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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

              Monday, July 24, 2006, Vol. 9, No. 145

                            Headlines

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

ADSTEAM MARINE: Expects 2005 Results in Lower Range of Forecast
ALUMINUM POWDER: Decides to Close Operations
AMTEL HOLDINGS: Members Opt for Voluntary Liquidation
ATLAS ACCESSORIES: Winds Up Operations
BARRY MORCOM: Members Pass Resolution to Liquidate Business

BAY INVESTMENTS: Appoints Official Receivers
BERT HOARE: Enters Voluntary Liquidation
CANDELORI PTY: Court Names Receiver and Manager
CEBA ENTERPRISES: Enters Voluntary Liquidation
COLIN HARPER: To Declare Final Dividend on August 2

COMALCO AUSTRALIA: Shuts Down Business Operations
CROESUS MINING: Creditors Vote for Deed of Company Arrangement
CTC SYSTEMS: Michael Edward Slaven Named as Liquidator
DERRI LIMMA: Members Resolve to Wind Up Operations
ELANDSFONTEIN PTY: To Declare First and Final Dividend

EMANTI PTY: Liquidator to Present Wind-Up Report on July 28
FORTESCUE METALS: Gets Environmental Approval for Cloud Break
FUPS PTY: Set to Declare Final Dividend on August 28
GRAFTON CLUB: Members to Receive Wind-Up Report
HOLROYD INVESTMENTS: Appoints Joint and Several Liquidators

HUGHSON PTY: Faces Wind-Up Proceedings
JENJAM PTY: Members Agree on Voluntary Wind-Up
MERIVENT PTY: Shareholders to Receive Wind-Up Report on August 1
METAL STORM: Enters Facilitation Deal with Harmony Investment
MONARO MINERALS: Court Appoints Liquidator

MOORES CORPORATION: To Declare Dividend on August 1
NIXDEN PTY: Inability to Pay Debt Prompts Wind-Up
OLD AMS: Undergoes Member's Voluntary Wind-Up
OMEGA MULTIMEDIA: Westpac Bank Names Receiver
ONE.TEL LIMITED: ASIC Case Hearing Finds J. Rich Evasive

PALARANG PASTORAL: Members Decide to Wind Up Firm
PALMA ARCHITECTS: Enters Wind-Up Proceedings
POWER PUMPING: Members and Creditors to Receive Wind-Up Report
PRESTON DEVELOPMENTS: Liquidates Business Operations
ROLFE-HALL INVESTMENTS: Winds Up Business Operations

S8 LIMITED: Under OFT Investigation for Excessive Commissions
SALAMANCA SOFTWARE: Members to Hear Liquidator's Report July 31
WERONG PTY: Appoints Anthony M. Long as Liquidator
WESTPOINT GROUP: R. Beck's Trust Prepares ASX Listing
WESTPORK OUTDOOR: Members to Receive Wind-Up Report

YENES PTY: Members Resolve to Wind Up Firm
* Merrill Lynch Raises AU Equities Investment Rtg to Overweight


C H I N A   &   H O N G  K O N G

BALLY TOTAL: Federal Court Shelves Securities Class Action
CHINA NETCOM: Seeks Fresh Funds to Build 3G Network
CSA ABSOLUTE: Liquidators Seek $206-Million Compensation
KID CASTLE: Current Deficit Up 85% to US$1.07 Million
OCEAN GRAND: S&P Pulls Long-Term Corporate Credit Rating to BB-

TITAN PETROCHEM: Moody's Shaves Corporate Rating to B1 from Ba3


I N D I A

FERTILISERS AND CHEMICALS: Plans INR1-Billion Project in Kochi
FORD MOTOR: Names New VP for India Marketing, Sales and Service
NAVISITE INCORPORATED: KPMG Raises Going Concern Doubt


I N D O N E S I A

GARUDA INDONESIA: To Sell Shares in Restructuring
PERUSAHAAN LISTRIK: Starts Plant Construction Bidding Process


J A P A N

JAPAN AIRLINES: Reprimanded For Safety Lapse
JAPAN AIRLINES: S&P Affirms B+ Corporate Credit & Debt Ratings
MITSUBISHI MOTORS: Recalls Over 1,200 Cars on Tank Defect
OCA INC: Idaho Unit Files Schedules of Assets and Liabilities
OCA INC: N.C. Regulator Wants N.C. Unit Lawsuit Continued

OCA INC: Has Until August 14 to Remove State Court Civil Actions
OCA INC: Hawaii Unit Files Schedules of Assets and Liabilities


K O R E A

HYNIX SEMICONDUCTOR: Consolidated Revenues Up 15% in 2nd Quarter


M A L A Y S I A

MALAYSIA AIRLINES: Offers Additional Flights to Thailand
MENTIGA CORPORATION: Incorporates Mining Subsidiary
METROPLEX BERHAD: Members Pass All AGM Resolutions
MULTI-USAGE HOLDINGS: Appeals SC's Rejection of Revamp Plan
PARACORP BERHAD: Unit Defaults on Banking Facility

PSC INDUSTRIES: Court Allows Bank Islam's Summary Judgment Bid
PROTON HOLDINGS: Seeks Shareholders' Mandate for RRPTs
SATERAS RESOURCES: Complies with Public Spread Requirement
SUGAR BUN: Unveils 22nd AGM Results
TAP RESOURCES: Universal Trustee Slaps Over MYR78,000 Claim

WEMBLEY INDUSTRIES: Restructuring Talks with Dewan Still Ongoing


P H I L I P P I N E S

BANGKO SENTRAL: Loses PHP2.1 Bil in 1st Quarter from Forex Deals
CHINA BANK: Registers 86.38% Increase in 1st Quarter Net Profit
NATIONAL POWER: To Raise Power Rates for Luzon Grid
PHILIPPINE NATIONAL BANK: Starts PHP3-Billion Debt Notes Offer
PHILIPPINE NATIONAL BANK: Moody's Rates Subordinated Notes 'Ba3'

RIZAL COMMERCIAL BANKING: Posts PHP252 Million in 1Q Net Profit
UNIONBANK: First Quarter Net Profit Is Flat Year-on-Year


S I N G A P O R E

B.K.B. ENGINEERING: Creditors' Meeting Set on July 28
GOODMAN MARINE: Pays Dividend to Creditors
HL SENSECURITY: Winds Up Business Operations
NHJ (SINGAPORE): Creditors' Proofs of Claim Due on August 4


T H A I L A N D

CIRCUIT ELECTRONICS: Defends Five Execs Against SEC Charges

     - - - - - - - -

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

ADSTEAM MARINE: Expects 2005 Results in Lower Range of Forecast
---------------------------------------------------------------
Adsteam Marine Ltd. is sticking to its 2005/2006 profit
guidance, while backing a AU$693 million friendly takeover bid
by Denmark's AP Moller-Maersk subsidiary, SvitzerWijsmuller A/S,
The Age reports.

In its target statement, Adsteam says that while its results for
the year ended June 30, 2006, are currently being finalized, it
still expects to deliver a full-year net profit after tax at the
lower end of the range between AU$42 million and AU$46 million.

The Australian Associated Press relates that the forecast
factors in new international accounting standards, which Adsteam
had not adopted in 2004/2005, when it reported a AU$23.4-million
net profit.

Adsteam clarifies that the forecast did not include costs from
the AU$2.54 all-cash offer launched by SvitzerWijsmuller earlier
this month.

As reported in the Troubled Company Reporter - Asia Pacific on
July 12, 2006, SvitzerWijsmuller revealed a recommended cash
takeover offer for all of Adsteam's shares including those
issued on the exercise of share acquisition rights under
Adsteam's long-term incentive plan.

According to the report, SvitzerWijsmuller's chief executive
officer, Jesper T. Lok asserted that the offer provides
compelling value to Adsteam shareholders.

The TCR-AP report also noted that Adsteam Chairman Bruce Corlett
recommended that Adsteam shareholders accept the offer from
SvitzerWijsmuller once the regulatory conditions to the offer
have been satisfied or waived and in the absence of a higher
offer.

The Age relates that although Adsteam stock had risen
significantly since the takeover bid, there is a risk that the
shares could fall if the offer failed.

Adsteam noted that while it has made significant progress in its
restructuring program and expects to start seeing benefits from
operating a more efficient business, there is no guarantee that
its share price will increase to the price of
SvitzerWijsmuller's Offer in the future.

According to Adsteam, there are a number of risk factors, both
specific to itself and relating to the general business
environment, which may impact its operating performance,
cashflow, and financial position, including:

   * further incremental labor reform at a number of United
     Kingdom ports;

   * pensions law in the United Kingdom; and

   * the "anti-avoidance" powers of the United Kingdom Pensions
     Regulator.

Moreover, there is further labor restructuring required in the
United Kingdom, the Company notes.

A full-text copy of the Target's Statement is available for free
at:


http://www.adsteam.com.au/announcements/pdf/Target's%20Statement%2021jul06.pdf

                          *     *     *

Adsteam shareholders with questions on the takeover proposal
should contact:

   * the SvitzerWijsmuller Offer Information Line between 9:00
     a.m., and 5:00 p.m. Australian Eastern Standard Time from
     Monday to Friday, on:

     -- 1300 650 907 from within Australia; or

     -- +613 9415 4265 from outside Australia; or

   * the Adsteam Offer Information Line on 1800 24 23 00 from
     within Australia, between 8:00 a.m. and 6:00 p.m.
     Australian Eastern Standard Time from Monday to Friday.

SvitzerWijsmuller -- http://www.svitzerwijsmuller.com/-- is a
major global towage and salvage company headquartered in
Copenhagen, Denmark with activities in 35 countries within
harbour towage, terminal towage, salvage, emergency response and
rescue, ocean towage and crew boat operations. SvitzerWijsmuller
is a subsidiary of A.P. Moller - Maersk A/S.  Last year
SvitzerWijsmuller had a turnover of US$355 million and it
employs approximately 2,500 people.

                          About Adsteam

Headquartered in New South Wales, Australia, Australia Adsteam
Marine Ltd -- http://www.adsteam.com.au/-- currently has a
fleet of more than 200 vessels and also offers other maritime
services such as a shipping agency, fuel distribution and
salvage.  The Company had undertaken steps in a plan to divest
non-core businesses since May 2003 as part of its business
transformation program and has raised money to support its
rescue plan designed to trim down debts and repay borrowings.
Adsteam's debt was estimated to be AU$360 million.

As of June 30, 2005, the Company reported an "improved balance
sheet" as it was able to reduce its debt to AU$302 million,
achieved through the sale of non-core assets, improved earnings,
improved debtor management and a tight dividend policy.


ALUMINUM POWDER: Decides to Close Operations
--------------------------------------------
After a general meeting on July 3, 2006, the members of Aluminum
Powder Pty Limited decided to voluntarily wind up the Company's
operations.

J. P. Cronin and W. J. Harris were appointed as joint and
several liquidators to oversee the Company's wind-up operations.

The Liquidators can be reached at:

         J. P. Cronin
         W. J. Harris
         Liquidator
         c/o McGrathNicol+Partners
         Level 32, Central Plaza One
         345 Queen Street, Brisbane
         Queensland 4000, Australia
         Telephone: (07) 3333 9800
         Web site: http://www.mcgrathnicol.com/


AMTEL HOLDINGS: Members Opt for Voluntary Liquidation
-----------------------------------------------------
At a general meeting on July 6, 2006, the members and creditors
of Amtel Holdings Pty Limited resolved to close the Company's
business operations and distribute the proceeds of its assets
disposal.

Subsequently, Robert P. Whitehouse was appointed as liquidator.

The Liquidator can be reached at:

         Robert P. Whitehouse
         Liquidator
         Wise Lord & Ferguson Chartered Accountants
         1st Floor, 160 Collins Street
         Hobart, Tasmania 7000
         Australia
         Telephone: (03) 6223 6155


ATLAS ACCESSORIES: Winds Up Operations
--------------------------------------
The members of Atlas Accessories Pty Limited convened on
June 29, 2006, and agreed that it is in the Company's best
interests to wind up its operations.

Tina G. Penna was subsequently named liquidator.

The Liquidator can be reached at:

         Tina G. Penna
         Liquidator
         c/o Gill Penfold Kelly Pty Limited
         4 Tasman Terrace, Port Lincoln
         South Australia 5006
         Telephone: (08) 8682 1899


BARRY MORCOM: Members Pass Resolution to Liquidate Business
-----------------------------------------------------------
The members of Barry Morcom Racing Pty Limited convened on
June 7, 2006, and decided to liquidate the Company's business.

The liquidator can be reached at:

         Peter Ngan
         Ngan & Co
         Chartered Accountants
         Level 5, 49 Market Street
         Sydney, New South Wales 2000
         Australia


BAY INVESTMENTS: Appoints Official Receivers
--------------------------------------------
Ian Richard Hall and Stephen Graham Longley of
PricewaterhouseCoopers were appointed as joint and several
receivers and managers of Bay Investments Pty Limited on July 4,
2006.

The Liquidator can be reached at:

         Ian R. Hall
         Stephen G. Longley
         Receivers
         PricewaterhouseCoopers
         Level 17, Waterfront Place
         1 Eagle Street, Brisbane
         Australia


BERT HOARE: Enters Voluntary Liquidation
----------------------------------------
At a general meeting of Bert Hoare & Associates Pty Limited on
June 28, 2006, members resolved to voluntarily wind up the
Company's business operations and appoint Ken Whittingham as
liquidator.

The Liquidator can be reached at:

         Ken Whittingham
         BDO Chartered Accountants & Advisers
         2 Market Street
         Sydney, New South Wales 2000
         Australia


CANDELORI PTY: Court Names Receiver and Manager
-----------------------------------------------
The Supreme Court of New South Wales appointed Peter George
Burton as receiver and manager for Candelori Pty Limited on
June 16, 2006.

The Receiver and Manager can be reached at:

         Peter George Burton
         Burton Glenn Allen
         Level 2
         57 Grosvenor Street
         Neutral Bay, New South Wales 2089
         Australia



CEBA ENTERPRISES: Enters Voluntary Liquidation
----------------------------------------------
The members of CEBA Enterprises Pty Limited held a meeting on
June 29, 2006, and decided to appoint Jason Bettles and Susan
Carter as liquidators to supervise the Company's wind-up
operations.

The Liquidators can be reached at:

         Jason Bettles
         Susan Carter
         Liquidators
         Worrells Solvency & Forensic Accountants
         Level 6, 50 Cavill Avenue
         Surfers Paradise, Queensland 4217
         Australia
         Web site: http://www.worrells.net.au/


COLIN HARPER: To Declare Final Dividend on August 2
---------------------------------------------------
The members of Colin Harper Production Pty Limited held a
meeting on July 4, 2006, and agreed to shut down the Company's
business operations.

In this regard, Morgan Lane and Michael Peldan were appointed as
liquidators.

Moreover, the Company will declare its final dividend on Aug. 2,
2006.  Creditors are required to submit their proofs of claim by
July 26, 2006, for them to share in the dividend distribution.

The Liquidators can be reached at:

         Morgan Lane
         Michael Peldan
         Liquidators
         Worrells Solvency & Forensic Accountants
         8th Floor, 102 Adelaide Street
         Brisbane, Queensland 4000
         Australia
         Telephone: (07) 3225 4300


COMALCO AUSTRALIA: Shuts Down Business Operations
-------------------------------------------------
At a general meeting on July 3, 2006, the members of Comalco
Australia New Zealand Pty Limited decided to wind up the
Company's operations voluntarily.

Subsequently, J. P. Cronin and W. J. Harris were appointed as
joint and several liquidators.

The Liquidators can be reached at:

         J. P. Cronin
         W. J. Harris
         Liquidators
         c/o McGrathNicol+Partners
         Level 32, Central Plaza One
         345 Queen Street, Brisbane
         Queensland 4000, Australia
         Telephone: (07) 3333 9800
         Web site: http://www.mcgrahnicol.com/


CROESUS MINING: Creditors Vote for Deed of Company Arrangement
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 4, 2006, Croesus Mining N.L. went into administration after
its failure to restructure its finances and meet its hedging
debts.  The Company appointed Bryan Hughes and Vincent Smith --
of Pitcher Partners Accountants, Auditors, & Advisors -- as
joint and several administrators.

In a statement filed with the Australian Stock Exchange Ltd.,
Mr. Smith relates that during the first creditors meeting held
on June 30, 2006, the creditors have confirmed the appointment
of administrators of each of Croesus' wholly owned subsidiaries:

     * Ambassador Resources Ltd.,
     * Croesus Resources N.L.,
     * Mining Resources (WA) Pty Ltd.,
     * Croesus Mining Services Pty Ltd, and
     * Central Norseman Gold Corporation Ltd.

Since that date, the Norseman operations of the Group have
continued to trade with a view of selling the operations as a
going concern and restructuring of the Group, Mr. Smith says.

Mr. Smith recounts that prior to the appointment of the
Administrators, significant progress had been achieved in
turning around the Norseman operations where Central Norseman is
now generating cash surpluses.  A comprehensive Operations
Recovery Plan was prepared and implemented and the Group is now
operating substantially in accordance with that Plan, Mr. Smith
says.

According to Mr. Smith, the Administrators are confident that
Croesus and Central Norseman will continue to trade
substantially pursuant to the Plan and continue to generate cash
surpluses from operations during the Administration period.

                     Creditors Opt for DOCA

The TCR-AP report noted that Croesus was unable to secure a
satisfactory agreement with Tokyo-based Mitsui, its second
hedging counter-party, which hindered the necessary capital to
put the Company back on a sound financial footing.  Thus, the
moratorium provided by the Administration process will allow all
options for either the sale of the operations or a restructure
and recapitalization of the Group, to be fully explored.

On July 20, 2006, the second creditors meeting was held, and the
creditors unanimously opted to accept a Deed of Company
Arrangement, the Sydney Morning Herald reports.

In Mr. Smith's statement to the ASX, he relates that the
Administrators have recommended that Croesus and Central
Norseman enter into DOCAs.  A DOCA allows the Administrators to
pursue the possibility of restructuring Croesus Group and
realizing further value for the benefit of its creditors and
shareholders, Mr. Smith explains.  In this case, there is the
potential for creditors and shareholders, to receive a better
return than may be the case in a liquidation, Mr. Smith says.

In the ASX Statement, Mr. Smith notes that the remaining
subsidiaries, that is, other than Central Norseman, are
effectively dormant and the Administrators have recommended that
they be placed into liquidation and be wound up.

Mr. Smith further notes that the Administrators intend to seek
expressions of interest from parties for the acquisition of all
or part of the Group's assets or for a recapitalization and
restructure of Croesus and Central Norseman.

"The companies are now in a holding pattern for the next
certainly four months and we will basically push forward with
the expression of interest process which should see sale or
recapitalization proposals put to us," the Herald cites Mr.
Smith telling the AAP.

Mr. Smith confirms that advertising for expressions of interest
has commenced, noting that the Administrators have appointed
Corporate Advisors (Prime Corporate Finance) to assist with the
process.

The Administrators expect to report to the Group's creditors on
the outcome of its sale or restructuring no later than
December 20, 2006.  However, Mr. Smith discloses that at this
stage, they are unable to predict how any sale or restructure
will affect shareholders.  Thus, he asks shareholders not to
contact Croesus or the Administrators at this time.

According to the Herald, Mr. Smith says proposals would be
presented to creditors either in late November or early December
this year.

In the meantime it's business as usual out at the mine site, the
AAP says, citing Mr. Smith.

The AAP notes that on March 16, 2006, Croesus reported a net
loss of AU$27.38 million for the first half of 2005/06.

According to WA Business News, shareholders were told in
November 2005 to expect a return to profitability in the second
half.

                      About Croesus Mining

Headquartered in Kalgoorlie, Western Australia, Croesus Mining
N.L. -- http://www.croesus.com.au/-- explores and produces gold
through its Davyhurst and Central Norseman exploration projects.

The Troubled Company Reporter - Asia Pacific reported on July 4,
2006, that Croesus Mining has gone into administration after
failing to restructure its finances and meet its hedging debts.
Bryan Hughes and Vincent Smith, of Pitcher Partners Accountants,
Auditors & Advisors, were appointed as joint and several
administrators pursuant to Section 436A of the Corporations Act.


CTC SYSTEMS: Michael Edward Slaven Named as Liquidator
------------------------------------------------------
The members of CTC Systems Pty Limited held a general meeting on
June 27, 2006, and decided to wind up the Company's business
operations.

Subsequently, Michael Edward Slaven was named as official
liquidator.

The Liquidator can be reached at:

         Michael Edward Slaven
         Rangott Slaven Hundy
         Level 3, Engineering House
         11 National Circuit
         Barton, Australian Capital Territory 2600
         Australia


DERRI LIMMA: Members Resolve to Wind Up Operations
--------------------------------------------------
Members of Derri Limma Pty Limited convened at a general meeting
on June 9, 2006, and decided that the Company be wound up
voluntarily.

Gregory Stuart Adrews of GS Andrews & Associates was
consequently appointed as official liquidator.

The Liquidator can be reached at:

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


ELANDSFONTEIN PTY: To Declare First and Final Dividend
------------------------------------------------------
Elandsfontein Pty Limited notifies parties-in-interest of its
intention to declare a first and final dividend on July 31,
2006.

Creditors who were unable to submit their proofs of claim to
Liquidator Sydney Albert Garlick will be excluded from sharing
in the dividend distribution.

As reported by the Troubled Company Reporter - Asia Pacific, the
Company wound up its business operations on January 31, 2005.

The Liquidator can be reached at:

         Sydney Albert Garlick
         9 Clive Street
         Katanning
         Western Australia 6317
         Australia


EMANTI PTY: Liquidator to Present Wind-Up Report on July 28
-----------------------------------------------------------
Members of Emanti Pty Limited will hold a final meeting on July
28, 2006, at 10:00 a.m. for them to receiver Liquidator B.P.
Woodward's final account showing how the Company was wound up
and its property disposed of.

The Troubled Company Reporter - Asia Pacific recounts that
members decided to wind up the Company's operations on
January 19, 2006.

The Liquidator can be reached at:

         B. P. Woodward
         B P Woodward & Associates
         Suite 501, 83 York Street
         Sydney, New South Wales 2000
         Australia


FORTESCUE METALS: Gets Environmental Approval for Cloud Break
-------------------------------------------------------------
In a statement filed with the Australian Stock Exchange Ltd.,
Fortescue Metals Group Ltd. advises that the Federal Government
has given environmental approval for the Company's Cloud Break
tenement.  The environmental approval completes the respective
State and Federal Government's public environmental review "PER"
processes for Fortescue's Pilbara Iron Ore and Infrastructure
Project, Fortescue explains.

The Company says that the Cloud Break approval was received
under the Environmental Protection and Biodiversity Conservation
Act 1999 subject to a number of conditions that can be reviewed
through the Web site: http://www.deh.gov.au/

According to Fortescue, these conditions are consistent with the
implementation of plans it has developed under the State
Government Approval process but additionally recognize the focus
of the Federal Government on fauna issues covering the Night
Parrot and the Bilby.  The identification and protection of
native animals is an important component of the project's
overall development plans, the Company says.

Fortescue notes that in association with various government
departments and independent consultants, it has developed a
series of positive interventionist programs to deal with the
range of environmental issues identified under the PER process.

                      About Fortescue

Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.

In 2005, Fortescue's chief executive officer, Andrew Forrest,
admitted to a AU$500-million blowout on the cost of port and
rail infrastructure in the Pilbara Project because of price
hikes for steel, fuel, construction materials and contract
labor.  The Company also disclosed that the hampered progress of
the Pilbara Project brings in the possibility that the Company
may not meet its ore delivery schedule and pushes up costs at
resource developments across Western Australia.  In May 2005,
the Australian Stock Exchange pressured Fortescue to explain
matters about the project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products.  The ASX then referred the matter to the
Australian Securities and Investments Commission, which
commenced a legal action against the Company.

The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on Aug. 23 and November 5, 2004.  In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters.  The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.


FUPS PTY: Set to Declare Final Dividend on August 28
----------------------------------------------------
FUPS Pty Limited will declare its final dividend on
August 28, 2006, to the exclusion of creditors who were not able
to prove their claims by July 18, 2006.

As reported by Troubled Company Reporter - Asia Pacific, the
Company paid its second dividend on January 31, 2006.  The first
dividend was declared on December 19, 2005.

The liquidators can be reached at:

         Paul Desmond Sweeney
         Terry Grant Van Der Velde
         c/o SV Partners Pty Ltd
         Insolvency Accountants and Risk Managers
         Web site: http://www.svpartners.com.au/


GRAFTON CLUB: Members to Receive Wind-Up Report
-----------------------------------------------
Members of Grafton Club Limited will convene at a joint meeting
on August 8, 2006, at 5:00 p.m., to receive accounts of the
Company's wind-up from Liquidator David Leigh.

The Troubled Company Reporter - Asia Pacific reported that on
October 27, 2005, members resolved to wind up the Company's
business operations.

The Liquidator can be reached at:

         David Leigh
         SimsPartners
         Suite 6A, 10-12 Short Street
         Port Macquarie
         New South Wales 2444
         Australia
         Telephone:(02) 6284 2653


HOLROYD INVESTMENTS: Appoints Joint and Several Liquidators
-----------------------------------------------------------
The members of Holroyd Investments Pty Ltd convened on June 26,
2006, and decided to wind up the Company's operations.

Laurence Andrew Fitzgerald and Stephen Robert Dixon were
appointed as joint and several liquidators.

The Liquidators can be reached at:

         Laurence Andrew Fitzgerald
         Stephen Robert Dixon
         Chartered Accountants
         Horwath BRI (Vic) Pty. Ltd
         Level 30, The Rialto
         525 Collins Street
         Melbourne, Victoria 3000
         Australia


HUGHSON PTY: Faces Wind-Up Proceedings
--------------------------------------
The members of Hughson Pty Limited held a meeting on
June 30, 2006, and decided to voluntarily wind up the Company's
operations.

In this regard, Ian Thomas Stephenson was appointed to oversee
the wind-up proceedings.

The Liquidator can be reached at:

         Ian Thomas Stephenson
         Ian Stephenson & Partners
         Chartered Accountants
         200 Pacific Highway
         Crows Nest, New South Wales 2065
         Australia
         Telephone:(02) 9922 2833


JENJAM PTY: Members Agree on Voluntary Wind-Up
----------------------------------------------
The members of Jenjam Pty Limited convened on June 29, 2006, and
agreed that the Company should wind up its operations
voluntarily.

The liquidator can be reached at:

         Jamie Owen Neill
         3 Heron Cove Marina Queens Parade West
         Newport, New South Wales
         Australia


MERIVENT PTY: Shareholders to Receive Wind-Up Report on August 1
----------------------------------------------------------------
The shareholders of Merivent Pty Limited will hold their final
meeting on August 1, 2006, at 2:00 p.m., to receive the
Company's wind-up report from Liquidator Dennis G. Laundy.

As reported by The Troubled Company Reporter - Asia Pacific,
members on June 10, 2005, passed a special resolution to wind up
the Company's operations.

The Liquidator can be reached at:

         Dennis G. Laundy
         Chartered Accountant
         48 Greenhill Road
         Wayville, South Australia 5034
         Australia


METAL STORM: Enters Facilitation Deal with Harmony Investment
-------------------------------------------------------------
Metal Storm Limited discloses that it has entered into a
facilitation agreement with Harmony Investment Fund Limited as a
preliminary step to the execution of underwriting agreements and
the lodgement of the prospectus for its previously announced
capital raising plan, which is expected to occur shortly.

As reported in the Troubled Company Reporter - Asia Pacific on
July 7, 2006, the second stage of Metal Storm Limited's capital
raising plan is a Renounceable Rights Issue of AU$27.5 million
in unsecured Convertible Notes with attaching Options.  The
rights issue is to be fully underwritten by Patersons Securities
Limited and fully sub-underwritten by Harmony.

Metal Storm explains that the facilitation agreement, signed on
June 16, 2006, documents some of Harmony's requirements for
providing the working capital facility to the Company and for
agreeing to sub-underwrite the proposed Renounceable Rights
Issue by the Company.

The key terms of the agreement include Harmony's:

   (a) right to nominate one director for appointment to Metal
       Storm's board of directors;

   (b) required consent to the appointment of a CEO of Metal
       Storm; and

   (c) obligation on Metal Storm to issue 10,000,000 Options to
       Harmony in consideration for Harmony providing the
       working capital facility and 65,000,000 Options to
       Harmony on and subject to the issue of convertible notes
       under the Rights Issue.

Metal Storm notes that a further announcement will be made on
lodgement of the Prospectus with the Australian Stock Exchange
Ltd.

                          *     *     *

Metal Storm Limited -- http://www.metalstorm.com/-- is
headquartered in Brisbane, Australia, and incorporated in
Australia, with an office in Arlington, Virginia.  Metal Storm
works with government agencies and departments, as well as
industries, to develop a variety of systems utilizing the Metal
Storm non-mechanical, electronically fired stacked ammunition
system.

Metal Storm reflected a loss of AU$10,914,600 in its Annual
Financial Report for the year ended December 31, 2005, which was
attributable to members of its parent company.  The Directors
noted that they are actively seeking funding to continue the
Company's operations.

After auditing the Company's 2005 Annual Report, Winna Irschitz,
a partner at Ernst & Young, raised significant uncertainty
regarding the Company's and its consolidated entity's ability to
continue as going concerns.

As stated in the 2005 Annual Report, Metal Storm's continuing
viability, and ability to continue as a going concern and to
meet debts and commitments as and when they fall due is
dependent on its ability to secure additional equity funding in
the near future and to continue the development and progress the
commercialization of its electronically initiated "stacked
projectile" weapons systems.


MONARO MINERALS: Court Appoints Liquidator
------------------------------------------
On June 28, 2006, the Federal Court of Australia issued an order
appointing Christopher J. Palmer as liquidator for Monaro
Minerals NI.

The Liquidator can be reached at:

         Christopher J. Palmer
         O'Brien Palmer
         Level 4, 23 Hunter Street
         Sydney, New South Wales 2000
         Australia


MOORES CORPORATION: To Declare Dividend on August 1
---------------------------------------------------
Moores Corporation Australia Pty Limited will declare its first
and final dividend on August 1, 2006.

Creditors who were not able to submit their proofs of claim by
July 18, 2006, will be excluded from sharing in the dividend
distribution.

The Troubled Company Reporter - Asia Pacific recounts that on
July 25, 2006, the Company commenced a wind-up of its business
operations due to its failure to execute an instrument setting
out the terms of a Deed of Company Arrangement.

The liquidator can be reached at:

         John Melluish
         Ferrier Hodgson
         GPO Box 4114
         Sydney, New South Wales 2001
         Australia


NIXDEN PTY: Inability to Pay Debt Prompts Wind-Up
-------------------------------------------------
The members and creditors of Nixden Pty Limited convened on
June 23, 2006, and decided to wind up the Company's operations
due to its inability to pay its debts when they fall due.

Richard Albarran was consequently appointed as liquidator.

The Liquidator can be reached at:

         Richard Albarran
         c/o Hall Chadwick
         Level 29, 31 Market Street
         Sydney, New South Wales 2000
         Australia


OLD AMS: Undergoes Member's Voluntary Wind-Up
---------------------------------------------
The members and creditors of OLD AMS Pty Limited held a general
meeting on June 29, 2006, and passed a special resolution to
wind up the Company's business operations.

Jennifer Mary Neill was subsequently appointed as liquidator.

The Liquidator can be reached at:

         Jennifer Mary Neill
         3 Heron Cove Marina Queens Parade West,
         Newport, New South Wales
         Australia


OMEGA MULTIMEDIA: Westpac Bank Names Receiver
---------------------------------------------
Westpac Banking Corporation on July 4, 2006, appointed John
Georgakis of Ernst & Young as receiver for the properties of
Omega Multimedia Pty Limited pursuant to the powers contained in
a Fixed and Floating Charge dated February 24, 2004, issued by
it in favor of the Bank.

The Fixed and Floating Charge was filed and registered at the
Australian Securities and Investments Commission on March 5,
2004.

The Receiver can be reached at:

         John Georgakis
         Ernst & Young
         Level 23, 8 Exhibition Street
         Melbourne, Victoria
         Australia


ONE.TEL LIMITED: ASIC Case Hearing Finds J. Rich Evasive
--------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
February 8, 2006, the Australian Securities and Investments
Commission has initiated actions against One.Tel Limited's
founder, Jodee Rich, and finance director, Mark Silbermann, for
allegedly allowing the Company to trade while it was insolvent
and for providing misleading financial information to the
Company's Board of Directors.

The ASIC wants to ban Mr. Rich and Mr. Silbermann from holding
directorships and is seeking compensation of AU$92 million, the
value allegedly lost by the telco by continuing to trade after
February 2001, when ASIC alleges it became insolvent.

A follow-up report from The Australian relates that during
a hearing on July 19, 2006, ASIC's counsel, Robert Macfarlan,
accused Mr. Rich of not trying to answer questions thrown at him
during the probe.  According to The Australian, Mr. Rich kicked
off his testimony with a reprimand from the judge for rambling,
and ended it being admonished by the ASIC's barrister for
evasiveness.

The paper further relates that Mr. Macfarlan questioned Mr. Rich
about his failure to tell the board about "tens of millions of
dollars" of under-provisioning for doubtful debts that were
unlikely to ever be collected from One.Tel customers.

Yet. Mr. Rich denied the allegation.

The Australian says that Mr. Macfarlan also suggested that Mr.
Rich has failed to tell the directors that over-90-day debt had
increased by AU$27 million, but provisioning had only increased
by AU$7 million.

The Australian recounts that the NSW Supreme Court was told that
the Company had signed up hundreds of "high-risk" customers who
failed to pay their bills.

According to The Age, Justice Robert Austin gave Mr. Rich and
his lawyers a day's adjournment to discuss his re-examination
and whether the defense will call any other witnesses.

The Age relates that Mr. Rich's barrister, David Williams, SC,
told the Court that he needed time to examine more than 40
summaries of aspects of One.Tel's finances prepared by the ASIC
and presented to Mr. Rich while he was in the witness box.

Mr. Rich may be re-examined by his barrister when the case
returns to court, while Mr. Silbermann may take the stand next
week, The Australian notes.

The Age relates that the case, which opened in August 2004 with
predictions that hearings would last for four months, has sat
for 190 days, with interruptions for taking evidence in Britain
and for appeals on procedural issues, including to the High
Court.

                          *     *     *

One.Tel Limited is an Australian based telecommunications
company, belonging to One.Tel Group.  One.Tel Ltd. was
established in 1995 soon after the deregulation of the
Australian telecommunications industry, most of which are
currently under external administration by court appointed
liquidators.

One.tel is currently in liquidation due to financial problems.
Ferrier Hodgson was appointed as voluntary administrator on
May 29, 2001.  The administrator's report stated that the
company was insolvent as of March 2001.  Accordingly, the
administrator terminated approximately 3,000 employees in
June that same year.

Steve Sherman and Peter Walker of Ferrier Hodgson were then
named liquidators on July 24, 2001.

The Liquidators can be reached at:

         Steve Sherman
         Peter Walker
         Joint Liquidators
         Ferrier Hodgson
         Level 17
         2 Market Street
         Sydney, NSW
         Australia 2000


PALARANG PASTORAL: Members Decide to Wind Up Firm
-------------------------------------------------
The members of Palarang Pastoral Co Pty Ltd held a meeting on
June 27, 2006, and decided to voluntarily wind up the Company's
business operations.

Subsequently, Anthony M. Long was appointed as liquidator.

The Liquidator can be reached at:

         Anthony M. Long
         c/o Boyce
         Chartered Accountants
         19 Montague Street
         Goulburn, New South Wales 2580
         Australia


PALMA ARCHITECTS: Enters Wind-Up Proceedings
--------------------------------------------
Creditors of Palma Architects Pty Limited on May 15, 2006,
passed a special resolution to wind up the Company's operations.

Subsequently, Stephen R. Dixon was named liquidator to oversee
the wind-up process.

The Liquidator can be reached at:

         Stephen R. Dixon
         Joint & Several Liquidator
         Horwath BRI (Victoria) Pty Limited
         Chartered Accountants
         Level 30, 525 Collins Street
         Melbourne, Victoria 3000
         Australia


POWER PUMPING: Members and Creditors to Receive Wind-Up Report
--------------------------------------------------------------
A final meeting of the members and creditors of Power Pumping
Pty Ltd will be held on August 11, 2006, at 10:00 a.m., to hear
Liquidator Ray Richards' wind-up report.

The Liquidator can be reached at:

         Ray Richards
         SimsPartners
         Level 11, 145 Eagle Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3831 2700


PRESTON DEVELOPMENTS: Liquidates Business Operations
----------------------------------------------------
On June 8, 2006, the members of Preston Developments Pty Limited
held a general meeting and agreed to liquidate the Company's
business operations.

The Liquidator can be reached at:

         Gregory John Cochrane
         1st Floor, 20 Kings Park Road
         West Perth
         Western Australia
         Australia


ROLFE-HALL INVESTMENTS: Winds Up Business Operations
----------------------------------------------------
At a general meeting of the members of Rolfe-Hall Investments
Pty Limite on June 26, 2006, it was agreed that a wind-up of the
Company's operations is appropriate and necessary.

The liquidator can be reached at:

         Frank Lo Pilato
         RSM Bird Cameron Partners
         Level 1, 103-105 Northbourne Avenue
         Turner, Australian Capital Territory 2612
         Australia
         Telephone:(02) 6247 5988


S8 LIMITED: Under OFT Investigation for Excessive Commissions
-------------------------------------------------------------
The Office of Fair Trading has commenced a "major investigation"
into S8 Limited for allegedly collecting "millions of dollars"
in commissions from holiday unit owners, Greg Stolz of The
Courier-Mail reports.

Mr. Stolz relates that OFT investigators have seized about
10,000 documents as part of the investigation into the Gold
Coast-based tourism company's holiday letting practices.

The report cites Fair Trading Minister Margaret Keech as saying
that the allegations of "excessive commissions" were "very
serious" and confirmed that an investigation is under way.

According to The Courier-Mail, the probe coincides with claims
of commission "double-dipping," by disgruntled Gold Coast unit
owners, who hired a private investigator to expose allegedly
inflated commissions.  The unit owners include those in The
Phoenecian Complex at Broadbeach, which is managed by S8
subsidiary Driftcove Pty Ltd.

The up-market building's body corporate has alleged that S8 has
been reaping holiday letting commissions as high as 42% by
directing reservations through a separate booking agency it also
owns, The Courier-Mail says.

The paper cites The Phoenecian body corporate chairman Wayne
Stevens as relating that the losses to owners amounted to
"potentially millions of dollars".

Mr. Stolz notes that S8 managing director Chris Scott
and chairwoman Jenny Hutson were not available for comments.

                          *     *     *

S8 Limited -- http://www.s8.com.au/-- is based in Queensland,
Australia.  It was listed as a publicly owned company on the
Australian Stock Exchange in 2001 and has since added properties
under its management in various geographical locations.


SALAMANCA SOFTWARE: Members to Hear Liquidator's Report July 31
---------------------------------------------------------------
A final meeting of Salamanca Software Pty Limited will be held
on July 31, 2006 at 12:00 p.m.

During the meeting, Liquidator John W. Woods will present final
accounts of the Company's wind-up operations.

The Troubled Company Reporter - Asia Pacific recounts that on
August 30, 2005, the members of the Company resolved to wind up
the Company's business operations.

The Liquidator can be reached at:

         John W. Woods
         Wilson Woods & Partners
         Chartered Accountant
         30 Davey Street
         Hobart Tasmania 7000
         Australia
         Telephone:(03) 6223 4343


WERONG PTY: Appoints Anthony M. Long as Liquidator
--------------------------------------------------
At a general meeting on June 29, 2006, the members of Werong Pty
Limited resolved to close the Company's business operations and
distribute the proceeds of its assets disposal.

Creditors must submit their proofs of claim to Liquidator
Anthony M. Long, for them to share in the dividend distribution.

The Liquidator can be reached at:

         Anthony M. Long
         c/o Boyce
         Chartered Accountants
         19 Montague Street
         Goulburn, New South Wales 2580
         Australia


WESTPOINT GROUP: R. Beck's Trust Prepares ASX Listing
-----------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 12, 2006, the Federal Court has ordered Westpoint receivers
to seize the personal assets of two Westpoint directors -- John
Dixon and Richard Beck.

Yet, the Court ordered that dependent on undertakings being
entered into by Mr. Beck and his wife, trustees, rather than
receivers, should be appointed to his property trust.

As a result, Mr. Beck filed undertakings to the Federal Court
regarding the management of his property trust, including 47
properties, worth tens of millions of dollars.  Mr. Beck
asserted that the properties were not his but those of the
family trust.

However, The Age notes that despite ASIC's inquiries into a
property trust that Mr. Beck formerly chaired, as part of its
probe into Westpoint, the trust is not under investigation.

Prime Retirement and Aged Care Property Trust, which has
AU$500 million in assets and a further AU$250 million worth of
proposed projects, is preparing for an Australian Stock Exchange
listing early next year, The Age relates.

Mr. Beck resigned from Prime Trust in December 2005, and former
health minister Michael Wooldridge has since become chairman of
its responsible entity, Australian Property Custodian Holdings,
The Age says.

                     About Westpoint Group

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

In February 2006, a wind-up order was issued by the Federal
Court in Perth against Westpoint Corporation Pty Ltd.  The ASIC
had applied to wind up the company on grounds of insolvency.
The ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.  The
Westpoint Group's collapse is considered by many as the largest
of its type in recent years, with small investors being the
biggest group affected.  Investors are currently joining forces
to commence a class action against Westpoint and its advisors.


WESTPORK OUTDOOR: Members to Receive Wind-Up Report
---------------------------------------------------
Members of Westpork Outdoor Pty Limited will hold a meeting on
July 31, 2006, for them to receive Liquidator Derick Schroder's
wind-up report.

As reported by Troubled Company Reporter - Asia Pacific, the
Company wound up its business operations on April 3, 2006.

The Liquidator can be reached at:

         Derick Schroder
         16 Firwood Trail
         Woodvale, Western Australia 6026
         Australia


YENES PTY: Members Resolve to Wind Up Firm
------------------------------------------
At a general meeting on June 28, 2006, the members of Yenes Pty
Limited resolved to wind up the Company's business operations
and appoint Ken Whittingham as official liquidator.

The Liquidator can be reached at:

         Ken Whittingham
         BDO Chartered Accountants & Advisers
         Level 19, 2 Market Street
         Sydney, New South Wales 2000
         Australia


* Merrill Lynch Raises AU Equities Investment Rtg to Overweight
---------------------------------------------------------------
Merrill Lynch has raised its investment rating on Australian
equities to Overweight, Lyndal McFarland of Dow Jones Newswires
reports.

"Australia's economy looks firm, market valuations now look
attractive relative to the region and earnings volatility is low
relative to much of the rest of the region," Dow Jones cites
regional strategists Spencer White, Stephen Corry, and Willie
Chan, as saying in a report.

In Australia, the only market in the region with an Overweight
rating, Merrill Lynch likes BHP Billiton Ltd., Rio Tinto Ltd.
and gold stocks, Dow Jones relates.

According to Dow Jones, Merrill Lynch says -- on Australian
equities -- "[v]aluations have now moved to a discount to
regional multiples and are undoubtedly attractive on a risk-
reward basis."

Dow Jones notes that Merrill Lynch previously rated Australian
equities as Underweight.


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

BALLY TOTAL: Federal Court Shelves Securities Class Action
----------------------------------------------------------
Bally Total Fitness Holding Corp. disclosed that on July 12,
2006, the United States District Court for the Northern District
of Illinois dismissed the consolidated class action complaint
alleging securities fraud by the company and certain of its
current and former officers.  The Court previously consolidated
10 separate actions into this one complaint.  The Court
dismissed the complaint without prejudice, allowing the
plaintiffs until August 14, 2006, to file an amended complaint.

Between May and July 2004, 10 putative securities class actions,
now consolidated and designated, "In re Bally Total Fitness
Securities Litigation," were filed in the U.S. District Court
for the Northern District of Illinois.

Each of these substantially similar lawsuits alleged that the
defendants violated Sections 10(b) and/or 20(a) of the
Securities Exchange Act of 1934, as amended, as well as the
associated Rule 10b-5, in connection with the company's proposed
restatement.

On March 15, 2005, the court appointed a lead plaintiff and on
May 23, 2005 the court appointed lead plaintiff's counsel.  By
stipulation of the parties, the consolidated lawsuit was stayed
pending restatement of the company's financial statements in
November 2005.

On Dec. 30, 2005, plaintiffs filed an amended consolidated
complaint, asserting claims on behalf of a putative class of
persons who purchased Bally stock between Aug. 3, 1999, and
April 28, 2004.

The various defendants filed motions to dismiss the amended
consolidated complaint on Feb. 24, 2006, which motions are
currently pending, according to the company's June 27, 2006,
Form 10-Q filing with the U.S. Securities and Exchange
Commission for the period ended March 31, 2006.

The suit is titled "In re Bally Total Fitness Securities
Litigation, Case No. 1:04-cv-03530," filed in the U.S. District
Court for the Northern District of Illinois under Judge John F.
Grady.

Bally Total Fitness Holding Corporation --
http://www.Ballyfitness.com/-- is the largest and only
nationwide commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.  Bally offers a unique
platform for distribution of a wide range of products and
services targeted to active, fitness-conscious adult consumers.

                         *     *     *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.  The CreditWatch update
followed Bally's announcement that it will not meet the March
16, 2006, deadline for filing its annual report on SEC Form 10-K
for the year ending Dec. 31, 2005.

As reported in the TCR on Aug 11, 2005, Moody's Investors
Service affirmed the Caa1 corporate family rating and debt
ratings of Bally Total Fitness Holding Corporation.  The
affirmation reflected continued high risk of default and Moody's
estimate of recovery values of the various classes of debt in a
default scenario.


CHINA NETCOM: Seeks Fresh Funds to Build 3G Network
---------------------------------------------------
China Netcom would soon be issuing a CNY10-billion short-term
bill as capital injection to fund the establishment of a new 3G
Network, The China Daily reports.

The Company believes short-term bills -- which usually have
lower interest rates than a bank loan -- it will give the
Company adequate capital and will help reduce the costs of
raising money, The China Daily says.

Norson Telecom Consulting said that building a national 3G
network will total to CNY100 billion.  Thus, China Netcom has to
cut costs and raise more money to be successful, the information
technology-consulting firm added.

Earlier, The Troubled Company Reporter - Asia Pacific reported
that China Netcom sold its undersea cable unit, Asia Netcom, for
US$169 million.  In addition, its state-owned parent, China
Network Communications Group Corporation also sold its stake in
Asia Netcom for about US$240 million.

China Daily relates that the Chinese government is expected to
issue 3G licenses to three of the four major telecom firms --
China Mobile, China Unicom, China Telecom and China Netcom.

Meanwhile, Fitch ratings said in a recent report "competition
will further escalate if more mobile licenses are awarded, thus
leading to possible changes in the market share and the
financial profiles of the existing operators."

                       About China Netcom

China Netcom Group (Hong Kong) Ltd
-- http://www.chinanetcom.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 has been rolled over upon maturity.


CSA ABSOLUTE: Liquidators Seek $206-Million Compensation
--------------------------------------------------------
The appointed liquidators of CSA Absolute Return Fund had
initiated a $206.67-million class action suit against the Fund
for 1,300 investors, who lost money in the Fund's collapse, the
South China Morning Post reports.

Under the complaint, the PricewaterhouseCoopers partners
asserted claims of $198.37 million as compensation payment and
$8.3 million as payment for other costs.

Writs were also issued against:

     -- HSBC Institutional Trust Services (Asia), the fund's
        custodian;
     -- Bank of Bermuda, administrator; and
     -- Ernst & Young, auditor.

According to the writ, CSA, in October 2001 appointed Bermuda
Trust (Far East) -- which was acquired by HSBC in 2004 and
renamed HSBC Institutional Trust Services -- as the custodian
for subscription monies from investors to the funds.  At the
same time, it also appointed Bank of Bermuda to perform various
administrative tasks.

The writ alleges HSBC and the Bank of Bermuda failed in their
duty to safeguard investors' money, allowing fund manager
Charles Schmitt to transfer money to various "shadow funds".
The Liquidators also accused Ernst & Young failed to the
misappropriation of clients' assets.

In 2004, CSA Absolute Return Fund went into liquidation after
the Securities and Futures Commission launched an investigation
and police charged the Fund's founder, Charles Schmitt, with
theft for plundering $930,000 from the fund.

In 2005, Mr. Schmitt filed a petition in High Court that sought
to declare himself as bankrupt.  According to the fund's Web
site, Mr. Schmitt was a former senior business manager at the
New York Stock Exchange, where he helped manage the NYSE pension
fund.


KID CASTLE: Current Deficit Up 85% to US$1.07 Million
-----------------------------------------------------
The working capital deficit of Kid Castle Educational Corp.
increased by about 85% or US$493,000, from US$583,570 at Dec.
31, 2004 to US$1.07 million at Sept. 30, 2005.

At Sept. 30, 2005, the Company had US$8.58 million in current
assets and US$9.65 million in current liabilities, compared with
US$8.14 million in current assets and US$8.72 million in current
liabilities at Dec. 31, 2004.

Net cash used in operating activities during the nine months
ended Sept. 30, 2005 was US$30,000, compared with US$706,000 for
the same period in 2004.  The change was primarily attributable
to an increase in accounts receivable.

Net cash used in investing activities during the nine months
ended Sept. 30, 2005 was US$78,000, compared with US$221,000 for
the same period in 2004.  The change was primarily attributable
to changes in purchases of property and equipment.

Net cash consumed by financing activities during the nine months
ended Sept. 30, 2005 was (US$221,000), compared with US$245,000
for the same period in 2004.  The difference was primarily
attributable to the decrease of net proceeds from bank
borrowings and no repayment of loans to officers/ shareholders.
The repayment of loans from officers/shareholders was US$581,000
during the nine months ended Sept. 30, 2004.

The Company has been aggressively expanding its business in the
People's Republic of China and its operation is still in an
emerging stage and has not turned profitable.  It has suffered
recurring losses from operations that raise substantial doubt
about its ability to continue as a "going concern."

Kid Castle Educational Corp. publishes, distributes and sells
books, magazines, audio and videotapes and compact discs related
to English language instruction and educational services.  The
Company has its operations in Taiwan and China.


OCEAN GRAND: S&P Pulls Long-Term Corporate Credit Rating to BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services had lowered its long-term
corporate credit rating on Ocean Grand Holdings Ltd to B from
BB-.  At the same time, it lowered its issue rating on US$160
million senior unsecured notes due 2010 to B from BB-.  The
ratings remain on CreditWatch with negative implications, where
they were placed on July 12, 2006.

"The downgrade reflects our heightened concerns about Ocean
Grand's corporate governance and internal control systems," said
Standard & Poor's credit analyst Bei Fu.

This follows the discovery of accounting irregularities at its
operating subsidiaries and the resignation of an independent
director at Ocean Grand Chemicals Holdings Ltd.  The director,
Lo Wing Yan, was also a member of Ocean Grand's Audit and
Remuneration Committee.  Share trading in both OGH and OGC have
been suspended since July 17, 2006.

Standard & Poor's notes that access to Ocean Grand's management
has been limited since the company announced accounting
irregularities on July 12, 2006.  The rating action is primarily
based on publicly available information.

Wide-ranging investigations by Deloitte Touche Forensic Services
Ltd are being conducted and could result in revisions to
reported account receivables, account payables, sales, and
purchases; the magnitude of which cannot be ascertained at this
point.  If significant, the revisions could have a negative
impact on the company's financial position and the rating.

Standard & Poor's believes that Ocean Grand's access to
financing from suppliers and banks is under pressure as a result
of current events. Consequently, the company's ability to
continue operations over the short term is questionable.

Standard & Poor's will monitor developments closely. To resolve
the CreditWatch placement, Standard & Poor's would need to
verify the size and nature of the accounting irregularities,
review the company's liquidity position, and thoroughly assess
its internal control systems. Prolonged uncertainty about the
above issues could result in further negative rating action.
The rating will also be affected by any violations of covenants.

                          *     *     *

Ocean Grand Holding's -- http://www.ogholdings.com/-- principal
activities are the manufacture and sale of aluminum extrusion
products and chemicals for use in electroplating and refining of
gold material produced at facilities located in Nanhai of
Guangdong Province and the Hong Kong Special Administrative
Region of The People's Republic of China.

On July 12, 2006, Standard & Poor's Credit Rating Services
placed Ocean Grand's BB- long-term corporate credit rating and
US$160 million in senior unsecured notes due 2010 on CreditWatch
with negative implications due to the alleged accounting
irregularities the Group recently discovered.

The Troubled Company Reporter - Asia Pacific reported on July
14, 2006, that the Hong Kong Stock Exchange discovered a
potential accounting irregularity amounting to CNY6 million
involving the group's wholly owned subsidiary, OG Foshan, and
its financial controller.


TITAN PETROCHEM: Moody's Shaves Corporate Rating to B1 from Ba3
---------------------------------------------------------------
Moody's Investors Service on July 20, 2006, downgraded the
corporate family rating of Titan Petrochemicals Group Ltd to B1
from Ba3.  At the same time, Titan's senior unsecured bond
rating has been downgraded to B2 from B1.  The outlook for both
ratings is stable.  This concludes the ratings review initiated
in April 2006.

The ratings downgrade is based on Moody's concerns over Titan's
weakened financial position, including high leverage and a
modest coverage position, reflecting the company's aggressive
capex spending," says Elizabeth Allen, a Moody's Vice
President/Senior Analyst, adding "This weakening also occurs
against the backdrop of the company's high exposure to the
volatile spot tanker market and high fuel costs."

Moody's notes that Titan's key credit metrics, including
adjusted debt/EBITDAR and EBITDAR/adjusted interest coverage,
were last reported as weak at 7.3x and 2.4x respectively.  While
these metrics could improve in FY2006, the degree is unlikely to
be sufficient to sustain a rating at the Ba3 level, especially
in light of the company's growth strategy.

Moody's previously indicated that the Ba3 corporate family
rating was likely to be downgraded if adjusted debt/EBITDAR
exceeded 4.5x.  In accordance with Moody's Rating Methodology:
Global Shipping Industry published in December 2005, Titan's
credit profile - as mapped against the six key rating factors -
is consistent with a rating profile of B.

Titan's announced capex plan includes committed spending for
FY2006 of HKD312 million (against HKD3.2bn in FY2005) and the
recent purchase of two new bunker barges, and options for
another eight vessels, leading to a total cost of up to HKD675
million by end-2008.

Furthermore, the company is likely to incur additional debt at
the project level to fund the development of its three green-
field oil storage projects in China.  Such debt could in turn
burden consolidated gearing ratios as meaningful cash flow
contributions will only start to emerge in 2007-2008.  In
assessing Titan's financial profile, Moody's also considered its
share of project-level debt.

Moreover, the likelihood exists that capex spending could exceed
budget in view of Titan's growth record thus far, its need to
replace single-hull vessels via either leasing or purchases in
the medium term, and the expansion of its related trading and
bunkering businesses as it completes the storage facilities.  As
a result, Moody's believes that debt will continue to increase.

Titan's ratings could undergo a further downgrade if adjusted
debt/EBITDAR falls below 5-6x and EBITDAR interest coverage
below 2-2.5x.  These scenarios could be a result of:

    1) aggressive expansion plan; and/or

    2) deteriorations in its operating environment.

In addition, weakening in its liquidity profile -- with total
cash sources falling to a level insufficient to cover 12-month
forward maturing debt obligations and committed funding needs --
could also pressure ratings.

On the other hand, the ratings could experience upward pressure
if, in the medium term, Titan demonstrates its ability to:

    1) adhere to strong financial discipline;

    2) build up stable and meaningful recurring cash flows from
       its storage business; and/or

    3) transit from single- to double- hull vessels, while also
       showing an improved financial profile on a consistent
       basis.

Financial indicators that Moody's is likely to consider include
adjusted debt/EBITDAR below 4-4.5x and EBITDAR interest coverage
above 3.5-4x.

                          *     *     *

Titan Petrochemicals Group Ltd, which operates out of Hong Kong
and Singapore, primary engages in the trading, transportation,
and storage of oil and oil products.  As of December 2005, it
operated a fleet of 28 vessels, including 13 Very Large Crude
Carriers and 15 smaller vessels. Titan is listed on the Hong
Kong Stock Exchange.

Recently, Standard & Poor's Ratings Services has revised its
outlook on Titan Petrochemicals Group Ltd. to negative from
stable.  At the same time, it affirmed the "BB-" long-term
corporate credit rating on Titan.  The "B+" issue rating on the
company's senior unsecured notes was also affirmed.


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

FERTILISERS AND CHEMICALS: Plans INR1-Billion Project in Kochi
--------------------------------------------------------------
Fertilisers and Chemicals Travancore Limited is in final talks
regarding the establishment of an INR1-billion bio-technology-
cum-food processing park in Kochi, India eNews reveals.

The Company will soon submit a final proposal to Minister for
Food Processing Industries Subodh Kant Sahay, who has pledged a
INR500-million grant for the project, India eNews says.

FACT chairman and managing director G.C. Gopala Pillai told
India eNews that the Company will set aside a 100-acre plot of
land at its premises for the mega project.

"Of the 100 acres, we will set aside 30 acres for a bio-
technology park which would have the status of a special
economic zone," Mr. Pillai said.

According to India eNews, Kochi has become the center of
attraction for most investors due to the available modern
connectivity, the proposed Vallarpadom container terminal and an
international airport.

             About Fertilisers & Chemicals Travancore

Headquartered in Kochi, Kerala, India, Fertilisers & Chemicals
Travancore Limited is principally engaged in the manufacturing
and distribution of fertilizers and chemicals.  Its products
include ammonium sulphate, factomfos, urea and caprolactam.  The
Company operates solely in the domestic market.  The Company,
which had been making profits for over a decade, started
reporting losses from 1998-99 onwards due to the steep rise in
cost of raw materials like naphtha, benzene, sulphur and rock
phosphate.  There were also uneconomic realization from sales
and the company had to stop production because of a liquidity
crunch.  In 2004, the Company was referred to the Board for
Industrial and Financial Reconstruction as a potentially sick
unit.  The Company is currently undergoing a revamp program to
turn its business around.


FORD MOTOR: Names New VP for India Marketing, Sales and Service
---------------------------------------------------------------
Ford Motor Corporation has appointed Scott McCormack as vice
president for marketing, sales and services for its Indian
operations, Indiantelevision.com reports.  Mr. McCormack will
replace V Sivaramakrishnan, who resigned in April 2006.

According to Indiantelevision, Mr. McCormack joined Ford New
Zealand in 1993.  He most recently served as dealer development
director at Ford Thailand and was instrumental in the expansion
of the dealer network in Thailand, including upgrading
dealership facilities to Ford's global Brand@Retail standards,
and supporting dealership improvement through training and
development programs.

Prior to his assignment in Thailand, he was based in Ford
Indonesia as the marketing and sales director.  He played a key
role in establishing the dealer network and directed the launch
of the Ford Ranger pick up across AP&A, Indiantelevision says.
He was a key member of the team that re-launched Ford's
operations in Indonesia.  Preceding Indonesia, Mr. McCormack
served in financial analyst positions with the Ford/Mazda joint
venture assembly plant and the Ford Alloy Wheel Plant in New
Zealand.  He also played an important role in bringing together
Ford and Mazda dealers in Auckland under single ownership, with
Ford Motor Company as a significant shareholder.

Mr. McCormack will report to Ford India Private Limited
president and managing director Arvind Mathew.

                        About Ford Motor

Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A.,
is the world's third largest automobile manufacturer.  It has
operations all over the world including India.

The Troubled Company Reporter - Asia Pacific reported on July 3,
2006, that Moody's Investors Service lowered the Corporate
Family and senior unsecured ratings of Ford Motor Company to B2
from Ba3.

Standard & Poor's Ratings Services, on the other hand, lowered
its corporate credit rating on Ford Motor Co. and its related
units to 'B+' from 'BB-' and affirmed its 'B-2' short-term
rating.

On June 12, 2006, Fitch Ratings downgraded Ford Motor's issuer
default rating to B+ from BB, and its senior unsecured ratings
to BB- from BB.


NAVISITE INCORPORATED: KPMG Raises Going Concern Doubt
------------------------------------------------------
Auditor KPMG has raised substantial doubt about NaviSite Inc.'s
ability to continue as a going concern, citing the Company's
recurring losses from operations since inception, accumulated
deficit and other factors, the Liquidity Alerts Reporter said.

According to the report, the Company's working capital deficit
dipped by about 85% or US$66.26 million, from US$77.56 million
in July 31, 2005, to US$11.30 million in April 30, 2006.

The Company recorded US$22.43 million in current assets and
US$33.73 million in current liabilities as of April 30, 2006,
compared with US$20.77 million in current assets and
US$98.33 million in current liabilities in July 31, 2005.

As of April 30, 2006, the Company's principal sources of
liquidity included cash and cash equivalents, a revolving credit
facility of US$3 million provided by Silver Point Finance, LLC,
and a term loan agreement with Atlantic Investors LLC for a
maximum amount of US$5 million.

The primary use of cash during the nine months ended April 30,
2006 included US$7.7 million of cash used for operating
activities, US$4.3 million for purchases of property and
equipment and about US$58.6 million in repayments on notes
payable and capital lease obligations.

The Company's financing activities during the nine months ended
April 30, 2006 provided about US$71.0 million of cash consisting
primarily of US$70.0 million in proceeds from a term loan,
US$500,000 in proceeds received from exercise of stock options
and US$400,000 in proceeds from notes payable.

Net cash used for operating activities of US$7.7 million during
the nine months ended April 30, 2006, resulted primarily from
funding its US$10.9 million net loss and US$11.0 million of net
changes in operating assets and liabilities, which was partially
offset by non-cash charges of about US$14.2 million.

The Company had an accumulated deficit of US$466.8 million in
April 30, 2006, compared with US$455.9 million in July 31, 2005.

The Company's revolving credit facility with Silver Point allows
for maximum borrowing of US$3.0 million that expires on
April 11, 2011.  As of April 30, 2006, the Company had no
amounts outstanding under this revolving credit facility with
Silver Point.

NaviSite Inc. provides information technology hosting,
outsourcing and professional services for mid- to large-sized
organizations.  It has 14 state-of-the-art data centers and
eight major office locations across the United States, United
Kingdom, and India.


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

GARUDA INDONESIA: To Sell Shares in Restructuring
-------------------------------------------------
National carrier PT Garuda Indonesia targets to float 37.5% of
its shares in 2010 via an initial public offering, XFN News Asia
relates citing Bisnis Indonesia.

Bisnis Indonesia said that, according to an unnamed Garuda
official, aside from the share offering, the Company also plans
to sell five DC-10 airplanes and a branch office in Brussels,
Belgium, as part of the Company's restructuring efforts.

The Troubled Company Reporter - Asia Pacific reported on June 8,
2006, that Garuda Indonesia was having trouble making principal
payments on its IDR7.42-trillion debt since 2005, due to fierce
competition from budget airlines, increasing fuel prices, a
weaker rupiah, and sluggish demand after terrorist attacks on
tourists in Bali in October 2005.  According to Garuda Chief
Executive Officer Emirsyah Satar, the Company incurred losses
worth IDR635.78 billion in 2005 alone.

In order to aid the Company to avoid bankruptcy, the Indonesian
Government put up a "state-enterprise restructuring fund,"
created specifically to help financially troubled state-owned
firms recover from losses and debts.  Proceeds for the fund
would come from the securitization of certain Government-held
minority stakes in private and state-owned firms.

According to the TCR-AP, Garuda Indonesia is finalizing its
restructuring plan to include a debt repayment agreement it had
worked out with its creditors.  The Company aims to secure
creditor approval for its restructuring plan by December 2006.

Bisnis Indonesia cites the Garuda officer as saying that the
airline has begun debt restructuring talks with its main
creditor, Export Credit Agency, in Jakarta.

                      About Garuda Indonesia

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

The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005.  It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates.  At present, Garuda is concentrating its efforts on
repaying its debts with foreign creditors under the European
Credit Agency, which were due last December 31, 2005.  Garuda
Indonesia's debt totals IDR7.32 trillion, with IDR4.6 trillion
owed to its ECA creditors.


PERUSAHAAN LISTRIK: Starts Plant Construction Bidding Process
-------------------------------------------------------------
PT Perusahaan Listrik Negara may start the tender offer for the
construction of coal-fired power plants located in 30 areas
outside Java this October, the Jakarta Post reports.

According to PLN acting president Djuanda Nugraha Ibrahim, the
projects entail the construction of power plants with a power
capacity from 2,900 megawatts and 3,100 MW in these areas:

   -- East Nusa Tenggara;
   -- Kalimantan;
   -- Maluku;
   -- Papua;
   -- Sumatra; and
   -- West Nusa Tenggara

Power plants to be built in Java are slated to produce between
6,900-7,200 megawatts of electricity, he added.

The Government had earlier approved the construction of several
power plants worth IDR73.09 trillion from 2006 to 2010, in order
to produce a combined capacity of 10,000 megawatts to keep up
with increasing local power demand.  PLN aims to reduce its use
of fuel-based power plants to 5% of total capacity from the
current 30% level.

The Government has started accepting bidding offers from
investors in China, Europe, India, Japan, Malaysia and South
Korea, as well as other nations.  Winners are to be announced in
October.  Investors sought letters of guarantee to ensure that
the Government would continue the project in case a disturbance
would stop construction, so as to avoid a repeat of several
cancelled power plant construction projects during the Asian
financial crisis in 1997.

                          *     *     *

Indonesian state power firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity
to around 30 million customers, roughly 60% of Indonesia's
population.  The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages.  PLN posted an
IDR4.92-trillion net loss in 2005, against a net loss of IDR2.02
trillion in 2004.

A report by the Troubled Company Reporter - Asia Pacific on
June 30, 2006, states that the Indonesian Government had offered
to settle PLN's debt to state oil & gas firm PT Pertamina, whih
totaled IDR23.9 trillion, according to the firm.  But PLN acting
president Djuanda Nugraha Ibrahim says that the Company owes
PHP17 trillion to Pertamina.


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

JAPAN AIRLINES: Reprimanded For Safety Lapse
--------------------------------------------
The Ministry of Land, Infrastructure & Transport reprimanded
Japan Airlines Corp. after it discovered that one of the
carrier's pilots had been flying planes after taking medicine
prohibited when on the job, Mainichi Daily News relates, citing
Jiji Press.

The pilot had flown seven domestic flights for JAL subsidiary
Japan Airlines Domestic Co. between June 10 and July 12, 2006,
while on the restricted drug.  Reuters News states that the
pilot had undergone surgery in May 2006, to remove a tumor near
his ear, and had gone back to work without being checked by a
doctor to determine if he was well enough to go back to work.
He did not report the surgery to the Company.

JAL said it has taken the Ministry's warning seriously and will
submit a report proposing additional safety measures to the
Ministry on July 28, 2006.  Mainichi News says that there was no
safety problem related to the incident.

                          *     *     *

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

As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion,
whereas shareholders' equity stood at JPY148.1 billion.

The Troubled Company Reporter - Asia Pacific stated on May 12,
2006, that JAL posted a consolidated net loss of
JPY47.24 billion for the business year 2005 ended March 31,
2006, due to safety-related incidents in 2005 that caused
passengers to shift to its rival All Nippon Airways, and an
increase in aviation fuel costs.

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
Company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  Fitch assigned
a BB- rating on the Company, which is three notches lower than
investment grade, whereas Moody's Investors Service gave Ba3
senior unsecured and issuer ratings for Japan Airlines
International Co., Ltd., as well as its Ba3 issuer rating for
Japan Airlines Domestic Co., Ltd.


JAPAN AIRLINES: S&P Affirms B+ Corporate Credit & Debt Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services had, on July 20, 2006,
affirmed its 'B+' long-term corporate credit and senior
unsecured debt ratings on Japan Airlines Corp., after it
announced the price of new shares to be issued via a public
offering.  The outlook on the long-term credit rating is
negative.

S&P credit analyst Katsuyuki Nakai said, "Although the capital
increase is likely to improve JAL's financial standing, it will
not be sufficient to cushion the Company against unexpected
Events.  Concern remains on the Company's long-term cash flow
generation and its debt-to-capital structure, which is burdened
by the large investments needed to maintain its competitiveness.
Hence, JAL's credit quality remains under downward pressure."

Based on the announced price per share, the amount to be raised
from the equity issuance is estimated at around JPY146.9
billion, including the additional sale of shares through an
over-allotment option.  The capital increase, in preparation for
the possible redemption of convertible bonds worth JPY100
billion in March 2007, will temporarily stabilize JAL's
liquidity, supporting its credit quality.  The Company's ratio
of debt to total capital, after adjusting for lease financing,
is slated to improve to 85% at March 2007 from 91.1% as of March
2006.  However, the scheduled capital increase is considered to
be insufficient to revive JAL's financial profile, since
terrorist attacks on September 11, 2001, the war in Iraq, and
severe acute respiratory syndrome have contributed to the
Company's JPY250-billion loss in earnings from fiscal 2001 --
ended March 31, 2002 -- to fiscal 2003.

JAL continues to face a tough business environment.  It will
likely take a very long time before the Company recovers its
passenger base, as several customers shifted to All Nippon
Airways Co. Ltd. (BB-/Positive/--) due to JAL's safety problems
and management troubles.  These factors, along with the risk of
deterioration in profits from rising jet fuel prices, make
improvement in JAL's cash flow generation unlikely.

To strengthen its competitiveness, JAL plans to invest actively
in its aircraft fleet, focusing on small- and medium-size
planes.  The Company is also investing to improve safety as well
as its in-flight services.  As a result, JAL's capital
expenditure, including finance leasing, is expected to remain at
a high level of JPY220 billion to JPY260 billion over the next
three years.  Standard & Poor's believes that it will be
difficult for JAL to raise capital through further equity
financing.  Moreover, given the Company's need for high-level
investment, it is unlikely that its debt-to-capital structure
will improve rapidly.

A rating downgrade would likely increase if JAL's financial
profile further deteriorates from a delay in improving cash
flows.  The delay in restructuring measures, prolonged slump in
demand from travelers, and high fuel prices remain critical
factors in the recovery of the Company's performance.  Another
key issue is the company's financial flexibility, based on its
financing policy going forward.

JAL's existing debt issues are guaranteed by its operational
subsidiaries, Japan Airlines International Co. Ltd.
(B+/Negative/--) and Japan Airlines Domestic Co. Ltd. (NR).

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


MITSUBISHI MOTORS: Recalls Over 1,200 Cars on Tank Defect
---------------------------------------------------------
Mitsubishi Motors Corp. disclosed on July 20, 2006, that it
recalled 1,263 cars sold in Japan since their fuel tanks were
defective, BusinessWeek says.

Company spokesman Seiichiro Maeshiro said that the recalled
vehicles belonged to any of four Proudia models and two Dignity
models that were produced from January 2000 to June 2001.  None
of the models were exported, and they are no longer in
production.

According to the Associated Press, the Company's statement said
that the fuel tanks of the cars belonging to the six models were
actually bigger than the design size, which could crack when
inner pressure increased, or could leak gas when fully loaded,
hence it was necessary to recall them.

                      About Mitsubishi Motors

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.

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

                          *     *     *

Japan Credit Rating Agency, Ltd. had on July 18, 2006, upgraded
the Company's senior debts rating to BB- from B- with a stable
outlook, as its restructuring has been going well as planned,
with Mitsubishi group firms increasing their stakes in MMC to
34.3% as of March 31, 2006.


OCA INC: Idaho Unit Files Schedules of Assets and Liabilities
-------------------------------------------------------------
Orthodontic Centers of Idaho, Inc., Oca, Inc.'s debtor-
affiliate, delivered to the United States Bankruptcy Court for
the Eastern District of Louisiana its schedules of assets and
liabilities, disclosing:

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property
  B. Personal Property
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                                US$92,255,022
  E. Creditors Holding
     Unsecured Priority Claims
  F. Creditors Holding
     Unsecured Non-priority
     Claims
                                        ---         ------------
     Total                             US$0       US$92,255,022

A copy of the 22-page document containing the schedules is
available for free at http://ResearchArchives.com/t/s?dd3

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Debtor's client practices provide
treatment to patients throughout the United States and in
Mexico, Spain, Brazil, Puerto Rico, and Japan.

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No. 06-
10179).  Three Debtors also filed for bankruptcy protection on
June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).  William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors.  Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors.  Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders.  When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.


OCA INC: N.C. Regulator Wants N.C. Unit Lawsuit Continued
---------------------------------------------------------
The North Carolina State Board of Dental Examiners asks the
United States Bankruptcy Court for the Eastern District of
Louisiana to determine that the automatic stay under Section 362
of the Bankruptcy Court does not apply to the claims asserted
against the Board by Orthodontic Centers of North Carolina,
Inc., and Oca, Inc., debtor-affiliate in a North Carolina case.

In the alternative, the Board asks the Court to lift the
automatic stay and to continue litigation and defense of those
claims.

The case is pending in the General Court of Justice, Superior
Court Division, County of Wake, State of North Carolina (Case
No. 97 CVS 2270).

Debtor OCS commenced the case seeking declaratory judgment and
judicial review, and specifically, an order restraining the
Board from conducting a hearing scheduled on April 17, 1997, in
which the Board alleged that certain dentists were engaged in a
working relationship in violation of N.C. Gen. Stat Section 90-
29(b)(11).  The Board alleged that OCS violated the proscription
of corporate ownership, management, and control of a dental
practice in violation of certain consent orders.

Dennis M. Laborde, Esq., at Baldwin Haspel LLC in New Orleans,
Louisiana, asserts that OCS' claims against the Board are not
stayed by operation of Sec. 362 of the Bankruptcy Code.
Additionally, a Board action in defense of those claims,
likewise, is not subject to the automatic stay.  The subject
matter in the North Carolina litigation is purely regulatory in
nature, and the purposes of the litigation is not in any way to
obtain possession of or exercise control over OCS' property.

                         About OCA

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Debtor's client practices provide
treatment to patients throughout the United States and in
Mexico, Spain, Brazil, Puerto Rico and Japan.

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No. 06-
10179).  Three Debtors also filed for bankruptcy protection on
June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).  William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors.  Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors.  Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders.  When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.


OCA INC: Has Until August 14 to Remove State Court Civil Actions
----------------------------------------------------------------
The Honorable Jerry B. Brown of the United States Bankruptcy
Court for the Eastern District of Louisiana extended the period
within which OCA, Inc., and its debtor-affiliates can remove
state court civil actions either to the U.S. District Court for
the Eastern District of Louisiana or its Bankruptcy Court to
Aug. 14, 2006.

Tristan Manthey, Esq., at Heller, Draper, Hayden, Patrick &
Horn, L.L.C., New Orleans, Louisiana told the Court that the
additional enlargement of time sought will afford the Debtors an
opportunity to make fully informed decisions concerning removal
of any Civil Action and will ensure that the Debtors do not
forfeit valuable rights under Section 1452 of the Judiciary
Procedures Code.  The rights of the Debtors' adversaries will
not be prejudiced by the extension.  Any party to a Civil Action
that is removed may seek to have it remanded to the applicable
court on any equitable ground.

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Debtor's client practices provide
treatment to patients throughout the United States and in
Mexico, Spain, Brazil, Puerto Rico and Japan.

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No. 06-
10179).  Three debtor-affiliates also filed for bankruptcy
protection on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).
William H. Patrick, III, Esq., at Heller Draper Hayden Patrick &
Horn, LLC, represents the Debtors.  Patrick S. Garrity, Esq.,
and William E. Steffes, Esq., at Steffes Vingiello & McKenzie
LLC represent the Official Committee of Unsecured Creditors.
Carmen H. Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B.
Cheatham, Esq., at Adams and Reese LLP represent the Official
Committee of Equity Security Holders.  When the Debtors filed
for protection from their creditors, they listed US$545,220,000
in total assets and US$196,337,000 in total debts.


OCA INC: Hawaii Unit Files Schedules of Assets and Liabilities
--------------------------------------------------------------
Orthodontic Centers of Hawaii, Inc., Oca, Inc.'s debtor-
affiliate, delivered to the United States Bankruptcy Court for
the Eastern District of Louisiana its schedules of assets and
liabilities, disclosing:

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property
  B. Personal Property
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                               US$92,255,022
  E. Creditors Holding
     Unsecured Priority Claims
  F. Creditors Holding
     Unsecured Non-priority
     Claims
                                        ---         -----------
     Total                             US$0       US$92,255,022

A copy of the 22-page document containing the schedules is
available for free at http://ResearchArchives.com/t/s?e12

Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices.  The Debtor's client practices provide
treatment to patients throughout the United States and in
Mexico, Spain, Brazil, Puerto Rico and Japan.

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No. 06-
10179).  Three debtor-affiliates also filed for bankruptcy
protection on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).
William H. Patrick, III, Esq., at Heller Draper Hayden Patrick &
Horn, LLC, represents the Debtors.  Patrick S. Garrity, Esq.,
and William E. Steffes, Esq., at Steffes Vingiello & McKenzie
LLC represent the Official Committee of Unsecured Creditors.
Carmen H. Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B.
Cheatham, Esq., at Adams and Reese LLP represent the Official
Committee of Equity Security Holders.  When the Debtors filed
for protection from their creditors, they listed $545,220,000 in
total assets and $196,337,000 in total debts.


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

HYNIX SEMICONDUCTOR: Consolidated Revenues Up 15% in 2nd Quarter
----------------------------------------------------------------
Hynix Semiconductor Inc. recorded consolidated revenues of
KRW1.67 trillion for the quarter ending June 30, 2006, a 15%
increase compared to the KRW1.45-trillion revenue recorded for
the quarter ended March 31, 2006, and a 31% increase from the
KRW1.27-trillion revenue for the quarter ended June 30, 2005,
according to a company press release.

Hynix sales was buoyed by limited supply of dynamic random
access memory, or DRAM, chips which accounted for its price
stability.  NAND flash chips prices were cut by almost half, but
was completely offset by a growth of 84% in shipments.

The company recorded operating profit of KRW387 billion in the
second quarter of 2006 -- an 8% increase from the previous
quarter's KRW360 billion -- which resulted in the operating
margin of 23% compared to previous quarter's 25%.  As a result,
the Company's EBITDA in the second quarter was KRW742 billion,
with EBITDA margin of 44%, which is a 7% increase from
KRW691 billion in the previous quarter.

Net income for the second quarter of 2006 also increased by 13%
to KRW334 billion from KRW294 billion of the previous quarter.

As of June 30, 2006, total consolidated assets total
KRW11.77 trillion, while total consolidated liabilities total
KRW4.45 trillion.

Hynix Semiconductor's financial report for the quarter ending
June 30, 2006, is available for free at:

   http://bankrupt.com/misc/Hynix_2ndQuarter_Earnings.pdf

                   About Hynix Semiconductor

Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.

Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.


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

MALAYSIA AIRLINES: Offers Additional Flights to Thailand
--------------------------------------------------------
Beginning August 1, 2006, Malaysia Airlines will add another
daily flight for its Bangkok-Kuala Lumpur and Phuket-Kuala
Lumpur routes, Bernama reports.

The report cites Malaysia Airlines country manager for Thailand,
Barbara Dirnberger, as saying that the extra Bangkok-Kuala
Lumpur flight will be an ideal connection to London, Frankfurt,
Paris, Zurich, Johannesburg, Capetown, Seoul, Beijing, and
Tokyo.

According to Bernama, the current passenger loading of Malaysia
Airlines flights to Bangkok and Phuket and vice versa is between
70% and 80%.

Malaysia Airlines used to fly twice daily from Phuket but
trimmed it to one after the December 26, 2004, tsunami crippled
tourism activities on the island, Bernama relates.  The carrier
had also flown to Chiangmai and Haadyai but stopped in 2001 due
to lack of passengers.

Bernama also recounts that Malaysia Airlines had planned a third
flight in 2003, but the severe acute respiratory syndrome, bird
flu, the Iraq war and the tsunami affected its plan, Bernama
adds.

With the new development, the carrier hopes to further boost its
flights to Thailand, which is branded as a top tourist
destination in Asia.

                    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, 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.


MENTIGA CORPORATION: Incorporates Mining Subsidiary
---------------------------------------------------
On July 19, 2006, Mentiga Corporation Berhad had incorporated
Mentiga Mining Sdn Bhd.

Mentiga Mining is principally involved in mining, extraction and
exploration of cores and other minerals.  It has an issued and
paid up share capital of MYR2 comprising two ordinary shares of
MYR1 each.

The subscribers' shares of Mentiga Mining were registered under
the name of these nominees, with one subscriber's share each:

         * Muhammad Nasir Bin Puteh; and
         * Aminuddin Bin Zainal.

                    About Mentiga Corporation

Headquartered in Pahang Darul Makmur, Malaysia, Mentiga
Corporation Berhad is engaged in the trading of timber products,
construction and property development and management and
advisory services to oil palm plantations.  In 2003, the Company
proposed to undertake a debt-restructuring program to settle its
debt with creditors.  The Company has been suffering losses in
the past years and is currently working to avert a possible
delisting from the Official List of Bursa Malaysia Securities.
The Group has submitted a revised comprehensive proposal to the
Securities Commission on March 16, 2005, to regularize its
financial condition and to restore the Group's shareholders'
fund from being in a deficit position in order to remove Mentiga
from being classified as a Practice Note 4 company.

As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR86,233,000 and total liabilities of MYR152,048,000,
resulting in a shareholders' deficit of MYR65,815,000.


METROPLEX BERHAD: Members Pass All AGM Resolutions
--------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
June 28, 2006, Metroplex Berhad's 43rd Annual General Meeting
was scheduled on July 19, 2006.

In an update, the Company relates that during the meeting, its
members:

   -- adopted the audited the Company's financial statements
      and reports for the year ended January 31, 2006;

   -- approved payment of directors' fees;

   -- re-elected these persons as directors:

      * Lim Siew Kim;
      * Kee Lian Yong; and
      * Yahya bin Ismail;

   -- reappointed BDO Binder as the Company's auditors;

   -- authorized the Company's directors to allot and issue
      shares pursuant to the Company's Act;

   -- approved the proposed renewal of the existing
      shareholders' mandate for recurrent related party
      transactions of a revenue or trading nature; and

   -- approved the proposed amendments to the Company's
      Memorandum & Articles of Association.

                     About Metroplex Berhad

Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations.  Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school.  Operations are
carried out in Malaysia, Hong Kong, and the Philippines.

On April 28, 2005, Morgan Stanley Emerging Markets Inc., had
filed a winding-up petition against the Company with the Kuala
Lumpur High Court.  Morgan Stanley also filed for a summons to
appoint a provisional liquidator for the wind up.  Until and
unless a provisional liquidator is appointed pursuant to the
application to the Court by the Petitioner to appoint
provisional liquidator for Metroplex, the winding-up petition
will not have significant impact on the Group's operations as
Metroplex is currently working out a debt-restructuring scheme.
In the event the wind-up petition succeeds, the Company will be
put into liquidation.

Metroplex Berhad's April 30, 2006, balance sheet revealed total
liabilities of MYR1,417,778,000 exceeding total assets of
MYR1,214,518,000, resulting into a shareholders' deficit of
MYR203,260,000.


MULTI-USAGE HOLDINGS: Appeals SC's Rejection of Revamp Plan
-----------------------------------------------------------
On July 19, 2006, Multi-Usage Holdings Berhad submitted an
appeal to the Securities Commission to reconsider its rejection
of the Company's restructuring proposals.

As reported in The Troubled Company Reporter - Asia Pacific on
June 26, 2006, the Securities Commission had denied Multi-Usage
Holdings' restructuring scheme.

According to the TCR-AP report, the SC's decision was made after
determining that the assets to be injected to the Multi-Usage
Group have yet to generate profitability and do not have good
prospects of strong profits and cash flows that will bring
immediate benefits to the Group.

Furthermore, the SC found out that the indicative issue price of
the Rights Shares is higher than the Company's current market
share price.  This may affect the successful implementation of
the Proposed Two-Call Rights Issue With Free Detachable
Warrants.

Multi-Usage proposes revisions to the rejected proposals to
address the concerns and issues raised by the SC in an
announcement dated June 21, 2006.

Details of the Proposal revisions are available for free at:

  http://bankrupt.com/misc/tcrap_multiusageholdings072106.doc

                   About Multi-Usage Holdings

Headquartered in Penang, Malaysia, Multi-Usage Holdings Berhad's
principal activities are development of properties, manufacture,
and sale of cement concrete products, cement bricks, hollow
blocks, stones, and all kinds of building materials.  The
Company is also engaged in contracting works for construction
project, provision of management services, hiring of mobile
crane and other heavy equipment, trading of furniture, and
investment holding.  The Group operates predominantly in
Malaysia.

As of March 31, 2006, the Company's auditors expressed doubt on
the Group's financial position and the Company's proposed
restructuring scheme.  According to the auditors, the Company's
ability to go on as a going concern hinges on the implementation
of its restructuring scheme.


PARACORP BERHAD: Unit Defaults on Banking Facility
--------------------------------------------------
Paracorp Berhad's major wholly owned subsidiary, Empire Valley
Sdn Bhd, has defaulted in its MYR5,177,762 repayment of a
banking facility granted by HSBC Bank Malaysia Berhad through a
facility agreement dated July 15, 1997.

Empire Valley blamed its inability to repay the banking facility
on its current negative cash flow position.

The default of payment has no further financial impact on
Paracorp because the outstanding payable under the banking
facility has been accrued and is reflected in the financial
statements of the Company.  However, Paracorp is reviewing
various restructuring options to address its financial condition
including restructuring of its repayment of the banking facility
in default.

Furthermore, Paracorp declared itself and its subsidiaries as
insolvent, as the Group is unable to repay all of its debts
within the next 12 months.

                      About Paracorp Berhad

Paracorp Berhad's principal activities are the manufacture and
trading of printed graphic overlay, printed electronic circuits,
electroluminescent display, telemetry monitoring system,
electronic circuit components, corrugated plastic sheets,
corrugated carton boxes and plain boards.  Its other activities
include the provision of management services, investment
holding, property investment, property management, money
lending, technology management and research and development
services.  The Group operates in Malaysia, Oceanic countries,
European countries, American countries and other Asian
countries.

The Company has been incurring losses in the past.  For the
quarter ended March 31, 2006, the Company recorded a net loss of
MYR12.3 million.  As of March 31, 2006, the Company's balance
sheet revealed total assets of MYR106,347,000 and total
liabilities of MYR110,465,000, resulting in a MYR41,180,000
stockholders' deficit.

The Company is also classified under Practice Note 17 of Bursa
Malaysia Securities Berhad's Listing Requirements.  As an
affected listed issuer, the Company is required to submit a
financial regularization plan by January 7, 2007.


PSC INDUSTRIES: Court Allows Bank Islam's Summary Judgment Bid
--------------------------------------------------------------
Bank Islam Malaysia Bhd has received court approval for the
summary judgment of its two suits against PSC Industries Bhd and
Penang Shipbuilding & Construction Sdn Bhd., totaling
MYR27.62 million, which sum consist of:

   -- MYR14.89 million against PSC Industries as of November 18,
      2005, under term loan and revolving credit facilities
      provided to PSCI; and

   -- MYR12.73 million as of November 18, 2005, against Penang
      Shipbuilding, which amount was under the Al Naqad, Al Bai
      Bithaman Ajil and Murrabahah working capital financing
      facilities provided to Penang.

PSCI considers filing an appeal against the Court's decisions.

                   About PSC Industries Berhad

PSC Industries Berhad's principal activities are shipbuilding
and ship repairing. It is also involved in heavy engineering
construction, provision of shipping management services,
manufacturing of aluminium fast passenger sea ferries, supplies
equipment and machineries, marketing and distributing Exocet
Weapon system, manufacturing of confectioneries, snack food and
related products, general trading, power plant construction and
its support activities, printing, property development, and
property and investment holding.  The Group operates in
Malaysia, Australia and the Republic of Ghana.

The Company is currently formulating a regularization plan for
the Group pursuant to Practice Note 17/2005 of the Bursa
Malaysia Securities Berhad's Listing Requirements.  The Company
is also looking at various measures to improve its financial
solvency.

As of March 31, 2006, the Company's balance sheet showed
MYR212,330,000 in total assets and MYR677,272,000 in total
liabilities, resulting in a MYR464,942,000 stockholders'
deficit.


PROTON HOLDINGS: Seeks Shareholders' Mandate for RRPTs
------------------------------------------------------
Proton Holdings Berhad will seek shareholders' approval for the
proposed shareholders' mandate for recurrent related party
transactions of a revenue or trading nature at its forthcoming
extraordinary general meeting.

In its ordinary course of business, the Proton Group has entered
or will enter into recurrent transactions of revenue or trading
nature necessary for its day-to-day operations with different
classes of related parties.  These RRPTs have been or will be
carried out on an arm's-length basis and on normal commercial
terms that are not more favorable to the related parties than
those generally available to the public, and which will not be
detrimental to minority shareholders.

The Group proposes to obtain shareholders' mandate for the RRPTs
in compliance with Bursa Malaysia Securities Berhad's Listing
Requirements.  The shareholders' mandate, if obtained, will
expire at Proton's Annual General Meeting in 2007 and will apply
in respect of the RRPTs to be entered into by the Group from the
date of the forthcoming EGM.  Thereafter, approval from our
shareholders for a renewal of the shareholders' mandate will be
sought at each subsequent AGM/EGM of the Company.

The Proposed Shareholders' Mandate will substantially reduce
expenses associated with the convening of general meetings,
improve administrative efficiency, and allow human resources and
time to be channeled towards attaining the Company's corporate
objectives and business opportunities.

The Company notes that the Proposed Shareholders' Mandate will
not have any effect on Proton's issued and paid-up share capital
and substantial shareholders' shareholdings.  It is also not
expected to have any material effect on the Company's net assets
and earnings.

                     About Proton Holdings

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

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

The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner by the end of this
year.


SATERAS RESOURCES: Complies with Public Spread Requirement
----------------------------------------------------------
Sateras Resources (Malaysia) Berhad reports that its public
shareholding spread as of June 30, 2006, was 94.79%, comprising
21,814 public shareholders holding not less than 100 shares
each.

Thus, Sateras has complied with the public shareholding spread
requirement pursuant to the Listing Requirements of Bursa
Malaysia Securities Berhad.

                  About Sateras Resources

Headquartered in Kuala Lumpur, Malaysia, Sateras Resources
(Malaysia) Berhad is principally engaged in investment holding
and provision of management and secretarial services.  The
principal activities of its subsidiary companies are that of
property development, investment in real property, investment
holding and educational services.

The Company has been experiencing losses since the Asian
financial crisis in 1997.  As of March 31, 2006, the Company's
balance sheet revealed accumulated losses of MYR409,473,000 and
stockholders' deficit of MYR99,838,000.


SUGAR BUN: Unveils 22nd AGM Results
-----------------------------------
The Troubled Company Reporter - Asia Pacific reported on July 4,
2006, that Sugar Bun Corporation's 22nd Annual General Meeting
will be held on July 20, 2006.

At the Meeting, the Company's members passed all resolutions
and:

   -- received the Directors' Report and the Audited Financial
      Statements for the financial year ended January 31, 2006,
      together with the Auditors' Report;

   -- approved the Directors' fees for the financial year ended
      January 31, 2006;

   -- re-elected as directors:

      * John Lee Yan Hong; and
      * Tan Kok Chor;

   -- reappointed Messrs Leou & Associates as auditors of the
      Company until the Conclusion of the Company's next Annual
      General Meeting and to authorize the Directors to fix
      their remuneration;

   -- empowered the directors to allot and issue shares in the
      Company at any time until the conclusion of the next
      Annual General Meeting provided that the aggregate number
      of shares to be issued does not exceed 10% of the total
      issued share capital of  the Company for the time being;
      and

   -- transacted any other ordinary business for which due
      notice has been given.

                  About Sugar Bun Corporation

Sugar Bun Corporation Bhd -- http://www.sugarbun.com/-- is
engaged in the operation and franchising of restaurants,
bakeries, and confectioneries.  Its other activities include
general trading of machinery, spare parts and phone cards,
investment holding and provision of administrative, management
and marketing services.  Operations of the Group are carried out
mainly in Malaysia.  The Company is currently undertaking a
corporate and debt restructuring program to wipe out its
accumulated losses.  As of April 30, 2006, the Company has
accumulated losses of MYR46,190,000.


TAP RESOURCES: Universal Trustee Slaps Over MYR78,000 Claim
-----------------------------------------------------------
On July 18, 2006, TAP Resources Berhad's subsidiary, TAP
Construction Sdn Bhd, received a claims payment demand notice
from Universal Trustee (Malaysia) Berhad.

Pursuant to the Notice, TAP Construction was required to pay
MYR77,980 together with interest and costs, plus MYR105 being
the cost of issuing the Notice.  TAP Construction is given until
August 8, 2006, to settle the demand.

TAP Resources' legal representative will be addressing the
matter.

                   About TAP Resources Berhad

TAP Resources Berhad is principally engaged in property
development.  Its other activities include general contracting;
manufacturing and general trading of building materials,
construction chemicals, ready mixed concrete and non-baked
bricks; installing air-conditioners, process control and switch
gear automation; selling of electrical goods; and investment
holding.  The Group operates wholly in Malaysia.

As of April 30, 2006, the Company registered a net loss of
MYR3.57 million and a net current deficit of MYR48.56 million.
The Company has defaulted in the redemption of the balance of
MYR31,734,381 redeemable convertible secured loan stocks.  It
has also defaulted in the payment of interests, default
interests and overdue interests totaling approximately
MYR3.1 million.


WEMBLEY INDUSTRIES: Restructuring Talks with Dewan Still Ongoing
----------------------------------------------------------------
Wembley Industries Holdings Berhad's wholly owned subsidiary,
Plaza Rakyat Sdn Bhd, and Dewam Bandaraya Kuala Lumpur are still
negotiating on the terms and conditions of a supplemental
agreement between them.  Government ministries and departments
are also involved in the discussions.

The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that the Securities Commission granted Plaza Rakyat until
July 31, 2006, to sign a supplemental agreement with Dewan
Bandaraya in relation to a joint venture agreement, which
is part of the Company's restructuring scheme.

The restructuring scheme involves a proposed:

   * capital reduction and consolidation;

   * debt-restructuring; and

   * rights issue.

               About Wembley Industries Holdings

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'
deficit. 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
=====================

BANGKO SENTRAL: Loses PHP2.1 Bil in 1st Quarter from Forex Deals
----------------------------------------------------------------
The Bangko Sentral ng Pilipinas posted a PHP2.1-billion loss in
the first quarter of 2006, a reversal from the PHP3.22-billion
income it reported in the previous corresponding quarter, the
Manila Standard reports.

The central bank registered a loss of PHP2.41 billion from its
foreign exchange trading during the period, almost double the
PHP1.27-billion loss it booked on year, on the appreciation of
the Philippine peso against the U.S. dollar during the period
from PHP53 to PHP51 levels.  The bank beefed up its reserves to
US$20.84 billion at the end of March, 10% higher than its
reserves of US$18.414 billion at the end of December 2005.

Excluding foreign exchange operations, the Bank reports an
income of PHP31 million, sharply down from the PHP4.5-billion
income reported a year ago, as revenues dropped and its expenses
increased.  Revenues amounted to P12.56 billion in the first
quarter, about 15% lower than the P15.07 billion reported a year
ago.

               About Bangko Sentral ng Pilipinas

The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is
the central bank of the Republic of the Philippines.  It was
established on July 3, 1993 pursuant to the provisions of the
1987 Philippine Constitution and the New Central Bank Act of
1993.  BSP took over from the Central Bank of Philippines as the
country's central monetary authority.  Bangko Sentral enjoys
fiscal and administrative autonomy from the National Government
in the pursuit of its mandated responsibilities.

Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B'
Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign
Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit
Rating effective January 17, 2005.

Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior
Unsecured Debt Rating.


CHINA BANK: Registers 86.38% Increase in 1st Quarter Net Profit
---------------------------------------------------------------
China Banking Corporation's net income after tax for the first
quarter of 2006 stood at PHP1.19 billion, 86.38% higher than its
PHP639-million income for the first quarter of 2005, mainly due
to increase in income from trading and securities gain and a
PHP50 million lower provisioning, according to the Bank's
financial report filed with the Philippine Stock Exchange.

Interest income grew 9.17% to PHP2.59 billion with interest
income on loans, trading and investment securities and deposits
with other banks posting positive growths for the 2006 first
quarter.  Net interest margin was registered at 4.60% versus
last year's 5.25%.  Other income amounts to PHP1.52 billion
while operating expenses went up by 16.36% or PHP178.61 million
from PHP1.09 billion in the first quarter of 2005 to
PHP1.27 billion in the first quarter of 2006.

Interest expense went up by 16.26% to PHP1.19 billion in the
quarter ended March 31, 2006, from PHP1.03 billion in the
quarter ended March 31, 2005, which can be attributed to higher
volume of deposits.  Consequently, net interest income grew by
3.78% to PHP1.40 billion in Jan-Mar 2005.

Return on Average Equity stood at 21.74%, making China Bank one
of the few banks that reported double-digit ROEs.  Return on
average assets was 3.57% for the first quarter from 2.58% last
year, whereas capital to risk assets ratio was 28.92%.

The Bank's liquidity ratio (the ratio of liquid assets to total
assets) improved to 49.43% from 46.86% in December 2005.  Total
resources as of March 31, 2006, stood at PHP134.08 billion,
while total liabilities were at PHP112.20 billion.

China Bank's financial report for the quarter ended March 31,
2006, is available for free at:

   http://bankrupt.com/misc/CHIB_17Q_Mar2006.pdf

                        About China Bank

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

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

                          *     *     *

Moody's Investors Service gave China Bank a 'B' Long-term Issuer
Default Rating effective May 17, 2006.


NATIONAL POWER: To Raise Power Rates for Luzon Grid
---------------------------------------------------
National Power Corp. will increase its rates for the Luzon power
grid by PHP0.0110 per kilowatt-hour based on its generation rate
adjustment mechanism and PHP0.3687 per kilowatt-hour for
incremental currency exchange rate adjustments, the Philippine
Star says.

According to the report, the Energy Regulator Commission
approved both rates.

ABS-CBN News relates that the new rates would be added to
Napocor's existing GRAM at around PHP0.4060 and ICERA of
PHP0.2032.  The new rates will take effect unless the Commission
approves the recovery of deferred charges for the Company, the
Star adds.

The ERC clarifies that the power rate increase amounts to
PHP0.3797 per kilowatt-hour, and not PHP0.99 as had been
reported earlier, ABS-CBN News reveals.  ERC Chairman Rodolfo
Albano said that the increase was miscalculated since the
approved rates were added to the previous ones.  Instead, the
new GRAM & ICERA rates will be added to Napocor's basic
generation rate of PHP3.8966 and to its franchise and benefits
to host communities charge in order to get the total effective
rates.  The Manila Times states that the ERC has asked the media
to be careful in reporting power rate adjustments, so as not to
alarm consumers.

                    About National Power

Headquartered in Quezon City, Philippines, National Power
Corporation -- 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, Napocor sells electricity to distributors and
industrial companies.  To comply with the privatization bill
approved by the Philippine Congress, the Company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

                          *     *     *

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

The Government absorbed National Power's PHP200 billion debt,
which was incurred when the government-owned-and-controlled
corporation adopted international accounting standards, forcing
the Company to report its foreign exchange losses.

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


PHILIPPINE NATIONAL BANK: Starts PHP3-Billion Debt Notes Offer
--------------------------------------------------------------
Philippine National Bank has started offering since July 19,
2006, between PHP3 billion to PHP5 billion worth of 10-year
unsecured debt notes, The Philippine Daily Inquirer reports,
citing bank officials.

The notes, callable on the fifth year, will likely carry a
coupon rate of 10%.

PNB treasurer Asterio Favis Jr. said in a press conference that
the initial target is PHP3 billion, but it may go up to
PHP5 billion, depending on market demand.

According to The Inquirer, PNB had a capital adequacy ratio of
17.2% as of end-2005, well above the central bank's requirement
of at least 10%.  The report notes that officials believe the
fund-raising exercise would boost the lender's CAR level to 22%.

The Inquirer states that in the next three months, PNB plans to
sell PHP7-8 billion worth of non-performing loans and up to
PHP1.5 billion worth of foreclosed assets.  Another batch of the
same amount will be sold early next year.

To date, PNB has PHP53 billion worth of non-performing assets.
Of these, about PHP25 billion pesos are loans that have fallen
due while the rest are foreclosed properties.

The bank also wants to grow its remittance business, which
contributes about 20% of PNB's total revenues, to US$2.4 billion
from a total of US$2.2 billion in funds handled in 2005.

                 About Philippine National Bank

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

PNB is on the fourth year of its five-year rehabilitation plan
approved by the Bangko Sentral ng Pilipinas.  The rehabilitation
plan, which was signed in May 2002, stipulated these financial
components/conditions:

   * PHP7.8 billion of the PHP25 billion assistance extended by
     the BSP and Philippine Deposit Insurance Corp. would be
     converted into equity;

   * PNB will partially settle PHP10 billion of its obligation
     by way of dacion en pago through the assignment of
     government and government-related receivables; and

   * PNB will maintain PHP6.1 billion as a 10-year loan at an
     interest rate equivalent to the 91-day T-Bill rate plus 1
     percentage point to be re-priced quarterly.

PNB secured the approval of the Securities and Exchange
Commission in July 2002 to undergo quasi-reorganization, which
reduced the par value of its shares from PHP60 per share to
PHP40 per share.  This was done in order to accommodate the
PHP7.8 billion debt-to-equity conversion of the PDIC through the
issuance of 195,175,444 preferred shares.  The debt-to-equity
conversion allowed the Government to have a direct hand in the
governance and management of the Bank until full divestment of
its equity holdings.  The move resulted in the Government
controlling 44.98% of the Bank, while the Lucio Tan Group holds
a 44.98% stake.

                          *     *     *

Standard and Poor's Ratings Services has given Philippine
National Bank a 'B' Short-Term Foreign Issuer Credit and Short-
Term Local Issuer Credit ratings and a 'B-' Long-Term Foreign
Issuer Credit and Long-Term Local Issuer Credit ratings
effective as of
April 26, 2006.


PHILIPPINE NATIONAL BANK: Moody's Rates Subordinated Notes 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has assigned a rating of Ba3 to
Philippine National Bank's proposed local currency subordinated
notes -- Series A and Series B.

The rating has been assigned on the condition that no material
changes are made to the terms and conditions of the notes
reviewed.  The outlook is negative, and in line with the outlook
of the sovereign.

"The Ba3 rating recognizes PNB's systemic importance as one of
the Philippines' largest indigenous banks by assets as well as
its established franchise in overseas remittances and role as
the government's depository institution," says John Tham, a
Moody's VP/Senior Analyst.

"However, the predictability of the strong support enjoyed
throughout its history may have weakened with the government's
fiscal challenges as well as its diminished size due to ongoing
industry consolidation," Tham adds.

In light of these factors and the issue's subordination, Moody's
has assigned a rating one notch below the bank's local currency
senior obligations.  The proposed issue of subordinated notes of
P3 billion due 2016 is callable with a step-up feature in 2011.

Established in 1916 as the official depository of the Republic
of the Philippines, PNB, headquartered in Manila, reported total
assets of PHP223.1 billion as at December 31, 2005.


RIZAL COMMERCIAL BANKING: Posts PHP252 Million in 1Q Net Profit
---------------------------------------------------------------
Rizal Commercial Banking Corporation recorded a net profit of
PHP252.48 million for the first quarter of 2006, a 240% increase
from its PHP74.36-million net profit for the corresponding
quarter in 2005, according to the Bank's financial report filed
with the Philippine Stock Exchange.

RCBC's interest income for the quarter ended March 31, 2006,
totaled PHP3.66 billion, while other operating income
contributed another PHP1.13 billion.  Interest expense and other
expenses stood at PHP2.04 billion and PHP1.93 billion,
respectively.

Total resources as of March 31, 2006, amounts to
PHP190.44 billion, 3% higher than the PHP184.74 billion as of
March 31, 2005.  The increase was due to growth in financial
market assets, deposits with Bangko Sentral and with other
banks.  Total liabilities increased from PHP171.51 billion to
PHP176.99 billion.

RCBC's financial report for the quarter ending March 31, 2006,
is available for free at:

   http://bankrupt.com/misc/RCB_17Q_May2006.pdf

                           About RCBC

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

Moody's Investors Service gave Rizal Commercial Banking a 'Ba3'
Long-Term Bank Deposit Rating effective May 25, 2006.


UNIONBANK: First Quarter Net Profit Is Flat Year-on-Year
--------------------------------------------------------
UnionBank of the Philippines posted a net income of
PHP0.79 billion for the quarter ended March 31, 2006, almost
flat from the net income reported for the quarter ending
March 31, 2005, the Bank revealed in a regulatory filing with
the Philippine Stock Exchange.

UnionBank set aside PHP0.08 billion as provision for probable
losses during the year, 16.60% lower than its PHP0.09-billion
provision for last year.  Net interest income dropped 39.51% to
PHP0.52 billion in the first quarter 2006, due to the net effect
of the decrease in interest income and increase in interest
expense.  Other income rose by 54.03% to PHP1.08 billion, while
other expenses for the first quarter of 2006 totaled
PHP0.66 billion.

Total resources decreased by 2% from PHP106.95 billion as of
December 31, 2005, to PHP105.24 billion as of March 31, 2006.
Total liabilities decreased by PHP1.32 billion to
PHP87.13 billion as of March 31, 2006.

UnionBank's first quarter report 2006 is available for free at:

   http://bankrupt.com/misc/UBP_17Q_May2006.pdf

                          About UnionBank

UnionBank of the Philippines -- http://www.unionbankph.com/--  
offers a wide range of products and services to both corporate
and individual clients.  Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance.  It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.

Moody's Investors Service gave UnionBank 'Ba3' Senior Unsecured
Debt and Long-Term Bank Deposits Ratings effective May 25, 2006.


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

B.K.B. ENGINEERING: Creditors' Meeting Set on July 28
----------------------------------------------------
The creditors of B.K.B. Engineering Constructions Pte Ltd will
hold their meeting on July 28, 2006, at 10:00 a.m., at 20
Raffles Place, 24th Floor Ocean Towers, Singapore 048620.

Creditors who have previously submitted their claims to the
Judicial Manager but have not previously filed a proxy must
submit the proxy form by July 26, 2006, at 10:00 a.m., in order
to vote during the meeting.

The Judicial Manager can be reached at:

         c/o Ernst & Young
         10 Collyer Quay #21-01
         Ocean Building
         Singapore 049315


GOODMAN MARINE: Pays Dividend to Creditors
------------------------------------------
Goodman Marine International (Asia) Pte Limited has paid its
first and final dividend to its creditors pn July 4, 2006.

The creditors received 1.4555% of their admitted claims.


HL SENSECURITY: Winds Up Business Operations
--------------------------------------------
HL Sensecurity Pte was placed in voluntary liquidation on
June 28, 2006.

In this regard, creditors are required to submit their proofs of
claim to Liquidators Lim Lee Meng and Chee Yoh Chuang.  Failure
to comply with the requirement will exclude them from sharing in
any distribution the Company will make.

The Liquidator can be reached at:

         Lim Lee Meng
         Chee Yoh Chuang
         RSM Chio Lim
         18 Cross Street
         #08-01 Marsh & McLennan Centre
         Singapore 048423


NHJ (SINGAPORE): Creditors' Proofs of Claim Due on August 4
-----------------------------------------------------------
The creditors of NHJ (Singapore) Pte Limited are required to
submit their proofs of claim by August 4, 2006, to share in the
Company's dividend distribution.

The liquidator can be reached at:

         Kon Yin Tong Wong Kian Kok
         Aw Eng Hai
         Foo Kon Tan Grant Thornton
         47 Hill Street #05-01
         Singapore Chinese Chamber of Commerce
         & Industry Building
         Singapore 179365


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

CIRCUIT ELECTRONICS: Defends Five Execs Against SEC Charges
----------------------------------------------------------
Circuit Electronics, along with Thai Wire, denied in a statement
to The Stock Exchange of Thailand that their directors and
executives were guilty of fraud and accounting irregularities as
alleged by the Securities and Exchange Commission, The Nation
reports.

The Troubled Company Reporter - Asia Pacific reported on
July 21, 2006, that five executives of Circuit Electronics are
facing criminal complaints from the SEC for their alleged
involvement of a THB3.44 billion fraud case.

Varaporn Phakpong, a Circuit Electronics official, told the SET
"that the directors and the executive management acknowledge the
accusation and confirm that they have never done, nor allowed,
nor had the intention to prepare fraudulent documents, and never
embezzled the money that customers paid to the company."

Thai Wire supported Circuit's statement by reporting to the
stock exchange that three of the accused were directors of TWP,
as well as executives and directors of Circuit, had done nothing
wrong.

"The three directors have confirmed to the company that they did
not do what they have been accused of," Chatchai Siriwatana, a
director of TWP told the Bangkok Post.  "Presently, they are in
the process of verifying their innocence.  There is no
conclusion on this matter now."

However, Circuit told the Bangkok Post that the company would
consider appointing new directors and executive managers to
avoid any affects on the company.

                          *     *     *

Headquartered in Amphoe Uthai Ayutthya, Thailand, Circuit
Electronics Public Co. Limited -- http://www.cei.co.th/--  
manufactures and exports various integrated circuit and chip on
board for many kinds of electronic equipment such as mobile
phone, computer, automobile assembly, household electronic
equipment and others.  The Group operates in the United States
of America, Europe and Asia.

Circuit Electronics Industries Plc reported a net loss of
THB1.65 billion in fiscal year 2005, compared with the THB1.55-
billion net loss in 2004.




                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Asia Pacific is a daily newsletter
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Maryland, USA.  Catherine Gutib, Valerie Udtuhan, Francis
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and Peter A. Chapman, Editors.

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.

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