TCRAP_Public/070808.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

             Wednesday, August 8, 2007, Vol. 10, No. 155

                            Headlines

A U S T R A L I A

ARTMILL DISTRIBUTORS: Members Pass Resolution to Close Business
ASOMA AUSTRALIA: Undergoes Liquidation After Special Resolution
BRENTLY ENGINEERING: Placed Under Voluntary Liquidation
FEDERATED STEVEDORES: Members Opt for Voluntary Wind-Up
MAINEX PTY: Appoints Richard Herbert Judson as Liquidator

MOVINGHOME.COM.AU: Members Decide to Shut Down Business
POSITIVE IT: Members Resolve to Close Business
TOLL (FGCT): Members Decide to Voluntarily Wind Up Operations
TOLL PROJECTS: Commences Liquidation Proceedings
W. & M. MEAT: Members Agree to Liquidate Business

WESTPOINT GROUP: Investors May Recover AU$40 Million


C H I N A   &   H O N G  K O N G

AGRICULTURAL BANK: To Clamp Down Loan Approvals to Polluters
AGRICULTURAL BANK: Bad Loans Drop by CNY8.4 Bil. in First Half
ASIA TELEMEDIA: Court to Hear Goodpine Wind-Up Motion on Sept. 5
BALLY TOTAL: Moody's Removes All Ratings After Bankruptcy Filing
BALLY TOTAL: Wins Favorable Ruling in Mass. Consumer Lawsuit

BALLY TOTAL: Gets Interim OK to Hire Latham & Watkins as Counsel
BENQ CORP: Plans Counterclaims Against German Unit and Prager
CHINA PROFIT: Proofs of Debt Due on August 17
FIAT SPA: Taps China's Chery Auto as Engine Supplier
FRIGAID HK: Wind-Up Petition Hearing Set for Sept. 12

GO-LINK: Subject to BII Finance's Wind-Up Petition
HONG KONG BDSTAR: Sets Members' Final Meeting for Sept. 5
IANCASTLE LIMITED: Placed Under Voluntary Liquidation
KWAN TAT: Contributories and Creditors to Meet on August 28
PIONEER LINK: Members to Receive Wind-Up Report on Sept. 4

SUPER (EXPRESS): Court to Hear Wind-Up Petition on Aug. 29
WELLFINE (HK): To Pay Dividend to Creditors on Aug. 23


I N D I A

DRESSER-RAND: Unable to Agree on Labor Contract with IUE-CWA
IFCI LTD: Board OKs Inviting EOIs; Accept Bids Starting Aug. 13
ITI LIMITED: Incurs INR1.3 Bil. Net Loss in Qtr. Ended June 30
JCT ELECTRONICS: Net Loss Narrows to INR108 Mil. in 1st Quarter
TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer


I N D O N E S I A

FOSTER WHEELER: Two Units Win Saudi Aramco's Services Contract
GOODYEAR TIRE: Closes Engineered Products Sale for US$1.475 Bil.
HUNTSMAN CORP: Holders Connected w/ MatlinPatterson Sell Shares
INDOSAT: Plans IDR1-Tril. Bond Issue for Capital Expenditure
KRONOS WORLDWIDE: Parent Posts Second Quarter 2007 Results

MITEL NETWORKS: US$723MM Merger Gets Inter-Tel Shareholders' OK
MOBILE-8 TELECOM: May Postpone US$150 Million Bond Issue
NORTEL NETWORKS: Posts US$37MM Net Loss in Qtr. Ended June 30


J A P A N

JAPAN AIRLINES: Net Loss Down to JPY4.2 Billion in First Quarter
TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend


K O R E A

DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group
KRISPY KREME: S&P Puts B- Corporate Credit Rating
MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30
QUANTUM CORP: Posts US$22.6MM Net Loss in Qtr. Ended June 30


M A L A Y S I A

MANGIUM INDUSTRIES: Unit Faces Wind-Up Petition by SC Bank
MEGAN MEDIA: Head Sells 2.96 Mil. Shares Ahead of Fraud Probe
SETEGAP BHD: Bursa Slaps Public Reprimand on Delayed Filing
SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27


N E W  Z E A L A N D

A&R WHITCOULLS: Rod Walker Replaces Tom Sturgess as Chairman
AIR NEW ZEALAND: Reports Strong Market Conditions in June
AIR NEW ZEALAND: To Add 3 Boeing 777-300ER to Long-Range Fleet
AIR NEW ZEALAND: Wins NZ$45-Mil. Hawaiian Airlines Contract
AUCKLAND EUROPEAN: Names Buchanan and Macdonald as Liquidators

DHARMA LTD: Fixes August 13 as Last Day of Claims Filing
HABITAT LTD: Proofs of Debt Due on August 17
HARBOUR MASTER: Taps Lawrence and McCullagh as Liquidator
KAMICARZI AUTOMOTIVE: Creditors' Proofs of Debt Due on August 10
MORCLARKE DEVELOPMENTS: Proofs of Debt Due on August 16

OLYMPIC SLABBING: Fixes August 17 as Last Day to File Claims
OODIAN ON QUEEN: Winds Up Business; Claims Bar Date is Aug. 10
PROLINE BOATS: Wind-Up Petition Hearing Slated for August 19
SABA YACHTS: Shareholders Resolve to Close Business


P H I L I P P I N E S

IPVG CORP: Raises PHP352 Million Via Private Share Placement
PHIL. AIRLINES: Wants Gov't Subsidies to Flag Carriers Abolished
PHIL. LONG DISTANCE: Core Net Profit Up 13% to PHP17.2 Billion


S I N G A P O R E

ADVANCED MICRO: Moody's Lowers US$390-Million Notes Rating to B2
BBR GEOTECHNIC: Accepting Proofs of Debt Until August 17
FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site
WELLMIX ORGANICS: Court Enters Wind-Up Order


T H A I L A N D

BLOCKBUSTER INC: Weak Qtr Results Cue Moody's to Lower Ratings
DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus
DAIMLERCHRYSLER: Chrysler's July Sales Outside N. America Up 24%


* Upcoming Meetings, Conferences and Seminars

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

ARTMILL DISTRIBUTORS: Members Pass Resolution to Close Business
---------------------------------------------------------------
On June 29, 2007, the members of Artmill Distributors Pty Ltd
passed a special resolution to close the company's business.

David Clement Pratt and Stephen Graham Longley were appointed as
liquidators.

The Liquidators can be reached at:

         David Clement Pratt
         Stephen Graham Longley
         Freshwater Place
         2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia

                   About Artmill Distributors

Artmill Distributors Pty Ltd is a distributor of nondurable
goods.  The company is located in Newcastle, New South Wales,
Australia.


ASOMA AUSTRALIA: Undergoes Liquidation After Special Resolution
---------------------------------------------------------------
Mainex Pty Ltd went into liquidation on June 29, 2007, through a
special resolution passed on that day.

Richard Herbert Judson was named as liquidator.

The Liquidator can be reached at:

         Richard Herbert Judson
         Members Voluntarys Pty. Ltd.
         PO Box 819, Moorabbin Victoria 3189
         Australia

                     About Asoma Australia

Asoma Australia Pty Ltd is a distributor of chemicals and allied
products.  The company is located in North Sydney, New South
Wales, Australia.


BRENTLY ENGINEERING: Placed Under Voluntary Liquidation
-------------------------------------------------------
On June 29, 2007, the members of Brently Engineering Pty Ltd had
a meeting and resolved to voluntarily liquidate the company's
business.

The company's liquidator is:

         Richard Herbert Judson
         Members Voluntarys Pty. Ltd.
         PO Box 819, Moorabbin Victoria 3189
         Australia

                    About Brently Engineering

Brently Engineering Pty Ltd is a distributor of industrial
machineries and equipments.  The company is located in Lane Cove
West, New South Wales, Australia.


FEDERATED STEVEDORES: Members Opt for Voluntary Wind-Up
-------------------------------------------------------
At an extraordinary general meeting held on June 30, 2007, the
members of Federated Stevedores Darwin Pty Limited decided to
voluntarily liquidate the company's business.

David Clement Pratt and Stephen Graham Longley were appointed as
liquidators.

The Liquidators can be reached at:

         David Clement Pratt
         Stephen Graham Longley
         Freshwater Place
         2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia


MAINEX PTY: Appoints Richard Herbert Judson as Liquidator
---------------------------------------------------------
On June 29, 2007, the members of Mainex Pty Ltd had a meeting
and agreed to wind up the company's operations.

Richard Herbert Judson was then appointed as liquidator.

The Liquidator can be reached at:

         Richard Herbert Judson
         Members Voluntarys Pty. Ltd.
         PO Box 819, Moorabbin Victoria 3189
         Australia

                        About Mainex Pty

Mainex Pty Ltd operates metals service centers and offices.  The
company is located in North Sydney, New South Wales, Australia.


MOVINGHOME.COM.AU: Members Decide to Shut Down Business
-------------------------------------------------------
Movinghome.Com.Au Pty Ltd went into liquidation on June 29,
2007, through a special resolution passed by its members on that
day.

David Clement Pratt and Stephen Graham Longley were named as
liquidators.

The Liquidators can be reached at:

         David Clement Pratt
         Stephen Graham Longley
         Freshwater Place
         2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia

                    About Movinghome.Com.Au

Movinghome Com Au Pty Ltd is in the business of local trucking
without storage.  The company is located in Melbourne, Victoria,
Australia.


POSITIVE IT: Members Resolve to Close Business
----------------------------------------------
During a general meeting held on June 29, 2007, the members of
Positive It Holdings Pty Limited resolved to close the company's
business and appointed Richard Herbert Judson as liquidator.

The Liquidator can be reached at:

         Richard Herbert Judson
         Members Voluntarys Pty. Ltd.
         PO Box 819, Moorabbin Victoria 3189
         Australia

                        About Positive It

Positive It Holdings Pty Limited operates offices of holding
companies.  The company is located in North Parramatta, New
South Wales, Australia.


TOLL (FGCT): Members Decide to Voluntarily Wind Up Operations
-------------------------------------------------------------
At an extraordinary general meeting held on June 29, 2007, the
members of Toll (FGCT) Pty Limited agreed to voluntarily wind up
the company's operations.

David Clement Pratt and Stephen Graham Longley were appointed as
liquidators.

The Liquidators can be reached at:

         David Clement Pratt
         Stephen Graham Longley
         Freshwater Place
         2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia

                        About Toll (FGCT)

Toll (FGCT) Pty Limited is in the business of trucking, except
local.  The company is located in Rowville, Victoria, Australia.


TOLL PROJECTS: Commences Liquidation Proceedings
------------------------------------------------
Toll Projects Pty Ltd went into liquidation on June 29, 2007,
through a special resolution passed on that day.

The company's liquidators are:

         David Clement Pratt
         Stephen Graham Longley
         Freshwater Place
         2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia

                       About Toll Projects

Toll Projects Pty Ltd -- http://www.toll.com.au-- is in the  
business of arrangement of transportation for freight and cargo.  
The company is located in Melbourne, Victoria, Australia.


W. & M. MEAT: Members Agree to Liquidate Business
-------------------------------------------------
During a meeting held on June 29, 2007, the members of W. & M.
Meat Transport Pty Ltd agreed to liquidate the company's
business.

The company's liquidators are:

         David Clement Pratt
         Stephen Graham Longley
         Freshwater Place
         2 Southbank Boulevard
         Southbank, Victoria 3006
         Australia

                        About W & M Meat

W & M Meat Transport Pty Ltd is in the business of trucking,
except local.  The company is located in Tingalpa, Queensland,
Australia.


WESTPOINT GROUP: Investors May Recover AU$40 Million
----------------------------------------------------
Finchley Central Funds Management, an investment group closely
associated with Westpoint, has reassured Westpoint investors
that they will be repaid AU$40 million for property projects in
Perth, Sydney and Melbourne, Neale Prior of The Age reports,
citing the West Australian.

The report notes that according to Simon Bell, a former
Westpoint executive who now heads Finchley Central, developers
were in the final stages of arranging financing for their
projects and investors were likely to be paid in four to six
weeks.

Finchley raised more than AU$45 million for investors across
Australia to bankroll the Riverside Pier hotel development in
Perth, as well as retirement villages in the Melbourne suburb of
Heidelberg and the Sydney fringe suburb of Gilead, The Age
points out.  However, all the projects have been caught by long
delays in obtaining bank finance, raising concerns among
investors about the safety of their second mortgage loans that
helped bankroll the property purchases and early design and site
works.

The report explains that Finchley got involved in the Westpoint
collapse because it had a key role as a fund raiser for the
group's failed mezzanine finance schemes and the central role of
property finance mastermind Richard Beck in both groups.

Mr. Beck has since distanced himself from Finchley, leaving Mr.
Bell with the job of managing the company's affairs and dealing
with investors who have their money locked in the stalled
property projects, The Age relates.

The retirement village projects are controlled by NSW-based
development group Viceroy, while the Riverside Pier project is
controlled by a company that is listed with the Australian
Securities and Investments Commission as being a joint venture
between Finchley and Perth developer PH3.  The development
companies have no connection to Westpoint, the report clarifies.

                    About Westpoint Group

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

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

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


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

AGRICULTURAL BANK: To Clamp Down Loan Approvals to Polluters
------------------------------------------------------------
Agricultural Bank of China is clamping down loans to polluting
industries following a recent directive from the government to
cut down on loan approvals to polluting firms, Reuters reports,
citing a source from the bank.

According to the news agency's source, the bank already made
CNY252.9 billion (US$33 billion) in new loans in the first six
months of 2007, more than 80% of its full-year target of
CNY300 billion.

Around 12.5% of those loans went to firms categorized as energy-
intensive or polluting, taking AgBank's total exposure to that
sector to CNY342.6 billion at the end of June, the source told
Reuters.

However, according to the source, Agricultural Bank's vice
president, Han Zhongqi, warned at an internal meeting last week
that Beijing's increasingly tough line towards companies that
guzzle energy and spew out pollution was raising risks for the
lender.

"Some of these borrowers have already brought tangible losses to
our bank," the bank official cited Mr. Han as saying at the
meeting.

To contain the risk, the bank decided to centralize the approval
process for loans to industries under close government scrutiny
such as copper smelting, electrolytic aluminium, iron alloy and
calcium carbide, the source said.

The measure, the source said, was made after a strong demand of
loans were reported at local level, prompting Han to warn that
headquarters -- which is sticking to its CNY300 billion full-
year target for new loans -- would come down hard on branches
that defied orders to slow lending.

In addition, AgBank would even call in some loans to dirty
industries, the source told Reuters.  Mr. Han also warned of the
need to curb lending to some universities and expressway
projects, two sectors that bankers say pose increasingly large
risks for Chinese lenders.


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.


AGRICULTURAL BANK: Bad Loans Drop by CNY8.4 Bil. in First Half
--------------------------------------------------------------
Agricultural Bank of China reported a drop in its non-performing
loan ratio after its fell 2.09 percentage points from the 23.43%
reported at the end of last year to 21.34%.

According to a Reuters report, AgBank's non-performing loans at
the end of June 2007 fell CNY8.4 billion in the first half from
the end-2006 level of CNY736 billion.

Outstanding loans at the end of June came to CNY3.376 trillion,
an increase of CNY252.9 billion from the beginning of 2007.  
Outstanding deposits rose CNY154.8 billion to CNY2.93 trillion.

The bank also reported a 64.55% year-on-year jump to
CNY42.34 billion on its first-half operating profit.


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.


ASIA TELEMEDIA: Court to Hear Goodpine Wind-Up Motion on Sept. 5
----------------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Asia Telemedia Limited on Sept. 5, 2007, at
9:30 a.m.

The petition was filed by Goodpine Limited on June 5, 2007.

Goodpine's solicitor is:

         Woo, Kwan, Lee & Lo
         Sun Hung Kai Centre, Room 2801
         30 Harbour Road, Wanchai
         Hong Kong
         Telephone: 2586 9898


BALLY TOTAL: Moody's Removes All Ratings After Bankruptcy Filing
----------------------------------------------------------------
Moody's Investors Service withdrew all the credit ratings of
Bally Total Fitness Holding Corporation after the announcement
that Bally commenced voluntary reorganization proceedings under
chapter 11 of the U.S. Bankruptcy Code.  The proceedings seek to
confirm a "prepackaged" plan of reorganization the company's
bondholders have voted to support.

Moody's withdrew these ratings:

  -- US$235 million 10.5% senior unsecured notes (guaranteed)
     due 2011, Ca (LGD 4, 51%)

  -- US$300 million 9.875% senior subordinated notes due 2007,
     C (LGD 5, 88%)

  -- Corporate family rating, Ca

  -- Probability of default rating, D

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/--  
operates fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports
Clubs(R) and Sports Clubs of Canada (R) brands.

Bally Total and its affiliates filed for chapter 11 protection
on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after
obtaining requisite number of votes in favor of their pre-
packaged chapter 11 plan.  Joseph Furst, III, Esq. at Latham &
Watkins, L.L.P. represents the Debtors in their restructuring
efforts.  As of June 30, 2007, the Debtors had US$408,546,205 in
total assets and US$1,825,941,54627 in total liabilities.


BALLY TOTAL: Wins Favorable Ruling in Mass. Consumer Lawsuit
------------------------------------------------------------
The First Circuit Court ruled in favor of Bally Total Fitness
Holding Corp. in a suit claiming its health-club contracts
violate Massachusetts consumer protection laws, CourtHouse News
Service reports.

The suit was filed by Gisselle Ruiz, who said the club refused
to refund the balance of her membership fee when she canceled a
36-month contract with Holiday Universal, a subsidiary of Bally
Total.  She claimed the terms of the contract, including a
built-in financing plan, violated the Massachusetts Health Club
Services Contracts Act, which prohibits the required financing
of a health-club contract for more than one month beyond the
contract's expiration.

The court ruled Bally's health-club contracts do not violate
Massachusetts consumer protection law because it never forced
customers to sign up for the financing it offered.

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/--  
operates fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports
Clubs(R) and Sports Clubs of Canada (R) brands.

Bally Total and its affiliates filed for chapter 11 protection
on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after
obtaining requisite number of votes in favor of their pre-
packaged chapter 11 plan.  Joseph Furst, III, Esq. at Latham &
Watkins, L.L.P. represents the Debtors in their restructuring
efforts.  As of June 30, 2007, the Debtors had US$408,546,205 in
total assets and US$1,825,941,54627 in total liabilities.


BALLY TOTAL: Gets Interim OK to Hire Latham & Watkins as Counsel
----------------------------------------------------------------
Bally Total Fitness Holding Corporation and its debtor-
affiliates obtained from the U.S. Bankruptcy Court for the
Southern District of New York in Manhattan authority, on an
interim basis, to employ Latham & Watkins LLP as their
attorneys, effective as of July 31, 2007.

Marc D. Bassewitz, senior vice president, secretary and general
counsel of Bally Total Fitness Holding Corporation, relates that  
Latham & Watkins has been counsel to the Debtors on a number of  
matters for more than 10 years, including the preparation of the
Chapter 11 filings, and, therefore, will be able to quickly
respond to any and all issues that may arise during the Chapter
11 Cases.  

The firm is intimately familiar with the Debtors' businesses and
affairs and many of the potential legal issues that may arise in
the context of the Chapter 11 Cases, Mr. Bassewitz says.

As counsel for the Debtors, Latham & Watkins will render legal
services relating to the day-to-day administration of the
Chapter 11 cases and the several issues that may arise,
including:

   -- advising the Debtors with respect to their powers and
      duties in the continued management and operation of their
      business and properties;

   -- attending meetings and negotiating with representatives of
      creditors;

   -- taking all necessary action to protect and preserve the
      Debtors' estates, including prosecuting actions on the
      Debtors' behalf;

   -- preparing all motions, applications, answers, orders,
      reports, and papers necessary to the administration of
      the Debtors' estates;

   -- taking necessary action on behalf of the Debtors to obtain
      approval of their Disclosure Statement and confirmation of
      their Plan of Reorganization;

   -- advising the Debtors in connection with any potential sale
      of assets;

   -- appearing before the Bankruptcy Court, appellate courts,
      and the U.S. Trustee, and protect the interest of the
      Debtors' estates;

   -- performing all other necessary legal services in \
      connection with the Debtors' Chapter 11 Cases, including
      analyzing leases and executory contracts and any
      assumptions; analyzing the validity of liens against the
      Debtors; and advising on corporate, litigation,
      environmental, and other legal matters.

Latham & Watkins will be paid based on its hourly rates:

           Partners                 $595 to $975
           Of Counsel               $525 to $850
           Associates               $275 to $645
           Paraprofessionals         $90 to $320

The firm will also be reimbursed for it's reasonable out-of-
pocket expenses.

These professionals are presently expected to have primary
responsibility for providing services to the Debtors:

   * David S. Heller,
   * Richard A. Levy,
   * Josef S. Athanas,
   * Keith A. Simon, and
   * Caroline A. Reckler

Mr. Bassewitz notes that on February 20, 2007, the Debtors
advanced US$1,250,000 to Latham & Watkins as a retainer.  On
each of March 23, April 5, May 4, and June 5, the Debtors
advanced a further US$250,000 to the firm as a retainer.  On  
July 30, the Debtors advanced an additional US$100,000.

Much of the retainer has been applied prior to the Petition Date
to prepetition fees and expenses, and as of the Petition Date,
the amount of Latham & Watkins' retainer was approximately
US$6,200.

As of bankruptcy filing, Mr. Bassewitz continues, the Debtors do
not owe the firm any amounts for legal services rendered before
the Petition Date.  During the one year prior to the Petition
Date, the firm received a total of $5,755,181 in compensation
from the Debtors.

Mr. Heller, Esq., a partner at the firm, assures the Court that
Latham & Watkins is a "disinterested person" as that phrase is
defined in Section 101(14) of the Bankruptcy Code, as modified
by Section 1107(b).

Mr. Heller adds that Latham & Watkins has in the past
represented or currently represents certain of the Debtors'
creditors, equity security holders, or other parties-in-interest
in matters unrelated to the Debtors or the Chapter 11 cases.  
None of the representations are materially adverse to the
interests of the Debtors' estates, he says.

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/--
operates fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports
Clubs(R) and Sports Clubs of Canada (R) brands.  

Bally Total and its affiliates filed for chapter 11 protection
on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after
obtaining requisite number of votes in favor of their pre
packaged chapter 11 plan.  Joseph Furst, III, Esq. at Latham &
Watkins, L.L.P. represents the Debtors in their restructuring
efforts. As of June 30, 2007, the Debtors had $408,546,205 in
total assets and $1,825,941,54627 in total liabilities.  (Bally
Total Fitness Bankruptcy News, Issue No. 2; Bankruptcy
Creditors' Services Inc.
http://bankrupt.com/newsstand/or 215/945-7000).   


BENQ CORP: Plans Counterclaims Against German Unit and Prager
-------------------------------------------------------------
BenQ Corp is considering filing counterclaims against its German
subsidiary, BenQ Mobile GmbH & Co, and its insolvency
administrator Martin Prager, Forbes reports.

Mr. Prager, the report recounts, had earlier initiated two
lawsuits against BenQ in a court in Munich, demanding two
separate payments of EUR14.2 million and EUR68.9 million.

The insolvency case filed against the German unit resulted from
the Taiwan parent company's decision in September 2006 to cease
further investment in mobile handset unit, the report points
out.

According to BenQ, the lawsuits filed by Mr. Prager had to do
with certain accounts payable made by BenQ Mobile to the parent
company in 2006, which the unit now demands to be returned.

It said, however, that BenQ believes the relevant payments
demanded by Mr. Prager had been made as ordinary payments for
goods sold, Forbes says, citing BenQ's filing with the Taiwan
Stock Exchange.

The filing did not elaborate further, the report says.

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

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

BenQ Mobile has lost market share against giant competitors.  A
Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a
buyer for the company by the Dec. 31, 2006 deadline.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.

The outlook on the long-term rating is negative.  At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.

The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.


CHINA PROFIT: Proofs of Debt Due on August 17
---------------------------------------------
China Profit Development Limited, which is in liquidation, is
accepting proofs of debt from its creditors until August 17,
2007.

Creditors who cannot file their claims by the due date will be
excluded from the company's dividend distribution.

The company's liquidators are:

         Jacky CW Muk
         Edward S. Middleton
         Prince's Building, 8th Floor
         10 Chater Road, Central
         Hong Kong


FIAT SPA: Taps China's Chery Auto as Engine Supplier
----------------------------------------------------
Italy's Fiat Auto have signed a supply agreement with China's
Chery Automobile Co., Ltd., to supply Fiat with 100,000 engines
a year after months of negotiation, Xinhuanet News reports.

Citing a statement from the Chinese automaker's Web site, the
agreement calls for Cherry to supply 1.6 and 1.8-liter engines
that will be used in cars manufactured by Fiat in China and
abroad.

"The agreement means that Fiat, which has been testing Chery's
engines during the past year, has recognized the technologies
and quality of the engines developed by Chery," said Zhou Biren,
Chery's deputy general manager.

Yin Tongyao, chairman and general manager of Chery, said, "The
cooperation will help improve Chery's competitiveness on the
international market.  We are glad to cooperate with Fiat and
look forward to developing together."

Fiat Chief Executive Officer Sergio Marchionne was quoted as
saying that the agreement showed confidence by Chery and Fiat in
cooperation and paved the way for further cooperation.

Mr. Zhou added that both Fiat and Chery were exploring further
possibilities on cooperation.

                         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.


FRIGAID HK: Wind-Up Petition Hearing Set for Sept. 12
-----------------------------------------------------
On July 9, 2007, Chiang Ping Kai filed a petition to wind up the
operations of Frigaid HK & Traders Limited.

The petition will be heard before the High Court of Hong Kong on
Sept. 12, 2007, at 9:30 a.m.

Chiang Ping's solicitor is:

         Kenneth Sit
         Euro Trade Centre
         Room 1203, 12th Floor
         13-14 Connaught Road, Central
         Hong Kong


GO-LINK: Subject to BII Finance's Wind-Up Petition
--------------------------------------------------
On July 5, 2007, BII Finance Company Limited filed a petition to
have the operations of Go-Link Limited wound up.

The petition will be heard before the High Court of Hong Kong on
Sept. 12, 2007, at 9:30 a.m.

BII Finance's solicitor is:

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

Go-Link was formerly known as Classics Holdings Limited.


HONG KONG BDSTAR: Sets Members' Final Meeting for Sept. 5
---------------------------------------------------------
A final meeting will be held for the members of Hong Kong Bdstar
Limited on Sept. 5, 2007, at 10:00 a.m., on the 10th Floor of
Building A, Jinyujiahua Dasha, No. 9 at St. 3, Shangdi
Information Industrial Base in Haidian District, Beijing 100085,
China.

At the meeting, Zhou Ruxin, the company's liquidator, will give
a report about the company's wind-up proceedings and property
disposal.


IANCASTLE LIMITED: Placed Under Voluntary Liquidation
-----------------------------------------------------
On July 26, 2007, a special resolution was passed to voluntarily
liquidate Iancastle Limited.  Lam Wing Yi, Jerry, was then
appointed as liquidator for the company.

The Liquidator can be reached at:

         Lam Wing Yi, Jerry
         Island Place Tower, Unit 2605
         510 King's Road, North Point
         Hong Kong


KWAN TAT: Contributories and Creditors to Meet on August 28
-----------------------------------------------------------
The contributories and creditors of Kwan Tat Toys Manufactory
Limited will meet on August 28, 2007, at 11:00 a.m. and 12:00
noon at the office of Lawrence K.Y. Lo & Co. in Room 2206, 22nd
Floor, Hollywood Plaza, 610 Nathan Road, in Mongkok, Kowloon.


PIONEER LINK: Members to Receive Wind-Up Report on Sept. 4
----------------------------------------------------------
The members of Pioneer Link Limited will meet on Sept. 4, 2007,
at 3:00 p.m., to receive the liquidator's report about the
company's wind-up proceedings and property disposal.

The meeting will be held at Block E, 3rd Floor of Wang Cheong
Building, 251 Reclamation Street in Kowloon.

Pioneer Link's Liquidator is:

         Mo Kai Tak Alfred
         Block E, 3/F
         Wang Cheong Building
         251 Reclamation Street, Kowloon
         Hong Kong

                       About Pioneer Link

Pioneer Link Ltd manufactures clothes and accessories for women,
children, and infants.


SUPER (EXPRESS): Court to Hear Wind-Up Petition on Aug. 29
----------------------------------------------------------
A petition to wind up the operations of Super (Express)
Warehouse & Transportation Limited will be heard before the High
Court of Hong Kong on August 29, 2007, at 9:30 a.m.

The petition was filed by Fung Yuen Ting on June 25, 2007.


WELLFINE (HK): To Pay Dividend to Creditors on Aug. 23
------------------------------------------------------
Wellfine (HK) Limited, which is in liquidation, will be paying a
dividend to its creditors on August 23, 2007.

The company will pay 100% of preferential dividend and 0.993% to
the ordinary dividend.

The company's liquidator is:

         Kenny King Ching Tam
         Nan Fung Tower
         Room 908, 9th Floor
         173 Des Voeux Road, Central
         Hong Kong


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

DRESSER-RAND: Unable to Agree on Labor Contract with IUE-CWA
------------------------------------------------------------
Dresser-Rand Group Inc. and IUE-CWA Local 313 negotiating teams
failed to reach agreement on a new contract, resulting in a
strike at the facility.  The contract expired Aug. 3, 2007.

Elizabeth C. Powers, Vice President and Chief Administrative
Officer said, "We are very disappointed in not being able to
reach a satisfactory agreement.  Ms. Powers said that the
company is now in the process of implementing a multi- phase
contingency plan that has been designed to allow for
uninterrupted service to its clients."

The company stated in its second quarter 2007 earnings release
of July 31, 2007, that it maintains its commitment to the long
term competitiveness of its operations and believes any short
term adverse impacts to its business are worth incurring for
whatever period necessary to meet its long term objectives.

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.


IFCI LTD: Board OKs Inviting EOIs; Accept Bids Starting Aug. 13
---------------------------------------------------------------
IFCI Ltd's board of directors, at its meeting on Aug. 4, 2007,
approved the move for the company to invite expressions of
interest for a strategic investor, a filing with the Bombay
Stock Exchange says.  The board approved in principle a proposal
for the move early July.

As reported by the Troubled Company Reporter-Asia Pacific on
July 3, IFCI has tapped Ernst & Young to look for a strategic
investor, in whom the company plans to divest a 26% stake.  
After the induction of the strategic investor, the equity base
of IFCI will expand and the shareholding of existing investors
will come down.  IFCI wants to raise as much as US$250 million
by selling up to 26% in fresh equity to the strategic investor.  
Citigroup and Lehman Brothers are reportedly leading the race to
acquire the stake.

The process of inviting EOIs will kick off from Aug. 13, India
Infoline News Service reports.  According to the news agency,
the last date for submission of EOIs is Sept. 14, after which
IFCI would shortlist the best suitable candidate.

Request for proposal will be issued on Oct. 1, and the entire
process for the sale of 26% stake would be complete by the end
of January, Infoline relates.

Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and
Barclays are interested in buying the stake, Reuters says citing
a business daily.

In the same BSE filing, IFCI disclosed the appointments of
Vinayak Chatterjee and Dr. Shobhit Mahajan as additional
directors.

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

                          *     *     *

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

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


ITI LIMITED: Incurs INR1.3 Bil. Net Loss in Qtr. Ended June 30
--------------------------------------------------------------
ITI Limited incurred a net loss of INR1.29 billion in the three
months ended June 30, 2007, despite increased revenues.   The
bottom line, however, is a step up compared to the
INR1.39-billion loss booked in the same period in 2006.

The company's total income rose 26% from INR1.77 billion in the
April-June 2006 quarter to the latest reporting period's
INR2.23 billion, which includes net sales of INR2.17 billion.

For the April-June 2007 quarter, the company's total
expenditures rose by 9% to INR2.84 billion bringing an operating
loss of INR603.5 billion.  The company booked interest charges
of INR588 million, depreciation of INR94.8 million and taxes of
INR1.7 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?222a

ITI Limited -- http://www.itiltd-india.com/default.htm-- is a  
telecom company, which manufactures a range of telecom
equipment, including switching products; transmission systems,
such as satellite communication systems, optical line
terminating equipments and digital microwave systems; access
products, such as fixed wireless local loop systems and digital
local loop carriers; terminal equipment, such as telephones,
integrated services digital network products and video
conferencing systems; microelectronic products and software;
information technology products and telecom products for the
defense sector, and other products, including solar power
systems and bank mechanizing products.  It also provides value-
added services, such as shared hub very-small aperture terminal
(VSAT) services, and public mobile radio trunked services and
turnkey solutions.  Its customers include The Department of
Telecommunications, defense, railways, oil sector and corporates
in India, and certain African and South Asian nations.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
Apr. 23, 2007, that Credit Analysis & Research Ltd. revised the
rating assigned to the 'L' series long term bond issue of ITI
Limited to CARE D (SO) [Single D (Structured Obligation)] from
CARE AAA (SO) [Triple A (Structured Obligation))] with Credit
Watch.  The rating revision took into account the delay in the
interest payment of the above said bond issue.

TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned
final National ratings of 'D(ind)(SO)' to  ITI's INR550 million
'J-1' Series long-term bonds.

ITI has incurred losses for at least two consecutive years --
INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06.  The
company is a sick company as per provisions of India's Sick
Industrial Companies Act 1985.


JCT ELECTRONICS: Net Loss Narrows to INR108 Mil. in 1st Quarter
---------------------------------------------------------------
JCT Electronics Ltd. incurred a net loss of INR108.2 million in
the first quarter ended June 30, 2007, an improvement compared
with the INR491.5-million loss booked in the corresponding
quarter last year.

The company's total income improved from INR757.4 million to the
current reporting period's INR850.9 million, which includes net
sales of INR844.2 million.  Expenditures increased 12% to
INR891.9 million.

The narrowing net loss, however, is mostly brought about by
interest charges, which sharply fell to INR41 million from
INR344.7 million in the June 2006 quarter.

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

               http://ResearchArchives.com/t/s?2229

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

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

The Troubled Company Reporter-Asia Pacific reported on
July 20, 2007, that JCT Electronics has a stockholder's equity
deficit of INR165.74 million.


TECUMSEH PRODUCTS: Names Edwin L. Buker as Chief Exec. Officer
--------------------------------------------------------------
Tecumseh Products Company has appointed Edwin "Ed" L. Buker as
its chief executive officer.

Mr. Buker, whose appointment is effective Aug. 13, 2007, joins
Tecumseh from Citation Corporation, a supplier of metal
components based in Birmingham, Alabama, where he had served as
president and chief executive officer since March 2002.

Prior to joining Citation, Mr. Buker, 54, served as vice
president and general manager of the Chassis Systems Division at
Visteon Automotive; as president, Electrical Systems-The
Americas, for United Technologies Automotive; and as vice
president of new model development for BMW Manufacturing
Corporation in Munich, Germany.

He also held leadership positions at BMW's Spartanburg, South
Carolina, facility and at Honda's East Liberty, Ohio,
manufacturing plant.  Among other accomplishments, Mr. Buker was
co-leader of the design, building and operations management of
Honda's East Liberty facility and of BMW's Spartanburg plant.  
Mr. Buker holds a bachelor's degree in mechanical engineering
from Tri-State University in Angola, Indiana, and an MBA from
Ohio University in Athens, Ohio.

"The appointment of Ed Buker as chief executive officer adds a
seasoned, proven, highly successful executive to Tecumseh,"
David M. Risley, chairman of Tecumseh, said.  ''His
manufacturing expertise, customer orientation and overall
management and strategic acumen make him an ideal choice to lead
Tecumseh's continuing efforts to improve its operational and
financial performance."

Mr. Buker will become a member of Tecumseh's board of directors
when he joins the company this month, and will eventually
succeed Mr. Risley as chairman.

Since January 2007, the company has been functioning under the
leadership of interim president and chief operating officer
James J. Bonsall, who will provide transition services to
Mr. Buker before returning to his ongoing role as a managing
director of AlixPartners LLP.  

"Jim Bonsall provided capable leadership at a challenging time
for the company," Mr. Risley said.  I want to thank Jim for his
outstanding work at Tecumseh in our continuing efforts to place
the company on a solid strategic, operational and financial
footing.  Tecumseh has a long and proud history of serving
customers around the world.  We look forward to Ed's role as a
team builder and team leader as Tecumseh continues to serve its
customers and drive for improved performance and market
position."

                  About Tecumseh Products Company

Headquartered in Tecumseh, Mich., Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--  
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors.  The company has offices in Italy,
United Kingdom, Brazil, France, and India.

At March 31, 2007, the company's balance sheet showed total
assets of US$97.3 million, total liabilities of US$101.4
million, resulting to a shareholders' deficit of US$4.1 million.


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

FOSTER WHEELER: Two Units Win Saudi Aramco's Services Contract
--------------------------------------------------------------
Foster Wheeler Ltd.'s subsidiaries in its Global Engineering and
Construction Group, Foster Wheeler Energy Limited and Foster
Wheeler Arabia Limited, have been awarded a front-end
engineering design and program management services contract by
Saudi Aramco for the Karan onshore gas processing facilities at
Khursaniyah, Kingdom of Saudi Arabia.

The Foster Wheeler contract value was not disclosed.  The award
will be included in the company's second-quarter 2007 bookings.

The onshore gas processing facilities will process one billion
standard cubic feet per day of gas from the Karan offshore gas
field, which is being developed on a fast-track basis to come
onstream in 2011.  The new onshore facilities are expected to
deliver sales gas to meet the growing Saudi demand for gas.  In
addition, a small percentage of the sales gas will be utilized
for the plant fuel and 640 tonnes per day of sulfur will be
produced.  The facilities would comprise gas processing trains,
and would include acid gas removal, dehydration, sulfur
recovery, substations and all associated utilities and
infrastructure.

"This award further demonstrates the confidence that Saudi
Aramco has in the quality of our technical and project execution
expertise," said Steve Davies, chairman and chief executive
officer, Foster Wheeler Energy Limited.  "We are immensely proud
of our long and successful track record of delivering upstream
and downstream projects for both Saudi Aramco and its joint
venture partners.  We are fully committed to meeting these same
high standards for technical excellence and service for the
Karan gas program."

"The Karan project will push economic development and enhance
the hydrocarbon resources in the Kingdom by increasing sales gas
production capacity in commercial quantities.  That gas,
estimated at one billion standard cubic feet per day, when
linked to the Master Gas System will provide fuel and feedstock
to petrochemical industries and will provide jobs for Saudi
citizens," commented Ali A. Al-Ajmi, vice president, project
management, Saudi Aramco.

                      About Foster Wheeler

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

The company has offices in China, India, Indonesia, Malaysia,
Singapore, Thailand, and Vietnam.

                         *     *     *

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

                  Asbestos Management Program

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


GOODYEAR TIRE: Closes Engineered Products Sale for US$1.475 Bil.
----------------------------------------------------------------
The Goodyear Tire & Rubber Company has completed the previously
announced sale of substantially all of its Engineered Products
business to EPD, Inc., an entity sponsored by Carlyle Partners
IV, L.P., for US$1.475 billion, subject to certain post-closing
adjustments.

"The completion of the sale of the Engineered Products business
is the culmination of the Capital Structure Improvement Plan we
began in 2003," said Robert J. Keegan, Goodyear chairman and
chief executive officer.  "This plan has been critical in
creating a more competitive balance sheet that will now enable
us to execute against our growth strategy by providing reliable
access to capital throughout the economic cycle."

Goodyear anticipates net proceeds of approximately US$1.4
billion net of transaction costs, taxes and other agreed-upon
payments related to employee buyouts and retirement benefits.  
It expects to record an after-tax gain on the sale in the third
quarter of 2007.

The company expects to use the proceeds to reduce debt, address
legacy obligations and invest in growing its core consumer and
commercial tire businesses.  Goodyear's global strategy includes
additional investment to increase high value added production
capacity by 40 percent over five years and increase low cost
capacity by 33 percent in existing plants as part of the
strategy to drive low cost capacity to 50 percent of its total.  
Consistent with these global investment plans, Goodyear has
agreed with the United Steelworkers to extend its commitment to
invest in high value added capacity in North America beyond the
previously announced three-year commitment.

The Engineered Products business operates 32 facilities in 12
countries and has approximately 6,300 associates.  It
manufactures and markets engineered rubber products for
industrial, military, consumer and transportation original
equipment end-users.

            About The Goodyear Tire & Rubber Company

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

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on June 8,
2007, that Standard & Poor's Ratings Services raised its ratings
on the class A-1 and A-2 certificates from the US$46 million
Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-
Backed Series 2001-34 Trust to 'B' from 'B-' and removed them
from CreditWatch, where they were placed with positive
implications on May 14, 2007.

The rating actions reflect the May 31, 2007, raising of the
rating on the underlying securities, the 7% notes due March 15,
2028, issued by Goodyear Tire & Rubber Co., and its removal from
CreditWatch positive.

On March 15, 2007, that Fitch Ratings affirmed ratings for The
Goodyear Tire & Rubber Company and revised the Rating Outlook to
Stable from Negative.

   -- Issuer Default Rating 'B';

   -- US$1.5 billion first lien credit facility 'BB/RR1';

   -- US$1.2 billion second lien term loan 'BB/RR1';

   -- US$300 million third lien term loan 'B/RR4';

   -- US$650 million third lien senior secured notes 'B/RR4';

   -- Senior unsecured debt 'CCC+/RR6'.

Goodyear Dunlop Tires Europe B.V.

   -- EUR505 million European secured credit facilities 'BB/RR1'

Moody's Investors Service affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1.  Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed,
as was the company's Speculative Grade Liquidity rating of
SGL-2.  The outlook has reverted to stable from negative.


HUNTSMAN CORP: Holders Connected w/ MatlinPatterson Sell Shares
---------------------------------------------------------------
Huntsman Corporation disclosed that certain existing
stockholders affiliated with MatlinPatterson Global Advisers LLC
have entered into an underwriting agreement providing for a
registered public secondary sale of 56,979,062 shares of
Huntsman common stock.  

This sale is pursuant to the shelf registration statement filed
with the Securities and Exchange Commission on July 31, 2007.
The sale is expected to close on Aug. 6, 2007, subject to
customary closing conditions.

Huntsman will not receive any of the proceeds from this
offering.

Credit Suisse Securities (USA) LLC is the underwriter for the
offering.

A copy of the prospectus and, when available, a copy of the
prospectus supplement may be obtained from:

     Credit Suisse Prospectus Department
     One Madison Avenue
     New York, NY 10010
     Tel 1-800-221-1037


                          About Huntsman

Huntsman Corporation -- http://www.huntsman.com/-- is a global     
manufacturer of differentiated and commodity chemical products.
Huntsman's products are used in a wide range of applications,
including those in the adhesives, aerospace, automotive,
construction products, durable and non-durable consumer
products, electronics, medical, packaging, paints and coatings,
power generation, refining and synthetic fiber industries.  The
company has operations in Indonesia, Italy and Guatemala.

The Troubled Company Reporter - Asia Pacific reported on Apr 02,
2007, Moody's Investors Service upgraded the corporate family
rating for Huntsman Corporation and Huntsman International LLC,
a subsidiary of Huntsman, to Ba3 from B1, and upgraded other
ratings as appropriate.  

The ratings on recently redeemed debt have been withdrawn.  The
outlook for Huntsman's ratings was moved to stable from
developing.

Summary of the ratings activity:

Upgrades:

   * Huntsman Corporation

     -- Corporate Family Rating, Upgraded to Ba3 from B1

   * Huntsman International LLC

     -- Corporate Family Rating, Upgraded to Ba3 from B1

     -- Senior Secured Bank Credit Facility, Upgraded to Ba1
        from Ba3, LGD2, 21%

     -- Senior Subordinated Regular Bond/Debenture, Upgraded to
        B2 from B3, LGD5, 89%

   * Huntsman LLC

     -- Senior Secured Regular Bond/Debenture, Upgraded to Ba1
        from Ba3, LGD2, 21%

     -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
        from B2, LGD4, 57%

Outlook Actions:

   * Huntsman Corporation

     -- Outlook, Changed To Stable From Developing

   * Huntsman International LLC

     -- Outlook, Changed To Stable From Developing

   * Huntsman LLC

     -- Outlook, Changed To Stable From Developing

Withdrawals:

   * Huntsman International LLC

     -- Senior Subordinated Regular Bond/Debenture, Withdrawn,
        previously rated B3

     -- Senior Unsecured Regular Bond/Debenture, Withdrawn,
        previously rated B2


On Jan. 23, 2007 Standard & Poor's Ratings Services affirmed
its 'BB-' corporate credit rating and other ratings on Salt Lake
City, Utah-based chemicals producer Huntsman Corp. and its
subsidiary Huntsman International LLC.


INDOSAT: Plans IDR1-Tril. Bond Issue for Capital Expenditure
------------------------------------------------------------
PT Indosat Tbk plans a IDR1-trillion bond issue this year to
finance capital expenditure, Reuters reports.

According to the report, Indosat has not yet decided the timing
for the bond launch, citing Indosat Finance Director Wong Heang
Tuck.

Indosat is planning to spend US$1 billion this year to expand
its network and infrastructures in a bid to get 5-6 million new
users in 2007, the report relates.

The report notes that the company has hired PT Andalan Artha
Advisindo and PT Danareksa Sekuritas to handle the issue. The
two brokerage firms also acted on behalf of the company in a
previous bond issue.

                          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
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.  

At the same time, Moody's has affirmed Indosat's Ba3 senior
unsecured foreign currency rating.  The rating outlook on the
bond remains positive which is in line with the outlook
on Indonesia's foreign currency country ceiling.

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.


KRONOS WORLDWIDE: Parent Posts Second Quarter 2007 Results
----------------------------------------------------------
Kronos Worldwide, Inc., the parent company of Kronos
International disclosed break even operations for the second
quarter of 2007 compared with net income of US$12.8 million, or
US$.26 per diluted share, in the second quarter of 2006.  For
the first six months of 2007, Kronos reported net income of
US$12.9 million, or US$.26 per diluted share, compared with net
income of US$28.5 million, or US$.58 per diluted share, in the
first six months of 2006.  The Company's results in the second
quarter of 2007 include an US$8.7 million non-cash provision for
income taxes, as discussed below.

Net sales of US$342.6 million in the second quarter of 2007 were
US$2.5 million, or 1%, lower than the second quarter of 2006.
Net sales of US$656.6 million for the first six months of 2007
were US$7.2 million, or 1%, higher than the first six months of
2006.  Net sales decreased in the second quarter of 2007
primarily due to lower average TiO2 selling prices and sales
volumes, partially offset by the favorable effect of
fluctuations in foreign currency exchange rates which increased
sales by approximately US$15 million.  For the year-to-date
period, net sales increased due to the favorable effect of
fluctuations in foreign currency exchange rates, increasing
sales by approximately US$31 million.  This increase was
partially offset by lower average TiO2 selling prices and sales
volumes.  The table at the end of this release shows how each of
these items impacted the overall increase in sales.

The Company's TiO2 segment profit for the second quarter of 2007
was US$25.5 million compared with US$37.3 million in the second
quarter of 2006, and was US$56.6 million for the first six
months of 2007 compared with US$74.5 million for the first six
months of 2006.  Segment profit decreased in the second quarter
of 2007 compared to the second quarter 2006 due to lower average
TiO2 selling prices and sales and production volumes and
slightly higher raw material costs, partially offset by the
positive effect of fluctuations in foreign currency exchange
rates which increased segment profit by approximately US$4
million.  Full year segment profit decreased primarily due to
lower average TiO2 selling prices and sales volumes and higher
raw material and energy costs, partially offset by the positive
effect of fluctuations in foreign currency exchange rates which
increased segment profit by approximately US$7 million.

The Company's second quarter 2007 TiO2 sales volumes decreased
2% from the second quarter of 2006, and volumes were 1% lower in
the year-to-date period, as higher sales volumes in Europe and
export markets were more than offset by lower volumes in North
America.  The Company's TiO2 production volumes were 2% lower
and 2% higher in the second quarter and first six months of 2007
respectively, as compared to the same periods in 2006, with TiO2
production volumes in the first six months of 2007 being a
record for Kronos.  The Company's finished goods inventories at
June 30, 2007, which represented approximately 2 months of
average sales, were lower compared to March 31, 2007.

The US$22.3 million loss on prepayment of debt in the second
quarter of 2006 relates to Company's May 2006 redemption of its
8.875% Senior Secured Notes, using the proceeds from its April
2006 issuance of 6.5% Senior Secured Notes.  Interest expense
was lower in the 2007 periods due primarily to such replacement
of the 8.875% Notes with the 6.5% Notes.

The Company's provision for income taxes in the second quarter
of 2007 includes an US$8.7 million non-cash charge related to
the adjustment of certain tax attributes of the Company's German
subsidiary.  The Company's income tax benefit in the first six
months of 2006 includes an aggregate tax benefit of US$12.6
million related to the withdrawal of certain income tax
assessments previously made by the Belgium and Norwegian tax
authorities, the favorable resolution of certain income tax
issues related to Belgium and Germany and a the enactment of a
reduction in Canadian income tax rates.  Substantially all of
this aggregate income tax benefit was recognized in the second
quarter of 2006.

Effective December 31, 2006 the Company adopted a new accounting
standard related to planned major maintenance expense.  Under
the new standard, the Company no longer accrues the cost of
planned major maintenance expense in advance but instead
recognizes the cost of planned major maintenance when incurred.
The new standard was adopted retroactively, and accordingly the
Company's net income in the second quarter of 2006 is
approximately US$.8 million, or US$.02 per diluted share, lower
than previously reported.  The effect of adopting the new
standard did not have a material impact on the 2006 year-to-date
results.

The statements in this release relating to matters that are not
historical facts are forward-looking statements that represent
management's beliefs and assumptions based on currently
available information.  Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, it cannot give any assurances that these
expectations will prove to be correct. Such statements by their
nature involve substantial risks and uncertainties that could
significantly impact expected results, and actual future results
could differ materially from those described in such forward-
looking statements. While it is not possible to identify all
factors, the Company continues to face many risks and
uncertainties.  The factors that could cause actual future
results to differ materially include, but are not limited to,
the following:

    -- Future supply and demand for the Company's products,

    -- The extent of the dependence of certain of the Company's   
       businesses on certain market sectors,

    -- The cyclicality of the Company's businesses,

    -- Customer inventory levels (such as the extent to which
       the Company's customers may, from time to time,
       accelerate purchases of TiO2 in advance of anticipated
       price increases or defer purchases of TiO2 in advance of
       anticipated price decreases),

    -- Changes in raw material and other operating costs (such
       as energy costs),

    -- The possibility of labor disruptions,

    -- General global economic and political conditions (such
       as changes in the level of gross domestic product in
       various regions of the world and the impact of such
       changes on demand for TiO2),

    -- Competitive products and substitute products,

    -- Customer and competitor strategies,

    -- Potential consolidation of our competitors

    --  The impact of pricing and production decisions,

    -- Competitive technology positions,

    -- The introduction of trade barriers,

    -- Fluctuations in currency exchange rates (such as changes
       in the exchange rate between the U.S. dollar and each of
       the euro, the Norwegian kroner and the Canadian dollar),

    -- Operating interruptions (including, but not limited to,
       labor disputes, leaks, natural disasters, fires,
       explosions, unscheduled or unplanned downtime and
       transportation interruptions),

    -- The timing and amounts of insurance recoveries,

    -- The ability of the Company to renew or refinance credit
       facilities,

    -- The ultimate outcome of income tax audits, tax
       settlement initiatives or other tax matters,

    -- The ultimate ability to utilize income tax attributes or
       changes in income tax rates related to such attributes,
       the benefit of which has been recognized under the more-
       likely-than-not recognition criteria,

    -- Environmental matters (such as those requiring emission
       and discharge standards for existing and new
       facilities),

    -- Government laws and regulations and possible changes
       therein,

    -- The ultimate resolution of pending litigation, and

    -- Possible future litigation.

                   About Kronos International

Kronos International Inc. -- http://www.kronostio2.com/-- is a  
wholly owned subsidiary of Kronos Worldwide, Inc., headquartered
in Dallas, Texas and produces titanium dioxide (TiO2) pigments
in Europe.  It has sales offices in the Asia Pacific, including:
Australia, Indonesia, Japan, Korea and the Philippines.

                          *     *     *

On Nov. 8, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. chemical and allied
products sectors, the rating agency confirmed its B1 Corporate
Family Rating for Kronos International, Inc. as well as the B2
rating on the Company's EUR400 million Senior Secured Notes due
2013.  Moody's also assigned an LGD5 rating to those debentures,
suggesting note holders will experience a 75% loss in the event
of a default.

Standard & Poor's Ratings Services lowered its corporate credit
rating on Valhi Inc. and its indirect subsidiary Kronos
International Inc. to 'BB-' from 'BB'.  At the same time,
Standard & Poor's lowered its rating on Kronos' EUR400 million
senior secured notes issue due 2013 to 'B' from 'B+'.  All
ratings remain on CreditWatch with negative implications, where
they were placed earlier this year in connection with an adverse
verdict in a Rhode Island lead pigment lawsuit.


MITEL NETWORKS: US$723MM Merger Gets Inter-Tel Shareholders' OK
----------------------------------------------------------------
Mitel Networks Corp. applauded Inter-Tel (Delaware) Incorporated
stockholders for approving the two companies' US$723 million
merger.  The vote fulfills another condition to the merger which
the company believes will create a market leader in the SMB IP
communications industry with the scale to strengthen and extend
its reach in the enterprise market.

"The company is delighted that Inter-Tel shareholders have voted
to approve the merger with Mitel," Don Smith, CEO of Mitel,
said.  "By bringing together the unique strengths of each
company, this transaction will accelerate our growth strategy.  
Together, we believe that Mitel and Inter-Tel will possess the
intellectual property, technology depth, breadth of portfolio,
managed services, partnerships, and people to be a leader in the
rapidly changing IP telephony landscape."

Subject to the outcome of the preliminary injunction hearing
arising from Inter-Tel's litigation before the Delaware Court of
Chancery, Mitel and Inter-Tel expect that the merger will close
after the Aug. 8, 2007, hearing.

              About Mitel Networks Corporation

Headquartered in Herndon, Virginia, Mitel Networks Corporation
-- http://www.mitel.com/-- delivers the full value of IP  
Communications through networked business solutions that help
customers achieve success through business process integration,
enhanced employee productivity, increased customer loyalty and
helping to generate new revenue streams.

The company has operations in Brazil, the United Kingdom and
Indonesia.

                           *     *     *

As reported in the Troubled Company Reporter on June 22, 2007,
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Ottawa-based Mitel Networks Corp.  
The outlook
is stable.


MOBILE-8 TELECOM: May Postpone US$150 Million Bond Issue
--------------------------------------------------------
PT Mobile-8 Telecom Tbk mulls whether to postpone or proceed
with its planned US$150 million bond issue, Reuters reports
citing a company statement.

According to the report, the company's hesitation is due to the
recent market volatility.  Global bond markets have been
generally weak in recent weeks, as investors have turned more
risk averse due to fears of losses in the troubled U.S. subprime
mortgage market.

Merza Fachys, Mobile-8's corporate affairs director, said that
Lehman Brothers is still studying whether we should go ahead or
not with the company plan.  Mobile-8 hired Lehman Brothers as
sole bookrunner for the bond.  This week they may come up with a
conclusion, the report relates.

The company presented its plan to investors last month but has
not priced the paper.

                   About Mobile-8 Telecom

Headquartered in Jakarta, Indonesia, PT Mobile-8 Telecom Tbk is
a part of Bimantara Group.  Established in 2002 and commercially
launched in 2003 is the fourth largest mobile cellular operator
in the country.  Its product is Fren, which offers pre-paid and
post-paid billing services.  The Company's other products and
services include Fren Prabayar, Fren Pascabayar, FrenSLI 01068,
Layanan, Value Added Services, Fren RingGo, TV MOBI and Fren
Mobile Internet.  Its subsidiaries, which provide mobile
cellular network services, are PT Komunikasi Selular Indonesia,
PT Metro Selular Nusantara and PT Telekomindo Selular Raya. As
of May 31, 2007, the three subsidiaries have been merged into
the Company.

                        *      *       *

The Troubled Company Reporter - Asia Pacific on July 24, 2007,
that Moody's Investors Service has assigned a B2 corporate
family rating to PT Mobile-8 Telecom Tbk and a B2 rating to the
proposed US$150 million senior, unsecured bonds issued by
Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8.
The outlook on the ratings is stable.  This is the first time
that Moody's has assigned a rating to the company.

Moody's expects to affirm the ratings and remove them from
provisional status upon the closing of the proposed bond issue.

On July 19, 2007, Standard and Poors assigned its 'B' long-term
corporate credit rating to Indonesia's wireless operator PT
Mobile-8 Telekom Tbk.  The outlook is stable.  At the same time,
Standard & Poor's assigned its 'B' rating to the proposed
US$150 million senior unsecured notes to be issued by Mobile-8
Telecom Finance B.V., a wholly owned subsidiary of Mobile-8.

Moody's Investors Service has assigned a B2 corporate family
rating to PT Mobile-8 Telecom Tbk and a B2 rating to the
proposed US$150 million senior, unsecured bonds issued by
Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8.
The outlook on the ratings is stable.


NORTEL NETWORKS: Posts US$37MM Net Loss in Qtr. Ended June 30
-------------------------------------------------------------
Nortel Networks Corp. results for the second quarter ended
June 30, 2007.

The company reported a net loss of US$37 million in the second
quarter of 2007, compared with net income of US$342 million for
the same period last a year ago.  

The net loss of US$37 million in the quarter ended June 30,
2007, included special charges of US$36 million for
restructuring, a US$35 million provision related to ongoing
discussions with the SEC, a gain of US$69 million due to
favourable effects of changes in foreign exchange rates and a
gain of US$10 million on the sale of assets.  

The net earnings in the second quarter of 2006 of US$342 million
included a shareholder litigation recovery of US$510 million
reflecting a mark-to-market adjustment of the share portion of
the global class action settlement, special charges of US$49
million for restructuring and a loss of US$12 million on the
sale of assets.  

"Good progress is being made in our effort to reshape Nortel to
deliver sustained value to shareholders.  On balance, the key
indicators of our financial health moved in a positive direction
in the quarter," said Nortel president and chief executive
officer  Mike Zafirovski.  "Gross margin of 41.1% was the
highest in eight quarters and the operating margin expanded
significantly on a year-over-year basis for the fourth
consecutive quarter.  Revenues were down 8% this quarter,
principally as a result of the UMTS divestiture and the timing
of contract completion.  Revenues were up 3% sequentially and we
are confident that the traction we are seeing with customers
will translate into much higher sequential growth for the
remainder of the year."

Revenues were US$2.56 billion for the second quarter of 2007
compared to US$2.78 billion for the second quarter of 2006.  

Deferred revenues decreased sequentially by US$29 million from
the first quarter of 2007.  Order input for the quarter was
US$2.68 billion, down from US$2.81 billion in the second quarter
of 2006 (note that second quarter of 2006 UMTS Access orders
associated with the assets sold were approximately US$184
million), and up from US$2.59 billion in the first quarter of
2007.

Carrier Networks (CN) revenues in the second quarter of 2007
were US$1.06 billion, a decrease of 16% compared with the year-
ago quarter and an increase of 5% sequentially.  In the second  
quarter, CN revenues were impacted by the UMTS Access
divestiture and decreases in legacy products, partially offset
by growth in VoIP and GSM compared with the year-ago quarter.  
Excluding the impact of the UMTS Access divestiture, CN revenues
decreased by 5% in the second quarter of 2007 compared with the
year-ago quarter.

Enterprise Solutions revenues in the second quarter of 2007 were
US$590 million, an increase of 23% compared with the year-ago
quarter and a decrease of 1% sequentially.  ES recorded the
fourth consecutive quarter of year over year growth, driven by
strong increases in the voice, data and applications businesses,
which was positively impacted by the timing of contract
completions.

Global Services revenues in the second quarter of 2007 were
US$494 million, a decrease of 9% compared with the year-ago
quarter, and an increase of 10% sequentially.  The year over
year decrease was largely due to a decrease in network
implementation services primarily due to the UMTS Access
divestiture and lower GSM services revenues, partially offset by
growth in network management and support services.  Excluding
the impact of the UMTS Access divestiture, GS revenues decreased
by 3% in the second quarter of 2007 compared with the year-ago
quarter.

Metro Ethernet Networks revenues in the second quarter of 2007
were US$363 million, a decrease of 16% compared with the year-
ago quarter and a decrease of 3% sequentially.  The year over
year decrease in revenues was primarily due to decreases in
long-haul optical revenues not repeated in the second quarter of
2007 (due to the completion of large optical contracts in the
second quarter of 2006) and in legacy data, partially offset by
increases in metro optical and carrier ethernet revenues.

Cash balance at the end of the second quarter of 2007 was
US$4.47 billion, down slightly from US$4.56 billion at the end
of the first quarter of 2007.  This decrease was primarily
driven by a cash outflow from operations of US$120 million.  The
cash balance includes net proceeds from the US$1.15 billion
convertible notes offering in March 2007.  In September 2007,
Nortel will redeem, at par, US$1.125 billion principal amount of
4.25% convertible notes plus accrued and unpaid interest.

                    Regulatory Investigations

As previously announced, in May 2007 the Ontario Securities
Commission approved a Settlement Agreement reached by the Staff
of the OSC and Nortel, which settlement fully resolved all
issues between Nortel and the OSC.  The decision recognized the
extensive efforts made by Nortel's senior management and Board
of Directors to be forthcoming and transparent in reporting
significant accounting and internal control issues, and then
solving them.

Nortel has been under investigation by the SEC since April 2004
in connection with previous restatements of its financial
statements.  As a result of discussions with the Enforcement
Staff of the SEC for purposes of resolving the investigation,
Nortel concluded that a reserve should be provided.  
Accordingly, an accrual was recorded in the second quarter of
2007 in the amount of US$35 million, which Nortel believes
represents its current best estimate for the liability
associated with this matter.  However, this matter is ongoing
and the ultimate outcome is still uncertain.

                             Outlook

Commenting on the company's financial expectations, David
Drinkwater, interim chief financial officer, Nortel said, "For
the full year 2007, we continue to expect revenues to be flat to
down slightly compared to 2006, reflecting a decrease in
revenues as a result of the UMTS Access disposition (note that
2006 UMTS Access revenues associated with the assets sold were
approximately US$660 million).  We continue to expect full year
2007 gross margin to be in the low 40's, as a percentage of
revenues, and we now expect operating margin to be around 5
percent, of revenues).  For the third quarter of 2007, we expect
revenues to be down in the mid single digits compared to the
year ago quarter (note that third quarter 2006 UMTS Access
revenues associated with the assets sold were approximately
US$156 million).  We expect third quarter 2007 gross margin to
be around 40, as a percentage of revenue, and operating expenses
(SG&A and R&D) to be down slightly, compared to the year ago
quarter."

At June 30, 2007, the company's consolidated balance sheet
showed US$18.95 billion in total assets, US$15.35 billion in
total liabilities, US$788 million in minority interests in
subsidiary companies, and US$2.81 billion in total stockholders'
equity.

                      About Nortel Networks

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

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

                          *     *     *

On March 27, 2007, Moody's Investors Service affirmed Nortel  
Networks' existing ratings, including its B3 corporate family  
rating, and assigned a B3 rating to the proposed US$1 billion  
convertible senior unsecured notes offering.  Proceeds of the  
offering will be used to refinance a portion of the US$1.8  
billion in 4.25% convertible notes due in 2008 when they become  
payable at par.  Moody's said the outlook remains stable.

On March 26, 2007, Standard & Poor's Ratings Services assigned  
its 'B-' debt rating to Canada-based Nortel Networks Corp.'s  
proposed US$1 billion senior unsecured convertible notes, which  
will consist of two tranches of USUS$500 million, maturing in  
2012 and 2014, respectively.  Proceeds from the convertible  
notes will be used to partially refinance NNC's US$1.8 billion  
senior unsecured convertible notes due Sept. 1, 2008, and  
therefore the overall debt level is not expected to change.   
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'  
short-term corporate credit ratings on 100%-owned Canada-based  
subsidiary, Nortel Networks Ltd.  At the same time, the ratings  
on the US$200 million notes of NNL and the US$150 million notes  
of Nortel Networks Capital Corp. were lowered to 'CCC' from 'B-
'.  NNC, NNL, and the U.S.-based subsidiary, Nortel Networks  
Inc., are collectively referred to as Nortel.  S&P said the  
outlook on NNL is stable.

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


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

JAPAN AIRLINES: Net Loss Down to JPY4.2 Billion in First Quarter
----------------------------------------------------------------
The Troubled Company Reporter-Asia Pacific reported on Aug. 7,
2007, that Japan Airlines Corp.'s first-quarter operating loss
narrowed to JPY8.5 billion (US$73 million) from the
JPY31.9-billion operating loss recorded in the same period a
year earlier.

In an update, Japan Times notes that Japan Airlines managed to
reduce its group quarterly net loss to JPY4.2 billion in the
three months ended June 30, 2007.

According to the report, the net loss figure is about one-sixth
of the JPY26.7-billion net loss JAL reported for the first
quarter last year, thanks to improved profitability in domestic
and international flight operations.

However, JAL is still lagging behind its rival, All Nippon
Airways Co., which reported JPY13.2 billion in operating profit
in the first quarter, Japan Times says.

Sales dropped by 0.3 percent year-on-year to JPY520.6 billion
due to the exclusion of part of the sale of trading company
JALUX Inc., which was JAL's consolidated subsidiary until the
last business year, the report adds.


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.


TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend
--------------------------------------------------------------
The Timken Company's board of directors has declared a quarterly
cash dividend of 17 cents per share, an increase of 1 cent per
share.  The dividend is payable on Sept. 5, 2007, to
shareholders of record as of Aug. 17, 2007.  It will be the
341st consecutive dividend paid on the common stock of the
company.

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Argentina, Australia, Belgium, Brazil, Canada,
China, Czech Republic, England, France, Germany, Hungary, India,
Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania,
Russia, Singapore, South America, Spain, Taiwan, Turkey, United
States, and Venezuela and employs 27,000 employees.

                       *     *     *

The Timken Company carries Moody's Ba1 Long-Term Corporate
Family, Senior Unsecured Debt and Probability-of-Default
Ratings.  Moody's said the outlook was stable.


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

DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group
--------------------------------------------------------------
DURA Automotive Handels und Beteiligungs GmbH, a wholly owned
subsidiary of DURA Automotive Systems, Inc., has entered into a
joint venture agreement with MINTH Group Limited, to develop,
manufacture and sell automotive door frames, body-in-white door
modules and door pillar cappings for automakers based in China.
The new joint venture company will conduct business under the
name DURA MINTH AUTOMOTIVE SYSTEMS Co., Ltd. The transaction is
subject to final business license approvals.

"Establishing a DURA MINTH joint venture in China allows us to
expand our customer support in the Asian market for body and
trim components," said Larry Denton, DURA Automotive's chairman
and chief executive officer.  "Our customers will benefit from
the combination of MINTH's strong capabilities in the
manufacture of precision door and trim components, coupled with
DURA's world-class design and advanced manufacturing
technology."

The joint venture company will establish its initial
manufacturing operations at MINTH's existing facilities in
Chongqing, China.

"This agreement also provides access to DURA's established OEM
relationships, particularly with European automakers
manufacturing in China," said Mu Wei Zhong, vice president and
executive director of MINTH Group Limited.  "We look forward to
working closely with our joint venture partner to enhance our
growth opportunities."

The joint venture will be majority owned and controlled by DURA,
and the board of directors will be comprised of DURA and MINTH
executives.  The parent companies will contribute assets,
intellectual property and technical resources.

                 About MINTH Group Limited

MINTH Group Limited is a Cayman Island-based investment holding
company.  Through its subsidiaries, the company is engaged in
the manufacturing, processing, development and sale of exterior
automobile body parts and molds of passenger cars.  It designs,
manufactures and sells trim, decorative parts and body
structural parts.  These products are sold to the auto parts
industry in the People's Republic of China.

                     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.


KRISPY KREME: S&P Puts B- Corporate Credit Rating
-------------------------------------------------
Standard & Poor's Ratings Services has assigned its ratings,
including its corporate credit rating of 'B-', to Winston Salem,
N.C.-based Krispy Kreme Doughnuts Inc.  The outlook is negative.

At the same time, Standard & Poor's assigned its bank loan and
recovery ratings to the US$160 million senior secured credit
facility borrowed by Krispy Kreme Doughnut Corp., a subsidiary
of Krispy Kreme.  The facility is rated 'B', one notch above the
corporate credit rating on Krispy Kreme, and assigned a '2'
recovery rating, indicating the expectation for substantial
(70%-90%) recovery of principal in the event of default.  The
facility consists of a US$50 million revolving credit facility
and a $110 million first-lien term loan, of which US$101 million
was outstanding as of April 29, 2007.  Krispy Kreme guarantees
the debt of its subsidiary.

"The negative outlook reflects the company's material weaknesses
over reporting controls, which may cause errors or delays in the
company's filing of its financial statements," explained
Standard & Poor's credit analyst Charles Pinson-Rose.  
Furthermore, we believe that the company's U.S. operations are
vulnerable to competitive inroads.  "If the company cannot file
its financial statements in a timely fashion," added Mr. Pinson-
Rose, "the rating will likely be downgraded."

                       About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded   
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed.  There are currently
approximately 323 Krispy Kreme stores and 79 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

The company generates revenues from three distinct sources:
company-owned stores, franchise fees and royalties from
franchise stores, and a vertically integrated supply chain.


MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30
--------------------------------------------------------------
Milacron Inc. posted a net loss for the second-quarter ended
June 30 of US$0.1 million on sales of US$197 million.  (Per
share amounts include accrual for preferred dividends).  This
compares to a net loss of US$14.3 million on sales of US$211
million in the second quarter of 2006.  Results in the second
quarter of 2007 included a US$4.9 million tax benefit and US$1.5
million in restructuring costs with no tax benefit, whereas the
year-ago quarterly loss included a US$0.9 million provision for
income taxes and US$8.8 million in restructuring charges also
without tax benefit.

"Throughout the world our employees are working hard executing
our strategies and we are seeing positive benefits from these
efforts," said Ronald D. Brown, chairman, president and chief
executive officer.  "The previously announced cost-reduction
measures are generating the savings we projected.  Moreover, we
continue to achieve positive results from our key sales growth
initiatives: expanding our presence in emerging markets, while
focusing more attention on aftermarket services in our
traditional markets of North America and Western Europe.
Milacron's orders from emerging markets are up 23% over last
year and now constitute nearly one-quarter of our total
business.  And our aftermarket sales have grown another 6% so
far this year," he said.

Sales and earnings growth in overseas markets continued to
offset the ongoing weakness in the automotive and housing
sectors of the North American economy. New orders in the quarter
were US$202 million, compared to US$200 million in the second
quarter last year, with favorable currency translation effects
accounting for the increase.  The backlog of unfilled orders
rose to US$132 million, up from US$127 million at the end of the
first quarter and US$107 million a year ago.  Manufacturing
margins in the second quarter improved to 19.6% from 19.1% in
the second quarter 2006, primarily as a result of cost-reduction
initiatives.

Cash on hand at the end of the quarter was in excess of US$31
million, and the company had more than US$33 million available
for borrowing under its asset-based revolving credit facility.
Liquidity (cash plus borrowing availability) of US$65 million
was down from US$73 million at the beginning of the quarter.
The change was primarily the result of a semi-annual interest
payment of US$13 million made in May, partially offset by
primary working capital reductions during the quarter.

                            Outlook

"With our increased backlog, Milacron is poised to show
continued quarterly improvement in sales and operating earnings
in the second half of the year.  Outside of North America, we're
enjoying good growth in virtually all our major markets.  And in
North America we are dealing with the current downturn through
cost reductions and other measures, all the while maintaining
the resources needed to take advantage of an eventual recovery.
At this point we are projecting approximately 3% overall sales
growth in 2007, with significantly improved operating profits,"
Mr. Brown said.

                            Dividends

No dividends were declared on Milacron's common stock.  The
board declared a quarterly dividend of US$10.00 per share on its
4% Series A cumulative preferred stock.  The company continues
to accrue dividends on its 6% Series B convertible preferred
stock.  Milacron currently has outstanding: 6,000 shares of 4%
cumulative preferred stock, 500,000 shares of 6% Series B
convertible preferred stock, and approximately 5.5 million
shares of common stock.

                      About Milacron Inc.

Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ)
-- http://www.milacron.com/-- is a leading global manufacturer   
and supplier of plastics-processing equipment and related
supplies.  Milacron is also one of the largest global
manufacturers of synthetic water-based industrial fluids used in
metalworking applications.  The company has major manufacturing
facilities in: North America, Europe, and Asia.  Milacron's
annual revenues approximated US$805 million over the last twelve
months.

The company has an office in South Korea, and joint ventures in
China and India.

                          *     *     *

As reported in the Troubled Company Reporter on Jan. 2, 2007,
Standard & Poor's Ratings Services revised its outlook on
Cincinnati, Ohio-based Milacron Inc., to developing from
negative.  At the same time, Standard & Poor's affirmed its
ratings on the company, including its 'CCC+' corporate credit
rating.

Moody's Investors Service affirmed the Caa1 corporate family
ratings of Milacron Inc. and the Caa1 rating of the company's
US$225 million of 11.5% guaranteed senior secured notes due
2011.


QUANTUM CORP: Posts US$22.6MM Net Loss in Qtr. Ended June 30
------------------------------------------------------------
Quantum Corp. disclosed its results for the fiscal first quarter
ended June 30, 2007.

The company reported a GAAP net loss of US$22.6 million for the
first quarter of fiscal 2008, compared to a net loss of US$3.6
million in the first quarter of fiscal 2007.  The US$22.6
million net loss in the first quarter of fiscal 2008 reflected a
number of major expense items totaling US$28 million, much of
which was also driven by the ADIC acquisition: US$13 million in
amortization of intangibles, US$12 million in restructuring and
other transition expenses related to the acquisition, and S$3
million in stock-based compensation charges.  Revenue for the
first quarter of fiscal 2008 was US$246 million.  This
represented a 32% increase over the same quarter last year,
largely resulting from Quantum's acquisition of Advanced Digital
Information Corp. in August 2006.

One of the highlights of the June quarter was Quantum's gross
margin results.  The company's GAAP gross margin rate was 31.8%,
a significant increase over the 27.9% rate in the same quarter
last year and its best performance in three years.  Operating
expenses were US$92 million, up from US$55 million in the first
quarter of fiscal 2007 primarily as a result of the ADIC
acquisition.

"It has been just under a year since we completed the ADIC
acquisition, and we are very pleased with what we have been able
to achieve as a combined company in this relatively short time,"
said Rick Belluzzo, chairman and chief executive officer of
Quantum.  "As in previous years, the June quarter was
challenging from a revenue standpoint, but our operating income
as a percentage of revenue over the last three quarters has been
the best we've achieved in more than five years, when
amortization, stock-based compensation and acquisition-related
expenses are excluded.  In addition, we've completed the vast
majority of the integration and strategic actions that will now
allow us to focus on growing the business by taking advantage of
our expanded opportunities."

Quantum's product revenue, which includes sales of the company's
hardware and software products and services, totaled US$222
million in the first quarter of fiscal 2008.  This represented a
net increase of US$63 million over the first quarter of fiscal
2007, with greater revenue contributions from tape automation,
disk systems and software, and services offsetting a decline in
royalties and device revenues.  Quantum continued to increase
the percentage of its product revenue coming from branded sales,
which rose to 58% in the June quarter.

Quantum had US$24 million in royalty revenue for the first
quarter of fiscal 2008, down approximately US$3.5 million from
the same quarter last year.

                Disk Systems and Software Momentum

In announcing its June quarter results, Quantum also highlighted
the momentum in its disk systems and software business.  The
company began shipping its DXi3500 and DXi5500 disk backup
appliances with data de-duplication and remote replication
capabilities less than six months ago, and in the last two
months alone has sold nearly twice as many units as it did in
the previous four months.  These DXi-Series products have
attracted a broad range of customers around the world -- from
smaller organizations to leading brand name companies to major  
governmental agencies -- with representation across a wide array
of industries, including telecommunications, financial services,
health care, education, technology, and consumer products.

Quantum also pointed to several competitive advantages that
position it to capitalize on the opportunities in disk-based
data protection moving forward.  Along with Quantum's global
scale and strong sales and service infrastructure, these
advantages include a large installed base of tape automation
customers it can help in transitioning to disk backup and an
industry-leading tape library portfolio the company can leverage
in bundled disk-tape offerings. Quantum is already seeing the
benefits of this combination, as roughly 20% to 25% of customers
that purchase a DXi-Series unit also buy tape at the same time.

In addition to building momentum in its disk-based backup
business over the last several months, Quantum has strengthened
its StorNext data management software portfolio.  In April, the
company introduced StorNext 3.0, which extends high performance,
resilient data sharing to local area network clients and offers
data de-duplication for archiving.  Quantum has also enhanced
its StorNext market position with HP as a global reseller and
continued to gain new enterprise customers such as Microsoft,
Fox News and the U.S. Bureau of Land Management.

At June 30, 2007, the company's consolidated balance sheet
showed US$1.1 billion in total assets, US$872.0 million in total
liabilities, and US$238.4 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?2209

                        About Quantum Corp.

Based in San Jose, California, Quantum Corp., (NYSE: DSS) --
http://www.quantum.com-- formerly a maker of hard disk drive   
for desktop computers, now produces digital linear tape
technology, such as DLT devices, automated tape library systems,
and the tape cartridges used in these systems.  The company has
offices in these Asia-Pacific countries: Australia, China, Hong
Kong, India, Japan, Korea, Malaysia, Singapore.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Aug. 30, 2006 that Standard & Poor's Ratings Services revised
its rating and recovery rating on Quantum Corp.'s proposed
first-lien bank facility to 'B+' and '1' from 'B' and '3',
respectively, following a recent amendment to the terms of the
proposed financing of Quantum's acquisition of Advanced Digital
Information Corporation.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Hardware sector this week,
the rating agency confirmed its B3 Corporate Family Rating for
Quantum Corp.  

Moody's also revised and held its probability-of-default ratings
and assigned loss-given-default ratings on these two loans and a
bond issue:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   USUS$150 million
   Sr. Sec. Revolver
   due 2009             B2       Ba3      LGD2     24%

   USUS$225 million
   Sr. Sec.
   First Lien Facility
   due 2012             B2       Ba3      LGD2     24%

   USUS$160 million
   Subordinated
   convertible notes
   due 2010             Caa2     Caa2     LGD6     91%


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

MANGIUM INDUSTRIES: Unit Faces Wind-Up Petition by SC Bank
----------------------------------------------------------
Mangium Industries Bhd's wholly owned subsidiary, Mangium
Sawmill Sdn Bhd, has been served with a wind-up petition by
Standard Chartered Bank Malaysia Berhad.

The wind-up petition was filed with the High Court in Sabah and
Sarawak at Kota Kinabalu as Winding-Up Petition No. K28-45-2007
on July 13, 2007, and a copy was served on the company and its
unit on July 27.  

The petition is scheduled for hearing on September 21, 2007, at
9:00 a.m.

Under the petition, Standard Chartered is claiming a demand
payment on a judgment dated December 7, 2001, for the sum of
MYR9,616,344.40 as at December 7, 2001, comprising
MYR8,907,178.24 being principal sum and MYR709,166.16 being
interest at the rate of 10.3% per annum.

Mangium Sawmill had filed an injunction application on July 16,
2007, to restrain the presentation and the proceedings of the
winding-up action.  The hearing of the injunction application is
fixed on August 28, 2007.

Mangium Industries is not expecting any major impact on its
operations brought by the petition as its unit currently does
not have any significant operations.

                    About Mangium Industries

Mangium Industries Berhad's principal activities are the
manufacture and trade of timber and timber related products.  
Other activities include provision of printing services,
publisher, printer consultants and advertisers, trading of
alcoholic beverages, general trading of office furniture,
operation and development of the plantation and investment
holding.  Operations of the Group are carried out in Malaysia.

The Troubled Company Reporter-Asia Pacific reported on May 25,
2007, that Mangium Industries, on May 22, became an affected
listed issuer pursuant to the provisions of Amended Practice
Note 17/2005, as its shareholders' equity on consolidated basis
is less than 25% of its issued and paid-up capital.  As an
affected listed issuer, Mangium is required to formulate and
implement a plan to regularize its financial condition within a
timeframe stipulated by relevant authorities.

Mangium's balance sheet as of March 31, 2007, showed total
assets of MYR45.09 million and total liabilities of
MYR93.33 million.  Shareholders' deficit in the company totaled
MYR46.11 million.


MEGAN MEDIA: Head Sells 2.96 Mil. Shares Ahead of Fraud Probe
-------------------------------------------------------------
Megan Media Holdings Bhd's executive chairman, Datuk Mohd Adam
Che Harun, disposed of a total of 6.26 million warrants of the
company between April 25 and May 4, 2007, The Edge Daily
reports, citing the company's regulatory filing with the Bursa
Malaysia Securities Bhd.

The transactions, according to the report, took place just
before Megan Media announced on May 4 that its subsidiaries --
Memory Tech Sdn Bhd and MJC (Singapore) Pte Ltd -- had defaulted
on maturing trade facilities amounting to MYR47.36 million.  
Pursuant to the company's announcement with the Malaysian
bourse, it said that it uncovered accounting fraud at Memory
Tech after an investigation.

Based on Megan Media's Aug. 3 filing, Mr. Mohd Adam sold the
block of warrants on the open market via five transactions,
which saw his warrants holdings in Megan Media being reduced to
63,700 units or 0.09%.  It was revealed that Mr. Mohd Adam had
been consistently selling his shares in Megan Media from March
to May, according to several previous filings with Bursa
Malaysia.  

Between March 9 and May 4, he sold a total of 2.96 million Megan
Media shares via open-market transactions and a filing on May 7
showed that his shareholding in the company had been reduced to
4.72 million or 2.32%, Gan Yen Kuan of The Edge relates.  

After announcing financial irregularities at Memory Tech, Megan
Media said on June 8 that the Securities Commission had begun
investigations into the company, the report says.  On June 19,
it was classified as a PN17 company, and was given eight months
to submit a substantive plan to regularize its financial
condition.

Megan Media released its fourth quarter results on July 2, 2007,
and surprised the investing public with an unaudited net loss of
MYR1.27 billion for the financial year ended April 30, 2007.


Megan Media Holdings Berhad' s principal activities are
manufacturing and trading data storage media products such as
computer diskettes, video cassette tapes, compact disc
recordable (CD-R's) and digital versatile disc recordable (DVD-
R's).  The Group operates in Malaysia, Singapore and other
countries.

The Troubled Company Reporter-Asia Pacific reported on June 11,
2007, that the Rating Agency Malaysia has downgraded the long-
term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman
Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3
(with a negative outlook) to D.

The BaIDS carries a corporate guarantee from MTSB's holding
company, Megan Media Holdings Berhad.  Concurrently, RAM has
lifted the Rating Watch (with a negative outlook) that had been
placed on MTSB on May 9, 2007, following the failure of MTSB and
MJC (Singapore) Pte Ltd, another wholly owned subsidiary of
Megan Media, to repay their trade facilities amounting to
MYR47.36 million.

On June 19, 2007, the company was classified as a PN17 company,
and was given eight months to submit a substantive plan to
regularize its financial condition.


SETEGAP BHD: Bursa Slaps Public Reprimand on Delayed Filing
-----------------------------------------------------------
The Bursa Malaysia Securities Bhd publicly reprimanded Setegap
Bhd after a delayed filing of its annual audited accounts for
the financial year ended Dec. 31, 2006, as required under the
listing requirements of the bourse.

According to the bourse, the company was required to submit its
report on April 30, 2007, but instead submitted the accounts
only on May 30.

Accordingly, the bourse slapped the company with the public
reprimand, taking into consideration that Setegap had
continously breached the same provision in the Listing
Requirements which also resulted to a reprimand and fines.

"Bursa Securities views the above contravention seriously and
hereby cautions SETEGAP and its Board of Directors of their
responsibility to maintain appropriate standards of corporate
responsibility and accountability in order to achieve greater
disclosure and transparency to its shareholders and the
investing public," the bourse stressed after making the decision
to reprimand the company.  


Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying.  The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix.  The Group also
provides mechanical and electrical services, leases machinery
and investment holding.

Setegap's cash flow and profitability were affected by the Asian
financial crisis in 1997 and 1998.

Setegap Bhd's unaudited balance sheet as of Dec. 31, 2006,
showed total assets of MYR65.71 million and total liabilities of
MYR187.85 million, resulting to a shareholders' deficit of
MYR122.14 million.


SOLECTRON CORP: Special Stockholders' Meeting Set for Sept. 27
--------------------------------------------------------------
Solectron Corporation has set, on Sept. 27, 2007, a special
meeting of stockholders, to consider and vote upon the proposed
merger with Flextronics International Ltd.  

The meeting will be held at Solectron's principal executive
offices at 847 Gibraltar Drive, Building 5, Milpitas,
California, 95035 and will begin at 8:00 a.m. Pacific time.  The
record date for the meeting is Aug. 6, 2007.  A definitive joint
proxy statement/prospectus relating to the special meeting will
be mailed to stockholders beginning on or about Aug. 13, 2007.

                        About Solectron

Headquartered in Milpitas, California, Solectron Corp. (NYSE:
SLR) -- http://www.solectron.com/-- provides a full range of  
worldwide manufacturing and integrated supply chain services to
the world's premier high-tech electronics companies.  
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.  
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.   
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured ratings on Milpitas, California-based
Solectron Corp. to 'BB-' from 'B+', and its subordinated debt
rating to 'B' from 'B-'.  S&P said the outlook is stable.

On May 9, 2007, Fitch Ratings affirmed Solectron Corporation's
ratings as:

   -- Issuer Default Rating at 'BB-';
   -- Senior secured bank facility at 'BB+';
   -- Senior unsecured debt at 'BB-'; and
   -- Subordinated debt at 'B+'.


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

A&R WHITCOULLS: Rod Walker Replaces Tom Sturgess as Chairman
------------------------------------------------------------
A&R Whitcoulls Group Holdings Pty Ltd. disclosed the appointment
of Rod Walker to the role of non-executive chairman following
the resignation of Tom Sturgess.

Mr. Sturgess served as Chairman of A&R Whitcoulls for three
years and in that time he provided strategic oversight during a
significant turnaround program.  Mr. Sturgess has tendered his
resignation, effective on July 25, 2007, due to other business
responsibilities which require increased time commitment in an
executive capacity.

Incoming Chairman, Mr. Walker, said that Mr. Sturgess had
provided stewardship and guidance for the other members of the
Board and the management team during a critical time for the
company.

"Tom has provided invaluable guidance to A&R Whitcoulls and I
have enjoyed serving on the Board with him," said Mr. Walker.
"While it's a shame to see him move on, I wish him all the best
in his other business endeavours."

Mr. Walker will become the new Chairman effective July 30, 2007,
having served as a Non-Executive Director to A&R Whitcoulls
since October last year.  Mr. Walker has 30 years experience in
the retail and hospitality industries, working across Australia,
the United States and Canada. He currently runs his own
consulting business, specializing in organizational culture,
senior executive coaching and mentoring.

Prior to this, Mr. Walker was the managing director of Freedom
Group Limited, a major retailer, manufacturer and importer of
furniture and homewares in Australia, New Zealand and the United
Kingdom.

A&R Whitcoulls has also appointed Steven Cain to the role of
Non-Executive Director, effective today.  Mr. Cain has had
significant experience working in retail and consumer goods
having been Group Managing Director (Food, Liquor and Fuel) at
Coles Myer Ltd (Australia), CEO of Carlton Communications PLC
(UK), and an Executive Director of Asda PLC (UK) during its
turnaround in the 1990s.

Mr. Cain will join fellow Pacific Equity Partners
representatives Simon Pillar and Rickard Gardell to complete the
Board.  Pacific Equity Partners is the principal shareholder in
A&R Whitcoulls after acquiring the business in partnership with
management in May 2004.

                       About A&R Whitcoulls

Melbourne, New Zealand-based A&R Whitcoulls Group Holdings Pty
Ltd. -- http://www.arw.co.nz/-- is a specialty retail company   
operating across New Zealand and Australia.  The company
comprises a number of brands, which sell a range of products,
including books, magazines, stationery, calendars, gifts,
greeting cards and digital versatile discs (DVDs). Some of the
Company's subsidiaries include A&R Australia Holdings Pty
Limited, Angus & Robertson Pty Ltd, Angus & Robertson Bookworld
Calendar Club Pty Ltd, Supanews Angus & Robertson Pty Limited,
Whitcoulls Finance Trust, Whitcoulls Limited, Whitcoulls Group
Limited and WHSmith Hong Kong Limited. On October 18, 2005, A&R
Whitcoulls Group Holdings Pty Limited disposed of the travel
retail businesses in Hong Kong and Australian airports.

                          *     *     *

On July 31, 2007, the Troubled Company Reporter-Asia Pacific's
Distressed Bonds column listed A&R Whitcoulls Group's bond with
a 9.500% coupon and December 15, 2010 maturity date as trading
at 10.10% of its par value price.


AIR NEW ZEALAND: Reports Strong Market Conditions in June
---------------------------------------------------------
According to Air New Zealand, strong performance across the
network resulted in a passenger load factor -- how full its
flights are -- of 78.2%, 7.5 percentage points higher compared
to that in June 2006.

Passenger load factors on Tasman and Pacific Island routes
continue to track ahead of last year, with 75.3% of seats filled
in June.  This was 9.1 percentage points ahead of June 2006 and
is largely attributable to the rationalisation of Tasman
services earlier this year.

Long haul services also performed well in June with load factor
of 80.0% as compared to 72.5% in June 2006.  The airline says
the performance is particularly pleasing given that capacity has
increased significantly as the result of the introduction of
Shanghai and Hong Kong/London services during the year.

June performance has helped lift group wide year to date
passenger load factor from 75.0% in 2006 to 76.5% this year.

Year-to-date group-wide yields were 7.7% higher when compared
with the previous period.  Long and short-haul yields were up
8.8%and 7.5% respectively.  These YTD yield figures are
preliminary numbers and subject to the finalisation and audit of
the Air New Zealand June 2007 financial statements.

ANZ provides a summary of passenger load factors for June:

   -- Short-haul passenger load factor increased 7.2 percentage
      points to 75.4% when compared with June 2006.

   -- Domestic passenger load factor was up 2.7 percentage
      points to 75.6%.

   -- Tasman/Pacific Islands passenger load factor increased 9.1
      percentage points to 75.3%.

   -- Long-haul passenger load factor was up 7.5 percentage
      points to 80% when compared with June 2006.

   -- Asia/UK passenger load factor increased 9.2 percentage
      points to 74.4%.

   -- North America/UK passenger load factor increased 8.4
      percentage points to 84.4%.

ANZ informs the New Zealand Stock Exchange that it will release
on Aug. 28 its financial results for the year ended June 30,
2007.
                     About Air New Zealand

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

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

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


AIR NEW ZEALAND: To Add 3 Boeing 777-300ER to Long-Range Fleet
--------------------------------------------------------------
The Boeing Company and Air New Zealand have signed a definitive
agreement for the purchase of four Boeing 777-300ER (Extended
Range) jetliners and options for three additional 777-300ERs, as
the carrier continues its push toward operating the most fuel-
efficient fleet of airliners.

The signing and announcement event was attended by Air New
Zealand CEO Rob Fyfe and Boeing Commercial Airplanes Vice
President -- Asia Pacific Sales Stan Deal.  The ceremony took
place at Air New Zealand's Auckland headquarters.

The four new airplanes have an estimated value of $1.1 billion
at Boeing list prices and are powered by General Electric GE90-
115BL engines, the world's largest and most powerful commercial
jet engine.

"These new -300ERs will help us build on the success we've had
with our existing 777s," said Fyfe.  "There's no doubting the
777's passenger appeal, and its fuel efficiency is a very good
fit with our very strong commitment to the environment.

"Tourists come to New Zealand to enjoy our unspoiled
environment, so it's critically important that we bring them
here in the most fuel efficient aircraft," he said.

With its twin-engine efficiency, the 777-300ER reduces fuel
consumption by more than 20 percent per seat compared to its
closest competitor, therefore reducing CO2 emissions by more
than 20 percent.

Since entering into service in 2004, the overall fuel efficiency
of the 777-300ER has been improved by 3.6 percent through a
combination of improved fuel burn in service and enhancements to
the airplane. In addition, the range of the 777-300ER has
increased by 630 nautical miles (1200 km) since entry into
service.

"Air New Zealand is known for its customer focus and provides an
outstanding passenger experience, particularly with its 777-
200ER fleet," said Deal. "Air New Zealand was one of the first
to recognize the economic benefits of 777/787 mixed-fleet
operations and we believe that by giving passengers what they
want -- nonstop flights in modern planes -- Air New Zealand is
well positioned for continued success."

Air New Zealand will use the new 777s to replace its 747-400s.

Air New Zealand was the first airline in the South Pacific
region to become a 777 customer, with a 777-200ER delivery in
December 2005.  Air New Zealand currently operates an all-Boeing
twin-aisle fleet of eight 777-200ERs, eight 747-400s and five
767-300ERs.  Air New Zealand has also ordered eight 787-9
Dreamliners with options for a further eight.

The 777 family of airplanes is popular with passengers and
airlines alike due to its fuel-efficient twin-engine design,
high reliability, low operating costs, and comfortable and
spacious interior. The 777-300ER carries up to 365 passengers up
to 7,930 nautical miles (14,685 kilometers).

The 777 is the clear leader in the 300- to 400-seat segment with
65 percent of the market, and unfilled orders in excess of 340
airplanes valued at approximately US$87 billion at current list
prices.  Airlines worldwide have ordered more than 990 777s.

                     About Air New Zealand

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

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

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


AIR NEW ZEALAND: Wins NZ$45-Mil. Hawaiian Airlines Contract
-----------------------------------------------------------
Air New Zealand Technical Operations has won a five-year
contract to carry out heavy maintenance on Hawaiian Airlines'
fleet of 18 Boeing 767 aircraft.  The contract is worth around
NZ$45 million to Air New Zealand.

Air New Zealand Tech Ops General Manager Chris Nassenstein says
winning the contract meant the division had fulfilled its
promise to staff to become internationally competitive.  
Hawaiian Airlines President and Chief Executive Officer Mark
Dunkerley said Air New Zealand Tech Ops won the contract by
offering the best combination of experience and quality.

In-Flight Entertainment upgrade for A320s and B767s turns travel
into a movie session

Air New Zealand announced the first initiative sparked by its
review of domestic and Tasman operations.  The airline will be
spending more than NZ$50 million on equipping its 13 A320 and
five Boeing 767 aircraft with individual on-demand personal
entertainment screens.

The upgrade work will be undertaken in the second half of 2008
by Air New Zealand Tech Ops.

                       About Air New Zealand

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

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

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


AUCKLAND EUROPEAN: Names Buchanan and Macdonald as Liquidators
--------------------------------------------------------------
John Robert Buchanan and Callum James Macdonald were named as
liquidators of Auckland European & Sports Ltd. on July 11, 2007.

The newly appointed liquidators required the creditors of the
company to prove debts by August 22, 2007, or be excluded from
sharing in the company's dividend distribution.

The Liquidators can be reached at:

         John Robert Buchanan
         Callum James Macdonald
         Buchanan Macdonald Limited
         Chartered Accountants
         PO Box 101993, North Shore
         North Shore City 0745
         New Zealand
         Telephone:(09) 441 4165
         Facsimile:(09) 441 4167


DHARMA LTD: Fixes August 13 as Last Day of Claims Filing
--------------------------------------------------------
On July 10, 2007, the shareholders of Dharma Ltd. passed a
resolution to liquidate the company's business.  Neville Petrie
Fagerlund was appointed as liquidator.

Mr. Fagerlund fixes August 13, 2007, as the last day for
creditors to file their claims.

The Liquidator can be reached at:

         Neville Petrie Fagerlund
         c/o HFK Limited
         PO Box 5071, Papanui
         Christchurch
         New Zealand
         Telephone:(03) 352 9189


HABITAT LTD: Proofs of Debt Due on August 17
--------------------------------------------
Habitat Ltd., which is in liquidation, is accepting proofs of
debt from its creditors until August 17, 2007.

Failure to file claims by the due date will exclude a creditor
from sharing in the company's dividend distribution.

The company's liquidator is:

         Boris van Delden
         Kevin Warwick Bromwich
         c/o McDonald Vague
         PO Box 6092, Wellesley Street Post Office
         Auckland
         New Zealand
         Telephone:(09) 303 0506
         Facsimile:(09) 303 0508
         Website: http://www.mvp.co.nz


HARBOUR MASTER: Taps Lawrence and McCullagh as Liquidator
---------------------------------------------------------
On July 12, 2007, Stephen Mark Lawrence and Anthony John
McCullagh were tapped as liquidators for Harbour Master Waiheke
Ltd.

The company is accepting proofs of debt from its creditors until
August 13, 2007.

The Liquidators can be reached at:

         Stephen Mark Lawrence
         Anthony John Mccullagh
         c/o Horwath Corporate (Auckland) Limited
         PO Box 3678, Auckland 1140
         New Zealand
         Telephone:(09) 306 7421
         Facsimile:(09) 302 0536


KAMICARZI AUTOMOTIVE: Creditors' Proofs of Debt Due on August 10
----------------------------------------------------------------
The creditors of Kamicarzi Automotive Ltd. are required to file
their claims by August 10, 2007.

The company went into liquidation on July 12, 2007.

The company's liquidator is:

         Grant Bruce Reynolds
         c/o Reynolds & Associates Limited
         Insolvency Practitioners
         PO Box 259059, Greenmount,
         East Tamaki, Auckland
         New Zealand
         Telephone:(09) 522 5662
         Facsimile:(09) 522 5788


MORCLARKE DEVELOPMENTS: Proofs of Debt Due on August 16
-------------------------------------------------------
Morclarke Developments Ltd. commenced liquidation proceedings on
July 10, 2007.

Michael John Turner and Stephen Alan Dunbar, the appointed
liquidators, are accepting proofs of debt from its creditors
until August 16, 2007.

The Liquidators can be reached at:

         Michael John Turner
         Stephen Alan Dunbar
         Polson Higgs, PO Box 5346
         Dunedin
         New Zealand


OLYMPIC SLABBING: Fixes August 17 as Last Day to File Claims
------------------------------------------------------------
Olympic Slabbing Systems Ltd. commenced wind-up proceedings on
July 6, 2007.

Creditors are required to file their proofs of debt by Aug. 17,
2007, so as to be included in the company's dividend
distribution.

The company's liquidators are:

         John Trevor Whittfield
         Boris van Delden
         McDonald Vague, PO Box 6092
         Wellesley Street Post Office
         Auckland
         New Zealand
         Telephone:(09) 303 0506
         Facsimile:(09) 303 0508
         Website: http://www.mvp.co.nz


OODIAN ON QUEEN: Winds Up Business; Claims Bar Date is Aug. 10
--------------------------------------------------------------
Oodian on Queen Ltd. went into liquidation on July 10, 2007.

Accordingly, the company requires its creditors to file their
claims by August 10, 2007, to be included in its dividend
distribution.

The company's liquidator is:

         R. L. Merlo
         c/o Merlo Burgess & Co. Limited
         PO Box 51486, Pakuranga
         Manukau 2140
         New Zealand
         Telephone:(09) 520 7101
         Facsimile:(09) 529 1360
         e-mail: merloburgess&co@xtra.co.nz


PROLINE BOATS: Wind-Up Petition Hearing Slated for August 19
------------------------------------------------------------
A petition to wind up the operations of Proline Boats & Trailers
Ltd. will be heard before the High Court of Auckland on August
19, 2007, at 10:45 a.m.

The Commissioner of Inland Revenue filed the petition against
the company on April 19, 2007.

The CIR's solicitor is:

         Justine S. T. Berryman
         c/o Legal and Technical Services
         Inland Revenue Department
         5-7 Byron Avenue
         PO Box 33150, Takapuna
         Auckland
         New Zealand
         Telephone:(09) 984 1538
         Facsimile:(09) 984 3116


SABA YACHTS: Shareholders Resolve to Close Business
---------------------------------------------------
On July 11, 2007, the shareholders of Saba Yachts Ltd. passed a
resolution to shut down the company's business.  Robert Laurie
Merlo was appointed as liquidator.

Creditors who cannot file their claims by August 13, 2007, will
be excluded from sharing in the company's dividend distribution.

Mr. Merlo can be reached at:

         Robert Laurie Merlo
         c/o Merlo Burgess & Co. Limited
         PO Box 51486
         Pakuranga, Manukau 2140
         New Zealand
         Telephone:(09) 520 7101
         Facsimile:(09) 529 1360
         e-mail: merloburgess&co@xtra.co.nz


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

IPVG CORP: Raises PHP352 Million Via Private Share Placement
------------------------------------------------------------
IPVG Corp. has raised PHP352 million in fresh capital through a
private placement of shares, Zinnia Dela Pena writes for the
Philippine Star.

The fresh capital is in addition to an investment of
PHP250 million by ING Bank N.V, Manila Branch (Trust Department)
last month, The Star says.

The report points out that IPVG sold 44 million common shares
from its authorized and unissued capital stock at PHP8 per share
to foreign and local institutional groups consisting of Banco de
Oro-EPCI Inc. (Trust Department), ING Bank N.V., Manila Branch
(Trust Department), Abacus Securities Corp. and The Philippine
Star Group (Pilipino Star Ngayon Inc., Pilipino Star Printing
Co.Inc.).

IPVG intends to use the funds to finance a series of strategic
regional acquisitions, The Star explains, citing IPVG resident
Enrique Gonzalez.  These acquisitions are aimed at strengthening
the company's plans for regional expansion.

"With over PHP700 million  in equity funds which will be
supplemented with debt financing, the company now has the
resources to implement its acquisition road map," The Star
quotes Mr. Gonzalez.

At the same time, the report relates, IPVG that announced it is
building a chain of Internet cafes and network gaming centers
throughout the country to compete with Netopia, which is
controlled by telecommunications giant Philippine Long Distance
Telephone Co.  This new venture is in partnership with
Sabinclub.com., an information technology-based firm offering
web-related and consultancy services.


IPVG Corporation -- http://www.ipvg.com/-- is engaged in the    
information technology and communications business with
interests in Information Technology and Telecommunications; On-
line Gaming; and Business Process Outsourcing.

IPVG reaches its customers through collaboration with
international corporations that have proven to be market leaders
in their respective geographic markets and industries.  Its
current partners include Fortune 1000 companies listed on the
New York Stock Exchange, such as Pacific Century Cyberworks Inc.
and IDT.  The company can offer established product and
proprietary business knowledge to the Philippine market by
pairing each of its business subsidiaries with strategic
partners.

The TCR-AP reported on May 15, 2007, that the corporation posted
a net loss of PHP102.1 million for the year ended Dec. 31, 2006,
the company's third consecutive annual net loss after
PHP43.0 million in 2005 and PHP6.2 million in 2004.


PHIL. AIRLINES: Wants Gov't Subsidies to Flag Carriers Abolished
----------------------------------------------------------------
Philippine Airlines has joined other airlines in a call for all
forms of government subsidies to flag carriers of countries to
be abolished, particularly in the Middle East and Southeast
Asia, the Philippine Star reports.

According to The Star's Mary Ann Reyes, the abolishment of
subsidies serves as a precondition to the full liberalization of
the aviation industry.

Earlier, the report relates, several airlines, including
Australia's flag carrier Qantas, pushed for a ban on unfair
subsidies enjoyed by Emirates, Qatar Airways, Singapore
Airlines, Thai Airways International, Malaysian Airlines and
other carriers.

PAL maintains that all forms of state aid "can seriously distort
competition" as well as hinder tourism growth, the report notes.  
The airline, which is the only private-sector flag carrier in
the Association of Southeast Asian Nations, added that it is
ready to compete but underscored the need for "equal
opportunity" for all in an "open skies" regime.

ASEAN member-countries agreed in 2004 to adopt open skies in the
region beginning with unlimited flights between ASEAN capital
cities by December 2008, The Star recounts.

If ASEAN member-countries want to establish a free market within
the region, a level playing field must first be created by
eliminating the undue advantage of carriers that are subsidized
by their respective governments, The Star cites PAL as stating.

The report says that PAL has submitted its position to the
Philippine Government for proposal to other ASEAN governments in
ongoing regional multilateral air traffic rights negotiations.


Philippine Airlines -- http://www.philippineairlines.com/-- is    
the Philippines' national airline.  It was the first airline in
Asia and the oldest of those currently in operation.  With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights.  As of 2005, it claims
to serve 21 domestic airports and 31 foreign cities.  Its main
hub is the Ninoy Aquino International Airport in the capital
city of Manila.

Following labor problems and its failure to settle debts, PAL
filed for rehabilitation in June 1998, and is slated to complete
its 10-year debt rehabilitation program in 2009.

A March 21, 2006 report by the Troubled Company Reporter-Asia
Pacific stated that the airline company will continue a
government-led rehabilitation program even as creditors neither
approved nor rejected the program to leave the protection of the
Securities and Exchange Commission.

According to a TCR-AP report on July 24, 2007, Philippine
Airlines Inc. is considering emerging from its rehabilitation
after it brought down its foreign debts to US$953 million as of
March 31, 2007, from the initial US$2.3 billion upon entering
rehab in June 1999.


PHIL. LONG DISTANCE: Core Net Profit Up 13% to PHP17.2 Billion
--------------------------------------------------------------
Philippine Long Distance Telephone Company earned a consolidated
core net profit, before foreign exchange translation and
derivative gains, of PHP17.2 billion for the first six months of
2007, up 13% from PHP15.2 billion in the same period last year.
Reported net profit, reflecting such translation and derivative
gains, lower additional depreciation charges and higher
provision for income tax, rose by 11% to PHP17.0 billion
compared with the reported net income of PHP15.3 billion in the
same period last year.  The Group's income before tax increased
by 40% to PHP26 billion in the first half of 2007.  Provision
for income tax, however, also increased by 192%, or about
PHP5.7 billion, to PHP8.7 billion as the Group's effective tax
rate went up to 34% during the period.

Consolidated service revenues increased by 11% to
PHP67.0 billion, notwithstanding the 9% appreciation of the peso
which negatively impacted the growth of service revenues by
almost 4%, owing to the linkage of 38% of PLDT's consolidated
revenues to the U.S. dollar.  If the peso-U.S. dollar exchange
rate remained stable for the period under review, consolidated
service revenues would have grown by over 14%, or by a further
PHP2.3 billion.  Consolidated EBITDA improved by 4% to
PHP41.8 billion while EBITDA margin was at 62%.

Consolidated free cash flow remained robust at PHP24.4 billion
in the first half of 2007, after incurring consolidated capital
expenditures of P10 billion during the period.  Capital
expenditures for the Group are expected to increase to
PHP25 billion in 2007 as a result of the higher than expected
take up of cellular and wireless broadband subscribers coupled
with the continued roll out of our Next Generation Network,
principally in areas that are unserved or underserved.

Reflecting these strong cash flows, the Company's Board of
Directors, earlier today, declared an interim dividend of
PHP60 per share, representing approximately 70% of the core
earnings attributable to each common share of PHP89.75.  Also,
the Company's Board of Directors declared a special dividend of
P40 per share, representing an additional 25% cash dividend
payout of 2006 core earnings.  This brings the total dividend
payout of our 2006 net earnings to 85%.

PLDT expects to pay out a total of PHP18.8 billion in dividends
to all common shareholders on 24th September 2007.

The Group's consolidated balance sheet continued to strengthen
with consolidated gross debt balances at US$1.6 billion, after a
net debt reduction of almost US$170 million was made in the
first six months of 2007.  After reflecting cash balances,
consolidated net debt stood at US$940 million as at June 30,
2007.  But after taking into account the common dividends to be
paid at the end of September this year, the Group's consolidated
net debt to EBITDA would be 0.7 times, net debt to free cash
flow at 1.3 times and net debt to equity would be 0.7 times.

"We are extremely pleased to announce the declaration of two
dividends -- an interim one of PHP60 per share as part of our
regular dividend payout program and a second, special dividend
of P40 per share which was made possible by the continued strong
performance of the Group.  The special dividend demonstrates the
Group's solid operating and cash flow performance and fulfills
our commitment to improve shareholder returns as we continue to
seek new growth opportunities," stated Manuel V. Pangilinan,
PLDT Chairman.

On 6th August 2007, the Board of Directors of our wireless
subsidiary, Pilipino Telephone Corporation, declared dividends
on its Series A, C, D and J preferred shares and authorized the
settlement of the Company's accumulated dividends in arrears
accruing to these shares.  Series A and D were issued to the
cities of Baguio and Olongapo, respectively, while
Series C was issued to subscribers of Piltel's fixed line
business.  Series J constitutes the largest series of the Class
I preferred shares.  These shares were issued to PLDT in
relation to the Letter of Support executed by PLDT in June 2001
under the terms of Piltel's original debt restructuring, and
carry an effective dividend rate of 9% per annum.  All Class I
preferred shares are redeemable at Piltel's option.

Piltel expects to pay a total of PHP2.60 billion relating to the
dividends in arrears and another PHP145 million relating to
current dividends.  PLDT, as the holder of the Series J
preferred shares, will be receiving PHP2.73 billion of such
dividends to be paid by Piltel.

Wireless: Propelling Revenues Upwards

Consolidated wireless service revenues rose to PHP43.0 billion
for the first six months of 2007, 11% higher than the PHP38.6
billion realized in the same period last year.  Cellular
subsidiaries, Smart Communications, Inc. and Piltel have
extended their stellar performance.  Wireless service revenues
in the second quarter improved by 6% quarter-on-quarter to
PHP22.2 billion from PHP20.8 billion first quarter.  The
increase is partly attributable to the impact of
election-related spending, and the continued focus of Smart on
driving subscriber activations and providing better value
packages for SMS and voice services.  In the first half of 2007,
cellular data revenues grew 15%, cellular voice revenues
improved 7% and wireless broadband revenues surged 211%.

Consolidated wireless EBITDA improved by 10% to PHP28.2 billion
in the first half of 2007 from P25.7 billion for the same period
in 2006 while EBITDA margins were maintained at 66%.

The PLDT Group's total cellular subscriber base for the quarter
grew by 2.9 million to close at 27.1 million.

Smart recorded net additions of approximately 1.95 million
subscribers while Talk 'N Text added about 985,000 subscribers
to end the first six months of 2007 with 19.1 million and almost
8.0 million subscribers, respectively.

Smart's extensive infrastructure and robust platform enable it
to continue being the leader in developing innovative voice and
text packages that offer the most value and variety to its
customers.

Smart's wireless broadband service -- branded SmartBro -- has
grown its wireless broadband subscriber base to about 210,000 at
the end of June 2007, adding 88,000 new subscribers in
the first six months.  Smart now has over 2,610 wireless
broadband-enabled base stations providing high-speed internet
access to over 500 cities and municipalities all over the
Philippines.  Wireless broadband revenues grew 211%, from PHP300
million in the first half of 2006 to about PHP930 million in the
first half of 2007.  SmartBro is an integral part of the PLDT
Group's strategy to be at the forefront of "broadbanding" the
country.

On 24th July 2007, 360media Corp., in partnership with Smart,
launched myTV, the first commercial mobile TV service in the
country.  This service enables Smart subscribers with mobile TV-
capable handsets to enjoy myTV's range of top-rated TV channels.
myTV uses Digital Video Broadcasting-Handheld, or DVB-H,
platform that delivers real-time events through a digital TV
signal optimized for mobile devices.  Programs can be
simultaneously viewed by an unlimited number of subscribers,
thus making television viewing conveniently available always and
everywhere.  In contrast, myTV is not transmitted through the
cellular network unlike mobile TV from video streaming and
video-downloads services which are currently offered through 3G
cellular networks.  Initial coverage areas include Mega Manila,
Cebu, Davao, Tagaytay, Batangas and Baguio.  The mobile TV
package will involve a monthly charge of PHP488 in addition to
the regular postpaid airtime plans.  Prepaid subscribers on the
other hand, need only to maintain a PHP1 airtime load on top of
the PHP488 monthly myTV package to avail of the service.  myTV
service will be free until August 31, 2007.

"Mobile TV is the latest life-changing innovation being
introduced by Smart in collaboration with 360media, Smart's
broadcast service partner.  Through this innovative service,
Smart will enable its subscribers to watch news, general
information, sports and entertainment programs through specially
enabled mobile handsets while on the go," said Napoleon L.
Nazareno, PLDT President and CEO.

On 2nd August 2007, Smart announced a partnership with global
satellite communications service firm Inmarsat plc to offer a
wider terrestrial and maritime coverage for its satellite phone
services, SMARTLink.  This strategic collaboration involves
Inmarsat making available its global satellite infrastructure
for the delivery of Smart's products and services to SmartLink
subscribers as well as a US$5 million investment by Smart to set
up the gateway facility and ground infrastructure in Subic,
Zambales.  The partnership will result in an initial expanded
coverage for the SMARTLink prepaid wireless satellite phone
service to include India, the Indian Ocean, the Middle East,
Africa, one-half of the Australian continent, and parts of
Russia and the Pacific Ocean.  The SMARTLink services will be
carried on Inmarsat's I-4 satellite, which can support both
voice call services and data connectivity.  This expanded
coverage area complements the existing coverage provided by the
Garuda I base of Asia Cellular Satellite, which already covers
11 million square miles of Asia, from Pakistan in the west to
Japan in the east and Indonesia and Papua New Guinea in the
south. Eventually, in 2009, SMARTLink's coverage will be
entirely global.

To further reinforce this foray into the maritime industry,
Smart has agreed to acquire, through its wholly-owned
subsidiary, Smart-Connect Holdings PTE Limited, a 30% equity
interest in Blue Ocean Wireless, a Dublin-based company
delivering GSM communication capability for the merchant
maritime sector.  The investment by Smart will be US$15.9
million.  BOW provides the world's first GSM network on the seas
through Altobridge, a patented GSM platform that supports full
voice and text services.  In this way, seamen on board vessels
at sea can talk and text anywhere in the world using this GSM
cellular nautical capability.  It is estimated that there are
more than one million seafarers on about 46,000 vessels, of
which approximately 40% are Filipinos.  Smart sees BOW as an
important complementary service to its prepaid wireless
satellite phone service, SMARTLink.

"This past month has seen Smart launch new and exciting services
to add to its portfolio of world-first and world-class services.
The expanded SMARTLink coverage coupled with the cutting edge
technology of BOW will enable Smart to offer our products, in a
cost competitive way, to seafarers across the world, 40% of whom
happen to be Filipinos," added Mr. Nazareno.

PLDT Fixed Line: Managing Change Properly

Fixed Line service revenues decreased by 2% to PHP23.6 billion
in the first half of 2007 from PHP24.1 billion in the first half
of 2006 mainly on account of a stronger peso.  The gains
realized in broadband and corporate data revenues were balanced
by the decline in our traditional fixed line voice revenues.  
Our dollar-linked revenues arising from the local exchange and
ILD businesses continue to be adversely impacted by the
appreciation of the U.S. dollar/peso exchange rate.  Had the
peso not appreciated by 9% in the first six months of 2007 and
remained relatively stable, Fixed Line revenues would have
reported an increase of 2% year-on-year.

Retail DSL continued to grow as broadband subscribers reached
approximately 200,000 at the end of June 2007, representing net
additions of about 67,000 subscribers in the first six months
of the year.  PLDT also had approximately 300,000 subscribers
using our Vibe dial-up Internet service as of the end of the
period.  PLDT DSL and Vibe contributed PHP1.9 billion in
revenues for the first six months of 2007, up 11% from
PHP1.7 billion for the same period in 2006.

Fixed Line EBITDA in 2006 declined to PHP13.0 billion driven by
the decrease in revenues and the increase in certain cash
operating expenses, resulting in a slightly lower EBITDA margin
for the period.

"Our key objective of revitalizing the Fixed Line business
requires a significant amount of time, effort and resources.
While the initial results of our hard work are not readily
apparent, we remain intensely focused on the proper
implementation of our plans -- upgrading to NGN, integrating
back-office support functions, streamlining processes and re-
orienting our people.  We are facing the challenges head-on and
are prepared to make the necessary adjustments as we move
towards the goal of creating a more responsive and agile
organization," declared Mr. Nazareno.

ePLDT: Consolidating Resources

ePLDT, the Group's information and communications technology
arm, reported service revenues of PHP4.8 billion for the first
six months of 2007, a 165% increase from the PHP1.8 billion
revenue achieved last year.  This was driven by the continued
growth in call center revenues through ePLDT Ventus and the
consolidation of SPi Technologies, Inc., after its acquisition
in July 2006.  ePLDT's revenues were likewise negatively
impacted by the strong appreciation of the peso since
approximately 83% of its revenues are denominated in U.S.
dollars.  ePLDT would have reported an incremental 21% growth in
revenues if the peso had remained stable year-on-year.  ePLDT's
revenues account for 7% of the PLDT Group's consolidated
revenues.

EBITDA grew 77% to PHP536.3 million in the first half of 2007
from PHP302.2 million in the first half of 2006.  EBITDA margin
declined to 11% due to the 9% appreciation of the peso, the
higher compensation and benefits costs associated with new
employee incentive schemes and the extended lead time required
to effect an orderly migration of SPi's medical and other
transcription business from the United States to Asia,
especially the Philippines.

Consolidated call center revenues increased 24% to PHP1.5
billion as it continued to expand its client base and improve
capacity utilization.  ePLDT Ventus operates seven facilities
with combined seats of 6,030 and an employee base of over 6,000.
SPi, on the other hand, generated revenues of PHP2.6 billion in
the first six months of 2007, of which 46% came from its
publishing business, 28% from its healthcare unit and another
26% from its legal segment.  Its recent acquisition of
Springfield, a US-based medical billing and accounts receivable
management service provider, is expected to boost its healthcare
business as it completes its revenue cycle management offering.

"In order to capture a bigger share of the expected growth in
the outsourcing business, ePLDT is now in the process of
managing the functional integration of its SPi and Ventus
business units to achieve efficiencies and synergy gains in
certain common areas such as facilities, IT and
telecommunication networks, HR, finance, and accounting.  A
harmonized, cross-unit sales and marketing program will also be
implemented to cover a larger and broader base of potential
customers, particularly in North America.  Through these
integration efforts, which we expect to complete within the
balance of the year, we not only foresee increased revenue
contributions from the two business units but improving margins
as well, particularly in the case of SPi," said Ray C. Espinosa,
ePLDT President and CEO.

Outlook for 2007

"We are rather pleasantly surprised by the better-than-expected
results for the first half of the year.  Whilst our performance
has been assisted in part by election-related activities, core
numbers manifest improving fundamentals.  This has in turn given
us the confidence to revise upwards -- for the second time this
year - our core earnings estimate to a level higher than the
earlier guidance of PHP33 billion," Chairman Pangilinan stated.

"Management has been asked and tasked to push innovation further
and I can assure you that every conceivable and viable
opportunity in the broader telco space is being considered,
analyzed and exploited.  We are quite pleased that SmartLink,
BOW and myTV have been either agreed or launched -- this
completes the triple play convergence strategy of voice, data
and video that we have raised before as a mere possibility.
There is a fourth space that needs to be developed -- money and
its flows, both domestically and internationally.  I am
confident that in the near term, we will be able to bring to the
market a workable application in this exciting sector in the
form of Smart Remit.  Indeed, this will expand the ambit of our
convergence approach into a quadruple play," Mr. Pangilinan
added.

"We look forward to delivering to our shareholders another year
of improved results - in profits, in cash, and a much stronger
Company," Mr. Pangilinan concluded.

                            About PLDT

Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading   
national telecommunications service provider in the Philippines.  
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported that on
November 3, 2006, Moody's Investors Service affirmed Philippine
Long Distance Telephone Company's Ba2 senior unsecured foreign
currency rating and changed its outlook to stable from negative.  
At the same time, Moody's has affirmed PLDT's Baa3 domestic
currency issuer rating.  The outlook for this rating remains
positive.

Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+.  Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.


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

ADVANCED MICRO: Moody's Lowers US$390-Million Notes Rating to B2
----------------------------------------------------------------
Moody's Investors Service revised down the ratings of Advanced
Micro Devices' US$390 million senior notes due 2012 to B2 from
Ba2 and revised up the ratings of the US$1.6 billion term loan
due 2013 to Ba1 from Ba2.  This revision reflects the release of
collateral that had benefited the 2012 notes, and AMD's partial
repayment of its secured term loan from proceeds of the US$2.2
billion senior convertible notes due 2014 (not rated).  The
rating outlook remains negative.

Moody's noted in a press release dated April 30, 2007, "it is
likely that the 2012 Note will become unsecured in the near
future.  Since AMD's secured debt as defined is below US$2.5
billion, AMD, as stated in its 8K filing of April 24, 2007, has
the ability to release collateral that currently benefits the
2012 note.  To the extent that the 2012 Note loses its
collateral interest, its rating would be lowered to B2 with a
corresponding LGD5 assessment while the bank term loan would
likely be raised to Ba1 and LGD2 assessment."

In line with Moody's loss given default methodology, the 2012
Note's B2 ratings have a corresponding LGD5, 73% assessment and
the Ba1 term loan ratings have a corresponding LGD2, 18%
assessment.

Ratings/assessments revised down:

  -- US$390 million senior unsecured notes due August 2012 to
     B2 (LGD5, 73%) from Ba2 (LGD 2, 22%)

Ratings/assessments revised up:

  -- US$1.6 billion senior secured term loan due 2013 to Ba1
     (LGD2, 18%) from Ba2 (LGD 2, 22%)

Ratings/assessments affirmed:

  -- Corporate family rating B1;
  -- Probability-of-default rating B1;

Rating Outlook Negative.

Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE:
AMD) designs and manufactures microprocessors and other
semiconductor products.

The company has a facility in Singapore. It has sales offices in
Belgium, France, Germany, the United Kingdom, Mexico and Brazil.


BBR GEOTECHNIC: Accepting Proofs of Debt Until August 17
--------------------------------------------------------
BBR Geotechnic (S) Pte Ltd, which is in liquidation, requires
its creditors to file their proofs of debt by August 17, 2007.

Creditors must comply with the requirement to be included in the
company's dividend distribution.

The company's liquidators are:

         Chee Yoh Chuang
         Lim Lee Meng
         c/o Stone Forest Corporate Advisory Pte Ltd
         Member, RSM International
         18 Cross Street
         #08-01 Marsh & McLennan Centre
         Singapore 048423


FREESCALE SEMICONDUCTOR: Taps Collier to Sell East Kilbride Site
----------------------------------------------------------------
Freescale Semiconductor Inc. has employed the services of real
estate adviser Collier International to help sell its East
Kilbride manufacturing site, The Scotsman reports.

As reported in the TCR-Europe on July 18, 2007, Freescale is
looking for a buyer for its East Kilbride factory in the United
Kingdom and has already informed the site's around 900 employees
of the sale plan.

The Scotsman notes that many electronics firms are transferring
to countries with lower overheads, which makes the hunt for East
Kilbride site's buyer more difficult.

Freescale is reportedly shifting its production to Texas,
U.S.A., but could retain a research and development operation at
East Kilbride, The Scotsman adds.

                   About Freescale Semiconductor

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and     
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale became a publicly traded company in July 2004.  The
company has design, research and development, manufacturing or
sales operations in more than 30 countries, including Australia,
China, Hong Kong, India, Japan, Korea, Malaysia, Taiwan and  
Singapore.

                           *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
Moody's Investors Service affirmed these ratings of Freescale
Semiconductor Inc. and changed the outlook to negative: Ba3
corporate family rating; Ba3 probability of default rating; B1  
rating of US$2.85 billion senior unsecured notes due 2014; B1  
rating of US$1.50 billion senior unsecured toggle notes due
2014; and B2 rating of US$1.60 billion senior subordinate
unsecured notes due 2016.


WELLMIX ORGANICS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on July 16, 2007,
to wind up the operations of Wellmix Organics (International)
Pte Ltd.

The petition was filed by Lau Yu Man.

Wellmix Organics' solicitor is:

         John Teo Cheng Lok
         Foong Daw Ching
         c/o Baker Tilly TFWLCL
         15 Beach Road
         #03-10 Beach Centre
         Singapore 189677


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

BLOCKBUSTER INC: Weak Qtr Results Cue Moody's to Lower Ratings
--------------------------------------------------------------
Moody's Investors Service downgraded Blockbuster Inc.'s
corporate family rating to Caa1, its senior secured credit
facilities to B3, and speculative grade liquidity rating to SGL-
4.  In addition, Moody's affirmed the senior subordinated notes
rating at Caa2. The rating outlook remains negative.

The downgrade is prompted by Blockbuster's very weak first and
second quarter results which were significantly below Moody's
expectations and resulted in the company needing to attain an
amendment to the financial covenants contained in its senior
secured bank credit facilities.  The downgrade also reflects the
significant challenge that the management team of Blockbuster
faces as it seeks to quickly turn its dramatic year-over-year
operating declines in order to avoid any further potential
covenant violations.

These ratings are downgraded:

-- Corporate family rating to Caa1 from B3;

-- Senior secured bank credit facilities to B3 (LGD3-42%) from
    B1 (LGD2-25%);

-- Speculative grade liquidity rating to SGL-4 from SGL-3.

These ratings are affirmed:

-- Probability of default rating at B3;
-- Senior subordinated notes at Caa2 (LGD6-92%).

The Caa1 rating reflects Blockbuster's history of highly
volatile and unpredictable operating performance as a result of
the mismanagement of the launch of strategic initiatives,
particularly Total Access and the No Late Fees programs.  In
addition to the need to address its poor execution, Blockbuster
faces the ongoing challenge of all players in the video store
industry of identifying ways of dealing with intense
competition, price deflation and evolving technology.

The corporate family rating reflects Moody's expectation that
EBIT will likely be negative for the fiscal year 2007 even if
the company is able to significantly turn around its operating
declines during the third quarter.  Moody's acknowledges that
the new senior leadership of Blockbuster is in the early stages
of implementing better execution of Total Access and creating an
overall business strategy which will make the most of
Blockbuster's clear leadership in the area of video and game
rentals and preserve its high brand value.

However, the better execution and cost saving initiatives need
to come to fruition quickly as there is a high potential for
further covenant violations unless the company significantly
turns around its operating performance during the third quarter
of 2007.  As a result, the company faces the risk that its bank
lenders may become unwilling to provide additional covenant
relief, particularly if currently difficult market conditions
persist.  In Moody's opinion, the management team not only faces
the challenge of stabilizing the business but also the likely
need to find ways to most cost-effectively rationalize its
leased store base.

The downgrade to SGL-4 reflects Moody's expectation that
Blockbuster's liquidity will be weak over the next four
quarters. Moody's expects that the company will likely generate
negative free cash flow over the next twelve months. The company
should have sufficient availability under its $450 million
revolver to be able to fund this deficit.  However, Moody's
believes that Blockbuster is at risk for further potential
covenant violations as the management team of Blockbuster faces
a significant challenge to quickly turn its dramatic year over
year operating declines in order to avoid any further potential
covenant violations.

The company has very limited alternate sources of liquidity as
the majority of the company's tangible and intangible assets are
pledged to the senior secured credit facilities.  In addition,
the company recently monetized two of its assets, GameStation
and Rhino Video, the proceeds of which were used to repay its
term loan facilities, which leaves it with fewer assets to sell
off.

The negative outlook reflects the challenge management faces of
dramatically turning the operating performance quickly to avoid
any further potential covenant violations.  Ratings could be
further downgraded should the risk of a potential covenant
violation come to fruition, should liquidity become constrained,
or should the decline in operating performance not begin to show
signs of improvement.

Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- provides in-home movie  
and game entertainment, with more than 9,000 stores throughout
the Americas, Europe, Asia and Australia.  The company also
operates in Taiwan, Thailand, and New Zealand.


DAIMLERCHRYSLER AG: Closes Chrysler Sale to Cerberus
----------------------------------------------------
DaimlerChrysler has completed the closing for the transfer of a
majority interest in Chrysler Group and for the related
financial services business in NAFTA to a subsidiary of Cerberus
Capital Management, L.P., a private-equity company based in New
York.  A subsidiary of Cerberus takes over 80.1% in the Chrysler
Holding LLC, while DaimlerChrysler retains a 19.9% interest, as
announced in May 2007.

The effects on the financial statements of DaimlerChrysler will
be explained on August 29, 2007.

Basically, the conditions of the transaction and the economic
effects have not changed since the agreement was signed on
May 14, 2007.  Furthermore, DaimlerChrysler and Cerberus have
agreed to support the financing of the majority takeover of
Chrysler by Cerberus in light of highly volatile US loan
markets.  Both companies will subscribe US$2 billion of second
lien debt for Chrysler's automotive business, to be drawn within
12 months.  DaimlerChrysler's portion will be US$1.5 billion.  
The debt will be priced at market conditions.  One year after
the closing, DaimlerChrysler has the right to sell this loan in
the credit market.  The maturity of this loan is seven years.

DaimlerChrysler's financing support is a strong sign of its
overall determination to make sure that, under the majority of
Cerberus, Chrysler has a good start as a successful stand-alone
car company.

As of today, the Board of Management of DaimlerChrysler AG is
reduced to six members.  Tom LaSorda, Eric Ridenour and Tom
Sidlik are no longer members.  Within the Board of Management,
Bodo Uebber additionally assumes responsibility for procurement.

Due to the new corporate structure, DaimlerChrysler AG is to be
renamed as Daimler AG.  The shareholders are to decide on this
change at an Extraordinary Shareholders' Meeting in Berlin on
October 4, 2007.

Dr. Dieter Zetsche, Chairman of the Board of Management of
DaimlerChrysler AG and Head of the Mercedes Car Group: "Today
marks a new chapter in the history of our company.  Based on the
clearly defined strategies in our Mercedes Car Group, Truck
Group, Financial Services business divisions and for vans and
buses, and our company's healthy balance sheet, we have every
reason to move confidently into the future."

                      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: Chrysler's July Sales Outside N. America Up 24%
----------------------------------------------------------------
In July 2007, Chrysler Group sales outside North America grew by
24 percent (20,944 units), the best July in 10 years.  Much of
the additional sales volume was fueled by increases in fast-
growing regions such as Latin America, where sales were up 48
percent.  The significant July sales contributed to the
Company's year-to-date sales growth, currently 18 percent
(135,257 units), and marked an unprecedented 26 consecutive
months of year-over-year sales increases.

"With 26 consecutive months of sales growth, it is clear that
our international strategy is a success," Michael Manley,
executive vice president of international sales, marketing and
business development, said.  "We now we have three global
brands, a product portfolio that stands out from the crowd, and
a business model that provides our dealers with one of the
highest return on sales in the industry.  We have also improved
our product quality and the overall customer satisfaction rate
to ensure that our global buyers continue to come back for
more."

For the month, all three of Chrysler Group's brands saw
increased demand compared with last year.  Chrysler brand sales
were up eight percent (7,480 units), led by Chrysler 300C sales.
Jeep brand sales jumped 27 percent (8,461 units), supported by
new vehicle availability such as Jeep Wrangler/Wrangler
Unlimited and Compass.  Dodge brand sales continued to grow as
the Dodge Avenger and Nitro made their way into dealerships,
contributing to a 54 percent increase (5,003 units).  Dodge
Caliber continued to lead the Chrysler Group lineup as the top-
selling vehicle year-to-date in 2007, with 18,616 units sold.

"Venezuela is a successful example of our localization strategy
in South America," said Thomas Hausch, vice president of
international sales.  "With more than 2000 units sold, Venezuela
was amongst the highest volume markets in the month of July,
mainly due to the popularity of the locally produced Dodge
Caliber, Jeep Cherokee and Jeep Grand Cherokee."

                     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.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
August 10, 2007
  Turnaround Management Association
    Special Olympics Sportsman's Lunch
      Sofitel, Brisbane, Queensland, Australia
        Telephone: 1300 303 863
          Web site: http://www.turnaround.org/

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

November 14, 2007
  Turnaround Management Association
    TMA Australia 4th Annual Conference and Gala Dinner
      Hilton, Sydney, Australia
        Web site: http://www.turnaround.org/

November 29, 2007
  Turnaround Management Association
    Special Speaker
      Hilton, Sydney, Australia
        Web site: http://www.turnaround.org/

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

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

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

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

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

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

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

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

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

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

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

Beard Audio Conferences
  Changing Roles & Responsibilities of Creditors' Committees
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Validating Distressed Security Portfolios: Year-End Price
    Validation and Risk Assessment
      Audio Conference Recording
        Telephone: 240-629-3300
          Web site: http://www.beardaudioconferences.com/

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

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

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

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

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

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

Beard Audio Conferences
  When Tenants File -- A Landlord's BAPCPA Survival Guide
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

Beard Audio Conferences
  Clash of the Titans -- Bankruptcy vs. IP Rights
    Audio Conference Recording
      Telephone: 240-629-3300
        Web site: http://www.beardaudioconferences.com/

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

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

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

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

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

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

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

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




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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
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***