US$771.6 million.  These
results compare with a net loss of US$18.8 million on sales of
US$893.2 million for the first quarter of 2006.

"The continued decline in newsprint consumption and seasonally
slow coated paper demand, along with weak lumber markets, led to
price declines during the quarter," said David J. Paterson,
chairman, president and chief executive officer.  "We also
experienced considerable cost pressures as a result of the rapid
increase in the cost of recycled fiber and the impact of
production curtailments. We have seen some improvement in the
second quarter with better demand for several of our paper
grades and softening in the cost of recycled fiber."

First quarter 2007 special items, net of tax, consisted of a
US$35.9 million gain related to asset sales, a US$12.3 million
charge related to tax adjustments, a US$3.4 million loss
relating to foreign currency changes, and a US$7 million charge
for severance and merger-related costs.  Excluding these special
items, the net loss for the quarter would have been US$48.6
million, as compared with first quarter 2006 net loss before
special items of US$19.1 million.

During the first quarter, given weak demand for paper grades
partially due to seasonal reasons, the company curtailed
significant newsprint and specialty paper production. The
manufacturing cost impact of these curtailments for the quarter
is about US$15 million and reduced production overall by about
68,000 metric tons.

"The deterioration in domestic newsprint demand underscores the
strategic rationale for our proposed merger with Abitibi-
Consolidated, which is to significantly improve efficiencies by
reducing costs and increasing productivity," continued Mr.
Paterson.  "I am pleased with the progress we have made thus far
and look forward to closing this transaction in the third
quarter."

As of March 31, 2007, the company reported total assets of about
US$4.6 billion, total liabilities of about US$3.7 billion, and
minority interest of about US$69.7 million, resulting in a total
stockholders' equity of about US$796 million.

                          Segment Detail

For the first quarter, newsprint had an operating loss of
US$4.1 million, a decrease of US$15.4 million from the fourth
quarter.  The company's average transaction price decreased
US$22 per metric ton, compared to the fourth quarter.  Average
operating costs increased by US$8 per metric ton primarily due
to lower production volumes and higher recycled fiber costs.

For the first quarter, specialty papers had an operating loss of
US$8.7 million.  The company's average transaction price
decreased US$21 per short ton during the quarter, while average
operating costs improved by US$24 per short ton mainly due to
higher production volumes and greater efficiencies.

Compared to the fourth quarter of 2006, operating earnings for
market pulp decreased slightly to US$18.7 million in the first
quarter.  The average market pulp transaction price for the
company increased US$14 per metric ton.  Average operating costs
increased US$9 per metric ton compared to the fourth quarter, as
a result of an annual kraft mill outage at one of the company's
sites.

For the first quarter, lumber had an operating loss of
US$13.6 million.  The average lumber transaction price for the
company decreased US$7 per thousand board feet.  The company
also experienced a lumber inventory charge of about US$4 million
due to lower prices.

Operating earnings for the quarter were US$8.6 million, a
decrease of US$7.2 million from the fourth quarter.  The
company's average transaction price for coated papers decreased
US$35 per short ton in the quarter compared to the fourth
quarter of 2006.

                           About Bowater

Headquartered in Greenville, South Carolina, Bowater
Incorporated -- http://www.bowater.com/en/-- produces newsprint    
and coated mechanical papers.  In addition, the company makes
uncoated mechanical papers, bleached kraft pulp and lumber
products.  The company approximately has 7,800 employees and has
12 pulp and papermills in the United States, Canada and South
Korea and 12 North American sawmills that produce softwood
lumber.  Bowater also operates two facilities that convert a
mechanical base sheet to coated products.  Bowater's operations
are supported by approximately 1.4 million acres of timberlands
owned or leased in the United States and Canada and 30 million
acres of timber cutting rights in Canada.  Bowater common stock
is listed on the New York Stock Exchange, the Pacific Exchange
and the London Stock Exchange.  A special class of stock
exchangeable into Bowater common stock is listed on the Toronto
Stock Exchange.

                          *     *     *

As reported in the Troubled Company Reporter on March 29, 2007,
Moody's Investors Service downgraded Bowater Incorporated's
long-term debt ratings by one notch and downgraded the company's
corporate family rating to B2 from B1, and its senior unsecured
notes to B3 from B2.  At the same time, Moody's affirmed
Bowater's SGL-2 speculative grade liquidity rating.  Bowater has
announced a plan to merge with Abitibi-Consolidated Inc. that is
expected to close in third quarter of this year.  In light of
continued uncertainty, primarily with respect to the structural
status of individual bond issues at each company vis-a-vis the
other and a yet-to-be arranged operating credit facility, and
the associated potential that ratings for unsecured instruments
may need to be revised as a consequence of the pending merger,
the ratings outlook remains unchanged as developing.  Moody's
does not expect the merger to cause a revision to the B2 CFR.

On June 27, 2006, Fitch Ratings assigned a 'BB' rating to
Bowater, Inc.'s senior secured bank debt.  The company's issuer
default ratings, 'BB-' and senior unsecured bond ratings, 'BB-',
remain unchanged.  The Rating Outlook remains Stable.

Dominion Bond Rating Service downgraded the rating of Bowater
Canadian Forest Products Inc. to BB (low) from BB.  The trend
remains Negative.

Standard & Poor's Ratings Services lowered its ratings on
Bowater and subsidiary Bowater Canadian Forest Products Inc.,
including the corporate credit rating on each entity to 'B+'
from 'BB' in December 2005.  S&P said the outlook is stable.


CITIBANK KOREA: Ordered to Pay Menstruation Allowance
-----------------------------------------------------
Citibank Korea Inc. was ordered by South Korea's high court to
pay menstruation leave allowances to former and current women
employees, Earthtimes.org reports, citing Korea Times.

The women filed suit against the bank because it refused to pay
the allowances for two years.  According to the report, the bank
was obligated to pay allowances for period leave based on
regular pay to the defendants in accordance with the regulations
of the Labor Standard Law, the lower court ruled.

Citibank Korea was ordered to pay US$1,559 to each of the 1,298
former and current employees named in the suit, the report
added.

                     About Citibank Korea

Citibank Korea Inc. -- http://www.citibank.co.kr/-- provides a  
variety of commercial banking, trust, and investment services.  
The bank's services include consumer loans, deposits, trust
accounts, credit cards, Internet banking, financial derivatives,
foreign exchange, and securities dealing and brokeraging.

The Troubled Company Reporter - Asia Pacific reported on
May 8, 2007, that Moody's Investors Service, as part of the
application of its refined joint default analysis and updated
bank financial strength rating methodologies, revised these
ratings on Citibank Korea:

      * BFSR is changed to C- from D+.  

      * Global Local Currency Deposit Ratings assigned are
        Aa3/Prime-1.

      * Foreign Currency Deposit Ratings are unchanged at
        A3/Prime-2.

      * Foreign Currency Debt Rating for subordinated
        obligations is unchanged at A1.

All the ratings have a stable outlook except for the Foreign
Currency Deposit Ratings, which carry a positive outlook.


DRESSER INC: Riverstone-Led Consortium Completes Takeover
---------------------------------------------------------
A consortium led by Riverstone Holdings LLC has completed the
previously announced acquisition of Dresser, Inc., which is a
leader in providing highly engineered infrastructure products to
the global energy industry.

John P. Ryan, president and chief operating officer, is
replacing Patrick M. Murray as chief executive officer.  Mr.
Murray retired from his position effective with the completion
of the sale.

"The change in ownership of Dresser will be transparent to our
customers and employees-it's business as usual," said Mr. Ryan.  
"The Dresser name has been synonymous with the energy industry
for more than a hundred years, and our global presence, strong
brands and long-time reputation for reliability and service in
the energy industry will continue to serve us well in the
future.  Our new owners have considerable experience and
insights into the energy industry worldwide, and we look forward
to benefiting from the expertise they bring."

Riverstone is joined by First Reserve and Lehman Brothers Co-
Investment Partners in the investor group.  First Reserve
previously acquired Dresser in 2001 in partnership with Odyssey
Investment Partners and is investing in the current transaction
through its recently formed First Reserve Fund XI, L.P.  
Riverstone is investing through its Carlyle/Riverstone Global
Energy and Power Fund III, L.P.  The terms of the transaction
were not disclosed.

Commenting on his retirement, Mr. Murray noted, "Dresser is well
positioned to continue as a worldwide leader in the design,
manufacture and marketing of energy infrastructure equipment.  
John's promotion is decidedly well deserved.  His commitment to
continuous improvement, dedication to Dresser employees and
focus on the customer will serve the company well in the years
to come."

Mr. Ryan was appointed president and chief operating officer of
Dresser in December 2004.  He had previously served as president
of Dresser Wayne, the largest division of Dresser and a
worldwide leader in the retail fueling industry, from 1999 to
2005.  Prior to joining Dresser Wayne in 1987 as national
accounts sales manager, he served in various international and
domestic sales positions for Goulds Pumps Inc.

       About Riverstone Holdings LLC and The Carlyle Group

Riverstone Holdings LLC and The Carlyle Group are the co-general
partners of Carlyle/Riverstone Global Energy and Power Funds.  
Riverstone, a New York-based energy and power focused private
equity firm founded in 2000, has US$8.1 billion under
management.  Riverstone conducts buyout and growth capital
investments in the midstream, upstream, power, oilfield
services, and renewable sectors of the energy industry.  To
date, the firm has committed more than US$5.5 billion to more
than 36 investments across each of these five sectors,
representing companies with nearly US$40 billion of assets.  The
Carlyle Group is a global private equity firm with US$56 billion
under management.  Carlyle invests in buyouts, venture and
growth capital, real estate and leveraged finance in North
America, Europe and Asia. Since 1987, the firm has invested
US$26.4 billion of equity in 601 transactions.

                       About Dresser, Inc.

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets    
quipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide, including Korea
and Japan.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
April 20, 2007, that Standard and Poor's Ratings Services
affirmed its 'B' corporate credit rating on oilfield products
manufacturer Dresser Inc., based on the expectation that the
company's debt leverage will improve, following its acquisition,
to levels consistent with the ratings over the medium term.  The
outlook is negative.  At the same time, the ratings on Dresser
were removed from CreditWatch with developing implications,
where they were placed on March 12.  Standard & Poor's also
assigned:

   -- its 'B' rating and '2' recovery rating (indicating the
      expectation of substantial (80%-100%) recovery of
      principal in the event of a payment default) to Dresser's
      proposed US$1.3 billion first-lien bank facilities; and

   -- its 'CCC+' rating and '5' recovery rating (indicating the
      expectation of negligible (0%-25%) recovery of principal
      in the event of a payment default) to Dresser's proposed
      US$750 million second-lien bank facilities.

Moody's Investors Service downgraded Dresser, Inc.'s Corporate
Family Rating to B1 from Ba3.  The rating for the Company's
Senior Secured Tranche C Term Loan maturing 2009 was downgraded
to B1 from Ba3.  Moody's also downgraded the rating for the
Company's Senior Unsecured Term Loan maturing 2010 to B2 from
B1.  The Company's Senior Subordinated Notes maturing 2011 was
downgraded to B3 from B2.  Moody's said the rating outlook is
negative.


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

AMBANK BHD: Moody's Holds Financial Strength Rating at D-
---------------------------------------------------------
Moody's Investors Service, on May 4, 2007, published the rating
results for banks in Malaysia as part of the application of its
refined joint-default analysis and updated bank financial
strength rating methodologies.

With the new methodology, Ambank (M) Bhd's BFSR and foreign
currency deposit ratings are unchanged at D-/Baa2/P-3.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations.  
However, such support is often uncertain. Moody's uses
conservative support assumptions and a limited number of support
levels to ensure that sufficient weight is given to a bank's
intrinsic financial strength in its bank deposit and debt
ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.


CIMB BANK: Moody's Affirms Financial Strength Rating at D
---------------------------------------------------------
On May 4, 2007, Moody's Investors Service published the rating
results for banks in Malaysia as part of the application of its
refined joint-default analysis and updated bank financial
strength rating methodologies.

With the new methodology, CIMB Bank Bhd's BFSR and foreign
currency deposit ratings are unchanged at D/A3/P-1.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations.  
However, such support is often uncertain. Moody's uses
conservative support assumptions and a limited number of support
levels to ensure that sufficient weight is given to a bank's
intrinsic financial strength in its bank deposit and debt
ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.


DCEIL INTERNATIONAL: Bursa Starts Securities Delisting Exercise
---------------------------------------------------------------  
The Bursa Malaysia Securities Bhd has commenced a delisting
procedure against Dceil International Berhad after it failed to
submit its regularization plan to the Securities Commission and
other relevant authorities.

According to earlier reports from the Troubled Company Reporter
- Asia Pacific, the company was required to submit its
Regularization Plan to the Bursa Securities on April 30.

Dceil International has been served with a notice from the Bursa
Securities on May 7, 2007, to make representations as to why its
securities should not be delisted.

                          *     *     *

DCEIL International Bhd is principally involved in trading,
distribution and installation of ceilings and partitioning
works.  Its other activities include manufacturing of toilet
partitions and investment holding.  The Group operates in
Malaysia and other foreign countries.

DCEIL is classified under Practice Note 1 and Practice Note 17
of the Bursa Malaysia Securities Berhad's Listing Requirements,
and is therefore required to implement a plan to regularize its
finances.

As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 7, 2006, Wang & Co, the external auditor of Dceil, raised
doubt on the company's ability to continue as a going concern
after auditing the company's financial statements for the fiscal
year ended June 30, 2006.  The auditor pointed to the bankers'
demands for the company to settle its outstanding loans.

Dceil's balance sheet as of end-September 2006 reflected total
assets of MYR139.93 million and total liabilities of MYR146.6
million, resulting in a shareholders' equity deficit of MYR6.66
million.


EON BANK: Moody's Affirms Financial Strength Rating at D
--------------------------------------------------------
On May 4, 2007, Moody's Investors Service published the rating
results for banks in Malaysia as part of the application of its
refined joint-default analysis and updated bank financial
strength rating methodologies.

With the new methodology, EON Bank Bhd's BFSR and foreign
currency deposit ratings are unchanged at D/Baa2/P-3

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations.  
However, such support is often uncertain. Moody's uses
conservative support assumptions and a limited number of support
levels to ensure that sufficient weight is given to a bank's
intrinsic financial strength in its bank deposit and debt
ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.


RHB BANK: Moody's Keeps D Rating on Bank's Financial Strength
-------------------------------------------------------------
Moody's Investors Service, on May 4, 2007, published the rating
results for banks in Malaysia as part of the application of its
refined joint-default analysis and updated bank financial
strength rating methodologies.

With the new methodology, RHB Bank Bhd's BFSR and foreign
currency deposit ratings are unchanged at D/A3/P-1.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations.  
However, such support is often uncertain. Moody's uses
conservative support assumptions and a limited number of support
levels to ensure that sufficient weight is given to a bank's
intrinsic financial strength in its bank deposit and debt
ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.


TENAGA NASIONAL: Malaysia Lifts 25% Cap on Foreign Ownership
------------------------------------------------------------
Malaysia has nixed the 25% cap on foreign shareholdings in
Tenaga Nasional, Agence France Press says, noting that analysts
perceived the move to attract more overseas funds into one of
the country's largest companies.

Tenaga received on April 19 the approval from the Ministry of
Finance to remove the foreign investor restriction on
shareholdings.

"With the lifting of the said restriction, all foreign
shareholders will be accorded the same rights, benefits, power
and privileges and be subject to all liabilities, duties and
obligations," the company said in a disclosure with the Bursa
Malaysia Securities Bhd.

In addition, the company also told the bourse that its board of
directors agreed to convene an extraordinary general meeting to
seek shareholders' approval over the change.  No specific date
was mentioned in the disclosure.

The AFP noted that as of April 12, Tenaga's combined foreign
shareholdings stood at 27.04% but those above the 25% threshold
would not be entitled to vote.

Analysts hailed the move, saying the cap and the lack of voting
rights may have deterred foreign fund managers from investing
further in Tenaga, the report says.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad
-- http://www.tnb.com.my/-- is engaged in the generation,  
transmission, distribution and sale of electricity.  The Company
also manufactures, sells and repairs transformers and
switchgears.  It is also involved in provision of project
management, consultancy, engineering works, contracting,
trading, risk management, risk surveys, insurance, research and
development, property management, energy project development and
investment holding services.  It also undertakes repairs and
maintenance of motor vehicles.  The Group operates in Malaysia
and Mauritius.

The Company is currently undertaking liability management
exercises, which are expected to extend the Company's debt
maturity profile and reduce refinancing risk.

Tenaga Nasional carries Moody's Investors Service 'Ba' rating
due to its relatively high financial leverage and significant
PPA obligations.


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

BIG SKY: Court Taps Whittfield and Finnigan as Liquidators
----------------------------------------------------------
On April 3, 2007, the High Court of Dunedin appointed John
Trevor Whittfield and Peri Micaela Finnigan as the liquidators
of Big Sky Livestock Ltd.

Messrs. Whittfield and Finnigan fixed June 1, 2007, as the last
day for receiving the creditors' proofs of debt.

The Liquidators can be reached at:

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

Please direct all enquiries to:

         David Taylforth
         Telephone:(09) 306 3340


DIVE MECHANIX: Appoints Price and Horton as Liquidators
-------------------------------------------------------
The shareholders of Dive Mechanix (NZ) Limited resolved on
April 19, 2007, 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:

         John Albert Price
         Christopher Robert Ross Horton
         Horton Price Limited
         PO Box 9125 Newmarket
         Auckland
         New Zealand
         Telephone:(09) 366 3700
         Facsimile:(09) 366 7276


DIVETEC (NZ): Shareholders Opt to Liquidate Business
----------------------------------------------------
On April 19, 2007, the shareholders of Divetec (NZ) Ltd. met and
resolved to liquidate the company's business.

John Albert Price and Christopher Robert Ross Horton, as the
company's liquidators, require the creditors to file their
proofs of debt by May 18, 2007.

The Liquidators can be reached at:

         John Albert Price
         Christopher Robert Ross Horton
         Horton Price Limited
         PO Box 9125 Newmarket
         Auckland
         New Zealand
         Telephone:(09) 366 3700
         Facsimile:(09) 366 7276


GRAYSHEILD LTD: Appoints Craig Emerson Speakman as Liquidator
-------------------------------------------------------------
On April 18, 2007, the shareholders of Graysheild Ltd. passed a
special resolution liquidating the company's business.  Craig
Emerson Speakman was appointed as liquidator.

The Liquidator can be reached at:

         Craig Emerson Speakman
         PO Box 9687 Newmarket
         Auckland
         New Zealand
         Telephone:(09) 630 3808
         Facsimile:(09) 630 3970


KOPUTAHI LTD: High Court to Hear Wind-Up Petition on May 14
-----------------------------------------------------------
The High Court of Rotorua will hear a petition to wind up the
operations of Koputahi Ltd. on May 14, 2007, at 10:45 a.m.

The petition was filed by the Commissioner of Inland Revenue on
March 26, 2007.

The CIR's solicitor is:

         Eleanor M. Duncan-Sittlington
         Telephone:(07) 959 0373

Please direct all enquiries to:

         L. Brownbridge
         Telephone:(07) 921 3832


NATURE'S FOREST: Placed Under Liquidation
-----------------------------------------
Nature's Forest Products Ltd. was placed under liquidation on
April 12, 2007.

Grant Bruce Reynolds and Gilbert Dale Chapman, the appointed
liquidators, fixed May 20, 2007, as the last day for receiving
creditors' proofs of debt.

The Liquidators can be reached at:

         Grant Bruce Reynolds
         Gilbert Dale Chapman
         Reynolds & Associates Limited
         Insolvency Practitioners
         PO Box 259059, Greenmount
         East Tamaki, Auckland
         New Zealand
         Telephone:(09) 522 5661
         Facsimile:(09) 522 5788


PAPER VENTURES: Subject to CIR's Wind-Up Petition
-------------------------------------------------
A petition to wind up the operations of Paper Ventures Ltd. was
filed by the Commissioner of Inland Revenue on March 9, 2007.

The petition will be heard before the High Court of Auckland on
June 7, 2007, at 10:00 a.m.

The CIR's solicitor is:

         Kay S. Morgan
         Telephone:(07) 959 0373

Please direct all enquiries to:

         R. Avey
         Telephone:(06) 968 4039


R & K BUILDERS: Taps Shephard and Dunphy as Liquidators
-------------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
as liquidators of R & K Builders Ltd. on April 16, 2007.

The Liquidators can be reached at:

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


SAFETY PROJECTS: Faces CIR's Wind-Up Petition
---------------------------------------------
On March 5, 2007, the Commissioner of Inland Revenue filed a
petition to wind up the operations of Safety Projects Group Ltd.

The petition will be heard before the High Court of Auckland on
June 7, 2007, at 10:00 a.m.

The CIR's solicitor is:

         Kay S. Morgan,
         Telephone:(07) 959 0373

Please direct all enquiries to:

         C. D. Astrella
         Telephone:(07) 959 0225


TEBROC CONSULTANTS: Wind-Up Petition Hearing Set for May 14
-----------------------------------------------------------
The High Court of Rotorua will hear a petition to wind up the
operations of Tebroc Consultants Ltd. on May 14, 2007, at
10:45 a.m.

The Commissioner of Inland Revenue filed the petition on
March 26, 2007.

The CIR's solicitor is:

         Simon John Eisdell Moore
         Meredith Connell
         Forsyth Barr Tower, Level 17
         55-65 Shortland Street
         PO Box 2213, Auckland
         New Zealand

Please direct all enquiries to:

         R. E. Harvey
         Telephone:(09) 336 7556


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

BANK OF THE PHIL. ISLANDS: Earmarks PHP2 Bil. For New UK Branch
---------------------------------------------------------------
Bank of the Philippine Islands has confirmed an earlier Business
Mirror report that it plans to spend PHP2 billion for its new
United Kingdom branch.

The report came after the bank received British regulator
Financial Services Authority's approval in principal the Bank of
the Philippine Islands' application to establish a wholly owned
banking subsidiary in London.

According to the Troubled Company Reporter - Asia Pacific report
on Mar. 26, 2007, BPI reportedly wants to venture into London to
get a bigger share of the lucrative overseas Filipino workers'
remittance business in the European market.   This is the bank's
first foray in Europe.

As reported in the TCR-AP on Dec. 12, 2006, BPI has received the
approval of the Bangko Sentral ng Pilipinas' policy-making
Monetary Board to establish the London subsidiary.

The subsidiary will be called BPI Europe, the TCR-AP reported,
citing BSP Deputy Governor Nestor Espenilla Jr.

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 bank carries Fitch Rating's C individual rating.


BAYAN TELECOMMUNICATIONS: Turns Around with PHP5-Bil. Net Income
----------------------------------------------------------------
Bayan Telecommunications Holdings Corporation's total revenues
grew by 9.9% year on year to PHP7.57 billion for the year 2006
from PHP6.89 billion, the company's parent, Benpres Holdings
reported in its results filed with the Philippine Stock
Exchange.

Net operating revenue was almost flat at PHP4.78 billion,
compared to PHP4.72 billion, while net income of PHP0.97 billion
was a turnaround from a net loss of PHP0.54 billion the year
before.

Benpres Holdings notes that "Bayantel was able to meet all debt
service requirements under its court-approved rehabilitation
plan despite encountering major challenges in its major business
lines.  Declining revenues, particularly in domestic and
international long distance, weighed unfavorably against
Bayantels.  Landline subscribers remained relatively unchanged
from the previous year at about 290,000 lines."

Bayan Telecommunications Holdings Corporation, which is 85.4%
owned by Benpres Holdings Corp. and the Lopez Group, was  
incorporated on October 15, 1993.  Bayan Telecommunications Inc.
-- http://www.bayantel.com.ph/-- is the operating arm of BTHC  
and is formerly known as International Communications
Corporation.  BayanTel is a telecommunications company offering
an extensive breadth of traditional links and circuitry as well
as cutting edge data and voice applications.  BayanTel's
existing service areas in Metro Manila and Bicol, as well as its
local exchange service areas in the Visayas and Mindanao regions
combined, cover a population of over 25 million, nearly 33% of
the population of the Philippines.  BayanTel has operations in
Japan and the U.K.

In a report by the Troubled Company Reporter - Asia Pacific on
July 4, 2006, the company has paid over PHP900 million in
principal and interest on its debt amounting to PHP25.39 billion
in aggregate, of which creditors own PHP14.74 billion, while
PHP10.65 billion is due to its bondholders.

On June 28, 2004, the Pasig Regional Trial Court Branch 158
approved the company's financial rehabilitation based on
sustainable debt level of PHP17.13 billion, payable over 19
years.  According to RTC Judge Rodolfo R. Bonifacio, the
remainder of BayanTel's debt may be converted to another
appropriate instrument that will not be a financial burden to
parent Benpres Holdings Corp.  It also mandated BayanTel to
treat all creditors equally.  Some of BayanTel's creditors have
appealed the lower court decision.


BENPRES HOLDINGS: Sycip Gorres Velayo Raises Going Concern Doubt
----------------------------------------------------------------
Benpres Holdings Corporation reported net income attributable to
the equity holders of the parent company of PHP4.21 billion for
the year 2006 and against the PHP732.00 million it reported in
2005, the company reported in its annual financials filed with
the Philippine Stock Exchange.

The increase was due to a 79% increase in equity in net earnings
of associates to PHP4.59 billion from PHP2.57 billion.  This
account is a result of gains booked by affiliate First
Philippine Holdings Corp. from the initial public offering of
First Gen Corp. in 2006

The group's net income reached PHP4.62 billion in 2006.  The
company posted consolidated revenues of PHP17.39 billion for the
year 2006, 2% higher than the PHP17.05 billion in 2005.  

In 2006, Benpres disposed of its 49% equity in Corporate
Information Systems, Inc. to Manila Electric Co. as settlement
of Benpres' liability.  The excess of payable over carrying
value  of the investments in CIS amounted to PHP286.00 million.  
Provisions for investments at equity, deposits and advances
dropped by 75% to PHP572.00 million from PHP2.32 billion the
previous year, due to additional impairment loss recognized on
its deposits to Sky Vision.

Foreign exchange gains amounted to PHP920.00 million, an
increase of 76% over the PHP522.00 million in 2005.

As of Dec. 31, 2006, the company's total assets stood at
PHP14.87 billion, while total stockholders' equity at yearend
increased by 9%, reducing the deficit to PHP9.23 billion from
PHP10.14 billion, given the net income posted in 2006.

In 2006, Benpres made semi-annual interest payments on its
direct and contingent liabilities that are covered in its
proposed Balance Sheet Management Plan.  The company continues
to negotiate a debt restructuring with its creditors.

                      Going Concern Doubt

After reviewing the company's financials for the year 2006, Ma.
Vivian C. Ruiz at Sycip Gorres Velayo and Co. raised significant
doubt on the company's ability to continue as a going concern,
which depends on the success of the company's Balance Sheet
Management Plan.

The company's first quarter financials can be obtained free at:

             http://bankrupt.com/misc/RCBC1q.pdf

Headquartered in Pasig City Philippines, Benpres Holdings
Corporation -- http://www.benpres-holdings.com/-- is a 56.22%-
owned subsidiary of Lopez, Inc.  Both entities were incorporated
in the Philippines.  Benpres Holdings and its subsidiaries are
mainly involved in investment holdings, broadcasting and
entertainment, and water distribution.  The company's associates
are involved in telecommunications, power generation and
distribution, cable television, real estate development and
infrastructure.


CHINA BANKING: Board OKs Dividends & Increase in Capital Stock
-------------------------------------------------------------
China Banking Corporation's board of directors has declared a
25% cash dividend or PHP25.00 per share.  The record date and
payment date is to be announced.

The board of directors has also ratified the increase of the
bank's authorized capital stock from PHP10.00 billion to
PHP16.00 billion, or from 100,000,000 shares to 160,000,000
shares with a par value of PHP100.00 each share, and declaring a
25% stock dividend to cover the required minimum subscription
and payment on the increase, subject to the
approval of the stockholders.

China Banking Corporation -- http://www.chinabank.com.ph/-- is  
the first privately-owned local commercial bank in the
Philippines, with products and services including deposits and
related services, international banking services, insurance
products, loans and credit facilities, trust and investment
services, insurance products, and other services such as
acceptance of various bill payments and donations to charitable
institutions.

China Bank has 140 branches and 166 Automated Teller Machines
nationwide.

                          *     *     *

The bank carries Fitch's BB long-term issuer default rating, C
individual rating and a support rating of 4.


CHINA BANKING: Posts a PHP3.54-Billion Net Income for 2006
----------------------------------------------------------
China Banking Corporation registered a net income of PHP3.54
billion for the year ended Dec.  31, 2006, capping five years of
record performance, the bank said in its results report to the
Philippine Stock Exchange.

The combined increase in interest revenues from lending and
investment, an outcome of the bank's revenue replacement
strategy and its efficiency in maintaining its overhead expenses
resulted in this 11.14% profit expansion from 2005.

Gross interest income climbed by 9.69% from 2005 due to the
combined increase in interest income from loans, trading &
investment securities, as well as deposits with other banks.  
Higher loan volume from the corporate and consumer lending side
drove the growth in interest income from loans & receivables by
15.00% from 2005.  Likewise, interest income from trading &
investment securities grew from higher volume of GS holdings.

Interest expense rose by 16.26% from PHP4.36 billion in 2005 to
PHP5.07 billion in 2006.  Higher volume for both peso and dollar
placements pushed up total cost of funding.  Consequently, net
interest income grew by 4.79% from PHP5.84 billion in 2005 to
PHP6.12 billion in 2006.  The bank's annual provision for
impairment and credit losses (included in the operating
expenses) stood at PHP1.063 billion for 2006 as additional
buffer for losses on loans and investment properties were set
up.

Other operating income increased to P 3.34 billion or by 9.18%
from 2005.  Lower margins from currency trading resulted in the
slight 0.64% growth in foreign exchange gain from 2005.

Government securities trading gain both for position-taking and
fund deployment grew by 5.99% to PHP1.29 billion in 2006 from
PHP1.21 billion in 2005 as the bank started to sell off its
inventory.  Income from service fees, charges and commission
also grew by 5.18% to PHP748.86 million in 2006 from our cash
management services and other loan & deposit related
transactions.  Income from trust fees grew by 11.53% from 2005
on account of higher volume of funds handled by our Trust unit.  
Gains on asset foreclosure and dacion transactions, which arose
from the difference between the fair market value of properties
and the carrying value of the related loan, slightly decreased
by 5.72% to PHP300.56 million.  Income from acquired assets
stood at P 126.37 million, up by 26.68% from 2005 through the
regular selling efforts of the bank of its foreclosed assets
without resorting to SPVs.  Total miscellaneous income increased
by 9.18% from 2005 mainly due to contribution from loan
penalties, dividends, consumer banking related fees.

Operating expenses (excluding provision for losses) went up by
5.76% or PHP236.64 million from 2005.  Taxes and licenses
increased by 30.60% in 2006 from higher GRT payable brought
about by higher revenues.  Occupancy costs grew by 14.81% in
2006 from PHP392.98 million in 2005 due to annual rent increases
on some lease contracts and higher cost of security, janitorial
and other services.  Depreciation and amortization grew by
19.84% from 2005 as a result of new capital expenditures and
technology-related investments last year.  Stationeries,
supplies and postage also increased by 37.96% from 2005 brought
about by price increases for these items.  Insurance costs
surged by 15.89% from 2005 mainly due to higher PDIC insurance
cost brought about by higher deposits.  Transportation and
traveling expenses increased by 23.84% from PHP115.17 million in
2005 to PHP143.22 million in 2006 due to increase in fuel &
lubricants prices for the year.  More travel-related expenses
were also charged this year.  Repairs and maintenance increased
by 16.45% from additional technology-related cost.  Lower
provisions for tax liabilities, drop in litigation and
advertising-related expenses reduced miscellaneous expenses by
40.96% to PHP347.63 million.

Total assets expanded by 17.07% from PHP132.95 billion to
PHP155.65 billion mainly from the build up of interest accruing
assets.  Cash and other cash items increased by 8.06% to PHP2.60
billion from PHP2.41 billion in 2005 from the higher deposits
which required increased reserves.  Similarly, due from BSP grew
by 102.92% to PHP9.27 billion from 2005.  Meanwhile, due from
Other Banks dropped by 32.08% to PHP2.44 billion from PHP3.59
billion in 2005 due to lower foreign
bank placements.  Interbank Loans Receivables increased by
PHP3.33 billion to PHP9.55 billion from PHP6.22 billion in 2005
as excess liquidity funds were placed with BSP.

The interest rate volatility in the bond market resulted in the
continued repositioning of our government securities holdings.  
Consequently.  Financial Assets at Fair Value through Profit and
Loss decreased by 21.16% or PHP3.67 billion to PHP13.67 billion
from P 17.34 billion while Available-for-Sale Financial Assets
increased 102.66% from PHP10.22 billion in 2005 to PHP20.71
billion from additional volume of high-yielding government
securities.  Held-to-Maturity Financial
Assets fell by 4.73% or PHP784.63 million from PHP16.60 billion
in 2005.

Receivables from customers (net) grew by 15.19% to PHP70.79
billion from PHP61.45 billion in 2005, right on track with the
bank's plan to accelerate lending to quality borrowers.  The
bank remained a leading provider of credit to the middle market
sector but stepped up its participation in corporate loan
syndications.  Higher consumer lending particularly on housing
loans also contributed to the increased volume.  The integration
of the internal credit risk rating system into our credit
evaluation process supported our drive to enhance loan quality
as well as accelerate loan expansion.  The bank provided PHP716
million in additional loan loss reserves bringing the total loan
loss reserves to PHP7.41 billion; loan loss coverage even
improved to 96.92%, better than the previous year's 94.64%.
Meantime, NPL ratio fell significantly to 6.51% from 7.92% in
2005 from our more rigorous approach to credit risk and higher
volume of loans.

Accrued interest receivables grew by 9.62% to PHP927 million
from PHP846 million in 2005 due to higher volume in loans
especially in mortgage lending.  Bank premises, furnitures and
equipment increased by 8.07% to PHP3.30 billion from PHP3.05
billion as the bank continues to invest in fixed assets to
complement its business plans and strategies including seven (7)
new branches opened during the year.  The increase in equity
investments by 59.54% from PHP2.02 million in 2005 to PHP3.24
million in 2006 mostly represents the increase in the bank's
equity interest in CBC Properties and Computer Center, Inc.  
from 40% in 2005 to 100% in 2006.  Investment properties fell to
PHP4.38 billion from PHP4.69 billion in 2005 due to
depreciation/amortization of buildings and improvements in 2006.  
Deferred taxes dropped by 5% to P 554.99 million in 2006 from
PHP584.18 million in 2005 due to higher deferred taxes
liabilities on unrealized trading gains and fair value
adjustments on asset foreclosures and dacion transactions.  
Other assets increased by 18.88% due to increases in accounts
and sales contracts receivables.

On the liabilities side, total customer deposits grew by 18.71%
from PHP102.46 billion in 2005 to PHP121.63 billion in 2006 as
both the low-cost & high yielding long term deposits expanded.  
Low-cost deposit base grew by a record of P 6.84 billion by
year-end.  The implementation of the branchbased marketing
program and sales management system continues to attract low
cost deposits and steadily grow the total funding base.  Demand
deposits alone grew by 28.55% or PHP4.45 billion 2006.

Savings deposits (including Special Savings) grew by 30.55% in
2006 from PHP44.81 billion in 2005. Bills payable dropped by
5.01% in 2006 due to lower need for bank borrowings.  Manager's
checks rose to PHP246.28 million from PHP224.23 million in 2005
as there was increased demand for this product during the
period.  Accrued interest, taxes and other expenses grew by
6.12% to PHP2.75 billion in 2006 from PHP2.59 billion in 2005
due to increase in accrued interest payable.  Other liabilities
grew by 28.81% mainly from increases in accounts payable,
acceptance payable, margin deposits, due to BSP and other
miscellaneous liabilities.

Total capital funds reached PHP24.98 billion, 13.91% higher than
2005.  This was achieved despite the declaration of 25% stock
and 30% cash dividends as of August 2006.

                    Key Performance Indicators

The bank again surpassed its targets as net profit reached a new
record of PHP3.53 billion in 2006.  The resulting return on
average equity of 15.05% and return on average assets of 2.44%
reflects industry-best performance.  

Cost to income ratio [other expenses excluding provision for
losses divided by gross income] was maintained at 45.90% vs
46.13% in 2005, showing the bank's continuing industry-best cost
efficiency.  Net interest margin declined to 4.82% in 2006 from
5.26% in 2005 as interest yields fell to record lows last year,
although it remained well above the industry average.  The
capital adequacy ratio reached 23.68% in 2006 and 23.17% in
2005, making China Bank one of the most solidly capitalized
banks in the country.  China Bank is one of the very few banks
that can absorb the requirements of Basel 2 which take effect
starting middle of 2007, pursue aggressive growth strategies and
sustain a good dividend payout ratio and still continue to be
well above the 10% minimum CAR.

The company's first quarter financials can be obtained free at:

           http://bankrupt.com/misc/chinabanking2006.pdf

China Banking Corporation -- http://www.chinabank.com.ph/-- is  
the first privately-owned local commercial bank in the
Philippines, with products and services including deposits and
related services, international banking services, insurance
products, loans and credit facilities, trust and investment
services, insurance products, and other services such as
acceptance of various bill payments and donations to charitable
institutions.

China Bank has 140 branches and 166 Automated Teller Machines
nationwide.

                          *     *     *

The bank carries Fitch's BB long-term issuer default rating, C
individual rating and a support rating of 4.


METROPOLITAN BANK: Declares a 3% Dividend Payout
------------------------------------------------
Metropolitan Bank and Trust Co.'s board of directors has
declared a 3% cash dividend on May 2, 2007, the bank disclosed
to the Philippine Stock Exchange.  Both the record and payment
date is yet to be announced.

The bank adds that based on the outstanding capital stock of
PHP36,145,387,000, the dividend amounts to PHP1,084,361,610, or
PHP0.60 per share.

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

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Moody's Investors Service revised the
outlook of Metropolitan Bank & Trust Co.'s foreign currency
long-term deposit rating of B1 and foreign currency subordinated
debt rating of Ba3 from negative to stable.

The outlook for Metropolitan Bank's foreign currency Not-Prime
short-term deposit rating and bank financial strength rating of
D remain stable.

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

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

   * Short-term rating 'B,'

   * Support rating '3.

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


METROPOLITAN BANK: Shareholders Elect Antonio Abacan As Chairman
----------------------------------------------------------------
The shareholders of Metropolitan Bank and Trust Company have
elected Antonio S. Abacan, Jr. as chairman of its board of
directors, the bank said in a regulatory filing with the
Philippine Stock Exchange.

Along with Mr. Abacan, George S.K. Ty was elected as chairman of
the Metrobank group, while Ramon Y. Sy and Francisco C.
Sebastian will serve as vice-chairs of the board.

Metrobank's new corporate secretaries are Alfred V. Ty and
Antonio V. Viray.

Metrobank's new directors are:

   - George S.K Ty
   - Antonio S. Abacan, Jr.
   - Arthur Ty
   - Ramon Y. Sy
   - Francisco C. Sebastian
   - Henry M. Sun
   - Renato C. Valencia
   - Valentin A. Araneta
   - Remedios L. Macalincag
   - Angelito M. Villanueva
   - Edmund A. Go
   - Antonio V. Viray

While Ramon Y. Sy, Renato C. Valencia, Valentin A. Araneta, and
Remedios L. Macalincag were appointed as independent directors.

The bank's list of officers, along with promotions and movements
within its executive organization, can be obtained free at:

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

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

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Moody's Investors Service revised the
outlook of Metropolitan Bank & Trust Co.'s foreign currency
long-term deposit rating of B1 and foreign currency subordinated
debt rating of Ba3 from negative to stable.

The outlook for Metropolitan Bank's foreign currency Not-Prime
short-term deposit rating and bank financial strength rating of
D remain stable.

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

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

   * Short-term rating 'B,'

   * Support rating '3.

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


PHIL. NATIONAL BANK: Sets Annual Stockholders' Meeting on May 29
----------------------------------------------------------------
Philippine National Bank has scheduled its annual stockholders'
meeting on May 29, 2006.

The agenda includes:

   - report of the president on the results of operations for
     the year 2006;

   - approval of the 2006 annual report;

   - approval of the amendment of the Articles of Incorporation
     to withhold the stockholders' pre-emptive right to
     subscribe to any new additional shares of the bank;

   - ratification of all acts, resolutions and proceedings of
     the board of directros, and corporate officers since the
     previous stockholders' meeting;

   - election of directors; and

   - appointment of external auditor

Philippine National Bank -- http://www.pnb.com.ph/-- is the   
Philippine's first universal bank established on July 22, 1916.  
The bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units.  Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance.  Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services.  It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006 that Moody's Investors Service has revised the
outlook of Philippine National Bank's foreign currency long-term
deposit rating of B1, local currency senior debt rating of Ba2,
and local currency subordinated debt rating of Ba3 to stable
from negative.

The outlook for PNB's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of E remains
stable.

The TCR-AP reported on Nov. 1, 2006 that Fitch Ratings affirmed
Philippine National Bank's individual rating at E and support
rating 3 after a review of the bank.

Standard and Poor's Ratings Services has given PNB B short-term
foreign issuer credit and short-term local issuer credit
ratings, as well as B- long-term foreign issuer credit and
long-term local issuer credit ratings effective as of April 26,
2006.


PHILODRILL CORP: Buys 4.07 Billion Phoenix Gas Shares
-----------------------------------------------------
The Philodrill Corp. has acquired PHP32.44 million worth of
Phoenix Gas & Oil Exploration Company, Inc, Philodrill disclosed
to the Philippine Stock Exchange.

The acquisition of 4.07 billion shares are as follows:

Seller                            No. of Shares      Par Value
------                            -------------   -------------
Phoenix Energy Corp.                 2.81 bil.    PHP28.13 bil.
Combined Equity Ventures, Inc.       1.25 bil.    PHP12.51 bil.
Raymundo Feliciano                   1.00 mil.     PHP1,000.00
Antonio Sevilla                      1.00 mil.     PHP1,000.00
Raymundo Feliciano, Jr.              1.00 mil.     PHP1,000.00
Felix Gonzales, Jr.                  1.00 mil.     PHP1,000.00
Yolanda Balmes                              1             0.01

Headquartered in Mandaluyong City, Philippines, --
http://www.philodrill.com-- The Philodrill Corporation was  
registered with the Philippine Securities and Exchange
Commission on June 26, 1969, as an oil exploration and
production company.  In 1989, realizing the need to balance the
risk associated with its petroleum activities, the company
changed its primary purpose to that of a diversified holding
company while retaining petroleum and mineral exploration and
development as one of its secondary purposes.

The company, which is operating in only one business segment,
has three associates with one engaged in real estate and the
others in financial services.  The company and its associates
have no geographical segments as they were incorporated and are
operating within the Philippines.

                         *     *     *

After auditing Philodrill's 2005 annual financial statements,
Sycip, Gorres and Velayo & Co., raised doubt on the company's
ability to continue as a going concern, as its current
liabilities exceed current assets by PHP419.2 million as of Dec.
31, 2005.  The company also had difficulty meeting its
obligations to creditor banks.

In early 2006, Philodrill was able to redenominate its loans
with Rizal Commercial Banking Corp. amounting to PHP28.25
million, from U.S. dollars to Philippine Pesos.
PGO has an issued and outstanding capital stock of 4.07 billion
shares at PHP0.01 par value.


PICOP RESOURCES: Sets Annual Stockholders' Meeting on June 27
-------------------------------------------------------------
PICOP Resources has set its annual stockholders' meeting on
June 27, 2007 for all shareholders on record as of May 28.

PICOP Resources, Inc., was incorporated in 1952 as Bislig
Industries, Inc.  It was renamed Paper Industries Corporation of
the Philippines in 1963 and to Picop Resources, Inc. in
1994.  The company was privatized in March 1994 through a public
bidding that covered 183.1 million shares representing 90% of
the government's stakes.  Since 1994, control of the company
changed hands three more times.  At present, the company is
under the control of TP Holdings, Inc.

The company has two wholly owned subsidiaries, namely New Paper
Industries Corporation and Hinatuan Forest Plantations, Inc.  
The financial reports of these subsidiaries are consolidated
with the financial report of the parent company Picop Resources,
Inc.  NPIC was incorporated in the Philippines to buy and sell
pulp, paper, and paper boards of every kind and description, and
the supplies used in the manufacture of thereof.  In 2003, the
parent company and NPIC entered into a Deed of Exchange whereby
the parent company will transfer and unto NPIC all titles,
rights and interests to certain assets and equipment as payment
for the parent company's subscription to the latter's shares of
stock.  This resulted to parent company gaining control of NPIC
by owning 99% of the total voting stocks effective upon issuance
of the shares of stock.  Hinatuan, on the other hand, was formed
to engage in the production of plywood material sourced from its
plantation.  Hinatuan temporarily suspended operations in
January 1997 and management is currently evaluating the status
and prospects of the company.

PICOP Resources, Inc., posted a net loss of PHP31.385 million
for the year ending December 31, 2006, against PHP366.574
million and PHP237.609 million net losses for the years 2005 and
2004, respectively, the company said in its financials.

                Subsidiary's Going Concern Doubt

The company also discloses that Protacio T. Tacandong at Sycip
Gorres Velayo and Co. raised substantial doubt on Hinatuan
Forest Plantations, Inc., a subsidiary's ability to continue as
a going concern, citing the subsidiary's suspension of its
operations, and deficits amounting PHP8.88 million and PHP8.87
million as of December 31, 2006 and 2005, respectively.


RIZAL COMMERCIAL: First Quarter Net Income Reaches PHP828 Mil.
--------------------------------------------------------------
Rizal Commercial Banking Corporation posted a net income of
PHP828 million in the first quarter of 2007, an increase of
PHP507 million or 158.23% over the PHP321 million net income
reported for the same period last year, the bank  said in its
results report to the Philippine Stock Exchange.

Net interest income, representing 36.22% of gross profits,
improved by 24.71% from PHP1.623 billion to PHP2.024 billion
mainly due to higher interest earned from investment securities,
deposits and/or placements and lower interest rates on deposits.  
Interest income from deposits went up from PHP56 million to
PHP191 million year on year as the bank  participated in the
Special Deposit Account window of the Bangko Sentral in 2007.  
These placements are subject to tiered interest rates compared
to interbank call loans. Additionally, net interest income
improved as a result of lower interest rates on deposits and the
continued appreciation of the peso during the period.  Hence,
total interest expense dropped to PHP1.728 billion or by 15.36%
as interest expense on deposit liabilities and bills payable and
other borrowings went down by 10.42% and 23.00%
from PHP1.240 billion and PHP802 million, respectively.

Interest income of PHP3.752 billion, accounting for 67.14% of
gross income, consisted of interest income from loans and
receivables and investment securities that accounted for 42.15%
and 21.57% of total profits, respectively. Total interest
expense at 30.92% of total revenues consisted of interest on
deposit liabilities and bills payable and other borrowings,
accounting for 19.87% and 11.05% of gross revenues,
respectively.

Provisioning for probable losses this period was accelerated to
further improve asset quality of the bank . Consequently,
provisioning for impairment losses moved up to PHP778 million
from PHP422 million or by PHP356 million over the same period
last year and represented 13.93% of gross income.

Other operating income grew by 62.53% to PHP1.837 billion in
spite of the decreases in trust fees and foreign exchange gains-
net of 52.06% and 68.89%, respectively.  The hike in trading and
securities gain-net of PHP854 million from PHP288 million year
on year primarily due to realized trading gains accounted for
the growth in other income.  For purposes of comparability, the
January to March 2006 trading and securities gain-net and
foreign exchange gains (losses)-net was adjusted to reflect the
impact of swap transactions on these accounts.  The lower trust
fees this period was on account of the phasing out of common
trust fund (CTF) products in latter half of 2006.  Similarly,
foreign exchange gains-net declined by PHP100 million due to the
continued appreciation of the Philippine peso.

Representing 32.86% of total profits, other operating income was
largely composed of trading and securities gain-net that
accounted for 20.44% of total income.  Though commissions and
other income remained stable at PHP614 million, this comprised
11.00% of gross revenues.

At 36.37% of gross income, other operating expenses of PHP2.033
billion was 5.27% higher than the PHP1.931 billion reported over
the same period last year. The rise in operating expenses was
mainly due to the expansion in manpower costs, occupancy and
equipment-related costs and taxes and licenses.  The 12.63%
increase in manpower costs was basically due to the impact of
the new CBA agreement that became effective in the last quarter
of 2006.  Additionally, the higher retirement fund contribution
and the cost of training and other employee benefits contributed
to the increase. Consequently, manpower costs represented 11.74%
of total income.

Comprising 6.13% of gross revenues, occupancy and equipment-
related expenses was 5.83% higher this period on account of the
increase in occupancy related costs.  Taxes and licenses grew
9.09%, from PHP214 million to PHP234 million, largely due to the
increase in percentage tax in relation to higher gross income
for the period and higher cost of business licenses and other
local taxes and fees. As a number of fixed assets have been
fully depreciated, depreciation and amortization expense dropped
by 8.05% to PHP78 million. Accounting for 12.92% of gross
profits, miscellaneous expenses at PHP722 million remained
contained and efficiently managed.  The provision for tax
expense increased from PHP147 million to PHP216 million or by
46.79% as a large portion of revenues were subjected to final
taxes withheld at source. Minority interest in net income went
up to PHP6 million from negative PHP68 million due to the
improved profitability of Bank's not wholly-owned subsidiaries.

The bank 's consolidated total resources as of March 31, 2007
stood at PHP221.604 billion, PHP2.129 billion lower than
yearend's PHP223.733 billion.  The decrease in total assets was
mainly due to the decline in cash and other cash items
and available for sale securities of 33.55% and 16.45%,
respectively. However, the growth in deposits with Bangko
Sentral and other resources of 53.83% and 9.45%, respectively,
neutralized these mentioned decreases.

Deposits with Bangko Sentral recorded a substantial 53.83%
growth primarily due to the investment of part of the proceeds
from the additional public offering in the Bangko Sentral's
Special Deposit Account.  The SDA is a borrowing facility of the
Bangko Sentral whereby it borrows money from banks or financial
institutions that have quasi-banking licenses. Interest rates
are subject to tiering per volume and term is from 2 weeks to 6
months.

Increasing by 9.45% and representing 6.02% of total assets,
other resources expanded primarily due to the prepayments of
various expenses. The higher other assets reported by the
consolidated subsidiaries further accounted for the growth in
other assets. On the other hand, available for sale securities
went down by PHP7.865 billion or by 16.45% from PHP47.817
billion mainly on account of the sale of foreign currency
denominated ROPs inclusive of unamortized discount.

The 33.55% drop in cash and other cash items this period was
primarily due to the funding requirements for deposit
withdrawals. Total deposits declined by PHP1.433 billion from
PHP157.550 billion to PHP156.118 billion.

Accounting for 48.51% and 23.24%, respectively, of total
resources, loans and receivables and investment securities
remained the biggest component of Bank's total assets.  Of total
investment securities, financial assets at fair value through
profit or loss and available for sale securities accounted for
5.21% and 18.03%, respectively, of total assets. Additionally,
deposits with Bangko Sentral of PHP21.210 billion represented
9.57% of total resources.

Bills payable declined by 13.99% or by PHP2.467 billion due to
maturing obligations.  Similarly, outstanding acceptances
payable declined by 5.54%, or from PHP234 million to PHP221
million on account of the lower volume of import bills
acceptances under usance that were negotiated during the period.
The substantial decrease in due to other banks of PHP1.568
billion or 46.16% was mainly attributable to the lower credit
balances, which are temporary in nature, of
working funds maintained with local and foreign correspondent
banks.  These accounts are funded by inward remittances subject
to drawing through payment order.

Accruals of interest, taxes and other expenses payable shrunk by
23.28%, from PHP2.835 billion to PHP2.175 billion, as lower
interest rates prevailed during the period.  The benchmark 91-
day Treasury Bill averaged 3.26% this period, decreasing by 178
basis points from the previous year's 5.04%. On the other hand,
the average US dollar Singapore Interbank Offered Rate
(SIBOR) gained 81 basis points year on year from 4.50% to 5.31%.  
Further, the bank continuously monitors and efficiently manages
its costs and expenses.

Total liabilities accounted for 87.59% of total resources. At
70.45% of total assets, total deposit liabilities of PHP156.118
billion continued to be the bank's main source of funding,
particularly savings and time deposits which comprised 26.44%
and 39.51%, respectively, of total resources.  Bills payable
representing 6.84% of total resources is another important
source of funding for liquidity purposes.

The bank's capital grew significantly towards the last quarter
of 2006, with its issuance of US$100.0 million hybrid tier 1
securities and PHP1.0 billion worth of perpetual, non-cumulative
preferred shares.  The recent follow-on offering of PHP5.6
billion worth of additional shares, PHP4.772 billion of which
was received in March, further increased the bank's capital
funds, inclusive of minority interest and representing 12.41% of
total resources, to PHP27.498 billion or 17.56% higher
than PHP23.391 billion in yearend 2006.

The proceeds from the successful additional public offering
would be utilized by the bank to further strengthen its capital
adequacy ratio in view of the pending implementation of Basel II
requirements.  The net proceeds would also be used for general
corporate purposes, including, but not limited to, expanding its
branch network in 2007 and funding technology
initiatives.

Preferred stock was 18.48% lower this period, from PHP1.055
billion to PHP860 million, on account of conversions to common
stock. The PHP3.025 billion growth in common stock was primarily
due to the additional public offering of approximately 183
million shares, the 15% stock dividends equivalent to about 109
million shares and the conversion to common shares of
preferred shares.

Paid-in capital in excess of par likewise improved from PHP2.119
billion to PHP5.143 billion or by PHP3.024 billion as a result
of the issuance of common and conversion of preferred shares at
amounts higher than par. Accumulated translation adjustment and
revaluation reserves on AFS securities both dropped by 15.76%
and 44.23%, respectively, primarily on account of the continued
appreciation of the peso.  Additionally, the sale/disposition of
AFS securities that went down by PHP7.865 billion during the
period contributed to the decrease in revaluation reserves on
AFS securities.  The peso dollar exchange rate closed at
PHP48.22 at end March 2007, 1.69% stronger than yearend's
PHP49.05. The year to date average exchange rate was pegged at
PHP48.58, a 5.28% appreciation from the previous year's PHP51.84
to the US dollar.  Similarly, the 8.38% decrease in surplus
account was due to the cash and stock dividends paid and issued
amounting to P190 million and PHP1.094 billion, respectively,
and partially offset by the net profits earned during the
quarter of PHP828 million.

Minority interest improved from negative PHP283 million to
negative PHP262 million on account of the improved results of
the subsidiaries that are not wholly owned.

The company's first quarter financials can be obtained free at:

             http://bankrupt.com/misc/RCBC1q.pdf

Rizal Commercial Banking Corporation -- http://www.rcbc.com/--   
is a universal bank principally engaged in all aspects of
banking.  It provides services such as deposit products, loans
and trade finance, domestic and foreign fund transfers,
treasury, foreign exchange and trust services.  In addition, the
bank is licensed to enter into forward currency contracts to
service its customers and as a means of reducing and managing
the bank's foreign exchange exposure.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
March 30, 2007 that Moody's Investors Service, on March 29,
2007, affirmed Rizal Commercial Banking Corp's E+ bank financial
strength rating as well as its Ba3 senior unsecured debt, B3
preferred stock and B1/NP long-term short-term deposit ratings.
The outlook for all ratings is stable.

On Nov. 2, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings has assigned a final rating
of B- to Rizal Commercial Banking Corporation's hybrid issue
of up to US$100 million.  The rating action follows the receipt
of final documents conforming to information previously
received.

The TCR-AP reported on October 24, 2006, that Standard & Poor's
Ratings Services assigned its CCC rating to Philippines' Rizal
Commercial Banking Corp's (RCBC; B/Stable/B) US$100 million non-
cumulative step-up callable perpetual capital securities.


SECURITY BANK: Posts PHP758.80 Mil. Net Income in First Qtr.
------------------------------------------------------------
Security Bank Corporation generated improved net income
attributable to equity holders of the bank  for the first
quarter of 2007 of PHP757.58 million, representing a growth of
PHP218 million or 40% over PHP540.27 million for the comparative
period in 2006, the bank said in its results report to the
Philippine Stock Exchange.

The bank's net income climbed up to PHP758.80 million.

Earnings per share likewise increased from PHP1.64 per share for
the first quarter last year to PHP2.30 per share this year. This
brings the annualized return on average equity to 24.5% for the
first quarter of 2007 versus 20.5% for the same period last
year.

Net interest income improved by PHP179 million or 19% from
PHP939 million for the first quarter of 2006 to PHP1.1 billion
for the comparative period this year. This resulted from the
PHP15 billion expansion in interest-earning assets coupled with
aggressive efforts to push the bank 's low-cost funding sources
in an environment of declining interest rates.

Non-interest income sources contributed PHP1.1 billion for the
first quarter of 2007, reflecting a PHP235 million or 27% year-
on-year improvement from PHP857 million last year. This was
driven by better foreign exchange profit, securities trading
gains, asset disposal gains, recoveries of charged-off assets
and rental income. Operating expenses amounted to PHP927
million, reflecting a growth of PHP39 million or 4% from PHP888
million of the same period last year.  The increase is due
primarily to taxes and licenses on account of higher revenues
and compensation and fringe benefits due to increase in head
count, merit increases and promotions.

Provision for credit losses amounted to PHP400 million for the
first quarter of 2006, higher than the PHP250 million for the
comparative period last year. This represents the regular build
up of provisions for loans and receivables as a continuing
effort to strengthen the bank 's balance sheet.

Provision for income tax reached PHP124 million for the first
quarter of 2007, higher than the PHP117 million for the same
period last year due mainly to final taxes.

Security Bank ended the first quarter of 2007 with PHP137
billion in assets, representing a PHP15 billion or 12% growth
over the year-end 2006 level of PHP122 billion.  During the
first quarter of 2007, the bank generated incremental deposits
(mostly savings deposits) of PHP13 billion, from PHP89 billion
in December 2006 to PHP101 billion in March 2007, which were
invested in loans and receivables and in interbank placements.  
The bank  also disposed of PHP4 billion of its investment
securities portfolio in the ordinary course of business and to
take advantage of market opportunities, and reinvested the
liquidity generated into interbank placements.  As a result, the
bank 's investment securities portfolio composed of financial
resources at fair value through profit or loss, available-for-
sale investments and held-to-maturity investments amounted to
PHP57 billion while interbank loans receivable registered PHP20
billion at end-March 2007. Loans and receivables were steady at
PHP34 billion as net additional availments were offset by the
reclassification (to the due from Bangko Sentral ng Pilipinas
account) of unquoted debt instruments representing liquidity
reserves placed in the reserve deposit account maintained with
BSP.  This is in compliance with BSP Circular No. 539 which took
effect on August 25, 2006. Other asset accounts showing changes
in excess of 5% include the cash and other cash items account
which shows a decrease of 18% resulting from the management of
statutory reserves on deposits.  The due from BSP account
increased by 51% due primarily to the reclassification (from the
loans and receivables account) of unquoted debt instruments
representing liquidity reserves placed in the reserve deposit
account maintained with BSP.  The 73% increase in the due from
other banks account reflects higher operating balances
maintained with other banks.  The 28% increase in other
resources can be traced primarily to documentary stamps on hand,
prepaid expenses and miscellaneous assets.

Borrowings amounted to a combined total of PHP14 billion,
reflecting a PHP622 million or 5% increase due primarily to
bills payable.  Borrowings consist of financial liabilities at
fair value through profit or loss, bills payable and acceptances
payable.  The increase in margin deposits and cash letters of
credit refers to the higher level of trade transactions during
the period.  The 38% increase in manager's and certified checks
outstanding represents higher volume of uncleared checks issued.
Income tax payable increased by 50% due to net accruals while
accrued interest, taxes and other expenses decreased by 23% due
to net payments.  Other liabilities increased by 22% primarily
on account of outstanding checks purchased awaiting clearing and
miscellaneous liabilities.

Capital funds are at PHP12.4 billion as of the first quarter of
2007, reflecting a decrease of PHP512 million from the year-end
2006 level of PHP12.9 billion.  This is the impact of the PHP758
million earnings for the first quarter, offset by the PHP1.3
billion decrease in net unrealized gain on available-for-sale
investments.

The capital adequacy ratio at end-March 2007 is 22.8%. This is
well above the BSP minimum requirement of 10% and the
international standard of 8%, indicative of the sufficiency of
the bank 's capital to support the current level of its risk
assets.

The bank continues to maintain superior asset quality with a
non-performing loan ratio of 4.1% and a non-performing asset
ratio of 8.2% as of March 2007.  These reflect improvements from
the 2006 yearend NPL ratio of 4.2% and NPA ratio of 9.9%. The
sustained level of provisioning resulted in an NPL and NPA cover
of 138% and 89%, respectively.

The company's first quarter financials can be obtained free at:

          http://bankrupt.com/misc/SecurityBank1q.pdf

Makati City-based Security Bank Corporation --
http://www.securitybank.com.ph/-- offers a wide variety of   
financial products and services.  The bank's services include
peso, dollar and third currency deposits, domestic and
international fund transfers, deposit pick-up and payroll
services, and ancillary services.  Security Bank also provides
working capital financing, term arrangements and loan
syndication services.

Fitch Ratings gave Security Bank a D individual rating and a 4
support rating.


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

LIONS OF ASIA: Court Enters Wind-Up Order
-----------------------------------------
On April 20, 2007, the High Court of Singapore released an order
to wind up the operations Lions Of Asia Group Pte Ltd.

Ifs Capital Limited filed the petition against the company.

The company's liquidator is:

         M/s Hin Tat Augustine & Partners
         Officer Receiver
         45 Maxwell Road #06-11
         The URA Centre (East Wing)
         Singapore 069118


LIONS OF IND TRADING: Court Enters Wind-Up Order
------------------------------------------------
On April 27, 2007, the High Court of Singapore released an order
winding up the operations Lions Of Ind Trading Pte. Ltd.

Chan Ching Sing filed the petition against the company.

The company's liquidator is:

         Hoh Law Corporation
         45 Maxwell Road #06-11
         The URA Centre (East Wing)
         Singapore 069118


PETROLEO BRASILEIRO: Starts Shipping Ethanol to U.S.
----------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA has begun
delivering ethanol to the United States, Brazilian daily O Globo
reports.

According to O Globo, a vessel carrying about 12,000 cubic
meters of ethanol left Rio Janeiro for the U.S.

Dow Jones Newswires relates that Petroleo Brasileiro will make
another shipment of 20,000 cubic meters of ethanol to the U.S.
this month.

Petroleo Brasileiro told Dow Jones that it should export about
850 million liters of ethanol this year to markets like US,
Nigeria, Venezuela and Japan.

                 About Petroleos de Venezuela

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.


VALEANT PHARMA: Elects G. Mason Morfit to Board of Directors
------------------------------------------------------------
Valeant Pharmaceuticals International' Board of Directors has
elected G. Mason Morfit to fill an open board position for a
term that expires at the 2008 Annual Stockholders Meeting.  Mr.
Morfit's election brings the company's board to eight members.

Robert A. Ingram, chairman, said, "We are very pleased to have
someone of Mason's caliber join our board.  He brings important
financial and business acumen, and his perspective as a major
stockholder will be invaluable to us."

Mr. Morfit is a partner with ValueAct Capital, an investment
management firm with US$5 billion in assets under management.  
ValueAct Capital currently is Valeant Pharmaceuticals' largest
stockholder and holds 13.2 million shares of the company's
common stock.  Prior to joining ValueAct Capital in 2001, Mr.
Morfit worked in equity research for Credit Suisse First Boston
Mr. Morfit currently serves as a director of MSD Ignition and is
a former director of Solexa, Inc.  He has a B.A. degree from
Princeton University and is a CFA charterholder.

"As a long-term stockholder, ValueAct Capital believes in the
company's exciting potential," stated Mr. Morfit.  "I look
forward to actively working together with the board and
management team to further enhance value for all stockholders."

                About Valeant Pharmaceuticals

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com-- is a global specialty  
pharmaceutical company with US$823 million of 2005 revenues.  It
has offices in Singapore and Taiwan.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Jan. 26, 2007, that Moody's Investors Service confirmed the
ratings of Valeant, including the B2 Corporate Family Rating,
and concluded the rating review for possible downgrade, which
was first initiated on October 23, 2006.  Valeant's rating
outlook is now stable.


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

ARVINMERITOR INC: Posts US$94 Million Loss for 2Q Ended Mar. 31
---------------------------------------------------------------
ArvinMeritor Inc. reported US$94 million in net losses on
US$1.63 billion in net revenues for the second quarter ended
March 31, 2007, compared with US$45 million in net profit on
US$1.63 billion in net revenues for the second quarter ended
March 31, 2006.

ArvinMeritor Inc. reported US$87 million in net losses on
US$3.19 billion in net revenues for the first half ended
March 31, 2007, compared with US$79 million in net profit on
US$3.09 billion in net revenues for the first half ended
March 31, 2006.

As of March 31, 2007, ArvinMeritor had US$5.5 billion in total
assets, US$4.58 billion in total liabilities and US$918 million
in shareholders' equity.

"While second-quarter results did not meet our expectations, we
are pleased with the substantial margin improvement in our LVS
business as our new leadership team becomes fully integrated and
the initiatives identified through our Performance Plus program
begin to take effect," Chip McClure," Chairman, CEO and
President, said.  "The initial investment we made in Performance
Plus increases our confidence that we can deliver profit
improvement actions which will improve cash flow and increase
shareowner value.  We have committed significant resources to
building a more focused and profitable business model for
ArvinMeritor and we anticipate improved results in 2008 and
beyond, achieving cost savings of US$150 million alone in 2009
from our Performance Plus cost initiatives."

                  Update on Performance Plus

ArvinMeritor's Performance Plus program is focused on six areas,
three related to cost reductions and three focused on revenue
enhancement.  Since the company announced this initiative in
December 2006, ArvinMeritor now anticipates incremental savings
in excess of what it had originally targeted.  

ArvinMeritor expects restructuring and cost reductions alone to
generate US$150 million in savings by 2009, resulting from:

   -- restructuring in North America and Europe which will
      affect 13 plants and 2,800 employees estimated to cost
      around US$325 million through 2012;

   -- sourcing opportunities in leading cost-competitive
      countries, lower transportation and freight costs,
      logistics cost savings, and product redesign;

   -- reductions in overhead; and

   -- improvements to the company's manufacturing operations and
      supply chain management.

                   Freezing Pension Plan

ArvinMeritor also disclosed of a freeze of its defined benefit
pension plan for salaried and non-represented employees in the
United States, effective Jan.1, 2008.  The change will affect
approximately 3,800 employees including certain employees who
will continue to accrue benefits for an additional transition
period, ending June 30, 2011.

After these freeze dates, the company will instead make
additional contributions to its defined contribution savings
plan on behalf of the affected employees. The amount of the
savings plan contribution will be based on a percentage of the
employee's pay, with the contribution percentage increasing as
the employee ages.

These changes do not affect current retirees or represented
employees.

                             Outlook

The company has adjusted its forecast for the balance of fiscal
year 2007.  

The company now expects sales from continuing operations in
fiscal year 2007 to be in the range of US$6.0 to US$6.2 billion,
up from our previous range of US$5.9 to US$6.1 billion, and
anticipates full-year diluted earnings per share from continuing
operations to be in the range of US$0.70 to US$0.80, down from
US$1.00 to US$1.10.

This guidance excludes gains or losses on divestitures,
restructuring costs and other special items, including potential
extended customer shutdowns or production interruptions.  Cash
flow guidance for fiscal year 2007 remains in the range of US$50
million to US$100 million.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)  
-- http://www.arvinmeritor.com/-- is a premier US$8.8  
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry.  The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets.  ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.  
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.

                          *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2007,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc.  The trend is Stable.

The TCR-Europe reported on Feb. 6, Moody's Investors Service
downgraded ArvinMeritor's Corporate Family Rating to Ba3 from
Ba2.  Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.

Ratings lowered:

ArvinMeritor Inc.

    -- Corporate Family Rating to Ba3 from Ba2

    -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
       LGD-2, 18%

    -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
       LGD-4, 64%

    -- Probability of Default to Ba3 from Ba2

    -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
       LGD-4, 64%

Arvin Capital I

    -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%

Arvin International PLC

    -- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
       LGD-4, 65% from Ba3, LGD-4, 64%

Ratings affirmed:

ArvinMeritor Inc.

    -- Speculative Grade Liquidity rating, SGL-2


DAIMLERCHRYSLER: Magna is Chrysler's Serious Bidder, Paper Says
---------------------------------------------------------------
Canadian auto parts supplier Magna International Inc. is
currently the "only party seriously interested in Chrysler,"
Reuters quoted German newspaper Automobilwoche's report on  
Saturday, citing a source familiar with the negotiations.

The Troubled Company Reporter-Europe reported on May 2 that
Magna leads the race for DaimlerChrysler AG's Chrysler Group and
could grab a much larger stake in the ailing unit, potentially
taking a direct minority ownership stake of between 25% and 50%.

According to the Reuters report, investment bankers are
intentionally leaking talks with private equity firms Cerberus
and Blackstone but these are being held "only for tactical
reasons."

Daimler is expected to make a decision this month, with a sale
to Magna slated to conclude in two months, Reuters states,
citing Automobilwoche as its source.  The German paper reported
that Daimler would initially continue to hold a stake in the
loss-making unit.  The paper also wrote that insiders say Magna
will probably sell Chrysler again once the restructuring is
successfully concluded, Reuters notes.

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

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

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

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.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


DAIMLERCHRYSLER: Chrysler's April 2007 Sales Up 17%
---------------------------------------------------
DaimlerChrysler AG has reported that April 2007 sales for U.S.-
based Chrysler Group outside North America were up 17 percent
over the same month last year and marked the best April in
10 years as sales in the Middle East, Northern Africa and
Russia nearly doubled those from April 2006.

The company experienced an unprecedented 23 consecutive months
of year-over-year sales gains and year-to-date sales increased
14 percent over the same period in 2006.  New vehicles fueled
the growth of Dodge and Jeep brand sales.

April 2007 was a strong start for the second quarter with
Chrysler Group sales outside North America up 17 percent over
the same month last year, and a 23rd consecutive month of year-
over-year sales growth.  The Company's sales outside North
America for the month reached 18,289 units and marked the best
April in 10 years.  Year-to-date, sales grew 14 percent over the
same period in 2006, and total sales through April were 70,859
units.

While the key European and South American markets continued to
do well, a key contributor to this month's growth were the sales
increases seen in newer, fast-growing markets.  In the Middle
East and Northern Africa region, sales jumped 97 percent (1,871
units) when compared to April 2006, and were up 62 percent year-
to-date (5,816 units).  Sales in Russia also grew at a
significant pace as April sales climbed 95 percent over the same
month last year, and year-to-date sales were up 93 percent.

"The expansion of the Dodge brand has been a catalyst for the
growth we've seen in both mature and emerging markets outside
North America," said Thomas Hausch, vice president, Chrysler
Group International Sales.  "In both Western and Eastern Europe,
as well as the Middle East, Dodge vehicles have been the top-
selling Chrysler Group products, telling us that there is
increasing demand around the world for this distinctly American-
styled brand.  But Dodge is only one part of the sales success
story.  We have also seen strong sales for new Chrysler and Jeep
vehicles that have been developed from the ground up for global
customers, and they are helping to boost sales and
profitability."

The fuel-efficient, yet powerful Dodge Caliber has been the
highest volume Chrysler Group vehicle outside North America in
2007, and the brand continued to lead new sales growth.  Some of
the historic favorites, like Jeep Grand Cherokee and Chrysler
300C, continued to rank among the Company's top-selling
products.  New vehicles, such as Jeep Compass and Chrysler
Sebring are making their way into dealerships in all of the key
markets and sales are picking up for those as well.

"The growth potential and importance of markets outside North
America have been identified as key factors in Chrysler Group's
Recovery and Transformation Plan," Mr. Hausch said.  "We will
continue to put energy behind strategic growth in these markets
and find ways to reach customers whose needs identify with the
vehicles that we have available.  We have also worked to ensure
that once a customer purchases a Chrysler Group vehicle, that
their experience with both the vehicle and the dealership
service is a positive one.  This will remain a priority as we
develop new vehicles, expand our operations and evaluate new
opportunities and potential business partners."

Chrysler Group sells and services vehicles in more than 125
countries around the world, and Chrysler Group sales outside
North America currently account for approximately 8 percent of
the Company's total global sales.  Vehicles available range
across all three Chrysler Group brands, with limited
availability on some trucks and SUV models.  The Company's
operations outside North America have been experiencing year-
over-year sales increases since 2004, and will continue to
increase the number of product offerings, powertrain options and
RHD availability through 2007.

Concurrently, Chrysler Group's April 2007 U.S. sales rose by
2 percent with the Jeep brand up 29 percent led by Jeep Wrangler
and Jeep Patriot; the Chrysler and Dodge minivans up 10 percent
with momentum from "National Minivan Month" in April; the five-
star crash test-rated Dodge Ram pick up rising 2 percent in
competitive segment; and the Chrysler Sebring sedan increasing
by 56 percent.

Inventory was down by 18 percent and more than 100,000 units.  
Chrysler Group reported sales for April 2007 of 193,104 units;
up 2 percent compared to April 2006 with 190,095.

"Chrysler Group increased sales in April based on a solid retail
performance -- despite two less selling days than in the
previous year and a challenging market environment," said Steven
Landry, executive vice president, NAFTA Sales, Global Marketing,
Service and Parts.  "Driven by the continuously strong Jeep
Wrangler and the new Jeep Patriot, sales for the Jeep brand were
up significantly by 29 percent."

With the continued pressure on gas prices Chrysler Group's
incentives in May will focus on the company's full line of cars
and small and compact SUVs with the launch of the 'Maximize Your
Miles' program.  The program will communicate the vehicle's fuel
economy message across all three Chrysler Group brands.  A key
part of it will be low-rate finance and additional bonus cash,
which will give customers a great package.

Chrysler Group finished the month with 482,786 units of
inventory, or a 60-day supply.  Inventory is down by 18 percent
compared to April 2006 when it was at 586,263 units.

Meanwhile, DaimlerChrysler Canada has disclosed that April 2007
marks the ninth consecutive month of sales growth following a
monthly increase in revenues since August 2006.  Monthly sales
were up 6.2 per cent while year-to-date sales rose 4.3 per cent.  
A total of 22,514 vehicles were sold in April, an increase of
6.2 per cent over April 2006.

                    About DaimlerChrysler

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

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

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

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.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


OMNOVA SOLUTIONS: Fitch Affirms and Withdraws Low-B Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed and simultaneously withdrawn the
following ratings for Omnova Solutions Inc.:

    -- Issuer Default Rating 'B+';
    -- Senior secured revolver 'BB+/RR1';
    -- Senior secured notes 'B+/RR4'.

All of the debt ratings for this issuer are withdrawn.  Fitch
will no longer provide rating coverage of Omnova.

OMNOVA Solutions Inc. -- http://www.omnova.com-- is a producer  
of emulsion polymers and specialty chemicals, decorative and
functional surfaces and single-ply roofing systems for a variety
of commercial, industrial and residential end uses. OMNOVA
operates in three business segments: Performance Chemicals,
Decorative Products and Building Products. During the fiscal
year ended November 30, 2005 (fiscal 2005), revenue from
Performance Chemicals segment, Decorative Products segment and
Building Products segment represented approximately 55.9%, 29.9%
and 14.2%, respectively. The company has over 1,800 customers
that rely on over 1,000 OMNOVA products. OMNOVA utilizes 15
manufacturing, development and design facilities in North
America, Europe and Asia to service its broad customer base

The company has operations in China and Thailand.


PICNIC CORP PCL: Elects 3 Directors & Names 3 Auditors for 2007
---------------------------------------------------------------
Picnic Corp. PCL re-elected two directors, elected a new
director, and appointed three auditors for the year 2007 during
its ordinary shareholders meeting on April 30, 2007.

In that meeting, the Board of Directors approved the appointment
of Mr. Somchai Siripunvaraporn and Mrs. Pawarana Aruntat as
directors of the Company for another term.  The Board also
appointed Mr. Yosatorn Samitalumba as director in place of Mr.
Prapas Rerkpibool, who informed the Board that he was not
accepting the appointment as director for 2007.

The meeting approved the Board of Directors' THB4 million
remuneration for 2007.

The Company also appointed three accountants from S.K.
Accountant Services Co. Ltd. as auditors for 2007:

     * Ms. Wanraya Puttasatien           CPA No. 4387
     * Mr. Somchai Kurujitkosol          CPA No. 3277
     * Mr. Ampol Chamnongwat             CPA No. 4663

Remuneration for auditors has been approved at THB3.8 million.

Headquartered in Bangkok, Thailand, Picnic Corporation Public
Company Limited -- http://www.picniccorp.com/-- is engaged in  
liquefied petroleum gas trading business under "Picnic Gas"
trademark transferred from Union Gas and Chemicals Company Ltd.

                      Going Concern Doubt

Somchai Kurujitkosol of S.K. Accountant Services Co Ltd,
raised substantial doubt regarding the Company's and its
subsidiaries' ability to continue as a going concern after
auditing their consolidated financial statements for the quarter
ended March 31, 2006. Mr. Kurujitkosol said that as of March 31,
2006, the Company's and its subsidiaries' current liability
exceeds their current asset by THB1.838 billion.  He said that
the Company and its subsidiaries are parties to various loan
agreements coming from finance institutions and some parts now
constitute defaulted liabilities.  Mr. Kurujitkosol added that
the Company's ability to continue its operation is dependent on
its ability to negotiate a debt restructuring agreement, to
increase its share capital, and to follow up debt collection
from its account receivables.


SAFARI WORLD: Re-Elects 3 Directors & Appoints Auditors for 2007
----------------------------------------------------------------
Safari World PCL re-elected three directors and appointed two
auditors for the year 2007 during its annual general
shareholders meeting held at the Safari Restaurant on April 26,
2007.

These directors were unanimously re-elected during the meeting:

    * Mr. Paisal Techaratanachai
    * Mr. Methi Pamaranon
    * Mr. Somsak Mundang

The shareholders unanimously approved these remuneration rates
for the directors to be paid at a monthly lump sum basis.  

    Chairman          THB90,000
    Vice Chairman     THB30,000
    Directors         THB20,000

The shareholders also unanimously appointed two accountants from
ANS Audit Co. Ltd. to act as auditors for the year 2007, with a
remuneration rate of THB800,000:

    * Mr. Atipong Atipongsakul      CPA Registration No. 3500
    * Mr. Prawit Viwanthananut      CPA Registration No. 4917

                       Executive Director

During a meeting on April 25, Safari World PCL's Board of
Directors also appointed Cmdr. Dr. Sawang Charernphol as a
director of the company's Executive Board.  The appointment is
effective on the same day as it was given.

                        About Safari World

Bangkok-based Safari World Public Company Limited --
http://www.safariworld.com/-- is engaged in the entertainment  
business.  The company operates Safari World, which is comprised
of an open zoo, a marine park, a bird park and other theme
parks.  It offers animal performances and other recreational
activities such as jungle cruises and feeding shows.  The
company is also involved in food and beverage services, the sale
of souvenirs and the provision of air-conditioned coach
services. Safari World has a subsidiary, Phuket FantaSea Company
Limited, which is engaged in the operation of Phuket FantaSea (a
nighttime cultural theme park).

The Troubled Company Reporter - Asia Pacific reported on
March 28, 2007 that as of December 31, 2006, the company
reported total liabilities of THB3,958,646,588, exceeding total
assets of THB3,887,211,642 by THB71,434,946.

                        Significant Doubt

Atipong Atipongsakul at ANS Audit Company Limited, the company's
independent auditor raised significant doubt on the company's
ability to continue as a going concern, citing that:

   * the company and its subsidiary have incurred a continuous
     operating loss and have a net consolidated loss for the
     years then ended December 2006 and 2005, amounting to
     approximately THB359.5 million and THB475.3 million,
     respectively, and;

   * their current liabilities substantially exceeded current
     assets as at December 31, 2006.

In addition, the auditor pointed out that the company has not
complied with conditions indicated in the debt restructuring
agreement that caused the default and the creditor filed a
lawsuit against the company regarding the default in payment of
loan and bank overdraft and the enforcement of the mortgage.  
Presently, the company is in the process of negotiating with
another creditor to refinance the debt.


TOTAL ACCESS COMMS: Earns THB1.6 Billion in First Quarter 2007
--------------------------------------------------------------
Total Access Communications PCL on April 28 reported its
financial results for the first quarter of 2007, according to
BusinessWeek.

For the quarter, the Company posted revenues of THB16.15
billion, which is up 32.7% year on year.  Its net profit is at
THB1.56 billion, up 24.1% year on year.

Total Access Communications (DTAC) -- http://www.dtac.co.th/--  
is the second-largest cellular operator in Thailand with an
approximately 30% market share and strong brand recognition.  
With Telenor's recent purchase of a 39.9% interest in United
Communication Industry Plc and its subsequent tender offers for
UCOM and DTAC shares, Telenor lifted its aggregate economic
interest in DTAC to 70.2% from 40.3%.  DTAC is Telenor's largest
acquisition in Asia and it ranks second in terms of EBITDA
contribution outside Norway.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
April 3, 2006 that Moody's Investors Service upgraded its
corporate family and senior unsecured rating for Total Access
Communications Public Co Ltd to Ba1 from Ba2 with a positive
outlook.  This concludes the review for possible upgrade
commenced on October 21, 2005.

Standard and Poor's gave the company a BB+ Long-term local and
foreign issuer credit ratings.

Fitch Ratings on July 18, 2006, affirmed DTAC's Long-term
foreign currency Issuer Default Rating at BB+ and National Long-
term rating at A(tha).  The company's National Short-term rating
was also affirmed at F1(tha).  The Outlook on the ratings is
Stable.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
May 28-31, 2007
  Fitch Training
    Corporate Credit Fundamentals
      Hong Kong
        Telephone: +44-(0)20-7201-2770
          Web site: http://www.FitchTraining.com/
            e-mail: enquiry@fitchtraining.com

June 13-15, 2007
  Fitch Training
    Intensive Bank Analysis
      Hong Kong
        Telephone: +44-(0)20-7201-2770
          Web site: http://www.FitchTraining.com/
            e-mail: enquiry@fitchtraining.com

June 18-20, 2007
  Fitch Training
    Insurance Company Analysis
      Singapore
        Telephone: +44-(0)20-7201-2770
          Web site: http://www.FitchTraining.com/
            e-mail: enquiry@fitchtraining.com

October 16-19, 2007
  Turnaround Management Association - Australia
    TMA 2007 Annual Convention
      Boston Marriott Copley Place, Boston, MA, USA
        e-mail: livaldi@turnaround.org

March 25-29, 2008
  Turnaround Management Association - Australia
    TMA Spring Conference
      Ritz Carlton Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

October 28-31, 2008
  Turnaround Management Association - Australia
    TMA 2008 Annual Convention
      New Orleans Marriott, New Orleans, LA, USA
        e-mail: livaldi@turnaround.org

TBA 2008
  INSOL
    Annual Pan Pacific Rim Conference
      Shanghai, China
        Web site: http://www.insol.org/

June 21-24, 2009
  INSOL
    8th International World Congress
      TBA
        Web site: http://www.insol.org/

October 5-9, 2009
  Turnaround Management Association - Australia
    TMA 2009 Annual Convention
      JW Marriott Desert Ridge, Phoenix, AZ, USA
        e-mail: livaldi@turnaround.org

October 4-8, 2010
  Turnaround Management Association - Australia
    TMA 2010 Annual Convention
      JW Marriot Grande Lakes, Orlando, FL, USA
        e-mail: livaldi@turnaround.org

Beard Audio Conferences
  Coming Changes in Small Business Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Audio Conferences CD
  Beard Audio Conferences
    Distressed Real Estate under BAPCPA
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changes to Cross-Border Insolvencies
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Healthcare Bankruptcy Reforms
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Calpine's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Changing Roles & Responsibilities of Creditors' Committees
    Audio Conference Recording
      Telephone: 240-629-3300
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Beard Audio Conferences
  Validating Distressed Security Portfolios: Year-End Price
    Validation and Risk Assessment
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Employee Benefits and Executive Compensation
    under the New Code
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Dana's Chapter 11 Filing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Reverse Mergers-the New IPO?
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Fundamentals of Corporate Bankruptcy and Restructuring
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  High-Yield Opportunities in Distressed Investing
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Privacy Rights, Protections & Pitfalls in Bankruptcy
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  When Tenants File -- A Landlord's BAPCPA Survival Guide
    Audio Conference Recording
      Telephone: 240-629-3300
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Beard Audio Conferences
  Clash of the Titans -- Bankruptcy vs. IP Rights
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Distressed Market Opportunities
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Homestead Exemptions under BAPCPA
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  BAPCPA One Year On: Lessons Learned and Outlook
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Surviving the Digital Deluge: Best Practices in
    E-Discovery and Records Management for Bankruptcy
      Practitioners and Litigators
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Deepening Insolvency - Widening Controversy: Current Risks,
    Latest Decisions
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  KERPs and Bonuses under BAPCPA
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Diagnosing Problems in Troubled Companies
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Equitable Subordination and Recharacterization
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/



                            *********

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.  Mark Andre Yapching, 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 ***