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        T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

               Wednesday, June 7, 2006, Vol. 9, No. 112


                            Headlines

A U S T R A L I A   &   N E W  Z E A L A N D

ABODE REVIEW: Creditors' Proofs of Claim Due on June 7
ATCO GROUP: Members Opt for Liquidation
BAYRIDGE ENTERPRISES: Members & Creditors Review Wind-up Report
BELPARD INTERNATIONAL: Prepares to Pay Dividend
BOXY PTY: Placed Under Liquidation

BRUNE INVESTMENTS: Members Agree to Halt Operations
BURSDALE SERVICES: Court to Hear Liquidation Bid on June 22
CASHGAIN (NO. 1): Receivers Step Aside
CHARM LOGGING: Court to Hear ACC's Liquidation Bid on June 12
DARLINGHURST CAFE: Enters Wind-up Proceedings

EVERETT & STEELE: To Declare Final Dividend Today
EXCELRAY AUSTRALIA: Liquidators to Present Wind-up Report
HOWLE BUILDING: Final Meeting Fixed for June 8
JALA TRADING: Creditors Agree to Wind Up Firm
JE BROOKSBANK: Shareholder Resolves to Wind Up Firm

JENPEET PTY: Winds Up Operations
KEYLINK PROPERTIES: Court to Hear Liquidation Bid on June 22
LEARNING RESOURCE: Appoints Joint and Several Liquidators
LEOLUX PTY: Appoints Official Receivers
MUIR CARTAGE: Creditors Must Prove Debts by June 15

MULTIPLEX GROUP: May Enter Mediation Talks With Cleveland
NUMBAA FARMS: Enters Voluntary Liquidation
PARATON PTY: To Hold Final Meeting Today
PLATINUM RESOURCES: Liquidation Process Commenced
R&D MASON: Decides to Shut Down Business

REEF MANAGEMENT: To Declare Dividend on June 16
ROCLIN INVESTMENTS: Appoints Official Liquidator
TOPLINE PROPERTIES: Names Hargrave as Liquidator
VYSO PTY: Initiates Wind-up Proceedings
WESTHAVEN BOATYARDS: Creditors Must Prove Debts by June 23

WKM FRANCIS: Faces Liquidation Proceedings
* Fitch Says Investment Grade Ratings Unlikely For Credit Unions


C H I N A   &   H O N G  K O N G

CAMPION DEVELOPMENT: Court to Hear Liquidation Bid on July 19
CHINA NETCOM: Inks Deal to Sell Undersea Cable for US$169 Mln
FU SHING REALTY: Creditors' Proofs of Claim Due on June 19
GOLDEN RICH: Faces Winding up Proceedings
MOULIN GLOBAL: Court Orders Winding-up

ORIENT U.S.A.: Company's First Meeting Set on June 21
POWTEK ELECTRONICS: Court to Hear Wind-up Petition on June 28
REALPOINT DEVELOPMENT: Creditors Must Prove Debts by July 4
RED SEA: Members Final General Meeting Set on July 3
RIL HOLDINGS: Liquidator to Present Wind-up Report

SKY RAINBOW: Appoints Joint and Several Liquidators
STAR CRUISES: Agrees to Sell Ship to Reduce Liabilities
SPRINGTIME INVESTMENT: Name Joint and Several Liquidators
WIN HING: Court to Hear Liquidation Bid on June 14
YUNNAN & HONG KONG: Faces Winding-up Proceedings


I N D I A

BHARAT PETROLEUM: Expects to Cut Losses by INR60 Billion
DUNLOP INDIA: Strikes Deal with Sahagunj Staff
INDIAN OIL: Fuel Price Hike May Trim Losses by INR57 Billion
HINDUSTAN PETROLEUM: Lower Losses Seen After Fuel Price Hike


I N D O N E S I A

EXCELCOMINDO PRATAMA: Fitch Upgrades BB- Issuer Default Ratings
INDOFOOD SUKSES: Plans to Sell Shares in Palm Oil Business
INDOSAT: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
KERETA API: Lack of Government Funding Caused Railway Accidents


J A P A N

LIVEDOOR COMPANY: 1,600 Shareholders File JPY10-Bln Damages Suit
MITSUBISHI MOTORS: Trims North America Discounted Sales
SANYO ELECTRIC: Analysts Advise Investors to Buy Company Bonds


M A L A Y S I A

INTAN UTLITIES: Releases First Quarter Report
INTAN UTILITIES: Posts Default Updates
KELANG PEMBENA: Faces Winding up Proceedings
LITYAN HOLDINGS: Updates on Loan Default
LITYAN HOLDINGS: First Quarter Losses Shrink 67%

MALAYSIA AIRLINES: 3,200 Staff Line Up for Redundancy Package
MBF CORPORATION: Pre-tax Loss Shrinks to MYR2.2 Mln in 1Q/FY06
MBF CORPORATION: Unit Cuts Default Amount to MYR16.5 Million
OLYMPIA INDUSTRIES: Third Quarter Pre-tax Loss Hits MYR46-Mln
PAN MALAYSIAN: March 31 Balance Sheet Reveals Tight Liquidity

TRADEWINDS CORPORATION: Books MYR17-Million Loss in 1Q/FY2006
WEMBLEY INDUSTRIES: Fails to Address Default Due to Insolvency


P H I L I P P I N E S

FIL-ESTATE CORPORATION: PHP0.65 Million Net Loss for 1Q2006
GOTESCO LAND: Auditors Raise Substantial Doubt on Going Concern
NATIONAL POWER: Secures US$22.6-Mln Loan from Foreign Banks
VITARICH CORP: Auditor Raises Going Concern Doubt


S I N G A P O R E

CONTINENTAL CHEMICAL: S&P Affirms B+ Credit Rating
GIAM KAY: Pays Dividend to Unsecured Creditors
LEONG HENG: Court Hears Bankruptcy Petition
L&M PRESTRESSING: Enters Wind-up Process
MINDMAKER PTE: Court Issues Wind-up Order

     - - - - - - - -

============================================  
A U S T R A L I A   &   N E W  Z E A L A N D
============================================  

ABODE REVIEW: Creditors' Proofs of Claim Due on June 7
------------------------------------------------------
Liquidator Andrew Marchel Oorschot requires the creditors of
Abode Review Ltd to submit their proofs of claim by June 7,
2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: A.M. Oorschot
         Ashton Wheelans & Hegan, Accountants
         PO Box 13-042, Christchurch
         New Zealand
         Telephone: (03) 366 7154


ATCO GROUP: Members Opt for Liquidation
---------------------------------------
Members of ATCO Group Pty Limited convened on April 12, 2006,
and decided to liquidate the Company's operations.

Gregory Stuart Andrews of G. S. Andrews & Associates, and A.
Thomas Fernandez of Fernandez Partners Pty Limited were
appointed as joint liquidators.

Contact: G. S. Andrews
         Liquidator
         G. S. Andrews & Associates
         22 Drummond Street, Carlton
         Victoria 3053, Australia
         Telephone: (03) 9662 2666
         Fax: (03) 9662 9544

         A. Thomas Fernandez
         Liquidator
         3 Chester Street, Glen Waverley
         Victoria 3150, Australia


BAYRIDGE ENTERPRISES: Members & Creditors Review Wind-up Report
---------------------------------------------------------------
A final meeting of the members and creditors of Bayridge
Enterprises Pty Limited will be held on June 8, 2006, at 11:00
a.m. for them to receive final accounts of Liquidators Schon G.
Condon and Bruce Gleeson, showing how the Company was wound up
and how its property was disposed of.

Contact: Schon G. Condon RFD
         Bruce Gleeson
         Joint Liquidators
         Jones Condon Chartered Accountants
         Level 1, 34 Charles Street
         Parramatta, New South Wales
         Australia
         Telephone: (02) 9893 9499


BELPARD INTERNATIONAL: Prepares to Pay Dividend
-----------------------------------------------
Belpard International Trading Pty Limited will declare its first
and final dividend on June 12, 2006.

Creditors who were not able to prove their debts are excluded
from sharing in the dividend distribution.

Contact: Samuel Richwol
         Liquidator
         O'Keeffe Walton Richwol
         Suite 3, 431 Burke Road
         Glen Iris, Australia


BOXY PTY: Placed Under Liquidation
----------------------------------
At a general meeting of Boxy Pty Limited on April 12, 2006,
members agreed that it is in the Company's best interests to
wind up its operations.

Creditors appointed Roger David Midgley Smith as liquidator at a
meeting held that same day.

Contact: Roger D. M. Smith
         Liquidator
         126 George Street, Morwell
         Victoria 3840, Australia


BRUNE INVESTMENTS: Members Agree to Halt Operations
---------------------------------------------------
The members of Brune Investments Pty Limited met on April 7,
2006, and decided to close the Company's business and appoint
Robert Colin Parker as liquidator.

Contact: Robert C. Parker
         Liquidator
         Freer Parker & Associates
         40 Sturt Street, Adelaide
         South Australia, Australia


BURSDALE SERVICES: Court to Hear Liquidation Bid on June 22
-----------------------------------------------------------
The Accident Compensation Corporation on April 21, 2006, filed
before the High Court of Auckland a petition to liquidate
Bursdale Services Ltd.

The Court will hear the petition on June 22, 2006, at 10:00 a.m.

Contact: Dianne s. Lester
         Maude & Miller, 2/F
         McDonald's Building
         Cobham Court, Porirua City
         New Zealand


CASHGAIN (NO. 1): Receivers Step Aside
--------------------------------------
Neil Geoffrey Singleton and Anthony Milton Sims ceased to act as
receivers and managers of the property of Cashgain (No. 1) Pty
Limited.


CHARM LOGGING: Court to Hear ACC's Liquidation Bid on June 12
-------------------------------------------------------------
An application to put Charm Logging Ltd into liquidation will be
heard before the High Court of Rotorua on June 12, 2006, at
10:45 a.m.

The Accident Compensation Corporation filed the application
before the High Court on April 5, 2006.

Contact: Dianne s. Lester
         Maude & Miller, 2/F
         McDonald's Building
         Cobham Court, Porirua City
         New Zealand


DARLINGHURST CAFE: Enters Wind-up Proceedings
---------------------------------------------
The members of Darlinghurst Cafe Pty Limited convened at a
general meeting held on April 13, 2006, and agreed to wind up
the Company's operations voluntarily.

M.F. Cooper of Frasers Insolvency Advisory was named liquidator.

Contact: M. F. Cooper
    Liquidator
    Frasers Insolvency Advisory
         Level 5, 99 Elizabeth Street
         Sydney, New South Wales 2000
         Australia


EVERETT & STEELE: To Declare Final Dividend Today
-------------------------------------------------
Everett & Steele Pty Limited will declare its first and final
dividend today, June 7, 2006.

Creditors who were not able to prove their claims will be
excluded from sharing in any distribution the Company will make.

Contact: Mark Conlan
         Receiver
         8 St. Georges Terrace, Perth
         Western Australia 6000
         Australia


EXCELRAY AUSTRALIA: Liquidators to Present Wind-up Report
---------------------------------------------------------
A final meeting of the members of Excelray Australia Pty Limited
will be held on June 8, 2006, at 10:30 a.m.

During the meeting, Liquidators Schon G. Condon and Bruce
Gleeson will present accounts of the manner in which the Company
was wound up and how its property was disposed of.

Contact: Schon G. Condon
         Bruce Gleeson
         Liquidators
         Jones Condon Chartered Accountants
         Level 1, 34 Charles Street
         Parramatta, New South Wales
         Australia
         Telephone (02) 9893 9499


HOWLE BUILDING: Final Meeting Fixed for June 8
----------------------------------------------
The members and creditors of Howle Building Company Pty Limited
will convene at a final meeting on June 8, 2006, at 10:00 a.m.,
to get an account of the manner of the Company's wind-up and
property disposal from Liquidator Danny Vrkic.

Contact: Danny Vrkic
         Liquidator
         Jirsch Sutherland & Co - Wollongong
         Level 3, 6-8 Regent Street, Wollongong
         New South Wales 2500, Australia
         Telephone: 02 4225 2545
         Fax: 02 4225 2546


JALA TRADING: Creditors Agree to Wind Up Firm
---------------------------------------------
The creditors of JALA Trading Pty Limited met on April 10, 2006,
and agreed to:

  -- voluntarily wind up the Company's business operations; and

  -- appoint Gerald T. Collins as liquidator to manage the
     wind-up activities.

Contact: Gerald T. Collins
         Liquidator
         Horwath BRI Brisbane
         Level 4, 370 Queen Street
         Brisbane, Queensland 4000
         Australia


JE BROOKSBANK: Shareholder Resolves to Wind Up Firm
---------------------------------------------------
The sole shareholder of JE Brooksbank & Associates Pty Limited
on April 5, 2006, resolved to wind up the Company's operations.

Subsequently, Gideon Isaac Rathner and David John Coyne were
appointed as joint and several liquidators.

Contact: David J. Coyne
         Gideon I. Rathner
         Joint Liquidators
         Lowe Lippman, 5 St. Kilda Road
         St. Kilda, Victoria 3182
         Australia


JENPEET PTY: Winds Up Operations
--------------------------------
At a general meeting of Jenpeet Pty Limited on April 13, 2006,
members agreed that it is in the Company's best interests to
wind up its operations.

R. G. Mansell was subsequently named as liquidator.

Contact: Richard G. Mansell
         Liquidator
         R. G. Mansell & Associates
         Level 3, 118 Queen Street
         Melbourne, Australia
         Telephone: 03 9603 0090
         Fax: 03 9603 0099


KEYLINK PROPERTIES: Court to Hear Liquidation Bid on June 22
------------------------------------------------------------
The Commissioner of Inland Revenue on April 7, 2006, filed a
petition to liquidate Keylink Properties Ltd before the High
Court of Auckland.

The Court will hear the petition on June 22, 2006, at 10:45 a.m.

Contact: Geraldine Ann Ryan
         Solicitor for the Plaintiff
         Auckland Service Centre
         17 Putney Way, Manukau City
         New Zealand
         Telephone: (09) 984 2002


LEARNING RESOURCE: Appoints Joint and Several Liquidators
---------------------------------------------------------
Shareholders of Learning Resource Centre Ltd, on May 17, 2006,
appointed Peri Micaela Finnigan and John Trevor Whitfield as
joint and several liquidators.

The Liquidators will receive proofs of claim from the Company's
creditors until June 30, 2006.

Contact: Peri Finnigan
         McDonald Vague
         Wellesley Street Post Office
         Auckland, New Zealand
         Telephone: (09) 303 0506
         Facsimile: (09) 303 0508
         Web site: www.mvp.co.nz


LEOLUX PTY: Appoints Official Receivers
---------------------------------------
John Lindholm and George Georges were appointed as receivers and
managers of the property of Leolux Pty Limited on April 11,
2006.

Contact: George Georges
         John Lindholm
         Receivers
         Level 29, 60 Bourke Street
         Melbourne, Victoria
         Australia


MUIR CARTAGE: Creditors Must Prove Debts by June 15
---------------------------------------------------
Liquidator Henry David Levin requires the creditors of Muir
Cartage Ltd to submit their proofs of claim by June 15, 2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: Henry David Levin
         C/O Amy Sexton
         McCallum Petterson
         Level 11, Forsyth Barr Tower
         55-65 Shortland Street
         Auckland, New Zealand
         Telephone: (09) 336 0005
         Facsimile: (09) 336 0010


MULTIPLEX GROUP: May Enter Mediation Talks With Cleveland
---------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
April 25, 2006, Multiplex Group commenced a legal action against
its former steel subcontractor, Cleveland Bridge UK, with the
British High Court.

According to the TCR-AP report, Multiplex initiated the lawsuit
against Cleveland Bridge to prove that some of the delay
problems at its Wembley Stadium Project in London were not
entirely its fault.  Moreover, Multiplex sought GBP38 million in  
damages from Cleveland.

Cleveland countersued Multiplex for GBP22 million.

In an update, the Sydney Morning Herald relates that Multiplex
is ready to negotiate with Cleveland at the end of their month-
long trial.

Justice Rupert Jackson said that neither Multiplex nor Cleveland
could claim outright victory and urged the parties to try to
reach a financial settlement by negotiation or mediation, or
through the court if necessary, The Age says.

The Australian Associated Press notes that Judge Jackson's
ruling was in favor of Cleveland in some respects, but also
agreed with Multiplex on the issue of breach of contract.

Justice Jackson found that Cleveland unlawfully repudiated its
sub-contract by abandoning the Wembley Project in August 2004
and failed in its claim that Multiplex breached the sub-
contract, The Age relates.  Judge Jackson also said that
Multiplex was entitled to revalue Cleveland's works.

The TCR-AP recounts that the dispute between Multiplex and
Cleveland erupted in August 2004 when the subcontractor, which
was supposed to build the Wembley Stadium's gigantic feature
arch, walked off the job over unpaid bills.  Cleveland's
departure forced Multiplex to look for a new contractor.  The
group eventually took Hollandia to complete the arch and was
unable to secure a fixed-price contract, leading to huge cost
blow-outs on the project.  By that time, significant delays had
already occurred.  Multiplex blamed these delays to Cleveland's
allegedly defective work.

However, as reported in the TCR-AP on March 1, 2006, Cleveland
Bridge had claimed that Multiplex withheld payments, and that
supply of the wrong grade of concrete for arch footings by
another Multiplex subcontractor, P.C. Harrington, was the cause
of delays to the arch in 2004.  Cleveland bundled its court
action against Multiplex and P.C. Harrington, seeking over GBP30
million in aggregate damages, into one case.  Cleveland claimed
that Multiplex revalued the steel contractor's work by deducting
about GBP14 million from its account and failed to make a
previously agreed payment of GBP1.25 million.

The Sydney Herald cites a Multiplex spokesman as saying that
mediation would be the group's first step with Cleveland, but if
that would be unsuccessful, then the matter could go back to
court next year.  The spokesman said that Multiplex is happy to
oblige by Judge Jackson's recommendation, as it has no
intention, at this stage to launch another massive legal dispute
for damages.

The Multiplex-Cleveland Case was adjourned until June 7, 2006,
when Judge Jackson will hear any application by Cleveland for
leave to appeal, AAP says.

                        About Multiplex  

Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its  
revenue from property funds management, construction, property
development, and facilities management.  The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East.  In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion.  Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.  Early in 2005, Multiplex began facing cost  
pressures on its reconstruction project for the Wembley Stadium
in London, prompting it to conduct its own internal
investigation into the Wembley difficulties.  Its auditor, KPMG,
later conducted its own thorough review of the problems, leading
to an unpredicted write-down.  In February 2005, stunned
investors sold down Multiplex shares after the Company reversed
its stance on two United Kingdom projects, writing off AU$68.3
million from its profits.  This started a series of profit
downgrades throughout 2005.  The Company's troubles continue
with plunging share prices, extortion attempts and threats of
class action from disgruntled shareholders.  The Roberts family,
as founder and controlling shareholder of Multiplex, opted to
offer AU$50 million indemnity in a bid to appease dissatisfied
shareholders.  In May 2005, Multiplex admitted its troubled
Wembley Stadium construction project may end up with a
multimillion loss.  As of February 2006, the Company is faced
with liquidity crisis after posting a massive AU$474 million
loss on Wembley and is currently in talks to bring down possible
delay fees, pegged at AU$138,000 per day beyond the scheduled
March 31, 2006 completion date.


NUMBAA FARMS: Enters Voluntary Liquidation
------------------------------------------
At a general meeting on April 18, 2006, the members of Numbaa
Farms Pty Limited opted to close the Company's business
operations and distribute the proceeds of its assets disposal.

Brett Anthony Matthews was appointed as liquidator.

Contact: Brett A. Matthews
         Liquidator
         Tait Miller McIntyre & Co. Accountants
         53 Junction Street, Nowra
         New South Wales 2541, Australia


PARATON PTY: To Hold Final Meeting Today
----------------------------------------
A final meeting of the members of Paraton Pty Limited will be
held today, June 7, 2006.

During the meeting, Liquidator Andrew McLellan will present
final accounts of the Company's wind-up operations.

Contact: Andrew McLellan
         Liquidator
         PPB Chartered Accountants
         Level 10, 90 Collins Street
         Melbourne, Victoria 3000
         Australia


PLATINUM RESOURCES: Liquidation Process Commenced
-------------------------------------------------
The liquidation of Platinum Resources Ltd commenced on May 17,
2006.

Robin Winston Hargrave, who was appointed liquidator of the
Company, will be receiving proofs of claim from the Company's
creditors until June 17, 2006.

Contact: Robin Hargrave
         O' Halloran HMT Ltd
         PO Box 6004, Wellesley Street
         Auckland, New Zealand
         Telephone: (09) 366 5065
         Facsimile: (09) 366 5001


R&D MASON: Decides to Shut Down Business
----------------------------------------
At a general meeting on April 13, 2006, the members of R&D Mason
Pty Limited agreed that the Company must voluntarily commence a
wind-up of its operations.

Contact: Tim Davis
         123 Margaret Street, Toowoomba
         Queensland 4350, Australia


REEF MANAGEMENT: To Declare Dividend on June 16
-----------------------------------------------
Reef Management Pty Limited will declare a first and final
dividend on June 16, 2006, to the exclusion of creditors who
were unable to prove their claims.

Contact: Robert Hutson
         Liquidator
         KordaMentha (Queensland)
         Level 2, Corporate Center One
         2 Corporate Court, Bundall
         Queensland 4217, Australia
         Telephone: (07) 5574 1322
         Fax: (07) 5574 1433


ROCLIN INVESTMENTS: Appoints Official Liquidator
------------------------------------------------
The members of Roclin Investments (South Australia) Pty Limited
convened at a general meeting on April 13, 2006, and agreed to
wind up the Company's operations.

Subsequently, Michael Christopher Michaels was named liquidator.

Contact: Michael C. Michaels
         Liquidator
         Sims Richmond Pty Limited
         147 Frome Street, Adelaide
         South Australia, Australia


TOPLINE PROPERTIES: Names Hargrave as Liquidator
------------------------------------------------
Robin Winston Hargrave was appointed liquidator of Topline
Properties Ltd on May 17, 2006.

Mr. Hargrave will receive proofs of claim from the Company's
creditors until June 17, 2006.

Contact: Robin Hargrave
         O' Halloran HMT Ltd
         PO Box 6004, Wellesley Street
         Auckland, New Zealand
         Telephone: (09) 366 5065
         Facsimile: (09) 366 5001


VYSO PTY: Initiates Wind-up Proceedings
---------------------------------------
At a meeting of Vyso Pty Limited held on April 13, 2006, it was
decided that the Company wind up its business operations
voluntarily.

Creditors appointed E. R. Verge G. A. Lopez and C. A. L.
Huxtable as liquidators to supervise the Company's wind-up
activities.

Contact: C. A. L. Huxtable
         G. A. Lopez
         E. R. Verge
         Liquidators
         c/o Jones Condon Chartered Accountants
         Colmel House, 241 Stirling Street
         Perth, Western Australia 6000
         Australia


WESTHAVEN BOATYARDS: Creditors Must Prove Debts by June 23
----------------------------------------------------------
Liquidator Robert John Knox requires the creditors of Westhaven
Boatyards Ltd to submit their proofs of debt by June 23, 2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: Robert John Knox
         BDO Spicers Chartered Accountants
         PO Box 2219, Auckland
         New Zealand
         Telephone: (09) 379 2950
         Facsimile: (09) 303 2830


WKM FRANCIS: Faces Liquidation Proceedings
------------------------------------------
An application to put WKM Francis Ltd into liquidation will be
heard before the High Court of Tauranga on June 12, 2006, at
10:45 a.m.

The Chief Executive of the Ministry of Fisheries filed the
application before the High Court on April 26, 2006.

Contact: Dianne Lester
         Solicitor for the Plaintiff
         Credit Consultants Debt Services Ltd
         Level 3, 3-9 Church Street
         Wellington, New Zealand
         Telephone: (04) 470 5972


* Fitch Says Investment Grade Ratings Unlikely For Credit Unions
----------------------------------------------------------------
Fitch Ratings said that smaller institutions in the Australian
banking system are more vulnerable to further downward pressure
on net interest margins.  The agency announced these findings
after conducting a study to assess the potential impact of an
increasingly competitive mortgage and retail deposit market on
Australian financial institutions.

The findings were published in the special report titled
"Squeezed at the Margins - A Study Of Australia's Smaller
Financial Institutions", where Fitch imposes a hypothetical 50
basis point decline in interest spreads on 16 Australian
financial institutions.  When results are compared, there is a
noticeably greater financial impact on the smaller institutions
in the group.

Following on from this initial test of financial vulnerability,
Fitch concentrates on the smaller institutions and considers in
detail a range of subjective factors that affect
creditworthiness.  The agency notes that net interest margins
have contracted during a boom time for Australia's mortgage
market, a core market for the smaller financial institutions.  
It is of some concern, however, that at the same time credit
acceptance standards have slipped -- for residential mortgage
loans, this includes higher loan-to-valuation ratios and
allowing borrowers to self-certify their incomes.

Within the group of smaller financial institutions, the regional
banks generally appear to be more creditworthy than the building
societies and credit unions, most of which would be unlikely to
obtain an investment grade rating.  A key point of
differentiation for Fitch is a relative lack of size and
diversity among the building societies and credit unions
generally, and the agency identifies concentration risk --
product and geographic -- as a significant issue.

"In attempting to overcome a lack of geographic diversity, some
institutions are pursuing potentially higher risk growth
strategies by expanding aggressively outside of their home
markets primarily through the use of mortgage brokers.  While
this has delivered geographic diversity and growth, it also
poses a number of challenges from a credit and operational risk
management perspective, particularly if mortgage insurance is to
be relied upon," notes Tim Roche, associate director in Fitch's
Financial Institutions Group in Australia.

Fitch also notes that while lenders' mortgage insurance makes
mortgage lending in Australia relatively low risk, it does not
eliminate risk.  Lenders must adhere to a range of disclosure
and reporting requirements under an LMI policy and are
responsible for verifying the accuracy of information presented
to them by third-parties, such as mortgage brokers.


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

CAMPION DEVELOPMENT: Court to Hear Liquidation Bid on July 19
-------------------------------------------------------------
An application to wind up Campion Development Ltd will be heard
before the High Court of Hong Kong on July 19, 2006, at 9:30
a.m.

Legend Industrial Holding Company Ltd filed the application
before the High Court on May 17, 2006.

Contact: K.M. Cheung & Co.
         Solicitors for the Petitioner
         Suites 1715-16, Jardine House
         No. 1 Connaught Place
         Central, Hong Kong


CHINA NETCOM: Inks Deal to Sell Undersea Cable for US$169 Mln
-------------------------------------------------------------
Fixed-line telephone carrier China Netcom Group Corp Ltd would
sell its undersea cable unit, Asia Netcom, for US$169 million,
the China Daily reports.

The Company had signed an agreement with Ashmore Emerging
Markets Liquid Investment Portfolio and Spinnaker Global
Opportunity Fund Limited to sell 100% of its interest in Asia
Netcom Corp, the report says.

China Netcom's state-owned parent, China Network Communications
Group Corporation, will also sell its stake in Asia Netcom for
about US$240 million, the report adds.

Qiu Lin, an analyst with Beijing-based research house Analysys
International told China Daily that the sell-off of Asia Netcom
is the right choice for cash-strapped China Netcom, which is
trying to shift its focus back to the domestic market.

China Netcom is the smallest of the top four telephone carriers
in China, but has been the most aggressive in overseas
expansion.

The China Daily relates that China Netcom is in the worst
position of all firms competing for the 3Glicences, as the
Company might be unable to afford to build a costly 3G network.

Building a 3G network hosting 10 million subscribers could cost
up to CNY20 billion or US$2.5 billion, according to Analysys.  
However, China Netcom had only CNY4.9 billion (US$612 million)
cash in hand at the end of last year.

Furthermore, a Liquidity Alert Reporter article revealed that
China Netcom Group CORP (Hong Kong) Ltd has incurred a working
capital deficit of CNY83.9 billion during the fiscal year ended
December 31, 2005, as indicated by the company's latest 6-K
filing to the U.S. Securities and Exchange Commission.  This
amount is based from total current assets of CNY14.5 billion
against CNY98.4 billion.  During the same period in 2004,
however, the company's working capital deficit was CNY81.6
billion, the SEC filing indicates.

"As the weakest player, Netcom needs to continue getting rid of
loss-making or less profitable units and cut workforce to
counter competition from its bigger rivals," Mr. Qiu said.

                          About Asia Netcom

Asia Netcom, headquartered in Hong Kong, provides submarine
cable capacity, and international data and voice services to
multinational corporations and telecom firms, primarily in the
Asia-Pacific region.

The Company consists mostly of assets belonging to Asia Global
Crossing.  Netcom bought bankrupt AGC for US$120 million plus
undisclosed liabilities in 2003.

The much-hyped deal was the first major overseas acquisition by
a Chinese telecom operator.  But Asia Netcom, according to China
Daily has remained unprofitable since the completion of the
deal.

                          *     *     *

China Netcom Group (Hong Kong) Ltd -- http://www.china-
netcom.com/ -- operates fixed-line telecommunications operator
in China and international data communications operator in the
Asia-Pacific region. The Company also provides fixed-line
telephone services, broadband and other Internet-related
services, and business and data communications services.  

On April 11, 2006, China Netcom Group CORP (Hong Kong) Ltd has
incurred a working capital deficit of CNY83.9 billion during the
fiscal year ended December 31, 2005, as indicated by the
company's latest 6-K filing to the U.S. Securities and Exchange
Commission.  The amount is based from total current assets of
CNY14.5 billion against CNY98.4 billion.  During the same period
in 2004, however, the Company's working capital deficit was
CNY81.6 billion.

A significant percentage of the Group's funding requirements is
achieved through short term borrowings. Consequently, the
balance sheet indicates a significant working capital deficit.
In the past, a substantial portion of the Group's short term
borrowings have been rolled over upon maturity.


FU SHING REALTY: Creditors' Proofs of Claim Due on June 19
----------------------------------------------------------
Liquidator Stephen Briscoe is receiving proofs of claim from the
creditors of Fu Shing Realty Development Co. Ltd until June 19,
2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: Stephen Briscoe
         Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


GOLDEN RICH: Faces Winding up Proceedings
-----------------------------------------
An application to wind up Golden Rich Enterprises Ltd will be
heard before the High Court of Hong Kong on July 26, 2006, at
9:30 a.m.

Barbican International Ltd filed the application before the High
Court on May 25, 2006.

Contact: Kelvin Cheung & Co
         Solicitors for the Petitioner
         Unit 101, 1st Floor
         Hong Kong Trade Centre
         161-167 Des Voeux Road Central
         Hong Kong


MOULIN GLOBAL: Court Orders Winding-up
--------------------------------------
The High Court of Hong Kong has ordered the wind-up of Moulin
Global Eyecare Trading Ltd, Moulin and Leadkeen Industrial Ltd,
Infocast News reports.

According to Infocast, the the winding up of Moulin, MGET and
Leadkeen will commence on June 21, 2006.  The provisional
liquidators will continue to act as the provisional liquidators
of Moulin, MGET and Leadkeen until meetings of the creditors and
contributories of these Companies are held and the court
sanctions the appointment of a liquidator in accordance with the
procedures set out in the Hong Kong Companies Ordinance,
Infocast adds.

Moulin anticipates that the whole winding up procedure will take
approximately one to two months to occur during which time the
provisional liquidators will issue a report to Moulin's
creditors and contributories and ask the Company's creditors to
submit proofs of debt against the Company.

Meanwhile, the hearing of the winding-up petition in respect of
Moulin in Bermuda is scheduled on June 16, 2006.

Infocast says that as of June 5, 2006, the members of Moulin's
board are now dismissed and their power of management
terminated.  Hence, the management of the Company, MGET and
Leadkeen now rests in the hands of the provisional liquidators.

Trading in Moulin's shares has been suspended with effect from
18 April 2005 and will continue to be suspended until the
Company is able to demonstrate its compliance with the Listing
Rules and all concerns of the Stock Exchange have been
satisfactorily addressed.

                          *     *     *

Based in Hong Kong, Moulin Global Eyecare Holdings
-- http://www.moulin.com.hk/-- was once the world's third-
largest maker of eyeglasses until it went into liquidation last
year.  The primary activity of the Company was manufacturing and
designing ophthalmic goods, the Company was also engaged in
distribution and retailing of optical frames and sunglasses.  
The Company owes creditors in Hong Kong over HKD2.4 billion.


ORIENT U.S.A.: Company's First Meeting Set on June 21
--------------------------------------------------
Creditors and contributories of Orient U.S.A. Travel Ltd will
convene for their first meeting at the liquidator's office on
June 21, 2006 at 3:00 p.m. and 5:00 p.m. respectively.

Contact: Ho Kwan Yiu
         18/F., Henley Building
         5 Queen's Road Central
         Hong Kong


POWTEK ELECTRONICS: Court to Hear Wind-up Petition on June 28
-------------------------------------------------------------
An application to wind up Powtek Electronics Co Ltd will be
heard before the High Court of Hong Kong on June 28, 2006, at
9:30 a.m.

Teamedics Manufacturing Company filed the application before the
High Court on April 19, 2006.

Contact: Ng & Co
         Solicitors for the Petitioner
         Room 1001, Takshing House
         20 Des Voeux Road Central
         Hong Kong


REALPOINT DEVELOPMENT: Creditors Must Prove Debts by July 4
-----------------------------------------------------------
Liquidator Ho Sun Fung is receiving proofs of debt from the
creditors of Realpoint Development Ltd until July 4, 2006.

Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.

Contact: Ho Sun Fung
         Room 1204, C.C. Wu Bldg
         302-8 Hennessy Road
         Wanchai, Hong Kong


RED SEA: Members Final General Meeting Set on July 3
----------------------------------------------------
Members of Red Sea Company Ltd will convene for their final
general meeting at Level 28, Three Pacific Place, 1 Queen's Road
East, Hong Kong on July 3, 2006 at 1:38 p.m.

During the meeting, Liquidator Khaldoun Bakri Barakat will
present final accounts of the Company's wind-up operations.


RIL HOLDINGS: Liquidator to Present Wind-up Report
--------------------------------------------------
Liquidator Susan Lo will present final accounts of RIL Holdings
Limited's wind-up operations on July 7, 2006, at the
liquidator's office.

Contact: Susan Lo
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


SKY RAINBOW: Appoints Joint and Several Liquidators
---------------------------------------------------
Members of Sky Rainbow Ltd on May 26, 2006, passed a special
resolution appointing Chan Chung Wai and Poon Chi Woo as joint
and several liquidators.

Contact: Chan Chung Wai
         Room 1307-8 Dominion Centre
         43-59 Queen's Road East
         Wanchai, Hong Kong


STAR CRUISES: Agrees to Sell Ship to Reduce Liabilities
------------------------------------------------------
Star Cruises Limited agreed to dispose of the vessel Norwegian
Crown at a consideration of US$110 million, Infocast News
relates.

According to Infocast, the disposal will enable the Company to
realize an estimated un-audited gain in the range of
approximately US$15 million to US$17 million.

Further, the Company intends to use the proceeds for repayment
of the existing mortgage in respect of the vessel, the general
working capital of the company and for the reduction of
outstanding liabilities under certain loans of the Company,
Infocast relates.

                          *     *     *

Star Cruises Limited -- www.starcruises.com/ -- is a Company
publicly listed in Hong Kong and is a core member of the Genting
Group and 36.1% owned by Resorts World, which is, in turn, 57.7%
owned by Genting Berhad.  Star Cruises operates 22 ships with
35,000 lower berths under five main brands:  Star Cruises and
Cruise Ferries, which service Asia Pacific, and three brands
under NCL.

On May 26, 2006, Moody's Investors Service has changed to
negative from stable its outlook for the Ba3 corporate family
rating of Star Cruises Limited.  At the same time, Moody's
likewise revised to negative from stable its outlook for the Ba3
corporate family rating and B2 senior unsecured bond rating of
NCL Corporation Limited, a wholly owned subsidiary of Star
Cruises.


SPRINGTIME INVESTMENT: Name Joint and Several Liquidators
---------------------------------------------------------
Members of Springtime Investment Corporation Ltd on May 19,
2006, appointed Hwang Koh Chee and Hwang Lip Hwa as joint and
several liquidators.

Contact: Hwang Koh Chee
         Flat 2, 21/F.,
         Chung Kiu Commercial Bldg
         47-51 Shantung Street
         Kowloon, Hong Kong


WIN HING: Court to Hear Liquidation Bid on June 14
--------------------------------------------------
Liu Wai Yu, on March 6, 2006, filed before the High Court of
Hong Kong a petition to wind-up Win Hing Civil Engineering Ltd.

The Court will hear the said petition on June 14, 2006, at 10:00
a.m.

Contact: Susan Liang & Co
         Solicitors for the Petitioner
         Rooms 1802, 18/F., 1 Duddell Street
         Central, Hong Kong


YUNNAN & HONG KONG: Faces Winding-up Proceedings
------------------------------------------------
An application to wind up Yunnan & Hong Kong Company Ltd
-- formerly known as Yung King Trading Company Ltd -- will be
heard before the High Court of Hong Kong on July 5, 2006, at
9:30 a.m.

The Bank of Communications filed the application before the High
Court on May 9, 2006.

Contact: Messrs. Deacons
         Solicitors for the Petitioner
         5/F., Alexandra House
         18 Chater Road, Central
         Hong Kong


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

BHARAT PETROLEUM: Expects to Cut Losses by INR60 Billion
--------------------------------------------------------
State oil refiner Bharat Petroleum Corporation Limited expects
its losses to drop following a rise in retail fuel prices after
a nine-month freeze, Reuters says.

Specifically, Bharat Petroleum expects its losses to decrease by
about INR60 billion over 10 months to March 2007 on the fuel
price increase and duty cuts.  Reuters relates that petrol
prices and diesel prices were raised by 9.2% and 6.6%,
respectively, on June 5, 2006.

A rise in fuel prices had been expected in March 2006, but the
Government postponed the decision because it does not want to
anger voters, the Troubled Company Reporter - Asia Pacific
recounts.

Until recently, the Government has not raised prices of petrol
and diesel since September last year.  This has negatively
impacted state oil marketing companies, which sell fuel products
at subsidized prices as ordered by the Government.

                      About Bharat Petroleum

Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is  
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene.  During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities.  There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country.  The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.

Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.  On September 23, 2005, the Company delisted its shares
from the Madras Stock Exchange Ltd, Calcutta Stock Exchange
Association Ltd and Delhi Stock Exchange Association Ltd.  In
November 2005, Bharat Petroleum's November 2004 profits
dissipated and the Company registered a INR203-crore (US$45.7
million) net loss.  By the end of the third quarter ending
December 31, 2005, the Company posted a US$231 million net loss.  
In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted, after an initial merger bid was disapproved in
September 2005.  Even with its aggressive expansion moves,
Bharat Petroleum has decided to put aside a US$1.4 million
dollar expansion project due to losses brought about by oil
subsidies, as the Company -- and the entire industry -- suffered
huge losses and has difficulty implementing expansion activities
due to the Government's refusal to allow oil companies to raise
fuel prices despite global crude oil price crossing US$70 a
barrel.  On February 20, 2006, the Petroleum Ministry has
proposed an increase of INR3 per liter each in petrol and diesel
prices and INR20 per cylinder increase in liquefied petroleum
gas price to save the oil companies from going bankrupt.


DUNLOP INDIA: Strikes Deal with Sahagunj Staff
----------------------------------------------
The row between the labor unions and the management of Dunlop
India Ltd was resolved on June 6, 2006, paving the way for the
likely commencement of commercial production at the Sahagunj
plant in September, Kolkota Newsline reports.

In a tripartite agreement yesterday, the Ruia management --
Dunlop's new management -- has agreed to pay an enhanced package
for payment of first installment towards past dues.  The
payments will be made beginning June 20, 2006, Express News
relates.

Under the agreement, all workers who worked for 11 months as of
August 19, 2001, would get INR5,000 as first installment and
those having worked less than that period would get INR2,770.

However, the unions and management would still discuss the
matter of attendance to arrive at the final amount, which was
agreed at INR30,000 per employee as one-time settlement, Express
News adds.

West Bengal Labor Minister Mrinal Banerjee said that the
commercial production was expected to commence in September
while maintenance work would be geared up, the report says.

"There was no fresh agreement at the meeting as it was not
required.  The payment will commence from June 20," Mr. Banerjee
said.

Dunlop would keep 1,179 workers permanently and the rest would
be offered the early retirement scheme.  Dunlop has about 4,500
employees.

As reported by the Troubled Company Reporter - Asia Pacific, the
dispute between Dunlop India's new management and its workers
has delayed commercial production at the Company.  The clash was
over payment of arrears to workers of the Sahagunj facility,
which was closed in August 2001 and reopened in April this year.

                      About Dunlop India

Headquartered in Kolkota, India, Dunlop India Limited is
involved principally in manufacturing and distributing
automotive tires and tubes.  The firm's other activities include
manufacturing high-pressure hoses, steelcord belting and
vibration isolators.  The company had reported profit until
March 1997.  In January 1998, the Board of Directors decided
that the Company had become sick due to the necessity of
reversing the earlier decision for sale of some real estate
property of the company through a subsidiary, Dunlop Investment
Limited.  This decision required a reversal of corresponding
entry of INR1,700 million and its reflection in the accounts of
the financial year 1997-98.  After taking this into account, the
Board of Directors decided to refer the Company to Board of
Industrial and Financial Reconstruction and abruptly announced
suspension of Dunlop's operations in both Sahagunj and Ambattur
in February 1998.  The Ministry for Law, Justice and Company
Affairs had also come to the conclusion after inspection of the
Books of Accounts of Dunlop India that there were serious
irregularities and had moved the Company Law Board for
appointment of Government Directors.  In January 2006, the Ruia
Group took over the Company and voted to reopen its plants.  
Both the Sahagunj and Ambattur plants were reopened in April
2006.


INDIAN OIL: Fuel Price Hike May Trim Losses by INR57 Billion
------------------------------------------------------------
Indian Oil Corporation expects to reduce its losses by INR57
billion in fiscal 2007 due to a hike in retail fuel prices and a
cut in customs duty, Reuters reports.

Finance Director S.V. Narasimhan told Reuters that the petrol
and diesel price increases are likely to reduce Indian Oil's
losses by INR41 billion.  On the other hand, a cut in customs
duty by 7.5% would lower losses by another INR16 billion.

Mr. Narasimhan's statement came after India raised petrol prices
by 9.2% and diesel prices by 6.6% on June 5, 2006.

According to Reuters, the Government has agreed to increase
retail prices due to pressure from refiners who have complained
of losses because domestic fuel prices have not kept up with
rising global oil prices.

The Troubled Company Reporter - Asia Pacific recounts that the
INR6,571-crore worth of oil bonds received in March 2006 has
helped Indian Oil post a net profit of INR4,031 crore in the
fourth quarter of fiscal year 2005-06, a rise of 351% over the
net profit of INR892.92 crore recorded in the same quarter of
the previous fiscal year.

However, despite the profits, Indian Oil was still losing nearly
INR100 crore per day for selling petroleum products below cost
price.  The state refiner was losing INR10.55 per liter on sale
of petrol and INR9.88 per liter on diesel due to a freeze on
increasing fuel prices.  It was also losing INR160 per cylinder
of cooking gas and INR16.78 per liter in kerosene.

                   About Indian Oil Corporation

Indian Oil was established as Indian Oil Company Limited in
1959.  Indian Oil Corporation was formed in 1964 with the merger
of Indian Refineries Limited with the Indian Oil Company Ltd.  
Indian Oil's countrywide network of over 22,000 sales points is
backed for supplies by its extensive, well spread out marketing
infrastructure comprising 167 bulk storage terminals,
installations and depots, 94 aviation fuelling stations and 87
LPG bottling plants.  Its subsidiary, IBP Co. Ltd, is a stand-
alone marketing company with a nationwide network of over 3,000
retail sales points.  

In spite of its large production capacity and smooth operations,
Indian Oil incurred huge losses as a result of a Government
mandate, which prohibits public sector oil marketing firms from
raising fuel prices despite skyrocketing global prices.  For
years, Indian Oil has been selling fuel at subsidized prices,
which is way below the costs it pays for importing fuel from
overseas markets.  The Company has not been able to pass on the
high prices leading to large under-recoveries and losses.   

Early this year, the Government has offered a bailout package to
help rescue oil companies, including Indian Oil, from going
bankrupt.  Under the package, the Government issued Indian Oil,
Bharat Petroleum, Hindustan Petroleum and IBP oil bonds worth
INR10,000 crore to INR12,000 crore to compensate them for not
raising LPG and kerosene prices.  The move was expected to
improve their balance sheets.


HINDUSTAN PETROLEUM: Lower Losses Seen After Fuel Price Hike
------------------------------------------------------------
Hindustan Petroleum Corporation Limited is looking to cut INR20
billion from its losses following the Government's approval of a
fuel price hike, Reuters reveals.

After nine months of negotiations, the Government has finally
agreed to increase retail fuel prices due to constant pressure
from oil refiners who have been operating at a loss because
domestic fuel prices have not kept up with rising global rates.

Aside from the price hike, the Government also cut customs duty
by a quarter to 7.5%, Reuters says.

Hindustan Petroleum said its losses would drop significantly due
to the price rise.  However, it has not worked out the savings
from the duty cut, Reuters adds.

             About Hindustan Petroleum Corporation

Mumbai-based Hindustan Petroleum Corporation Ltd
-- http://www.hindustanpetroleum.com/-- was formed in 1974 on  
nationalization of ESSO India operations.  The operations of  
Caltex were merged in 1976.  With two refineries at Mumbai and
Vizag, Hindustan Petroleum is currently is the second largest
player in both the Indian oil sector as well as the highly
competitive lubricants market.  However, the Company has lately
been incurring losses due to a government mandate to sell fuel
at subsidized prices.  The Company is counting on a Government
bailout to save it from bankruptcy.


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

EXCELCOMINDO PRATAMA: Fitch Upgrades BB- Issuer Default Ratings
---------------------------------------------------------------  
Fitch Ratings, on June 5, 2006, upgraded PT Excelcomindo
Pratama's Long-term foreign currency and local currency Issuer
Default Ratings to 'BB-' from 'B+'.  The Outlook on the ratings
is Stable.

The upgrade follows XL's steady operating performance in recent
quarters and strong forward momentum resulting from progress
with its network expansion.  The company's financial flexibility
and capital structure have also improved on completion of its
IPO in September 2005, which raised IDR2.8 trillion in
additional equity from a 20% listing.  XL's tolerance in terms
of financial leverage appears to be less aggressive than Fitch
had assumed prior to the IPO.

XL's majority ownership by Telekom Malaysia is a strong factor
supporting the upgrade, owing to TM's superior credit quality
and ability to provide financial and operational support.  The
agency estimates that XL will account for approximately 10% of
TM's group revenue and 13% of group EBITDA when consolidated in
2006.  And while this is not a large contribution to group
earnings, the company is arguably of strategic significance
given that it has robust growth prospects and is also TM's
largest overseas investment.

With XL now a consolidated subsidiary of TM, the support
rationale is reinforced by its position as a potential cross-
default party per provisions on TM's outstanding bonds.  But
Fitch acknowledges that there has been no track record of
explicit support and that financial support, if any, would
likely come in the form of loans or quasi-debt, rather than
pure-equity, although it is noted that Malaysian capital
controls could make it operationally difficult for TM to provide
timely support.  In this regard, Khazanah's -- TM's parent and
the investment arm of the Malaysian government -- presence as a
direct shareholder in XL slightly eases concerns.

The rating reflects XL's entrenched position in the Indonesian
cellular industry, its highly cash generative operations and
strong growth potential.  These credit strengths are tempered by
sustained margin pressure, continued vulnerability to forex risk
and its negative free flow position on account of high capex
requirements.  Competition in the cellular segment is
intensifying with sustained heavy network investments by
existing operators and anticipated competition from new entrants
by late 2006.  Fitch expects that new entrants will face
formidable challenges in Indonesia given the entrenched
positions of existing operators, however the agency makes
positive note of the fact that XL has accelerated its capex
spending with a view to solidifying its market position as much
as possible before new operators gain material traction.

XL funded FY05 capex of IDR3.1trn through operating cash flows
and proceeds from its equity issuance.  Consequently total
adjusted leverage -- total debt plus 8x annual operating lease
charges divided by EBITDAR -- improved to 2.4x as at FYE05 from
2.8x the previous year, but further weakened to 3.8x upon
inclusion of the USD250 million bond issued in January 2006.  XL
has a capex plan of around IDR5.0 trillion for FY06, which will
be funded mostly through operating cash flows and new debt of
around IDR4.0 trillion.  The company's ability to service
financial obligations is sound in view of its long-dated debt
maturities.  However near-term liquidity is only fair due to
high capex requirements, highly negative FCF generation and 3G
licensing costs.

XL's ratings also consider persistent regulatory uncertainty and
the country's slowly developing regulatory regime as well as the
risks inherent in Indonesia, including political, social,
economic and currency instability and the lack of an effective
legal framework.

The Stable Outlook for the ratings is based on Fitch's
expectation that XL will maintain and potentially strengthen its
operating position in the medium-term, with the support of TM.
However, downward pressure on the ratings could arise in the
event of dilution to the cross default provisions in TM's bond
documentation or if capex is more aggressive than currently
anticipated causing material deterioration to key credit
protection ratios.  In this regard, Fitch expects XL's total
adjusted leverage not to exceed 4.5x.

XL is Indonesia's third-largest cellular operator; as at Q106
the company had 8.2 million subscribers representing total
market share of around 15% but with cellular revenue market
share of approximately 10%.  TM and its parent Khazanah together
hold 73.7% in XL.


INDOFOOD SUKSES: Plans to Sell Shares in Palm Oil Business
----------------------------------------------------------
PT Indofood Sukses Makmur is considering having an initial
public offering for its crude palm oil business, Business Times
reports, citing Indofood President Anthony Salim.

According to the report, Indofood may sell shares in its palm
oil units due to investor interest in the sector.  The palm oil
business makes up about 16% of Indofood's sales.

Business Times relates that there is a greater demand for palm
oil in India and China, thus driving up prices.  The two
countries are the world's biggest buyers of palm and soyabean
oils.

Erwan Teguh, head of research at PT Danareksa Sekuritas,
believes that Indofood's IPO plan could help the Company fund a
plantation expansion plan.

As reported in the Troubled Company Reporter - Asia Pacific on
June 5, 2006, Indofood plans to set aside IDR700 billion for
capital expenses, of which IDR200 billion would go toward
expanding its palm oil plantations.

Bloomberg notes that Indofood will spend the IDR500 billion for
other investments within the year.

Kevin Sietho, a deputy director at Indofood, said that the
Company may have to merge some of its units before selling them
in a public offering.

The Jakarta Post identifies these units as:

   1. PT Salim Ivomas Pratama,
   2. PT Inti Boga Sejahtera,
   3. PT Sawitra Oil Grains,
   4. PT Kebun Ganda Prima,
   5. PT Citranusa Intisawit,
   6. PT Gunung Mas Raya,
   7. PT Indriplant,
   8. PT Cibaliung Tunggal Plantations,
   9. PT Serikat Putra,
  10. PT Bitung Manado, and
  11. PT Argha Giri Perkasa.

The Company also plans to employ a cost-cutting strategy to
diversify its energy sources partially impaired by the
continuing high oil prices on the international market, The
Jakarta Post adds.

                          *     *     *

PT Indofood Sukses Makmur Tbk (Indofood) --
http://www.indofood.co.id/-- is Indonesia's premier processed    
foods company.  Its products, including instant noodles, wheat
flour, branded edible oils and fats, baby foods, snack foods,
food seasoning, lead domestic market shares.  Indofood is
currently the largest instant noodles manufacturer and the
largest flour miller in the world, with installed capacities of
approximately 13 billion packs and 3.6 million tons per annum,
respectively.  Indofood's products are distributed mainly
through its subsidiaries, including Indomarco, independent
distributors, as well as some cooperatives, that bring
thecompany's products to more than 150,000 retail outlets in the
country.  Total employees as of December 1999 were 42,172.  A
combination of shrinking profits, escalating costs, losses,
competition and a declining rupiah prompted the Company to cut
around 2,000 or 4.4% of its workforce and slash 40 products from
its range in 2005.

In 2005, PT Indofood's total outstanding debt fell to IDR6.8
trillion from IDR7.9 trillion in 2004.  The United States dollar
denominated debts also fell to US$190.6 million in the same
period from US$317.4 million in 2004.   
  
PT Indofood has bought back US$166.3 million of its US$280
million Eurobonds due in 2007.  The Company also plans to redeem
all the outstanding balance of the Eurobonds this year.


INDOSAT: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
------------------------------------------------------------
Fitch Ratings, on June 5, 2006, affirmed PT Indosat Tbk's Long-
term foreign and local currency Issuer Default Ratings at 'BB-'.
The Outlook on the ratings is Stable.

Indosat's ratings reflect its entrenched position in the
Indonesian telecommunications sector as the second-largest
cellular operator and dominant provider of international direct
dialing services.  The company also provides multimedia, data
communications and Internet based services through its
subsidiaries, Indosat Mega Media and Lintasarta.  Indosat's IDD
business has been declining for several years on account of VoIP
substitution and increased competition; but this has been offset
by robust growth in the cellular and MIDI businesses which
contributed 71.9% and 16.5% respectively to consolidated
revenues in FY05.

However the company's cellular operating profile weakened
somewhat during the year, as reflected by the decline in its
revenue market share to around 26% in FY05 from around 29% the
previous year.  This was partly owing to network quality issues
arising from the integration of IM3 and Satelindo legacy
infrastructure, which was completed by the end of 2005.

As Fitch had anticipated, Indosat's credit protection measures
weakened slightly in 2005 with new debt issuances of around
IDR3.6 trillion associated with refinancing and large capex
requirements for 2005 and 2006.  As at FYE05, net adjusted
leverage stood at 1.4x while its FFO net interest cover stood at
6.2x - metrics which are still strong for the rating category.
With cash-capex of IDR6.8trn during the year and a high dividend
payout at 49% of prior year net income, Indosat's free cash flow
was significantly negative in FY05.  The company has a capex
plan of around IDR7.0trn for FY06, which it proposes to fund
through operating cash flows and reserves.  Based on investment
trends in the industry and the expectation that Indosat will
endeavor to maintain its competitive position, Fitch anticipates
Indosat generating negative FCF over the next one to two years.

The ratings also take into account the intensifying competition
in the cellular segment with anticipated competition from new
entrants by late 2006, sustained heavy network investments by
existing operators and the rapid strengthening of the number
three operator, PT Excelcomindo Pratama's, franchise.  New
entrants are expected to focus initially on Java, which is of
some concern given Indosat's current dependence on the region.
However, Fitch believes that these operators will face
formidable challenges in the Indonesian market given the
entrenched positions of existing operators.

Historically, Indonesian operators including Indosat have
exhibited high prepaid churn rates on account of the 'calling
card phenomenon' which is prevalent in Indonesia.  Unlike in the
past, high churn rates are a credit concern going forward given
the prospect of increased competition from challengers and new
entrants.  However the ongoing implementation of prepaid
subscriber registration is expected to reduce churn rates which
presently average c.10% for the prepaid segment.

In a separate development, the industry is shortly expected to
shift to cost-based interconnection and the new framework could
have significant implications for industry tariffs, operators'
cost-structures and their relative pricing flexibilities.  As
per the current proposed framework, the impact on Indosat is
viewed as neutral to marginally positive.  Fitch will monitor
developments in this regard and comment in further detail on
implications for Indosat.

Indosat's ratings also consider the slowly developing and
persistently uncertain regulatory regime as well as the risks
that are inherent in Indonesia, including political and social
instability, economic and currency volatility and a legal
framework that lacks robustness.

The Stable Outlook for the ratings is based on Fitch's
expectation that Indosat's credit profile is unlikely to undergo
a material change over the medium term. Upward rating pressure
would be dependent on continued robust growth, sustained stable
margins and substantial debt reduction.  Evidence of Indosat
approaching a positive FCF position would also provide upward
pressure, as long as this is achieved without compromising its
long-term competitive position.  Conversely, downward pressure
would arise if Indosat's competitive position in the cellular
segment weakens with further material declines in revenue market
share.  This would in turn likely delay a return to a positive
FCF position and maintain pressure on key coverage ratios.


KERETA API: Lack of Government Funding Caused Railway Accidents
---------------------------------------------------------------
The high number of fatal accidents in state railway network PT
Kereta Api can be attributed to the Indonesian Government's lack
of funding for the Company, the Jakarta Post reports, citing
Kereta Api management and employees.

A record of train accidents since 2002 shows:

             Year     No. of Accidents    Fatality
             ----     ----------------    --------
             2002           155              40
             2003           109              33
             2004           127              35
             2005            98              64
     Jan-Apr 2006            12              20

According to Kereta Api President Roni Wahyudi, the Government
itself is having financial difficulties and cannot spare the
funds for the state railway, which means that it cannot afford
to maintain broken communications systems or railway networks in
need of repair.  Company management cannot improve labor
conditions and cover maintenance costs for infrastructure due to
the lack of funds.  Mr. Wahyudi added that the Company's monthly
revenues are used to cover labor and operation costs, hence it
could not post profits.  

The Post writes that the Government owes IDR1.3 trillion in
public service obligations and infrastructure maintenance to
Kereta Api from 2000 to 2004.  The Government has yet to pay
IDR2.6 trillion in a pension scheme to the Company's 29,000
workers, which it had suspended in 1991 when the Company's
status was changed from a non-profit state firm to a limited
liability firm, since under Indoesian law, only civil servants
are entitled to state pensions.  This created conflict between
Kereta Api employees and the Government.

Mr. Wahyudi said that the Company has set aside IDR664 billion
to aid the Government in fulfilling its pension payment scheme
obligations to Kereta Api employees.  Company workers union
chairman Iwan Setiawan said they planned to meet with government
officials to discuss Kereta Api's problems, adding that Kereta
Api should be liquidated or its non-profit assets should be sold
off or ticket prices raised if the Government cannot meet its
obligations to Company employees.

Headquartered in Bandung, West Java, Indonesia's state railway
PT Kereta Api -- http://www.kereta-api.com/-- operates a large    
and busy network.  Its 6,000 kilometers of track extend  
throughout Java and Sumatra and carry some 200 million  
passengers per year.  Since 1999, KAA has operated as a limited  
corporation and is currently implementing a strategy for change  
designed to make it Indonesia's main choice of transport for all  
sectors of Indonesian society.

The Troubled Company Reporter - Asia Pacific states that the
Company's losses in fiscal 2005 amounted to IDR113 billion.  The
Company also expects to post a IDR40-billion increase in its net
losses this year to IDR153 billion on rising fuel prices and
delays in repairs.


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

LIVEDOOR COMPANY: 1,600 Shareholders File JPY10-Bln Damages Suit
----------------------------------------------------------------
Over 1,600 shareholders of Internet firm Livedoor Co. Ltd filed
a lawsuit against the Company seeking JPY10.21 billion in
damages for losses incurred when the Company's stock plunged
this year in the wake of an accounting scandal, the China Post
reports, citing Associated Press.

The shareholders said that they were misinformed about the
Company when they bought shares.

The Troubled Company Reporter - Asia Pacific reported that in
January 2006, Livedoor ex-president and founder Takafumi Horie,
and other Livedoor directors were found to have conspired to
cover up the Company's JPY310 million pre-tax loss for the
business year ended September 2004, by doctoring financial
accounts to instead show an inflated pre-tax profit of JPY5.03
billion.  Moreover, Mr. Horie and the Company executives
allegedly relayed false information on a merger, with the intent
to boost the stock price of Livedoor's subsidiary, Livedoor
Marketing Co.

The TCR-AP recounts that following the accounting
scandal in January, Livedoor's stock price plunged to JPY94 per
share from over JPY300 per share.  Livedoor was delisted from
the Tokyo Stock Exchange on April 14, 2006.

On April 26, the first batch of shareholders filed a suit
against the Company to seek JPY2 billion in compensation for
their investment losses.  Another group of 110 shareholders
filed a damages suit against the Company, seeking JPY940 million
in damages, according to a TCR-AP report on June 1, 2006.

The Post relates that in a statement filed with the Tokyo
District Court, the plaintiffs comprised 1,621 individuals, 23
executives, six firms and two other group companies.  Under
Japanese law, investors can file damage lawsuits if Livedoor or
its company executives are found guilty of giving false
information about the company and its businesses.

Four Livedoor ex-directors, two external accountants, and both
Livedoor and subsidiary Livedoor Marketing Limited, have pled
guilty to charges of accounting fraud and violating the
Securities Exchange Law at their trial's first hearing on
May 26, 2006.  This while Mr. Horie denied the charges against
him.  The directors currently stand trial for the fraud charges,
while Mr. Horie is scheduled to stand trial next month.

Headquartered in Tokyo, Japan, Livedoor Company, Limited --
http://corp.livedoor.com/en/-- is involved in out portal site      
"livedoor," financial business, corporate web solutions, data
center and IP telephony business.


MITSUBISHI MOTORS: Trims North America Discounted Sales
-------------------------------------------------------
Mitsubishi Motors Corp. plans to cut its discounted sales to car
rental firms to 12% from 18% in fiscal 2005 in its North
American market, XFN Asia relates, citing the Nihon Keizai
Shimbun.

According to Nihon Keizai, the Company plans to improve
profitability with the planned reduction, as well as to lower
sales incentives for fleet sales and instead focus marketing on
sales to individuals.  Mitsubishi Motors targets a 16% rise in
its North American sales to 181,000 units.

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few  
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.  
The Company also operates consumer-financing services and
provides this to its customer base.  Mitsubishi's problems stem,
in part, from the scandal surrounding years of systematically
covering up auto defects and ill-advised auto lending policies
in the United States.

Mitsubishi Motors appeared to be turning around for a few years
under an alliance with DaimlerChrysler AG, but the German
automaker withdrew additional financing in 2004.  Since then,
Mitsubishi Motors has received massive cash infusions from the
Mitsubishi group of companies, including a bank, machinery maker
and trading company, to support revival efforts.

Mitsubishi adopted the "Mitsubishi Motors Revitalization Plan"
on January 28, 2005, as its three-year business plan covering
fiscal 2005 through 2007.  The main objectives of the plan are
"Regaining Trust" and "Business Revitalization."

                          *     *     *

According to an April 28, 2006 report by the Troubled Company
Reporter - Asia Pacific, Mitsubishi Motors reported an 81% drop
in its net loss for the fiscal year 2005 ended March 31, 2006,
to JPY92.2 billion, from a JPY474.8 billion loss the previous
year.

The report states that according to Mitsubishi, the loss was
attributed to special restructuring costs, including a re-
evaluation of its property.  

Sales also fell slightly to JPY2.12 trillion last year, from
JPY2.122 trillion in 2004.  However, the Company expects to
return to profit this year on an increase in worldwide
shipments, with sales expected to reach JPY2.23 trillion.


SANYO ELECTRIC: Analysts Advise Investors to Buy Company Bonds
--------------------------------------------------------------
Two analysts are endorsing the sale of Sanyo Electric Co.'s
five-year bonds, which have gained in the last two months, since
the Company's earnings indicate that it can pay its net
JPY229.9-billion debt, Bloomberg News reports.

Sanyo announced its plan to increase sales and spending of its
battery division, which creates batteries for hybrid cars and
notebook computers.

Nikko Citigroup Limited chief credit analyst Takayuki Atake
analyzed Sanyo's figures and determined that the Company's net
debt stood at JPY229.9 billion, but that its May 2006 earnings
showed that the Company is generating enough income to repay the
debt within two years.  Mr. Atake recommends that investors buy
Sanyo bonds as its battery business is good.

JP Morgan Securities Japan Co. bond analyst Mana Nakazora also
recommends that investors buy Sanyo bonds, though she is unsure
that the Company would turn around as it estimates it would.

Bloomberg states that Sanyo, on May 18, 2006, forecasted a
JPY20-billion net profit for fiscal 2006, against a JPY205.7-
billion net loss last year.  

In order to raise funds, Sanyo sold new shares worth JPY300
billion to investors Daiwa Securities SMBC Co., Goldman Sachs
Group Inc., and Sumitomo Mitsui Financial Group Inc. in February
2006.  They now own a combined 49.8% stake in the Company.

Headquartered in Osaka, Japan, Sanyo Electric Company, Limited,
-- http://www.sanyo.com/-- is one of the world's leading makers  
of consumer electronics products.

As reported by the Troubled Company Reporter - Asia Pacific on
May 25, 2006, Standard & Poor's affirmed the Company's negative
'BB' long-term corporate credit and 'BB+' senior unsecured debt
ratings, which were removed from CreditWatch.  According to
Standard & Poor's credit analyst Katsuyuki Nakai, Sanyo Electric
made progress in restructuring its underperforming segments, and
its cash flow generation is improving.  But the rating has a
negative outlook on uncertainties in the Company's restructuring
plans, which include business alliances in the white goods
segment, and its ability to recover fully in its financial
performance.  

The Company reported these key figures in its financial report
for the quarter ended March 31, 2006:

                               As of               As of
                           March 31, 2006      March 31, 2005
                           --------------      --------------
   Current Assets         JPY1.42 trillion    JPY1.49 trillion
   Current Liabilities    JPY1.05 trillion    JPY1.37 trillion
   Total Assets           JPY2.15 trillion    JPY2.60 trillion
   Total Liabilities      JPY1.73 trillion    JPY2.26 trillion
   Stockholders' Equity  JPY402.89 billion   JPY288.27 billion
   Net Loss              JPY205.66 billion   JPY171.54 billion


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

INTAN UTLITIES: Releases First Quarter Report
---------------------------------------------
Intan Utilities Berhad on May 31, 2006, filed with the Bursa
Malaysia Securities Berhad its financial report for the first
quarter ended March 31, 2006.

For the first quarter, the Group's revenue increased by 30.6% to
MYR201.14 million as compared to MYR154 million registered in
the same quarter last year.  The higher revenue recorded was due
to contribution by the Group's retail division resulting from
the opening of additional stores.

The pre-tax profit of MYR1.5 million recorded for the quarter
under review as compared to the previous year's first quarter
pre-tax loss of MYR0.5 million was mainly due to the
compensation of MYR9 million accrued from Berjaya Land Berhad in
respect of the abortion of the Proposed Acquisition of shares in
Berjaya Sports Toto Berhad. Excluding the compensation, the
Group recorded a pre-tax operating loss of MYR7.5 million mainly
due to long gestation for new stores coupled with less customers
count caused by exceptionally heavier rainfall in the quarter
under review.

The Group's revenue increased by 7.4% to MYR201.12 million as
compared to MYR187.33 million recorded in the preceding quarter.  
The higher revenue recorded was due to contribution by the
Group's retail division resulting from the opening of additional
stores.

The quarter under review registered an operating loss of MYR7.5
million as compared to a pre-tax profit of MYR6.5 million for
the preceding quarter.  This was largely due to the finalization
of volume incentives in the preceding quarter.

As of March 31, 2006, the Company's balance sheet showed
MYR457,961,000 in total assets and MYR267,213,000 in total
liabilities.

However, the Company's March 31 balance sheet also showed
strained liquidity with MYR151,393,000 in total current assets
available to pay MYR243,032,000 in total current liabilities
coming due within the next 12 months.

The Board did not recommend any dividend for the quarter ended
March 31, 2006.

             Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue  

    201,143       154,043         201,143        154,043

* Profit/(loss) before tax

      1,531          -533           1,531           -533

* Profit/(loss) after tax and minority interest  

      1,969            29           1,969             29

* Net profit/(loss) for the period

      1,969            29           1,969             29

* Basic earnings/(loss) per shares (sen)

       2.04          0.03            2.04           0.03

* Dividend per share (sen)  

       0.00          0.00            0.00           0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

     1.8446                       1.8242

The Company's First Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_intanutilities060606.pdf

                  About Intan Utilities Berhad

Headquartered in Kuala Lumpur, Malaysia, Intan Utilities Berhad
-- http://www.intan.com.my/-- engages in manufacturing,  
warehousing and trading of all semiconductor components.  Its
other activities include sourcing, treating and supplying of
treated water and investment holding.  Operations are carried
out in Malaysia, the United States of America and Japan.  The
Company has defaulted on several loan facilities due to its
tight cash flow position.  It is currently formulating plans to
address the issue.


INTAN UTILITIES: Posts Default Updates
--------------------------------------
Intan Utilities Berhad's board of directors disclosed that its
wholly owned subsidiaries, IDS Electronics Sdn Bhd and IDS
Technology, have been negotiating with Bank Islam Malaysia
Berhad to restructure a total of MYR10,878,953 in existing loans
from short term to long term.

Since the loans were defaulted, the total repayment that IDSE
made up to April 30, 2006, amounted to approximately MYR3.39
million.  The repayments comprise fixed monthly repayment of
MYR90,000 from February 2004 to July 2005, and thereafter
MYR120,000 per month for August and September 2005.  The
repayment from October to April 2006 amounted to MYRM150,000 per
month.

                  About Intan Utilities Berhad

Headquartered in Kuala Lumpur, Malaysia, Intan Utilities Berhad
-- http://www.intan.com.my/-- engages in manufacturing,  
warehousing and trading of all semiconductor components.  Its
other activities include sourcing, treating and supplying of
treated water and investment holding.  Operations are carried
out in Malaysia, the United States of America and Japan.  The
Company has defaulted on several loan facilities due to its
tight cash flow.  It is currently formulating plans to address
the issue.


KELANG PEMBENA: Faces Winding up Proceedings
--------------------------------------------
Kelang Pembena Kereta2 Sendirian Berhad has been served with a
wind-up petition filed by Polymicro (M) Sdn Bhd on May 26, 2006.

The petition is in respect of a claim by Polymicro for refund of
rentals and deposits paid under a Tenancy Agreement dated
December 20, 1994, together with interest, amounting to
MYR600,250, which Kelang Pembena has contested.  

The wind-up petition was presented to the High Court of Malaya
at Johor Bahru on May 10, 2006, and is scheduled for hearing on
July 5, 2006.

On April 13, 2006, the Polymicro commenced an action against
Kelang Pembena at the Johor Bahru Sessions Court for the refund
of rentals and deposits paid.  Kelan Pembena entered into a
defense contesting the amount claimed on the grounds that there
exists a disparity in the duration of the "double payment", as
claimed by the Petitioner, as well as a set-off claim by Kelang
to the Petitioner for unpaid water bills.

A judgment was entered by the Sessions Court on March 21, 2006,
in favor of Polymicro for the judgment sum of MYR600,250.  
Kelang filed an appeal to the Johor Bahru High Court on
March 28, 2006.

Kelang offered Polymicro several attempts for an out-of-court
settlement in relation to the judgment sum.  However, Polymicro
chose to file a winding up petition, which was accordingly
served on Kelang on May 26, 2006.

Meanwhile, Kelang instructed its solicitors on May 30, 2006, to
release the bank draft dated April 27, 2006, to the Petitioner's
solicitors to pay the full judgment sum, and also a full refund
in the event Kelang succeeds in its appeal.

Kelang will challenge the wind-up petition if the payment and
undertaking is rejected by the Petitioner.  The solicitors of
KPKK are pursuing the appeal in the Johor Bahru High Court.

Kelang Pembena Kereta2 Sendirian Berhad a wholly owned
subsidiary in the UMW Group, which has a total investment of
MYR12.6 million as of April 30, 2006.


LITYAN HOLDINGS: Updates on Loan Default
----------------------------------------
Lityan Holdings Berhad provided an update on the status of its
various credit facilities in default by the Company and its
subsidiaries to the financial institutions as of May 31, 2006.

                     List of Loans Defaulted

   Company/Subsidiary      Lender         Principal & Interest
   ------------------      ------         --------------------
   Digital Transmission
      Systems Sdn Bhd      RHB Bank Berhad          MYR265,979

   Lityan Systems Sdn Bhd  RHB Bank Berhad             534,505

   Lityan (L) Inc.         Bank Islam Malaysia
                           Berhad Labuan
                           Offshore Branch           5,860,284

   Lityan (L) Inc.         Bank Islam Malaysia
                           Berhad Labuan
                           Offshore Branch           3,633,105

   Lityan Holdings Bhd     Ambank Berhad             1,181,878

   Outstanding Amount as of May 31, 2006            11,476,052

                  About Lityan Holdings Berhad

Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides  
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.  
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding.  The Group carries out its operations in
Malaysia and the Philippines.   

The Company had been classified as an affected listed issuer
pursuant to Practice Note 17 as issued by the Bursa Malaysia
Securities Berhad on May 10, 2005.  On January 16, 2006, the
Company entered into a conditional Restructuring Agreement to
undertake the Proposed Restructuring Scheme with the intention
of restoring the Company onto stronger financial footing via an
injection of new viable businesses.


LITYAN HOLDINGS: First Quarter Losses Shrink 67%
------------------------------------------------
Lityan Holdings Berhad, on May 31, 2006, filed with Bursa
Malaysia Securities Berhad its financial report for the first
quarter ended March 31, 2006.

For the quarter under review, the Group reported a revenue of
MYR8.95 million which is an improvement of 85% as compared to
the revenue of MYRM4.85 million of the same quarter last year.  
On a quarter-on-quarter comparison, the loss of the quarter had
improved by 67% to MYR0.60 million as compared to the MYR1.77
million loss previously.  The lower loss for the quarter was
mainly due to the decrease in depreciation of MYR0.5 million as
compared to the previous corresponding quarter of MYR2.5
million.  This was due to the classification of certain assets
as 'assets held for sale' and therefore pursuant to the
Financial Reporting Standard, these assets are not depreciated.

In comparison to the immediate preceding quarter, the Group's
revenue has decreased from MYR16.12 million to MYR8.95 million.  
The loss however is an improvement from MYR27.51 million in the
immediate preceding quarter to MYR0.60 million this quarter.  
This was mainly due to various allowances and impairments
amounting RM29.67 million which had been recognized in the
immediate preceding quarter in accordance with the Financial
Reporting Standards.

As of March 31, 2006, the Company's balance sheet showed
MYR80,769,000 in total assets and MYR153,011,000 in total
liabilities, resulting in a stockholders' equity deficit of
MYR72,242,000.

The Company's March 31 balance sheet also revealed strained
liquidity with MYR48,328,000 in total current assets available
to pay MYR179,445,000 in total current liabilities coming due
within the next 12 months.

No dividends have been paid, declared or proposed since the end
of the Company's previous financial year.  The board of
directors do not recommend any interim dividend for the period
under review.

             Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue  

      8,952         4,848           8,952          4,848

* Profit/(loss) before tax  

       -661        -1,730            -661         -1,730

* Profit/(loss) after tax and minority interest  

       -589        -1,765            -589         -1,765

* Net profit/(loss) for the period

       -589        -1,765            -589         -1,765

* Basic earnings/(loss) per shares (sen)  

      -0.58         -1.72           -0.58          -1.72

* Dividend per share (sen)

       0.00          0.00            0.00           0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

   -0.7027                        -0.7025

The Company's First Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_lityanholdings060606.xls

                  About Lityan Holdings Berhad

Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides  
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.  
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding.  The Group carries out its operations in
Malaysia and the Philippines.   

The Company had been classified as an affected listed issuer
pursuant to Practice Note 17 as issued by the Bursa Malaysia
Securities Berhad on May 10, 2005.  On January 16, 2006, the
Company entered into a conditional Restructuring Agreement to
undertake the Proposed Restructuring Scheme with the intention
of restoring the Company onto stronger financial footing via an
injection of new viable businesses.


MALAYSIA AIRLINES: 3,200 Staff Line Up for Redundancy Package
-------------------------------------------------------------
Malaysia Airlines has received around 3,200 applications from
staff for its mutual separation scheme as of June 4, 2006, The
Star Online reports.

MAS managing director Idris Jala still expects the number to
climb up by the June 7 deadline, The Star says.

According to the Edge Daily, the applications are not yet
encouraging since a portion will be rejected.  The airline
expects to trim its 22,500-strong workforce to 5,000.

A large number of cuts are expected to come from the
headquarters and back-end staff, where they are currently
overstaffed, The Edge adds.  On the other hand, pilots and
technical crew will most likely have their applications rejected
given a shortage of manpower in these areas.

The Troubled Company Reporter - Asia Pacific recounts that MAS
had wanted to axe 6,500 employees to meet its turnaround agenda.  
About a quarter of MAS's total cost are made up of staff
salaries and wages, the second highest after fuel.  It is
estimated that MAS could save between MYR300 million and MYR400
million a year in staff costs.

                      About Malaysia Airlines

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

The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, and MYR616 million for the nine-month ended Dec. 31,
2005, due to high fuel and operating costs, and unprofitable
routes.  In late February 2006, it unveiled a radical rescue
plan to raise MYR4 billion in order to stay afloat and return to
profitability by 2007.  Under the restructuring plan, the
airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
Whistle-blowing and stop corporate sponsorship.

Malaysia Airlines posted a pre-tax loss of MYR309.118 million
for the first quarter ended March 31, 2006, as against a pre-tax
profit of MYR112.017 million in the same quarter of 2005.  The
Company's balance sheet as of March 31, 2006, showed strained
liquidity with total current assets of MYR3,328,129,000
available to pay MYR4,913,488,000 in total current liabilities
due in the next 12 months.  The Company now has a shortfall of
MYR1,585,359,000.


MBF CORPORATION: Pre-tax Loss Shrinks to MYR2.2 Mln in 1Q/FY06
--------------------------------------------------------------
Bursa Malaysia Securities Berhad, on May 31, 2006, received
MBf Corporation Berhad's financial report for the first quarter
ended March 31, 2006

The Group recorded a revenue of MYR9.31 million for the current
financial quarter and year to-date ended March 31, 2006, as
compared to the previous year's corresponding quarter of
MYR12.46 million, a decrease of MYR3.15 million or 25.28%.  The
adverse variance in revenue for the current financial quarter
was mainly due to lower sales in the property development
division.   Revenue consisted of income derived from leasing,
leisure and timeshare, and property development.  

The Group recorded a pre-tax loss of MYR2.20 million for the
current financial quarter ended March 31, 2006, as compared to a
loss of MYR8.30 million in the same quarter last year.  The
favorable variance was attributed to lower provision for
doubtful debts, and provision for liquidated ascertained damages
and net guarantee return in leasing and property development
division respectively.

No interim ordinary dividend has been paid, proposed or declared
for the financial period ended March 31, 2006.

             Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue  

      9,311        12,459           9,311         12,459

* Profit/(loss) before tax  

     -2,198        -8,304          -2,198         -8,304

* Profit/(loss) after tax and minority interest  

     -2,156        -7,329          -2,156         -7,329

* Net profit/(loss) for the period

     -2,156        -7,329         -2,156          -7,329

* Basic earnings/(loss) per shares (sen)  

      -0.76         -2.60          -0.76           -2.60

* Dividend per share (sen)  

       0.00          0.00            0.00           0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

    0.0610                        0.0656

The Company's First Quarter Report and its accompanying notes
are available for free at:

   http://bankrupt.com/misc/tcrap_mbfcorp060606.xls

   http://bankrupt.com/misc/tcrap_mbfcorpnotes060606.pdf

                  About MBf Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, MBF Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products and property
development. Other activity include investment holding.  The
Group operates in three main areas, namely, Malaysia, Indonesia
and Hong Kong and Taiwan collectively. The Group's principal
activities are mainly operated in Malaysia except for the credit
card business, which is carried out in Indonesia.  The Group has
no significant operations in Hong Kong and Taiwan other than
certain residual assets from a subsidiary that has since been
liquidated in Taiwan.  The Company is classified under Bursa
Malaysia Securities Berhad's Practice Note 17 category and is
required to formulate a plan to raise its shareholders' equity
to meet the Bourse's Listing Requirements.


MBF CORPORATION: Unit Cuts Default Amount to MYR16.5 Million
------------------------------------------------------------
MBf Corporation Berhad's wholly owned subsidiary, MBf Leasing
Sdn Bhd, total default in loan repayment sum of MYR17,478,317
has been reduced to MYR16,478,317 with repayment of RM1,000,000
to its "Scheme B" Creditors.

In addition, an amount of MYR421,317 has been paid to all Scheme
Creditors, resulting in a shortfall of MYR810,929 in interest
repayment to all Scheme Creditors for the month of May 2006.  As
of May 31, 2006, the cumulative interest shortfall amounts to
MYR5,476,273.

                  About MBf Corporation Berhad

Headquartered in Kuala Lumpur, Malaysia, MBF Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products and property
development. Other activity include investment holding.  The
Group operates in three main areas, namely, Malaysia, Indonesia
and Hong Kong and Taiwan collectively. The Group's principal
activities are mainly operated in Malaysia except for the credit
card business, which is carried out in Indonesia.  The Group has
no significant operations in Hong Kong and Taiwan other than
certain residual assets from a subsidiary that has since been
liquidated in Taiwan.  The Company is classified under Bursa
Malaysia Securities Berhad's Practice Note 17 category and is
required to formulate a plan to raise its shareholders' equity
to meet the Bourse's Listing Requirements.


OLYMPIA INDUSTRIES: Third Quarter Pre-tax Loss Hits MYR46-Mln
-------------------------------------------------------------
Olympia Industries Berhad, on May 31, 2006, filed with the Bursa
Malaysia Securities Berhad its financial report for the third
quarter ended March 31, 2006.

The Group's revenue for the quarter under review increased to
MYR61.2 million from MYR53.6 million in the quarter ended
March 31, 2005.  The improvement in Group's revenue was mainly
due to higher sales registered by gaming and property
development division.

The loss after taxation attributable to members of the Company
for the current quarter ended March 31, 2006, increased to
MYR46.7 million from MYR24.4 million in the quarter ended
March 31, 2005, which was mainly due to additional provision for
finance costs, recognition of property development costs and
deferred expenditure as expense.

The Group's loss before taxation attributable to members of the
Company for the quarter under review increased to
MYR46.6 million from MYR24.5 million in the quarter ended
March 31, 2005.

As of March 31, 2006, the Company's balance sheet showed
MYR991,747,000 in total assets and MYR1,971,727,000 in total
liabilities, resulting in a shareholders' equity deficit of
MYR979,980,000.

The Company's March 31 balance sheet also showed strained
liquidity with MYR353,224,000 in total current assets available
to pay MYR1,897,098,000 in total current liabilities coming due
within the next 12 months.  The Company has net current
liabilities of MYR1,543,874,000.

There was no interim ordinary dividend declared for the current
financial period ended March 31, 2006.

The Group is in the process of implementing its restructuring
scheme and pending completion, the results of the Group is not
expected to show any material improvements for the current
financial year ending June 30, 2006.

             Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue

     61,213        53,629         166,009        150,366

* Profit/(loss) before tax  

    -46,630       -24,485        -114,068        -80,163

* Profit/(loss) after tax and minority interest  

    -45,856       -25,256        -111,695        -78,327

* Net profit/(loss) for the period

    -45,856       -25,256        -111,695        -78,327

* Basic earnings/(loss) per shares (sen)  

      -9.02         -4.97          -21.97         -15.41

* Dividend per share (sen)  

       0.00          0.00            0.00           0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

     -1.9500                         -1.7300

The Company's Third Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_olympiaindustries060606.xls

                 About Olympia Industries Berhad

Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development.  Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.  Operations are carried out in Malaysia, Papua New
Guinea and Singapore.  The Company has incurred losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.  The Company has unveiled a proposed restructuring
scheme in July 2001, which include capital reductions,
disposals, debt novation and debt restructuring.


PAN MALAYSIAN: March 31 Balance Sheet Reveals Tight Liquidity
-------------------------------------------------------------
Pan Malaysian Industries Berhad on May 31, 2006, submitted for
public release its financial report for the fourth quarter ended
March 31, 2006.

During the current financial year ended March 31, 2006, the
Group recorded higher revenue of MYR347.49 million as compared
to MYR319.30 million recorded in the preceding financial year.  
The increase in revenue was mainly contributed by the retailing
operations of its subsidiary companies.

The Group recorded a loss before tax of MYR222.71 million for
the current financial year ended March 31, 2006 as compared to
the profit before tax of MYR90.48 million in the preceding
financial year.  The loss in the current financial year was
mainly due to share of loss, including impairment of assets, of
associated companies.

The Group recorded revenue of MYR95.68 million and loss before
taxation of MYR32.28 million for the current quarter as compared
to revenue of MYR105.74 million and loss before taxation of
MYR152.85 million in the preceding quarter.  The higher revenue
in the preceding quarter was mainly due to higher sales achieved
by the retailing operations of its subsidiary companies during
the festive seasons and school holidays in the preceding
quarter.  The higher loss before tax in the preceding quarter
was mainly due to share of higher loss of associated companies
in the preceding quarter, comprising substantially of impairment
of assets.

The Company's March 31 balance sheet showed strained liquidity
with MYR141,733,000 in total current assets available to pay
MYR319,327,000 in total current liabilities coming due within
the next 12 months.  The Company has net current liabilities of
MYR177,594,000.

There was no dividend recommended for the current year ended
March 31, 2006.  

            Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue  

     95,678        82,404         347,495        319,300

* Profit/(loss) before tax  

    -32,279        -4,696        -222,710         90,476

* Profit/(loss) after tax and minority interest  

     -9,766        -3,116        -172,898        91,670

* Net profit/(loss) for the period

     -9,766        -3,116        -172,898        91,670

* Basic earnings/(loss) per shares (sen)  

      -0.39         -0.13           -6.97          3.70

* Dividend per share (sen)  

       0.00          0.00            0.00          0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

    -0.0197                        0.0623

The Company's Fourth Quarter Report is available for free at:

   http://bankrupt.com/misc/tcrap_panmalaysian060606.xls

                 About Pan Malaysia Industries

Headquartered in Kuala Lumpur, Malaysia, Pan Malaysian
Industries Berhad is involved in the operation of departmental
and specialty stores and hypermarket.  Its other activities
include investment and property holding.  The Group's operation
is predominantly in Malaysia, Hong Kong and Singapore.  The
Company has been suffering recurring losses since 1999.  Its
March 31, 2006, balance sheet showed strained liquidity with
MYR141,733,000 in total current assets available to pay
MYR319,327,000 in total current liabilities coming due within
the next 12 months.  The Company has net current liabilities of
MYR177,594,000.


TRADEWINDS CORPORATION: Books MYR17-Million Loss in 1Q/FY2006
-------------------------------------------------------------
Tradewinds Corporation Berhad on May 31, 2006, submitted for
public release its financial report for the first quarter ended
March 31, 2006.

For the quarter under review, the Group recorded revenue of
MYR310.3 million, representing a decrease of MYR6 million from
MYR316.3 million recorded in the same quarter last year.  The
decrease in revenue was mainly due to lower sales of oil palm
products by the plantation division and no sale of land in the
current quarter.  The lower revenue was partially offset by the
increase in revenue by the hotel and manufacturing divisions.  

For the first quarter, the Group recorded a loss before taxation
of MYR17 million as compared to a profit before taxation of
MYR0.9 million achieved in the corresponding quarter last year.  
The loss in the current quarter was mainly due to lower sales of
oil palm products and higher operating expenses from plantation
division, higher depreciation charge on hotel properties,
retrenchment benefits of Mutiara Beach Resort Penang and lower
contribution from associates.  Excluding the higher depreciation
and effect of retrenchment benefits, profit from operations
improved on the back of better performance from hotel division
and manufacturing division due to higher average selling price
of refined sugar.

The Group recorded lower loss before taxation of MYR17 million
in the current quarter as compared to MYR32.3 million in the
fourth quarter of last year mainly due to higher allowance for
impairment loss in an associate, impairment of assets and
reduction in interest charged to a joint venture made in the
preceding quarter.

The Company's March 31 balance sheet also showed strained
liquidity with MYR1,016,770,000 in total current assets
available to pay MYR1,211,706,000 in total current liabilities
coming due within the next 12 months.  The Company has net
current liabilities of MYR194,936,000.

The Company's board of directors did not recommend any dividend
for the period ended March 31, 2006.

             Summary of Key Financial Information

        Individual Period              Cumulative Period
    Current Year  Preceding Year  Current Year   Preceding Year
    Quarter       Corresponding   to Date        Corresponding
                  Quarter                        Period
    31-03-2006    31-03-2005      31-03-2006     31-03-2005
    MYR'000       MYR'000         MYR'000        MYR'000

* Revenue  

    310,270       316,316         310,270        316,316

* Profit/(loss) before tax  

    -16,997           873         -16,997            873

* Profit/(loss) after tax and minority interest

    -23,612        -8,973         -23,612         -8,973

* Net profit/(loss) for the period

    -23,612        -8,973         -23,612         -8,973

* Basic earnings/(loss) per shares (sen)  

      -3.79         -1.44           -3.79          -1.44

* Dividend per share (sen)  

       0.00          0.00            0.00           0.00

* As at end of               As at Preceding
Current Quarter            Financial Year End

     2.1900                         1.9800

The Company's First Quarter Report and its accompanying notes
are available for free at:

   http://bankrupt.com/misc/tcrap_tradewindscorp060606.xls

   http://bankrupt.com/misc/tcrap_tradewindscorpnotes060606.pdf

              About Tradewinds Corporation Berhad

Tradewinds Corporation Berhad -- formerly known as Pernas
International Holdings Berhad -- is one of Malaysia's largest
and most dynamic investment holding company. The group is
focused on a diverse range of business activities, which include
plantations, hotels, manufacturing, and properties, and aims to
be the premier investment company.  The Group has entered into a
restructuring scheme to settle debts, curb losses and streamline
its operations.  In 2004, the Group's debt was significantly
restructured with the reorganization of the hotel businesses.  
The Company also unveiled a new logo after its change of name in
July 2004, in line with its corporate re-branding exercise.  The
Group divested some non-core assets in line with its objective
to streamline its businesses.  In February 2005, the
acquisitions of property development land to diversify earnings
and improve cash flow were completed.  Despite this, the Group's
debt level is still deemed substantial relative to its
capitalization.  


WEMBLEY INDUSTRIES: Fails to Address Default Due to Insolvency
--------------------------------------------------------------
Wembley Industries Berhad and its major subsidiary, Plaza Rakyat
Sdn Bhd, are still unable to settle their default in payments of
interest and principal sums to various lenders due to
insolvency.

However, the Company's board of directors believes that the
Group will regain its solvency upon the successful
implementation of its proposed restructuring scheme.

The Group is taking steps to secure more time to fulfill the
conditions precedent stipulated in its Debt-Restructuring
Agreement and to subsequently implement its restructuring.  

The Company's board of directors will make available to Bursa
Malaysia Securities Berhad any updates on the restructuring of
the DRA.

            About Wembley Industries Holdings Berhad

Headquartered in Sarawak Malaysia, Wembley Industries Holdings
Berhad is a developer of commercial properties and investment
holding.  Its other activities are the development of the inter-
state bus and taxi terminal, the retail podium and the budget
hotel.  The Company has been placed under the Practice Note 4
category due to its tight cash flow position.  On January 7,
2003, Malaysia's Foreign Investment Committee approved the
Company's regularization plan.  Subsequently, on April 7, 2003,
the FIC revised its approval to include the possible
participation of Daewoo Corporation, the former turnkey
contractor of Plaza Rakyat Project in the Company's Proposed
Debt Restructuring.  The Company's ability to continue as a
going concern hinges on the successful implementation of the
Scheme.

As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR422,729,000 and total liabilities of
MYR1,214,178,000, resulting in a MYR791,749,000 stockholders'
equity deficit.  The balance sheet also showed strained
liquidity with MYR415,545,000 in total current assets available
to pay MYR1,214,178,000 in total current liabilities coming due
within the next 12 months.  The Company's accumulated losses as
of March 31, 2006, have reached MYR1,063,555,000.


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

FIL-ESTATE CORPORATION: PHP0.65 Million Net Loss for 1Q2006
-----------------------------------------------------------
Fil-Estate Corporation posted a PHP0.65 million net loss for the
quarter ending March 31, 2006, a 96.32% improvement over the
PHP17.65 million net loss in the previous corresponding quarter.  
The net loss was brought about by the regular operating expenses
of the Company.

Fil-Estate said that it plans to continue its strategy of
maintaining itself as a holding company with key investment in
the Metro Rail Transit Project through MRT Holdings.  The
operation for the next 12 months will be strictly confined to
that of an investment company.  Whether the Company will be
investing in MRT Phase 2 projects is yet to be determined.

Cash increased by about PHP0.02 million from PHP0.15 million in
2005 to PHP0.17 million in 2006.  The increase is due to related
parties account of about PHP1 million, corresponding to
additional advances made by Fil-Estate Management, Inc., one of
the major stockholders of the company.

Fil-Estate's financial report for the quarter ended March 31,
2006, reflects these key figures:

                      Fil-Estate Corporation
                       Financial Highlights
                        (in PHP millions)

                               As of           As of  
                             03/31/2006      12/31/2005  
                             ----------      ----------  
     Current Assets                0.17            0.15
     Total Assets              1,767.82        1,767.80
     Current Liabilities           0.79        1,138.69
     Total Liabilities         2,075.77        2,074.76
     Capital Deficit             308.75          308.09

                                   Quarter Ending  
                             03/31/2006      03/31/2005  
                             ----------      ----------  
     Net Loss                      0.65           17.65

The Company's quarter report ending March 31, 2006, is available
for free at:

   http://bankrupt.com/misc/Fil_Estate_Quarter_Report_033106.pdf

                   About Fil-Estate Corporation

Fil-Estate Corporation was originally incorporated as San Jose
Oil Company, Inc., whose primary purpose was to prospect for and
market oil, natural gas and other minerals and secondarily
invest in non-mining corporation or other enterprises.  In July
1996, the Board of Directors and the stockholders approved the
change in the Company's primary purpose from oil exploration to
that of a holding company authorized to engage in property and
infrastructure development, as well as the increase in
authorized capital stock from PHP300 million to PHP2 billion
with par value of PHP1.00 per share.

On January 22, 1998, the Securities and Exchange Commission
approved the change in corporate name to Fil-Estate Corporation,
the change in primary purpose from oil exploration to a holding
firm, the change in par value from PHP0.01 to PHP1.00 per share,
and the declassification of the A and B shares.  The Company
shall engage in infrastructure, privatization, leisure and real
estate investments through directly managed subsidiaries,
associated entities and strategic alliances.

The key investment of Fil-Estate Corporation is in the form of
equity interest in Metro Rail Transit Holdings, Inc., and Metro
Rail Transit Holdings 2.  The combined investment in these two
holding companies represents approximately 28.5% interest in the
MRT phase I train system which runs from North triangle and Taft
Avenue.

No dividends have been declared in the last two calendar years.


GOTESCO LAND: Auditors Raise Substantial Doubt on Going Concern
---------------------------------------------------------------
After auditing Gotesco Land, Inc.'s financial report for the
year ended December 31, 2005, Laya Mananghaya & Co. raised
significant doubt on the Company's ability to continue operating
as a going concern due to its financial difficulties in
generating enough cash flow to meet obligations on time and
maintain operations.

Gotesco acknowledges that its ability to continue as a going
concern is dependent on its ability to generate sufficient cash
flow to meet its obligations on a timely basis and to obtain
additional financing or refinancing as may be required.

The Company posted a net loss of PHP98.56 million for the
financial year ended Dec. 31, 2005, against a PHP34.55-million
net income in 2004, due to a slump in sales caused by the 1997
Asian financial crisis.

Gotesco's 2005 annual financial report reflects these key
figures:

                        Gotesco Land, Inc.
                       Financial Highlights

                               As of           As of  
                             12/31/2005      12/31/2004  
                             ----------      ----------  
     Current Assets       PHP91,921,741   PHP62,502,890
     Current Liabilities    858,545,695     817,111,344
     Capital Deficiency     509,145,965     410,585,178

                                    Year Ended
                             12/31/2005      12/31/2004  
                             ----------      ----------  
     Net Income (Loss)      (98,560,787)     34,555,374

Gotesco's 2005 annual report is available for free at:

   http://bankrupt.com/misc/GO_17A_Dec2005.pdf

Gotesco Land, Inc., is the holding company of the Ever-Gotesco
Group of Companies for its property development projects.
Originally registered with the Securities and Exchange
Commission on August 28, 1935, as Surigao Consolidated Mining
Co. Inc., the Company engaged in the exploration and mining of
gold, silver, copper and iron ores in Surigao del Norte and
Zamboanga del Sur.

In 1992, SEC approved the Company's new name, Suricon Resources
Corporation, which was diversified into non-mining activities
and amended its primary purpose to include property development
with focus on leisure and resort development.  The Ever-Gotesco
group converted SRC into a holding firm for its property
projects to focus on the new property venture, and renamed it
Gotesco Land, Inc. in May 1996.

Since 1997, the Company's operation has been severely affected
by the slump in the local real estate industry as a result of
the Asian financial crisis.  The Company is experiencing cash
flow problems in meeting its obligations.

In 1997, Gotesco Land underwent a corporate restructuring that
led to its acquisition of ownership interest in projects
principally involved in leisure and tourist estate developments
and assets owned by Jose C. Go, Gotesco Properties, Inc. and
Golden Bay Resort, Inc., through certain share-for-swap
arrangements.

Gotesco Land is currently engaged in several legal proceedings
with former employees, the Bureau of Internal Revenue, Siana
Gold Corp., and the Philippine Tourism Authority.

The Company has not declared any dividends for the last three
fiscal years.  In 2005, the Company's debt-to-equity ratio stood
at -280.83%, compared to -448.73% in 2004.

A Gotesco subsidiary -- Nasugbu Resort, Inc. -- obtained loans
from Land Bank of the Philippines amounting to PHP200 million.  
The loan was secured by a real estate mortgage on a parcel of
land owned by Gulod Resort, Inc., a wholly owned company of GLI.  
The debt agreements contain, among others, provisions regarding
restriction on the declaration or distribution of cash dividends
and extending advances to its affiliates and stockholders.  The
Company defaulted on its loan agreement.  Consequently, a
foreclosure was effected through a public auction wherein Land
Bank of the Philippines, being the highest bidder, bought the
properties mortgaged.  The certificate of sale provided the
Company with a right to redeem the foreclosed properties owned
by Gulod Resort, Inc., within one year until September 25, 1999.  
The redemption period had lapsed and the Company did not
exercise its right to redeem the foreclosed properties.  Due to
non-redemption of the foreclosed properties, there is a
contingent loss of about PHP73 million, which is the excess of
the carrying value of the property over the public auction bid
price.  Should Gotesco Land redeem the properties, it will have
to pay such bid price plus interests and penalties, subject to
negotiation with LBP.

GRI filed a civil case against LBP for the annulment of the
foreclosure sale on grounds of deficiencies in the foreclosure
proceedings.  Accordingly, the Company had not recorded the
foreclosure sale in its books.


NATIONAL POWER: Secures US$22.6-Mln Loan from Foreign Banks
-----------------------------------------------------------
National Power Corp. secured a US$22.6-million loan from French
investment banks Natexis Banques Populaires and BNP Paribas for
its Rural Electrification Service project, the Philippine Star
relates.

According to a report in the Manila Bulletin, the Monetary Board
of the Bangko Sentral ng Pilipinas approved the 25-year loan, a
large part of which would carry a 0.4% interest, whereas the
other portion would accrue a 4.12% interest for 12.5 years.

BSP Governor Amando M. Tetangco Jr. said that Napocor plans to
use the loan to expand its power distribution network to rural
areas that had not yet been serviced or were underserved.

National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers, and reported a PHP29.9 billion loss in 2004,
after a PHP117-billion net loss in 2003.  

The Star writes that in the first review of National Power's
portfolio, it was projected that the Philippine Government would
have to absorb some PHP600 million worth of debt.  The
Government initially absorbed Napocor's PHP200 billion debt,
which was incurred when the state firm adopted international
accounting standards, forcing it to report its foreign exchange
losses.  The Department of Finance is studying the legality of
the Government's absorption of the debt.

Napocor's remaining debt could still be absorbed by the
Government, but the Development Budget Coordinating Committee
wants to see the Company improve operations and sell off non-
profitable assets in order to reduce its debt, instead of
relying on government aid to do so.  

Headquartered in Quezon City, Philippines, National Power Corp.
-- http://www.napocor.gov.ph/-- is a state-owned utility that  
builds and operates nuclear, hydroelectric, thermal, and
alternative power generating facilities.  It works with
independent producers under a build-operate-transfer program.  
With a generating capacity of more than 11,500 megawatts,
National Power sells electricity to distributors and industrial
companies.  To comply with the privatization bill approved by
the Philippine Congress, the Company started selling off its
generation assets to help pay for the utility's estimated debt
of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

The Troubled Company Reporter - Asia Pacific reported on
April 5, 2006, that National Power posted a PHP16 million profit
in 2005, the first time in seven years, on the Energy Regulation
Commission's approval of a rate increase, the use of an improved
fuel mix and better fuel prices.


VITARICH CORP: Auditor Raises Going Concern Doubt
-------------------------------------------------
Vitarich Corp. posted a net loss of PHP249.27 million for the
fiscal year ended Dec. 31, 2005, smaller than its 2004 net loss
of PHP291.19 million, the Troubled Company Reporter - Asia
Pacific learns from the Company's annual report submitted to the
Philippine Stock Exchange.

The Company's 2005 consolidated sales revenues dropped 30% to
PHP3 billion from its PHP4.3 billion revenues in 2004, mainly
due to continued sales decline in its poultry products, as it
shifts its focus to its stable feeds business.

Consequently, the Company posted an operating loss of PHP90.9
million in 2005, 17% lower as compared in 2004.  The magnitude
of Vitarich's losses was greatly reduced due to efforts to educe
its poultry business volume.

Vitarich's 2005 consolidated annual financials reflect these
figures:

                          Vitarich Corp.
                       Financial Highlights
                            (in PHP)

                               As of           As of  
                             12/31/2005      12/31/2004
                             ----------      ----------
    Current Assets        1,314,401,139   1,789,939,879
    Current Liabilities     654,563,252     992,179,033
    Total Assets          3,424,192,865   3,945,512,625
    Total Liabilities     3,204,166,157   3,445,267,613
    Stockholders' Deficit 1,780,625,465   1,532,042,165

                                     Year Ended
                             12/31/2005      12/31/2004  
                             ----------      ----------  
     Net Loss               249,274,339     291,192,560

The Company's financial report for the year ended December 31,
2005, is available for free at:

   http://bankrupt.com/misc/VITA_17A_Dec2006.pdf

After editing Vitarich's 2005 annual report, Punongbayan &
Araullo raised substantial doubt the Company's ability to
continue as a going concern, due to significant losses for the
past three years, including net losses worth PHP249.3 million in
2005 and PHP291.2 million in 2004, resulting in significant
deficit amounting to PHP1.8 billion and PHP1.5 billion as of
Dec. 31, 2005 and 2004, respectively.

Vitarich's management has instituted these measures to boost
revenues and minimize expenses:

   -- Negotiation with local creditor banks for a more permanent
      restructuring agreement thereby having a longer period of
      repayment of the Company's loans and plan for negotiation
      with the other creditors;

   -- Alternate sourcing of raw materials to produce competitive
      cost of finished products; and

   -- Continuous implementation of cost-reduction measures; and,
      concentration on high margin products.

Vitarich has finalized an amendment agreement only with the
local creditors, and have yet to reach a formal agreement with
its other creditors -- assignees/asset management companies.
Essentially, the Company is proposing for a lower interest rates
and longer period of repayment of loans in view of the
substantial losses incurred for the year 2005 and from previous
years.  This will favorably impact the Company's liquidity ratio
and likewise allow it to adjust debt servicing to a level
operational cash flow can sustain, while at the same time assure
recovery and subsequent growth.

On July 1, 1998, the Company entered into an Omnibus Agreement
with various local creditor banks where its existing debt of
PHP3.176 billion was restructured into a Revolving Credit Line
in the amount of PHP503 million, a seven-year Term Loan
amounting to PHP1.668 billion and 10-year Convertible Notes
amounting to PHP1.005 billion.

First Amendment:

On November 14, 2001, the Omnibus Agreement was amended by
restructuring the Convertible Notes of PHP1.005 billion such
that:

(1) PHP500 million was made part of the existing Revolving
    Credit Line Facility in addition to the existing Revolving
    Credit Line facility; and

(2) PHP505 million, together with the accrued interest
    of PHP150 million, was converted into a term loan to mature
    on September 30, 2007.

The interest rates at the First Amendment were still at market
rates as the loans bear the interest rates of the original loans
prior to their restructuring.

Second Amendment:

On March 19, 2004, the Omnibus Agreement was further amended
where the existing debt was reclassified into Serviceable Debt
and Non-Serviceable Debt.  The Second Amendment took effect
retroactively on January 2, 2003 upon fulfillment of all
conditions precedent as stated in the agreement.  Under this
agreement, the Company's PHP3.198 billion loans were classified
into two major components:

1. Serviceable debt of PHP1.040 billion with a 9% annual
   interest rate, due and payable on Jan. 1, 2006.

   Under the Second Amendment, the interest due and payable in
   2003 amounted to PHP93.1 million, of which PHP23.5 million
   was required to be paid as a condition precedent for the
   agreement to be binding.  The PHP69.6 million unpaid interest
   for 2003 is capitalized as part of the loan amount but is not
   subject to interest, and is payable in four equal quarterly
   payments starting on March 31, 2005.  The interest accruing
   from Dec. 31, 2003, up to Jan. 1, 2006, is to be paid
   quarterly commencing on March 31, 2004, and at the end of
   every quarter thereafter.  The Company settled the interest
   charges in 2004.

2. Non-serviceable Debt of PHP2.158 billion, consisting of the
   principal amount of PHP2.09 billion and capitalized interest
   incurred in 2002 worth PHP68.7 million.  Both principal and
   capitalized interest are due and payable on Jan. 1, 2006,
   and, under the Second Amendment, earns no interest during the
   term of the agreement, from Jan. 2, 2003 to Jan. 1, 2006.

The Company later sought an amendment to its Second Amendment
based on its assessment of its financial capability.  The
proposed amendment calls for a more permanent restructuring
agreement and therefore the rescheduling of the repayment of the
debt over a longer period subject to acceleration in case the
Company's financial condition significantly improves.  While the
renegotiations were going on for the amendment of the terms and
conditions of the Second Amendment Agreement, several creditor
banks transferred their respective rights, titles and interests
over the loan obligations of the Company -- amounting to
PHP1.458 billion -- to various assignees/asset management
companies.  While the Company and the assignees/asset management
companies were resolving some pending issues, on March 30, 2006,
the Company and the majority of the remaining local creditor
banks have agreed to enter into an Amendment to the Second
Amendment Agreement.

Under this Amendment, the principal obligation to the local
creditor banks is divided into three equal tranches:

   a. Tranche 1 Debt - PHP603 million
   b. Tranche 2 Debt - PHP603 million
   c. Tranche 3 Debt - PHP603 million

The Tranche 1 Debt will be paid over seven years from March 31,
2005, to March 31, 2012, and have a grace period of three
quarters on principal repayment.  The principal repayment will
start on the second year.

The Tranche 2 Debt will be paid over 10 years from March 31,
2005, to March 31, 2015, and have a grace period of seven years
on principal repayment.  The principal repayment will begin on
the eighth year -- April 1, 2013.

The Tranche 3 Debt will be paid over a period of 12 years and
two quarters from March 31, 2005, to Sept. 29, 2017, and have a
grace period of 10 years on principal repayment.  Principal
repayment will start on the eleventh year.

In case Vitarich defaults in paying any quarterly repayment, it
will be allowed to remedy the default by paying the amount in
default on the next amortization date.  In case the Company is
able to fully repay the Tranche 1 Debt, the Tranche 2 Debt will
automatically begin to earn interest from the date of full
repayment of the Tranche 1 Debt.  The interest period of Tranche
3 Debt will be accelerated in like manner in case the Company so
able to fully repay Tranche 2 Debt.

Accordingly, Tranche 3 Debt will begin to earn interest from the
date of full repayment of Tranche 2 Debt.  The excess cash
generated by the Company will be applied to repay the debt
tranche currently being serviced by the Company and the
obligation arising from a local creditor's exercise of its
option to collect the Restructuring Fee.  The Company will apply
the excess cash whether or not the obligation being paid is
already due and demandable.

Restructuring Fee:

In consideration for the concessions obtained from the creditor
banks, Vitarich grants the local creditor banks an option to
claim Restructuring Fee.  The Company has no obligation to pay
the Restructuring Fee until and unless a creditor formally
demands for it.  However, upon the full settlement of the
Tranche 3 Debt, the Company will pay the Restructuring Fee to
each of the remaining local creditor banks who exercised their
option to collect such.  Irrespective of whether a particular
creditor exercises said option or not, the Company is obligated
to pay the fee upon the occurrence of any event of default as
defined in the Omnibus Agreement.

As of December 31, 2005, the Company has estimated the
Restructuring Fee worth PHP194.4 million payable to each local
creditor banks in proportion to the amount of principal
obligation due to them.  It has also estimated Restructuring Fee
applicable to assignees of PHP155.6 million.  These amounts were
considered as interest in the computation of the amortized cost
of the interest-bearing loans.

Mortgage Trust Indenture:

The debt will continue to be secured by the Mortgage Trust
Indenture executed by the Company in favor of the creditor banks
evidenced by new Mortgage Participating Certificates reflecting
the revised terms of the Amendment to the Second Amendment
Agreement.  The debt will also continue to be secured by the
existing assignments of shares of stock of the Company owned by
certain stockholders, the existing continuing suretyship
executed in favor of the creditor banks by the Company's
Chairman of the Board of Directors and the voluntary lien
on excess cash as discussed above.

Accession Agreement:

The Amendment to the Second Amendment Agreement with the local
creditor banks was signed by a majority of the local creditor
banks.  The creditor banks who did not sign were given the
option to be a party to the said Agreement through an Accession
Agreement where such creditor banks are deemed, for all intent
and purposes, to be original parties to the Amendment to the
Second Amendment.

Several creditor banks transferred their respective rights,
titles and interests over the loan obligation of the Company
(totaling PHP1.458 billion) to various assignees.  These
assignees have not yet entered into any amendment agreement with
the Company.  However, the remaining local creditor banks
stipulated in a Supplemental Agreement to the Amendment to the
Second Amendment Agreement that the Company will not grant more
favorable terms to the assignees of the other creditor banks
without the written consent of the former.  Improvements on the
terms or conditions given to the assignees of the other
creditors without such written consent of the creditor banks
will automatically be granted to the local creditor banks or
will result in an event of default.

For the assignees of the other creditor banks who have not been
a party to any amendment, Vitarich prepared and estimated the
future cash flows for the repayment of their loan balances which
included a Restructuring Fee amounting to PHP155.6 million.  The
terms of the future cash flows and the Restructuring Fee
resemble that of the local creditor banks.

The Company, in the absence of any agreement, is unable to
disclose any possible term of amendment agreement.

Under the Second Amendment dated March 19, 2003, entered into by
the Corporation with the creditor banks, if the Corporation
defaults in its obligations therein, this shall be considered as
an event of default under the Amended Omnibus Agreement, and
will result to an adverse financial liability against the
Corporation.

                          *     *     *

Vitarich Corporation was incorporated and organized in the
Philippines.  As at Dec. 31, 2005 and 2004, the Company holds
100% interests in Philippines' Favorite Chicken, Inc. and
Gromax, Inc., both domestic corporations.  The Company is
presently engaged in poultry breeding and in the manufacture and
distribution of various poultry products such as chicken, animal
and aqua feeds, and day-old chicks, among others.


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

CONTINENTAL CHEMICAL: S&P Affirms B+ Credit Rating
--------------------------------------------------
Standard & Poor's Ratings Services on June 6, 2006, affirmed its
'B+' long-term corporate credit rating on Singapore's
Continental Chemical Holdings Limited. The outlook is stable.

"The rating on CCHL remains constrained by the highly cyclical
nature of its businesses, the expansion-related risks associated
with its new projects, its aggressive financial profile, and
weak liquidity," said Standard & Poor's credit analyst Anshukant
Taneja.
"These weaknesses are partially mitigated by the company's
geographically diversified operating facilities, its diverse
market coverage in Asia, and its prominent presence in some
product segments."

The US$58 million capital infusion by existing shareholders in
May 2006 mitigates some of the immediate concerns on CCHL's
liquidity and funding for its US$125 million plasticizers and
phthalic anhydride facility in Zhuhai, China.  CCHL has also
arranged a US$75 million term-loan syndicated facility to fund
this project. The company is in the process of complying with
all the conditions precedent of this loan.

"If CCHL is unable to draw on the syndicated facility by the end
of the third quarter of 2006 or thereabouts, we believe that
this could result in weakening liquidity and erosion of the
company's credit profile. This could place downward pressure on
the outlook and the rating," said Mr. Taneja.

The CCHL group is engaged in the manufacturing and marketing of
intermediate chemicals and specialty resins in Singapore,
Thailand, Indonesia, and China. For the year ended Dec. 31,
2005, CCHL reported consolidated revenues of US$269 million and
net profits of US$19.5 million.


GIAM KAY: Pays Dividend to Unsecured Creditors
----------------------------------------------
Giam Kay Tea Company (Private) Limited, on June 2, 2006,
declared a first and final dividend of 100% to unsecured
creditors.

Contact: Goh Ngiap Suan
         Liquidator
         336 Smith Street
         #06-308 New Bridge Centre
         Singapore 050336


LEONG HENG: Court Hears Bankruptcy Petition
-------------------------------------------
An application for a bankruptcy order against Leong Heng Fashion
Enterprise was mentioned before Assistant Registrar Sharon Lim
at the Supreme Court of Singapore on June 2, 2006.

The Petition was filed by Teng Soon Poh through solicitor Dave
Shaun Patel Partnership.


L&M PRESTRESSING: Enters Wind-up Process
----------------------------------------
L&M Prestressing Pte Limited, on May 24, 2006, received a wind-
up order from the High Court of the Republic of Singapore.

All creditors of the Company are requested to file their proofs
of debt with The Official Receiver, who will be administering
the Company's winding up.

As reported by the Troubled Company Reporter - Asia Pacific,
Benaim (Singapore) Pte Limited on February 9, 2006, filed a
winding up petition against L&M Prestressing before the
Singapore High Court.

Contact: The Official Receiver
         45 Maxwell Road #05-11/#06-11
         The URA Centre (East Wing)
         Singapore 069118


MINDMAKER PTE: Court Issues Wind-up Order
-----------------------------------------
The High Court of the Republic of Singapore on May 26, 2006,
issued a wind-up order against Mindmaker Pte Limited.

The Petition was lodged before the High Court by Jozsef Kiraly,
through Nanyang Law LLC, on April 20, 2006.

Contact: The Official Receiver
         45 Maxwell Road #05-11/#06-11
         The URA Centre (East Wing)
         Singapore 069118




                            *********


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