TCRAP_Public/070516.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 16, 2007, Vol. 10, No. 96

                            Headlines

A U S T R A L I A

AINSWORTH: Predicts Weak 3Q to 4Q If Approval Delays Continue
ARCHIE LESLEY: Members Pass Resolution to Liquidate Business
EDWARDS A. M.: Placed Under Voluntary Wind-Up
F.V. ELITE: Creditors Decide to Close Business
KENRICK VALLEY: Liquidator to Present Wind-Up Report on June 8

KJD INDUSTRIES: Creditors Opt to Close Business
MAKZAK FITNESS: Members & Creditors to Meet on June 8
MINUET PTY: Taps Richard Herbert Judson as Liquidator
ROLOK PTY: Placed Under Voluntary Liquidation
SOUTHERN WIRING: Goes Into Liquidation With AU$1-Mil. Debt

TRANSPREAD PTY: Members & Creditors to Hear Wind-Up Report
WESTPOINT: Founder Wants Control Over Real Estate Arm


C H I N A   &   H O N G  K O N G

BANK OF COMMUNICATIONS: Completes A-Share Issue; Earns CNY24.7BB
BARBER ASIA: Court to Hear Wind-Up Petition on May 23
BENQ CORP: Inks Memorandum of Intent to Sell Brazilian Plant
CHINA EASTERN: Partnership Talks not Exclusive to Singapore Air
CITIC RESOURCES: Prices Seven-Year Bond as Orders Reached US$5BB

EPICOR SOFTWARE: Completes Issue With US$230MM Total Notes Sold
FIAT SPA: Buys Back 2.9 Million Ordinary Shares
FERRO CORP: Moody's Rates US$200 Million Sr. Sec. Notes at B1
GOME TRADING: Subject to Zhuhai Hong's Wind-Up Petition
KA YAU: Members' Final General Meeting Set for June 8

KAI SHING: Final Meeting Set for June 15
KINGSFIELD MANAGEMENT: Taps Mak Man Cheung as Liquidator
MYLAN LABORATORIES: Moody's May Cut Low-B Ratings After Review
NCF FOUNDATION: Members' Final Meeting Set for June 15
NEOMEDIA TECH: Posts US$11.5 Mil. Net Loss in Qtr Ended March 31

PANVA GAS: Seeks to Raise HK$737 Million From Shares Sale
POLY ARTS: Requires Creditors to Prove Debts by June 22
POPULAR STAR: Shareholders Resolve to Wind Up Firm
SHOES 4 STARS: Members to Receive Wind-Up Report on June 15


I N D I A

ANDHRA CEMENTS: Earns INR42.1 Million in Quarter Ended March 31
ARTSON ENGINEERING: Earns INR12 Million in Qtr. Ended March 31
BAGALKOT UDYOG: Net Loss Narrows to INR12.68 Mil. in FY2006-07
BALLARPUR INDUSTRIES: To Spend INR1,100 Crore for Expansion
BANK OF BARODA: Names M. Nadkarni as Workmen Employee Director

BANK OF BARODA: Board Meeting Scheduled for May 26
EASTMAN KODAK: Board Hikes Philip Faraci's Salary and Bonus
MYLAN LABORATORIES: Moody's May Cut Low-B Ratings After Review


I N D O N E S I A

ALCATEL-LUCENT: Tests Universal WiMAX in the Netherlands
AVNET INC: Unit Becomes Analog Devices' Pan-Asian Distributor
FOSTER WHEELER: Appoints Peter Rose as VP & Corporate Treasurer
MARSH & MCLENNAN: To Buy Back US$500 Million of Common Stock


J A P A N

SANYO ELECTRIC: To Strengthen Product Quality Control
SOFTBANK CORP: Sets Expansion Plans on TV Broadcasting
SUMITOMO MITSUI FINANCIAL: Plans to Boost Annual Dividend
UBE INDUSTRIES: To Build Bigger Plant in Thailand by October '09
XEROX CORP: Fitch Rates Trust Preferred Securities at BB


K O R E A

KOREA DEVELOPMENT: Plans to Set Up KRW1-Trillion Fund This Year
LG TELECOM: To Launch Sale of Prada Phones
WOORI TECHNOLOGY: To Issue 13,372,820 New Ordinary Shares


M A L A Y S I A

KL INFRASTRUCTURE: Default Leads Bank to Take Over Unit's Assets
KL INFRASTRUCTURE: Bank Takeover Triggers PN-17 Criteria
KNOLL INC: First Qtr 2007 Net Income Increases to US$14.8 Mil.
PROTON HOLDINGS: Government Asks for More Time to Name Partner


N E W  Z E A L A N D

AIR NEW ZEALAND: To Fix Hawaiian Airlines' Fleet, Report Says
AM HOSPITALITY: Receiving Creditors' Proofs of Debt Until May 28
ARC CAFE: Appoints Trevor Edwin Laing as Liquidator
DOS DUCE: Enters Wind-Up Proceedings
DOUG TAYLOR: Creditors' Proofs of Debt Due by June 1

CHATS CATERING: Court to Hear Wind-Up Petition on May 31
CONSWAY KINETIC: Court to Hear Wind-Up Petition on June 28
KERBSIDE SERVICES: Subject to CIR's Wind-Up Petition
MILFORD PASTORAL: Shareholders Agree to Shut Down Business
NETT BOOKS: Wind-Up Petition Hearing Set for June 7

TANGATA NGAHERE: Court to Hear Wind-Up Petition on May 21


P H I L I P P I N E S

CHIQUITA BRANDS: Credit Concerns Prompt Moody's Negative Outlook
PHILIPPINE REALTY: Earns PHP688.64 Million in 2006
PRIMETOWN: Losses and Insolvency Prompt Going Concern Doubt
SOUTH CHINA: Incurs PHP26.33-Million Net Loss in 2006
STENIEL MFG: Losses & Deficit Prompts Going Concern Doubt


S I N G A P O R E

GOH HUP HENG: Court Enters Wind-Up Order
ISOFT GROUP: IBA Extends Suspension of Stock Trading on the ASX
PETROLEO BRASILEIRO: Earns BRL4.1 Billion in First Quarter 2007
PETROLEOS BRASILEIRO: Fitch Ups Issuer Default Rating to BBB-
SEA CONTAINERS: U.K. Regulator Reissues FSD Warning


T H A I L A N D

DAIMLERCHRYSLER: Cerberus to Launch Huge Cost Cuts, Reports Say
DAIMLERCHRYSLER: No Immediate Job Cuts, Cerberus Assures Workers
DAIMLERCHRYSLER: Recalling 270T Minivans Due to Faulty Airbags
THANACHART CAPITAL: Discontinues Investment in 8 Subsidiaries


* Upcoming Meetings, Conferences and Seminars

     - - - - - - - -

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

AINSWORTH: Predicts Weak 3Q to 4Q If Approval Delays Continue
-------------------------------------------------------------
Ainsworth Game Technology Limited forecasts a poor second half
result as it faces further delays getting regulatory approval to
license its poker machines, reports The Sydney Morning Herald.

Ainsworth reportedly said that disappointing second half sales
linked to licensing delays would lead it to report a second half
result similar to the AU$17.7 million loss it reported in the
first half.  It delivered the first half loss in February after
experiencing hold-ups delivering products, as well the licensing
delays, The Herald relates.

Ainsworth, however, believes that significant restructuring of
the company in the first half and continuing streamlining of
procedures would enhance operating and cost efficiencies in the
2008 financial year.

"Revenue is expected from recent gaming licences secured in New
Jersey, Pennsylvania, Wisconsin, Connecticut and Florida, once
necessary product approvals are received," The Herald quotes the
company as saying.

                        About Ainsworth

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

The Troubled Company Reporter - Asia Pacific, on Jan 30, 2007,
listed Ainsworth Game's bond with a 8.000% coupon and a December
31, 2009 maturity date as distressed.


ARCHIE LESLEY: Members Pass Resolution to Liquidate Business
------------------------------------------------------------
On April 20, 2007, the members of Archie Lesley Pty Ltd had a
meeting and passed a resolution liquidating the company's
business.

Located in Victoria, Australia, Archie Lesley Pty Ltd is
involved with real estate agents and managers.  The company is
located in Victoria, Australia.


EDWARDS A. M.: Placed Under Voluntary Wind-Up
---------------------------------------------
During a general meeting held on April 27, 2007, the members of
Edwards A. M. Pty Ltd passed a resolution winding up the
company's operations and Samuel Richwol was appointed as
liquidator.

Mr. Richwol can be reached at:

         Samuel Richwol
         O'Keeffe Walton Richwol
         431 Burke Road, Glen Iris 3146
         Australia
         Telephone:(03) 9822 9823

                       About Edwards A. M.

Edwards A. M. Pty Ltd is involved with heavy construction.  The
company is located in Queensland, Australia.


F.V. ELITE: Creditors Decide to Close Business
----------------------------------------------
At a meeting held on April 27, 2007, the creditors of F.V. Elite
(Aust) Pty Ltd, formerly trading as Elite Tooling, decided to
close the company's business.  David H. Scott was appointed as
liquidator.

The Liquidator can be reached at:

         David H. Scott
         Jones Condon
         Chartered Accountants
         Level 1, 173 Burke Road
         Glen Iris, Victoria 3146
         Australia

                       About F. V. Elite

F. V. Elite (Australia) Pty Ltd is a distributor of machine
tools that are metal forming type.  The company is located in
Victoria, Australia.


KENRICK VALLEY: Liquidator to Present Wind-Up Report on June 8
--------------------------------------------------------------
G. S. Andrews, as the liquidator of Kenrick Valley Pty Ltd, will
present the company's wind-up report and property disposal at a
meeting of the members and creditors that will be held on
June 8, 2007, at 10:45 a.m.

The Liquidator can be reached at:

         G. S. Andrews
         G. S. Andrews & Assoc.
         22 Drummond Street
         Carlton, Vicroria 3053
         Australia
         Telephone:(03) 9662 2666
         Facsimile:(03) 9662 9544

                      About Kenrick Valley

Kenrick Valley Pty Ltd operates investment offices.  The company
is located in Victoria, Australia.


KJD INDUSTRIES: Creditors Opt to Close Business
-----------------------------------------------
The creditors of KJD Industries Pty Ltd passed a resolution
winding up the company's operations on  April 24, 2007.

K. L. Sutherland and H. A. MacKinnon were appointed as
liquidators.

The Liquidators can be reached at:

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

                      About KJD Industries

KJD Industries Pty Ltd, which is also trading as Victorian
Medical Products, is a distributor of fabricated structural
metal.  The company is located in Victoria, Australia.


MAKZAK FITNESS: Members & Creditors to Meet on June 8
-----------------------------------------------------
The members and creditors of Makzak Fitness Pty. Ltd. will meet
on June 8, 2007, at 10:30 a.m., to receive the liquidator's
report about the company's wind-up proceedings and property
disposal.

The company's liquidator is:

         G. S. Andrews
         G. S. Andrews & Assoc.
         22 Drummond Street
         Carlton, Vicroria 3053
         Australia
         Telephone:(03) 9662 2666
         Facsimile:(03) 9662 9544

                      About Makzak Fitness

Makzak Fitness Pty Ltd operates membership sports and recreation
clubs.  The company is located in Victoria, Australia.


MINUET PTY: Taps Richard Herbert Judson as Liquidator
-----------------------------------------------------
At a general meeting held on April 19, 2007, the members of
Minuet Pty Ltd agreed to liquidate the company's business and
Richard Judson was appointed as liquidator.

The Liquidator can be reached at:

         Richard Judson
         PO Box 819, Moorabbin
         Victoria 3189
         Australia

                        About Minuet Pty

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


ROLOK PTY: Placed Under Voluntary Liquidation
---------------------------------------------
On April 27, 2007, the members of Rolok Pty Ltd met and decided
to voluntarily liquidate the company's business.

Samuel Richwol was appointed as liquidator.

The Liquidator can be reached at:

         Samuel Richwol
         O'Keeffe Walton Richwol
         431 Burke Road, Glen Iris 3146
         Australia
         Telephone:(03) 9822 9823

                        About Rolok Pty

Rolok Pty Ltd, which is also trading as Perth All Care Nursing
Service; Domi-Care Australia Pty Ltd; and Care At Home Pty Ltd,
operates offices of holding companies.  The company is located
in Victoria, Australia.


SOUTHERN WIRING: Goes Into Liquidation With AU$1-Mil. Debt
----------------------------------------------------------
Southern Wiring Assemblies component manufacturer has gone into
liquidation with debts of AU$1 million, making 15 manufacturing
staff redundant, Russell Emmerson of Adelaide Now reports.

Liquidator Mark Hall of PPB, a firm who offers reconstruction
solutions, said the company was placed in administration before
Easter.  Mr. Hall believes that Southern Wiring can't just keep
up with international competition, especially those of the
Chinese.

The AU$1-million debt comprises AU$500,000 owed to unsecured
creditors and AU$500,000 to related parties, Mr. Hall told the
news agency.

Based in Lonsdale, Australia, Southern Wiring Assemblies --
http://www.southernwiring.com.au-- produce high quality harness  
assemblies and accessories for the electrical and manufacturing
industries in Australia and off-shore.  They are endorsed by the
Standards Association of Australia.


TRANSPREAD PTY: Members & Creditors to Hear Wind-Up Report
----------------------------------------------------------
A general meeting will be held for the members and creditors of
Transpread Pty Ltd on June 8, 2007, at 11:30 a.m.

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

The company's liquidator is:

         G. S. Andrews
         G. S. Andrews & Assoc.
         22 Drummond Street
         Carlton, Victoria 3053
         Australia
         Telephone:(03) 9662 2666
         Facsimile:(03) 9662 9544

                      About Transpread Pty

Transpread Pty Ltd operates farm machineries and equipments.  
The company is located in Victoria, Australia.


WESTPOINT: Founder Wants Control Over Real Estate Arm
-----------------------------------------------------
Westpoint Group Founder and Managing Director Norm Carey is
fighting to regain control of the Group's real-estate arm,
Westpoint Realty, and at the same time resurrect his career as a
real estate agent, ABC News reports.

According to the report, Westpoint was shutdown by the
Australian Securities and Investments Commission early last
year, leaving hundreds of investors more than AU$300 million out
of pocket.  Mr. Carey has consistently denied any wrongdoing,
ABC News adds.

Pursuant to an application, Mr. Carey is seeking the Western
Australia's Real Estate and Business Agents Supervisory Board's
approval to regain control of the real-estate unit, which is
currently in liquidation, the news agency relates.

                           About Westpoint

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

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

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


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

BANK OF COMMUNICATIONS: Completes A-Share Issue; Earns CNY24.7BB
----------------------------------------------------------------
China's Bank of Communications has completed its A share issue
and is now listed and trading on the Shanghai Stock Exchange,
the bank said in a disclosure with the Hong Kong Stock Exchange.

The bank has issued more than 49 billion in new shares,
comprising of 25.93 billion in A-share and 23 billion in H-
share.

BoCom disclosed that the net proceeds of its A-share issue alone
aggregated to CNY24,749,571,275.32.

                          *     *     *

Bank of Communications Co Ltd -- http://www.bankcomm.com/-- is  
a commercial bank in the People's Republic of China.  As of
December 31, 2005, the bank had 137 branches and sub-branches,
in addition, to over 2,600 business outlets in China.  It also
has its branches in Hong Kong, New York, Tokyo, Singapore and
Seoul.

The bank's business is divided into four segments: corporate
banking, retail banking, treasury and others.  Its corporate
banking business provides products and services to the corporate
customers, such as loans, deposits, bill discounting, trade
finance, fund custody and guarantees.  The retail banking
business provides retail banking products and services to its
retail customers, such as deposits, mortgage loans, debit cards,
credit cards, wealth management and foreign exchange trading
services.  The treasury operations include inter-bank money
market transactions, foreign exchange trading and government,
and finance bond trading and investment.

The bank carries Fitch Rating's 'D' individual rating effective
on November 21, 2005.

On May 4, 2007, as part of the application of its refined joint
default analysis and updated bank financial strength rating
methodologies, Moody's Investors Service affirmed Bank of
Communications' D Bank Financial Strength Rating.  The long-term
Foreign Currency Deposit Rating is raised to Baa1 from Baa2.  
The short-term Foreign Currency Deposit Rating is raised to P-2
from P-3.  The outlook for all ratings is stable.


BARBER ASIA: Court to Hear Wind-Up Petition on May 23
-----------------------------------------------------
The High Court of Hong Kong will hear a petition winding up the
operations of Barber Asia Limited on May 23, 2007, at 9:30 a.m.

The petition was filed by Susan Field on March 20, 2007.

Ms. Field's solicitor is:

         Tanner De Witt
         1806-8, Tower Two
         Lippo Centre
         89 Queensway
         Hong Kong


BENQ CORP: Inks Memorandum of Intent to Sell Brazilian Plant
------------------------------------------------------------
BenQ said in a statement that it has signed a memorandum of
intent to sell its Brazilian plant that produces mobile phone
handsets.

Business News Americas relates that BenQ signed the memorandum
to transfer control of the factory and research center in Manaus
to entrepreneurs Enzo Monzani and Conrado Will, the owners of
retail clothes chain Zoomp.

According to BenQ's statement, the value of the deal has not
been disclosed.

A BenQ spokesperson told BNamericas that Denise Santos,
president of BenQ's Manaus unit, said the workers will resume
work and there would be no lay-offs.

Rumors that BenQ might shut down the Manaus unit intensified in
2006 when a local trade union official stated that the firm had
fired 310 workers at the plant, BNamericas reports.

BenQ said in a statement that despite good handset sales in
Brazil -- chiefly in the retail market -- the problems that BenQ
has been experiencing worldwide affected the Brazilian unit.

BenQ lost almost US$1 billion worldwide from the handset unit
since the firm acquired the handset division of Germany's
Siemens in 2005.  Meanwhile, BenQ reported US$13 billion global
revenues last year, BNamericas states.

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 EASTERN: Partnership Talks not Exclusive to Singapore Air
---------------------------------------------------------------
China Eastern Airlines disclosed with the Hong Kong Stock
Exchange that it is in partnership talks with other potential
investors, aside from Singapore Airlines.  The statement was
made after a series of media reports came out saying the airline
and Singapore Air are in "final talks" over a stake sale.

In the disclosure, the Chinese airline said: "In order to extend
opportunities for commercial collaboration and enhance the
company's competitiveness, the company has been approached by
and is negotiating for collaboration with a number of potential
strategic investors, including the Singapore Airlines, with a
view to introduce strategic investors at an appropriate time."

In addition, China Eastern Air Holding Co., the carrier's
controlling shareholder, has recently consulted authorities of
the state-owned Assets Supervision and Administration Commission
under the State Council in respect of the feasibility of
introducing strategic investors.  The details of the final
decision as to the means and timing for the introduction of
strategic investors and the principal terms and conditions of
the possible transactions are yet to be determined.

                          *     *     *

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

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


CITIC RESOURCES: Prices Seven-Year Bond as Orders Reached US$5BB
----------------------------------------------------------------
CITIC Resources Holdings Ltd. priced its seven-year, dollar-
denominated bond aimed to raise US$1 billion after the offering
received orders of more than US$5 billion, market sources told
Reuters.

The bonds due in 2014 were priced at 99.726 cents to a dollar to
yield 6.8% at a spread of 214.6 basis points (bps) above U.S.
Treasuries, Reuters reported citing its sources.  

According to Reuters' report, the bonds were distributed to
Asia, which took 35%; the U.S., which comprised 49%; and Europe,
which accounted for 16% of the allocations.  By investor type,
asset managers took 69%, banks took 15%, insurance companies and
pension funds took 11%, and private banks took 5%, Reuters
added.

"Morgan Stanley and Bear Stearns arranged the sale and the yield
was lower than the market expectation of around 7%, indicating
strong demand," Reuters related.

The proceeds of the issue are to be used to partially finance
the purchase of oil and gas assets in Kazakhstan and to pay for
working capital requirements, a report from the Troubled Company
Reporter - Asia Pacific on May 11, 2007, said.

On May 4, 2007, the TCR-AP reported that Citic Resources decided
to exercise its right to buy half of CITIC Group's oil assets in
Kazakhstan worth US$950 million and will also purchase an oil
block in resource-rich Liaoning province.

Aside from the bond sale, the company also plans to use its
internal cash resources to settle the purchase, the TCR-AP said.  
So far, Citic Resources has paid a US$200 million deposit for
its proposed acquisition of the Kazakhstan assets.

                          *     *     *

Incorporated in Bermuda in 1997, CITIC Resources has its shares
listed on the Hong Kong Stock Exchange.  The company positions
itself as an integrated provider of key commodities and
strategic natural resources with particular focus in oil
business.  The principal activities of the company and its
subsidiaries are in the fields of oil, aluminium, coal, import
and export of commodities, manganese and iron ore.  CITIC Group
(formerly China International Trust and Investment Corporation)
became the majority controlling shareholder of the Company in
March 2004, indirectly holding interest in the Company of over
54%.

Standard & Poor's Ratings Services on May 9, 2007, assigned its
BB long-term corporate credit rating to CITIC Resources Holdings
Ltd.  The outlook is developing.  At the same time, it issued
its BB issue rating to a proposed intermediate-term U.S. dollar
benchmark issue of senior unsecured notes by Citic Resources
Finance (2007) Ltd.


EPICOR SOFTWARE: Completes Issue With US$230MM Total Notes Sold
---------------------------------------------------------------
Epicor Software Corporation disclosed that the underwriters of
its offering of US$200 million in aggregate principal amount of
2.38% convertible senior notes due in 2027 have exercised in
full their overallotment option to purchase US$30 million of
additional notes, bringing the total amount of the notes issued
to US$230 million.  The issuance of the additional notes closed
Tuesday, May 8, 2007.
    
The notes will pay interest semiannually at a rate of 2.38% per
annum until May 15, 2027.  The notes will be convertible, under
certain circumstances, into cash or, at the company's option,
cash and shares of the company's common stock, at an initial
conversion rate of 55.26 shares of common stock per US$1,000
principal amount of notes, which is equivalent to an initial
conversion price of approximately US$18.10 per share.  The
initial conversion price represents a 30% premium over the last
reported sale price of the company's common stock on May 2,
2007, which was US$13.92 per share.
    
Epicor estimates that the net proceeds from this offering will
be
approximately US$222.3 million after deducting discounts,  
commissions and estimated expenses associated with the offering.
Epicor expects the offering to be accretive to its fiscal 2007
earnings per diluted share.  

On May 8, 2007, Epicor used approximately US$94 million of the
net proceeds to repay in full the company's term loan
outstanding under its credit facility.  

The balance of the net proceeds will be used for:

   a) working capital;

   b) capital expenditures;

   c) other general corporate purposes, which may include
      funding acquisitions of businesses, technologies or
      product lines, although, Epicor currently has no
      commitments or agreements for any such specific
      acquisition; and  

   d) the repurchase of outstanding shares of its common stock,
      through the remaining net proceeds.
   
                 About Epicor Software Corporation

Headquartered in Irvine, California, Epicor Software Corporation
--- http://www.epicor.com/www/-- is a provider of enterprise  
resource planning, customer relationship management, and supply
chain management software and solutions to mid-market companies
worldwide.  Epicor Software has worldwide locations in China,
Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan,
Korea, Malaysia, Mexico, Singapore, Taiwan, and the United
Kingdom, among others.

The company currently carries Moody's Investors Service's B2
Corporate Family Rating.

Additionally, it also carries Moody's 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
   ----------           -------  -------  ------   ----------
   USUS$100 Million
   Senior Secured
   Revolving Credit
   Facility due 2009      B1       Ba3     LGD2       27%

   USUS$100 Million
   Senior Secured
   First Lien
   due 2012               B1       Ba3     LGD2       27%


FIAT SPA: Buys Back 2.9 Million Ordinary Shares
-----------------------------------------------
Within the frame of the buyback program announced on April 5,
Fiat S.p.A. purchased 2.9 million Fiat ordinary shares at the
average price of EUR21.57 including fees on May 3.

From the start of the buy back program on April 24, the total
number of shares purchased by Fiat, amounts to 7,426,000 for a
total invested amount of EUR157.6 million.

                  Share Repurchase Program

On April 5, Fiat stockholders authorized the purchase and
disposition of own shares.

The program, aimed at servicing stock options plans and at the
investment of liquidity, refers to a maximum number of own
shares of the three classes of stock which shall not exceed 10%
of the capital stock and a maximum aggregate amount of EUR1.4
billion and will be carried out on the regulated market as:

   -- it will become effective on April 10, 2007, and end on
      Dec. 31, 2007, or once the maximum amount of EUR1.4
      billion or a number of shares equal to 10% of the capital
      stock is reached;

   -- the maximum purchase price will not exceed 10% of the
      reference price reported on the Stock Exchange on the day
      before the purchase is made;

   -- the maximum number of shares purchased daily will not
      exceed 20% of the total daily trading volume for each
      class of shares.

                      About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,  
commercial vehicles, and agricultural and construction
equipment.  It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems.  Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.

Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.

                        *     *     *

Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB-'.  At the same time, Standard & Poor's
affirmed its 'B' short-term rating on Fiat.  S&P said the
outlook is stable.

The company carries Fitch Ratings' Issuer Default rating and
senior unsecured rating at BB-.  The Short-term rating is
affirmed at B.  Around EUR6 billion of debt is affected by this
rating action.

In addition, Fiat Spa also carries Moody's Investors Services
Ba3 Corporate Family Rating with positive outlook.  The long-
term senior unsecured ratings as well as the short-term non-
Prime rating also remains.


FERRO CORP: Moody's Rates US$200 Million Sr. Sec. Notes at B1
-------------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
to Ferro Corporation.  Moody's also assigned a B1 rating to the
company's US$200 million senior secured notes (issued as
unsecured notes in 2001) due in January 2009 and an SGL-3
speculative grade liquidity rating.

Moody's is reassigning the corporate family and notes ratings
after withdrawing them in March 2006, due to the delays in the
filing of financial statements for 2005 and quarterly statements
for 2004 through 2006.

The company's B1 corporate family rating reflects its elevated
leverage (when incorporating Moody's Global Standard Adjustments
to Financial Statements), limited free cash flow, the
expectation that the company will continue to restructure or
exit underperforming product lines, and relatively low, albeit
improving, EBITDA margins for a specialty chemical company.  

The ratings are supported by an improving financial profile,
leading market positions in porcelain, glass and enamel coatings
and sustainable market positions in electronic materials.  The
B1 rating on the secured notes due 2009 reflects the collateral
package; the notes share the same collateral as the senior
secured credit facilities.

Moody's noted that the company's 10K filed in March 2007,
identified two remaining "material weaknesses" in its internal
controls over financial reporting; however this issue is not a
ratings driver at the current rating level.  The company is
working to remediate these remaining issues and has recently
hired a Chief Accounting Officer.

The positive outlook reflects the company's strong placement in
the B1 rating category and the expectation of further
improvements to operating performance or meaningful debt
reduction due to asset sales over the next 12-18 months.  
However, Ferro is not expected to generate any free cash flow
over this timeframe due to elevated capex and additional
contributions to its pension plans.  "Although Ferro's rating
maps to the "Ba" category utilizing Moody's Chemicals Industry
Rating Methodology, key financial metrics are modestly weaker
than we would like for the Ba3 rating" stated John Rogers,
Senior Vice President at Moody's.

                        Ratings Assigned

Issuer: Ferro Corporation

   -- Corporate Family Rating, Assigned B1
   -- Probability of Default Rating, Assigned B1
   -- Senior Unsecured Regular Bond/Debenture, Assigned B1
   -- Senior Unsecured Regular Bond/Debenture, Assigned 47-LGD3

Headquartered in Cleveland, Ohio, Ferro Corporation --
http://www.ferro.com/-- is a global producer of an array of  
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications.  Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics.  Revenues were US$2 billion
for the FYE ended December 31, 2006.

Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.


GOME TRADING: Subject to Zhuhai Hong's Wind-Up Petition
-------------------------------------------------------
On Feb. 26, 2007, Zhuhai Hong Lee Plastic Electronic
Company Limited filed a wind-up petition against Gome Trading
Company Limited.

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

Zhuhai Hong's solicitor is:

         Lovells
         Cheung Kong Center, 23rd Floor
         2 Queen's Road
         Central, Hong Kong


KA YAU: Members' Final General Meeting Set for June 8
-----------------------------------------------------
Ka Yau Tong Limited will hold a final general meeting for its
members on June 8, 2007, at 4:00 p.m., in Flat B on the 4th
Floor of Haven Commercial Building at Nos. 6 Tsing Fung Street
in North
Point, Hong Kong.

Chan Yim Wah, the company's liquidator, will present a report
about the company's wind-up proceedings and property disposal at
the meeting.


KAI SHING: Final Meeting Set for June 15
----------------------------------------
Kai Shing Chemicals Limited will hold its final meeting on
June 15, 2007, at 10:00 a.m., in Rooms 1501-3 of Far East
Consortium Building at 121 Des Voeux Road in Central, Hong Kong.

Malcolm Andrew Bleach, the company's liquidator, will give a
report about the company's wind-up proceedings and property
disposal.


KINGSFIELD MANAGEMENT: Taps Mak Man Cheung as Liquidator
--------------------------------------------------------
At an extraordinary general meeting held on April 25, 2007, the
shareholders of Kingsfield Management Limited passed a
resolution winding up the company's operations.

Mak Man Cheung was appointed as liquidator.

The company's Liquidator can be reached at:

         Mak Man Cheung
         Suites 1801 & 1802
         Alliance Building
         130-136 Connaught Road
         Central, Hong Kong


MYLAN LABORATORIES: Moody's May Cut Low-B Ratings After Review
--------------------------------------------------------------
Moody's Investors Service placed the ratings of Mylan
Laboratories Inc. under review for possible downgrade.  

This rating action follows the announcement that Mylan has
entered a definitive agreement to acquire the generics
pharmaceuticals business of Merck kgAA for EUR4.9 billion, or
approximately US$6.7 billion.

The acquisition is subject to regulatory review, and is expected
to close in the second half of 2007.

"A multi-notch rating downgrade is possible based on cash flow
to debt ratios significantly below the ranges we expected for
Mylan's Ba1 rating," stated Moody's Sr. Vice President Michael
Levesque.

Moody's review will focus on:

  (1) the product portfolio, pipeline, and earnings and cash
      flow potential of Merck's generics business;

  (2) Mylan's pro forma cash flow relative to debt compared to
      other specialty pharmaceutical companies rated by Moody's;

  (3) the potential for debt reduction using free cash flow and
      proceeds from planned equity issuance; and

  (4) any structural features of new debt that could have
      notching implications for existing debt.

In addition, the rating review will consider the benefits of the
pending acquisition including expanded scale, potential
synergies through horizontal and vertical integration, and
diversification into new geographic markets and product
categories.

Ratings placed under review for possible downgrade:

* Mylan Laboratories Inc.

   -- Ba1 Corporate Family Rating

   -- Ba1 Probability of Default Rating

   -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of
      US$700 million due 2011

   -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of
      US$300 million due 2011

   -- Ba1 (LGD4, 51%) sr. unsecured term loan of US$450 million
      due 2012

   -- Ba1 (LGD4, 51%) sr. unsecured notes of US$150 million due
      2010

   -- Ba1 (LGD4, 51%) sr. unsecured notes of US$350 million due
      2015

Moody's will assess Mylan's liquidity position and reevaluate
the company's speculative grade liquidity rating (currently SGL-
1) once the terms of the new capital structure have been
announced.

Moody's does not rate Mylan's convertible notes of US$600
million due 2012.

Headquartered in Canonsburg, Pennsylvania, Mylan Laboratories
Inc. is a specialty pharmaceutical company. For the nine-month
period ended December 31, 2006, Mylan reported total revenue of
approximately US$1.12 billion.  The company also has operations
in China, India and Puerto Rico.


NCF FOUNDATION: Members' Final Meeting Set for June 15
------------------------------------------------------
A final meeting will be held for the members of NCF Foundation
Television Voyages Limited on June 15, 2007, at 10:00 a.m.

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

The company's liquidator is:

         Julian Walsh
         1403, 43-59 Queen's Road East
         Hong Kong


NEOMEDIA TECH: Posts US$11.5 Mil. Net Loss in Qtr Ended March 31
----------------------------------------------------------------
NeoMedia Technologies Inc. reported a net loss of US$11.5
million on net sales of US$399,000 for the first quarter ended
March 31, 2007, compared with a net loss of US$1.3 million on
net sales of US$199,000 for the same period last year.

General and administrative expenses increased by US$1,093,000,
or 81%, to US$2,440,000.  The increase resulted from higher
accounting, professional, and legal services of US$1,054,000,
higher audit fees and general and administrative expenses of
US$39,000 from Gavitec AG, which was acquired during the first
quarter of 2006.  

Results for the first quarter ended March 31, 2007, included a
loss on derivative financial instruments of US$3,508,000,
associated with the company's Series C preferred stock,
warrants, and convertible debenture, compared with a gain of
US$4,768,000 in the same period in 2006.

Results for the quarter ended March 31, 2006, included a loss on
extinguishment of debt in the amount of US$1,964,000, resulting
from debt retired in connection with the Series C preferred
stock issued and sold to Cornell Capital Partners on Feb. 17,
2007, with no corresponding charge in the same period in 2007.

Interest expense increased US$1,704,000 to US$1,698,000 for the
quarter ended March 31, 2007, from interest income of US$6,000
for the quarter ended March 31, 2006.  The increase resulted
from a charge to expense the costs of obtaining the debenture
financing in March 2007 of US$781,000, US$500,000 of interest
expense and liquidated damages related to the company's
convertible financing arrangements, and US$417,000 of other
interest expense.

Loss from discontinued operations were US$2.6 million in the
2007 quarter, compared to loss from discontinued operations of
US$1.2 million in the 2006 quarter.  

At March 31, 2007, the company's balance sheet showed
US$33.7 million in total assets and US$85.6 million in total
liabilities, resulting in a US$51.9 million total stockholders'
deficit.

The company's balance sheet at March 31, 2007, also showed
strained liquidity with US$19.1 million in total current assets
available to pay US$85.6 million in total current liabilities.

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

                   Default on Senior Securities

NeoMedia is currently in default of the Investor Registration
Rights Agreement entered into on Feb. 17, 2006, in connection
with the US$22 million Series C Convertible preferred Stock
Sale, the Investor Registration Rights Agreement entered into on
Aug. 24, 2006, in connection with the US$5 million secured
convertible debenture, the Investor Registration Rights
Agreement entered into on Dec. 29, 2006, in connection with the
US$2.5 million secured convertible debenture, and the Investor
Registration Rights Agreement entered into on Mar. 27, 2007, in
connection with the US$7.5 million secured convertible
debenture.  

                        Going Concern Doubt

As reported in the Troubled Company Reporter on April 13, 2007,
Stonefield Josephson Inc. expressed substantial doubt about
NeoMedia Technologies Inc.'s ability to continue as a going
concern after auditing the company's financial statements for
the years ended Dec. 31, 2006, and 2005.  Stonefield Josephson
pointed to the company's significant operating losses, negative
cash flows from operations and working capital deficit.

                    About NeoMedia Technologies

Headquartered in Fort Myers, Florida, NeoMedia Technologies,
Inc. (OTC BB: NEOM) -- http://www.neom.com/-- is a global  
company offering leading edge, technologically advanced products
and solutions for companies and consumers, built upon its solid
family of patented products and processes, and management
experience and expertise.  Its NeoMedia Mobile group of
companies offers end-to-end mobile enterprise and mobile
marketing solutions, through its flagship qode(R) direct-to-
mobile-web technology and ground-breaking products and services
from 4 (shortly to be 5) of the USA's and Europe's leading
mobile marketing providers.

NeoMedia has offices in China, and the United Kingdom.

                        Going Concern Doubt

Stonefield Josephson Inc. expressed substantial doubt about
NeoMedia Technologies' ability to continue as a going concern
after auditing the Company's financial statements for the fiscal
year ended Dec. 31, 2005.  The auditing firm pointed to the
Company's operating losses, negative cash flows from operations,
and working capital deficit.


PANVA GAS: Seeks to Raise HK$737 Million From Shares Sale
---------------------------------------------------------
PANVA Gas Holdings plans to raise as much as HK$737.4 million by
selling new shares, various reports say.

According to company's disclosure with the Hong Kong Stock
Exchange, PANVA Gas plans to issue 175.9 million to 184.4
million new shares at HK$4 per share.  It will offer one share
for every 10 existing shares held.

CITIC Securities Corporate Finance (HK) is underwriting the
share sale, The Standard says.

Majority shareholders, including Towngas, which hold a total
74.37% interest in PANVA Gas, have or will apply for all the
offer shares, Fulton Mak of The Standard writes.

More than half of the net proceeds will be used to reduce debt,
while the remainder is for general working capital, the company
disclosed.

Deutsche Bank said PANVA Gas intends to use proceeds to redeem
part of US$200 million (HK$1.56 billion), 8.25 percent high-
yield notes, which will help lower the cost of debt and may
boost its credit rating, the paper relates.  The bank also
believes PANVA Gas will be able to acquire small-to-medium sized
city gas projects that have a lower cost base.

                          *     *     *

PANVA Gas, listed on the Hong Kong Stock Exchange, is primarily
engaged in the downstream selling and distribution of LPG and
natural gas in Mainland China.  Its main operations include the
sale of LPG in bulk and cylinders, the provision of piped
natural gas, the construction of gas pipelines and, to a lesser
extent, the sale of LPG household appliances.

Moody's Investors Service, on March 8, 2007, upgraded PANVA Gas
Holdings' corporate family rating and senior unsecured bond
rating to Ba1 from Ba2.  This concludes the review for possible
upgrade, which began on December 4, 2006.  The outlook for both
ratings is positive.

Standard & Poor's Ratings Services on March 9, 2007, raised its
foreign currency long-term corporate credit rating on PANVA Gas
Holdings Ltd to BB+ from BB.  The outlook is positive.  At the
same time, Standard & Poor's also raised the foreign currency
issue ratings on PANVA's US$50 million convertible bonds due
2008 and US$200 million senior unsecured notes due 2011 to BB+
from BB.  All the ratings were removed from CreditWatch, where
they had been placed with positive implications on Dec. 5, 2006.


POLY ARTS: Requires Creditors to Prove Debts by June 22
-------------------------------------------------------
Poly Arts (Chuis) Jewellery Company Limited requires its
creditors to file their proofs of debt by June 22, 2007.

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

The company's liquidator is:

         Liu, Wing Ting Stephen
         Shun Kwong Commercial Building, 17th Floor
         No. 8 Des Voeux Road West
         Sheung Wan, Hong Kong


POPULAR STAR: Shareholders Resolve to Wind Up Firm
--------------------------------------------------
At an extraordinary general meeting held on May 2, 2007, the
shareholders of Popular Star Enterprises Limited passed a
resolution winding up the company's operations.

Chok-man Yik was appointed as liquidator.

The Liquidator can be reached at:

         Chok-man Yik
         Manulife Tower, 15th Floor
         169 Electric Road, North Point
         Hong Kong


SHOES 4 STARS: Members to Receive Wind-Up Report on June 15
-----------------------------------------------------------
The members of Shoes 4 Stars Limited will have their final
meeting on June 15, 2007, at 10:00 a.m., to receive a report
about the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Julian Walsh
         1403, 43-59 Queen's Road East
         Hong Kong


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

ANDHRA CEMENTS: Earns INR42.1 Million in Quarter Ended March 31
---------------------------------------------------------------
Andhra Cements Limited posted a net profit of INR42.1 million in
the three months ended March 31, 2007, an increase from the
INR32.1-million profit earned in the three months ended Dec. 31,
2006.

For the January-March 2007 quarter, the company recorded
revenues totaling INR599.3 million and operating expenditures of
INR523 million arriving at an operating profit of INR76.3
million.  The company booked interest charges of INR32.7
million, depreciation of INR1.3 million, taxes of INR600,000 and
extraordinary items of INR42.1 million.

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?1f29

Headquartered in Guntur, India, Andhra Cements Limited,
manufactures and distributes cement.  Andhra is part of the
Kolkata-based Duncan Goenka group.  The original promoter of
Andhra Cements handed over the reins to Goenka in 1994 when the
company was under the Board for Industrial and Financial
Reconstruction's purview.

Andhra Cements had been operating under the sanctioned
rehabilitation scheme of the BIFR dated June 16, 1994.  The
scheme is presently under revision, the company notes in its
financial statements for the quarter ended March 31, 2007.


ARTSON ENGINEERING: Earns INR12 Million in Qtr. Ended March 31
--------------------------------------------------------------
Artson Engineering Limited recorded a net profit of INR12
million in the quarter ended March 31, 2007, more than thrice
the INR3.58-million profit gained in the corresponding quarter
last year.  The company's revenues grew 131% to INR83.06 million
from the INR35.94 million earned in the quarter ended March 31,
2006.

The company's operating expenses totaled INR68.88 million in the
March 2007 quarter hence the company booked an operating profit
of INR14.19 million.  The company recorded interest charges of
INR210,000, depreciation expenses of INR1.95 million and taxes
of INR30,000.

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?1f2e

Headquartered in Mumbai, India, Artson Engineering Limited --
http://www.artson.net/-- is a niche engineering company active  
in specialized area of refineries, ports and airports.

The company was referred to the Board for Industrial and
Financial Reconstruction as a sick company.  Its proposal for
restructuring is currently under review, the company noted in
its financial results in the quarter ended March 30, 2007.


BAGALKOT UDYOG: Net Loss Narrows to INR12.68 Mil. in FY2006-07
--------------------------------------------------------------
Bagalkot Udyog Ltd narrowed its net loss by 79% to INR12.68
million in the year ended March 31, 2007, from the INR59.16-
million loss a year ago.  With the closure of its cement
manufacturing plant since May 2006, the company's sales fell to
INR43.74 million in FY2006-07 compared to INR176.33 million last
year.

Extraordinary items totaling INR22.98 million lessened the net-
loss figure in FY2006-07.

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

               http://ResearchArchives.com/t/s?1f33

Even with the continued stoppage of the manufacturing activities
in its cement plant, the company managed to earn a net profit of
INR4.26 million in the quarter ended March 31, 2007, a
turnaround from the INR7.52-million net loss booked in the
corresponding quarter last year.  With the plant closure, the
company booked zero sales in the March 2007 quarter compared to
the INR45.47 million earned in the March 2006 quarter.  Other
income increased to INR8.22 million from the INR1.2 million in
FY2005-06.

The company recorded other income of INR7.21 million in the
latest quarter under review, a sharp rise from the INR300,000 in
the quarter ended March 31, 2006.  In the March 2007 quarter,
the company booked expenditures totaling INR21.58 million,
interest charges of INR1.5 million, depreciation of INR2.66
million and INR190,000 in taxes.  What brought the bottom line
back to positive is the INR22.98 million that the company booked
as extraordinary items.

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?1f31

Bagalkot Udyog Ltd. manufactures cement, clinker and other by-
products.

The company incurred heavy losses that led to the erosion of its
entire net worth.  By order dated June 2, 2000, the Board for
Industrial & Financial Reconstruction, New Delhi, had declared
the company as a sick industrial unit under the provisions of
Sick Industrial Companies (Special Provisions), Act 1985.

On May 11, 2006, the operations of the company's cement plant at
Bagalkot came to a total stop.  The company booked net losses of
INR59.16 million for the fiscal year ended March 31, 2006, and
INR115.88 million in FY 2005.


BALLARPUR INDUSTRIES: To Spend INR1,100 Crore for Expansion
-----------------------------------------------------------
Ballarpur Industries Limited plans to invest INR1,100 crore in
the next two years to expand its paper-making capacity by about
3,00,000 tonne, live-mint.com reports, citing BILT Managing
Director R. R. Vederah.

Mr. Vederah told the news agency that the company aims to be a
US$1-billion company with a capacity of 1,000,000 tonne by 2010.  
Currently, the company has a capacity of 465,000 tonne per annum
and a pulp-making capacity of 95,000 tonne, the news agency
adds.

According to live-mint.com, Mr. Vederah said the company also
plans to:

   -- export 25% of its incremental capacity;
   -- increase its share of branded retail products; and
   -- expand its hygiene product offerings.

Headquartered in Ballarpur, India, Ballarpur Industries Limited
-- http://www.bilt.com/-- is a paper manufacturer and exporter.  
BILT has five product groups: coated wood-free, uncoated wood-
free, copier, creamwove, and business stationery.  There are
three types of products in the coated wood-free segment: two
side coated paper, two side coated boards, and single side
coated products.  The company has a presence in all segments of
the paper usage spectrum that includes writing and printing
paper, industrial paper, and specialty paper.

On April 12, 2004, Standard and Poor's Ratings Services gave
Ballarpur Industries BB- ratings for both its long-term local
and foreign issuer credit.  As of May 15, 2007, the company
still carry those ratings.


BANK OF BARODA: Names M. Nadkarni as Workmen Employee Director
--------------------------------------------------------------
The Government of India, through its Ministry of Finance and
Department of Economic Affairs (Banking Division), appointed
Milind Narayanrao Nadkarni as workmen employee director on the
board of Bank of Baroda, the bank informed the Bombay Stock
Exchange in a regulatory filing.

A director is appointed to represent employees amongst the
majority unions in the state-owned banks in India, UNI Global
Union states.  Mr. Nadkarni is the president of UNI Indian
Liaison Council.

Mr. Nadkarni's appointment is effective May 1, 2007.  The term
is for three years.  He has been appointed as a director of BOB
for the third time.

Headquartered in Mumbai, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking  
services in India.  The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.

Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of
Baroda's proposed unsecured subordinated Upper Tier 2 notes
(expected size: USD250 million plus greenshoe option), as well
as the hybrid Tier 1 debt to be issued under its USD1.5 billion
medium-term notes programme.   The agency also affirmed the
bank's Individual Rating of 'C/D'.  The outlook on all ratings
is stable.


BANK OF BARODA: Board Meeting Scheduled for May 26
--------------------------------------------------
Bank of Baroda's board of directors will hold a meeting on
May 26, 2007.

Among others, the board will consider, approve, and take on
record the bank's consolidated financial results for the year
ended March 31, 2007.

Headquartered in Mumbai, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking  
services in India.  The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.

Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of
Baroda's proposed unsecured subordinated Upper Tier 2 notes
(expected size: USD250 million plus greenshoe option), as well
as the hybrid Tier 1 debt to be issued under its USD1.5 billion
medium-term notes programme.   The agency also affirmed the
bank's Individual Rating of 'C/D'.  The outlook on all ratings
is stable.


EASTMAN KODAK: Board Hikes Philip Faraci's Salary and Bonus
-----------------------------------------------------------
The Executive Compensation and Development Committee of
Eastman Kodak Company's Board of Directors increased Philip J.
Faraci's base salary and target bonus percentage under the
company's annual incentive plan.

The raise is in consideration of Mr. Faraci's additional
responsibilities associated with the establishment of the Chief
Operating Office.

On March 14, 2007, the company disclosed the formation of this
office led by two Kodak executive officers, Mr. Faraci and James
T. Langley.  

Effective March 14, 2007, Mr. Faraci's base salary is increased
from US$520,000 to $600,000 per year and his target bonus
percentage is increased from 62% of his base salary to 75%.

                   About Eastman Kodak Company

Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- is a worldwide vendor of imaging   
products and services.  The company has operations in India,
Australia, China, Denmark, Greece, Hong Kong, Japan, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and
Thailand.

The Troubled Company Reporter on May 10, 2007, reported that
Moody's Investors Service confirmed Eastman Kodak Company's
B1 corporate family rating, concluding a review for possible
downgrade, which had been prompted by Eastman Kodak's May 2006
announcement of its health business sale.  On April 30, 2007,
Kodak sold its health imaging business to Onex Healthcare
Holdings and received about US$2.35 billion cash (excluding
Eastman Kodak's opportunity to earn an additional US$200 million
if Onex realizes an internal rate of return in excess of 25% on
its investment).  The rating outlook is stable.


MYLAN LABORATORIES: Moody's May Cut Low-B Ratings After Review
--------------------------------------------------------------
Moody's Investors Service placed the ratings of Mylan
Laboratories Inc. under review for possible downgrade.  

This rating action follows the announcement that Mylan has
entered a definitive agreement to acquire the generics
pharmaceuticals business of Merck kgAA for EUR4.9 billion, or
approximately US$6.7 billion.

The acquisition is subject to regulatory review, and is expected
to close in the second half of 2007.

"A multi-notch rating downgrade is possible based on cash flow
to debt ratios significantly below the ranges we expected for
Mylan's Ba1 rating," stated Moody's Sr. Vice President Michael
Levesque.

Moody's review will focus on:

  (1) the product portfolio, pipeline, and earnings and cash
      flow potential of Merck's generics business;

  (2) Mylan's pro forma cash flow relative to debt compared to
      other specialty pharmaceutical companies rated by Moody's;

  (3) the potential for debt reduction using free cash flow and
      proceeds from planned equity issuance; and

  (4) any structural features of new debt that could have
      notching implications for existing debt.

In addition, the rating review will consider the benefits of the
pending acquisition including expanded scale, potential
synergies through horizontal and vertical integration, and
diversification into new geographic markets and product
categories.

Ratings placed under review for possible downgrade:

* Mylan Laboratories Inc.

   -- Ba1 Corporate Family Rating

   -- Ba1 Probability of Default Rating

   -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of
      US$700 million due 2011

   -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of
      US$300 million due 2011

   -- Ba1 (LGD4, 51%) sr. unsecured term loan of US$450 million
      due 2012

   -- Ba1 (LGD4, 51%) sr. unsecured notes of US$150 million due
      2010

   -- Ba1 (LGD4, 51%) sr. unsecured notes of US$350 million due
      2015

Moody's will assess Mylan's liquidity position and reevaluate
the company's speculative grade liquidity rating (currently
SGL-1) once the terms of the new capital structure have been
announced.

Moody's does not rate Mylan's convertible notes of US$600
million due 2012.

Headquartered in Canonsburg, Pennsylvania, Mylan Laboratories
Inc. is a specialty pharmaceutical company.  For the nine-month
period ended December 31, 2006, Mylan reported total revenue of
approximately US$1.12 billion.  The company also has operations
in India, China and Puerto Rico.


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

ALCATEL-LUCENT: Tests Universal WiMAX in the Netherlands
--------------------------------------------------------
Alcatel-Lucent and Casema has successfully tested Universal
WiMAX in the Netherlands.  Casema is the first operator in the
Netherlands to conduct verification testing for WiMAX, and it
used the most advanced version, Universal WiMAX 802. 16e-2005.

This field trial is a significant step toward satisfying growing
demand in the Netherlands for access to advanced broadband
Internet services from any location.  The trial has been
designed to test several applications in the framework of the
"Smart Homes" project, which is subsidized by the Dutch Ministry
of Economic Affaires and is designed to improve the overall
welfare of the community by leveraging advances in
telecommunications technology in three critical areas.  Those
areas are videoconferencing/telemedicine for welfare and care;
video surveillance for security; and broadband Internet access
to enhance general communications.

The WiMAX pilot network was deployed by Alcatel-Lucent in
January in the southwestern part of the country and complies
with the latest mobile WiMAX standard.  WiMAX stands for
Worldwide Interoperability for Microwave Access, and it is a
flexible technology designed to provide broadband wireless
access to users in wide coverage areas.  This technology enables
people to access high-speed, high-quality broadband wireless
services wherever they are and wherever they go, making it truly
"Universal Wireless" broadband access.

"The deployment of this WiMAX pilot network plays a key role in
accelerating the realization of the 'Smart Homes' project.  Very
soon, our existing broadband customers will be able to enjoy
broadband services no matter where they are as they travel
around the country," said Mirko Mensink, Director Strategy from
Casema.  "We selected Alcatel-Lucent because its solution
complies fully with the WiMAX Rev-e standard and because of its
demonstrated commitment to provide operators with the most
advanced solutions to help them meet their customers' needs.  
The facts that Alcatel-Lucent's solution is available now and
can be easily integrated into our network were also important
factors in our decision."

Alcatel-Lucent provided a complete WiMAX solution that operates
in the 2.5 GHz frequency band, including base station equipment,
wireless access controller, operation and maintenance center,
customer premises equipment- including WiMAX fixed CPE and
PCMCIA (Personal Computer Memory Card International Association)
cards for laptop computers -- to deliver Internet broadband
access when on the move.  Alcatel-Lucent also provided its
advanced WiMAX engineering expertise and integration services.

"This field trial with Casema further illustrates Alcatel-
Lucent's commitment to WiMAX as a key element of its universal
broadband access strategy," said Luc Defieuw, Vice President
Benelux and Scandinaviafrom Alcatel-Lucent.  "WiMAX has the
potential to give people access to cutting-edge and useful
broadband services, no matter where they are and innovative
service providers like Casema are leveraging that potential to
better meet the needs of their customers."

Alcatel-Lucent's WiMAX solution integrates state-of-the-art
advanced antenna technology such as "Beamforming" that enables
better indoor penetration of the radio signal while reducing the
number of radio sites needed to provide coverage -- in some
instances by as much as 40 percent.  In addition, Alcatel-Lucent
proposes fixed and nomadic terminals from various CPE partners
in a global end-to-end offering.  This is part of Alcatel-
Lucent's Open CPE policy, which aims at promoting an open device
ecosystem and ensuring customers have the widest possible range
of interoperable end-user devices.

                        About Alcatel-Lucent

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

The company has operations in Indonesia.

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

                          *     *     *

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

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

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


AVNET INC: Unit Becomes Analog Devices' Pan-Asian Distributor  
-------------------------------------------------------------
Avnet, Inc.'s unit, Avnet Electronics Marketing, is now Analog
Devices Inc.'s first pan-Asian distributor.  The distribution
agreement extends the existing arrangements, which already
include China and India, to cover the Asia Pacific region.

"Avnet Electronics Marketing is pleased to have been recognized
as Analog Devices' first ever pan-Asian distributor, which
echoes our commitment to the region.  It also demonstrates that
our focus and capability on delivering 'support across the
board' as a global distribution leader is fully acknowledged by
our supplier partner," said Stephen Wong, president of Avnet
Electronics Marketing Asia.

Asia continues to be the manufacturing powerhouse of the world,
particularly in the fields of information technology and
consumer electronics.

Analog Devices has defined innovation and excellence in signal
processing and its analog, mixed-signal, and digital signal
processing integrated circuits play a fundamental role in
converting, conditioning, and processing real-world phenomena
such as light, sound, temperature, motion, and pressure into
electrical signals that are used in a wide array of electronic
equipment -- much of it made in Asia.

"In a dynamic market like Asia, where competitive pressures are
continuing to intensify, manufacturers are now demanding more
direct support from distributors to deal with shrinking product
life cycles.  We need a partner that can respond to the changing
market requirements by driving innovation in terms of supply
chain, design chain service, and the variety of its product
offerings.  By extending this distributorship, Avnet is able to
leverage its engineering and regional logistics capability to
uplift the customer services to the next level which helps our
customers stay ahead of the competition," said Tim MacCannell,
Director of Global Channel Sales of Analog Devices Inc.

"Avnet Electronics Marketing's global customer service, high
technical expertise, logistic professionalism, total solution
support from design till purchase round the world, all of which
provide extra values to Analog Devices and our local and global
customers.  With the addition of this new franchise in Asia, we
are able to extend our connection around the world, targeting
various applications such as telecom, consumer and handheld,"
said Ravi Kichloo, senior vice president, global semiconductor,
Avnet Electronics Marketing.

                About Avnet Electronics Marketing

Avnet Electronics Marketing Asia -- http://www.em.avnet.com/--  
part of Phoenix-based Avnet, Inc., has a significant presence in
Asia-Pacific.  With its regional headquarters in Singapore, the
company has 38 locations in 10 countries in Asia.  It
distributes semiconductors, interconnect, passive and
electromechanical components to serve a wide range of customers
including original equipment manufacturers (OEMs), electronic
manufacturing services (EMS) providers, and small- to medium-
sized businesses, and provides associated design-chain and
supply-chain services.

                        About Avnet Inc.

Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT)
-- http://www.avnet.com/-- distributes electronic components  
and computer products, primarily for industrial customers.  It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and
Sweden.

                          *     *     *

The Troubled Company Reporter on March 6, 2007, reported that
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc. and revised the outlook to
positive from stable.


FOSTER WHEELER: Appoints Peter Rose as VP & Corporate Treasurer
---------------------------------------------------------------
Foster Wheeler Ltd.'s board of directors has elected Peter D.
Rose to the position of vice president and corporate treasurer.  
Mr. Rose succeeds Thierry Desmaris, who was recently elected to
the position of vice president of corporate development.  Prior
to this promotion, Mr. Rose was vice president, internal audit,
and chief corporate compliance officer. In his new role, he will
report to John T. La Duc, executive vice president and chief
financial officer.

"Peter is a 29-year veteran of Foster Wheeler, with an excellent
knowledge of the company, and has served in a number of senior
financial positions within the company," said Mr. La Duc.  
"Peter has demonstrated excellent performance in implementing
and managing the Sarbanes-Oxley process and has also proved
highly effective in leading the corporate compliance function.  
Peter is an extremely experienced individual and I am highly
confident that he will continue to make a significant
contribution to the future success of Foster Wheeler."

Mr. Rose, 60, was appointed to the position of vice president,
internal audit, and chief corporate compliance officer in 2004.  
Previously, he was assistant treasurer of Foster Wheeler Inc.
and has also held the roles of director of finance and assistant
controller of various Foster Wheeler subsidiaries, as well as
that of corporate chief auditor.

Mr. Rose, a CPA, holds a Bachelor's Degree from Bloomfield
College, NJ, and a Master's Degree in Business Administration in
Finance from Cornell University.  He is a member of the American
Institute of Certified Public Accountants and the Institute of
Internal Auditors.

                       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 china, India, Indonesia, Malaysia,
Singapore, Thailand, and Vietnam.

                           *     *     *

As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services raised its ratings on Foster
Wheeler Ltd., including its corporate credit rating to 'BB' from
'B+'.  The Clinton, New Jersey-headquartered engineering and
construction company had total reported debt of approximately
US$203 million at Dec. 29, 2006.  The outlook is stable.

                   Asbestos Management Program

The company recorded a net gain from its asbestos management
program in 2006 of US$100.1 million, reflecting a US$115.6
million gain from four insurance settlements and the successful
appeal of a court decision in the company's pending asbestos-
related insurance coverage litigation, and a US$15.5 million
charge in the fourth quarter of 2006 resulting from the
company's year-end  update of its 15-year estimate of its
asbestos liabilities and related assets.


MARSH & MCLENNAN: To Buy Back US$500 Million of Common Stock
------------------------------------------------------------
Marsh & McLennan Companies, Inc. has entered into an agreement
with a financial institution counterparty to repurchase US$500
million worth of outstanding MMC common stock in an accelerated
share repurchase transaction. MMC will conduct this transaction
pursuant to the Board of Directors' US$500 million share
repurchase authorization disclosed on May 8, 2007.  

As of April 30, 2007, before giving effect to the repurchase
transaction, MMC has 555.4 million shares of common stock
outstanding.

"MMC's improved financial position gives us flexibility to
invest in our businesses and return cash to shareholders," said
Michael G. Cherkasky, president and chief executive officer of
MMC.  "The repurchase agreement, together with the 12 percent
dividend increase disclosed in the first quarter of 2007,
illustrates the Board's and management's commitment to enhancing
shareholder value."

Under the terms of the agreement, MMC has agreed to repurchase
US$500 million worth of its outstanding common stock.  The total
number of shares to be repurchased will be based on the volume-
weighted average price of MMC's stock through a contractually
specified averaging period.

                     About Marsh & McLennan

Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a  
global professional services firm with annual revenues of
approximately US$12 billion.  It is the parent company of Marsh,
the world's leading risk and insurance services firm; Guy
Carpenter, the world's leading risk and reinsurance specialist;
Kroll, the world's leading risk consulting company; Mercer, a
major global provider of human resource and specialty consulting
services; and Putnam Investments, one of the largest investment
management companies in the United States.  Approximately 55,000
employees provide analysis, advice, and transactional
capabilities to clients in over 100 countries, including
Indonesia, Australia, China, India, Japan, Korea and Singapore.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+' preferred
stock ratings to Marsh & McLennan's unlimited universal shelf.

Standard & Poor's also affirmed its 'BBB' counter party credit
rating on MMC.  The outlook in negative.

As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Moody's Investors Service assigned provisional
ratings to Marsh & McLennan's new universal shelf registration,
including a (P)Ba1 rating on the Company's provisional preferred
stock.  The rating outlook for MMC remains negative.


PERTAMINA: Cepu Project to Produce 10,000 Barrels Daily in 2008
---------------------------------------------------------------
PT Pertamina's (Persero) Cepu Oil Block project is expected to
start at 10,000 barrels per day (bpd) of crude oil in late 2008
or early 2009, Reuters reports.

According Reuters, Pertamina's partner in the project, Exxon
Mobil Corporation, wanted to produce oil as soon as possible but
complex land issues surround the project.  Exxon Mobil said that
the local community wanted a very high price for its land, the
report relates.

Pertamina is considering processing the oil at an old
decommissioned domestic refinery on Java Island and is currently
working with Exxon Mobil to finalize the option to process the
oil, Reuters noted. The report says that the old refinery had a
capacity of 10,000 bpd but would need to be reactivated and
refurbished.

On April 10, 2006, the Troubled Company Reporter - Asia Pacific
reported that United States oil firm, Exxon Mobil Corporation,
and PT Pertamina signed a Joint Operating Agreement in March
2006 to develop the Cepu oil block located in East and Central
Java.  The TCR-AP report added that PT Pertamina and Exxon Mobil
obtained 25 proposals from unnamed investors to finance the Cepu
development project.  The Cepu oil block is expected to increase
Indonesia's oil output by around 20% when production starts in
2008.

                      About PT Pertamina

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

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

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

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


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

SANYO ELECTRIC: To Strengthen Product Quality Control
-----------------------------------------------------
SANYO Electric Co. said it will strengthen its product quality
control and hinted its solar and battery operations will be a
major focus this fiscal year, SmartMoney.com reported citing Dow
Jones Newswires.

"Under a new management policy for the current fiscal period
through March 2008, Sanyo Electric said it will establish a
division to monitor customer satisfaction and product quality.
Sanyo forecasts it had a group net loss of JPY50 billion in the
fiscal year ended March.  It is struggling to recover its
finances under the watchful eye of a group investors led by
Goldman Sachs Group Inc., who last year invested US$2.6 billion
to bail out the company, according to the report,"
SmartMoney.com related.

As reported by the Troubled Company Reporter - Asia Pacific on
May 11, 2007, SANYO Electric will announce its fiscal year 2006
financial results on May 28.  The company disclosed that Azsa &
Co. is currently in the midst of auditing the results.  Sanyo
Electric said at present, significant impact on the Fiscal Year
2006 financial results is not expected; however, as previous
Fiscal Year audits are as yet unfinished, it is expected that
these results will be issued having received qualified opinion
by the auditors.

SANYO Electric will hold its General Shareholders Meeting on
June 28, after which the company plans to submit its securities
report.  

                      About SANYO Electric

Headquartered in Osaka, Japan, SANYO Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading  
manufacturers of consumer electronics products.  The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
March 2, 2007 Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.

As reported by the TCR-AP on May 25, 2006, Standard & Poor's
Ratings Services affirmed its negative BB long-term corporate
credit and BB+ senior unsecured debt ratings on SANYO Electric
Co. Limited.  At the same time, the ratings were removed from
CreditWatch where they were first placed with negative
implications on Sept. 28, 2005.


SOFTBANK CORP: Sets Expansion Plans on TV Broadcasting
------------------------------------------------------
The Wall Street Journal reported that Softbank Corp. "is setting
its sights on television broadcasting as its next area of
expansion, joining other companies in the country looking to
deliver content via the Web."

Yukari Iwatani Kane, writing for the Journal, interviewed the
chief executive of Softbank, Masayoshi Son, who said, "a service
integrating Internet content and on-demand video with live
terrestrial television programming could be a logical step after
the company acquired Japan's third-largest mobile operator last
year."

Mr. Son told Mr. Kane that Softbank had no plans to take over an
existing broadcaster to get into the business and instead will
wait for airwaves to become available.

Mr. Kane noted that the Japanese government "is scheduled to
shut off analog signals and switch entirely to digital
television in 2011.  At that point, certain airwaves, used for
analog broadcasting, would likely become available for other
uses.  The government could accept new applicants to use these
airwaves."

                    About Softbank Corporation

Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese   
telecommunications and media corporation.  SoftBank was
established on September 3, 1981.  The company operates in eight
business segments:

   * Broadband Infrastructure Segment
   * Fixed-line Telecommunications Segment
   * e-Commerce Segment
   * Internet Culture Segment
   * Broadmedia Segment
   * Technology Services Segment
   * Media & Marketing Segment
   * Overseas Funds Segment

Softbank is also involved with leisure and service operations,
e-finance, holding company functions for overseas operations,
and back-office services in Japan.  SoftBank's corporate profile
includes various other companies such as Japanese broadband
company Cable & Wireless IDC, cable company BB-Serve, and gaming
company GungHo Online Entertainment.  In 2006, SoftBank bought
Vodafone Japan, giving it a stake in Japan's US$78 billion
mobile market.

As of March 31, 2007, the company's paid-in capital was JPY163.3
billion.  

                          *     *     *

According to the Troubled Company Reporter - Asia Pacific,
Moody's Investors Service, on August 9, 2006, upgraded Softbank
Corp.'s stable long-term debt rating and issuer rating to Ba2
from Ba3, concluding a review initiated on March 17, 2006, when
the company announced that it would acquire a 97.7% stake in
mobile phone giant Vodafone Group's Japanese unit, Vodafone
K. K.

Standard & Poor's Ratings Services on September 19, 2006,
affirmed its 'BB-' long-term corporate credit and senior
unsecured debt ratings on Softbank Corporation, excluding
Softbank's euro-denominated senior unsecured notes due 2011.  At
the same time, the ratings were removed from CreditWatch, where
they were placed on March 6, 2006, following the announcement of
the company's acquisition of Vodafone K.K., a Japanese
subsidiary of Vodafone Group PLC. Softbank's capital structure
is deteriorating due to the increased debt burden as a result of
the acquisition.

On Feb. 12, 2007, the TCR-AP reported that Softbank Corp.'s net
profit slipped 66% to JPY7.4 billion in the 2006 third quarter
because of higher taxes and declines in extraordinary income.  
The company's revenue more than doubled to JPY702.1 billion in
the 2006 third quarter from JPY287.5 billion in the same period
the previous fiscal year.


SUMITOMO MITSUI FINANCIAL: Plans to Boost Annual Dividend
---------------------------------------------------------
Sumitomo Mitsui Financial Group Inc. plans to boost its annual
dividend by JPY3,000 per share for the year ending March 2008,
from JPY7,000 in the previous fiscal year, the Nikkei reported,
without citing sources, according to AFX News Limited.

The business daily said SMFG will make the announcement on
May 21, 2007, when it releases its fiscal 2006 earnings, the
report added.

As previously reported by the Troubled Company Reporter - Asia
Pacific on May 1, 2007, Sumitomo Mitsui Financial Group, Inc.
revised its consolidated earnings forecasts for the fiscal year
ended March 31, 2007, due to a decrease in banking profit
(before provision for general reserve for possible loan losses)
of Sumitomo Mitsui Banking Corporation, a major subsidiary of
SMFG.

The company's revised consolidated earnings forecasts for the
fiscal year ended March 31, 2007, show:

   (Billions of yen, except percentages)

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

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on May 1,
2007, that Fitch Ratings affirmed Sumitomo Mitsui Financial
Group, Inc.'s and it subsidiary Sumitomo Mitsui Banking
Corporation's individual ratings at 'C'.


UBE INDUSTRIES: To Build Bigger Plant in Thailand by October '09
----------------------------------------------------------------
Ube Industries, Ltd. says it will build a 50,000-metric ton-per
year nylon-6 resins plant at its Ube Nylon complex at Bangkok by
October 2009, Yarns and Fibers Exchange reports.  Currently Ube
Nylon's capacity is 25,000 m.t. per year.

According to the report, Ube says the new capacity will cater to
increasing demand in China and the rest of Asia, where the
market is growing at about 10% per year.

Thai Caprolactam Public Co., another Ube subsidiary, will supply
caprolactam feedstock to the nylon-6 unit, NYFX relates.  Nylon-
6 resin is used in food wrapping, fishing lines, and fishnet
monofilament, as well as automotive parts.

                       About Ube Industries

Headquartered in Yamaguchi, Ube Industries, Ltd. --
http://www.ube-ind.co.jp-- is one of Japan's major diversified  
chemical companies. The company has strengths as the leading
manufacturer in Asia for production and sales of caprolactum.

On September 29, 2006 Rating and Investment Information, Inc.
has upgraded the ratings of Ube Industries Ltd. as follows:

   Issuer Rating: BBB- from BB+;

   Senior Debt Rating: BBB- from BB+; and

   Equity Linked Rating: BBB- from BB+.

The Troubled Company Reporter - Asia Pacific reports on January
20, 2006 that Moody's Investors Service has upgraded the senior
unsecured long-term debt rating of Ube Industries, Ltd. (Ube) to
Ba1 from Ba3. The rating outlook is stable.


XEROX CORP: Fitch Rates Trust Preferred Securities at BB
--------------------------------------------------------
Fitch Ratings has assigned a 'BBB-' rating to Xerox Corp.'s
proposed US$750 million offering of senior unsecured notes due
2012.  Proceeds from the offering will be utilized to redeem a
substantial portion of Xerox's US$1 billion bridge credit
facility that partially financed its May 11, 2007 acquisition of
Global Imaging Systems Inc. for US$1.7 billion.  The Rating
Outlook is Stable.

Xerox Corp.

   -- Issuer Default Rating (IDR) 'BBB-';
   -- Unsecured credit facility 'BBB-';
   -- Senior unsecured debt 'BBB-';
   -- Trust preferred securities 'BB'.

Xerox Credit Corp.

   -- Issuer Default Rating (IDR) 'BBB-';
   -- Senior unsecured debt 'BBB-'.

The ratings and Stable Outlook are predicated upon Xerox's
commitment to balance usage of free cash flow for share
repurchases and acquisitions.  Fitch believes Xerox will reduce
its share repurchase program in 2007, which totaled US$1.1
billion in 2006, to focus on reducing total debt following the
primarily debt-financed acquisition of Global Imaging.  
Furthermore, Fitch believes Xerox will continue to reduce the
percentage of secured debt in the capital structure.  Total
secured debt declined to approximately US$1.9 billion (25.1% of
total debt) at March 31, 2007, from nearly US$3.3 billion at
March 31, 2006 (44.2% of total debt).

The US$750 million notes are governed by a base indenture dated
June 25, 2003 and a sixth supplemental indenture issued on May
14, 2007.  Key terms and covenants of the notes include:

   * A change of control provision requiring Xerox to repurchase
     the notes at 101% of par value plus accrued interest if a
     change of control results in the notes being rated
     non-investment grade;

   * Optional company redemption at 100% of the principal amount
     plus a make-whole premium;

   * Limitation on secured debt equivalent to the greater of
     US$2 billion or 20% of consolidated net worth, excluding
     permitted liens.

Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,  
services and finances a range of document equipment, software,
solutions and services.  Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors.  The company maintains operations in France,
Japan, Italy, Nicaragua, among others.


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

KOREA DEVELOPMENT: Plans to Set Up KRW1-Trillion Fund This Year
---------------------------------------------------------------
Korea Development Bank plans to set up a KRW1 trillion fund this
year to support companies addressing social and environmental
problems by providing loans with interest rates at 0.5% and 1%
lower than market rates for socially responsible companies,
Yonhap News reports.

According to the report, Korean Developmental Bank has picked
276 firms eligible for the fund so far and will start operating
the fund, which has a life span of one year, in the first half
of this year.

Yonhap News points out that a large corporation could qualify
for a loan of up to KRW10 billion, while a smaller firm could
borrow up to KRW5 billion.

                    About Korea Development

Korea Development Bank -- http://www.kdb.co.kr/-- is South  
Korea's long-term funds provider to major industrial projects.  
The company is wholly owned by the Korean Government.  KDB also
offers short and long-term loans, investments, guarantees and
trusts to international finance.  Its major funding sources are
Industrial Finance Bonds, client deposits, special-purpose funds
and foreign-currency funds.

Moody's Investors Service gave KDB a 'D-' Bank Financial
Strength Rating effective January 24, 2006.


LG TELECOM: To Launch Sale of Prada Phones
------------------------------------------
LG Telecom Ltd will launch the sale of much-hyped Prada phones,
at a price of around KRW880,000 to appeal to design-conscious
customers, Yonhap News reports.

According to the report, the phones were developed through the
joint effort of LG Electronics Inc. and Italian fashion brand
Prada.  The two companies cooperated for a year to produce the
handset.

                        About LG Telecom

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

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

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

On March 27, 2007, Moody's Investors Service upgraded LG
Telecom's foreign currency corporate family rating and senior
unsecured bond rating to Ba1 from Ba2.  The outlook on the
rating is stable.


WOORI TECHNOLOGY: To Issue 13,372,820 New Ordinary Shares
---------------------------------------------------------
Woori Technology Inc. has agreed to issue 13,372,820 new
ordinary shares through a rights issue raising KRW20.05 billion
in proceeds, with the par value of KRW500 at the offering price
of KRW1500, Reuters reports.

According to the report, the shareholders of record on June 11,
2007, are entitled to subscribe to new shares from July 12,
2007, to July 13, 2007.  The listing date of the new shares will
be July 31, 2007, the report adds.

                      About Woori Technology

Headquartered in Seoul, Korea, Woori Technology Inc. --
http://www.wooritg.com/-- is a manufacturer specialized in the  
provision of electronic equipment.  The company operates its
business through information communication and system divisions.
Its information communication business division provides audio
visual (AV) receivers, set-top boxes (Stubs), board virtual
machine environment (VME), digital versatile disc (DVD) players
and other related products.  Its system business division offers
distributed control systems (DCS), monitoring devices used in
nuclear power plants and power management systems.  In addition,
the company provides robots used in home, cleaning and guiding.  

Korea Ratings gave the company's KRW2.20 billion straight bond
private offering a B- rating with a stable outlook.


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

KL INFRASTRUCTURE: Default Leads Bank to Take Over Unit's Assets
----------------------------------------------------------------
Because KL Monorail Sdn Bhd, a wholly owned subsidiary of KL
Infrastructure Group Bhd, failed to pay the interest of its
loan, Bank Pembangunan Malaysia Bhd took over its monorail
assets in Kuala Lumpur.

In a disclosure with the Bursa Malaysia Securities Bhd, KL
Infrastructure said that on May 14, Amanah Raya Bhd, the
Security Trustee for Bank Pembangunan, appointed Mohd Anwar
Yahya and Cho Choo Meng as receivers and managers of the
monorail system owned by KL Monorail.

With the appointment of the receivers and managers, the
managerial powers of the directors of its unit were suspended,
the company told the bourse.

The Troubled company Reporter - Asia Pacific reported on May 2,
2007, that KL Monorail was unable to pay MYR4,244,801.91
interest due on April 29, 2007, to the bank.  Consequent to the
default, KL Monorail received a default notice dated May 3,
2007, from Albar & Partners, acting on behalf of Bank
Pembangunan, which accordingly sought repayment of the entire
principal sum of MYR609,616,423.73 and interest of
MYR296,428,910.88, all aggregating to MYR906,045,334.61 as at
April 28, 2007.  KLMS was granted until May 10, 2007, to repay
the entire sum.

KL Monorail, according to the TCR-AP, entered on May 31, 2001,
into a non-recourse Loan Agreement with Bank Pembangunan for the
provision of a MYR620 million infrastructure loan to partly
finance the implementation of the KL Monorail project.  

The company said that it will continue to engage the Government
and Bank Pembangunan to address the proposed takeover of
operational assets and assumption of loan liabilities of its
unit by Syarikat Prasarana Negara Berhad based on earlier
discussions and an approval in principle.  The TCR-AP said on
May 9, 2007, that a proposed takeover by Syarikat Prasarana has
been suggested and, in this regard, Syarikat has conducted a due
diligence audit on KL Monorail and the result of the audit is
currently pending.

                          *     *     *

KL Infrastructure Group is principally engaged in the concession
and operation of an intra-city public transit system called the
KL Monorail.  Its other activities include provision of
advertising space on columns and stations along KL Monorail
project route, property development and investment holding.  The
Group's activities are carried out principally in Malaysia.

The Group has been incurring losses in the past years due to its
high operating expenses and loan-interest payments.

KL Infrastructure Group Berhad disclosed on Sept. 28, 2006, that
it has become an affected listed issuer pursuant to the
provisions of Amended Practice Note 17/2005, as its auditors
have expressed a modified opinion on its going concern and based
on its nine months accounts from January 31, 2006.  KLINFRA's
shareholders' equity on a consolidated basis is less than 50% of
the issued and paid-up capital.

KL Infrastructure Bhd's balance sheet as of January 31, 2007,
showed shareholders' deficit of MYR6,543,000, resulting from
total assets of MYR1,335,807,000 and total liabilities of
MYR1,342,350,000.


KL INFRASTRUCTURE: Bank Takeover Triggers PN-17 Criteria
--------------------------------------------------------
KL Infrastructure Group Bhd has triggered another criteria
pursuant to its listing in the Bursa Malaysia Securities Bhd as
an Amended Practice Note 17 company.

According to the company's disclosure with the bourse, it has
triggered Paragraph 2.1(b) of the Enhanced PN17 after receivers
and managers were appointed by Bank Pembangunan Malaysia Bhd
over the property and undertaking of KL Monorail System Sdn Bhd,
a subsidiary of the company, which asset accounts for at least
50% of the total its assets on a consolidated basis.

The company had already triggered two criteria under the PN17
category.  On May 9, 2006, the company said its shareholders'
equity on a consolidated basis is less than 25% of the issued
and paid-up capital, and the shareholders' equity is also less
than the minimum issued and paid-up capital as required under
paragraph 8.16A(1) of the Listing Requirements of Bursa Malaysia
Securities Berhad i.e. MYR60 million based on its Audited
Financial Statements for the financial year ended April 30,
2006.

In addition, the Troubled Company Reporter - Asia Pacific said
that on Sept. 28, 2006, the company became an affected listed
issuer pursuant to the provisions of Amended Practice Note
17/2005, after its auditors expressed a modified opinion on its
going concern and based on its nine months accounts from
January 31, 2006.  The company's shareholders' equity on a
consolidated basis is less than 50% of the issued and paid-up
capital, the report said.

                          *     *     *

KL Infrastructure Group is principally engaged in the concession
and operation of an intra-city public transit system called the
KL Monorail.  Its other activities include provision of
advertising space on columns and stations along KL Monorail
project route, property development and investment holding.  The
Group's activities are carried out principally in Malaysia.

The Group has been incurring losses in the past years due to its
high operating expenses and loan-interest payments.

KL Infrastructure Group Berhad disclosed on Sept. 28, 2006, that
it has become an affected listed issuer pursuant to the
provisions of Amended Practice Note 17/2005, as its auditors
have expressed a modified opinion on its going concern and based
on its nine months accounts from January 31, 2006.  KLINFRA's
shareholders' equity on a consolidated basis is less than 50% of
the issued and paid-up capital.

KL Infrastructure Bhd's balance sheet as of January 31, 2007,
showed shareholders' deficit of MYR6,543,000, resulting from
total assets of MYR1,335,807,000 and total liabilities of
MYR1,342,350,000.


KNOLL INC: First Qtr 2007 Net Income Increases to US$14.8 Mil.
--------------------------------------------------------------
Knoll Inc. has reported net sales of US$247.9 million for the
first quarter ended March 31, 2007, an increase of 13.7% from
first quarter 2006.  Operating income was US$30.8 million, or
12.4% of net sales, an increase of 40.6% from the first quarter
2006.  Net income for the first quarter 2007 was US$14.8
million, as compared with US$10.2 million for the same quarter
in 2006.

Gross profit for the first quarter of 2007 was US$84.5 million,
an increase of US$14.7 million or 21.1%, over the same period in
2006.  Operating expenses for the quarter were US$53.7 million,
or 21.7% of sales, compared to US$47.8 million, or 21.9% of
sales, for the first quarter of 2006.  The company' operating
income increased to 12.4% of sales from 10% of sales in the same
period in the prior year.  Interest expense increased US$1.2
million due to increased average debt for the quarter coupled
with higher average interest rates.  The effective tax rate was
38% for the quarter, as compared to 39.1% for the same period
last year.  The decrease in the effective tax rate is largely
due to the mix of pretax income in the countries in which we
operate.  

Cash generated from operations during the first quarter 2007 was
US$2 million, compared to US$15.2 million used in operations the
year before.  Capital expenditures for the period totaled US$3
million compared to US$1.2 million for 2006.  The company
repurchased about 0.5 million shares of its stock for US$13.5
million during the first quarter of 2007 compared to 0.8 million
shares for US$16.3 million during the first quarter of 2006.  
The company also had net borrowings during the first quarter of
2007 of US$7 million primarily to fund working capital compared
to net borrowings of US$16.4 million during 2006.  The company
also paid a quarterly dividend of US$5.3 million in the first
quarter of 2007 compared to US$5.2 million in the first quarter
of 2006.

At March 31, 2007, the company had total assets of US$633
million and total liabilities of US$613.1 million, resulting in
a total stockholders' equity of US$19.8 million.

Full-text copies of the company's first quarter 2007 are
available for free at http://ResearchArchives.com/t/s?1ef6

"Knoll is firing on all cylinders," said Andrew Cogan, chief
executive officer.  "Thanks to the breadth and diversity of our
growth initiatives, for the third year in a row we are growing
our sales faster than the industry.  And, importantly in 2007,
investments in our operations are resulting in significant
improvements in both our gross and industry leading operating
margins."

"We are encouraged by the ongoing activity in the business and
look forward to an exciting NeoCon trade show in June, as we
continue to make investments in strengthening and expanding our
product portfolio.  I want to congratulate and thank our
associates and dealers for their strong performance and
continued commitment to our success."

Barry L. McCabe, chief financial officer said, "We are very
pleased with both our gross and operating margin expansions and
the strength of our balance sheet.  We reduced our leverage
ratio to 2.4 to 1 and have US$106 million available to us under
our revolving credit facility."

                    Second Quarter 2007 Outlook

The company expects second quarter 2007 revenue to be in the
US$262 million to 272 million range, an increase of 6% to 10%
from the second quarter of 2006.

                         About Knoll Inc.

Headquartered in East Greenville, Pennsylvania, Knoll Inc.,
(NYSE:KNL) -- http://www.knoll.com-- designs and manufactures  
branded office furniture products and textiles, serves clients
worldwide.  It distributes its products through a network of
more than 300 dealerships and 100 showrooms and regional
offices.  The company has locations in Argentina, Australia,
Bahamas, Cayman Islands, China, Colombia, Denmark, Finland,
Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
Philippines, Poland, Portugal and Singapore, among others.

The company currently carries Moody's B1 Corporate Family
Rating, Ba3 rating on its US$200 million senior secured
revolver, and Ba2 rating on US$250 million senior secured term
loan.  Additionally, Moody's assigned an LGD2 rating to both
loans, suggesting noteholders will experience a 27% loss in the
event of a default.


PROTON HOLDINGS: Government Asks for More Time to Name Partner
--------------------------------------------------------------
Proton Holdings Bhd is still waiting for the Malaysian
Government to decide on a foreign partner, Bernama News says.

According to Bernama, media reporters asked second Finance
Minister Tan Sri Nor Mohamed Yakcop, after launching the
prospectus of Deleum Bhd, whether the government has made its
decision on the possible strategic alliance between Proton and a
foreign automotive player.  "No decison yet," he told reporters.

Asked whether there was any response from Volkswagen, Nor
Mohamed said, "Not yet. I will let you know one day.  "Just give
us a little time. We will resolve it."

The government has already missed its self-imposed March
deadline to announce a foreign partner for Proton.  The
Malaysian government missed its March 31 deadline to name the
new partner as it was still evaluating options to find a
strategic partner, the Troubled Company Reporter - Asia Pacific
said on April 18, 2007.

On Monday, Datuk Seri Dr Hilmi Yahaya, Finance Ministry
Parliamentary Secretary, told the Dewan Negara that the
government was still talking to overseas carmakers and will only
later consider any joint venture with a local company, Bernama
relates.

                          *     *     *

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

                        *     *     *

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

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


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

AIR NEW ZEALAND: To Fix Hawaiian Airlines' Fleet, Report Says
-------------------------------------------------------------
Air New Zealand is negotiating a deal with Hawaiian Airlines to
conduct maintenance checks of Hawaiian's fleet of Boeing 767-300
aircraft, Pacific Business News says, citing a report by The
Dominion Post of Wellington.

Hawaiian operates 17 Boeing 767s throughout the Pacific and has
11 Boeing 717 jets that fly between the Hawaiian Islands,
Pacific Business News relates.

According to the report, Air New Zealand is in the final stage
of the negotiations and an announcement is expected at the end
of May.

The report says financial details were not disclosed but the
resulting contract is expected have a term of up to three years,
with an option to extend.

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

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

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


AM HOSPITALITY: Receiving Creditors' Proofs of Debt Until May 28
----------------------------------------------------------------
AM Hospitality Services (NZ) Pty Ltd. requires its creditors to
file their proofs of debt by May 28, 2007.

The company commenced liquidation proceedings on April 27, 2007.

The company's liquidators are:

         Stephen Mark Lawrence
         Anthony John McCullagh
         Horwath Corporate (Auckland) Limited
         PO Box 3678, Auckland 1140
         New Zealand
         Telephone:(09) 306 7425
         Facsimile:(09) 302 0536


ARC CAFE: Appoints Trevor Edwin Laing as Liquidator
---------------------------------------------------
On April 24, 2007, ARC Cafe Ltd. started to liquidate its
business and appointed Trevor Edwin Laing as liquidator.

The Liquidator can be reached at:

         Trevor Edwin Laing
         Trevor Laing & Associates
         PO Box 2468, Dunedin
         New Zealand
         Telephone:(03) 454 4559


DOS DUCE: Enters Wind-Up Proceedings
------------------------------------
Dos Duce Ltd. started to wind up its operations on April 17,
2007.

Iain Andrew Nellies and Paul William Gerrard Jenkins were
appointed as liquidators.

The Liquidators can be reached at:

         Iain Andrew Nellies
         Paul William Gerrard Jenkins
         c/o Insolvency Management Limited
         Burns House, Level 3
         10 George Street
         PO Box 1058, Dunedin
         New Zealand


DOUG TAYLOR: Creditors' Proofs of Debt Due by June 1
----------------------------------------------------
Doug Taylor Builders Ltd. started to liquidate its business on
April 24, 2007.

Creditors are required to file their proofs of debt by June 1,
2007, to be included in the company's dividend distribution.

The company's liquidators are:

         Amanda-Jane Atkins
         Glen David Gernhoefer
         WHK Gosling Chapman Partnership
         WHK Gosling Chapman Tower, Level 6
         51-53 Shortland Street
         Auckland 1010
         New Zealand
         Telephone:(09) 303 4586
         Facsimile:(09) 309 1198


CHATS CATERING: Court to Hear Wind-Up Petition on May 31
--------------------------------------------------------
A petition to wind up the operations of Chats Catering Ltd. will
be heard before the High Court of Auckland on May 31, 2007, at
10:00 a.m.

The petition was filed by Coca-Cola Amatil (N.Z.) Limited on
Jan. 31, 2007.

Coca-Cola Amatil's solicitor is:

         Anna Mary Fitzgibbon
         LawWorks, Guildford House
         2 Emily Place
         PO Box, Auckland
         New Zealand


CONSWAY KINETIC: Court to Hear Wind-Up Petition on June 28
----------------------------------------------------------
The High Court of Auckland will hear an application to wind up
the operations of Consway Kinetic Innovations Ltd. on June 28,
2007, at 10:45 a.m.

The petition was filed by Kevin James Murray on March 29, 2007.

Mr. Murray's solicitor is:

         Stephen J. Davies
         c/o Davies Law
         37 Totara Avenue
         PO Box 15547 New Lynn, Auckland
         New Zealand


KERBSIDE SERVICES: Subject to CIR's Wind-Up Petition
----------------------------------------------------
The Commissioner of Inland Revenue filed a wind-up petition
against Kerbside Services (2001) Ltd. on April 11, 2007.

The petition will be heard before the High Court of Whangarei on
May 21, 2007, at 10:45 a.m.

The CIR's solicitor is:

         P. J. Smith
         Marsden Woods Inskip & Smith
         122 Bank Street
         PO Box 146, Whangarei
         New Zealand


MILFORD PASTORAL: Shareholders Agree to Shut Down Business
----------------------------------------------------------
On April 23, 2007, the shareholders of Milford Pastoral Ltd.
agreed to shut down the company's business and appointed Steven
Basil Drummond as liquidator.

The Liquidator can be reached at:

         Steven Basil Drummond
         Woodnorth Joyce Accountants Limited
         Chartered Accountants
         100-104 Sophia Street
         PO Box 529, Timaru
         New Zealand
         Telephone:(03) 684 5079
         Facsimile:(03) 688 4623


NETT BOOKS: Wind-Up Petition Hearing Set for June 7
---------------------------------------------------
A petition to wind up the operations of Nett Books Ltd. will be
heard before the High Court of Auckland on June 7, 2007, at
10:00 a.m.

New Zealand Customs Service Limited filed the petition with the
Court on March 5, 2007.

New Zealand Customs' solicitor is:

         Kelly Quinn
         c/o Walters Law
         Qantas House, Level 23
         191 Queen Street
         PO Box 1972, Auckland
         New Zealand


TANGATA NGAHERE: Court to Hear Wind-Up Petition on May 21
---------------------------------------------------------
An application to wind up the operations of Tangata Ngahere Ltd.
will be heard before the High Court of Whangarei on May 21,
2007, at 10:45 a.m.

The petition was filed by the Commissioner of Inland Revenue on
April 11, 2007.

The CIR's solicitor is:

         P. J. Smith
         Marsden Woods Inskip & Smith
         122 Bank Street
         PO Box 146, Whangarei
         New Zealand


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

CHIQUITA BRANDS: Credit Concerns Prompt Moody's Negative Outlook
----------------------------------------------------------------
Moody's Investors Service changed the rating outlook for
Chiquita Brands International, Inc. to negative from stable.

The change in outlook is based on Moody's concern that Chiquita
may be challenged to maintain credit metrics that are
appropriate for its rating over the intermediate term.

That concern arises from the company's anemic operating
profitability in the recent first quarter, combined with the
negative impact on leverage and profitability from the announced
definitive agreement to sell and re-charter Chiquita's shipping
fleet.  The company's ratings, including its B3 corporate family
rating, were affirmed.

Ratings affirmed:

* Chiquita Brands International, Inc. (parent holding company)

   -- Corporate family rating at B3

   -- Probability of default rating at B3

   -- US$250 million 7.5% senior unsecured notes due 2014 at       
      Caa2 (LGD5, 89%)

   -- US$225 million 8.875% senior unsecured notes due 2015 at
      Caa2 (LGD5, 89%)

* Chiquita Brands LLC (operating subsidiary):

   -- US$200 million senior secured revolving credit agreement
      at B1 (LGD2, 26%)

   -- US$24.3 million senior secured term loan B at B1 (LGD2,
      26%)

   -- US$368.4 million senior secured term loan C at B1 (LGD2,
      26%)

Should the term loan B be repaid in full with a portion of the
proceeds of the sale of ships, that rating will be withdrawn.

Chiquita's operating performance continues to be very weak. In
the first quarter, segment operating income for bananas, the
company's largest segment at about 44% of consolidated sales,
declined 10.5%, despite the benefits of Euro currency impact,
cost and compensation savings, and the absence of residual costs
in the prior year's quarter from Tropical Storm Gamma.  Lower
banana profit was due in part to higher net industry cost
increases and lower local banana prices in the important
European market, and only modest ability to raise prices in
North America (up 1%). Hardest hit was Chiquita's salads and
healthy snacks segment (approximately 24% of sales), whose
segment operating income dropped 95% from US$12 million to
US$0.6 million. This segment suffered from increased costs due
to the January freeze in Arizona, lower prices and volumes on
certain foodservice products, lower net revenue per case in
retail value-added sales, and higher raw material and marketing
costs. Finally, another Chiquita segment's profitability was
impacted by a US$5 million charge to exit certain unprofitable
farm leases in Chile.

Chiquita announced on May 1, that it had signed a definitive
agreement to sell its 12 refrigerated cargo vessels for US$227
million. The transaction is expected to be finalized in about 45
days. Proceeds from the sale will reduce debt by US$170 million,
with much of the remaining proceeds to be used for general
corporate purposes including growth. If such growth
opportunities are not forthcoming in 180 days, remaining
proceeds will be used for additional debt reduction. While
reported debt balances will be lower post-sale, the re-
chartering of 11 vessels will increase rental expense, with a
net negative impact on reported fiscal 2007 EBITDA of -US$12
million. Debt to EBITDA, using Moody's standard analytical
adjustments, is expected to be higher after the sale of the
ships, despite the reduction in funded debt.

Chiquita's ratings could be downgraded if its earnings and cash
flow remain weak or in the event that its liquidity becomes
constrained. Specifically, Chiquita's ratings could be
downgraded if debt to EBITDA (incorporating Moody's standard
analytic adjustments and excluding certain non-recurring 2006
charges) rises above 8 times on a lagging 12-month basis, and/or
if EBIT to interest falls below 0.7 times on a lagging 12-month
basis. Conversely, a stabilization of the rating outlook would
require Chiquita to be able to sustain lagging 12-month
Debt/EBITDA below 7 times, and lagging 12-month EBIT/Interest
above 1.0 time.

The affirmation of the company's ratings, including its B3
corporate family rating, is supported by Chiquita's solid
franchise as one of the largest global fresh fruit and vegetable
companies with strong market shares and good diversification in
terms of product offerings, geographic reach, and raw material
supply. Chiquita's B3 corporate family rating also reflects the
company's high financial leverage, challenged operating
performance, continued uncertainty with regard to long term
structural changes occurring in the company's key EU banana
market, slow demand for the company's salads and healthy snacks,
and pressure from rising input costs.

Moody's considers Chiquita's ratings in the context of the key
rating drivers cited in Moody's Rating Methodology for Global
Natural Product Processors - Protein and Agriculture. Using the
methodology's 22 rating factors and fiscal 2006 historical
financial information, adding back US$43 million of impairment
charges and a US$25 million charge for the proposed financial
settlement with the Department of Justice, Chiquita's rating
would be B1. This model-generated rating indication largely
reflects the Ba and Baa scores the company achieves on
qualitative factors. However, these factors are overshadowed by
the company's high leverage and weak operating performance, as
well as by the fact that quantitative rating factors will be
negatively impacted in the near term by the rent expense
associated with re-leasing the shipping fleet.

                          *     *     *

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


PHILIPPINE REALTY: Earns PHP688.64 Million in 2006
--------------------------------------------------
Philippine Realty and Holdings Corporation reported a net income
of PHP688.64 million for the year ended Dec. 31, 2006, more than
doubling the net income of PHP323.76 million the company
reported a year earlier, due mainly from the company's disposal
of its International Exchange Bank shares worth PHP545.20
million.

Other income dropped by 28.26% from PHP363.48 million in 2005 to
PHP260.75 million in 2006.  Other income for 2006, includes the
discount granted by our major creditor, Meadowmere Resources
Corporation, which acquired the company's Metrobank loan from
Cameron Granville 3 Asset Management, Inc., in the amount of
PHP186.28 million and the reversal of accrued interest on
Tranches A and B of the restructured loan brought about by early
payment of loan to MRC, in the amount of PHP55.89 million.

In 2005, the reversal of excess accrued interest in accordance
with the court-approved rehabilitation program amounted to
PHP358.50 million.

Consolidated gross revenues totaled PHP1.07 billion for the
current year, up by 111% from PHP507 million in 2005.  Rental
income increased by 17.22% from PHP24.38 million in 2005 to
PHP28.57 million in 2006 as major areas were leased out.  Equity
earnings slightly decreased by 2.64% in spite of the disposal of
the shares of our affiliate, International Exchange Bank in June
2006.

IEB's total earnings from January to April 2006 amounted to
PHP534.51 million where we realized equity earnings of PHP43.78
million.  Another affiliate, A Brown Co, Inc. posted a net
income of PHP148.28 million.

Consolidated general and administrative expenses decreased by
PHP5.51 million from PHP137.12 million in 2005 to PHP131.61
million in 2006, brought about by the decrease in realty taxes
on sold condominium units and the Company and its subsidiaries
effort to tight rein its expenditure.

The group's 2006 financials are available for download at:

          http://bankrupt.com/misc2/philrealty2006.pdf

            The Parent Company's Going Concern Doubt

Ofelia Gamad at Manabat Delgado Amper & Co. raised a significant
doubt on the parent company's ability to continue as a going
concern citing the parent company's recurring losses from
operations and its financial position that indicates that
sufficient cash flows have to be generated to fully service its
liabilities and finance its working capital requirements.

               About Philippine Realty and Holdings

Headquartered in Quezon City, Philippine Realty and Holdings
Corporation is one of the leading real estate developers in the
country.  It was incorporated on July 13, 1981, but development
activities began only in 1986  
when capitalization was increased to PHP100 million from the
initial PHP2 million to accommodate the entry of new
stockholders.  The company's main real estate activity since it
started operations has been the development and sale of
residential/office condominium projects and to a limited extent,
the lease of commercial and office spaces.

Subsidiaries include:

   * Tektite Insurance Brokers, Inc.
   * PRHC Property Managers, Inc.
   * Meridian Assurance Corporation
   * Universal Travel Corporation
   * Le Cheval Holdings, Inc.
   * Alexandra (U.S.A), Inc.
   * A. Brown Company, Inc.
   * International Exchange Bank

            Status of the Parent Company's Operations

The Parent Company's operations have been severely affected by  
the slump in the local real estate industry that started when  
the regional economic crisis hit the country in the middle of  
1997.  It has experienced a continued decline in sales and has  
to contend with higher interest rates.   

With the property market being heavily dependent on bank  
financing -- and the economic crisis not only brought  
prohibitive lending rates but also restricted credits to the  
real estate industry -- the Parent Company registered a net  
income of PHP323.5 million in 2005, which is not enough to cover  
a deficit of PHP2.24 billion as of December 31, 2005.

The year 2006 proved to be significant for the parent company as
far as settlement of its obligations is concerned.  Through a
memorandum of agreement between its major creditor, shares of
stock representing an 8.19% interest in IEB were disposed.   
Pursuant to the agreement, proceeds of the sale will be applied
to its outstanding liability with Meadowmere Resources Corp.

               Parent Company's Plan of Operations

Starting in 1998, Philippine Realty has offered its land
properties and certain condominium units to the banks and other
major creditors as payment for its obligations through dacion en
pago to substantially reduce its unpaid obligations.  It has
also suspended the development and completion of several of its
real estate projects, and had implemented cost-cutting measures
including the substantial reduction of its workforce.

               Stay Order and Rehabilitation Plan

In December 2002, the Parent Company's Board of Directors  
resolved to file a petition for a corporate rehabilitation with  
the Regional Trial Court in Quezon City.  A Stay Order was  
granted on December 16, 2002, after the petition was deemed  
sufficient both in form and in substance.

Among the salient features of the Stay Order are:

   * A stay in the enforcement of all claims against Philippine
     Realty, its guarantors and sureties not solidarily liable
     with the Parent Company;

   * Prohibiting the Parent Company from selling, encumbering,  
     transferring or disposing in any manner any of its  
     properties except in the ordinary course of business;

   * Prohibiting the Parent Company from making any payment of  
     its liabilities outstanding as of the filing of instant  
     petition;

   * Prohibiting the Parent Company's suppliers of goods and  
     services from withholding supply of goods and services in  
     the ordinary course of business for as long as it makes  
     payments for the goods and services supplied after the  
     issuance of the Stay Order; and

   * Directing the payment in full of all administrative  
     expenses incurred after the issuance of the Stay Order.

On February 6, 2003, the Court conducted a series of hearings
for the purpose of receiving various inputs from the company,
the creditors and the rehabilitation receiver as well.  In the
course of the proceedings, the Court noted that all the creditor
banks were in agreement that the company is susceptible to
rehabilitation as it is solvent and its business is viable.   

The objectives of the rehabilitation plan are:

   1. to pay all of Philippine Realty's creditors in a fair and
      just manner;

   2. to complete and deliver the Andrea Skyline Condominium
      units to its existing buyers; and

   3. to protect the investments of the shareholders,
      particularly the small public investors, by keeping the
      business viable and profitable.

                     Status of Debt Service

As of December 31, 2006, the parent company's total debts stands
at PHP829.49 million.  

                       Debt Restructuring

The debt restructuring scheme will be divided into two tranches:

   Tranche A -- would be a term loan facility to cover
                contractual interest and principal repayment
                over 10 years with a grace period of one year on
                interest payments and five years on principal
                repayments.   

   Tranche B -- would be a zero coupon bond facility where the
                payments will depend on the availability of
                cash.   

Both tranches bear an annual interest of 5%.


PRIMETOWN: Losses and Insolvency Prompt Going Concern Doubt
-----------------------------------------------------------
Primetown Property Group, Inc. reported a net loss of PHP20.44
million for the year ending Dec. 31, 2006, only a third of the
previous year's net loss of PHP69.71 million.

Revenues for the year totaled PHP6.40 million while costs and
expenses amounted to PHP26.79 million.

As of Dec. 31, 2006, the company had total assets of PHP308.04
million and total liabilities of PHP1.12 billion resulting in a
capital deficiency of PHP808.53 million.

                      Going Concern Doubt

F.B. Santos at San Jose Verde Santos and Associates raised
significant doubt on the company's ability to continue as a
going concern citing the company's recurring losses since 1998
and capital deficiency.

The company's 2006 financials are available for download at:

          http://bankrupt.com/misc2/primetown2006.pdf

Makati City-based Primetown Property Group, Inc. is engaged in
the buying, development and selling of real estate.  The company
has completed and launched several residential and commercial
development projects within the Maakti Central Business
District, Fort Bonifacio, Cebu City, Tagaytay City and Boracay
Island, including condominium-hotel projects.  


SOUTH CHINA: Incurs PHP26.33-Million Net Loss in 2006
-----------------------------------------------------
South China Resources, Inc. suffered a net loss of PHP26.33
million for the year ended Dec. 31, 2006, due to a PHP28.38
million equity in net losses of its associates.

This is the company's third consecutive yearly loss after the
net losses of PHP36.17 million and PHP48.74 million recorded for
the years ended Dec. 31, 2005 and 2004, respectively.

For 2006, the company had total revenues of PHP6.09 million and
total expenses of PHP5.88 million.  

The company's 2006 financials are available for download at:

       http://bankrupt.com/misc2/southchinaresources.pdf

Makati City-based South China Resources, Inc. was incorporated
in 1992 to undertake oil and gas exploaration, development and
production.  


STENIEL MFG: Losses & Deficit Prompts Going Concern Doubt
---------------------------------------------------------
Geraldine Hammond-Apostol of Isla Lipana and Co. raised
substantial doubt on Steniel Manufacturing Corporation's ability
to continue as a going concern citing that the company incurred
net losses of PHP178.23 million, PHP185.15 million and PHP138.82
million for the years ending Dec. 31, 2006, 2005 and 2004,
respectively.  

The auditors also cited the company's PHP887.57 million
accumulated deficit as of Dec. 31, 2006.

For the year 2006, the company recorded revenues of PHP646.93
million and cost of sales of PHP577.93 million.

The company's 2006 financials are available for download at:

     http://bankrupt.com/misc2/stenielmanufacturing2006.pdf

Cavite, Philippines-based Steniel Manufacturing Corporation --
http://www.steniel.com/-- was incorporated in 1963 primarily to  
engage in manufacturing, processing, and selling all kinds of
paper products, paper board and corrugated carton containers,
and all other allied products and processes.  The company and
its subsidiaries have established a strong foothold in the
packaging industry by offering a broad line of packaging
products from corrugated carton boxes to paper, plastic
containers, and flexible packaging.  STN stands as the single
largest independent manufacturer of corrugated fibreboard
containers in the Philippines.  About 99% of its revenues come
from the corrugated packaging business while the remaining 1% is
from rigid plastics.

On October 30, 2000, Metro Pacific Corporation and Philippine
International Paper Corporation entered into a Sale and Purchase
Agreement with Steniel (Netherlands) Holdings B.V. whereby all
the 636,193,025 common shares collectively owned by MPC and PIPC
representing approximately 72.6% of the issued and outstanding
capital stock of the company were sold to Steniel (Netherlands)
in accordance with the terms and conditions provided for in the
SPA.


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

GOH HUP HENG: Court Enters Wind-Up Order
----------------------------------------
On May 11, 2007, the High Court of Singapore released an order
to wind up the operations of Goh Hup Heng Electrical Pte Ltd.

Hamptonford Singapore Pte Ltd. filed the petition against the
company.

The company's liquidator is:

         Mr. Abuthahir Abdul Gafoor
         ELTICI Financial Advisory Services Pte Ltd
         1 Raffles Place
         #20-02 OUB Centre
         Singapore 048616


HYSTON ENGINEERING: Court to Hear Wind-Up Petition on May 25
------------------------------------------------------------
Eng Hua Thong Construction Pte Ltd., filed a wind-up petition
against Hyston Engineering Pte. Ltd. on May 11, 2007.  
  
The High Court Of Singapore will hear the petition on May 25,
2007, at 10:00 a.m.  
  
Eng Hua's solicitor is:  

        Messrs Loy & Company
        133 New Bridge Road #08-06
        Chinatown Point
        Singapore 059413


ISOFT GROUP: IBA Extends Suspension of Stock Trading on the ASX
---------------------------------------------------------------
IBA Health Limited sought and obtained permission from the
Australian Securities Exchange to extend the current voluntary
suspension in trading of its shares for a further trading day.  
The voluntary suspension is now expected to end with the
commencement of trading today, May 16, 2007.

The purpose of this extension is to enable IBA Health to
conclude negotiations with iSOFT Group plc in relation to its
potential offer for that company.  A further announcement will
be made to the market prior to the commencement of trading on
Wednesday.

As previously reported in the TCR-Europe on May 9, 2007, IBA
earlier sought a halt in trading of its shares on the ASX to
enable to hold meetings with certain institutional investors
with a view to raising new IBA equity capital in order to
facilitate a possible combination of IBA and iSOFT, to be
executed by means of a recommended all-share offer by IBA to
acquire.  The iSOFT management team is participating in these
meetings.

The material, which IBA is presenting to institutional
investors, includes certain details of the contemplated offer
terms, equity raising and financing arrangements as follows:

    * iSOFT shareholders would receive 1.1 new IBA shares for
      each iSOFT share, valuing iSOFT at 56.9 pence per share
      based on the last trading price of IBA shares on the ASX
      and a GBP:AUD exchange rate of 0.4121

    * IBA is seeking to raise approximately AUD200 million
     (GBP82 million) of new equity capital through a placing and
      rights issue.  Both the placing and rights issue would be
      fully underwritten by ABN AMRO Rothschild

    * new debt facilities of GBP130 million (AUD315 million) for
      the combined entity to be arranged and underwritten by ABN
      AMRO Bank N.V.  These would be subject to completion of a
      number of conditions precedent including the completion of
      the equity placement/issuance

    * full run-rate annual cost synergies from the combination
      of the two companies are expected by IBA to be
      approximately AUD27 million (GBP11 million)in IBA's
      financial year ended June 30, 2009

There can be no certainty that an offer by IBA to acquire iSOFT
will be made.

iSOFT has in recent months been in discussions with a number of
external parties who have expressed an interest in acquiring
iSOFT or taking a significant stake in the Company.

On Feb. 16, IBA confirmed that it was in discussions with iSOFT,
which might or might not lead to an all-share recommended offer
for the Company.

                          About iSOFT

Headquartered in Manchester, United Kingdom, iSOFT Group plc
-- http://www.isoftplc.com/-- supplies advanced medical
software applications for the healthcare sector.  Its products
are used by more than 8,000 organizations in 27 countries for
managing patient information and driving improvements in
healthcare services.  In international markets, the group has a
strong presence in the Asia-Pacific, including Singapore and
India.

                          *     *     *

In June 2006, the Group disclosed of a change in accounting
policy, as a consequence of which it became necessary to review
revenue recognition in prior years, in order to re-state some
prior year revenues.  Arising out of that review, a number of
possible accounting irregularities came to light in which it
appears that some revenues reported in 2003/04 and 2004/05 may
have been recognized earlier than they should have been.

On July 20, 2006, the Group engaged its auditors, Deloitte &
Touche LLP, to conduct a formal initial investigation into these
possible irregularities.  In August 2006, it was confirmed that
there were indeed matters that needed further investigation and
the company handed over relevant documents to the Financial
Services Authority, which is now conducting further
investigations.

The Group is working closely and co-operatively with the FSA in
order to complete these investigations as quickly as possible.
At the current time it would be inappropriate to comment on the
likely outcome.

On Oct. 25, 2006, the Accountancy Investigation and Discipline
Board (AIDB) disclosed that it would conduct its own
investigation.  The AIDB investigation is a review of the
conduct of those members of accountancy bodies that are
regulated by the AIDB who were executive or non-executive
directors of iSOFT during the relevant periods, and RSM Robson
Rhodes LLP, iSOFT's auditor for the financial years ended
April 30, 2003, 2004 and 2005.

All current executive directors of iSOFT who are members of
those accountancy bodies were appointed after the dates under
investigation, as was the non-executive director who is
currently chairman of the audit committee.  The initial
investigation into possible accounting irregularities --
conducted by the Group's current auditors, Deloitte & Touche
LLP, in July and August 2006 -- did not uncover evidence that
any of the current non-executive directors had any knowledge of
the irregularities.

On the basis of information that has come to light so far, the
Group does not believe that these matters will have any impact
on the current or future financial position of iSOFT.

                      Going Concern Doubt

At Oct. 31, 2006, the company's board of directors recognized
that there are material uncertainties that may cast significant
doubt on the Group's ability to continue as a going concern.


PETROLEO BRASILEIRO: Earns BRL4.1 Billion in First Quarter 2007
---------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras reported net revenues of
BRL38.9 billion for the first quarter 2007.  Its net profit
totaled BRL4.1 billion.

Notwithstanding the positive figures, the company's main
performance indicators -- oil and derivative production and
processing -- could have been even better had there not been
production problems in Golfinho (FPSO Capixaba), Jubarte (P-34),
and Marlim (P-37), over and beyond the scheduled shutdowns
carried out at the country's main refineries.  Nevertheless, the
improved physical performance was not able to offset the
negative effects of the falling oil prices and of the rising
costs in the company's results for the first quarter 2007.

The company's net revenues are higher than a year ago because of
the higher sales volume, in part influenced by the Pasadena
Refinery consolidation.  The net operating revenue rose 8% over
a year ago, at BRL38.9 billion.  Operating profit did not keep
pace with this trend because it was tied to the average
realization price decrease, both in the internal and in the
external markets, to the higher sold product costs (also
influenced by stock turnover), and to the higher operating
expenses.  Another influencing factor was the disbursement that
was made concerning the Petros pension plan renegotiation
BRL1,040 million).  Furthermore, there was also a spike in net
financial expenses due to the higher creditor foreign exchange
exposure and because of exchange fluctuations.

                       Production Expansions

The Brazilian oil and LNG production averaged 1.8 million
barrels per day, about 83% coming from the Campos Basin.  This
figure is some 50,000 barrels per day more than a year ago, or
3%.  This higher productive capacity was the outcome of new
platforms going online:

          -- the P-50 (Albacora Leste) in April 2006,
          -- the FPSO-Capixaba (Golfinho) in May 2006,
          -- the P-34 (Jubarte) December 2006, and
          -- FPSO-Cidade do Rio de Janeiro (Espadarte) in
             January 2007.  

Kicking the operations off more than offset the natural decrease
in production of a few mature fields, particularly Marlim.

The total derivative production rose 7%, influenced by the
significant increase in the load processed abroad -- up 150%
because of the Pasadena Refinery operations in the US.  The load
processed in Brazil decreased 2% due to the scheduled
maintenance shutdowns at Replan, Brazil's biggest refinery, and
at Reman.  There was also a decrease in the domestic oil
participation in the processed load, since it was more
advantageous to use larger amounts of imported light oil,
reducing fuel oil production, which as lower value added.

The external market drove sales.  Exports surged 17%, in volume,
in the external market.  This trend was the outcome of higher
production and of the lower participation of domestic oil in the
total processed load.  International sales were up 53% on
account of the inclusion of the Pasadena Refinery operations, as
of October 2006, and because of the trade operations abroad.  
The result was a 33% surge in the sales made to the foreign
market.

Internal market sales, meanwhile, were 1% higher than a year
ago, particularly for fuel oil, LPG and aviation fuel.  These
sales reflected the higher demands among distinctive domestic
industry sectors, particularly the transformation and power
generation industry.  The expansion was also associated to the
population's higher buying power and to the Brazilian economy's
Gross Domestic Product.  Domestic market sales were also
affected by the increased use of ethanol and natural vehicular
gas in the light vehicle fleet.

There was vigorous growth in net oil and derivative exports.  
The favorable trade balance was the outcome of the combined
effect of the lower derivative import rate, in particular of
diesel fuel, and of the increased oil exports.  This behavior
resulted in a US$528-million financial surplus.

The company disclosed that Petrobras System's investments
totaled BRL8.3 billion, about 40% more than in first quarter
2006.  Two main guidelines were followed for these investments:

          -- the goal was to increase the gas offer to underpin
             the energy capacity required for the economic
             growth that has been forecast for Brazil in the
             upcoming years.  In this regard, special emphasis
             was given to investments made in oil and natural
             gas production in Brazil (BRL3,986 million) and in
             the gas & energy sector (BRL197 million); and

          -- efforts were made to buttress Petrobras' position
             as one of the main global energy market players
             (investments abroad were up by 173%, topping-out at
             BRL1,922 million), due, by and large, to the
             investments made in seismic (USA and Turkey) and in
             building two drillships.  These investments were in
             accordance with the 2007-2007 Business Plan, and
             resources for them were secured by operating cash
             generation (the EBITDA reached BRL10,993 million).

Compared to a year ago, the unit refining cost increased by 34%
in Brazil, the outcome of higher operating costs, which
reflected the investments that were made to adapt the refineries
to process heavy oil and to ensure better fuel quality to comply
with environmental requirements, and the impact of the greater
amount of scheduled shutdowns.  Discounting the effects of the
4% appreciation of the Real on the portion of the expenses
incurred in domestic currency, refining costs rose 29%.  The
average international unit refining cost was up by 54% over last
year because of the Pasadena Refinery (USA) inclusion in the
figures.  Excluding this effect, the company would have an 8%
decrease due to the 9% increase in production.  The average
international unit refining cost rose 16% over fourth quarter
2006 because of the expenses with the scheduled shutdowns and
due to the higher material cost in the US.

                       Lower Total Net Debt

The company's total net debt decreased 5% because of the non-
renewed debt amortization.  However, there were reduced cash
assets, especially because of the payment of interest on the
capital to the shareholders, for BRL6,361 million, which rose
the net debt figure.  Petrobras' financial leveraging rose to
19% in the quarter, up from 16%, in compliance with the
corporate capital structure optimization objectives.

The company's share value decreased in first quarter 2007
because of the lower international oil prices.  This lower gain
trend was also seen in the shares belonging to the main global
oil companies, as reported by the Amex Oil Index.  Nonetheless,
the company's market value rose to BRL215.6 billion, 8% more
than a year ago.

There was more than BRL12 billion in economic contribution.  
Petrobras' economic contribution to Brazil, measured via tax
payments, fees and current social contributions, topped out at
BRL12,282 million.  Government participation fell 2% in Brazil
over last year.  This decrease was the outcome of the 12%
reduction in the reference price for domestic oil, which
averaged BRL98.40 (US$46.72), down from BRL111.80 (US$50.93) a
year ago.  Furthermore, it was also associated to the lower
special participation aliquots, especially for the Marlim and
Marlim Sul fields.  The decrease also reflects the natural
decline in production and the scheduled shutdown carried out for
the P-37 (Marlim) in January 2007.

                  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.


PETROLEOS BRASILEIRO: Fitch Ups Issuer Default Rating to BBB-
-------------------------------------------------------------
Fitch Ratings has upgraded the foreign currency Issuer Default
Rating of Petroleos Brasileiro to 'BBB-' and its wholly owned
subsidiary, Petrobras International Finance Company; PIFCo is
unconditionally guaranteed by Petrobras.  Fitch has also
assigned a local currency IDR of 'BBB' to Petrobras.  The Rating
Outlook for all IDRs is Stable.  Approximately US$6.0 billion of
debt securities are affected.

These securities are upgraded to 'BBB-' from 'BB+' by Fitch.

   Petroleos Brasileiro and Petrobras International Funding Co:

     -- Senior unsecured notes due 2008;
     -- Senior unsecured notes due 2011;
     -- Senior unsecured notes due 2013;
     -- Senior unsecured notes due 2014;
     -- Senior unsecured notes due 2016;
     -- Senior unsecured notes due 2018.
     -- National long-term rating and following securities
        affirmed at AAA(bra).
     -- Second issuance of debentures due 2012;
     -- Third issuance of debentures due 2010

   PF Export Receivables Master Trust:

     -- Foreign currency IDR and securities are upgraded to
        'BBB+' from 'BBB';
     -- Trust certificates due 2015;
     -- Trust certificates due 2013 (unenhanced long-term
        rating).

   Petrobras Energia S.A. (PESA, Formerly Pecom Energia S.A.):

     -- Local and foreign currency IDRs and following securities
        upgraded to 'BB' from 'B+':

     -- Senior unsecured notes due 2009;
     -- Senior unsecured notes due 2010;
     -- Senior unsecured notes due 2013;
     -- Guaranteed notes due 2017 to upgraded 'BBB-' from 'BB+'.

   Companhia Petrolifera Marlim:

     -- IDR and securities to upgraded 'BBB-' from 'BB+';
     -- MTNs due 2008.

The rating actions reflect Petrobras' improving operating and
financial performance as well as further fundamental credit
strengthening of its controlling shareholder, the Federative
Republic of Brazil.  PESA's rating upgrade reflects improving
credit fundamentals and implicit and explicit support provided
by its shareholder, Petrobras.  Petrobras' ratings are supported
by:

     -- substantial proved hydrocarbon reserves and increasing
        upstream output,

     -- recognized leadership in offshore exploration and
        production,

     -- a favorable international product price environment,

     -- successful corporate and industry restructuring during
        the past decade,

     -- a transition to more transparent financial standards,
        and

     -- dominant domestic market shares.  

The factors are tempered by vulnerability to fluctuations in
international commodity prices, exposure to local political
interference, currency risk, domestic market revenue
concentration, and significant medium-term capital-investment
requirements linked to the company's ambitious strategic plan.

Petrobras' financial profile remains strong, with solid credit-
protection measures continuing to benefit from increased
production and the global rise in hydrocarbon and product
prices.  The company reported total adjusted debt/EBITDA of 1.3
times and Operating EBITDA/interest expense of 15.8x under U.S.
GAAP for fiscal year-end 2006.  Petrobras maintains strong
liquidity in relation to short-term debt obligations.  The
company posted fiscal year 2006 total consolidated debt of
US$21.3 billion, of which approximately 27% was classified as
short term.  The company's sizeable US$12.7 billion in cash and
equivalents resulted in total net debt of US$8.7 billion.
Petrobras' management has indicated its preference to maintain a
substantial cash balance going forward, partially debt funded,
to minimize its exposure to international capital market
volatility.

Petrobras' 2007-2011 business plan, which primarily reflects new
projects to increase production and refining both in Brazil and
internationally, the increase in costs of related services and
equipment in the production chain, and a stronger local
currency, all of which increases capital spending when expressed
in US dollars.  Under the new business plan, Petrobras estimates
it will invest US$87.1 billion through 2011, an increase of
US$34.7 billion (66%) for the comparable period under the
previous plan.  Approximately US$49 billion (56% of total), up
from US$31 billion (59%), has been allocated to exploration and
production activities, representing a slight shift in allocation
percentage toward downstream activities.

Fitch recognizes the positive credit effect of the market-
oriented measures implemented in the past five years as well as
improvements in corporate governance.  The opening to private
participation and deregulation, strong management commitment to
increased financial transparency, corporate reorganization and
modernization, and aggressive upstream production development,
coupled with value-chain strategies, should strengthen credit
fundamentals.  While there has been close coordination of
business plans with federal authorities, it does not appear to
have affected market-oriented efforts to improve operational
efficiencies, increase upstream production volumes, or adhere to
capital discipline guidelines.

Petrobras is a mixed-capital company, with the government owning
approximately 40% of Petrobras' total capital and 55.7% of its
voting capital.  The remainder of the shares is publicly traded,
and an estimated 40% is held by foreign investors.  Despite
Fitch's concerns generated by the significant imbalance between
local currency revenues and hard currency expenses and
liabilities, it is important to note that Petrobras' operations
are of vital economic importance to the nation, suggesting the
government has a prime incentive to ensure Petrobras' access to
hard currency for servicing foreign obligations.

Petrobras is an integrated international oil and gas company
engaged in the exploration, development and production of
hydrocarbons and in the refining, marketing, transportation and
distribution of oil and a wide range of petroleum products,
petroleum derivatives, petrochemicals and liquid petroleum gas.  
Petrobras is also an integrated power company with operations in
electric power generation, transmission and distribution.  By
law, the federal government must hold at least a majority of
Petrobras' voting stock.

                  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.


SEA CONTAINERS: U.K. Regulator Reissues FSD Warning
---------------------------------------------------
The United Kingdom Government Pensions Regulator reissued a
warning notice on April 26, 2007, to Sea Containers Ltd., that
it may exercise its powers to issue financial support directions
to the company under relevant UK pensions legislation, according
to a Securities and Exchange Commission filing.

The UK Regulator previously issued its first FSD warning on
Oct. 19, 2006, with respect to Sea Containers 1983 Pension
Scheme and the Sea Containers 1990 Pension Scheme.

The 1983 and 1990 Pension Schemes are multi-employer defined
benefit pension plans of Sea Containers Services Ltd., a U.K.
subsidiary of the company.  If FSDs are issued to SCL, it may be   
liable to make a financial contribution to one or both of the
Schemes.

The Trustees of the Schemes or their actuary have advised SCL
that their current estimates of the cost of winding up the
Schemes, including the cost of purchasing annuities to pay
projected benefit obligations to Scheme participants, would be:

   -- approximately GBP107,000,000 or US$201,000,000 for the
      1983 Scheme, after giving effect to the withdrawal of a GE
      SeaCo SRL subsidiary from the 1983 Scheme; and

   -- approximately GBP27,000,000 or US$51,000,000 for the 1990
      Scheme.

Because the Schemes are multi-employer plans, the liabilities
under them are shared among the participating companies.

SCL has responded to the original warning notices, asserting
that it would not be reasonable to issue an FSD, and actively
engaged with the UK Regulator to persuade it of this concern,
Robert MacKenzie, president and chief executive officer of SCL,
notes.

A response on the second FSD warning was due by May 14, 2007.

The UK Regulator says the reissue is not meant to prejudice
attempts to resolve matters by alternative means but sees no
benefit in delaying crystallizing a potential liability.

SCL is preparing a response maintaining that it is not
reasonable under the circumstances for the UK Regulator to issue
an FSD, Mr. MacKenzie relates in the SEC filing.

The UK Regulator has indicated that its Determination Panel will
consider the matter on June 12 and 13, 2007.

                       About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA,
SCRB) -- http://www.seacontainers.com/-- provides passenger and  
freight transport and marine container leasing.  Registered
inBermuda, the company has regional operating offices in London,
Genoa, New York, Rio de Janeiro, Sydney, and Singapore.  The
company is owned almost entirely by United States shareholders   
and its primary listing is on the New York Stock Exchange (SCRA
and SCRB) since 1974.  On October 3, the company's common shares
and senior notes were suspended from trading on the NYSE and
NYSE Arca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.  
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.  Sea
Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  

The Debtors' exclusive period to file a plan expires on June 12,
2007.  Their exclusive period to solicit acceptances expires on
Aug. 11, 2007.  (Sea Containers Bankruptcy News, Issue No. 16;
Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


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

DAIMLERCHRYSLER: Cerberus to Launch Huge Cost Cuts, Reports Say
---------------------------------------------------------------
Cerberus Capital Management LP's US$7.4 billion deal to buy a
controlling stake in DaimlerChrysler AG's Chrysler Group should
set off an alarm for workers of the ailing unit as analysts
predict that the equity firm will launch massive cost cuts,
published reports say.

Cerberus specializes in buying distressed companies and then
turning them around through heavy cost cutting, The Associated
Press observes.  The Free Press notes that Gerald Meyers, former
American Motors Corp. chief executive and now a University of
Michigan professor of business management, said dramatic cost
cutting is going to be necessary to make the deal work.

The investment firm needs to work with the United Auto Workers
union to restructure the US$18 billion that Chrysler estimates
it will eventually owe for UAW retiree health-care benefits, The
Wall Street Journal suggests.  The UAW represents about 50,000
of Chrysler's 80,000 workers, as well as many other workers in
the industry.

Benefits for active and retired union workers are certain to be
a big issue.  Rising health-care costs have bedeviled Chrysler
as its ranks of retirees have grown and health-care inflation
has hovered around 10% in recent years.  Cerberus is expected to
pressure the UAW to make substantial concessions, which could
raise the costs of prescription drugs and health-care premiums
for about 84,000 UAW retirees and dependents, the WSJ states.

The deal is also likely to raise fears for further job cuts
among Chrysler workers, the WSJ observes.  In February, the auto
maker said it would shed about 13,000 workers and idle a sport-
utility-vehicle factory in Delaware, part of a plan to cut
production capacity by 400,000 vehicles a year.  Cerberus
officials didn't disclose plans for further job cuts yesterday.

The TCR-Europe reported on April 23, 2007, that UAW President
Ron Gettelfinger has expressed opposition to the sale of
Chrysler to private equity investors because he is concerned
that they would "strip and flip" the company by selling it off
in parts.

However, Mr. Gettelfinger revealed to Detroit radio station WJR
that DaimlerChrysler CEO Dieter Zetsche and Chrysler CEO Tom
LaSorda had told him Saturday that "the status quo for the
Chrysler Group was no longer an option."  In a recent news
conference, Mr. Gettelfinger explained that until Saturday, his
position had been to fight to keep Chrysler within
DaimlerChrysler.  He was told then that wasn't possible.  He
said several times that he had to work with "the hand I was
dealt," the WSJ notes.

Meanwhile, Cerberus has said it will work with Chrysler's
existing management team, led by Mr. LaSorda.  But Cerberus has
on its payroll a team of former senior auto executives it can
call upon for advice.  They include former Chrysler Chief
Operating Officer Wolfgang Bernhard, former Ford Vice Chairman
David Thursfield, former Ford sales executive Robert Rewey and
former Chrysler sales and marketing executive Gary Dilts,
published reports say.  Cerberus hopes to run Chrysler more
effectively as a private company.

"People say, how can you turn this around and we can't?" said
Cerberus Chairman John Snow, former Treasury Secretary, in an
interview.  It will take patience, he said.  "It might take a
couple of years to really show the results.  And public
companies don't have two or three years."

                      About DaimlerChrysler

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

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

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

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

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


DAIMLERCHRYSLER: No Immediate Job Cuts, Cerberus Assures Workers
----------------------------------------------------------------
Leaders of the soon-to-be-independent Chrysler Group and its
buyer, Cerberus Capital Management LP, have launched a campaign
to bolster workers' confidence in the DaimlerChrysler AG unit
and win support from rank-and-file workers and union leaders
alike, the Wall Street Journal relates.

According to the report, Cerberus Capital founder Stephen
Feinberg met with leaders of Chrysler's two main unions and
offered assurances it plans no immediate job cuts, beyond the
13,000 previously proposed by the company, in an effort to ease
labor worries about Cerberus' planned acquisition of 80.1% of
Chrysler.

Mr. Feinberg has committed to not cutting additional hourly jobs
in Canada until at least September 2008, when the current CAW
contract with Chrysler expires, WSJ notes.  He also promised not
to eliminate United Auto Worker positions beyond those already
announced in February.

Canadian Auto Workers union leader Buzz Hargrove, who previously
had expressed opposition to a private-equity takeover, welcomed
the news with praises, saying he is confident that "this is not
about slice and dice ... they're in for the long term."

Mr. Feinberg also scored points with Mr. Hargrove by expressing
concern about trade policies and countries that sell vehicles in
North America but close their doors to imports from the U.S. and
Canada, WSJ observes.  Those are concerns that the CAW also
raises often, and Mr. Hargrove said Mr. Feinberg could help out
greatly in lobbying the U.S. and Canadian governments on those
issues.

Meanwhile, UAW chief Ron Gettelfinger, who had previously
expressed concern about a potential private-equity buyer for
Chrysler, has expressed his support for the deal, reports say.

The union leaders' positive response to the deal may have paved
the way for future talks with workers as part of Cerberus' plan
to acquire a majority stake in Chrysler; however, it does not
guarantee that the road will be smooth as the new owners are
expected to hold litigious contract negotiations with the UAW,
while Chrysler's health-care liabilities amounting to US$18
billion loom over their heads, WSJ suggests.

Chrysler CEO Tom LaSorda has advised that the automaker needs to
attack its labor-cost disadvantage in the near term as it looks
to return to profitability, WSJ states.  He reassured the public
Monday night that the company does not plan to kill any of its
three brands -- Dodge, Chrysler and Jeep.  He also disclosed on
Tuesday that Chrysler will consider alliances aimed at small
cars and fast-growth emerging markets as it breaks free from
Germany's Daimler AG, Reuters reports.

Mr. LaSorda has disclosed that the automaker would pursue a
turnaround plan announced in February that includes cutting
13,000 jobs and investing US$3 billion in new plants to make
more fuel-efficient engines as it shifts to private ownership
under Cerberus Capital Management, Reuters relates.  He added
that the new owners have endorsed the company's strategic plans
and will not spin off Chrysler's brands, freeze new investment
or push for higher-than-projected profitability by 2008.

Mr. LaSorda noted that as a private company, Chrysler would be
free of pressure to meet quarterly financial goals and be able
to reach out to partners in target markets such as India, Russia
and Southeast Asia, where it has lagged, Reuters says.

One prospect is expanding an alliance with China's Chery
Automobile Co. agreed in December, pending clearance from the
Chinese government, Reuters reveals.  Under the deal, Chery
would build small cars under Chrysler brands for sale in Europe
and the U.S.  The deal has been delayed by the sale of Chrysler
but a decision is expected soon.

                      About DaimlerChrysler

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

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

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

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

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


DAIMLERCHRYSLER: Recalling 270T Minivans Due to Faulty Airbags
--------------------------------------------------------------
DaimlerChrysler AG is recalling about 270,958 Dodge Caravan and
Chrysler Town and Country minivans in the U.S. to replace faulty
air bags, the company said in a note posted on the Web site of
the National Highway Traffic Safety Administration.  The recall
is only applicable to states that use large amounts of salt for
road de-icing.

Sensors with brass bushings may corrode and crack allowing water
to enter the sensor, causing it to fail, illuminating the air
bag warning light, the company explained in the note.  
DaimlerChrysler has promised to inform the owners and replace
the brass fittings with steel and other material.

Chrysler spokesman Max Gates said on Friday the company has
extended the warranty on another 133,000 of the minivans,
Reuters reports.

                      About DaimlerChrysler

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

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

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

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

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


THANACHART CAPITAL: Discontinues Investment in 8 Subsidiaries
-------------------------------------------------------------
Thanachart Capital PCL elected to dispose of its investment in
eight subsidiaries of Thanachart Bank PCL.  Thanachart Capital
made the decision during its annual general shareholders'
meeting.

The shareholders approved the sale of all shares held by the
company in these subsidiaries, which will total at most THB4.67
million:

   * Thanachart Securities Public Company Limited
   * Thanchart Fund Management Company Limited
   * Thanachart Life Assurance Company Limited
   * Thanachart Insurance Company Limited
   * Thanachart Management and Service Company Limited
   * Thanachart Legal and Appraisal Company Limited
   * Thanachart Group Leasing Company Limited
   * Thanachart Broker Company Limited

Headquartered in Bangkok, Thailand, Thanachart Bank PCL provides
both personal and corporate banking services. The personal
banking includes fixed, current, foreign currency and savings
deposits, residential new home loans and residential refinancing
home loans. The corporate banking offers commercial loans and
other financial services to its business clients. The Bank also
offers services to its customers to make money transfers via
automated teller machines (ATMs) and via phones. As of December
31, 2006, TBANK operated 133 branches and 242 ATMs, as well as
46 foreign exchange centers throughout the country.

On April 2, 2007, Fitch Ratings (Thailand) gave TBANK the
following ratings:

   * A- National Long-term rating  
   * F2 Short-term rating
   * D Individual rating and
   * 5 Support rating


* 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
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Audio Conferences CD
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    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 ***