TCRAP_Public/070807.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

             Tuesday, August 7, 2007, Vol. 10, No. 154

                            Headlines

A U S T R A L I A

AUSTRALIAN CAPITAL: EPG Administrators to Borrow AU$7 Million
DESIGN CLUBWEAR: Members & Creditors Opt to Close Business
EVANS & TATE: McWilliam's Wines Offers to Help Fund Restructure
EXTEK FITNESS: Sets Joint Meeting for August 20
LANOSEAL AUSTRALIA: Members and Creditors to Meet on August 9

LORENZO INVESTMENTS: Taps R. A. Sutcliffe as Liquidator
MICKART PTY: Placed Under Voluntary Liquidation
SERVICEMASTER: Amended Credit Pact Cues S&P to Watch B Ratings


C H I N A   &   H O N G  K O N G

AGRICULTURAL BANK: China to Inject US$40 Billion to Fund Reform
ASAT HOLDINGS: Taps Peter Tin as Senior VP of Quality Dept.
FIAT SPA: Inks Deal to Acquire Car Parts Supplier Ergom Holding
EMI GROUP: Moody's Cuts Corp. Family & Sr. Debt Ratings to B1
PARKSON RETAIL: Won't Take Over Lion Diversified's Stores

* SAIC and Nanjing Auto's Merger to Benefit Both, Fitch Says


I N D I A

BAUSCH & LOMB: Buys Soothe(R) Emollient Eye Drops from Alimera
BRISTOW GROUP: First Quarter Net Earnings Increase by 31.6%
DELHI GURGAON: CARE Cuts Non Convertible Debenture Rating to 'D'
DRESSER-RAND: Earns US$26.2 Million in Second Quarter 2007
DRESSER-RAND: Supplying NatGas Compression Unit to P-18 Oil Rig

EASTMAN KODAK: Earns US$592 Million in Quarter to June 30, 2007
IMPERIAL CHEMICAL: Akzo Talks Continue Over Revised Takeover Bid
IMPERIAL CHEMICAL: Net Profit Rises 22% to GBP121MM in 2Q 2007
LML LIMITED: Incurs INR112.5MM Net Loss in April-June 2007 Qtr.
LOK HOUSING: Earns INR215 Million in Qtr. Ended June 30, 2007

NICCO UCO: Net Loss Narrows to INR62.5MM in Qtr. Ended June 30


I N D O N E S I A

ALCATEL-LUCENT: UBS Reaffirms Buy Rating on Firm's Shares
BANK DANAMON: Aims 50% Increase in Mortgage Lending
GARUDA INDONESIA: Saudi Withdraws Ban After Inspection
INCO LTD: Builds US$2.5-Billion Nickel Plants
INCO LTD: To Meet Annual Output Target Despite Plant Shutdown

INDOSAT: Extends Ericsson Network-Coverage Contract
PERUSAHAAN LISTRIK: To Enter Purchase Pact With Marubeni Corp.


J A P A N

ADVANCED MEDICAL: Posts US$166 Mil. Net Loss in 2nd Quarter 2007
BOSTON SCIENTIFIC: Fitch Lowers Senior Notes Rating to BB+
BOSTON SCIENTIFIC: S&P Downgrades Corp. Credit Rating to BB+
JAPAN AIRLINES: 1st Qtr Loss Declines on Int'l Routes Revenue
SUMITOMO REALTY: 1Q Profit Ups 54%; 1H Income Forecast Raised


K O R E A

DURA AUTOMOTIVE: Files Backstop Rights Purchase Agreement
DYNCORP INT'L: Earns US$12.3 Mil. in First Quarter Ended June 29
REMY INTERNATIONAL: To Begin Vote Solicitation on Prepack Plan
TOWER AUTOMOTIVE: Emerges From Chapter 11 Bankruptcy in New York
TOWER AUTOMOTIVE: Completes US$1BB Asset Sale to TA Acquisition


M A L A Y S I A

MALAYSIA AIRLINES: To Introduce Measures to Curb Delays
PROTON HOLDINGS: Mulls Building Assembly Plant in Egypt


N E W  Z E A L A N D

FLETCHER BUILDING: Purchases Fair Dinkum Homes and Sheds
FLETCHER BUILDING: To Build Regional Center in Hungary
INFRATIL LIMITED: To Raise NZ$175 Million Via 1:5 Rights Issue
MORRISON GROUP: Fixes August 31 as Last Day to File Claims
MORRISON SPRAYING: Names Tubbs and Johnstone as Liquidators


P H I L I P P I N E S

CHIQUITA BRANDS: Earns US$8.6 Million in 2007 Second Quarter
CHIQUITA BRANDS: Weak Operating Results Cue S&P to Lower Rating


S I N G A P O R E

CHEMTURA CORP: Incurs US$2 Million Net Loss in 2007 2nd Quarter
ISOFT GROUP: Posts GBP8.8 Mln Net Loss in Year Ended April 30
LEAR CORP: Earns US$123.6 Mln in 2nd Quarter Ended June 30, 2007
ODYSSEY RE: Reports US$145.5 Mil. Net Income in Second Qtr. 2007


T H A I L A N D

DAIMLERCHRYSLER: W. Bernhard to Head New Chrysler, Report Says
DAIMLERCHRYSLER AG: Chrysler' July 2007 U.S. Sales Drop 1%
DAIMLERCHRYSLER: Reports 9% Decrease in U.S. Sales for July 2007
TMB BANK: Bankruptcy Court Bars Sale of Thai Wah Firms' Shares


* BOND PRICING: For the Week 30 July to 03 August 2007

     - - - - - - - -

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

AUSTRALIAN CAPITAL: EPG Administrators to Borrow AU$7 Million
-------------------------------------------------------------
The administrators of Estate Property Group -- McGrath Nicol --
are planning to raise an extra AU$7 million to help finish some
of its key projects and ensure that the business does not run
out of cash, Sydney Morning Herald reports.

SMH says that McGrath has obtained the Federal Court's approval,
as well as the backing of fellow administrators
PricewaterhouseCoopers -- now in charge of the group's fund-
raising arm, Australian Capital Reserve -- to take out a further
loan with the Commonwealth Bank.

ACR has agreed to secure the new loan against properties in
Newcastle and at Pokolbin in the Hunter Valley being developed
by two EPG subsidiaries over which it has the main security,
SMH's Danny John writes.

The report explains that as part of the deal, the Commonwealth
-- which was one of EPG's main lenders before the group
collapsed and stands to recover all the debt owed to it -- will
be able to lay first claim over the proceeds which will
eventually flow from the finished projects.

At the same time, the Federal Court granted an order that
effectively removed any personal liability from the
administrators for the new loan, which the bank had required as
part of the terms, SMH adds.

Mr. John points out that the arrangement means the loan will be
secured against the properties involved rather than exposing
McGrath to any claim against it personally if the bank has a
need to call in the loan.

The money will help to tide the group over until at least the
end of August, having faced a further cash flow problem after
going into administration at the end of May, the report relates.

McGrath Nicol and PwC are at present selling the first part of
EPG's portfolio of 21 properties in NSW and Victoria, from which
they intend to pay back the banks owed AU$220 million, SMH says.
They also hope to raise at least 60c in the dollar for ACR's
7,000 note holders, who contributed AU$330 million to the group.

According to SMH, the administrators have until the end of this
month to call a second creditors' meeting at which the trustee
for the note holders and the group's lenders will vote on a deed
of company arrangement that will govern the sale of properties
and the return of the funds raised.

Australian Capital Reserve Limited --
http://www.acrlimited.com.au/-- is an investment group based in    
North Sydney New South Wales, Australia.  It was placed in
voluntary administration on the last week of May 2007.  
PricewaterhouseCoopers is its administrators.

Estate Property Group went into voluntary administration on
May 28, 2007.


DESIGN CLUBWEAR: Members & Creditors Opt to Close Business
----------------------------------------------------------
The members and creditors of Design Clubwear Pty Ltd met on
June 25, 2007, and agreed to close the company's business.

R. A. Sutcliffe was appointed as liquidator.

The Liquidator can be reached at:

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


EVANS & TATE: McWilliam's Wines Offers to Help Fund Restructure
---------------------------------------------------------------
McWilliam's Wines, Australia's eighth largest winemaker, decided
to help fund Evans & Tate Ltd.'s restructure, Scott Rochfort
writes for The Age.

According to the report, Evans & Tate agreed to a bail-out
package from Perth investment group Pendulum Capital, which
includes McWilliam's taking a 25% stake.

McWilliam's Deputy Chairman Kevin McLintock told The Age that
the deal would help his company make its first foray into
Western Australia.  Mr. McLintock said that Evans & Tate would
also complement McWilliam's brands.

The report explains that under the deal, Evans & Tate's debts
will be dramatically cut, with the winemaker's banker, ANZ,
agreeing to convert AU$50 million of debt into shares, of which
McWilliam's will buy AU$10 million-worth.

The rest will be held in a "special purpose" vehicle jointly
owned by ANZ and Pendulum called Australian Wine Finance Corp,
which will control 48% of Evans & Tate, The Age points out.  ANZ
will retain a AU$55-million debt facility in the wine company.

"We firmly believe that this proposed transaction gives (Evans &
Tate) stakeholders far greater potential to see value return to
their shares," The Age relates, citing Evans & Tate managing
director Martin Johnson's statement.

The report says that Evans & Tate shareholders can take part in
a AU$17.6-million non-renounceable rights issue, to buy one
share at 4 cents for every two shares they own, well below the
company's most recent trades at 14 cents.  A further 100 million
shares will be placed with McWilliam's at 4 cents each, along
with 50 million free options exercisable at 6 cents each.

The deal, subject to shareholder approval, will see McWilliam's
becoming the global distributor of Evans & Tate's wines.

McWilliam's, whose main winery is located at Hanwood near
Griffith, is partly owned by the United States' wine giant
Gallo, The Age stresses out.  It is the fifth largest bottled
wine producer by value in Australia.  It also owns Mount
Pleasant Estate in the Hunter Valley, Lillydale Estate in the
Yarra Valley, the Barwang Vineyard near Young and has some
operations in the Coonawarra region.

                       About Evans & Tate

Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine   
company listed on the Australian Stock Exchange.  The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.

The Troubled Company Reporter-Asia Pacific reported on Sept. 15,
2006, that Evans & Tate Limited posted a loss of AU$63.9 million
for the 2005-2006 financial year, down 12% on the corresponding
figure for the previous year.

The TCR-AP report also stated that as of June 30, 2006, the
company's balance sheet revealed strained liquidity with
AU$90.930 billion in total current assets available to pay
AU$152.377 billion of total current liabilities coming due
within the next 12 months.  Further, Evans & Tate's June 30,
2006 balance sheet also showed total liabilities of
AU$207.445 billion exceeding total assets of AU$139.792 billion,
resulting to total shareholders' deficit of AU$67.653 billion.

                          Going Concern

The same TCR-AP report adds that Evans & Tate says that the
financial report has been prepared on a going concern basis,
noting that as at June 30, 2006, certain matters are considered
pertinent when considering the ability of the consolidated
entity to continue as a going concern.

The company notes that if it is unable to continue as a going
concern, it will be required to realize its assets and
extinguish its liabilities other than in the normal course of
business and at amounts that may be different to those stated in
the financial report.


EXTEK FITNESS: Sets Joint Meeting for August 20
-----------------------------------------------
A joint meeting will be held for the members and creditors of
Extek Fitness Systems International Pty Ltd on August 20, 2007,
at 10:00 a.m.

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

The company's liquidator is:

         Ray Richards
         SimsPartners
         Level 3, 167 Eagle Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3831 2700


LANOSEAL AUSTRALIA: Members and Creditors to Meet on August 9
-------------------------------------------------------------
The members and creditors of Lanoseal Australia Pty Ltd will
meet on August 9, 2007, at 9:00 a.m., to receive the
liquidator's report about the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


LORENZO INVESTMENTS: Taps R. A. Sutcliffe as Liquidator
-------------------------------------------------------
R. A. Sutcliffe was tapped as liquidator for Lorenzo Investments
Pty Ltd on June 27, 2007.

The company went into liquidation on that same day.

The Liquidator can be reached at:

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


MICKART PTY: Placed Under Voluntary Liquidation
-----------------------------------------------
On July 6, 2007, the members of Mickart Pty Ltd agreed to
voluntarily liquidate the company's business and appointed R. A.
Sutcliffe as liquidator.

The Liquidator can be reached at:

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


SERVICEMASTER: Amended Credit Pact Cues S&P to Watch B Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'B+' bank loan
rating on Memphis, Tenn.-based The ServiceMaster Co. on
CreditWatch with developing implications.  ServiceMaster's other
ratings, including its 'B' corporate credit rating, have been
affirmed.  The outlook remains negative.

"The CreditWatch listing follows the company's execution of an
amendment to its new senior secured credit agreement," said
Standard & Poor's credit analyst Jean Stout.  The amendment
provides the holders of the bank loan the right to parcel the
existing US$2.65 billion term loan into two tranches, Tranche
B-1 Term Loan and Tranche B-2 Term Loan, up to 90 days from the
closing date.  These loans shall have the same terms and be pari
passu in all respects, except that proceeds from collateral in
connection with the exercise of secured creditor remedies shall
be allocated to repay Tranche B-1 Term Loan in full prior to any
allocation of such proceeds to repay Tranche B-2 Term Loan.  
Tranche B-1 Term loan holders would enjoy added protection
provided by their enhanced position in the recovery process
relative to the holders of the Tranche B-2 Term Loan.

The corporate credit rating is unaffected by this amendment as
overall leverage will not change following a potential split of
the term loan into two tranches.

To resolve the CreditWatch listing for the bank loan rating,
Standard & Poor's will monitor developments, including the
ultimate allocation between the term loan tranches, and assess
the recovery prospects of each loan tranche.  If the existing
term loan is split into two tranches, it is possible that both
the bank loan and recovery ratings would differ for each
tranche.

ServiceMaster Co. -- http://www.servicemaster.com/-- (NYSE:SVM)
currently serves residential and commercial customers through a
network of over 5,500 company-owned locations and franchised
licenses.  The company's brands include TruGreen, TruGreen
LandCare, Terminix, American Home Shield, InStar Services Group,
ServiceMaster Clean, Merry Maids, Furniture Medic, and
AmeriSpec.  The core services of the company include lawn care
and landscape maintenance, termite and pest control, home
warranties, disaster response and reconstruction, cleaning and
disaster restoration, house cleaning, furniture repair, and home
inspection.  The company has operations in Australia, Chile,
China, Dominican Republic, Hong Kong, Indonesia, Japan, and the
United Kingdom, among others.


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

AGRICULTURAL BANK: China to Inject US$40 Billion to Fund Reform
---------------------------------------------------------------
China is set to allot US$40 billion to bail out Agricultural
Bank of China, known to be the weakest of the country's big four
commercial banks, media reports say, citing a report from The
Economic Observer.

The Observer said that the funding will come from China's new
forex investment agency, which will manage part of the country's
foreign exchange reserves of more than US$1.33 trillion.

A month ago, the report recalled, China's legislature authorized
the Ministry of Finance to issue CNY1.55 trillion (US$200
billion) in special treasury bonds to fund the setting up of the
forex agency.

The foreign investment agency would then use US$65 billion to
take over Central Huijin, the central bank's investment arm that
would conduct the planned US$40 billion injection into
Agricultural Bank, The Observer said.

The report gave no further details, and Agricultural Bank
officials were unavailable for comments, China Daily says.


The Agricultural Bank of China -- http://www.abocn.com/-- is  
the mainland's fourth largest bank.  It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.

Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.

The Troubled Company Reporter-Asia Pacific reported on June 27,
2006, that the National Audit Office found accounting
irregularities in the bank involving CNY51.6 billion --
CNY14.27 billion of which come from deposit business,
CNY27.62 billion from loan grants, and CNY9.72 billion from
fraudulent bill issuance.

The bank carries Fitch Ratings' Individual strength rating of
'E'.

On May 4, 2007, Moody's Rating Agency implemented its new BFSR
methodologies and affirmed Agricultural Bank of China's Bank
Financial Strength Rating at E.


ASAT HOLDINGS: Taps Peter Tin as Senior VP of Quality Dept.
-----------------------------------------------------------
ASAT Holdings Limited appointed Peter Tin as senior vice
president of quality and reliability assurance, replacing Ed
Bedell who resigned to pursue other opportunities.

Mr. Tin previously served as ASAT's vice president of quality
from 2004 to 2005 prior to ASAT moving its manufacturing to
China.  During this time he was responsible for setting up the
quality systems at ASAT China and instrumental in maintaining
quality systems control during the transition.

"We are pleased Peter has rejoined ASAT and look forward to his
leadership in the quality control area as we develop our
operations in China," said Tung Lok Li, acting chief executive
officer of ASAT Holdings Limited.

Over the span of his more than 20 year career, Mr. Tin has held
engineering, supplier management, reliability and quality
positions in semiconductor, consumer electronics and
transportation industries in the United States and Greater
China.  He most recently was a member of the management team of
Philips Consumer Electronics in the Business Groups of Mobile
Infotainment and Mobile Phones based in Hong Kong.  Mr. Tin has
also held various quality and reliability management positions
with SanDisk, Western Digital, Bombardier Transportation, and
National Semiconductor.

Mr. Tin holds a master's of science degree in reliability
engineering, and separate bachelor's of science degrees in
aerospace and mechanical engineering from the University of
Arizona.  Mr. Tin is a Six Sigma blackbelt and is also a
Certified Reliability Engineer and Certified Quality Engineer by
the American Society for Quality.


ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/--  
is a global provider of semiconductor package design, assembly
and test services.  With more than 17 years of experience, the
Company offers a definitive selection of semiconductor packages
and world-class manufacturing lines.

ASAT's advanced package portfolio includes standard and high
thermal performance ball grid arrays, leadless plastic chip
carriers, thin array plastic packages, system-in-package and
flip chip.  ASAT was the first company to develop moisture
sensitive level one capability on standard leaded products.  The
Company has operations in the United States, Asia and Europe.    
Its Asian presence is in Hong Kong and China.

On Aug. 3, 2007, the TCR-AP reported that Standard & Poor's
Ratings Services lowered its long-term corporate credit rating
on ASAT Holdings Ltd. to 'D' from 'CCC'.  At the same time, it
lowered the issue rating on US$150 million 9.25% senior notes
due 2011 to 'D' from 'CCC'.

The notes were issued by New Asat (Finance) Ltd. and guaranteed
by ASAT.
     
The downgrades are based on ASAT's announcement on Aug. 1, 2007
that it did not make the semi-annual interest payment on its
9.25% senior notes.

In addition, Moody's Investors Service downgraded the corporate
family rating of ASAT Holdings Ltd to Ca from Caa1.

At the same time, Moody's also downgraded to Ca from Caa1 the
senior unsecured rating for New ASAT (Finance) Limited's US$150
million in senior notes, maturing in 2011, which are guaranteed
by ASAT. The outlook for both ratings is negative.


FIAT SPA: Inks Deal to Acquire Car Parts Supplier Ergom Holding
---------------------------------------------------------------
Fiat S.p.A. is acquiring the entire share capital of Ergom
Holding S.p.A. for a "symbolic" price, Thomson Financial
reports.

The acquisition is subject to due diligence clearance from
antitrust.  Fiat expects to complete the takeover in September,
Thomson Financial reports.

Ergom, which supplies car shelves and fuel tanks to Fiat,
employs 4,000 people at 11 sites in Italy, France, Brazil,
Poland, and Turkey, Thomson Financial relates citing an industry
source.  The supplier has sales of EUR540 million, 80% of which
were to Fiat.

Thomson Financial's source revealed that Ergom is in a
"financial crisis" and owes money to Fiat.  The source added
that full details on Ergom's finances will be released by the
end of September after Fiat completes the due diligence process.

According to the source, Thomson Financial reports, Fiat
considers its acquisition of Ergom as strategic, since it would
guarantee the supply of components.

                         About Fiat SpA

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.

                          *     *     *

As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term
Corporate Family Rating of Ba2 and Probability of Default Rating
at Ba2 with Outlook Positive.

Standard & Poor's give Long-Term Foreign and Local Issuer Credit
Ratings of BB+ for Fiat.  Its Short-term Foreign and Local
Issuer Credit Ratings are at B with Positive Outlook.

Dominion Bond Rating Service gives Fiat a Long-term Issuer
Rating of BB with Positive Outlook.


EMI GROUP: Moody's Cuts Corp. Family & Sr. Debt Ratings to B1
-------------------------------------------------------------
Moody's Investors Service downgraded EMI Group plc's corporate
family and senior debt ratings to B1 (from Ba3).  All ratings
remain under review for downgrade.

The rating action follows the announcement that the cash offer
for EMI made by Maltby Limited (Maltby; a company formed at the
direction of private equity firm Terra Firma Capital Partners
Limited) in May 2007 which placed an enterprise value of GBP3.2
billion on EMI, has been accepted by 90.3% of shareholders of
the company and that the bid has been declared unconditional as
to acceptances.  The transaction is scheduled to close in the
third calendar quarter.  Maltby has indicated that it will use a
mixture of equity and debt to fund its bid.  While details of
the funding structure have not been disclosed, Moody's would
expect the company's already considerable debt load to increase
visibly.  EMI's Debt/EBITDA leverage ratio as measured by
Moody's was 7.7 times for the financial year ended March 31
2007.

Ratings downgraded to B1 (under review for further downgrade)
are:

EMI Group plc

   -- CFR and the ratings of the 8.25% GBP bonds due 2008 and
      the 8.625% Euro notes due 2013

Capitol Records Inc. (gtd. by EMI Group plc)

   -- the rating of the 8.375% guaranteed notes due 2009.

All ratings remain under review for possible downgrade.  Maltby
has not yet signaled whether any of the rated instruments are
expected to form part of EMI's capital structure to the extent
they remain outstanding under their terms.

Moody's ongoing review will now be focused on :

   (i) the new entity's capital structure and financial policies

  (ii) the relative position of the rated instruments within the
       new capital structure and their relative ranking amongst
       each other and relative to other classes of debt (to the
       extent they remain outstanding) and

(iii) the outlook for the global music markets and the
       company's operational plans.

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


PARKSON RETAIL: Won't Take Over Lion Diversified's Stores
----------------------------------------------------------
Parkson Retail Group's independent non-executive directors have
approved a non-exercise proposal made by its controlling
shareholder, Lion Diversified Holdings Berhad, in July 2007
regarding non-exercise of a deed of non-competition, Infocast
News relates.  

Pursuant to the deed, in 2005, Lion granted to Parkson a call
option and a right of first refusal to acquire six managed
stores and an undertaking not to compete with Parkson's business
in China, the report says.

Lion Diversified, according to Infocast, disclosed with the the
Bursa Malaysia Securities Bhd in Sept. 2006, saying it will
undertake a reorganization scheme involving the transfer of its
retail assets in Malaysia, Vietnam and the China -- which
includes the six managed stores -- to East Crest International
Limited (ECIL), a wholly owned subsidiary of Amalgamated
Containers Berhad.

Both Lion Diversified and Amalgamated Containers are member
companies of the Lion Group.  

In order to facilitate its reorganization scheme, Lion
Diversified has requested Parkson to approve its non-exercise
proposal, Infocast notes.

According to Infocast, Parkson's independent non-executive
directors approved LDHB's non-exercise proposal because:

   1. if Parkson were to elect to exercise its right of first
      refusal, Parkson would also be required to purchase the
      retail assets in Vietnam and Malaysia, and this does not
      correspond with its future business strategy set out in
      its prospectus;

   2. some of the managed stores are currently making losses
      and Parkson has no intention to acquire those assets at
      this juncture as it might affect the overall performance
      of the Parkson group; and

   3. ECIL and ACB have agreed to assume LDHB's obligations
      under the deed of non-competition - Parkson will be in
      exactly the same position after the completion of LDHB's
      reorganization scheme as it is currently.


Parkson Retail Group Limited is listed on the Hong Kong Stock
Exchange.  It is one of the largest national retailers in China,
operating 23 self-owned and 15 managed stores in over 26 cities.   
For the year ended 2005, revenues were CNY1.2 billion while net
income was CNY248 million.

On Dec. 4, 2006, Moody's Investors Service affirmed Parkson
Retail Group Ltd's Ba1 senior secured bond rating following the
successful closing of its US$200 million bond issuance.  The
rating's provisional status was removed.  The rating outlook is
stable.

On Nov. 8, 2006, Standard & Poor's assigned its BB long-term
corporate credit rating to Parkson Retail Group Ltd.  The
outlook is stable.

On May 24, 2007, the Troubled Company Reporter-Asia Pacific
reported that Moody's Investors Service assigned a Ba1 rating to
the 5-year US$125 million bond to be issued by Parkson Retail
Group Ltd.  At the same time, Moody's has affirmed the company's
Ba1 issuer rating.  The outlook for both ratings is stable.


* SAIC and Nanjing Auto's Merger to Benefit Both, Fitch Says
------------------------------------------------------------
Fitch Ratings said that the potential partnership between
Shanghai Automotive Industry Corporation and Nanjing Automobile
Corporation would set a good trend towards much-needed
consolidation in the fragmented Chinese automotive sector,
although the talks are expected to be tough and run the risk of
failing.  If the talks succeed, the alliance will help the two
Chinese automakers achieve synergies and stronger positions in
the competitive domestic auto market.

According to a statement released by SAIC, Yuejin Group (the
parent company of Nanjing Auto) and SAIC signed a letter of
intent regarding an alliance on July 27, in which both parties
agreed to form a joint working group to discuss the
possibilities of comprehensive and strategic cooperation on
business areas ranging from vehicle manufacturing to auto parts
and services.  The statement also indicates that both auto
companies will talk about asset reorganization and will assess
the potential for a comprehensive consolidation, though no
details were presented.

"Despite this being a preliminary agreement between the two
Chinese automakers, it is a step in the right direction.  The
talks also signal that these firms may attempt to give up going
head-to-head with their own car brands, which have been
developed from the same technology, and move closer towards a
partnership for greater efficiency and synergy," said Matthew
Kong, Associate Director with Fitch's Asia-Pacific Corporates
group.  The two companies once competed against each other in
bidding for the collapsed British carmaker MG Rover Group and
its engine producer, Powertrain Ltd.

SAIC ultimately purchased the technologies of Rover's 25 and 75
models and their engines, while Nanjing Auto outbid SAIC to
acquire the remaining assets, including the MG brand division
and Powertrain Ltd.

Currently, both SAIC and Nanjing Auto have launched new car
models based on technologies from the MG Rover Group, which has
triggered a call for cooperation instead of rivalry.  "Apart
from reductions in investment, the tie-up will greatly
strengthen the presence of SAIC in the commercial vehicle
segment, which is the forte of Nanjing Auto.  For Nanjing Auto,
a partnership with the largest Chinese automaker could give a
boost to its capital, management and talent base," Mr Kong
added.

Fitch also views the potential tie-up as a significant step
forward in industry consolidation. China has become the second
largest country in terms of auto production; however, there are
still around 150 auto manufacturers in the industry, most of
which are of modest scale.  Although consolidation is much-
needed in such a fragmented structure, the pace is quite slow.  
Most automakers are state-owned, and local governments are
reluctant to push cross-border mergers or acquisitions in fear
of loss of control over management, as well as corporate taxes
and employment opportunities.

Given the status of SAIC and Nanjing Auto as state-owned
companies, the agency believes that the central government and
local governments have played a key role in encouraging the
talks with the aim of pushing the two firms towards developing
their own brand of cars jointly, and to reduce margin pressure
resulting from fierce competition.  If both SAIC and Nanjing
Auto reach final agreement on a merger, there would emerge a
local, giant auto producer in China with annual sales of 2
million vehicles by 2010; this may eventually change the
competitive dynamics of the industry.  Therefore, the success of
the talks could also encourage similar deals in the future.

However, Fitch notes that the two companies have not yet touched
on key issues such as shareholding structure and asset transfer;
these issues should be negotiated in the next stage of talks.  
Although the statement did not offer any details about the tie-
up, Fitch views that a passenger car JV could be an option in
the initial period, in which both parties inject their own car
brands and related auto-parts businesses.  The agency expects
SAIC to take a larger stake in the JV rather than a 50/50
structure, given its stronger position and expertise in the
passenger car segment.  However, Fitch cautions that the talks
may not lead to a partnership if both parties cannot reach final
agreement on these sensitive key issues.  In Fitch's view,
strong will and resolution are prerequisites to forming an
alliance, in addition to the ability to compromise.


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

BAUSCH & LOMB: Buys Soothe(R) Emollient Eye Drops from Alimera
--------------------------------------------------------------
Bausch & Lomb has acquired Soothe emollient (lubricant) eye
drops from Alimera Sciences, a privately-held ophthalmic
pharmaceutical company.  Financial terms were not disclosed.

Bausch & Lomb will expand upon the Soothe brand's success,
establishing a broader line of professionally-recommended, over-
the-counter products to relieve dry eye symptoms.  The company
will initially focus on two technologies, each designed to
target a different layer of the tear film.

Introduced in 2004, Soothe -- now renamed Soothe XP -- was the
first over-the-counter multi-dose, emollient-based (lubricating)
artificial tear product, offering relief to an estimated 12
million Americans who suffer from dry eye.  The Soothe XP
formulation is unique in that it re-establishes the eye's
protective lipid layer, reducing tear evaporation and sealing in
essential moisture, providing up to eight hours of relief from
dry eye discomfort.  This advanced formula is a meta-stable oil-
in-water emulsion -- a combination of oils (Restoryl(R) mixture)
and a key interfacial molecule -- developed after years of
research into replicating the lipid layer of the tear film.

Bausch & Lomb has also begun shipping a new over-the-counter
formulation, Soothe Lubricant Eye Drops Long Lasting Relief
Preservative Free.  In an innovative approach to relieving dry
eye, this formulation uses a novel hydrophilic polymer to
interact with the eye's mucin layer.  The polymer-mucin
interaction stabilizes and rebuilds the tear film by forming a
scaffolding system, allowing water and the product's demulcent
active ingredients to be retained on the cornea.

This transaction follows Bausch & Lomb's December 2006 purchase
of Alimera's OTC allergy franchise, including AlawayTM
(ketotifen fumarate ophthalmic solution) antihistamine eye drops
indicated for up to 12 hours of relief for itchy eyes due to
ragweed, pollen, grass, animal hair and dander.

"We are pleased that Bausch & Lomb is committed to advancing the
growth of the Soothe line, which has been an excellent addition
to the market and a good performer for us," said Dan Myers,
president and chief executive of Alimera.  "This sale
strengthens our cash position, enabling stronger investment and
focus behind our strategy of improving the delivery of ocular
therapeutics."

"Our pharmaceutical business continues to grow, due in part to
the expansion of our OTC product lines," said Gary Phillips,
M.D., corporate vice president and global pharmaceutical
category leader for Bausch & Lomb.  "The Soothe brand
acquisition further strengthens our portfolio, and provides a
first-rate platform for further line extensions in this fast-
growing segment of the ophthalmic industry."

Soothe products will be widely available at retail stores across
the United States, with the potential for future international
distribution.  Packaging will be changed to reflect Bausch &
Lomb branding on a stock turnover basis, beginning immediately.

Alimera's complete divestiture of its over-the-counter portfolio
marks the company's increased focus on improving the delivery of
therapeutic agents to enhance patients' and physicians' ability
to manage ocular conditions -- in particular, fluocinolone
acetonide (FA) in the MedidurTM delivery technology, an
investigational product for the treatment of diabetic macular
edema (DME).  Alimera Sciences and pSivida Limited (NASDAQ:PSDV,
ASX:PSD, Xetra:PSI) have a worldwide agreement to co-develop and
market FA in Medidur to treat DME.  In April, Alimera and
pSivida announced that Phase 3 global clinical trial enrollment
for Medidur had exceeded 500 patients.

                      About Alimera Sciences

Alimera Sciences Inc. -- http://www.alimerasciences.com/-- a  
venture backed company, specializes in the development and
commercialization of over-the-counter and prescription
ophthalmology pharmaceuticals.  Founded by an executive team
with extensive development and revenue growth expertise, Alimera
Sciences' products are focused on improving the delivery of
therapeutic agents to enhance patient's lives and to strengthen
physicians' ability to manage ocular conditions.

                       About Bausch & Lomb

Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:
BOL) -- http://www.bausch.com/-- develops, manufactures, and  
markets eye health products, including contact lenses, contact
lens care solutions, and ophthalmic surgical and pharmaceutical
products.  The company is organized into three geographic
segments: the Americas; Europe, Middle East, and Africa; and
Asia (including operations in India, Australia, China, Hong
Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan
and Thailand).  In Latin America, the company has operations in
Brazil and Mexico.  In Europe, the company maintains operations
in Austria, Germany, the Netherlands, Spain, and the United
Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on July 12, 2007,
Standard & Poor's Ratings Services said its 'BB+' corporate
credit and senior secured ratings on Bausch & Lomb Inc. remain
on CreditWatch with negative implications in light of the July
5, 2007 acquisition bid by Advanced Medical Optics Inc.

As reported in the Troubled Company Reporter on May 18, 2007,
Moody's Investors Service stated that it will continue its
review of Bausch & Lomb Incorporated's ratings for possible
downgrade following the announcement that the company has
entered into a definitive merger agreement with affiliates of
Warburg Pincus.

Ratings subject to review for possible downgrade include the
company's Ba1 Corporate Family rating and Ba1 Probability of
Default rating.

In addition, the Warburg Pincus deal prompted Fitch to maintain
its Negative Rating Watch on the company.  Fitch also warned
that the transaction would significantly increase leverage and
likely result in a multiple-notch downgrade, including an
Issuer Default Rating of no higher than 'BB-'.


BRISTOW GROUP: First Quarter Net Earnings Increase by 31.6%
-----------------------------------------------------------
Bristow Group Inc. disclosed its financial results for its
fiscal 2008 first quarter ended June 30, 2007.  The company
posted revenue of US$245.0 million, which increased by 10.8
percent over the first quarter of fiscal year 2007.  Revenue
gains occurred in most of the company's business units, driven
by improved pricing and the addition of new aircraft.

Operating income of US$29.9 million decreased by 3.8 percent
over the first quarter of fiscal year 2007, primarily due to
higher compensation and maintenance costs within our West Africa
and Eastern Hemisphere (EH) Centralized Operations business
units, partially offset by increased revenue;

The company earned US$22.7 million, an increased of 31.6 percent
versus net income for the first quarter of fiscal year 2007.  
Increases in earnings from unconsolidated affiliates, interest
income and other income contributed to the improvement in the
latest quarter's net income.

                      Capital and Liquidity

The June 30, 2007 consolidated balance sheet reflected
US$902.9 million in stockholders' investment and
US$561.3 million of indebtedness.

The company had US$339.5 million in cash and an undrawn
US$100 million revolving credit facility.

The company used US$2.3 million of cash for operating
activities, which included a US$29.9 million increase in
receivables, primarily from operations in Nigeria.  It has
received payment for a majority of these Nigeria receivables in
July.  It also used US$121.8 million for capital expenditures,
primarily for aircraft, and US$12.9 million for the acquisition
(net of cash acquired) of Bristow Academy during the first
quarter of fiscal year 2008.

Aircraft purchase commitments totaled US$255.0 million, with
options totaling US$732.9 million as of June 30, 2007.

William E. Chiles, President and Chief Executive Officer of
Bristow Group Inc., said, "We saw strong financial performance
and good execution against our strategic plan during the latest
quarter, and we remain on target with our plan to expand our
fleet and improve overall margins and operating efficiencies.  
The industry fundamentals continue to be very strong, and our
customers remain committed to field development plans, which is
the primary driver of our growth.  The company continues to
believe demand for aircraft will exceed supply over the next
several years, which should create good opportunities to enhance
revenue and margin growth going forward."


Headquartered in Houston, Texas, Bristow Group, Inc. --
http://www.bristowgroup.com-- (NYSE:BRS), fka Offshore
Logistics, Inc., provides helicopter transportation services to
the worldwide offshore oil and gas industry with operations in
the United States Gulf of Mexico and the North Sea. The Company
also has operations, both directly and indirectly, in offshore
oil and gas producing regions of the world, including Australia,
Brazil, China, India, Mexico, Nigeria, Russia and Trinidad.  The
Company also provides production management services for oil and
gas production facilities in the United States Gulf of Mexico.

                          *     *     *

As reported in the Troubled Company Reporter on June 6, 2007,
Standard & Poor's Ratings Services assigned its 'BB' rating to
helicopter service company Bristow Group Inc.'s US$250 million
senior notes due 2017.  At the same time, Standard & Poor's
affirmed the 'BB' corporate credit rating and all other ratings
on the company.  S&P said the outlook is negative.


DELHI GURGAON: CARE Cuts Non Convertible Debenture Rating to 'D'
----------------------------------------------------------------
Credit Analysis & Research Ltd, on Aug. 1, 2007, has downgraded
the rating of the outstanding Non Convertible Debenture
aggregating INR78.3 crore of Delhi Gurgaon Super Connectivity
Ltd.  The downgrade in rating follows the company's failure to
meet its obligations towards its creditors on the due date.

The rating has been downgraded from 'CARE BB' [Double B]
(indicating inadequate safety for timely servicing of debt
obligations) to 'CARE D' [Single D] for its non convertible
debentures programme.  Instruments with this rating are of the
lowest category.  They are either in default or are likely to be
in default soon.


DRESSER-RAND: Earns US$26.2 Million in Second Quarter 2007
----------------------------------------------------------
Dresser-Rand Group Inc. reported net income of US$26.2 million
for the second quarter 2007.  This compares to a net income of
US$10.7 million for the second quarter 2006.

Second quarter 2007 income included a provision for litigation
and related interest of US$4.2 million (US$2.6 million after-tax
or US$0.03 per diluted share) and a charge of US$ 2.3 million
(US$1.5 million after-tax or US$0.02 per diluted share) related
to a change in an accounting estimate for workers' compensation.

"The improvements in our second quarter 2007 results over last
year were somewhat tempered by the litigation provision and a
change in accounting estimate," Vincent R. Volpe, Jr., President
and Chief Executive Officer of Dresser- Rand, said.  "The impact
of these two items was approximately US$0.05 per diluted share.  
Additionally, changes in procurement processes and a delay in
the budget appropriations by certain of our national oil company
clients resulted in lower than expected aftermarket bookings and
revenues for the period.  Total revenues increased 4%, operating
income increased 14%, and our backlog grew 59% over the year ago
period.  New unit bookings were strong as the upstream,
midstream and downstream markets remain very active, with the
most notable order coming for a floating, production, storage
and offloading project for British Petroleum for approximately
US$154 million.

Total revenues for the second quarter 2007 of US$441.2 million
increased US$17.2 million or 4% compared to US$424 million for
the second quarter 2006.  Total revenues for the six months
ended June 30, 2007 of US$755.6 million increased
US$40.1 million or 6% compared to US$715.5 million for the
corresponding period in 2006.

Operating income for the second quarter 2007 was
US$50.1 million.  This compares to operating income of
US$27.2 million for the second quarter 2006 which included
US$16.8 million for stock-based compensation expense for exit
units.  Second quarter 2007 operating income increased from the
year ago quarter due to higher pricing and productivity
improvements.  Operating income for the six months ended
June 30, 2007 was US$83 million.  This compares to operating
income of US$57.4 million for the corresponding period in 2006,
which included a net charge of US$5 million comprised of the
US$16.8 million for stock-based compensation expense for exit
units partially offset by a US$12 million curtailment gain.  
Operating income increased from the year ago six-month period
primarily due to higher pricing.

As of June 30, 2007, cash and cash equivalents totaled
US$160.8 million and borrowing availability under the
US$350 million revolving credit portion of the company's senior
credit facility was US$147.5 million, as US$202.5 million was
used for outstanding letters of credit.

In first six months of 2007, cash provided by operating
activities was US$136.2 million, which compared to
US$6.9 million for the corresponding period in 2006.  The
increase of US$129.3 million in net cash provided by operating
activities was principally from changes in working capital.  In
the first six months of 2007, capital expenditures totaled
US$8.6 million and the company prepaid US$110.1 million of its
outstanding indebtedness under its senior secured credit
facility.  As of June 30, 2007, total debt was US$396.9 million
and total debt net of cash and cash equivalents was
approximately US$236.1 million.

In July 2007, the company prepaid the remaining US$26.8 million
of outstanding indebtedness under its senior secured credit
facility.

                        About Dresser-Rand

Headquartered in Houston, Texas, Dresser-Rand Group Inc. (NYSE:
DRC) is a supplier of rotating equipment solutions to the
worldwide oil, gas, petrochemical, and process industries.  It
operates manufacturing facilities in the United States, France,
Germany, Norway, India, and Brazil, and maintains a network of
24 service and support centers covering 105 countries.

                          *     *     *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


DRESSER-RAND: Supplying NatGas Compression Unit to P-18 Oil Rig
---------------------------------------------------------------
Dresser-Rand said in a statement that it will supply the natural
gas compression unit to Brazil's state-run oil firm Petroleo
Brasileiro SA's P-18 oil rig in the Campos basin's Marlin field.

Business News Americas relates that the agreement is estimated
at over US$11 million.  It would be signed in August.

Dresser-Rand told BNamericas that it "developed a separation and
centrifugal compression technology that allows a reduction in
the size and weight of the required compression equipment."

Dresser-Rand also supplied compression systems to the P-53
floating production, storage and offloading vessel in the Marlim
field, BNamericas states.

                    About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp  
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, 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.

                        About Dresser-Rand

Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries.  It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.

                        *     *     *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


EASTMAN KODAK: Earns US$592 Million in Quarter to June 30, 2007
---------------------------------------------------------------
Eastman Kodak Company reported on Thursday its financial results
for the second quarter ended June 30, 2007.

Eastman Kodak reported net income of US$592 million for the
quarter ended June 30, 2007, compared with a net loss of
US$282 million for the same period last year.   

Results for the quarters ended June 30, 2007, and 2006, included
total company earnings from the discontinued operations of the
company's Health Group segment to Onex Healthcare Holdings Inc.
on April 30, 2007, of US$727 million (including a pre-tax gain
on sale of US$980 million) and US$73 million, respectively.  

The company reported a US$121 million year-over-year improvement
in pre-tax results from continuing operations, reflecting gross
profit margin improvements across all of its major business
units.  The company achieved a US$97 million improvement in
digital earnings and a US$31 million improvement in traditional
earnings, as expenses declined.  In addition, the company
reported a US$135 million after-tax loss from continuing
operations, an improvement of US$220 million, as compared to the
prior year.

Kodak also reaffirmed its plan to achieve its full-year
financial goals for net cash generation, digital revenue growth
and digital earnings.

"Our second-quarter results reinforce our confidence in our
full-year performance," said Antonio M. Perez, chairman and
chief executive officer, Eastman Kodak Company.  "Revenues
during the second quarter were in line with our expectations.  
Earnings improved across all of our major business units,
reflecting our strong focus on cost reduction and operational
efficiencies.  We continue to expect a strong second half, with
double-digit sales growth in both of our major digital
businesses, driven by a stronger-than-ever portfolio of digital
products, including our revolutionary consumer inkjet printing
system, new image sensors, workflow software, and an expanded
line of NEXPRESS digital color printing presses.  I'm pleased
with our first-half results, and I remain confident in our
ability to achieve our 2007 key strategic objectives."

On the basis of generally accepted accounting principles in the
U.S. (GAAP), the company reported a second-quarter loss from
continuing operations of US$173 million pre-tax, US$135 million
after tax, compared with a loss of US$294 million pre-tax,
US$355 million after tax in the year-ago period.  Items of
expense impacting comparability in the second quarter of 2007
totaled US$266 million after tax.  The most significant item was
restructuring costs of US$316 million before tax and US$248
million after tax.  In the second quarter of 2006, items that
impacted comparability totaled US$206 million after tax
primarily reflecting restructuring costs.

For the second quarter of 2007:

  -- Sales totaled US$2.510 billion, a decrease of 7% from
     US$2.688 billion in the second quarter of 2006.  Digital
     revenue totaled US$1.460 billion, a 3% increase from
     US$1.417 billion.  Traditional revenue totaled
     US$1.044 billion, a 17% decline from US$1.262 billion in
     the year-ago quarter.

  -- The company's second-quarter loss from continuing
     operations, before interest, other income (charges), net,
     and income taxes was US$163 million, compared with a loss
     of US$257 million in the year-ago quarter.

Other financial details:

  -- Gross Profit margin was 26.2% for the quarter, up from
     21.4% in the prior year, primarily attributable to lower
     costs, driven by manufacturing footprint reductions and the
     favorable impact of foreign exchange, offset by adverse
     silver and aluminum costs.

  -- Selling, General and Administrative expenses decreased
     US$87 million from the year-ago quarter, reflecting the
     company's cost reduction activities.  SG&A as a percentage
     of revenue was 17%, down from 19% in the year-ago quarter.

  -- Net Cash Generation for the second quarter was negative
     US$251 million, compared with negative US$74 million in the
     year-ago quarter.  Net Cash Generation for the first half
     of 2007 was negative US$704 million, compared with negative
     US$691 million in the year-ago period.  This corresponds to
     net cash used in operating activities from continuing
     operations of US$298 million for the second quarter,
     compared with US$17 million in the year-ago quarter, driven
     primarily by changes in working capital.  For the first
     half of 2007, net cash used in operating activities from
     continuing operations was US$695 million, compared with
     US$554 million in the year-ago period.  

  -- On April 30, 2007, the company completed the sale of its
     Health Group to an affiliate of Onex Corporation for
     US$2.350 billion.  As previously announced, the company
     used a portion of the cash proceeds from that transaction
     to fully repay US$1.145 billion of outstanding secured term
     debt.  As of June 30, 2007, the company's debt level was
     US$1.624 billion, a US$1.154 billion reduction from the
     2006 year-end debt level of US$2.778 billion.

  -- Kodak held US$1.925 billion in cash and cash equivalents as
     of June 30, 2007.

                     2007 Outlook Reaffirmed

Kodak remains focused on three financial metrics as it continues
to transform its business: net cash generation, digital earnings
from operations and digital revenue growth.

The company's goal for net cash generation this year is in
excess of US$100 million after restructuring disbursements of
approximately US$600 million.  This outlook corresponds to
expected net cash provided by continuing operations from
operating activities, on a GAAP basis, in the range of US$200
million to US$450 million.

Additionally, the company's goal for 2007 full-year digital
earnings from operations is US$150 million to US$250 million,
which corresponds to a GAAP loss from continuing operations
before interest, other income (charges), net, and income taxes
for the full year of US$550 million to US$650 million.

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

At June 30, 2007, the company's consolidated balance sheet
showed US$13.074 billion in total assets, US$10.582 billion in
total liabilities, and US$2.492 billion in total stockholders'
equity.


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

The company has operations in India, Australia, China, Denmark,
Greece, Hong Kong, Japan, Korea, Malaysia, New Zealand,
Philippines, Singapore, Taiwan and Thailand.

                          *     *     *

As reported in the Troubled Company Reporter on May 18, 2007,
Fitch Ratings upgraded Eastman Kodak Company's senior
unsecured debt to 'B/RR4' from 'B-/RR5' due to improved recovery
prospects following the company's redemption on May 3, 2007, of
a US$1.15 billion secured term loan funded with a portion of the
proceeds from the sale of its Health Group to Onex Healthcare
Holdings, Inc., for US$2.35 billion on April 30, 2007.

In addition, Fitch has affirmed these Kodak ratings:

     -- Issuer Default Rating 'B';
     -- Secured credit facility 'BB/RR1'.


IMPERIAL CHEMICAL: Akzo Talks Continue Over Revised Takeover Bid
----------------------------------------------------------------
Imperial Chemical Industries plc is currently conducting "very
cordial" talks with Akzo Nobel, after the Dutch company raised
its offer for ICI, the Telegraph reports.

The TCR-Europe reported on Aug. 2, 2007, that Akzo Nobel NV had
submitted a further indicative proposal, under which it
would acquire ICI for 650 pence per share in cash
(GBP7.8 billion).  The Company's Board considered this revised
proposal and unanimously rejected it on the grounds that it
failed to recognize the full strategic value of ICI.

"You can have discussions about value without opening the
books," the Telegraph quotes ICI CFO Alan Brown as saying.  ICI
has not granted Akzo access to due diligence information.

ICI's pension deficit has been cut to GBP721 million, little
more than half the GBP1.3 billion at the end of last year, the
Telegraph reveals.

                            About ICI

Headquartered in London, England, Imperial Chemical Industries
Plc -- http://www.ici.com/-- is a major paints, adhesives and  
specialty products business with products and ingredients
developed for a wide range of markets.

The company has a number of Regional and Industrial businesses
in Argentina, India and Pakistan.  It has around 26,000
employees and had sales in 2006 of GBP4.8 billion.

At Dec. 31, 2006, the company's balance showed GBP4.29 billion
in total assets, GBP4.48 billion in total liabilities and
GBP189 million in stockholders' deficit.


IMPERIAL CHEMICAL: Net Profit Rises 22% to GBP121MM in 2Q 2007
--------------------------------------------------------------
Imperial Chemical Industries plc reported a 22% growth in Group
adjusted net profit to GBP121 million for the second quarter
ended June 30, 2007, compared with GBP99 million for the same
period in 2006.  Adjusted profit before tax also increased by
12%.

ICI's sales for continuing operations experienced a 4%
comparable growth while Group trading profit for continuing
operations had a 12% comparable growth in the second quarter.  
Group adjusted profit before tax increased 13% to GBP154
million.

ICI's adjusted profit before tax for the first half of 2007 grew
12% to GBP255 million compared with GBP228 million in 2006.  Net
profit after special items attributable to ICI equity holders
rose to GBP1,055 million from GBP80 million in 2006, including
the GBP908 million profit from the sale of Quest.

"The second quarter has continued our strong start to 2007,
despite additional raw material cost increases for our adhesives
business," said ICI CEO John McAdam.  "Trading conditions
remained buoyant in Asia, Latin America and Continental Europe.  
As expected, North America was mixed with weak construction
markets, although we continued to reduce costs and improve
returns in the Decorative Paint business.  The efficiency
benefits of our transformation programme contributed to an
improvement in trading margins."

"The outlook for the year as a whole remains positive; although
visibility beyond the next quarter is limited, our expectations
for the balance of the year remain unchanged," Mr. McAdam added.

                            About ICI

Headquartered in London, England, Imperial Chemical Industries
Plc -- http://www.ici.com/-- is a major paints, adhesives and  
specialty products business with products and ingredients
developed for a wide range of markets.

The company has a number of Regional and Industrial businesses
in Argentina, India and Pakistan.  It has around 26,000
employees and had sales in 2006 of GBP4.8 billion.

At Dec. 31, 2006, the company's balance showed GBP4.29 billion
in total assets, GBP4.48 billion in total liabilities and GBP189
million in stockholders' deficit.


LML LIMITED: Incurs INR112.5MM Net Loss in April-June 2007 Qtr.
---------------------------------------------------------------
Despite enhanced revenues, LML Limited posted a net loss of
INR112.5 million for the three months ended June 30, 2007.  The
bottom line for the reporting period, however, is an improvement
compared to the INR133.2-million loss booked in the same quarter
in 2006.

Compared to the April-June 2006 quarter, the current reporting
period's total income more than doubled to INR232.2 million.  
The company has achieved significant improvement in its
performance and has also emerged as the biggest exporter of
scooters in India, LML noted in its recent quarterly financial
results filed with the Bombay Stock Exchange.

The company's operating expenditures rose by 40% to
INR241.8 million while interest charges and depreciation showed
minimal changes.

A copy of the company's financial results for the quarter ended
June 30, 2007, is available for free at:

               http://ResearchArchives.com/t/s?2224

Headquartered in Kanpur, India, LML Limited manufactures
scooters and motorcycles.  The LML NV, manufactured with
Piaggio, is a scooter that is loaded with features such as a
large taillight, cushioned backrest, improved handlebar design
and speedometer, a utility box and a large glove compartment.
The Company's motorcycles, which are made in collaboration with
Daelim of Korea, feature a three-valve, 109-cubic centimeter
engine, a long wheelbase and broad tires.  The Energy FX model
features a four-speed gearbox, while the Adreno FX sports a
five-speed unit.  The bikes come in a large variety of colors
offer other features such as disc brakes and electronic
ignition.

LML'S board of directors, at a meeting on Sept. 8, 2006, decided
that the company has become a sick industrial company under the
Sick Industrial Companies (Special Provisions Act) 1985.  The
company is currently working for the restructuring of its
business.


LOK HOUSING: Earns INR215 Million in Qtr. Ended June 30, 2007
-------------------------------------------------------------
In the three months ended June 30, 2007, Lok Housing and
Constructions Ltd posted a net profit of INR215.07 million, down
by 36% from the INR293.07-million earned in the same period in
2006.

Total income decreased by 43% to INR454.4 million in the April-
June 2007 quarter while expenditures sharply dipped to
INR79.2 million bringing the company an operating profit of
INR375.2 million.  

For the reporting period, the company incurred interest charges
of INR43.59 million, booked depreciation of INR53,000 and taxes
of INR116.01 million.

A copy of the company's financial results for the quarter ended
June 30, 2007, is available for free at:

               http://ResearchArchives.com/t/s?2223

Headquartered in Mumbai, India, Lok Housing and Constructions
Ltd constructs residential buildings.  Apart from housing
construction, the company manufactures concrete blocks catering
to in-house needs.  The company is also involved in the
construction of railway quarters, railway bridges and slum
rehabilitation programs through its associate companies.

Credit Rating Information Services of India Ltd, on June 27,
2007, reaffirmed its 'D' rating on Lok Housing's INR170-million
non-convertible debentures.  The rating continues to indicate
that the instrument is in default.  The arrears on interest and
principal payments have not been entirely cleared.


NICCO UCO: Net Loss Narrows to INR62.5MM in Qtr. Ended June 30
--------------------------------------------------------------
Nicco Uco Alliance Credit Ltd posted a net loss of
INR62.5 million in the quarter ended June 30, 2007, an
improvement compared to the INR112.8-million loss booked in the
same quarter last year.

The net loss narrowed despite decreasing revenues --
INR14.3 million in total income for the April-June 2007 quarter
compared to the INR32.4 million earned last year.

For the reporting period, the company booked interest charges of
INR69.6 million and operating expenses of INR4.1 million,
bringing the company an operating loss of INR59.4, just about
the same figure compared to that sustained in the April-June
2006 quarter.

Depreciation, however, slid to INR80,000 from last year's
INR7.5 million while provisions and contingencies suddenly
dipped to INR2.2 million compared to INR45.7 million booked in
the same period in 2006.

A copy of the company's financial results for the quarter ended
June 30, 2007, is available for free at:

                http://ResearchArchives.com/t/s?2217

Nicco Uco Alliance Credit Ltd is a small non-bank finance
company operating primarily in Eastern India.

Fitch Ratings, on June 18, 2007, downgraded the National Long-
term deposit rating of Nicco Uco Alliance Credit Ltd. to
'D(ind)' from 'C(ind)', and subsequently withdrew the rating.
Fitch will no longer provide rating coverage of NUACL.

The repayment of the rated fixed deposit programme had been
rescheduled by the Company Law Board on account of the
deteriorated financial state of NUACL.  Since then, the company
has stopped accepting deposits and has discontinued its fund
based activities.


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

ALCATEL-LUCENT: UBS Reaffirms Buy Rating on Firm's Shares
---------------------------------------------------------
UBS analysts have reaffirmed their "buy" rating on Alcatel-
Lucent's shares, Newratings.com reports.

Newratings.com relates that the target price was decreased to
EUR12 from EUR13.

The analysts said in a research note that though Alcatel-Lucent
reported its second quarter 2007 revenues ahead of expectations,
its margins were short of the consensus.

The analysts told Newratings.com that the loss was due to an
unfavorable geographic and product mix and the reinvestment of
the "COGS synergies" realized during the quarter.

The 2007 gross margin estimate for Alcatel-Lucent has been
reduced to 33.7%, while the 2008 estimate was decreased to
36.7%.  The earnings per share estimates for 2007 and 2008 were
reduced to EUR0.39 from EUR0.53 and to EUR0.99 from EUR1.08,
respectively, Newratings.com states.

                      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.  Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia,
Brunei and Cambodia.  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 reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.

As of Feb. 7, 2007, Moody's Investor Services 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.

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.


BANK DANAMON: Aims 50% Increase in Mortgage Lending
---------------------------------------------------
PT Bank Danamon Tbk aims to increase its mortgage lending by 50%
by the end of 2007, motivated by an improving economy, Reuters
reports.

According to the report, the bank expects its outstanding
mortgage loans to increase to IDR3 trillion by the end of this
year from around the current IDR2 trillion.

The Troubled Company Reporter-Asia Pacific reported on Aug 3,
2007, that Bank Danamon signed an agreement with 15 leading
Indonesian property developers, as a means of attaining growth
in its housing loans by the end of this year.  The bank expects
the agreement to raise its mortgage portfolio by a minimum of
50% from the IDR2 trillion it had already lent in the first half
in 2007, TCR-AP notes.

The report adds that Danamon's total loans rose 20% to
IDR46.4 trillion as of the end of June from a year ago, but the
growth in its mortgage loans had been largely flat over the
period.

                       About Bank Danamon

Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking.  Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services.  The bank also   
operates Danamon Simpan Pinjam, which caters to micro banking
customers.  DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income.  Bank Danamon is  
supported by 86 domestic branch offices, 325 domestic supporting  
branch offices, 25 domestic cash office, 739 supporting branches  
for DSP, six personal banking branch offices, 10 syariah branch  
offices and one overseas branch.

The Troubled Company Reporter-Asia Pacific reported on May 8,
2007, that Moody's Investors Service published the rating
results for Indonesia's PT Bank Danamon Indonesia Tbk as part of
the application of its refined joint default analysis and
updated bank financial strength rating methodologies.

The specific ratings changes are as follows:

      * BFSR is changed to D with a positive outlook from D-

         -- This action also concludes a review for possible
            upgrade on the BFSR initiated on July 4, 2006

      * Foreign Currency Deposit Ratings are unchanged at B2/Not
        Prime

      * Foreign Currency Debt Rating for subordinated
        obligations is unchanged at Ba3.

      -- Foreign Currency Deposit and Foreign Currency Debt
         Ratings have positive outlooks in line with the outlook
         on the country's sovereign ratings outlook

The TCR-AP reported on Feb. 1, 2007, that Fitch Ratings affirmed
all the ratings of Bank Danamon:

   * Long-term foreign Issuer Default rating 'BB-',

   * Short-term rating 'B',

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

   * Individual 'C/D', and

   * Support '4'.

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


GARUDA INDONESIA: Saudi Withdraws Ban After Inspection
------------------------------------------------------
PT Garuda Indonesia's will not be banned from flying in Saudi
Arabia's airspace after Saudi Arabia's civil aviation body has
withdrawn its planned banning, Reuters reports.

Reuters recounts that last month, Indonesia's transport ministry
received a letter from Saudi Arabia's General Authority on Civil
Aviation, warning of a possible ban since the body normally
followed EU aviation policy.

The Troubled Company Reporter - Asia Pacific reported on
July 17, 2007, that the European Union sent safety experts to
Indonesia to review an EU ban on Indonesian airlines.  Fifty-one
Indonesian airlines, including Garuda, have been barred to
safety concerns.  Indonesian officials asserted that EU failed
to account the improvements made this year.

Saudi Arabia withdrew the ban plan after a team of expert,
comprising of six-member team of the General Authority of Civil
Aviation led by Capt. Berenji, and was accompanied by Babang
Sudaryono, Jeddah-based communication attache at the Consulate
General of Indonesia, inspected all of Garuda's facilities,
operations and training centres and expressed satisfaction over
the safety standards, The Khaleej Times reports.

The Times relates that Jusman Syafii Djamal, Indonesian
transportation minister, said that Saudi will not ban Garuda
from flying in its airspace, whether regular or Haj flights.

Garuda operates eight flights a week from Jakarta to Jeddah, of
which three are via Riyadh, and is planning to add 60 extra
flights between June and September to transport Umrah pilgrims.
The Times says.

Reuters adds that Indonesia signed an agreement with the
International Civil Aviation Organisation to improve air safety,
committing itself to implement safety management based on
international standards.

                     About Garuda Indonesia

Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--    
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations.  Under its
Citilink brand, it serves 10 other domestic routes.  Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.

The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005.  It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates.  Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
was due on December 31, 2005.

The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.

Garuda is currently undergoing debt restructuring.  The Troubled
Company Reporter - Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.


INCO LTD: Builds US$2.5-Billion Nickel Plants
---------------------------------------------
PT International Nickel Indonesia Tbk, Canada Inco Ltd.'s
Indonesian unit planned to build two new nickel plants worth
US$2.5 billion on Sulawesi Island, Associated Press reports.

According to the report, INCO Chief Executive Arif Siregar said
that the plant project, expected to be built next year, is part
of the company's effort to increase their nickel output to
300 million pounds by 2016.

Mr. Siregar said that Inco will launch an engineering study in
September to decide the financing structure for the development
of the plants, the report adds.

                        About Inco Limited

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)
-- http://www.inco.com/-- produces nickel, which is used   
primarily for manufacturing stainless steel and batteries.  Inco
also mines and processes copper, gold, cobalt, and platinum
group metals.  It makes nickel battery materials and nickel
foams, flakes, and powders for use in catalysts, electronics,
and paints.  Sulphuric acid and liquid sulphur dioxide are
produced as byproducts.  The company's primary mining and
processing operations are in Canada, Indonesia, and the U.K.

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.


INCO LTD: To Meet Annual Output Target Despite Plant Shutdown
-------------------------------------------------------------
PT International Nickel Indonesia Tbk, Canada Inco Ltd.'s
Indonesian unit is still positive that their annual production
target of 165 million pounds of nickel in matte will be reached,
despite a plan to temporarily shut down its main furnace in the
third quarter, The Jakarta Post reports.

The report relates that Arif S. Siregar, Inco president
director, said that the plant shutdown will not affect the
company's production target since the shutdown had been planned
in advance.

In the first semester alone the company was able to produce more
than 50% of the targeted nickel matte production, which leaves
only 78.9 million pounds to make up in the last six months of
the year.  This was due to above-average rainfall that increased
water level in their main dams causing a normal operation for
their hydropower plants, the report recounts.

The report points out that Inco has already installed diesel-
powered electric generators in addition to its two existing
hydropower plants, to prevent a decrease in its second-semester
production due to a possible drop in rainfall.

                        About Inco Limited

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)
-- http://www.inco.com/-- produces nickel, which is used   
primarily for manufacturing stainless steel and batteries.  Inco
also mines and processes copper, gold, cobalt, and platinum
group metals.  It makes nickel battery materials and nickel
foams, flakes, and powders for use in catalysts, electronics,
and paints.  Sulphuric acid and liquid sulphur dioxide are
produced as byproducts.  The company's primary mining and
processing operations are in Canada, Indonesia, and the U.K.

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.


INDOSAT: Extends Ericsson Network-Coverage Contract
---------------------------------------------------
PT Indosat Tbk. has awarded Ericsson a contract extension to
expand its WCDMA/HSPA network coverage in greater Jakarta,
Indonesia. Indosat consumers in the area will receive wider
coverage and faster mobile broadband speeds.

Ericsson will be responsible for supplying core, radio access
network and transmission equipment, covering network design,
deployment, integration, performance and improvement of their
WCDMA/HSPA network.  The network coverage expansion would bring
Indosat service to more of its greater Jakarta subscribers.

The agreement is an expansion of the contract awarded to
Ericsson in 2006.  Indosat consumers in Jakarta are now enjoying
the fastest mobile broadband speeds currently available and the
expansion of its network will enable Indosat to offer broader
coverage in Jakarta and the surrounding area. In addition,
Indosat will also be able to offer more appealing mobile
broadband services, in line with their development plan
of reaching higher data speeds of up to 14.4Mbps for the
downlink and 1.8Mbps for the uplink by the end of 2007.

The agreement will also see Ericsson upgrading the existing
WCDMA radio network to be IP ready, clearing the way for Indosat
to an all-IP network.  This solution would provide Indosat with
a rapid and cost-efficient growth of capacity and coverage.

Johnny Swandi Sjam, President Director of Indosat, says:
"Increasing our coverage and speed is crucial to Indosat's
strategy for mobile broadband growth, in line with our rapid-
business-growth plan.  Thus, we need to have a partner who can
meet these challenges and we believe Ericsson is the right
partner to support us in providing the latest mobile broadband
services to our customers in Greater Jakarta."

Bengt Thornberg, President, Ericsson Indonesia, says: "Ericsson
is pleased to be awarded with this expansion contract, it's
further evidence of our performance as a reliable business
partner. Ericsson is committed to supporting Indosat in bringing
faster mobile broadband and other multimedia services to the
country. This expansion contract further highlights our leading
position in WCDMA/HSPA."

Ericsson is also the supplier of Indosat's GSM and WCDMA/HSPA
mobile core network, including the Mobile Softswitch Solution
and Packet Core -- the foundation of the operator's important
network.

                          About Indosat

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

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on August
02, 2007, Moody's Investors Service has placed PT Indosat Tbk's
'Ba3' senior unsecured foreign currency rating on review for
possible upgrade.  The rating action follows Moody's decision to
review the Indonesia's Ba3 foreign currency sovereign ceiling
for upgrade.

At the same time, Moody's has affirmed the Ba1 local currency
corporate family rating of Indosat with a stable outlook.
June 19, 2007, that Moody's Investors Service affirmed PT
Indosat Tbk's Ba1 local currency issuer rating and has also
changed the outlook to stable.  

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


PERUSAHAAN LISTRIK: To Enter Purchase Pact With Marubeni Corp.
--------------------------------------------------------------
PT Perusahaan Listrik Negara will sign a power purchase
agreement to buy electricity from Japan's Marubeni Corp.,
Reuters reports.

The report relates that Ali Herman Ibrahim, Perusahaan Listik
Director, said that they are now making preparations for the
contract signing this month.  "The price of electricity is
around 4.37 U.S. cent [sic] per kilowatt-hour," the report
quoted Mr. Ibrahim as telling reporters.

Last year, PLN picked a consortium led by Marubeni to build a
600-megawatt coal-fired power plant in Cirebon, West Java, with
expectation that it will be completed in 2010, the report
recounts.

Perusahaan Listrik, with a 24,000 MW of generating capacity, has
a monopoly over power supply in Indonesia but due to its ageing
plants, its daily output are below capacity, the report says.

The report adds that Indonesia wanted to add 24,000 MW of
electricity by 2013 from projects estimated to cost US$30
billion since domestic electricity demand up 10% this year.

                    About Perusahaan Listrik

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

                         *      *      *

The Troubled Company Reporter-Asia Pacific reported on
June 19, 2007, that Moody's Investors Service assigned a B1
senior unsecured rating to PT Perusahaan Listrik Negara's
proposed U.S. dollar bond issuance.

At the same time, Moody's has affirmed PLN's B1 corporate family
rating and A1.id national scale rating.  The outlook for all the
ratings is positive, which is in line with the sovereign's
positive outlook.

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


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

ADVANCED MEDICAL: Posts US$166 Mil. Net Loss in 2nd Quarter 2007
----------------------------------------------------------------
Advanced Medical Optics Inc. reported financial results for the
second quarter of 2007.

AMO reported a second-quarter net loss under Generally Accepted
Accounting Principles of US$166.8 million, which included the
impact of the recall.  

These results also included:

   * US$85.4 million pre-tax, non-cash in-process research and
     development charge and a US$7.7 million pre-tax, non-cash
     inventory step-up to fair value charge related to the
     IntraLase acquisition.

   * approximately US$14.5 million in pre-tax transaction-
     related charges.

   * US$1.2 million in a pre-tax, non-cash deferred financing
     cost write-off related to the IntraLase acquisition
     financing and a gain on derivative instruments.

   * US$9.8 million unfavorable tax impact associated primarily
     with acquisition-related items.

In the same period last year, AMO reported a GAAP net loss of
US$2.7 million.  

The company's second-quarter 2007 net sales rose 1.7% to
US$261.4 million.  The sales increases related to the April 2007
acquisition of IntraLase Corp. and organic growth were offset by
lost sales and product returns related to the May 2007
MoisturePlus recall.  Foreign currency impacts increased net
sales by 1.7%.

"In the second quarter, we moved aggressively to integrate
IntraLase," Jim Mazzo, AMO chairman, president and chief
executive officer, said.  "Advanced CustomVue(R) technology and
IntraLase(R) FS laser drove laser vision correction sales to new
highs, demonstrating the strategic value of this combination.  
In addition, our portfolio of refractive implants delivered
double-digit growth on a sequential and year-over-year basis and
helped fuel an 8 percent rise in intraocular lens sales.  
Furthermore, our eye care business moved quickly and responsibly
to execute a global recall, and developed a comprehensive plan
to re-enter the multipurpose contact lens care market ahead of
schedule."

AMO estimated that the recall reduced eye care sales by
approximately US$54 million, including approximately US$31
million in returns and an estimated US$23 million in lost sales.  
As a result of the sales returns, the company reported negative
multipurpose sales of US$7.8 million.  The company incurred
recall-related costs of approximately US$27 million, which were
recognized in cost of sales and SG&A expense.

Gross profit decreased 22.3% to US$127.9 million, including a
US$7.7 million non-cash inventory step-up to fair value charge
related to the IntraLase acquisition.  Gross profit was also
impacted by approximately US$50.9 million in returns and costs
and an estimated US$15.9 million related to lost sales
associated with the recall.

R&D expense rose 24.8% to US$20.7 million, or approximately 7.9%
of sales, compared to 6.4 percent in the second quarter of 2006.  
The increase was due primarily to the addition of IntraLase and
WaveFront Sciences Inc.

                  Six-Month Financial Results

Net sales for the first six months of 2007 rose 3.6% to
US$513.1 million, including a 2.1% increase related to foreign
currency fluctuations.  The rise reflects the addition of the
IntraLase and WaveFront Sciences acquisitions and organic
growth, which were largely offset by estimated recall-related
lost sales and returns.

The company reported a GAAP net loss for the first six months of
2007 of US$154.7 million.  The per-share loss was increased by
US$2.02 due to an US$87 million charge for in-process R&D,
approximately US$22.2 million in transaction-related charges, a
US$1.3 million deferred financing cost write-off, a US$300,000
loss on derivative instruments and a US$9.7 million unfavorable
tax impact associated primarily with acquisition-related items.

                 About Advanced Medical Optics

Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures
and markets ophthalmic surgical and contact lens care products.
The company has operations in Germany, Japan, Ireland, Puerto
Rico and Brazil.

                          *     *     *

As reported in the Troubled Company Reporter on July 9, 2007,
Moody's Investors Service maintains Advanced Medical Optics,
Inc. ratings on review for possible downgrade following AMO's
announcement of its offer for Bausch & Lomb, Inc. for US$75 per
common share in a combination of US$45 in cash and US$30 in AMO
common stock.

These ratings remain on review for possible downgrade: B1
Corporate Family Rating; B1 Probability of Default Rating; Ba1
(LGD2/14%) rating on $300 million senior secured revolver due
2013; Ba1 (LGD2/14%) rating on $450 million senior secured term
loan B due 2014; B1 (LGD4/50%) rating on $250 million senior
subordinated notes due 2017; and B3 (LGD5/81%) rating on
US$251 million convertible senior subordinated notes due 2024.


BOSTON SCIENTIFIC: Fitch Lowers Senior Notes Rating to BB+
----------------------------------------------------------
Fitch has downgraded the ratings on Boston Scientific Corp:

  -- Issuer Default Rating (IDR) to 'BB+' from 'BBB-';
  -- Senior unsecured notes to 'BB+' from 'BBB-';
  -- Unsecured bank credit facility to 'BB+' from 'BBB-'.

Fitch has also withdrawn BSX's Commercial Paper rating of 'F2'.
This rating action affects approximately US$8 billion of debt.
The Rating Outlook is Negative.

The rating downgrade reflects the company's decision not to
carve out a portion of its Endosurgery business.  Fitch's prior
rating for BSX was highly dependent on the timely paydown of
debt with cash proceeds from the potential divestiture.  More
pressure has now been placed on BSX's operations, which are
currently challenged, to reduce debt and leverage.  The
performance of the company's Drug-Eluting Stent and Cardiac
Rhythm Management businesses has been a key source of operating
weakness, and Fitch believes a turnaround in these businesses
will take time.  EBITDA growth has also been hindered by the
company's decision to operate at a higher cost structure,
reflecting its anticipation for higher growth beyond 2007.  
While the company intends to address its cost structure, the
timing of improvement is uncertain.

The Negative Outlook reflects the challenges in BSX's DES and
CRM businesses.  Resolution of the Outlook would likely occur
when BSX generates recurring consolidated growth in revenues and
profitability.  In addition reduction in leverage and debt would
also help to resolve the Negative Outlook.

Free cash flow (net cash flow from operations less capital
expenditures) during the first six months ended June 30, 2007
was negative at approximately US$34 million.  This includes the
approximately US$400 million tax payment in the first quarter
from the divestiture of Guidant's vascular intervention and
endovascular solutions businesses to Abbott Labs.  Interest
coverage (EBITDA/Interest) was 3.5 times and leverage (total
debt/EBITDA) was 4.7 times for the last 12 months, ended
March 31, 2007.  The firm has approximately US$1.9 billion in
cash/short-term investments and US$8.9 billion in debt.  At
March 31, 2006, BSX had full availability on its US$2 billion
revolver, maturing on April 21, 2011.

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--   
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties.  The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.


BOSTON SCIENTIFIC: S&P Downgrades Corp. Credit Rating to BB+
------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on Boston Scientific Corp. to 'BB+' from 'BBB-'
and placed the ratings on the company on CreditWatch with
negative implications.

"The downgrade reflects the company's decision to retain full
ownership of its endosurgery group," explained Standard & Poor's
credit analyst Cheryl Richer.

Although Boston Scientific still plans to sell nonstrategic
assets, divest elements of its investment portfolio, and reduce
expenses and headcount, debt reduction will proceed at a slower
pace than previously anticipated.  The rating will remain on
CreditWatch while we review the implications of Boston
Scientific's revised strategy on its business and financial
risk.

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--   
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties.  The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.


JAPAN AIRLINES: 1st Qtr Loss Declines on Int'l Routes Revenue
-------------------------------------------------------------
Japan Airlines Corp.'s first-quarter loss narrowed by two-
thirds, thanks to increases in revenue on international routes
and efforts to cut labor costs, Reuters reports.

JAL said its operating loss for the quarter ended June 30, 2007,
came in at JPY8.5 billion (US$73 million), down from the
JPY31.9-billion loss recorded a year earlier.

Moreover, Reuters notes that air transport revenue rose 3%,
lifted by brisk business passenger demand on routes to China and
Southeast Asia, fuel surcharges and the axing of unprofitable
routes.

Reuters' Edwina Gibbs writes that the result puts JAL slightly
ahead in its plan to post a net profit for the first time in
three years, although not enough to bump up its full-year
outlook.

The airline has forecast an operating profit of JPY35 billion
and a net profit of JPY7 billion for the year to end-March, the
report says.

JAL, Reuters recalls, presented a restructuring plan in February
that focused on using smaller planes to improve fuel efficiency,
reducing jobs, overhauling its pension system and selling non-
core assets.   

Reuters, however, says that a media report has suggested that
the plan is now on hold in the face of reluctance from its banks
and because the airline thought it might obtain better terms if
it waited until progress on restructuring was clearer.


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

                          *     *     *

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

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

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


SUMITOMO REALTY: 1Q Profit Ups 54%; 1H Income Forecast Raised
-------------------------------------------------------------
Sumitomo Realty & Development Co. said on Thursday that its
first-quarter profit rose 54%, as the country's real estate
market accelerates out of a 14-year slump, Japan Times relates,
citing Bloomberg News.

Japan Times notes that Sumitomo Realty's net income rose to
JPY29.9 billion in the three months ended June 30, 2007, from
JPY19.4 billion in the same quarter in 2006.  Sales gained 22%
to JPY211.5 billion from JPY174 billion a year ago.

Sumitomo Realty's first-quarter operating profit, or sales minus
the cost of goods sold and administrative expenses, rose 50% to
JPY58.6 billion from the same period last year, Bloomberg News
says.  Operating profit for the company's leasing business,
which accounted for 61% of the total in 2006, gained 22% to
JPY28.1 billion in the three months ended June 30, compared with
a year earlier.  The office vacancy rate for Sumitomo Realty
declined to 4.2% from 4.8% a year ago.

Sumitomo Realty raised its net income forecast for the six
months ending Sept. 30 by 8.8% to JPY37 billion, Bloomberg
states.  The company also reiterated a full-year profit forecast
of JPY60 billion, based on expectations for sales of
JPY700 billion.

According to Bloomberg's Kathleen Chu, shares of Sumitomo Realty
& Development Co. posted their biggest gain in three months
after the developer raised its profit forecast, leading a 2%
advance in the Topix real estate index, the biggest gainer among
the benchmark measure's 33 industry groups.

Sumitomo Realty, Bloomberg says, added 4.7%, or JPY170, to
JPY3,760 as of the close of the Tokyo Stock Exchange.


Headquartered in Tokyo, Sumitomo Realty & Development Co., Ltd.
-- http://www.sumitomo-rd.co.jp/-- is a Japan-based real estate  
company.  The company operates in five business segments.  The
Real Estate Leasing segment is engaged in the leasing of office
buildings and condominiums, as well as providing leasing
services for special purpose companies (SPCs). The Real Estate
Sales segment is engaged in the sale of condominiums, buildings,
detached houses and other properties.  This segment also
provides real estate maintenance services.  The Complete
Construction segment is engaged in the construction work of
residential homes, as well as refurbishment work.  The Real
Estate Distribution segment is involved in the provision of real
estate brokerage services.  The Others segment is engaged in the
operation of fitness clubs and restaurants, as well as the
finance business.

The Troubled Company Reporter-Asia Pacific reported on May 29,
2007, that Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Sumitomo Realty to 'BB+' from
'BB', and its long-term senior unsecured debt rating to 'BBB-'
from 'BB+', based on expectations for enhanced cash flow
generation and earnings in the company's main leasing segment.  
The outlook on the corporate credit rating is positive.


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

DURA AUTOMOTIVE: Files Backstop Rights Purchase Agreement
---------------------------------------------------------
DURA Automotive Systems Inc. has filed a backstop rights
purchase agreement, which provides for certain backstop
commitments.  The agreement is based upon a term sheet
originally filed with the U.S. Bankruptcy Court on July 12,
2007, as part of a motion requesting the Court approve the
backstop rights purchase agreement and certain associated fees.

Under the terms of the agreement, Pacificor, LLC, one of DURA's
senior noteholders, has elected to underwrite 100% of the
backstop commitment.

The Court is currently scheduled to hear the backstop motion on
Aug. 15, 2007.

                      About DURA Automotive

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.  

The company has three locations in Asia -- China, Japan
and Korea.  It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.


DYNCORP INT'L: Earns US$12.3 Mil. in First Quarter Ended June 29
----------------------------------------------------------------
DynCorp International Inc. had net income of US$12.3 million for
the first quarter ended June 29, 2007, as compared with net loss
of US$617,000 for the first quarter ended June 30, 2006.

Revenue for the first quarter of fiscal 2008 was
US$548.7 million, a 2% increase over revenue of US$537.7 million
for the first quarter of fiscal 2007.  Revenue for the
Government Services segment, which represented 65% of Company
revenue in the first quarter, decreased to US$358 million for
the first quarter of fiscal 2008, down US$0.9 million or 0.3%
from the comparable period in fiscal 2007.  GS revenue was
impacted by task order losses under the Worldwide Personal
Protective Services program and completion of construction
projects under the CIVPOL program.  Offsetting these reductions
were revenue increases on the International Narcotics and Law
Enforcement program, construction work in Africa and additional
services in Afghanistan on the CIVPOL program.  Revenue for the
Maintenance and Technical Support Services segment for the first
quarter of fiscal 2008 increased to US$190.7 million, up
US$11.9 million or 6.7% as compared to the first quarter of
fiscal 2007.  MTSS revenue, which represented 35% of Company
revenue in the first quarter of fiscal 2008, benefited from a
new contract under which the Company provides logistics support
services to the U.S. Air Force C-21 fleet.

Total assets were US$1.4 billion, total liabilities were
US$972.2 million, and total stockholders' equity totaled
US$392.9 million as of June 29, 2007.

Total debt was US$595.5 million at June 29, 2007, a reduction of
US$35.5 million from March 30, 2007.  Of this total,
US$34.6 million was due to an Excess Cash Flow payment
requirement under the terms of our credit agreement.  Accounts
receivable as of June 29, 2007 was US$496.1 million, up from
US$462 million as of March 30, 2007 which resulted in a
corresponding increase in Days Sales Outstanding to 74 days from
67 days.  This increase was primarily due to payment timing
issues related to a system change with the Department of State.

Backlog as of June 29, 2007 was US$6 billion.

                       Fiscal 2008 Guidance

The company confirms its previously provided guidance for its
fiscal year ending March 28, 2008.  The company expects fiscal
2008 revenue between US$2.3 billion to US$2.4 billion.

                    About DynCorp International

Headquartered in Irving, Texas, DynCorp International Inc.
(NYSE: DCP) -- http://www.dyn-intl.com/-- provides specialized   
mission-critical outsourced technical services to civilian and
military government agencies.  The Company specializes in law
enforcement training and support, security services, base
operations, aviation services and operations, and logistics
support.  The company has more than 14,400 employees in 33
countries including Korea, and Haiti.  DynCorp International,
LLC, is the operating company of DynCorp International Inc.

                          *     *     *

As reported in the Troubled Company Reporter on June 19, 2006,
Standard & Poor's Ratings Services raised its ratings, including
the corporate credit rating to 'BB-' from 'B+', on DynCorp
International LLC. The ratings were removed from CreditWatch
where they were placed with positive implications on
Oct. 3, 2005.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service upgraded DynCorp International LLC's
US$90 million senior secured revolver maturing Feb. 11, 2010, to
Ba3 from B2; US$345 million senior secured term loan B due
Feb. 11, 2011, to Ba3 from B2; US$320 million 9.5% senior
subordinated notes due Feb. 15, 2013, to B3 from Caa1; Corporate
Family Rating, to B1 from B2; and Speculative Grade Liquidity
Rating, to SGL-2 from SGL-3.  Moody's said the ratings outlook
is stable.


REMY INTERNATIONAL: To Begin Vote Solicitation on Prepack Plan
--------------------------------------------------------------
Remy International Inc. said a press statement that it will
commence a solicitation of votes on its prepackaged chapter 11
plan by mid-August as a result of finalizing two critical
aspects of its financial restructuring.

Remy reached agreements with General Motors Corporation with
respect to the extension and enhancement of the company's
existing supply relationship with GM.

Remy considers the new GM arrangement as an important
development in the furtherance of the company's financial
restructuring.  While certain aspects of the arrangement will be
implemented immediately, the agreement will become fully
effective upon the consummation of the company's financial
restructuring.

"We are extremely pleased to have reached agreement with GM on
a comprehensive restructuring of our commercial arrangement.  We
look forward to a long and mutually beneficial relationship with
GM," said John Weber, Remy's chief executive officer.

In addition, Remy obtained a binding commitment from Barclays
Capital, the investment banking division of Barclays Bank PLC,
to provide debtor-in-possession financing of up to
US$225 million and US$330 million of long-term exit financing,
subject to certain closing conditions and documentation.

In June 2007, Remy , said it reached an agreement with holders
of approximately:

    * 83% of its 8-5/8% Senior Notes,
    * 84% of its 9-3-8% Senior Subordinated Notes, and
    * 75% of its 11% Senior Subordinated Notes,

on the terms of a consensual financial restructuring that would
reduce the company's debt obligations by approximately
US$360 million.

Remy says the terms of its consensual financial restructuring
with its noteholders contemplates that all trade creditors,
employees and suppliers will continue to be paid in the ordinary
course of business.

                 Terms of the Prepackaged Plan

The significant elements of the prepackaged plan include:

    -- Repaying the Second Priority Senior Secured Floating Rate
       Notes in full.

    -- Raising US$75 million in preferred equity through a
       rights offering to be made to holders of the company's
       Senior Notes and Senior Subordinated Notes.

    -- Exchanging the company's existing 8-5/8% Senior Notes for
       US$100 million of new third-lien Pay-in-Kind Notes and
       approximately US$50 million in cash.

    -- Converting the 9-3/8% Senior Subordinated Notes and 11%
       Senior Subordinated Notes into 100% of the common equity
       of the reorganized company.

    -- Cancelling all of the company's existing equity
       interests.

                   About Remy International

Headquartered in Anderson, Indiana, Remy International Inc. --
http://www.remyinc.com/-- manufactures, remanufactures and   
distributes Delco Remy brand heavy-duty systems and Remy brand
starters and alternators, locomotive products and hybrid power
technology.  The company also provides a worldwide components
core-exchange service for automobiles, light trucks, medium and
heavy-duty trucks and other heavy-duty, off-road and industrial
applications.

Remy has operations in the United Kingdom, Brazil and Korea.

As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Standard & Poor's lowered its rating on Remy's
US$145 million senior unsecured notes to 'D' from 'CC' because
Remy elected to not make the June 15, 2007, interest payment.  
It is expected that these creditors will have their claim
exchanged for US$100 million of new third-lien payment-in-kind
notes and about US$50 million in cash under the reorganization
plan.  At the same time, S&P lowered the rating on Remy's
US$165 million senior subordinated notes to 'D' from 'CC'
because these notes are expected to be converted into 100% of
common equity of the reorganized company.

To date, Remy International Inc. carries Moody's "Caa3" Senior
Secured Debt Rating and "Ca" Long-Term Corporate Family Rating,
which were placed on April 16, 2007.


TOWER AUTOMOTIVE: Emerges From Chapter 11 Bankruptcy in New York
----------------------------------------------------------------
Tower Automotive, Inc., and its debtor subsidiaries' First
Amended Joint Plan of Reorganization became effective on
July 31, 2007, Anup Sathy, Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, informs the United States Bankruptcy Court
for the Southern District of New York.

As previously reported, The Honorable Allen L. Gropper issued a
bench order confirming Tower's Plan on July 11, 2007.  The Court
entered its formal order approving the Plan on July 12.

Under Tower's Plan, a US$680,000,000 balance on the company's
DIP loan, and US$41,000,000 in second-lien loan obligations will
be paid.  Secured, priority and second-lien claims totaling
US$65,500,000 will also be paid in full.  Tower's stock will be
canceled and Cerberus Capital Management LP's affiliate, TA
Acquisition Company, LLC, will assume Tower's pension plans,
which have a minimum funding requirement of about US$40,000,000.

         PBGC Applauds Tower's Commitment to Retirees

"Early on in the bankruptcy of Tower Automotive Inc., the PBGC
made known its analysis that the company could afford its
pension plan when it emerged from Chapter 11.  In fact, Tower
Automotive has exited bankruptcy with its defined benefit
pension plan intact," Charles E.F. Millard, interim director of
the Pension Benefit Guaranty Corporation, said.

According to Mr. Millard, the 7,000 participants in the pension
plan, including more than 2,000 current retirees, will continue
to enjoy their full retirement benefit.

"Unlike many other pension plan sponsors, Tower Automotive met
all financial obligations to its pension plan during the course
of the bankruptcy.  Tower Automotive and its asset purchaser,
Cerberus Capital Management, are to be commended for keeping
this commitment to their workers' retirement security," Mr.
Millard said.

                    About Tower Automotive

Headquartered in Grand Rapids, Michigan, Tower Automotive Inc.
-- http://www.towerautomotive.com/-- is a global designer and  
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo.  Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components.  The company has operations in Korea, Spain and
Brazil.

The company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601).  James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts.  Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.

On May 1, 2007, the Debtors filed their Chapter 11 Plan of
reorganization and Disclosure Statement explaining that plan.  
On June 4, 2007, the Debtors submitted an Amended Plan and
Disclosure Statement.  The Court approved the adequacy if the
Amended Disclosure Statement on June 5, 2007.  The hearing to
consider confirmation of the Debtors' Amended Plan is set
for July 11, 2007.  (Tower Automotive Bankruptcy News, Issue No.
69; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000 )


TOWER AUTOMOTIVE: Completes US$1BB Asset Sale to TA Acquisition
--------------------------------------------------------------
Tower Automotive Inc. completed the sale of most of its assets
to Cerberus Capital Management LP's affiliate, TA Acquisition
Company, LLC, for roughly US$1,000,000,000, on July 31, 2007.

The sale concludes Tower's restructuring process and finalizes
its emergence from Chapter 11.

According to Auto Industry, the European Commission gave its
clearance to Cerberus' acquisition of Tower Automotive on
July 11, 2007 -- the day the Honorable Allen L. Gropper issued a
bench ruling allowing Tower to sell its assets to Cerberus.

The U.S. Bankruptcy Court for the Southern District of New York
entered its formal order approving the sale on July 12, 2007.

                     About Tower Automotive

Headquartered in Grand Rapids, Michigan, Tower Automotive Inc.
-- http://www.towerautomotive.com/-- is a global designer and  
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo.  Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components.  The company has operations in Korea, Spain and
Brazil.

The company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601).  James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts.  Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.

On May 1, 2007, the Debtors filed their Chapter 11 Plan of
reorganization and Disclosure Statement explaining that plan.  
On June 4, 2007, the Debtors submitted an Amended Plan and
Disclosure Statement.  The Court approved the adequacy if the
Amended Disclosure Statement on June 5, 2007.  The hearing to
consider confirmation of the Debtors' Amended Plan is set
for July 11, 2007.  (Tower Automotive Bankruptcy News, Issue No.
69; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or  215/945-7000 )


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

MALAYSIA AIRLINES: To Introduce Measures to Curb Delays
-------------------------------------------------------
Malaysia Airlines will introduce a new schedule effective
Aug. 13, 2007, incorporating buffers to reduce flight delays,
particularly consequential delays, AFP News reports.

In addition, the airline has also moved some engineers from
Subang to the KL International Airport to speed up in-situ
aircraft repairs and reduce aircraft down-time, the report
notes.

In a statement on Friday, MAS managing director and chief
executive officer Datuk Idris Jala was quoted by the news agency
as saying that the airline was also working with the relevant
regulatory authorities and Malaysia Airport Berhad to reduce
aircraft queue at take-offs and landings at the KLIA and to also
allow limited usage of its partially closed runway.

According to Idris Jala, MAB had requested its contractors to
speed up the construction of the KLIA runway which is now
expected to be completed in October, a month earlier than
scheduled.

"The management team and I are totally focused on improving our
OTP.  I'm pleased to inform our customers that in the last few
days, our OTP has moved to between 75 and 78 per cent," he said.

"In addition, we've also received approval from Penerbangan
Malaysia Berhad on the activation of a long term parking B747-
400 aircraft, as a standby aircraft," he added.


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

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


PROTON HOLDINGS: Mulls Building Assembly Plant in Egypt
-------------------------------------------------------
Proton Holdings Bhd is studying plans to assemble cars in Egypt
to help expand export sales and as base to enter the African
continent and Middle East market, Reuters reports, citing Proton
managing director Syed Zainal Abidin Syed Mohamed Tahir.

The results of the study will be out "early next year," the
director was quoted by the news agency.

On April 13, 2007, the Troubled company Reporter-Asia Pacific
reported that a private Saudi-based company, Malaysian Centre,
plans to set up an assembly line in Saudi Arabia for Proton
cars.  The Saudi firm, according to the TCR-AP, plans to set up
the assembly line in Damman.

                    About Proton Holdings

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 as 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.

However, the carmaker until now has yet to name a strategic
partner.  On May 23, 2007, the TCR-AP reported that Proton
Holdings may need a government bailout if talks to sell a stake
to a foreign investor continue to falter.


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

FLETCHER BUILDING: Purchases Fair Dinkum Homes and Sheds
--------------------------------------------------------
Fletcher Building Limited has completed the purchase of the
Australian headquartered businesses, AG&S Building Systems and
Hi Tech Pty Ltd, better known under their trading name of Fair
Dinkum Homes and Sheds a pre-engineered building distribution
network.  It principally consists of the intellectual property
for shed design, and offers a wide range of pre-engineered
building design packages including garages, carports, rural
barns and light industrial buildings, which it licenses to its
extensive distributor network.  Gross revenue which is comprised
mainly of licensing fees and other income is approximately
NZ$10 million.

Stramit Building Products, the largest group in the Fletcher
Building's steel division, has had a long term relationship with
FDHS with its distributor network being Stramit's largest
customer group.  The company believes the acquisition positions
Stramit as the market leader of pre-engineered buildings in the
Australian market worth NZ$600 million per annum.

The FDHS business has built a leading reputation in the pre-
engineered buildings market in Australia with approximately 125
distributors across all States and territories.  The business
also has a significant position in the New Zealand market, and
developing operations in the United Kingdom and South Africa.  
FDHS will report into Stramit.

                     About Fletcher Building

Headquartered in Penrose, New Zealand, Fletcher Building Limited
-- http://www.fletcherbuilding.com/-- is the holding company of    
the Fletcher Building group.  The operating segments of the
Company include the Building Products division; the
Infrastructure division, and the Laminates & Panels division.  
The Building Products division comprises six business streams,
including insulation, metal roof tiles, roll-forming and
coatings, long steel, plasterboard and a single businesses
stream comprising four business units.  The Infrastructure
division is an integrated manufacturer of cement, aggregates,
ready mix concrete and concrete products. It is also a general
contractor and residential house builder in New Zealand and the
South Pacific. The Laminates & Panels division manufactures and
sells high pressure and low-pressure decorative surface
laminates, raw medium density fiberboard, particle board and
kitchen components.  It distributes other products, such as
hardware and timber in some regions.  The company acquired the
Dunedin-based O'Brien's Group on May 1, 2006.

The Troubled Company Reporter-Asia Pacific, on July 31, 2007,
listed Fletcher Building's bonds as distressed.  The bonds have
the following coupon, maturity date, and trading price:

           Coupon          Maturity            Price
           ------          --------            -----
           8.600%          03/15/08          NZD9.30
           7.800%          03/15/09             9.75
           7.550%          03/15/11             9.20


FLETCHER BUILDING: To Build Regional Center in Hungary
------------------------------------------------------
Fletcher Building Limited will construct its regional production
facility and logistics center in Hungary instead of in Slovenia,
BBJ reports, citing Hungarian daily Napi Gazdasag.  According to
the report, the company chose Hungary to take advantage of
beneficial government and local offers.

The plant and a 25,000 square meter storage node in the
Varpalota industrial park reportedly cost around HUF3 billion
(US$16 million).  Napi Gazdasag said the preparatory phases of
the project are to start within 2007, with the actual
construction works scheduled for next spring.  Fletcher Building
plans to serve all of its Central and Eastern Europe partners
from the Varpalota junction, the daily added.

Headquartered in Penrose, New Zealand, Fletcher Building Limited
-- http://www.fletcherbuilding.com/-- is the holding company of    
the Fletcher Building group.  The operating segments of the
Company include the Building Products division; the
Infrastructure division, and the Laminates & Panels division.  
The Building Products division comprises six business streams,
including insulation, metal roof tiles, roll-forming and
coatings, long steel, plasterboard and a single businesses
stream comprising four business units.  The Infrastructure
division is an integrated manufacturer of cement, aggregates,
ready mix concrete and concrete products. It is also a general
contractor and residential house builder in New Zealand and the
South Pacific. The Laminates & Panels division manufactures and
sells high pressure and low-pressure decorative surface
laminates, raw medium density fiberboard, particle board and
kitchen components.  It distributes other products, such as
hardware and timber in some regions.  The company acquired the
Dunedin-based O'Brien's Group on May 1, 2006.

The Troubled Company Reporter-Asia Pacific, on July 31, 2007,
listed Fletcher Building's bonds as distressed.  The bonds have
the following coupon, maturity date, and trading price:

           Coupon          Maturity            Price
           ------          --------            -----
           8.600%          03/15/08          NZD9.30
           7.800%          03/15/09             9.75
           7.550%          03/15/11             9.20


INFRATIL LIMITED: To Raise NZ$175 Million Via 1:5 Rights Issue
--------------------------------------------------------------
Infratil Limited is raising approximately NZ$175 million for
general corporate purposes through a 1:5 renounceable rights
issue of installment shares.

In the short term, the funds will reduce bank debt, the company
said.

The key terms of the issue are:

   * 1:5 renounceable rights issue all shareholders.  The
     exercise price for each series of warrants (IFTWB & IFTWC)
     will adjust downwards in accordance with the formula in the
     warrant terms.

   * Issue price: NZ$2.00 per share in aggregate with the first
     installment of NZ$1.00 payable on subscription and the
     second installment of NZ$1.00 payable on July 4, 2008.
     Holders will have the option of early payment of the second
     installment.

   * Entitlements: The installment shares will, untill the
     second installment is paid, be entitled to 50% of any
     dividends, voting rights and future rights issue
     entitlements that are conferred by Infratil's ordinary
     fully paid shares.

   * Timing: The Record Date is anticipated to be Aug. 31, 2007,
     but this is subject to progress in documentation including
     NZX and Companies Office approval of the offering
     documents.

   * Infratil intends to apply to NZX for quotation of both the
     rights and then the installment shares on the NZSX Market.

Infratil points out that it remains focused on asset growth and
investment in its existing businesses.  Infratil's businesses
have strong organic growth opportunities with logical and value
added capex options.

Wellington, New Zealand-based Infratil Limited --
http://www.infratil.com/-- is an infrastructure investor.  The    
company, along with its subsidiaries, operates in four
industries: investment in infrastructure and utility companies,
airport, transportation and energy operations.  The airport
operations comprise the revenue and expenses associated with
Infratil Limited's investments in Wellington International
Airport Limited and Infratil Airports Europe Limited;
transportation comprises the businesses of New Zealand Bus
Limited and New Zealand Bus Finance Limited and subsidiaries,
which was acquired by the company on November 30, 2005, and the
energy operations relate to Victoria Electricity Pty Limited and
Infratil Energy Australia Pty Limited.  On December 5, 2005,
Infratil Limited acquired a 90% interest in Flughafen Lubeck
GmbH (Lubeck Airport).  In December 2006, Alliant Energy Corp.
sold its ownership interest in Alliant Energy New Zealand
Limited to the company.

The Troubled Company Reporter - Asia Pacific, on July 3, 2007,
listed Infratil Ltd.'s 8.500% bond with a November 15, 2015
maturity date as distressed at NZ$8.20.


MORRISON GROUP: Fixes August 31 as Last Day to File Claims
----------------------------------------------------------
Morrison Group Ltd. went into liquidation on July 6, 2007.

Accordingly, the creditors of the company are required to file
their claims by August 31, 2007, so as to be included in the
dividend distribution.

The company's liquidators are:

         Stephen John Tubbs
         Warren Michael Johnstone
         c/o Barbara King
         BDO Spicers
         Spicer House, Level 6
         148 Victoria Street
         PO Box 246, Christchurch
         New Zealand
         Telephone:(03) 353 5528
         Facsimile:(03) 353 5526
         e-mail: barbara.king@chc.bdospicers.com


MORRISON SPRAYING: Names Tubbs and Johnstone as Liquidators
-----------------------------------------------------------
Stephen John Tubbs and Warren Michael Johnstone were appointed
as liquidators of Morrison Spraying Limited on July 6, 2007.

Subsequently, the newly appointed liquidators required the
creditors of the company to submit their proofs of claim on or
before August 31, 2007, to be included in the company's dividend
distribution.

The Liquidators can be reached at:

         Stephen John Tubbs
         Warren Michael Johnstone
         c/o Barbara King
         BDO Spicers
         Spicer House, Level 6
         148 Victoria Street
         PO Box 246, Christchurch
         New Zealand
         Telephone:(03) 353 5528
         Facsimile:(03) 353 5526
         e-mail: barbara.king@chc.bdospicers.com


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

CHIQUITA BRANDS: Earns US$8.6 Million in 2007 Second Quarter
------------------------------------------------------------
Chiquita Brands International Inc. released financial and
operating results for the second quarter 2007.  Second quarter
net sales increased by 2 percent year-over-year to
US$1.3 billion, and the company reported net income of
US$8.6 million, or US$0.20 per diluted share, including a charge
of US$3 million, or US$0.07 per share, related to a settlement
of U.S. antitrust litigation.  The company reported net income
of US$23 million, or US$0.54 per diluted share, in the year-ago
period.

"We were not satisfied with our second quarter results," said
Fernando Aguirre, chairman and chief executive officer.  "We are
taking aggressive actions to address continuing challenging
market conditions and expect to reverse the recent trend and
begin delivering modest year-over-year improvements in operating
results starting in the third quarter."

Mr. Aguirre continued, "We remain confident in our strategy to
generate sustainable, profitable growth by delivering innovative
higher-margin products and building a high-performance
organization.  We were pleased to complete the previously
announced strategic shipping agreement, during the quarter and
use a significant portion of the proceeds from that transaction
to pay down debt.  We will continue to take actions to
strengthen our balance sheet, improve our risk profile, focus
our efforts on market activities, and diversify our company by
product, channel and geography."

Chiquita repaid more than US$200 million of debt during the
second quarter, primarily from proceeds from the sale of its 12
refrigerated cargo vessels.  As a result, the company's total
debt at June 30, 2007, was US$857 million, compared to
US$1.061 billion at March 31, 2007.  The company expects to
continue paying down debt until it reaches its target debt-to-
capital ratio of 40 percent, compared to 49 percent at June 30,
2007.

                      About Chiquita Brands

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and   
distributes fresh food products including bananas and nutritious
blends of green salads.  The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Colombia, Panama and the Philippines.

                          *     *     *

As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service Ratings affirmed these ratings on
Chiquita Brands International Inc.: (i) corporate family rating
at B3; (ii) probability of default rating at B3; (iii) USUS$250
million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%);
and (iv)  USUS$225 million 8.875% senior unsecured notes due
2015 at Caa2 (LGD5, 89%).  Moody's changed the rating outlook
for Chiquita Brands to negative from stable.

Troubled Company Reporter reported on May 4, 2007, that Standard
& Poor's Ratings Services placed its 'B' corporate credit and
other ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc. on CreditWatch with negative implications,
meaning that the ratings could be lowered or affirmed following
the completion of their review.  Total debt outstanding at the
company was about USUS$1.3 billion as of March 31, 2007.


CHIQUITA BRANDS: Weak Operating Results Cue S&P to Lower Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on Cincinnati, Ohio-based Chiquita Brands
International Inc., to 'B-' from 'B', and removed the rating
from CreditWatch with negative implications where it was placed
on May 2, 2007, following weak first-quarter operating results
due to high purchased fruit and other industry costs and lower
local banana prices in Europe.

"The downgrade follows Chiquita's recent second-quarter earnings
release and reflects continued deterioration in operating
performance and credit measures, and weak covenant cushion,"
said Standard & Poor's credit analyst Alison Sullivan.

At the same time, Standard & Poor's raised the ratings on
Chiquita's US$200 million revolving credit facility to 'B+', two
notches above the corporate credit rating, removed the ratings
from CreditWatch negative, and revised the recovery rating to
'1', indicating expectations of very high (90%-100%) recovery in
the event of a payment default, from '2'.  The improved recovery
on the revolver reflects repayment of the term loan B
(US$24 million outstanding as of March 31, 2007), and US$90
million of mortgage debt related to shipping assets that were
recently sold.

Also, Standard & Poor's lowered the ratings on Chiquita's
US$368 million term loan C to B, one notch above the corporate
credit rating, removed the ratings from CreditWatch negative,
and revised the recovery rating to 2, indicating expectations of
substantial (70%-90%) recovery in the event of a payment
default, from 1.  In addition, Standard & Poor's lowered the
ratings on the senior unsecured notes to CCC, two notches below
the corporate credit rating, and removed those ratings from
CreditWatch negative.

The outlook is negative.  Total debt outstanding at the company
was about US$857 million as of June 30, 2007.

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and   
distributes fresh food products including bananas and nutritious
blends of green salads.  The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Colombia, Panama and the Philippines.


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

CHEMTURA CORP: Incurs US$2 Million Net Loss in 2007 2nd Quarter
---------------------------------------------------------------
Chemtura Corporation posted a net loss of US$2 million, or
US$0.01 per share, for the second quarter of 2007 and net
earnings on a non-GAAP basis of US$43 million, or US$0.18 per
share.

The net loss for the quarter includes:

  * a loss from continuing operations of US$30 million, or
    US$0.12 per share;

  * income from discontinued operations of US$3 million, or
    US$0.01 per share; and

  * gain on the sale of a discontinued operations of US$25
    million, or US$0.10 per share.

On a non-GAAP basis, net earnings include income from continuing
operations of US$40 million, or US$0.17 per share and income
from discontinued operations of US$3 million, or US$0.01 per
share.

"Our second quarter results reflect numerous positives: record
earnings for Consumer Products despite a slowdown at the end of
the quarter; outstanding performance for Crop Protection despite
legacy bad debt issues in Latin America related to prior growing
seasons; continued sequential improvement in Polymer Additives;
and excellent performance from our Kaufman Holdings businesses
in the first full quarter since we acquired them at the end of
January," said Robert Wood, Chairman and CEO.

"The impact of the bad debt provision, the transitional impacts
from the carve-out and sale of the EPDM business, and the higher
than normal non-GAAP tax provision rate served to reduce our
non-GAAP earnings in the quarter by more than US$0.02 per
share."

"As we indicated in the first quarter conference call, we
expected to begin to see the benefits of our efforts over the
last three years. This quarter's results are the first evidence
of this impact.  Our focus remains on managing those elements of
our business we can control.  The corporate restructuring
initiatives in the quarter are reducing our cost base and
realigning our organization to improve execution.  We have
started the process of realigning our manufacturing footprint.  
Our portfolio reshaping continues with the important step of
divesting the EPDM business completed in June.  These actions
are critical steps towards our goal of becoming a leaner, more
focused enterprise."

"The focus on cost and effectiveness will remain our highest
priority in the coming quarters.  Despite raw material cost
pressures, the third and fourth quarters are expected to provide
us with the first consecutive year-on-year positive comparisons
in many quarters."

                       About Chemtura Corp.

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products.  The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries.  The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service lowered Chemtura
Corporation's ratings:

  -- Corporate Family Rating: Ba2 from Ba1

  -- Senior notes, USUS$500 million due 2016: Ba2 from Ba1;
     LGD4 (53%)

  -- Senior Unsecured Notes, USUS$150 million due 2026: Ba2
     from Ba1; LGD4 (53%)

  -- Senior Unsecured Notes, USUS$400 million due 2009: Ba2
     from Ba1; LGD4 (53%)


ISOFT GROUP: Posts GBP8.8 Mln Net Loss in Year Ended April 30
-------------------------------------------------------------
iSOFT Group plc released preliminary financial results for the
year ended April 30, 2007.

iSOFT posted GBP8.8 million in net losses against
GBP175.2 million in revenues for the year ended April 30, 2007,
compared with GBP382.2 million in net losses against
GBP201.7 million in revenues for the same period in 2006.

At April 30, 2007, iSOFT's balance sheet showed GBP229.9 million
in total assets, GBP211.4 million in total liabilities and
GBP18.5 million stockholders' equity.

The Group's April 30 balance sheet showed strained liquidity
with GBP70.6 million in total current assets available to pay
GBP166.5 million in total liabilities coming due within the next
12 months.

"After the many disappointments that occurred in the first six
months of 2006, we have made significant progress restoring
iSOFT to a position of solid value, as recognized by the
CompuGROUP offer," John Weston, chairman and acting chief
executive officer of iSOFT, said.  "New management has been
brought into the Group; we have renegotiated the terms of our
relationship with CSC on the NPfIT and launched a regeneration
program.  While revenues and normalized profit from operations
for the year ended April 30, 2007 were lower than in the
corresponding period, both normalized operating profit from
operations and the year-end cash position were considerably
better than we had budgeted for at the beginning of the year."

"On July 20, 2007 the Board recommended an offer of 66 pence per
iSOFT share, in cash, from CompuGROUP Holdings, a German company
listed on the Frankfurt stock exchange.  Documentation detailing
the offer to shareholders will be posted on Aug. 1, 2007 prior
to an extraordinary general meeting that is to be held on
Friday, Aug. 31, 2007.  If shareholders approve the offer on
that date, the transaction is expected to complete during
September.  After a complex and painstaking sale process, iSOFT
is on the way to becoming part of a well-funded group with
growth prospects," Mr. Weston added.

                           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 iSOFT revealed a change in accounting policy for
revenue recognition, as a consequence of which it became
necessary to review and restate revenues in prior years.  
Arising out of that review a number of possible accounting
irregularities came to light in which it appears that some
revenues reported in the financial years ended April 30, 2004
and 2005 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
we handed over relevant documents to the Financial Services
Authority (FSA), which is now conducting that investigation.  
The Group is working closely and cooperatively with the FSA in
order to complete the investigation as quickly as possible.

On Oct. 25, 2006 the Accountancy Investigation and Discipline
Board (AIDB) announced that it will 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 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.

At the present time the Group has no indication of when either
the FSA or the AIDB intend to conclude their investigations and
report.  On the basis of information that has come to light so
far, the directors consider that the restatement of revenues in
the financial statements for the year ended April 30, 2006
corrected, where appropriate, the impact of these particular
matters.  As the investigation is not yet concluded, it is not
possible for the Board to finally determine what implications,
if any, may arise from the conclusion of the investigations into
these matters.  Nevertheless they must be thoroughly
investigated and the Group will continue to cooperate with both
organizations.

                      Going Concern Doubt

At April 30, 2007, in preparing their cash flow projections,
iSOFT's directors recognize that there are material
uncertainties that may cast significant doubt on the Group's
ability to continue as a going concern.  

The nature of the Group's business is such that there can be
considerable unpredictable variation and uncertainty regarding
the timing and margin on sales, the quantum and timing of cash
flows from new business activity and the achievement of
contractual milestones.  In addition, until the proposed
CompuGROUP transaction legally completes, the successful
completion of the transaction (including shareholder and court
approval) and ongoing willingness and ability of CompuGROUP to
provide financial support to the Group remain uncertainties.  
Should the transaction not proceed, it would be necessary to
extend or renegotiate the Group's banking agreements beyond
their current expiry date of Nov. 14, 2007.


LEAR CORP: Earns US$123.6 Mln in 2nd Quarter Ended June 30, 2007
----------------------------------------------------------------  
Lear Corporation reported net income of US$123.6 million for the
second quarter ended June 30, 2007, compared with a net loss of
US$6.4 million for the second quarter of 2006.

For the second quarter of 2007, Lear reported net sales of
US$4.2 billion and pretax income of US$143.9 million, including
restructuring costs of US$34.8 million and other special items
of US$3.4 million.  For the second quarter of 2006, Lear
reported net sales of US$4.8 billion and pretax income of
US$31.5 million, including restructuring costs and other special
items of US$24.3 million.

In Lear's seating and electrical and electronic segments, net
sales were US$4.1 billion and EBITDA net income was
US$229.3 million for the second quarter of 2007.  This compares
with net sales of US$3.9 billion and core operating earnings of
US$164.7 million for the second quarter of 2006.  A
reconciliation of core operating earnings to pretax income as
determined by generally accepted accounting principles is
provided in the supplemental data pages.

The decline in reported net sales for the quarter reflects
primarily the divestiture of Lear's Interior business and lower
production in North America, offset in part by the benefit of
new business mainly outside of North America and favorable
foreign exchange.  Operating improvement reflects favorable cost
performance, the benefit of new business and the divestiture of
Lear's Interior business, offset in part by lower production in
North America.

During the second quarter, the Company continued to make solid
progress on its global restructuring initiative, including
actions related to low-cost country sourcing, capacity alignment
and further administrative consolidation actions.  Also during
the quarter, the Company continued to win new business in Asia
and with Asian manufacturers globally.  In addition, Lear
announced an industry first with its agreement to supply Ford
Motor Company with SoyFoam for the seats in the 2008 Ford
Mustang.

"The Lear team was able to deliver improved financial results as
benefits from restructuring activities, ongoing cost and
efficiency actions and new business globally more than offset
lower production in North America," said Lear Chairman and CEO
Bob Rossiter.  "Going forward, we plan to continue with our
strategy of global restructuring and further sales
diversification to improve our longer-term competitiveness."

Full-Year 2007 Outlook

Lear expects 2007 net sales of approximately US$15.0 billion.  
This is up about US$200 million from the prior outlook,
reflecting primarily a stronger Euro and increased production
outside of North America.

Lear anticipates 2007 core operating earnings to be in the range
of US$600 to US$640 million.  This is unchanged from the last
full-year outlook provided, but the Company now sees earnings at
or near the high end of this range.

Restructuring costs in 2007 are estimated to be about US$100
million.

Interest expense is estimated to be in the range of US$210 to
US$215 million.  Pretax income before restructuring costs and
other special items is estimated to be in the range of US$335 to
US$375 million.  Tax expense is expected to be approximately
US$120 million, depending on the mix of earnings by country.

Capital spending in 2007 is estimated at approximately US$235
million, down US$15 million from the prior outlook, reflecting
primarily program timing and spending efficiencies.  
Depreciation and amortization expense is estimated at about
US$310 million.

Free cash flow is expected to be positive at about US$275
million for the year.

Key assumptions underlying Lear's full-year financial outlook
include expectations for industry vehicle production of
approximately 15.1 million units in North America and 19.7
million units in Europe.

                         About Lear Corp.

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and  
components.  Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products.  The company has more than 90,000 employees at 236
facilities in 33 countries.

Lear also operates in Latin American countries including
Argentina, Mexico, and Venezuela.  Its European operations are
located in Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, Poland, Portugal, Romania, Russia, Slovakia,
Spain, Sweden, South Africa, Morocco, Netherlands, Tunisia and
Turkey.  Its Asian facilities are in Singapore, China, India,
Japan, Philippines, South Korea, and Thailand.

                          *     *     *

The TCR-Europe reported on July 27, 2007, that Standard & Poor's
Ratings Services has raised its corporate credit rating on Lear
Corp. to 'B+' from 'B' and removed the ratings from CreditWatch
with positive implications where they were placed on July 17,
2007.


ODYSSEY RE: Reports US$145.5 Mil. Net Income in Second Qtr. 2007
----------------------------------------------------------------
Odyssey Re Holdings Corp. reported net income available to
common shareholders of US$145.5 million, or US$2.02 per diluted
share, for the quarter ended June 30, 2007, compared to US$207.6
million, or US$2.87 per diluted share, for the quarter ended
June 30, 2006.  Operating income after tax was US$66.8 million,
or US$0.93 per diluted share, for the second quarter of 2007,
compared to US$88.2 million, or US$1.22 per diluted share, for
the second quarter of 2006; results for the second quarter of
2006 include a one-time tax benefit of US$16.5 million, or
US$0.23 per diluted share.  Included in second quarter 2007 net
income available to common shareholders were after tax net
realized capital gains of US$78.7 million, or US$1.09 per
diluted share, compared to after tax net realized capital gains
of US$119.6 million, or US$1.65 per diluted share, for the
second quarter of 2006, which included capital gains of an
equity investee that were included in net investment income for
that quarter.  For the six months ended June 30, 2007, net
income available to common shareholders was US$232.1 million, or
US$3.22 per diluted share, compared to US$358.0 million, or
US$4.95 per diluted share, for the comparable period of 2006.

Book value per common share was US$30.27 at June 30, 2007, an
increase of US$2.35 per share, or 8.4%, compared to US$27.92 at
Dec. 31, 2006.  Total shareholders' equity was US$2.28 billion
at June 30, 2007, an increase of US$200.5 million compared to
total shareholders' equity of US$2.08 billion at Dec. 31, 2006.

Gross premiums written for the quarter ended June 30, 2007 were
US$553.3 million, a decrease of 5.3% compared to US$584.1
million for the quarter ended June 30, 2006.  The change was
attributable to a 12.4% decrease in the Company's worldwide
reinsurance business, reflecting increased competitive market
conditions, which was partially offset by a 14.4% increase in
the Company's insurance business, primarily related to new
business opportunities within U.S. specialty insurance.  Net
premiums written for the second quarter of 2007 were US$505.1
million, a decrease of 7.0% compared to second quarter 2006 net
premiums written of US$542.8 million.

The combined ratio for the second quarter of 2007 was 93.9%,
compared to 95.3% for the second quarter of 2006.  Results for
the three months ended June 30, 2007 reflect net catastrophe
losses, including net catastrophe losses from prior periods, of
US$13.0 million, after tax, or US$0.18 per diluted share,
compared to US$19.8 million, or US$0.27 per diluted share, for
the second quarter of 2006.  For the six months ended
June 30, 2007 and 2006, the combined ratio was 95.1% and 93.6%,
respectively.

Net investment income, which for 2006 excludes realized capital
gains of an equity investee included in net investment income,
amounted to US$84.5 million for the second quarter of 2007,
compared to US$92.3 million for the second quarter of 2006.  Net
pre-tax realized capital gains were US$121.1 million for the
second quarter of 2007, compared to US$184.1 million for the
second quarter of 2006.  Included in net pre-tax realized
capital gains for the second quarter of 2007 is US$119.2 million
related to the sale of the Company's 13.2% ownership of Hub
International Limited.  The second quarter of 2006 includes
realized capital gains of an equity investee included in net
investment income of US$103.3 million.  For the three months
ended June 30, 2007, net cash flow from operations was US$28.6
million, an increase of 6.3% from US$26.9 million for the three
months ended June 30, 2006.

At June 30, 2007, total investments and cash were US$7.3
billion, an increase of US$220.1 million, or 3.1%, over
Dec. 31, 2006.  Net unrealized losses, after tax, were US$37.4
million at June 30, 2007, compared to net unrealized gains,
after tax, of US$23.4 million at Dec. 31, 2006.  In the second
quarter of 2007, OdysseyRe paid a cash dividend of US$0.0625 per
common share on June 29, 2007, to common shareholders of record
as of June 15, 2007.

Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of
property and casualty treaty and facultative reinsurance, as
well as specialty insurance.  Odyssey Re operates through its
subsidiaries, Odyssey America Reinsurance Corp., Hudson
Insurance Co., Hudson Specialty Insurance Co.  Clearwater
Insurance Co., Newline Underwriting Management Limited and
Newline Insurance Co. Ltd.  The Company underwrites through
offices in the United States, London, Paris, Toronto and
Singapore.  Odyssey Re Holdings Corp. is listed on the New
York Stock Exchange under the symbol ORH.

                       *     *     *

As reported in the Troubled Company Reporter on Nov. 15, 2006,
Standard & Poor's affirmed its 'BBB-' counterparty credit and
'BB' preferred stock ratings on Odyssey Re Holdings Corp. and
removed them from CreditWatch negative.


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

DAIMLERCHRYSLER: W. Bernhard to Head New Chrysler, Report Says
--------------------------------------------------------------
Wolfgang Bernhard is set to become the chairman of the new
Chrysler once Cerberus Capital Management LP completes its
purchase of the automaker from DaimlerChrysler AG, the New York
Times reports, quoting a person familiar with the company's
plans.

According to the report, Thomas W. LaSorda will remain as
Chrysler's chief executive, a position he has held since the
beginning of 2006.  Chrysler is also expected to name the
members of two boards, one for the auto company and another for
a holding company that will be created when the sale is
completed, which may be as early as this week.

Mr. Bernhard left Chrysler to become the head of Mercedes-Benz
in the spring of 2004, but he clashed with DaimlerChrysler
executives who felt his efforts to cut costs were too
aggressive.  Mr. Bernhard became chairman of the Volkswagen
brand a year later but left as part of a management shake-up
earlier this year, the Times states.  Cerberus asked him to be
one of its advisors in its efforts to acquire Chrysler.

The TCR-Europe reported on July 27, 2007, that bankers for
Chrysler have deferred a US$12 billion debt sale to investors as
part of a buyout severing the unit from its German parent.  
Rather than fund the operations of the newly independent auto
maker with money raised from loans, as planned, the underwriters
of the deal -- five banks led by J.P. Morgan Chase & Co. -- will
have to provide much of the money themselves, at least until the
market settles down.

Executives at the automaker's parent company were quick to
reassure investors that the financing problem will not affect
the purchase of the Chrysler Group by private equity firm
Cerberus, which had signed to buy an 80% stake in the U.S. Arm.

                      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 AG: Chrysler' July 2007 U.S. Sales Drop 1%
----------------------------------------------------------
Chrysler Group reported sales for June 2007 of 183,347 units;
down 1 percent compared to June 2006 with 185,946 units.

"In a challenging market, Chrysler Group had softer sales in
June than a year ago.  We saw strong customer interest in our
newly launched, fuel efficient models," said Darryl Jackson,
Vice President of U.S. Sales.  "Supported by the fuel economy
message of our 'Maximize Your Miles' program, Chrysler continued
to show strong car sales with an increase of 55 percent over the
previous year."

Chrysler brand car sales in June were up 104 percent year-over-
year, while Dodge brand car sales increased 30 percent.  
Chrysler Group's offerings in the car segment include the
Chrysler Sebring Sedan and Sebring Convertible, the Chrysler
300, the Dodge Avenger, Dodge Caliber and Dodge Charger.

Jeep brand sales continued to increase in June and posted a gain
of 19 percent over the previous year.  This result was again
driven by the continuously strong Jeep Wrangler and Jeep
Patriot.  Jeep Wrangler and Wrangler Unlimited posted sales of
10,952 units, up 93 percent compared to June 2006 with 5,674
units.  The Jeep Patriot also kept its momentum and finished
June with sales of 4,633 units, up 3 percent from May 2007.  The
vehicle is one of Chrysler Group's recently introduced models
that achieve 30 miles per gallon or better in highway driving.  
In addition, the Jeep Grand Cherokee also posted a gain of 3
percent year-over-year.

The Chrysler Sebring Convertible finished the month with sales
of 3,759 units which is 22 percent over May 2007.  The recently
launched redesigned model offers what no other convertible has
offered before -- three automatically latching convertible top
options: vinyl, cloth and a body-color painted steel retractable
hard top, all of which can be retracted with a push of a button
on the key fob.  Sales of the Dodge Charger increased in June by
19 percent with 11,529 units compared to 9,710 units in the
previous year.

"As our strong car sales in May and June demonstrate, our
'Maximize Your Miles' program resonated well with customers,"
said Michael Keegan, Vice President of Volume Planning and Sales
Operations.  "Moving forward, Chrysler Group will extend its
low-rate financing plus additional bonus cash in July, with a 0%
APR offering for 60 months on select models.  These great value
packages were successful in the recent months as well."

Chrysler Group finished the month with 485,429 units of
inventory, or a 71-day supply.  Inventory is down by 25 percent
compared to June 2006 when it was at 647,695 units.

Posting its highest month ever of sales outside of North America
and sustaining 25 consecutive months of year-over-year sales
gains; Chrysler Group's International monthly sales increased 21
percent to 22,901 units in June 2007 compared to 18,971 units in
June 2006.

"The strength of our new product portfolio coupled with the
support of our dealer network outside North America is driving
the growth we have seen so far this year," said Thomas Hausch -
Vice President of International Sales.  "We expect to maintain
the double digit growth this year, including record export
numbers, and continue to strategically grow production volumes
and sales outlets outside North America for all three brands."

                      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: Reports 9% Decrease in U.S. Sales for July 2007
----------------------------------------------------------------
DaimlerChrysler AG reported total group sales of 156,314
passenger vehicles in the U.S. for July 2007, a 9 percent
decrease compared to July 2006.

Chrysler Group, consisting of the Chrysler, Jeep and Dodge
brands, posted sales of 137,728 vehicles in the U.S., an 8
percent decline in July.  Driven by the Chrysler Sebring Sedan
and Sebring Convertible, total Chrysler brand car sales
increased 32 percent year-over-year.  In addition, the New
Chrysler Lifetime Powertrain Warranty -- the first from an OEM
and the longest in the industry -- is a statement of confidence
in the reliability of Chrysler products, and provides worry-free
ownership for new Chrysler, Jeep and Dodge customers as long as
they own their vehicles.

Following its most aggressive product launch in company history
of 10 all-new vehicles in 2006, Chrysler Group continues its
product offensive with the launch of eight all-new vehicles in
2007.

MBUSA recorded 18,586 new car sales for July, bringing its year-
to-date total to 136,826 units, a 0.2 percent increase compared
to the same period last year and marking the best year-to-date
sales volume in its history.

Highlights for the month include a 12 percent increase in sales
of Mercedes- Benz high-end vehicles and a 23 percent increase
(3,015 vs. 2,446 units) for the company's M-Class SUV model
line.  July 2007 had 24 selling days and July 2006 had 25
selling days.

                      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.


TMB BANK: Bankruptcy Court Bars Sale of Thai Wah Firms' Shares
--------------------------------------------------------------
The Central Bankruptcy Court has prohibited TMB Bank PCL from
publicly auctioning ordinary shares in Laguna Resorts & Hotels
PCL, Thai Wah Food Products PCL and Tropical Resorts Ltd, which
are all owned by Thai Wah PCL.

According to a company disclosure with the Stock Exchange of
Thailand, TMB planned to auction off 29,447,324 shares in Laguna
Resorts, 4,320,900 shares in Thai Wah Food Products, and 10
million shares in Tropical Resorts.

On July 31, TMB announced that it will hold a public auction to
sell off the shares owned by the company.  The auction was
supposed to take place today at the Grand Ayudhya Bangkok Hotel.  
However, the Court issued an order last Friday barring TMB from
selling the shares.


Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders    
financial services to all groups of customers.   TMB Bank had
total assets of about THB717 billion as at December 31, 2005.

Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.

On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.

On July 6, 2007, Standard & Poor's Ratings Services gave TMB
Bank's US$200-million hybrid Tier 1 securities a 'BB' rating.  
The TCR-AP also reported on June 13, 2007 that Standard & Poor's
Ratings Services has raised the outlook on TMB Bank PCL's debt
rating from negative to stable.


* BOND PRICING: For the Week 30 July to 03 August 2007
------------------------------------------------------

Issuer                         Coupon  Maturity  Currency  Price
------                         ------  --------  --------  -----

AUSTRALIA &
NEW ZEALAND
-----------
Ainsworth Game                 8.000%  12/31/09     AUD     0.80
A&R Whitcoulls Group           9.500%  12/15/10     NZD    10.10
Arrow Energy NL               10.000%  03/31/08     AUD     2.75
Babcock & Brown Pty Ltd        8.500%  12/31/49     NZD     8.25
Becton Property Group          9.500%  06/30/10     AUD     0.90
BIL Finance Ltd                8.000%  10/15/07     NZD    10.00
Capital Properties NZ Ltd      8.500%  04/15/07     NZD    10.75
Capital Properties NZ Ltd      8.000%  04/15/10     NZD    10.50
Chrome Corporation Ltd        10.000%  02/28/08     AUD     0.23
Clean Seas Tuna Ltd            9.000%  09/30/08     AUD     1.12
Djerriwarrh Investments Ltd    6.500%  09/30/09     AUD     4.85
Evans & Tate Ltd               8.250%  10/29/07     AUD     0.42
Fletcher Building Ltd          8.600%  03/15/08     NZD     9.30
Fletcher Building Ltd          7.800%  03/15/09     NZD     9.75
Fletcher Building Ltd          7.550%  03/15/11     NZD     9.20
Futuris Corporation Ltd        7.000%  12/31/07     AUD     2.49
Geon Group                    11.750%  10/15/09     NZD    10.00
Heemskirk Consolidated
   Limited                     8.000%  09/30/11     AUD     3.25
Hy-Fi Securities Ltd           7.000%  08/15/08     NZD     8.60
Hy-Fi Securities Ltd           8.750%  08/15/08     NZD    15.00
IMF Australia Ltd             11.500%  06/30/10     AUD     0.80
Infrastructure & Utilities
   NZ Ltd                      8.500%  09/15/13     NZD     8.75
Kiwi Income Properties Ltd     8.000%  06/30/10     NZD     1.16
Metal Storm Ltd               10.000%  09/01/09     AUD     0.13
Nuplex Industries Limited      9.300%  09/15/07     NZD     9.50
Primelife Corporation         10.000%  01/31/08     AUD     1.00
Salomon SB Aust                4.250%  02/01/09     USD     7.09
Software of Excellence         7.000%  08/09/07     NZD     2.56
Speirs Group Ltd.             10.000%  06/30/49     NZD    60.00
TrustPower Ltd                 8.300%  09/15/07     NZD     9.60
TrustPower Ltd                 8.300%  12/15/08     NZD     8.90
TrustPower Ltd                 8.500%  09/15/12     NZD     9.00
TrustPower Ltd                 8.500%  03/15/14     NZD     8.80


MALAYSIA
--------
Aliran Ihsan Resources Bhd     5.000%  11/29/11     MYR     1.29
Ample Zone Bhd                 9.300%  01/27/12     MYR    68.92
Asian Pac Bhd                  4.000%  12/21/07     MYR     0.87
Berjaya Land Bhd               5.000%  12/30/09     MYR     1.72
Bumiputra-Commerce             2.500%  07/17/08     MYR     1.30
Crescendo Corporation Bhd      3.000%  08/25/07     MYR     1.56
Eastern & Oriental Hotel       8.000%  07/25/11     MYR     2.67
Eden Enterprises (M) Bhd       2.500%  12/02/07     MYR     1.01
Equine Capital                 3.000%  08/26/08     MYR     2.91
Greatpac Holdings              2.000%  12/11/08     MYR     0.16
Gula Perak Bhd                 6.000%  04/23/08     MYR     0.47
Huat Lai Resources Bhd         5.000%  03/28/10     MYR     0.50
Insas Bhd                      8.000%  04/19/09     MYR     0.75
Kamdar Group Bhd               3.000%  11/09/09     MYR     0.48
Kosmo Technology Industrial    2.000%  06/23/08     MYR     0.52
Kretam Holdings Bhd            1.000%  08/10/10     MYR     1.05
Kumpulan Jetson                5.000%  11/27/12     MYR     0.59
LBS Bina Group Bhd             4.000%  12/31/07     MYR     0.75
LBS Bina Group Bhd             4.000%  12/31/08     MYR     0.75
LBS Bina Group Bhd             4.000%  12/31/09     MYR     0.75
Lebuhraya Kajang Bhd           5.850%  06/12/18     MYR    69.31
Lebuhraya Kajang Bhd           2.000%  06/12/19     MYR    72.48
Lebuhraya Kajang Bhd           2.000%  06/12/20     MYR    69.31
Media Prima Bhd                2.000%  07/18/08     MYR     1.83
Mithril Bhd                    8.000%  04/05/09     MYR     0.26
Mithril Bhd                    3.000%  04/05/12     MYR     0.62
Nam Fatt Corporation Bhd       2.000%  06/24/11     MYR     0.78
Pilecon Engineering Bhd        5.000%  12/19/11     MYR     0.25
Pelikan International          3.000%  04/08/10     MYR     1.50
Pelikan International          3.000%  04/08/10     MYR     1.50
Puncak Niaga Holdings Bhd      2.500%  11/18/16     MYR     0.89
Ramunia Holdings               1.000%  12/20/07     MYR     1.09
Rashid Hussain Bhd             3.000%  12/23/12     MYR     1.90
Rashid Hussain Bhd             0.500%  12/24/12     MYR     1.90
Rhythm Consolidated Berhad     5.000%  12/17/08     MYR     0.26
Silver Bird Group Bhd          1.000%  02/15/09     MYR     0.31
Senai-Desaru Exp               3.500%  06/07/19     MYR    74.63
Southern Steel                 5.500%  07/31/08     MYR     1.81
Tenaga Nasional Bhd            3.050%  05/10/09     MYR     1.05
Tradewinds Corp.               2.000%  02/08/12     MYR     1.00
Tradewinds Plantations Bhd     3.000%  02/28/16     MYR     1.70
TRC Synergy Berhad             5.000%  01/20/12     MYR     2.03
Wah Seong Corp.                3.000%  05/21/12     MYR     5.25
WCT Land Bhd                   3.000%  08/02/09     MYR     3.80
YTL Cement Bhd                 4.000%  11/10/15     MYR     2.01




                            *********


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-Dy, 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
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                 *** End of Transmission ***