---

        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  

             Friday, April 27, 2007, Vol. 10, No. 83

                            Headlines

A U S T R A L I A

BRUCE PETERS: Members Opt for Voluntary Liquidation
CLINICAL DATA: Names Herman Buis as Dutch Arm's Int'l Sales Head
CROWN CASTLE: Declares Quarterly Preferred Stock Dividend
FOOT LOCKER: Offers to Buy Genesco Inc. for US$1.2-Billion Cash
FOOT LOCKER: Moody's May Downgrade Ba1 Ratings Over Genesco Bid

FOOT LOCKER: S&P Keeps BB+ Rating on Watch on Genesco Buy Move
GENERAL CABLE Completes Tender Offer for US$285-Million Notes
GENERAL CABLE: Q1 2007 Results Discussion Slated for May 2
GENERAL PRACTICE: Will Declare Final Dividend on June 15
IMPRENTA PTY: Annual & Final Meeting Set for May 18

LIB MANAGEMENT: Members' Final Meeting Set for May 21
MAFRAQ PTY: Undergoes Wind-Up Proceedings
MAPLELODGE PTY: Will Declare Dividend on May 22
MAYDOWN PTY: Members Agree to Voluntary Wind-Up
ROXBURGH HOLDINGS: Placed Under Members' Voluntary Liquidation

VICTORIAN CORPORATE: Final Meetings Set for May 17
YATES PLUMBING: Members & Creditors to Receive Wind-Up Report


C H I N A   &   H O N G  K O N G

BANK OF COMM: Shanghai IPO Subscription Reaches CNY1.45 Trillion
HONG KONG PEARL RIVER: Creditors' Proofs of Debt Due on May 23
JP MANAGEMENT: High Court to Hear Wind-Up Petition on May 23
JUSLIN HONG KONG: Taps Anthony Nedderman as Liquidator
MARBRIDGE GROUP: Wind-Up Petition Hearing Set on May 30

MCM DESIGN: Members' & Creditors' Meeting Set for May 28
OPENET INFORMATION: Creditors' Proofs of Debt Due on May 19
PHYSICAL SPA: Moores Rowland Raises Going Concern Doubt
SHENZHEN DEV: 1Q Profit Doubles on Increased Loans and Revenue


I N D I A

BRITISH AIRWAYS: Mulls Consortium Offer for Iberia Lineas Stake
BRITISH AIRWAYS: Appoints Julia Simpson as Communications Head
ESSAR OIL: Net Loss Narrows to INR555.8 Million in FY 2006
ESSAR OIL: Expects Full Production at Vadinar Refinery by Oct.
HDFC BANK: Earns INR3.44 Bil. Profit in Quarter Ended March 31

HMT LTD: Government Approves Subsidiary's Revival Plans
HMT LIMITED: Provides BSE with on Subsidiaries
GENERAL MOTORS: FSA Okays Common Stock Delisting from LSE
NOVELL INC: Will Incur Addt'l. Stock-Based Compensation Expense
* Moody's Says India's Economy Needs to Boost Output Capacity


I N D O N E S I A

ALCATEL-LUCENT: Provides Mobile Service to China Mobile's Units
ALCATEL-LUCENT: Launches New Converged Billing with LHS
APEXINDO PRATAMA: Inks Drilling Rig Services Pact for US$2.13MM
BANK INTERNASIONAL: 1Q Profit Drops 34.6% Due to Competition
BERLIAN LAJU: Plans Issuance of US$200-MM Guaranteed Sr. Notes

FOSTER WHEELER: Unit Wins Contract to Build PC Steam Generator
FREEPORT-MCMORAN: First Quarter Profit Surges to US$476.2MM
GENERAL NUTRITION: Awards Private Network Contract to New Edge
INDIKA INTI: Expects US$250 Million via Offshore Bonds Sale
INDIKA INTI: Moody's Rates US$250 Million Senior Bonds at (P)B2

PARKER DRILLING: Shareholders Approve KPMG as Accountants
PERTAMINA: Unit Signs Gas Sales Deal with Four Buyers
PERTAMINA: Inks Six-year Gas Supply Deal with Chevron Indonesia


J A P A N

DAIWA SECURITIES: Taps Thomson One to Improve Efficiency
FUJI HEAVY: Wins $2.5 Million in Contracts with Ducommun
JAPAN AIRLINES: Reports Rise in Domestic Passengers Traffic
JAPAN AIRLINES: International Passenger Traffic Fall 5.1%
MAZDA MOTOR: Improved Performance Cues S&P to Upgrade Ratings

MIZUHO BANK: Buys 1.2 Million Common Shares in Shinhan Financial
NIKKO CORDIAL: Citi Completes Tender Offer & Acquires 61% Stake
NOMURA HOLDINGS: To Offer Year-End Dividend & Raise 2008 Target
SANYO ELECTRIC: To Tender 16.7% of SE Credit's Stake to GE


K O R E A

HYNIX SEMICONDUCTOR: To Invest KRW4.6 Tril. in Production Lines
HYNIX SEMICONDUCTOR: 1Q Profit Below Forecast on Chip Price Drop
HYNIX SEMICONDUCTOR: Expects Chip Prices to Drop 30% in 2nd Qtr.
* SoKor's Watchdog Ends DRAM Probe Due to Scant Evidence


M A L A Y S I A

MALAYSIA AIRLINES: Wants 55 New Planes to Replace Old Aircraft
MYCOM BERHAD: Ends Restructuring Exercise & Resumes Trade Today
OLYMPIA INDUSTRIES: Completes Restructuring Scheme


N E W  Z E A L A N D

ALDA INVESTMENTS: Appoints Terrence John Harris as Liquidator
ALLO ALLO: Taps Robert Laurie Merlo as Liquidator
ALPINE CONSTRUCTION: Creditors' Proofs of Debt Due on April 30
BASE TRAVEL: Undergoes Wind-Up Proceedings
DDL&Z LTD: Wind-Up Petition Hearing Set for April 30

GOLDRUSH GEM: Faces CIR's Liquidation Petition
HELI-FLIGHT (NZ): High Court to Hear Wind-Up Petition on May 3
MULTIMEDIA IMPRESSIONS: Commences Liquidation Proceedings
RED SECURITY: Court Hearing of Wind-Up Petition Set on April 30
UNIPARK AUCKLAND: Will Receive Proofs of Debt Until April 27


P H I L I P P I N E S

SAN MIGUEL: Chalks Up PHP10.17 Billion Net Income for 2006
SAN MIGUEL: Divests Entire Stake in NutriAsia Venture
SECURITY BANK: Names New Vice President and Declares Dividends
VICTORIAS MILLING: Net Income Doubles for Six Months to Feb. 28


S I N G A P O R E

LEONG JOO: Court to Hear Wind-Up Petition on May 4
PETROLEO BRASILEIRO: Wants US Gulf Coast Oil & Gas Assets
SEA CONTAINERS: Court Approves PWC Legal as U.K. Counsel
STATS CHIPPAC: Earns US$17 Million in First Quarter 2007


S R I  L A N K A

* Fitch Affirms Sri Lanka's 'BB-' Ratings with Negative Outlook


T H A I L A N D

DAIMLERCHRYSLER AG: Unions Remain Opposed to Chrysler Sale


V I E T N A M

* S&P Raises Vietnam's Banking Industry Country Risk Assessment


* Fitch Says Global Banking Positive Rating Bias Hits New High
* S&P Says Asian Banking Systems' Financial Stability Improved

     - - - - - - - -

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

BRUCE PETERS: Members Opt for Voluntary Liquidation
---------------------------------------------------
On April 5, 2007, the members of Bruce Peters & Company Pty Ltd
had their general meeting and agreed to voluntarily wind up the
company's operations.

Michael Owen was appointed as liquidator.

The Liquidator can be reached at:

         Michael Owen
         Chartered Accountant
         BDO Kendalls
         Level 18, 300 Queen Street
         Brisbane, Queensland 4000
         Australia

                       About Bruce Peters

Bruce Peters & Company Pty Ltd, which is also trading as Bumpa T
Bumpa, operates miscellaneous retail stores.  The company is
located in Queensland, Australia.


CLINICAL DATA: Names Herman Buis as Dutch Arm's Int'l Sales Head
----------------------------------------------------------------
Clinical Data Inc. disclosed that Vital Scientific N.V., a unit
of its Vital Diagnostics division, has appointed Herman Buis to
the position of International Sales Manager.

Mr. Buis will have responsibility for managing the Vital
Scientific sales organization in Europe and will report to
Sakari Boman, Vital Scientific's Director of Sales and Business
Development.

"We are pleased to add to our team a sales and marketing
executive with Herman's knowledge and expertisem," Mr. Boman
commented.  "Herman brings over twenty years of progressive
management responsibilities with leading diagnostics companies
in international markets.  Herman has in-depth experience in our
market space, and we all believe it will be valuable as we
expand our offerings and enter new territories throughout the
whole world."

"I am pleased to be joining Vital Scientific and look forward to
contributing to the organization's continued success," Mr. Buis
said.  "I trust that my experience and the strong relationships
in the clinical laboratory market should greatly benefit the
Company's growth."

Prior to joining Vital Scientific, Mr. Buis held several sales
and marketing positions for Ortho-Clinical Diagnostics, a
Johnson & Johnson company, and a leading provider of diagnostic
products and services for the global health care community.

                        About Clinical Data

Headquartered in Newton, Massachusetts Clinical Data Inc.
(NASDAQ: CLDA) -- http://www.clda.com/-- provides comprehensive   
molecular and pharmacogenomics services as well as genetic
tests.  The Company has operations in the U.K., France, the
Netherlands, Italy and Australia.

                        Going Concern Doubt

Deloitte & Touche LLP expressed substantial doubt about Clinical
Data Inc.'s ability to continue as a going concern after
auditing the Company's financial statements for the fiscal year
ended March 31, 2006.  The auditing firm pointed to the
Company's accumulated deficit, negative cash flows from
operations and the expectation that the Company will continue to
incur losses in the future.


CROWN CASTLE: Declares Quarterly Preferred Stock Dividend
---------------------------------------------------------
Crown Castle International Corp. disclosed that the quarterly
dividend on its 6.25% Convertible Preferred Stock will be paid
on May 15, 2007 to holders of record on May 1, 2007.

The dividend will be paid in cash at a rate of US$0.781 per
share of Preferred Stock.

                       About Crown Castle

Based in Chatswood, Australia, Crown Castle International Corp.
-- http://www.crowncastle.com/-- engineers, deploys, owns and  
operates shared wireless infrastructure, including extensive
networks of towers.  Crown Castle offers wireless communications
coverage to 68 of the top 100 United States markets and to
substantially all of the Australian population.  Crown Castle
owns, operates and manages over 10,600 and over 1,300 wireless
communication sites in the U.S. and Australia, respectively.

                          *     *     *

Crown Castle carries B1 Corporate Family, B1 Senior Secured,
SGL-2 Liquidity, B1 Probability-of-Default ratings from Moody's
Investor Service.  The company also carries a Loss-Given-Default
assessment of LGD 3 (43%) on the senior secured facility.  The
outlook remains stable.

The company also carries 'BB' corporate credit rating, on
CreditWatch with negative implications, from Standard & Poor's
Ratings Services.


FOOT LOCKER: Offers to Buy Genesco Inc. for US$1.2-Billion Cash
---------------------------------------------------------------
Foot Locker Inc. made an acquisition proposal to purchase all of
the outstanding shares of Genesco Inc. for US$46 per share in
cash, subject to certain terms and conditions.  

The proposal came in a letter that Matthew D. Serra, Foot
Locker, Inc.'s Chairman and CEO, sent on April 4, 2007 to Hal N.
Pennington, Chairman, President and Chief Executive Officer of
Genesco Inc.

On April 19, 2007, Mr. Serra sent a follow-up letter to Mr.
Pennington to reiterate Foot Locker, Inc.'s interest in
acquiring Genesco, Inc. and his belief that the proposal
represents significant value to Genesco shareholders.  The
proposed purchase price of US$46 per share in cash represents a
total consideration of approximately US$1.2 billion for all of
the equity of Genesco.  This proposal provides to Genesco Inc.'s
shareholders a 26% premium to the average share price during the
one-year period preceding the April 4, 2007 letter.

                         About Genesco Inc.

Headquartered in Nashville, Tennessee, Genesco Inc. (NYSE:GCO)
-- http://www.genesco.com/-- retails branded footwear, licensed  
and branded headwear, and wholesaler of branded footwear.  Its
business segments include Journeys, Underground Station Group,
Hat World, Johnston & Murphy, and Licensed Brands.  

As of June 9, 2006, it operated a total of 1,773 stores: 1,755
stores throughout the United States and Puerto Rico, and 18
stores in Canada.

                        About Foot Locker

Headquartered in New York, Foot Locker, Inc. (NYSE: FL) ---
http://www.footlocker-inc.com/-- retails athletic footwear and  
apparel, operated 3,942 primarily mall-based stores in the
United States, Canada, the Netherlands, Australia, and New
Zealand as of Feb. 3, 2007.


FOOT LOCKER: Moody's May Downgrade Ba1 Ratings Over Genesco Bid
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Foot Locker Inc.
on review for possible downgrade following the company's
announcement that it had made an unsolicited proposal to
purchase all of the outstanding shares of Genesco Inc. for US$46
per share cash representing a total consideration of around
US$1.2 billion.

These ratings are placed on review for possible downgrade:

    * Corporate Family Rating of Ba1;
    * Probability-of-Default rating of Ba1; and
    * Senior unsecured notes rating of Ba1.

The senior unsecured notes current LGD assessment of LGD4-60% is
subject to change as a result of the review for possible
downgrade.

The review is prompted by the high likelihood that the
acquisition, if successful, will be predominantly financed with
debt and will result in a sizable increase in the pro forma
company's leverage and a corresponding weakening in credit
metrics.  In addition the review is prompted by the apparent
change that this action signals to the company's financial
policy, which had historically viewed as relatively conservative
and stable by Moody's and had supported the current Ba1
corporate family rating.  

The review will focus on the pro forma company's capital
structure and debt protection measures post transaction; its
financial policies, including its risk appetite for acquisitions
and liquidity; and the pro forma company's ability to manage its
expected higher debt burden.  If the bid is unsuccessful, the
review for possible downgrade will assess
Foot Locker's appetite for leverage and future debt financed
growth strategies.

Genesco Inc., headquartered in Nashville, Tennessee, operates
2,009 footwear and headwear stores throughout the United States
and in Puerto Rico and Canada.  In addition, Genesco also is a
wholesaler of branded footwear.  Revenues for the fiscal year
ended Feb. 3, 2007 were approximately $1.5 billion.  Pro
forma revenues of the combined companies would be approximately
US$7.2 billion.

Headquartered in New York, Foot Locker, Inc. (NYSE: FL) ---
http://www.footlocker-inc.com/-- retails athletic footwear and  
apparel, operated 3,942 primarily mall-based stores in the
United States, Canada, the Netherlands, Australia, and New
Zealand as of Feb. 3, 2007.


FOOT LOCKER: S&P Keeps BB+ Rating on Watch on Genesco Buy Move
--------------------------------------------------------------
Standard & Poor's Ratings Services' ratings, including the 'BB+'
corporate credit rating, on Foot Locker Inc. remain on
CreditWatch with negative implications following the company's
announcement that it has launched a bid to acquire Genesco Inc.

"Because Standard & Poor's expects that a significant portion of
the US$1.2 billion acquisition price could be funded with debt,"
said Standard & Poor's credit analyst David Kuntz, "this would
result in a deterioration of Foot Locker's credit metrics and a
likely downgrade."  At the same time, Standard & Poor's placed
the ratings (including the 'BB-' corporate credit rating) for
Genesco on CreditWatch with developing implications.  Standard &
Poor's will continue to monitor the ratings as details of the
transaction become available.

                        About Foot Locker

Headquartered in New York, Foot Locker, Inc. (NYSE: FL) ---
http://www.footlocker-inc.com/-- retails athletic footwear and  
apparel, operated 3,942 primarily mall-based stores in the
United States, Canada, the Netherlands, Australia, and New
Zealand as of Feb. 3, 2007.


GENERAL CABLE Completes Tender Offer for US$285-Million Notes
----------------------------------------------------------------
General Cable Corp. has completed of cash tender offer for its
US$285-million 9.5% Senior Notes due 2010.

The Offer expired at midnight, New York City time, on April 2,
with approximately US$280.1 million in aggregate principal
amount of the Notes tendered and accepted for purchase,
representing approximately 98% of the outstanding Notes.  An
aggregate principal amount of approximately US$4.9 million of
Notes remain outstanding.

The around US$280.0 million in aggregate principal amount of the
Notes which were validly tendered as of 5:00 p.m., New York City
time, on March 15, 2007 were redeemed as of March 21, 2007.

After the Consent Expiration, an additional US$0.1 million in
aggregate principal amount of the Notes was validly tendered as
of the Expiration Time, which will be redeemed on or about
April 5, 2007.

Goldman, Sachs & Co. served as the sole dealer manager for the
Offer.

                       About General Cable

Headquartered in Highland Heights, KY, General Cable Corp. --
http://www.generalcable.com/-- makes aluminum, copper, and  
fiber-optic wire and cable products.  Brand names include Carol
and Brand Rex.  It also produces power cables, automotive wire,
mining cables, and custom-designed cables for medical equipment
and other products.

The company also operates in France, Turkey, Spain, Portugal,
Norway, China, Australia, New Zealand, Brazil, Angola, Dominican
Republic, Mexico, and Canada.

                          *     *     *

In a TCR-Europe report on March 13, Moody's Investors Service
assigned a rating of B1 to the proposed US$325 million senior
unsecured notes of General Cable Corporation consisting of $125
million of floating rate notes and US$200 million fixed rate
notes.  Concurrently, Moody's affirmed all other ratings for
this issuer.  The rating outlook remains stable.


GENERAL CABLE: Q1 2007 Results Discussion Slated for May 2
----------------------------------------------------------
General Cable Corp. will Web cast a discussion of its first
quarter 2007 earnings at 8:30 a.m. E.T. on May 2.

Chief Executive Officer Gregory B. Kenny and Chief Financial
Officer Brian J. Robinson will discuss the first quarter
results.  The news release detailing the results will be issued
after the market closes on May 1, 2007.

                       About General Cable

Headquartered in Highland Heights, KY, General Cable Corp. --
http://www.generalcable.com/-- makes aluminum, copper, and  
fiber-optic wire and cable products.  Brand names include Carol
and Brand Rex.  It also produces power cables, automotive wire,
mining cables, and custom-designed cables for medical equipment
and other products.

The company also operates in France, Turkey, Spain, Portugal,
Norway, China, Australia, New Zealand, Brazil, Angola, Dominican
Republic, Mexico, and Canada.

                          *     *     *

In a TCR-Europe report on March 13, Moody's Investors Service
assigned a rating of B1 to the proposed US$325 million senior
unsecured notes of General Cable Corporation consisting of $125
million of floating rate notes and US$200 million fixed rate
notes.  Concurrently, Moody's affirmed all other ratings for
this issuer.  The rating outlook remains stable.


GENERAL PRACTICE: Will Declare Final Dividend on June 15
--------------------------------------------------------
General Practice Divisions Of Western Australia Limited, which
is in liquidation, will declare a final dividend on June 15,
2007.

Creditors who cannot prove their debts by May 8, 2007, are
excluded from sharing in the company's dividend distribution.

The company's liquidator is:

         Simon Read
         PPB
         Level 1, 5 Mill Street
         Perth, Western Australia 6000
         Australia

                     About General Practice

General Practice Divisions Of Western Australia Ltd is involved
with the administration of general economic programs.  The
company is located in Western, Australia, Australia.


IMPRENTA PTY: Annual & Final Meeting Set for May 18
---------------------------------------------------
The members and creditors of Imprenta Pty Ltd will have their
final and annual meeting on May 18, 2007, at 10:30 a.m., to hear
the liquidator's report about the company's wind-up proceedings
and property disposal.

The company's liquidator is:

         G. M. Rambaldi
         Pitcher Partners
         Level 19, 15 William Street
         Melbourne, Victoria 3000
         Australia

                       About Imprenta Pty

Located in Victoria, Australia, Imprenta Pty Ltd is involved
with commercial printing.


LIB MANAGEMENT: Members' Final Meeting Set for May 21
-----------------------------------------------------
The members of Lib Management Pty Ltd will have their final
meeting on May 21, 2007, at 9:30 a.m. to hear the liquidator's
report about the company's wind-up proceedings and property
disposal.

As reported by the Troubled Company Reporter - Asia Pacific, the
company was placed under members' voluntary liquidation on
Aug. 14, 2006.

The company's liquidator is:

         Michael Owen
         BDO Kendalls
         Level 18, 300 Queen Street
         Brisbane, Queensland 4000
         Australia

                      About Lib Management

Located in Queensland, Australia, Lib Management Pty Ltd
provides business services.


MAFRAQ PTY: Undergoes Wind-Up Proceedings
-----------------------------------------
On April 2, 2007, the members of Mafraq Pty Ltd had their
general meeting and decided to voluntarily wind up the company's
operations.

Gerard Alphonsus Liddy was appointed as liquidator.

Mr. Liddy can be reached at:

         Gerard Alphonsus Liddy
         Liddy Kennelly, Chartered Accountants
         99 Sutton Street, Redcliffe
         Australia

                        About Mafraq Pty

Mafraq Pty Ltd, which is also trading as Caboolture Building
Supplies, operates hardware stores.  The company is located in
Queensland, Australia.


MAPLELODGE PTY: Will Declare Dividend on May 22
-----------------------------------------------
Maplelodge Pty Ltd, which is in liquidation, will declare a
first and final dividend for its preferred employee creditors on
May 22, 2007.

Creditors are required to file their proofs of debt by May 8,
2007, to be included in the company's dividend distribution.

The company's liquidators are:

         Terry Grant Van Der Velde
         Paul Desmond Sweeney
         SV House, 138 Mary Street
         Brisbane, Queensland 4000
         Australia

                      About Maplelodge Pty

Maplelodge Pty Ltd, which is also trading as Durostyle, is a
distributor of durable goods.  The company is located in
Queensland, Australia.


MAYDOWN PTY: Members Agree to Voluntary Wind-Up
-----------------------------------------------
At an extraordinary general meeting held on April 2, 2007, the
members of Maydown Pty Ltd agreed to voluntarily wind up the
company's operations.

Christopher Munday was appointed as liquidator.

The Liquidator can be reached at:

         Christopher Munday
         c/o Pitcher Partners
         Chartered Accountants
         17th Level, AMP Building
         140 St Georges Terrace
         Perth, Western Australia 6000
         Australia
         Telephone:(08) 9322 2022
         Facsimile:(08) 9322 1262

                        About Maydown Pty

Maydown Pty Ltd is a manufacturer of curtains and draperies.  
The company is located in Western Australia, Australia.


ROXBURGH HOLDINGS: Placed Under Members' Voluntary Liquidation
--------------------------------------------------------------
At a general meeting held on March 30, 2007, the members pf
Roxburgh Holdings Pty Ltd agreed to voluntarily liquidate the
company's business.

The company's liquidator is:

         Sinclair Wilson
         Accountants & Business Advisors
         177 Koroit Street
         Warrnambool, Victoria 3280
         Australia

                    About Roxburgh Holdings

Roxburgh Holdings Pty Ltd, which is also trading as The Abbey
Restaurant Reception Convention & Catering Centre, operates
restaurants.  The company is located in South Australia,
Australia.


VICTORIAN CORPORATE: Final Meetings Set for May 17
--------------------------------------------------
The members and creditors of Victorian Corporate Protection
Group Pty Ltd will have their final meetings on May 17, 2007, at
10:30 a.m., to receive a report about the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         B. A. Secatore
         Cor Cordis Chartered Accountants
         406 Collins Street
         Melbourne, Victoria 3000
         Australia

                   About Victorian Corporate

Victorian Corporate Protection Group Pty Ltd provides detective,
guard and armored car services.  The company is located in
Victoria, Australia.


YATES PLUMBING: Members & Creditors to Receive Wind-Up Report
-------------------------------------------------------------
The members and creditors of Yates Plumbing & Drainage Pty Ltd
will have a meeting on May 4, 2007, at 9:00 a.m.

At the meeting, the members and creditors will be asked to:

   -- receive the liquidator's final receipts and payments;

   -- receive the formal notice of the end of the
      administration; and

   -- discuss other business that may be considered with the
      foregoing.

The company's liquidator is:

         Michael Griffin
         Worrells Solvency & Forensic Accountants
         8th Floor, 102 Adelaide Street
         Brisbane, Queensland 4000
         Australia
         Telephone:(07) 3225 4326
         Facsimile:(07) 3225 4311
         Web-site: http://www.worrells.net.au

                      About Yates Plumbing

Yates Plumbing & Drainage Pty Ltd provides plumbing, heating and
air-conditioning services.  The company is located in
Queensland, Australia.


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

BANK OF COMM: Shanghai IPO Subscription Reaches CNY1.45 Trillion
----------------------------------------------------------------
Bank of Communications has attracted CNY1.455 trillion in
subscription applications for its Shanghai IPO, various reports
say.

According to the China Securities Journal, about
CNY1.155 trillion in applications came from institutions and
about CNY300 billion was generated on the retail side from both
institutional and retail investors.

In an earlier statement, the said that up to 3.19 billion
A-shares will be issued, representing 6.51% of its enlarged
share capital, with up to 957.1 million A-shares to be sold to
strategic investors and up to CNY797.58 million to be sold to
institutional investors.

Bank of Communications will raise US$3.3 billion after pricing
shares at CNY7.90 each, a 4.8% discount to its Hong Kong-traded
stock, Bloomberg News relates, citing unnamed sources.

Citic Securities Co., China Galaxy Securities Co. and Haitong
Securities arranged the bank's share sale.  Goldman Sachs Group
Inc.'s China joint venture served as its financial adviser.

                          *     *     *

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

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

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


HONG KONG PEARL RIVER: Creditors' Proofs of Debt Due on May 23
--------------------------------------------------------------
The creditors of Hong Kong Pearl River Delta Foundation Limited
are required to file their proofs of debt by May 23, 2007, to be
included in the company's dividend distribution.

The company's liquidator is:

         Yan Tat Wah
         Rooms 510-511, 5th Floor
         Nan Fung Tower, 173 Des Voeux Road, Central
         Hong Kong


JP MANAGEMENT: High Court to Hear Wind-Up Petition on May 23
------------------------------------------------------------
On March 20, 2007, Kwok Kam Hung filed a petition to wind up the
operations of JP Management Limited.

The petition will be heard before the High Court of Hong Kong on
May 23, 2007, at 9:30 a.m.


JUSLIN HONG KONG: Taps Anthony Nedderman as Liquidator
------------------------------------------------------
On April 13, 2007, the members of Juslin Hong Kong Limited had
their meeting and resolved to voluntarily wind up the company's
operations.

Anthony Nedderman was appointed as liquidator.

The Liquidator can be reached at:

         Anthony Nedderman
         11th Floor, China Hong Kong Tower
         8 Hennessy Road
         Hong Kong


MARBRIDGE GROUP: Wind-Up Petition Hearing Set on May 30
-------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Marbridge Group (HKG) Limited on May 30, 2007, at
9:30 a.m.

The petition was filed Allen & Overy on March 22, 2007.


MCM DESIGN: Members' & Creditors' Meeting Set for May 28
--------------------------------------------------------
The members and creditors of MCM Design & Contracting Limited
will have their final meeting on May 28, 2007, at 10:00 a.m., to
receive the liquidator's report about the company's wind-up
proceedings and property disposal.

The meeting will be held in Room 1102, 11th Floor, Henan
Building at 90 Jaffe Road in Wanchai, Hong Kong.


OPENET INFORMATION: Creditors' Proofs of Debt Due on May 19
-----------------------------------------------------------
Openet Information Technology Co. Limited, which is in voluntary
liquidation, requires its creditors to file their proofs of debt
by May 19, 2007.

Creditors who cannot prove their claims by the deadline will be
excluded from sharing in the company's dividend distribution.

The company's liquidator is:

         Chak Chun Keung Thomas
         Room 603, Alliance Buildsing
         130-136 Connaught Road Central
         Hong Kong


PHYSICAL SPA: Moores Rowland Raises Going Concern Doubt
-------------------------------------------------------
Moores Rowland Mazars in Hong Kong, expressed substantial doubt
about Physical Spa & Fitness Inc.'s ability to continue as a
going concern after auditing the company's financial statements
for the year ended Dec. 31, 2006.  The auditing firm pointed to
the company's negative working capital and capital deficiency at
Dec. 31, 2006, and incurred losses posted for the year then
ended.

As of Dec. 31, 2006, the company's balance sheet showed solvency
problem with total assets of US$28,866,000 and total liabilities
of US$35,632,000, resulting to a shareholders' deficit of
US$6,766,000.

In addition, as at Dec. 31, Physical Spa's balance sheet also
reflected strained liquidity with current assets of US$9,776,000
available to pay current liabilities of US$24,918,000.

Physical Spa posted a net loss of US$4,997,000 on US$56,343,000
of revenues in the financial year ended Dec. 31, 2006, compared
with a net loss of US$56,800,000 on US$444,416,000 of revenues
in 2005.

                        About Physical Spa

Physical Spa & Fitness Inc., through its subsidiaries, operates
fitness and spa centers in Hong Kong and the People's Republic
of China.  The Company currently operates seventeen facilities:
thirteen in Hong Kong and four in China, including one in Macau,
under the name "PHYSICAL", with the exception of Renaissance
Beauty Centre.


SHENZHEN DEV: 1Q Profit Doubles on Increased Loans and Revenue
--------------------------------------------------------------
Shenzhen Development Bank's first-quarter profit more than
doubled as it increased loan margins and boosted revenue with
new products, China Knowledge reports, citing the bank's
statement.

Using the Mainland accounting standards, China Knowledge notes
that the bank's net income climbed to CNY535 million from
CNY233 million a year earlier.  

China Knowledge relates that the Mainland raised lending rates
three times in the past year while deposit rates rose only
twice, making loans more profitable for banks.

Meanwhile, net interest income surged 44% to CNY2.14 billion in
the quarter.  Interest income accounted for about 90% of
Shenzhen Development Bank's operating income in the period.

Shenzhen Development Bank's retail loans, mainly mortgages,
jumped 95% in the first quarter from a year earlier.  Total
lending increased 19% in the first quarter from a year earlier,
without providing a first-quarter figure for deposits, the
report says.

The bank's capital adequacy ratio (a measure of financial
strength) climbed to 3.8% as of March 31 from 3.7% as at the end
of last year, falling short of the government-mandated 8%.  Its
bad-loan ratio stood at 7.68% as at the end of last month, down
from 7.99% at the end of last year, the report adds.

                          *     *     *

Based in Shenzhen, Guangdong, People's Republic of China,
Shenzhen Development Bank Company Ltd's --
http://www.sdb.com.cn/-- principal activities are the provision  
of local and foreign currency deposits and loan services.  Other
activities include foreign currencies exchanging, foreign
currency deposit and remittances, acts as an agent for issuing
foreign currency value-bearing securities, management of letters
of credit and operation of both an international and a domestic
discounting service.

The Troubled Company Reporter - Asia Pacific reported that Fitch
Ratings, on August 14, 2006, affirmed Shenzhen Development
Bank's individual 'D/E' and support '4' ratings.

The bank carries Moody's Ba3 rating for its long-term bank
deposits and a NP short-term rating both effective on September
21, 1998.  The bank also carries Moody's E+ bank financial
strength rating effective on April 12, 2001.



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


BRITISH AIRWAYS: Mulls Consortium Offer for Iberia Lineas Stake
---------------------------------------------------------------
British Airways plc is considering how to use its 10% holding in
Iberia Lineas Aereas de Espana SA.

As part of this process, the airline has approached a number of
private equity companies about making a consortium offer for
Iberia.  Any consortium bid would not involve further capital
investment by British Airways.  As well as a private equity
partner, this consortium is likely to include one or more
Spanish partners.

British Airways has not made a final decision about the future
of its shareholding in Iberia and continues to examine numerous
options including full disposal.  However, it has ruled out an
independent bid for the airline.

As previously reported in the TCR-Europe on April 5, British
Airways has decided to appoint UBS AG to advise on how to use
its 10% holding in Iberia in the best interests of shareholders.

The move came after Iberia disclosed that it has received a bid
approach from private equity firm Texas Pacific Group.

According to the report, TPG is considering a cash offer of
EUR3.60 a share, which values Iberia at EUR3.4 billion (US$4.5
billion.

                     About British Airways

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and   
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited.  BA has offices in India and Guatemala.

                        *     *     *

Moody's Investors Service's confirmed its Ba1 Corporate Family
Rating for British Airways Plc.  

In March 2007, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit rating on British Airways PLC
remains on CreditWatch, with positive implications, following a
vote on March 22 by EU ministers approving a proposed "open
skies" aviation treaty with the U.S.


BRITISH AIRWAYS: Appoints Julia Simpson as Communications Head
--------------------------------------------------------------
British Airways plc has appointed Julia Simpson as Head of
Corporate Communications with effect from August 2007.  

Ms. Simpson will report to Chief Executive, Willie Walsh.  She
will be responsible for corporate media relations, the newsdesk
and internal communications.

"British Airways is one of the U.K.'s highest profile business
brands, Mr. Walsh said.  "This is one of the most important jobs
in communications and we are delighted that Julia is joining us.  
Her background and experience are exactly what we need given the
wide-ranging communications agenda that we have over the medium
term."

Thomas Coops has agreed to continue as Head of Corporate and
Media Relations until the end of July to ensure a smooth
transition.

                      About British Airways

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and   
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited.  BA has offices in India and Guatemala.

                        *     *     *

Moody's Investors Service's confirmed its Ba1 Corporate Family
Rating for British Airways Plc.  

In March 2007, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit rating on British Airways PLC
remains on CreditWatch, with positive implications, following a
vote on March 22 by EU ministers approving a proposed "open
skies" aviation treaty with the U.S.


ESSAR OIL: Net Loss Narrows to INR555.8 Million in FY 2006
----------------------------------------------------------
Essar Oil Limited recorded a net loss of INR555.9 million for
the financial year ended March 31, 2007, a 41% decrease from the
INR936.8 million net loss incurred a year ago.

The company narrowed its loss despite decreased revenues --
INR4.8 billion total income in the financial year ended March
31, 2007, compared to INR6.9 billion in FY2005-06.  With
decreased revenues, the company's operating expenses dropped by
32% to INR5.2 billion in FY2006-07 bringing an operating loss of
INR396.7 million.  The company booked an operating loss of
INR662.5 million in the prior year.

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

               http://ResearchArchives.com/t/s?1df7

Essar Oil recorded a net profit of INR9.9 million for the
quarter ended March 31, 2007, a turnaround from the
INR378.4 million net loss booked in the corresponding quarter
last year.

The company's sales soared from INR816.4 million in the quarter
ended March 31, 2006, to INR2.7 billion in the current quarter
under review.  Other income also increased from INR9.8 million n
the March 2006 quarter to INR29 million in the March 2007
quarter.

For the March 2007 quarter, Essar Oil's operating expenses more
than doubled to INR2.6 billion, bringing the operating profit to
INR47.6 million.

A copy of Essar Oil's financial results for the quarter ended
March 31, 2007, is available for free at:

                http://ResearchArchives.com/t/s?1df6

Headquartered in Gujarat, India, Essar Oil Limited --
http://www.essar.com/-- is a fully integrated oil company of    
international size and scale, covering the entire value chain
from exploration and production to refining and retailing of
oil.  Essar has set up over 900 retail outlets, which are fully
operational and plans to set up 2500 retail outlets by the end
of 2007.  Essar Oil employs highly qualified and experienced
technical staff at its refinery.

                          *     *     *

On Aug. 23, 2005, CRISIL Ratings reaffirmed the outstanding
"D" rating on the INR5.65-billion and INR2-billion Non-
Convertible Debenture programmes of Essar Oil Limited.  The
rating indicates that the instruments are in default.


ESSAR OIL: Expects Full Production at Vadinar Refinery by Oct.
--------------------------------------------------------------
Essar Oil Limited will run its petroleum refinery in Vadinar,
Gujarat, in full capacity by October, the Press Trust of India
reports citing a company official.  Essar Oil originally
anticipated attaining production at full capacity by June.

Reuters, citing an unnamed company official, says the company
missed the target because of a delay in sourcing equipment for
fluid catalytic cracker and diesel hydrotreater.

The company will take a 30-day shutdown in July to integrate
units like FCC unit and diesel hydrotreater, PTI quotes its
source as saying.  "After integration, the refinery will come
back on stream and new units will be progressively commissioned
to see that the refinery achieves full design capacity as soon
as possible," the official adds.

As reported in the Troubled Company Reporter - Asia Pacific in
November 2006, Essar Oil started trial production at the
refinery with 7.5 million tones per annum of crude, which the
company intends to increase gradually to 10.5 million tones per
year.  The refinery project cost the company INR10,826 crore or
US$2.4 billion.

Essar says the refinery will have the capability to produce
petrol and diesel suitable for use in India as well as advanced
international markets.  It will also produce LPG, Naphtha, light
diesel oil, aviation turbine fuel and kerosene.  It has been
designed to handle a diverse range of crude -- from sweet to
sour and light to heavy.

Essar plans to invest INR3,000 crore to expand the Vadinar
refinery to 16 million tonnes a year capacity by 2010, PTI
relates.

Headquartered in Gujarat, India, Essar Oil Limited --
http://www.essar.com/-- is a fully integrated oil company of    
international size and scale, covering the entire value chain
from exploration and production to refining and retailing of
oil.  Essar has set up over 900 retail outlets, which are fully
operational and plans to set up 2500 retail outlets by the end
of 2007.  Essar Oil employs highly qualified and experienced
technical staff at its refinery.

                          *     *     *

On Aug. 23, 2005, CRISIL Ratings reaffirmed the outstanding
"D" rating on the INR5.65-billion and INR2-billion Non-
Convertible Debenture programmes of Essar Oil Limited.  The
rating indicates that the instruments are in default.

Essar Oil recorded a net loss of INR555.9 million for the
financial year ended March 31, 2007, a 41% decrease from the
INR936.8 million loss incurred in FY2005-06.


HDFC BANK: Earns INR3.44 Bil. Profit in Quarter Ended March 31
--------------------------------------------------------------
HDFC Bank Ltd has filed with the Bombay Stock Exchange its
financial results for the quarter and year ended
March 31, 2007.

For the quarter ended March 31, 2007, the bank posted a net
profit of INR3.44 billion, a 31% rise from the INR2.63 billion
profit booked in the same quarter last year.  The bank's total
income increased from INR16.83 billion in the March 2006
quarter, to INR23.84 billion in the same quarter 2007.

The bank's operating expenses for the March 2007 quarter totaled
INR6.84 billion.  According to the bank, the figure includes
INR896.70 million for professional fees and INR529.80 million
for depreciation on its property.

A copy of the bank's unaudited financial results for the quarter
ended March 31, 2007, is available for free at:

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

The bank's audited results for the year ended March 31, 2007,
shows a net profit of INR11.41 billion, a 131% increase from the
INR8.71 billion profit recorded in the year ended March 31,
2006.  Total income increased from INR55.99 billion in FY2005-06
to INR84.05 billion in FY2006-07.

A copy of the bank's audited financial results for the year
ended March 31, 2007, is available for free at:

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

The bank's board of directors has recommended dividend of
INR7.00 per equity share of INR10 each (i.e. 70%) for the year
ended March 31, 2007.

Headquartered in Mumbai, India, HDFC Bank Limited --
http://www.hdfcbank.com/-- is a private sector bank that offers    
a range of commercial and transactional banking services and
treasury products to wholesale and retail customers.  The bank
operates in three segments: retail banking, wholesale banking
and treasury services.  The retail banking segment serves retail
customers through a branch network and other delivery channels.
The wholesale banking segment provides loans and transaction
services to corporate and institutional customers.  The treasury
services segment undertakes trading operations on the
proprietary account, foreign exchange operations and derivatives
trading.

Fitch Ratings, on June 1, 2005, gave HDFC Bank a 'C' individual
rating.


HMT LTD: Government Approves Subsidiary's Revival Plans
-------------------------------------------------------
HMT Ltd informs the Bombay Stock Exchange that the government of
India has approved the Revival Plans of its subsidiary, HMT
Machine Tools Ltd.

Pursuant to the Revival Plans, the subsidiary will seek these
financial support, waivers and concessions from the government:

1. Cash injection of INR723 crore in the form of:

      i. 3.5% Preference Share Capital to the extent of
         INR443 crore redeemable after three years to be
         utilized for:
      
            -- repayment of Voluntary Retirement Scheme-related    
               loans;

            -- repayment of long term loans: and

            -- discharge of earlier liabilities on interest
               payment met from the working capital;

     ii. Equity Share Capital infusion to the extent of INR180
         crore towards capital expenditure, training and
         retraining, and technological acquisition and upgrade;
         and

    iii. Special non-plan loan for VRS to the extent of INR100
         crore.

2. Conversion of Government loan into equity amounting to
   INR122.64 crore.

3. Waiver of interest on loans amounting to INR35.16 crore.

4. To take steps for joint venture formation (with majority
   shareholding being held by JV partner) at the earliest and to
   synchronize the process with the proposed merger of Praga
   Tools Ltd, another subsidiary.

As of March 31, 2007, the company received the funds to the
extent of INR563 crore:

   I. Application Money for allotment of 3.5% Preference Share
      Capital redeemable after 3 years: INR443 crore

  II. Application money for allotment of Equity Share capital

         a. Capital Expenditure: INR90 crore

         b. Technological acquisition and upgrade: INR20 crore

         c. Training and Retraining: INR10 crore

To facilitate the issue of shares to the government in exchange
for funds received, HMT's board of directors has approved the
increase in the company's authorized share capital.

HMT Limited -- http://www.hmtindia.com/-- is a public sector    
engineering conglomerate.  The company retains the Tractor's
Business, which develops tractors ranging from 25 horsepower to
75 horsepower.  It has an installed capacity of 18,000 tractors
for manufacturing and assembly operations.  The company has
three tractor manufacturing units in India located at Pinjore in
Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh.  The
subsidiaries of the company include HMT Machine Tools Limited,
HMT Watches Limited, HMT Chinar Watches Limited, HMT
(International) Limited, HMT Bearings Limited and Praga Tools
Limited.  The principal segments include Machine tools, Watches,
Tractors, Bearings and Exports.  The company has a Joint Venture
with SUDMO HMT Process Engineers (India) Limited, Bangalore.

Credit Analysis and Research Limited downgraded HMT's long-term
bond issue of INR310 crore to CARE BB(SO) on Feb. 18, 2005.
At the same time, the company's medium term bond issue of
INR40.40 crore was likewise downgraded to CARE BB(SO).
Instruments rated 'Double B' are considered to be speculative,
with inadequate protection for interest and principal payments.


HMT LIMITED: Provides BSE with on Subsidiaries
----------------------------------------------
In a filing with the regulatory Bombay Stock Exchange, HMT Ltd
gave updated on its subsidiaries:

1. During financial year 2006-07, the machine tool subsidiary of
   HMT Limited developed new machines to meet the burgeoning
   demand from defense, auto and auto ancillary sectors.  New
   product development initiatives have been taken up in the
   tractor and watch business.  HMT (International) bagged the
   order for setting up of SME Training Centre at Zimbabwe and
   would focus on the project and services business apart from
   export of Company's range of engineering goods.

2. HMT and subsidiaries have formulated comprehensive revival
   plans aimed at improved performance and growth.  The revival
   plan proposals of HMT Bearings Ltd and Praga Tools Ltd have
   been approved by the government and are under implementation.  
   The revival plan in respect of HMT Machine Tools Ltd has been
   sanctioned by the government.  The total financial package of
   INR880 crore comprises financial support from GOI in the form
   of preference and equity share capital for meeting capital
   expenditure for modernization of the plants, training and re-
   training of the employees, technology acquisition and
   discharge of long term liabilities of the Company which will
   result in higher productivity of the plants and cost saving
   in the interest burden and help the Company become
   competitive in the market which has been registering an
   annual growth rate of 25% to 30% during the last three years.

3. The revival plan proposals of the company and HMT Watches Ltd
   have been submitted to the government and are awaiting
   approval.

4. The machine tool subsidiary achieved a turnover of INR263
   crores, registering a growth of 7%.  The tractor business of
   the company recorded a turnover of INR228 crore while the
   watch subsidiary registered turnover of INR44 crore.  HMT
   (International) and the Bearings Subsidiary recorded turnover
   of INR31 crore and INR30 crore respectively.  The company and
   the subsidiaries are targeted to achieve sales of INR928
   crore during 2007-08.

HMT Limited -- http://www.hmtindia.com/-- is a public sector    
engineering conglomerate.  The company retains the Tractor's
Business, which develops tractors ranging from 25 horsepower to
75 horsepower.  It has an installed capacity of 18,000 tractors
for manufacturing and assembly operations.  The company has
three tractor manufacturing units in India located at Pinjore in
Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh.  The
subsidiaries of the company include HMT Machine Tools Limited,
HMT Watches Limited, HMT Chinar Watches Limited, HMT
(International) Limited, HMT Bearings Limited and Praga Tools
Limited.  The principal segments include Machine tools, Watches,
Tractors, Bearings and Exports.  The company has a Joint Venture
with SUDMO HMT Process Engineers (India) Limited, Bangalore.

Credit Analysis and Research Limited downgraded HMT's long-term
bond issue of INR310 crore to CARE BB(SO) on Feb. 18, 2005.
At the same time, the company's medium term bond issue of
INR40.40 crore was likewise downgraded to CARE BB(SO).
Instruments rated 'Double B' are considered to be speculative,
with inadequate protection for interest and principal payments.


GENERAL MOTORS: FSA Okays Common Stock Delisting from LSE
---------------------------------------------------------
The Financial Services Authority in the U.K. has authorized
shares of General Motor Corp.'s US$1-2/3 Par Value Common Stock
to be delisted from trading on the London Stock Exchange at the
opening of trading on the LSE on Monday, May 21.

The request by GM for delisting on the LSE is part of GM's plan
to concentrate the trading of its shares on the NYSE, to
eliminate the listing fees charged by other exchanges, and to
avoid multiple regulatory schemes that govern corporations whose
shares are traded on exchanges located in more than one
jurisdiction.  GM recently delisted its shares from the Toronto,
Pacific, Chicago and Philadelphia Stock Exchanges in North
America and the Frankfurt and Dusseldorf Exchanges in Germany.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the  
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 284,000
people around the world.  It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries.  GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.

                          *     *     *

In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006.  S&P said
the outlook is negative.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
company's US$1.5 billion secured term loan.


NOVELL INC: Will Incur Addt'l. Stock-Based Compensation Expense
---------------------------------------------------------------
Novell Inc. filed an update of its ongoing review of the
company's stock-based compensation expense and related potential
accounting impact, in an 8-K filing dated April 19, 2007, with
the Securities and Exchange Commission.  

Based on preliminary findings, the Audit Committee of Novell's
Board of Directors engaged independent outside legal counsel to
assist with the conduct of the review.  As a result of the
ongoing review, Novell delayed the filing of its Quarterly
Reports on Form 10-Q for the fiscal quarters ended July 31,
2006, and Jan. 31, 2007, and its Annual Report on Form 10-K for
the fiscal year ended Oct. 31, 2006.

Novell Inc. reports that the investigatory portion of the
review, which is now substantially complete, has not identified
any intentional wrongdoing by any former or current Novell
employees, officers or directors.  

Management believes, however, based on the findings of the
review thus far, together with the assistance of management's
separately retained outside legal counsel and forensic
accounting firm, that Novell utilized incorrect measurement
dates for some of the stock-based compensation awards granted
during the review period, Nov. 1, 1996, through Sept. 12, 2006.  
As such, Novell will need to revise the measurement dates
utilized for these awards for financial accounting and reporting
purposes and will be required to recognize additional stock-
based compensation expense as a result.

As of April 19, 2007, Novell has not yet determined with
finality the amount of the stock-based compensation charges that
will result from the adjustment in measurement dates, the
resulting tax and accounting impact of such charges, or the
impact of such charges on its previously issued financial
statements.

Novell and its advisers continue to work diligently on the
review and the company will disclose the results once the review
is completed.  At this time, however, Novell is not in a
position to predict when the review will be completed.

Headquartered in Waltham, Mass., Novell, Inc. (Nasdaq: NOVL) --
http://www.novell.com/-- delivers Software for the Open    
Enterprise.  With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.

The company has offices in Australia, Argentina, Brazil, China,
Hong Kong, India, among others.

                          *     *     *

Novell, Inc.'s Subordinated Debt carries Moody's Investors
Service's 'B1' rating.


* Moody's Says India's Economy Needs to Boost Output Capacity
-------------------------------------------------------------
The classic signs of an overheating economy increasingly visible
in India can only be addressed through far-reaching structural
reforms to boost productive capacity, according to Moody's
Investors Service.

"The pursuit of macroeconomic stability by India's monetary
authorities is at a critical phase, and is important not only
from a business, policy, and political perspective, but also for
ensuring the long-term sustainability of public finances," said
Moody's Vice President Kristin Lindow.  "We are cautiously
optimistic that deep-seated political hurdles can be overcome to
achieve fundamental progress in this area, which is the
rationale for our stable rating outlook."

To date, said Lindow, most of the improvement in the government
accounts has been cyclical or attributable to ample global
liquidity.  The more manageable external debt position and
strong external liquidity is reflected, she said, in Moody's
investment-grade Baa3 foreign currency issuer rating for the
government and Baa2 foreign currency country ceiling, despite
widening current account deficits.

She pointed to the current signs of overheating, including
higher-than-acceptable inflation, a growing merchandise trade
deficit, still-high rates of domestic credit growth, and, most
recently, rapid rupee appreciation driven mainly by strong
capital account inflows.

"Such trends are neither transitory nor coincidental, nor are
they independent from one another," said the analyst.  "Rather,
they are the result of a structural shortfall in the absorptive
capacity of India's economy."

She said the credit policy announcement earlier this week by the
country's central bank, the Reserve Bank of India, indicates a
heightened level of concern about its ability to restrain
aggregate demand and thus avoid exacerbating strains on the
economy's output potential.

"The RBI's tightening of monetary policy and gradual easing of
capital account restrictions is appropriate even if it comes at
the short-term cost of sacrificing economic growth," said
Lindow.  "Over time, Moody's anticipates a firmer supply-side
policy response will underpin stronger medium-term growth,
accompanied by less risk of overheating."

However, she cautioned, in the absence of deeper reforms, Indian
fiscal policymakers have no option but to rely on stop-gap
measures to contain the buildup of macroeconomic imbalances and
inflationary pressures.

One way to accomplish this is to affect relative prices,
including the rupee exchange rate, both to encourage greater
foreign demand for India's output and to discourage domestic
demand in an effort to restrain the growth of the external
deficit.  Other strategies would rely on monetary and fiscal
tools to curb domestic demand in hopes of achieving price
stability.

"In India's case, macroeconomic policymaking has lately been
deeply complicated by strong capital account inflows that far
exceed its current account deficit.  The flows have put upward
pressure on the rupee, and resulted in considerable foreign
exchange reserve accumulation," said Lindow.  "Such inflows are
partly debt-creating in nature -- commercial borrowings and non-
resident Indian (NRI) deposits -- and can be quite volatile,
especially speculative foreign institutional capital or yield-
seeking portfolio inflows."

In this situation, she said, the burden of re-establishing
macroeconomic stability has increasingly fallen on monetary
policy, although the magnitude and nature of the capital inflows
have blunted the efficacy of various policy tools.  The flows
have also contributed to a loss of external competitiveness and
emerging foreign currency mismatches on the balance sheets of
Indian private-sector borrowers -- just at the peak of a
domestic credit cycle.

Fiscal measures, such as price and export controls on wheat and
cement, have also played a part in restraining wholesale prices,
said Lindow.  But, she said, in the absence of more fundamental
fiscal reform, current efforts merely address the symptoms
rather than the underlying causes of supply shortages and price
pressures.

"As a result, it comes as no surprise that the RBI's annual
credit policy statement of April 24 stressed structural
mechanisms -- easing up on the prepayments of external
commercial borrowings, increasing hedging opportunities,
lowering the interest rates paid on NRI deposits, and permitting
greater flexibility to send portfolio and debt capital abroad --
to foster a more competitive exchange rate that could ameliorate
the growing external imbalances," said Lindow.

The RBI statement also reiterated that work is progressing on
developing niches often found in more sophisticated local
financial markets, such as an interest rate futures market.
Finally, although key policy rates as well as the cash reserve
requirement were left unchanged and the credit expansion targets
were edged up, RBI left no one in doubt about its continuing
hawkishness, particularly now that it has lowered its inflation
goal to 5% for the current fiscal year and its medium-term
comfort range to 4.0%-4.5%.


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


ALCATEL-LUCENT: Provides Mobile Service to China Mobile's Units
---------------------------------------------------------------
Alcatel-Lucent revealed that Beijing Mobile and Guangdong
Mobile, two subsidiaries of China Mobile selected Alcatel-
Lucent's optical solution to enhance mobile service delivery in
the municipality of Beijing and the province of Guangdong.

The enhanced optic transport network infrastructure will help
the operators to serve the booming mobile service requirements
of China Mobile's subscriber base, and provides enhanced traffic
backhaul capabilities for service delivery efficiency.  The
contracts were signed through Alcatel Shanghai Bell, Alcatel-
Lucent's flagship Chinese company.

Innovative Ethernet-based applications are needed to address the
mobile broadband traffic requirements and to support bandwidth-
consuming service offerings.  As a result, extremely efficient
backhaul capabilities are mandatory to ensure the highest
quality of service.  To enhance customer retention and further
increase its subscriber base penetration, Guangdong Mobile is
using the Alcatel-Lucent optical solution to enable a more
reliable and flexible optical-based network delivering mobile
data services to its end users with higher quality and
efficiency.

Besides Guangdong province, China Mobile also deploys Alcatel-
Lucent's optical network solution in the municipality of Beijing
for mobile service delivering.  These achievements follow
Alcatel-Lucent's successful rollout of several state-of-the art
optical infrastructure projects over the last years.

Alcatel-Lucent's solution enables convergent service growth and
the introduction of new mobile services, including media
streaming and other enterprise mobile services which are vital
for the build-out of next-generation optical networks.  It
provides a single, scalable networking platform optimized to
aggregate multiple traffic types and backhaul the mobile traffic
from base stations to the core.

"As mobile operators are accelerating the rollout of new, IP-
based business and entertainment mobile services, the optical
transport network requires even higher degrees of flexibility
and backhaul consolidation," stated Romano Valussi, President of
Alcatel-Lucent's optics activities.  "This new project further
confirms Alcatel-Lucent ability to provide optical-data
convergent solutions that offer ease of connectivity for fast
and efficient service delivery."

The Alcatel-Lucent solution is based on its 1678 Metro Core
Connect and data-aware Optical Multi-Service Node systems, which
offer a flexible solution to bundle and efficiently transport
traffic streams from different services, be they fixed or
mobile.  The Alcatel-Lucent 1350 management suite - which
enables to manage packet, TDM and wavelength services - will
supervise the new equipment.

                     About Alcatel-Lucent

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

The company has operations in Indonesia.

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

                          *     *     *

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

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

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


ALCATEL-LUCENT: Launches New Converged Billing with LHS
-------------------------------------------------------
Alcatel-Lucent and LHS, a leading provider of telecom billing
and customer care systems, revealed a fully integrated prepaid
and postpaid converged billing system for present and next-
generation voice, data and multimedia services.  Alcatel-Lucent
will offer the solution to all of its existing customers and new
customers to support their transformation to prepaid and
postpaid convergence.  This solution becomes a major component
of Alcatel-Lucent's customer care and billing portfolio, and
adds particular value to customers in emerging markets.

This new joint solution strengthens an existing strategic
relationship between LHS and Alcatel-Lucent.  In the past, the
companies worked on many postpaid customer care and billing
solutions together.

The solution combines components of LHS's iX Series Release 2
system with Alcatel-Lucent's payment suite.  It also integrates
all components needed for provisioning, customer care and
refilling prepaid telephone cards.

The most recent example of a customer benefiting from this
successful cooperation is the Belarus mobile services provider
BeST, Minsk, for whom Alcatel-Lucent implemented the BSCS iX
billing and customer care system.

"With this new joint solution with LHS, network operators are
offered a fully converged all-in-one system, which combines
rating, billing, customer care, provisioning and Alcatel-
Lucent's network integration services for prepaid and postpaid
customers in real time," said Jean Pierre Gaillat, Professional
Services Managing Vice President, OSS/BSS and Software
Integration at Alcatel-Lucent.  "Communication service providers
will benefit from LHS' best-of-breed product BSCS iX and
Alcatel-Lucent's carrier-grade payment suite, which will help
them improve customer retention overall."

"In addition, the solution is a reaction to the increased
billing demands of providers who want to harmonize all processes
across prepaid and postpaid segments", said Wolfgang Kroh, CEO
of LHS.  "This not only significantly reduces the running costs
of telecommunications providers, but also allows them to launch
innovative services much faster than before with lower initial
capital expenditure."

LHS is the preferred supplier for a billing solution sold and
marketed by Alcatel-Lucent. By selecting components of the
widely tested and established billing software BSCS iX of LHS,
Alcatel-Lucent lowers the technology and investment risks for
network operators.  In addition, the integration of the total
solution keeps implementation costs low, while customers benefit
from the flexibility of freely choosing prepaid and postpaid
options.  Regardless of the payment option, they can always
enjoy the full range of their network provider's services.

The new software solution will be available in labs for customer
testing throughout Alcatel-Lucent and will be introduced for the
first time at TeleManagement World May 20 - 24 in Nice, France.

                     About Alcatel-Lucent

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

The company has operations in Indonesia.

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

                          *     *     *

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

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

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


APEXINDO PRATAMA: Inks Drilling Rig Services Pact for US$2.13MM
---------------------------------------------------------------
PT Apexindo Pratama Duta Tbk inked a US$2.133 million six-month
contract with Virginia Indonesia Co. LLC on April 20, Antara
News reports.

The report adds that under the contract, Apexindo Pratama will
provide drilling rig services in the Mutiara field, East
Kalimantan.

                     About Apexindo Pratama

Headquartered in Jakarta, Indonesia, PT Apexindo Pratama Duta
Tbk -- http://www.apexindo.com/-- is a national onshore and  
offshore drilling contractor that has been serving both
prominent local and international clients domestically as well
as abroad for the last two decades.

Apexindo Pratama is controlled by Indonesia's largest listed
energy firm, PT Medco Energi International Tbk (MEDC.JK), which
has a 52% stake.

Apexindo Pratama has recorded a net loss of IDR43.126 billion in
fiscal year 2005, compared with a IDR36.524 billion net loss in
2004.


BANK INTERNASIONAL: 1Q Profit Drops 34.6% Due to Competition
------------------------------------------------------------
Bank International Indonesia Tbk's 2007 net profit dropped 34.6%
to IDR115 billion from IDR176 billion in the same period last
year due to a decline in credit margin caused by intensive
market competition since March 2006, Antara News reports citing
the company's president director, Henry Ho, in a statement.

Mr. Ho added that the decline was also caused by " competition
for third party funds and a shift in the public`s saving pattern
from saving accounts to deposits."

According to the report, the bank's net income from interest
also dropped 8% to IDR620 billion due to a hike in the non-
performing loan ratio in the year before.

However, the bank's credit distribution rose 14% to
IDR26.489 billion compared to IDR23.190 billion in the same
period last year, the report notes.

The report says that total clients` deposits also went up 4% to
IDR36.356 billion from IDR35.1 billion in the first quarter last
year, while its net non-performing loan ratio to 3.89% this
year.

                    About Bank Internasional

PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--  
engages in general banking services and in other banking
activities based on Syariah principles.  The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard.  The bank is headquartered in Jakarta,
Indonesia.

With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.

The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service changed the outlook for
Bank Internasional Indonesia Tbk's long-term credit ratings to
positive from stable.  The bank's short-term deposit rating
continues to carry a stable outlook while the BFSR remains on
review for possible upgrade.

The bank's detailed ratings are: issuer/subordinated debt of
Ba3/Ba3; foreign currency long-term/short-term deposit of B2/Not
Prime; and bank financial strength of E+.

Another TCR-AP report on Feb. 1, 2007, said that Fitch Ratings
affirmed all the ratings of Bank Internasional as: Long-term
foreign Issuer Default rating 'BB-', Short-term rating 'B',
National Long-term rating 'AA-(idn)'; Individual 'C/D', and  
Support '4'.  The Outlook for the ratings was revised to
Positive from Stable.


BERLIAN LAJU: Plans Issuance of US$200-MM Guaranteed Sr. Notes
--------------------------------------------------------------
Berlian Laju Tanker plans to issue US$200 million in guaranteed
senior notes due 2014, starting next week, with Deutsche Bank
Securities and JPMorgan as its lead managers, Asia News reports.

The report notes that the company said that it also plans to
raise money through other forms of financing.

Moreover, the company also plans to increase its fleet by up to
15 vessels as part of a US$500 million expansion plan, the
report says.

PT Berlian Laju Tanker Tbk is the largest Indonesian shipping
company, focusing on liquid bulk cargo, with operations
primarily in Asia with some expansion into the Middle East and
Europe.  In 2006, BLT achieved revenue of US$335m, EBITDA of
USD154m and net income of USD107m.  The founder, Mr Hadi Surya,
has a 48.7% beneficial interest in BLT.

Troubled Company Reporter - Asia Pacific reported on Apr 24,
2007, Fitch Ratings assigned Long-term Foreign Currency and
Local Currency Issuer Default Ratings of 'BB-' to Indonesia-
based PT Berlian Laju.  The Outlook for the ratings is Stable.  
Fitch has also assigned an expected rating of 'BB-' to the
proposed US$200 million senior unsecured notes due 2014 to be
issued by BLT Finance B.V. and guaranteed by BLT.  The final
ratings are contingent upon receipt of documents conforming to
information already received.

Standard & Poor's Ratings Services has assigned its 'BB-'
corporate credit rating to Indonesia's PT Berlian Laju, a liquid
bulk cargo shipping company.  The outlook is stable. At the same
time, Standard & Poor's assigned its 'B+' issue ratings to both
the proposed US$200 million seven-year senior unsecured notes
due 2014 and US$125 million five-year convertible bond due 2012,
to be issued by BLT Finance B.V., a wholly owned subsidiary of
BLT.


FOSTER WHEELER: Unit Wins Contract to Build PC Steam Generator
--------------------------------------------------------------
Foster Wheeler Ltd.'s subsidiary within its Global Power Group
has been awarded a contract for construction management services
and reimbursable craft labor to erect a 400-megawatt pulverized-
coal steam generator at the Springerville Generating Station in
Arizona by Salt River Project Agricultural Improvement and Power
District.  Foster Wheeler was previously awarded a contract in
2006 to supply the PC boiler to SRP for this project.

The contract, valued at approximately US$75 million, will be
included in the Company's second-quarter 2007 bookings.

Foster Wheeler will erect the PC boiler components, associated
piping, auxiliary equipment and selective catalytic reduction
systems.  Erection of the boiler is expected to begin in April
2007, with commercial operation scheduled for late 2009.

"This award represents a win for Foster Wheeler and reflects
SRP's confidence in Foster Wheeler not only as a supplier of
state-of-the-art boilers, but also as an experienced boiler
constructor," said Gary Nedelka, president and chief executive
officer of Foster Wheeler North America Corp.  "This is another
example of Foster Wheeler's commitment to supply complete, cost-
effective solutions to support our clients in the power
industry."

"We saw a lot of value in having Foster Wheeler supply and erect
our new boiler for unit #4 and are convinced that Foster Wheeler
is the right company to have on our team," said Bill Rihs,
manager, Major Projects, SRP.

                      About Foster Wheeler

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

                          *     *     *

On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


FREEPORT-MCMORAN: First Quarter Profit Surges to US$476.2MM
-----------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc.'s first-quarter profit
nearly doubled, selling twice as much copper and gold as a year
earlier, due to an increase in metal prices and the acquisition
of Phelps Dodge, Reuters reports.

According to the report, the company's first-quarter net
earnings rose to US$476.2 million, or US$2.02 per share, from
US$251.7 million, or US$1.23 per share, a year earlier and
revenue rose to US$2.3 billion from US$1.09 billion, with a
US$515.7 million contribution from Phelps Dodge.

The company said that it sold twice as much copper and gold, the
report points out.

                      About Foster Wheeler

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

                          *     *     *

On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


GENERAL NUTRITION: Awards Private Network Contract to New Edge
--------------------------------------------------------------
General Nutrition Centers Inc., awarded a US$14 million contract
to New Edge Networks to provide a private network that will
ensure optimal GNC customer privacy, improved network security,
and high-speed data communications.

Under terms of a four-year contract, the EarthLink Inc.
subsidiary will build and manage a private nationwide network
that will power GNC's new point of sale system for more than
3,500 corporate owned and franchised retail outlets throughout
the country.  The high-speed network will use a blend of DSL,
short for digital subscriber line, and frame relay access
technologies.

"Customer privacy, network security, and excellent customer
service are paramount considerations for GNC," said Jerry
Werner, vice president and chief information officer for GNC,
based in Pittsburgh, Pennsylvania.  "New Edge Networks earned
GNC's business for demonstrating flexibility and designing a
fully managed private network that uses a blend of access
technologies -- without traversing the public Internet."

GNC awarded the contract to New Edge Networks following a
diligent review of various major carriers and network
configurations.  GNC has been using standard telephone
connections for its business operations and processing credit
card payments.

Installation for the first 150 stores is underway.

"This agreement is a testament of the value of a single source
provider for private connections anywhere and New Edge Networks'
vast DSL coverage which spans almost 90% of U. S. business
locations," said Linda Beck, president of New Edge Networks.

"GNC's new network is scalable for future growth and will enable
the company to easily introduce new automated applications that
will improve efficiency yet hold down overall communications
costs," Beck said.

                     About General Nutrition

Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary
of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of  
health and wellness products, including vitamins, minerals,
herbal, and specialty supplements (VMHS), sports nutrition
products and diet products.  The company sells its products
through a worldwide network of more than 5,800 locations
operating under the GNC brand name and operates in three
business segments: retail, franchise and manufacturing/
wholesale.

GNC's Asian operations include those in Indonesia and the
Philippines.

Moody's assigns provisional (P)B2 rating to PT Indika Inti
Energi


INDIKA INTI: Expects US$250 Million via Offshore Bonds Sale
-----------------------------------------------------------
PT Indika Inti Energi has hired JPMorgan and ING to raise
US$250 million via the sale of offshore bonds due in 2012, Asia
News reports.

According to the report, proceeds will be used to refinance
existing indebtedness, fund investments and acquisitions, and
for general corporate purposes.

The presentation for investors will start April 25, the report
adds.

                       About Indika Inti

Headquartered in Indonesia, Pt Indika Inti Energi (Indika),
--indika.co.id/-- established in 2000, is a privately-owned
investment holding company.  Its major investment assets include
a 46% stake in Kideco and a 100% stake in Tripatra.  Kideco, the
major cash flow provider to the holding company, commenced its
commercial operations in 1993, with a 30 year CCOW valid until
2023.  The CCOW, which is structured as a contract between
Kideco and the Indonesian government and ratified by the
Indonesian Parliament, will prevail above other Indonesian laws
and also provide for international arbitration in the event of a
dispute.  Fitch notes that this framework has existed for nearly
25 years, and has withstood considerable political and economic
turmoil in Indonesia.  Tripatra is a leading EPC and O&M service
provider in Indonesia with a focus on energy and infrastructure
projects.


INDIKA INTI: Moody's Rates US$250 Million Senior Bonds at (P)B2
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2
corporate family rating to PT Indika Inti Energi (Indika). The
rating outlook is stable.  At the same time, Moody's has
assigned a provisional (P)B2 rating to the proposed 5-year,
US$250m senior secured bond issued by Indo Integrated Energy BV
and guaranteed by Indika.  This is the first time that Moody's
has assigned a rating to Indika.

The bond proceeds will be used to refinance corporate debt
(US$103 million); to repay an account payable (US$16 million);
to acquire an Indonesian coal mine (US$60m); to fund investment
into 2 power plant projects (US$40 million); and for general
corporate purposes (US$31 million).  Moody's expects to affirm
the ratings and remove them from provisional status upon the
closing of the proposed bond issue.

"The (P)B2 rating reflects strong dividend cash flows from
Indika's 46% shareholding in PT Kideco Jaya Agung (Kideco),
Indonesia's third largest domestic coal producer and one of the
world's lowest cost producers and exporters of coal.  It also
reflects the strong shareholder agreement between Indika and
Samtan Co Ltd of South Korea in respect of their majority
ownership of Kideco," says Laura Acres, a Moody's Vice
President.

"Other supportive factors include Indika's 100% ownership of the
Tripatra Group of companies, an established Engineering,
Procurement and Construction and Operation and Maintenance (O&M)
contractor with a long track record of successfully completed
projects within Indonesia; and a strong relationship with its
principal Korean partner, Samtan," says Acres, also Moody's Lead
Analyst for the company.

At the same time, the rating reflects Indika's high degree of
reliance on dividend income from Kideco; the variability of that
income which will be needed to service debt; execution risk over
the next 12-18 months with regard to the successful completion
and integration of various new acquisitions in the coal mine,
shipping and sea transport businesses, as well as setting up of
its coal trading business and investment in two power plants.

Other risks include underlying sensitivity to coal and oil
prices and exposure to the fortunes of international oil
companies; unpredictability of the EPC and O&M tender
businesses; the private ownership structure and dominant
shareholder at the Indika level and potential good corporate
governance concerns; and uncertainty pertaining to the
regulatory environment for the coal mining industry in
Indonesia.

On a comparative basis, Indika rates one notch below PT Berau
Coal (Berau).  Whilst Moody's is cognizant of the
diversification benefits of Indika business model, it also notes
the stability of Berau's business platform, direct link to
concession ownership and lower adjusted leverage.

The stable outlook reflects the expectation that Indika will
execute its business plan as planned and maintain its
competitiveness in the near to medium term.

Upward rating pressure over the next 2 years is limited given
Indika's projected high level of leverage and its high degree of
reliance on dividend streams from Kideco, over which it has
limited control.  However, a positive trend could emerge over
time if financial leverage, as measured by total debt/EBITDA
falls below 4.0x; and EBIT/interest increases above 3.0x on a
consistent basis.

On the other hand, downward pressure on the rating could emerge
as a result of:

      * a reduced dividend flow from Kideco;

      * Tripatra's inability to win tenders as forecast;

      * any deterioration in the relationship between Samtan and
        Indika;

      * any evidence of cash leakage; and

      * political and economic instability re-emerging in
        Indonesia resulting in a loss of orders at either
        Tripatra or Kideco.

Specific indicators Moody's would look for include: total
debt/EBITDA remaining above 5-5.5x; and EBIT/interest falling
below 1.5x.

Indika is a privately-held, integrated energy group based in
Indonesia.  Its principal investment is its 46% shareholding in
Kideco, Indonesia's third largest domestic coal producer. I n
addition, Indika is involved in the EPC and O&M businesses
through its wholly owned subsidiary Tripatra which has a long
established history of successfully completing such projects in
Indonesia for major international oil companies.


PARKER DRILLING: Shareholders Approve KPMG as Accountants
---------------------------------------------------------
Parker Drilling Company's shareholders, at their annual meeting,
elected two Class II directors and approved an amendment to the
Company's Restated Certificate of Incorporation to increase the
number of authorized shares of common stock from 140,000,000 to
280,000,000 and ratified the appointment of KPMG LLP as the
Company's independent accountants for 2007.

Robert E. McKee III, retired executive vice president of
ConocoPhillips Inc.; and George J. Donnelly, managing partner of
Lilo Ventures, were elected to three-year terms on the Company's
Board of Directors at the meeting.

Other Board members whose terms continue are Robert L. Parker
Jr., chairman, president, and chief executive officer of Parker
Drilling Company; Roger B. Plank, executive vice president and
chief financial officer, Apache Corporation; R. Rudolph
Reinfrank, managing general partner, Clarity Partners; John W.
Gibson, executive chairman, Paradigm Geo; James W. Whalen,
president - finance and administration, Targa Resources, Inc.;
and Robert W. Goldman, vice president - finance, World Petroleum
Council.

                      About Parker Drilling

Headquartered in Houston, Texas, Parker Drilling Company
-- http://www.parkerdrilling.com/-- provides contract drilling  
and drilling-related services worldwide.  The company has rigs
located in Indonesia, New Zealand, Colombia and Mexico, among
others.

The Troubled Company Reporter - Asia Pacific reported on
Oct. 12, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the oilfield service
and refining and marketing sectors last week, the rating agency
confirmed its B2 Corporate Family Rating for Parker Drilling
Company, as well as it B2 rating on the company's 9.625% Senior
Unsecured Guaranteed Global Notes Due 2013, and Senior Unsecured
Guaranteed Floating Rate Global Notes Due 2010.  Moody's
assigned those debentures an LGD4 rating suggesting note holders
will experience a 55% loss in the event of default.


PERTAMINA: Unit Signs Gas Sales Deal with Four Buyers
-----------------------------------------------------
PT Pertamina (Persero)'s unit Pertamina EP has signed a gas
sales deal with four buyers namely PT Pupuk Sriwijaya, PT Titis
Sampurna, PT Pertiwi Nusantara and PT Energi Kompresindo, Antara
News reports.

According to the report, under the agreement, Pertamina EP will
supply:

    * 325.03 trln British thermal units of gas to Pupuk
      Sriwijaya for five years;

    * 2.19 trln British thermal units of gas to Titis Samurna
      for three years;

    * 0.87 trln British thermal units of gas to Pertiwi
      Nusanatara Resources for three years; and

    * 0.7 trln British thermal units of gas to Energi
      Kompresindo for three years.

                        About PT Pertamina

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

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

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

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


PERTAMINA: Inks Six-year Gas Supply Deal with Chevron Indonesia  
---------------------------------------------------------------
PT Pertamina (Persero) signed a six-years gas supply agreement
to purchase 65 trln British thermal units from Chevron
Indonesia's Seturian gas field, Antara News reports, citing XFN
Asia.

According to the report, the gas will be consumed by Pertamina's
Balikpapan gas refinery.

                       About PT Pertamina

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

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

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

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


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

DAIWA SECURITIES: Taps Thomson One to Improve Efficiency
--------------------------------------------------------
Daiwa Securities SMBC has tapped Thomson One Investment Banking
to consolidate its operating environment and improve its
coordination and efficiency, Banking Technology reports.

According to Teruaki Ueda, the company's managing director and
head of investment banking, Thomson One was selected because it
offered the most comprehensive support for its investment
banking workflow and has recently released a Japanese language
desktop solution which was favorable for Daiwa.

Daiwa is now considering the possibility of introducing the
technology across its global operations.

                    About Daiwa Securities

Headquartered in Tokyo, Daiwa Securities Group Inc. --
http://www.daiwa.jp/ -- is a Japan-based securities company.   
The company primarily is engaged in the securities, investment,
financing and service businesses.  Daiwa Securities Group is
comprised of 46 consolidated subsidiaries and five associated
companies, which are engaged in the securities, investment
trust, information service, real estate leasing, venture
capital, financing and other businesses.  The company with its
subsidiary and associated companies has operations in both
domestic and overseas markets, including Japan, the United
Kingdom, the United States, the Netherlands, Hong Kong and
Singapore.

The Troubled Company Reporter - Asia Pacific reports that Fitch
Ratings, on October 25, 2006, affirmed the company's C
individual rating.


FUJI HEAVY: Wins $2.5 Million in Contracts with Ducommun
--------------------------------------------------------
Ducommun Incorporated's subsdiary, Ducommun AeroStructures, Inc.
(DAS), has been awarded two new contracts with Fuji Heavy
Industries of Japan for more than $2.5 million.  All work will
be performed at DAS's Gardena, California, and Parsons, Kansas,
facilities.

Joseph C. Berenato, chairman, president and chief executive
officer of Ducommun, stated, "We are pleased to have been
selected by Fuji Heavy Industries for this statement of work and
to welcome Fuji as a new customer to DAS. As we continue to
drive Lean Six Sigma throughout Ducommun and focus on the Voice
of the Customer, we are becoming the supplier of choice for both
new customers and new programs."

Ducommun AeroStructures manufactures large, complex structural
components and assemblies in aluminum, specialty alloys such as
titanium, metal bond and composites for a wide variety of
military and commercial aerospace applications.

Founded in 1849, Ducommun Incorporated provides engineering and
manufacturing services to the aerospace and defense industry.

                 About Fuji Heavy Industries

Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. --
http://www.fhi.co.jp/-- is a manufacturing company engaged in
the production, sale, repair and leasing of automobile and
transportation-related products.  The company makes Subaru
vehicles.

In June 2005, Standard & Poor's Ratings Services lowered its
long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+'
from 'BBB-' based on diminished prospects for a recovery in
profitability and cash flow over the near term along with
intensifying competition in the global auto industry.


JAPAN AIRLINES: Reports Rise in Domestic Passengers Traffic
-----------------------------------------------------------
Japan Airlines Corp. increased the number of domestic passengers
in the year ended March 31 by 0.3% to 44 million, reports Chris
Cooper of Bloomberg.

For March, Japan Air's number of domestic passengers rose 0.1%
percent from a year earlier to 3.9 million.  Japan Air filled
67.4% percent of seats on domestic flights with paying
passengers in March, up 0.6 points, Mr. Cooper adds.

This progress follows Japan's growing economy, which boosted air
travel in the country, the report relates.

                       About Japan Airlines

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific on October 2, 2006,
reports that Moody's Investors Service has affirmed its Ba3
long-term debt ratings and issuer ratings for both Japan
Airlines International Co., Ltd and Japan Airlines Domestic Co.,
Ltd.  The rating affirmation is in response to the planned
restructuring of the Japan Airlines Corporation group on October
1, 2006 with the completion of the merger of JAL's two operating
subsidiaries, JAL International and Japan Airlines Domestic.  
JAL International will be the surviving company. The rating
outlook is stable.

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  On December 15,
2006, Fitch assigned a BB- rating on the Company, which is three
notches lower than investment grade.

On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt ratings on the Company.


JAPAN AIRLINES: International Passenger Traffic Fall 5.1%
---------------------------------------------------------
Japan Airlines Corp.'s number of international passengers fell
for the second year, by 5.1% to 13.5 million, in the 12 months
ended March 31, Chris Cooper of Bloomberg reports.

For the year, the carrier only managed to filled 71.1% of seats
on overseas flights.

The reports adds that the carrier's number of international
passengers for the month of March also fell 2.5% percent to
1.19 million with the airline filling 73.9% of seats on
international flights, down 0.6 points.

                       About Japan Airlines

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

                          *     *     *

The Troubled Company Reporter - Asia Pacific on October 2, 2006,
reports that Moody's Investors Service has affirmed its Ba3
long-term debt ratings and issuer ratings for both Japan
Airlines International Co., Ltd and Japan Airlines Domestic Co.,
Ltd.  The rating affirmation is in response to the planned
restructuring of the Japan Airlines Corporation group on October
1, 2006 with the completion of the merger of JAL's two operating
subsidiaries, JAL International and Japan Airlines Domestic.  
JAL International will be the surviving company. The rating
outlook is stable.

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  On December 15,
2006, Fitch assigned a BB- rating on the Company, which is three
notches lower than investment grade.

On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt ratings on the Company.


MAZDA MOTOR: Improved Performance Cues S&P to Upgrade Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services raised Mazda Motor Corp.
long-term corporate credit rating and the company's long-term
senior unsecured debt as:

   * Corporate Credit Rating: BB /Stable/

   * Company's Long-term Senior Unsecured Debt: BB+

The rating actions reflect Mazda's improved operational and
financial performance, and financial risk profile.  Mazda's
operating and financial performance has been improving over the
past several years due to the success of new products following
a shift in strategy.  The company continued to improve operating
and financial performance in the nine months ended Dec. 31,
2006, owing to an improved sales mix and favorable foreign
exchange rates.  Although the EBITDA margin of about 6% remains
lower than most of its Japanese peers, profitability is steadily
improving.  Mazda is now focusing on certain segments instead of
attempting to compete as a full-line producer.  The company
also has excellent product engineering capabilities.

Mazda's financial profile has also improved and, supported by
improved profitability, the company has generated solid funds
from operations of JPY100 billion and free cash flow of JPY40
billion annually on average over the past four years.  Debt
leverage has decreased, with the adjusted ratio of total
debt to capital at about 60% and net debt to capital at about
50% as of March 31, 2006, compared with more than 75% and 65%,
respectively, in previous years.  Although capital investment
requirements are likely to increase in order to enhance
competitiveness, these would most likely be funded by FFO.
Mazda's financial profile is expected to continue gradually
improving over the next two to three years.

Ford Motor Co. (B/Neg/B-3) continues to own 34% of Mazda and its
management continues to exercise a high degree of influence over
Mazda, being instrumental in facilitating the company's
financial turnaround.  The two companies coordinate very
closely, both strategically and operationally.  As small-to-
midsize vehicles have grown in importance in the U.S. market due
to deterioration in the light-truck segment, Mazda's presence in
the Ford group has grown in recent years and so we still believe
Ford and Mazda's prospects in many markets are highly
correlated.  As such, Ford's operating and financial
performance pose risks to Mazda, but we have not seen any
indication at current ownership levels that Ford would seek to
adversely shift Mazda's business or financial strategies given
the seemingly high level of importance and contribution of Mazda
to Ford's strategy.  If Ford were to seek such changes or if
Ford's financial performance began to impact Mazda, we would
reassess our views.  In conclusion, the rating on Mazda could be
negatively influenced by Ford given the close relationship
between the two, although this is not considered a likely
scenario.

The rating on Mazda's long-term senior unsecured bonds is one-
notch higher than the long-term corporate credit rating.  This
reflects Standard & Poor's assumption that in a hypothetical
downside scenario, bondholders would incur no losses from
default, as any default by the company would take the form of a
loan waiver, rather than bankruptcy, and as a result, the
default probability on the long-term senior unsecured bonds is
lower than that on bank borrowings.  The bond rating reflects
the company's relatively high exposure to bank borrowings and
close relationship with its main creditor bank.
               
                           About Mazda Corp.

Headquartered in Hiroshima Prefecture, Mazda Motor Corporation -
- http://www.mazda.co.jp-- together with its subsidiaries and  
associates, is primarily involved in the manufacture and
distribution of automobiles.  The company manufactures passenger
cars and commercial vehicles.  Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.

Standard and Poor's Ratings Service gave Mazda Motor's long-term
local and foreign issuer a BB- rating.


MIZUHO BANK: Buys 1.2 Million Common Shares in Shinhan Financial
----------------------------------------------------------------
Mizuho Corporate Bank, Ltd., disclosed that it will purchase
issued and outstanding common shares in Shinhan Financial Group
from Shinhan Bank:

1. Details of the Purchase

       Class: Issued and outstanding common shares in Shinhan
              Financial Group

       Number of Shares: 1,200,000 (approx. 0.31% of the total
                         issued and outstanding common shares of
                         Shinhan Financial Group as of the end
                         of December 2006)

       Purchase Date: April 25, 2007

MHCB previously purchased common shares in Shinhan Financial
Group in September 2006 and February 2007.  Together with those
previously purchased shares, MHCB's aggregate holdings of
Shinhan Financial Group common shares will be:

Total number of shares: 5,955,000 (approx. 1.56% of the total
issued and outstanding common shares of Shinhan Financial Group
as of the end of December 2006)

                           About Mizuho Bank

Headquartered in Tokyo, Mizuho Bank Ltd. --
http://www.mizuhobank.co.jp/english/-- was established on April   
1, 2002, from the merger of Dai-Ichi Kangyo Bank and the retail
operations of Fuji Bank.  It forms the core consumer banking
unit of Mizuho Financial Group, which is the second-largest
financial services company in Japan.

On February 8, 2006, Fitch Ratings upgraded Mizuho Bank's
individual rating to C from C/D.


NIKKO CORDIAL: Citi Completes Tender Offer & Acquires 61% Stake
---------------------------------------------------------------
Citi has completed its tender offer to become the majority
shareholder of Nikko Cordial Corporation.  The tender offer
period expired on April 26, 2007, with about 541 million shares
tendered and accepted.  Following the settlement of the tender
offer for approximately $7.7 billion in cash on May 9, 2007,
Citi will own a total ownership stake in excess of 60%.

In a statement, Nikko Cordial disclosed that Citigroup Japan
Investments LLC now has a 61.08% equity stake in the company by
virtue of the 588,698,520 shares held and will become the parent
company and largest shareholder of Nikko Cordial as of May 9,
2007.  

A full-text copy of Nikko Cordial's announcement concerning the
change in the parent company is available for free at:

          http://bankrupt.com/misc/nikko--1.pdf

A full-text copy of Nikko Cordial's notice regarding the results
of the tender offer is available for free at:

          http://bankrupt.com/misc/nikko--2.pdf

"We are very pleased to now fully pursue our alliance with Nikko
Cordial, a premier Japanese financial institution with whom we
already have a strong relationship. Citi has operated in Japan
for more than 100 years, and we are committed to deepening our
client relationships and expanding our capacity to provide
existing and new clients with best-in-class solutions in a key
growth market for us," said Charles Prince, Chairman and Chief
Executive Officer of Citi.

"The successful completion of the tender underscores our focus
on seizing opportunities to grow internationally both
organically and through targeted acquisitions," Mr. Prince
continued. "The combination of Nikko's local expertise, deep
talent pool, strong brand, and extensive countrywide
distribution network with Citi's global reach and innovative
products and services will benefit our clients and help drive
future growth of both franchises."

This alliance builds on the strong relationship that Citi and
Nikko Cordial have forged over the past eight years and the
success of their existing joint ventures, including Nikko
Citigroup Limited, one of Japan's leading investment banks and a
strategically important part of Citi's global capital markets
and banking business.

"The strategic alliance immediately brings Citi's Japanese
businesses to scale and enables us to leverage new capabilities,
including Nikko's leading brokerage operation," said Douglas
Peterson, Chairman and CEO of Citibank Japan. "We will have the
ability to access Nikko Cordial's large network of corporate
clients and capitalize on increased acquisition activity in
Japan. The alliance will also allow clients to benefit from
world-class global services that Nikko Cordial does not
currently offer, such as Citi's loan products."

"We are very pleased that Citi's tender offer has been
successful. This strategic alliance is a significant step in
positioning our company for future growth, helping us meet the
evolving needs of our retail and corporate clients through our
collaboration with Citi," said Shoji Kuwashima, President and
CEO of Nikko Cordial Corporation. "Nikko Cordial looks forward
to strengthening our long and effective business relationship
with Citi."

Citi and Nikko Cordial, under the direction of a joint steering
committee, will be identifying a wide range of opportunities to
leverage their respective retail businesses, capital markets and
banking businesses, technology and administrative services,
asset management, principal investments, organizational
structure, and employees and management in Japan.

For Citi, the transaction is expected to be neutral to earnings
per share in 2007 and accretive in 2008 and thereafter.

                           About Citi

Citi -- http://www.citigroup.com/or http://www.citi.com/--  
a global financial services company, has some 200 million
customer accounts and does business in more than 100 countries,
providing consumers, corporations, governments and institutions
with a broad range of financial products and services, including
consumer banking and credit, corporate and investment banking,
securities brokerage, and wealth management.  Citi's major
brands include Citibank, CitiFinancial, Primerica, Citi Smith
Barney and Banamex.

                      About Nikko Cordial

Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The Asset
Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore. The
company has a global network.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on March 8,
2007, that Fitch Ratings revised the Rating Watch on the foreign
and local currency Issuer Default and Individual ratings of
Nikko Cordial Corporation and Nikko Cordial Securities Inc. to
Evolving from Negative.  These ratings were placed on Watch
Negative on Dec. 21, 2006.

The ratings are:

   NCC: Individual rating C/D and Support rating 5.

   Nikko Cordial Securities: Individual C and Support rating 4.

As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating
Nikko Cordial for falsifying its annual financial statements for
the business year ended March 30, 2005, declaring JPY14 billion
in false profits, and using them to procure money from the
market.


NOMURA HOLDINGS: To Offer Year-End Dividend & Raise 2008 Target
---------------------------------------------------------------
Nomura Holdings, Inc. plans to offer a year-end dividend of
JPY20 per share for the fiscal year ended March 31, 2007.  The
dividend will be payable to all shareholders recorded as of
March 31, 2007.

The year-end dividend of JPY20 was reached by adding JPY12 to
the year-end target dividend of JPY8.  As a result, the annual
dividend for the current fiscal year will be JPY44 per share.

         Target Dividend for FY 2008 Is JPY34 per Share

Nomura Holdings, Inc. will raise its annual target dividend to
JPY34 per share for the fiscal year ending March 31, 2008.  This
represents a JPY2 per share increase compared to the annual
target dividend for the prior year.

Target dividend amounts for year ending March 31, 2008:

   1st Quarter   2nd Quarter   3rd Quarter   4th Quarter   Total
   -----------   -----------   -----------   -----------   -----
     JPY8.50       JPY8.50       JPY8.50       JPY8.50     JPY34

All dividends are ordinary dividends.  The payment and dividend
amounts will be determined by a resolution of the Board of
Directors.  When Nomura achieves a sufficient level of profit,
the year-end cash dividend will be increased taking into
consideration a pay-out ratio of over 30%.

                        Capital Management

1. Capital Management Policy

   1) Nomura seeks to enhance shareholder value by capturing
      business opportunities as they develop.  To achieve this
      goal, Nomura maintains sufficient capital to support its
      business.  

   2) Nomura reviews its sufficiency of capital as appropriate,
      taking into consideration economic risks inherent in its
      businesses, regulatory requirements, and maintenance of a
      sufficient debt rating for a global financial institution.

2. Dividend

   1) In regard to cash dividends, Nomura first decides target
      dividend amounts, the minimum level of cash dividend,
      taking into account the firm's dividend-on-equity ratio
      (DOE) of about 3%. When Nomura achieves a sufficient level
      of profit, it will decide the amount of the year-end cash
      dividend taking into consideration a pay-out ratio of over
      30%. Nomura seeks to ensure sustainable growth of its
      target dividend in the mid- to long-term.

   2) As for retained profits, Nomura intends to invest in
      business areas where high profitability and growth may
      reasonably be expected, including development and
      expansion of infrastructure, to maximize value for
      shareholders.

3. Stock Repurchases

   1) Nomura repurchases shares when it recognizes the need to
      set out flexible financial strategies that allow the Board
      to respond quickly to changes in the business environment.

   2) When Nomura decides to set up a share buyback program, the
      firm will announce the decision soon after it is made and
      purchase the shares following internal guidelines.

                     About Nomura Holdings

Nomura Holdings, Inc. -- http://www.nomura.com/-- is a
securities and investment banking firm in Japan and have
worldwide operations in more than 20 countries and regions
including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries.  Nomura
operates in five business segments: Domestic Retail, which
includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading
and asset finance businesses in and outside Japan; Global
Investment Banking, which includes mergers and acquisitions
advisory and corporate financing businesses in and outside
Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which
includes development and management of investment trusts, and
investment advisory services.

On April 13, 2006, Fitch Ratings gave Nomura Holdings a 'C'
individual rating.


SANYO ELECTRIC: To Tender 16.7% of SE Credit's Stake to GE
----------------------------------------------------------
Sanyo Electric Co. Ltd., said on Wednesday it would tender its
entire 16.7% stake in Sanyo Electric Credit Co. Ltd., a Japanese
leasing company whose main shareholder is Goldman Sachs, to
General Electric Co, Reuters reports.

GE, according to the report, said in March it would launch a
$1.14 billion tender offer for Sanyo Electric Credit.

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

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

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

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

HYNIX SEMICONDUCTOR: To Invest KRW4.6 Tril. in Production Lines
---------------------------------------------------------------
Hynix Semiconductor Inc. would invest a total of
KRW4.6 trillion, or US$4.97 billion, to build a new plant and
expand its existing production lines, Reuters reports.  

Citing the company's filing with the Korea Exchange, Reuters
says it would spend KRW3.8 trillion to build a planned new
domestic plant, which uses an advanced 12-inch silicon wafer, to
be completed by mid-2009.

The remaining KRW792 billion would be spent in the current
quarter on expanding and upgrading its existing plant, the
report notes.

                          *     *     *

Headquartered in Echon, 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.

The Troubled Company Reporter - Asia Pacific reported on July 3,
2006, that Standard & Poor's Ratings Services revised to
positive from stable the outlook on its 'B+' long-term corporate
credit ratings on Hynix Semiconductor Inc. and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc.  At
the same time, Standard & Poor's affirmed its long-term
corporate credit and senior debt ratings on the company.

The TCR-AP reported on July 14, 2005, that Moody's Investors
Service upgraded the rating of the senior secured notes issued
by Hynix Semiconductor Manufacturing America Inc. to Ba3 from
Caa2.  The rating actions follow Moody's decision to affirm the
Ba3 corporate family rating (previously called senior implied
rating) of Hynix Semiconductor Inc., the majority shareholder of
HSMA, and remove it from provisional status.  The TCR-AP
reported on July 13, 2005, that Moody's Investor Service
affirmed its B1 senior unsecured rating for Hynix Semiconductor
Inc.'s US$500 million bonds upon its successful closing.


HYNIX SEMICONDUCTOR: 1Q Profit Below Forecast on Chip Price Drop
----------------------------------------------------------------
Hynix Semiconductor's first-quarter net profit jumped 45%, but
the result was well below expectations as prices of its memory
chips plunged, Reuters reports.

According to the report, the company disclosed KRW418 billion,
or US$451.1 million, net profit in the quarter ended March 31,
well below a KRW560.3 billion consensus forecast by 17 analysts
polled by Reuters Estimates.

The figure, Reuters relates, compares with KRW1.02 trillion in
the fourth quarter and KRW289.4 billion in the year-ago period.

In addition, Hynix's sales in the first quarter were KRW2.42
trillion, against expectations of KRW2.36 trillion and last
year's KRW1.51 trillion.  Operating profit came in at KRW388
billion, much less than the KRW589 billion expected.

In a statement, Hynix said average prices of its mainstay
dynamic random access memory chips dropped 27% in the quarter,
although it expects shipments to rise by some 20%, Reuters
relates.  

Prices of flash memories slid an even steeper 44%, with no
shipment growth, the report adds.

                          *     *     *

Headquartered in Echon, 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.

The Troubled Company Reporter - Asia Pacific reported on July 3,
2006, that Standard & Poor's Ratings Services revised to
positive from stable the outlook on its 'B+' long-term corporate
credit ratings on Hynix Semiconductor Inc. and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc.  At
the same time, Standard & Poor's affirmed its long-term
corporate credit and senior debt ratings on the company.

The TCR-AP reported on July 14, 2005, that Moody's Investors
Service upgraded the rating of the senior secured notes issued
by Hynix Semiconductor Manufacturing America Inc. to Ba3 from
Caa2.  The rating actions follow Moody's decision to affirm the
Ba3 corporate family rating (previously called senior implied
rating) of Hynix Semiconductor Inc., the majority shareholder of
HSMA, and remove it from provisional status.  The TCR-AP
reported on July 13, 2005, that Moody's Investor Service
affirmed its B1 senior unsecured rating for Hynix Semiconductor
Inc.'s US$500 million bonds upon its successful closing.


HYNIX SEMICONDUCTOR: Expects Chip Prices to Drop 30% in 2nd Qtr.
----------------------------------------------------------------
Hynix Semiconductor Inc. forecasted a fall of about 30% in the
price of its dynamic random access memory in the second quarter,
Reuters reports.

In a related report from the Reuters, it said that stronger-
than-expected demand for DRAM chips last year prompted
manufacturers to switch more capacity to DRAM from NAND flash,
leading to oversupply, while demand linked to Microsoft's new
Vista operating system remained sluggish.

According to Reuters, analysts expects DRAM prices to hit a
bottom sometime in May, leading to poor profit figures for
chipmakers in the second quarter.

Hynix, however, expects that DRAM shipments will rise by some
20%.

For NAND flash memory, Hynix forecast prices to rise by about 20
percent in the current quarter, the report relates.

                          *     *     *

Headquartered in Echon, 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.

The Troubled Company Reporter - Asia Pacific reported on July 3,
2006, that Standard & Poor's Ratings Services revised to
positive from stable the outlook on its 'B+' long-term corporate
credit ratings on Hynix Semiconductor Inc. and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc.  At
the same time, Standard & Poor's affirmed its long-term
corporate credit and senior debt ratings on the company.

The TCR-AP reported on July 14, 2005, that Moody's Investors
Service upgraded the rating of the senior secured notes issued
by Hynix Semiconductor Manufacturing America Inc. to Ba3 from
Caa2.  The rating actions follow Moody's decision to affirm the
Ba3 corporate family rating (previously called senior implied
rating) of Hynix Semiconductor Inc., the majority shareholder of
HSMA, and remove it from provisional status.  The TCR-AP
reported on July 13, 2005, that Moody's Investor Service
affirmed its B1 senior unsecured rating for Hynix Semiconductor
Inc.'s US$500 million bonds upon its successful closing.


* SoKor's Watchdog Ends DRAM Probe Due to Scant Evidence
--------------------------------------------------------
South Korea's antitrust watchdog has dropped a review of whether
a collusive act by four global chip giants in the United States
several years ago violated the domestic fair trade law, citing a
lack of evidence, Yonhap News reports.

In 2005, Samsung Electronics, Hynix Semiconductor Inc., Micron
Technology Inc. and Infineon Technologies AG were confirmed to
have conspired to fix prices of their DRAM chips between April
1999 and June 2002.



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

MALAYSIA AIRLINES: Wants 55 New Planes to Replace Old Aircraft
--------------------------------------------------------------
Malaysia Airlines wants to buy up to 55 single-aisle to replace
its ageing fleet and asked Airbus and Boeing Co. to bid for a
deal that could worth up to US$4.4 billion, Business Times
reports.

According to the Times' sources, Airbus will submit a proposal
for either the A320s or A321s while Boeing is expected to
propose its B737-800 or B737-900ER.  Both companies are expected
to submit their proposals before a June deadline.

Business Times notes that the national flag carrier's upgrade
could cost between US$3.3 billion and US$4.43 billion depending
on the catalogue price of the planes.

Business Times relates that MAS wants to take delivery of the
first plane as early as at the end of next year.  However, due
to the large orders for single-aisle planes around the world, it
would probably receive its first aircraft by 2011 at the
earliest.

                          *     *     *

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

The carrier 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 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.


MYCOM BERHAD: Ends Restructuring Exercise & Resumes Trade Today
---------------------------------------------------------------
Mycom Bhd has completed its restructuring exercise and has
regularized its financial condition and no longer triggers any
of the criteria under Bursa Malaysia Securities Bhd's Practice
Note 4/2001 category.

Accordingly, the bourse decided that the trade restriction in
the form of full payment before purchase on the securities of
Mycom will be uplifted with effect from 9.00 a.m., today.

Mycom will resume trading its securities starting 9:00 a.m.
today.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.

The company is also involved in hotel operation, provision of
management and financial services and investment holding.  
Operations of the Group are carried out in Malaysia and South
Africa.

Mycom is in the advanced stage of negotiations to settle its
foreign debts.  The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the company's accumulated losses.

Mycom's balance sheet as of end-December 2006 showed total
assets of MYR817 million and total liabilities of 1MYR1.34
billion, resulting to a shareholders' deficit of MYR528.84
million.


OLYMPIA INDUSTRIES: Completes Restructuring Scheme
--------------------------------------------------
Olympia Industries Bhd has regularized its financial condition
and no longer triggers any of the criteria under Bursa Malaysia
Securities Bhd's Practice Note 4/2001 category.

In a disclosure with the Bursa Securities, the company said that
the trade restriction in the form of full payment before
purchase on its will be uplifted with effect from 9.00 a.m.,
today.

Olympia's shares will also resume trading today.

                          *     *     *

Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development.  Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.

Operations are carried out in Malaysia, Papua New Guinea and
Singapore.  The Company has incurred continuous losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.

Olympia's balance sheet as at Dec. 31, 2006, showed total assets
of MYR1.02 billion and total liabilities of MYR2.13 billion.  
Shareholders' deficit of the company reached MYR1.105 billion.




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

ALDA INVESTMENTS: Appoints Terrence John Harris as Liquidator
-------------------------------------------------------------
Terrence John Harris was appointed as liquidator of Alda
Investments Ltd. on March 19, 2007.

The company entered wind-up proceedings on that same day.

The company's liquidator is:

         Terrence John Harris
         PO Box 324, Pukekohe
         New Zealand
         Telephone:(09) 238 9219
         Facsimile:(09) 238 6826


ALLO ALLO: Taps Robert Laurie Merlo as Liquidator
-------------------------------------------------
On March 23, 2007, the shareholders of Allo Allo Ltd., appointed
Robert Laurie Merlo as the company's liquidator.

Mr. Merlo is receiving creditors' proofs of debt until today,
April 27, 2007.

Mr. Merlo can be reached at:

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


ALPINE CONSTRUCTION: Creditors' Proofs of Debt Due on April 30
--------------------------------------------------------------
On March 20, 2007, Andrew Marchel Oorschot was appointed as
liquidator of Alpine Construction Ltd.

Creditors are required to file their proofs of debt by April 30,
2007, to be included in the company's dividend distribution.

The Liquidator can be reached at:

         Andrew Marchel Oorschot
         c/o Ashton Wheelans & Hegan
         Chartered Accountants
         PO Box 13042, Christchurch
         New Zealand
         Telephone:(03) 366 7154


BASE TRAVEL: Undergoes Wind-Up Proceedings
------------------------------------------
On Feb. 22, 2007, the shareholders of Base Travel (NZ) Pty Ltd.
passed a resolution winding up the company's operations.

Brent John Whitnall was appointed as liquidator.

Mr. Whitnall can be reached at:

         Brent John Whatnall
         Horwath Porter Wigglesworth Limited
         PO Box 544, Auckland
         Telephone:(09) 308 1603


DDL&Z LTD: Wind-Up Petition Hearing Set for April 30
----------------------------------------------------
A petition to wind up the operations of DDL&Z Ltd. will be heard
before the High Court of Christchurch on April 30, 2007, at
10:00 a.m.

The Commissioner of Inland Revenue filed the petition before the
Court on March 8, 2007.

The CIR's solicitor is:

         Julia Dykema
         c/o Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception, 518 Colombo Street
         PO Box 1782, Christchurch 8140
         New Zealand
         Telephone:(03) 968 0809
         Facsimile:(03) 977 9853


GOLDRUSH GEM: Faces CIR's Liquidation Petition
----------------------------------------------
The Commissioner of Inland Revenue filed a petition to wind up
the operations of Goldrush Gem Co Ltd.

The petition will be heard before the High Court of Christchurch
on April 30, 2007, at 10:00 a.m.

The CIR's solicitor is:

         Julia Dykema
         c/o Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception, 518 Colombo Street
         PO Box 1782, Christchurch 8140
         New Zealand
         Telephone:(03) 968 0809
         Facsimile:(03) 977 9853


HELI-FLIGHT (NZ): High Court to Hear Wind-Up Petition on May 3
--------------------------------------------------------------
On Jan. 16, 2007, Accident Compensation Corporation filed a
petition to wind up the operations of Heli-Flight (NZ) Ltd.

The High Court at Auckland will hear the petition on May 3,
2007, at 10:45 a.m.

Accident Compensation's solicitor is:

         Dianne S. Lester
         c/o Maude & Miller
         2nd Floor, McDonald's Building
         Cobham Court
         PO Box 50555 or DX SP 32505
         Porirua City
         New Zealand


MULTIMEDIA IMPRESSIONS: Commences Liquidation Proceedings
---------------------------------------------------------
On Feb. 28, 2007, it was resolved through a special resolution
to liquidate the business of Multimedia Impressions Ltd.

Kim S. Thompson was appointed as liquidator.

The company's Liquidator can be reached at:

         Kim S. Thompson
         PO Box 1027, Hamilton
         New Zealand
         Telephone:(07) 834 6027
         Facsimile:(07) 834 6104


RED SECURITY: Court Hearing of Wind-Up Petition Set on April 30
---------------------------------------------------------------
The High Court of Christchurch will hear a petition to wind up
the operations of Red Security NZ Ltd. on April 30, 2007, at
10:00 a.m.

The petition was filed by the Commissioner of Inland Revenue.

The CIR's solicitor is:

         Julia Dykema
         c/o Inland Revenue Department
         Technical and Legal Support Group
         South Island Service Centre
         Ground Floor Reception, 518 Colombo Street
         PO Box 1782, Christchurch 8140
         New Zealand
         Telephone:(03) 968 0809
         Facsimile:(03) 977 9853


UNIPARK AUCKLAND: Will Receive Proofs of Debt Until April 27
------------------------------------------------------------
Unipark Auckland Ltd. appointed Laurence George Chilcott and
Peter Charles Chatfield as the company's liquidators on
March 23, 2007.

Messrs. Chilcott and Chatfield fixed April 27, 2007, as the
deadline for receiving the creditors' proofs of debt.

The Liquidators can be reached at:

         George Chilcott
         Peter Charles Chatfield
         Smith Chilcott Bertelsen Harry
         Chartered Accountants
         Level 11, Shortland Tower One
         51-53 Shortland Street
         PO Box 5545, Auckland
         New Zealand
         Telephone:(09) 379 8035
         Facsimile:(09) 307 8892


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


SAN MIGUEL: Chalks Up PHP10.17 Billion Net Income for 2006
----------------------------------------------------------
San Miguel Corporation reported net income of PHP10.170 billion
for the year ended December 31, 2006, against a PHP8.973 billion
and PHP9.997 billion net income for the years ended December 31,
2005 and 2004.

Consolidated net sales amounted to PHP249.650 billion, 10%
higher than in 2005 while consolidated operating income of
PHP20.558 million is 18% higher than 2005 level.

As of December 31, 2006, the company had total assets of
PHP349.584 billion and total equity of PHP152.529 billion.

The company's financials is available for download at:

   http://bankrupt.com/misc/sanmiguel2006.pdf

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,  
operates food, beverage and packaging businesses.  The company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The company
also manufactures glass, metal, plastic, paper and composites
packaging products.

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.


SAN MIGUEL: Divests Entire Stake in NutriAsia Venture
-----------------------------------------------------
San Miguel Corporation disclosed to the Philippine Stock
Exchange that it has sold its entire minority stake in joint
venture company, NutriAsia San Miguel Holdings Ltd to the
NutriAsia Group.

NutriAsia San Miguel Holdings Ltd. owns 100% of NutriAsia
Pacific Ltd., which in turn owns 84.5% of Del Monte Pacific Ltd.

Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,  
operates food, beverage and packaging businesses.  The company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products.  San Miguel markets its
products both in the domestic and overseas markets.  The company
also manufactures glass, metal, plastic, paper and composites
packaging products.

Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.


SECURITY BANK: Names New Vice President and Declares Dividends
--------------------------------------------------------------
Security Bank Corporation has announced the appointment of
Francia Lina Marcelo as Vice President and Service Channels &
Support Division Head of Branch Banking Operations effective May
16, 2007.

The bank also declared a regular semestral cash dividend of
PHP0.25 per share and a special cash dividend of PHP0.75 per
share, subject to the approval of the Bangko Sentral ng
Pilipinas.  The record and payment dates will be announced after
the bank gets BSP approval.

Makati City-based Security Bank Corporation --
http://www.securitybank.com.ph/-- offers a wide variety of  
financial products and services.  The bank's services include
peso, dollar and third currency deposits, domestic and
international fund transfers, deposit pick-up and payroll
services, and ancillary services.  Security Bank also provides
working capital financing, term arrangements and loan
syndication services.

Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign
Currency Issuer Default Rating, a 'BB' Long-Term Local Currency
Issuer Default Rating, a 'D' Individual Rating and a '4' Support
Rating.


VICTORIAS MILLING: Net Income Doubles for Six Months to Feb. 28
--------------------------------------------------------------
Victorias Milling Company Inc. reported a PHP1.04 billion net
income for the six months ending Feb. 28, 2007, almost doubling
the net income of PHP504.29 million reported for the six months
ending Feb. 28, 2006.

For the period in review, The group posted revenues of PHP2.43
billion, selling expenses of PHP21.74 million, administrative
expenses of PHP87.61 million and other operating expenses of
PHP4.98 million, giving the company an income from operations of
PHP1.35 billion.

As of Feb. 28, 2007, the group had total assets of
PHP9.14 billion, total liabilities of PHP9.85 billion giving the
company a capital deficiency of PHP709.91 million.

The company's financials are available for free at:

   http://bankrupt.com/misc/victorias2006.pdf

Headquartered in Victorias City, Bacolod, Victorias Milling
Company Inc. -- http://www.victoriasmilling.com/-- was  
organized in 1919 and is engaged in the acquisition,
construction, maintenance and operation of sugar mills, as well
as other related business activities.  Through the years, the
company has expanded its operations to include a foundry, a
machine shop, a fabrication shop, a food canning company, an
organic fertilizer plant and a piggery.

                      Going Concern Doubt

After reviewing the company's annual financial statements, C.L.
Manabat & Co., the company's independent auditors, raised
significant doubt on the company's ability to continue as a
going concern.  Citing the company's efforts in implementing its
rehabilitation plan, the auditors also pointed out the company's
accumulated deficit of PHP3.6 billion and PHP3.8 billion as of
August 31, 2006 and 2005, and a capital deficiency of
PHP1.9 billion as of August 31, 2006 and 2005, respectively,
which adversely affected its financial condition and cash flow
position.  Consequently, VMC defaulted on payments of its
maturing liabilities to creditors, which are currently under a
debt restructuring program.


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

LEONG JOO: Court to Hear Wind-Up Petition on May 4
--------------------------------------------------
Chop Ching Hin Pte Ltd., filed a wind-up petition against Leong
Joo Construction Pte Ltd on April 10, 2007.

The High Court Of Singapore will hear the petition on May 4,
2007, at 10:00 a.m.

TME Systems' solicitors is:

         Messrs Lee & Lee
         Road #25-01,
         Capital Tower
         Singapore 068912


PETROLEO BRASILEIRO: Wants US Gulf Coast Oil & Gas Assets
---------------------------------------------------------
Joao Carlos Araujo Figueira -- the Senior Vice President for
Upstream at Petrobras America Inc., Brazilian state-run oil
company Petroleo Brasileiro SA's U.S. subsidiary -- told Dow
Jones Newswires that the parent company seeks to acquire onshore
oil and gas assets in the U.S. Gulf Coast, as part of a plan to
increase its U.S. presence.

According to Dow Jones, Mr. Figueira said that an acquisition
"is on the way."

Dow Jones says that Mr. Figueira told reporters on the sidelines
of the Brazil-Texas Chamber of Commerce annual energy conference
in Houston that Petrobras America's land department is
considering suitable assets in Texas and possibly Louisiana.

Meanwhile, Petroleo Brasileiro is planning to operate the first
Floating, Production, Storage and Offloading vessel in the U.S.
Gulf of Mexico by 2009.  The company plans to spend US$4.5
billion in the U.S. between 2007 and 2011, Dow Jones notes,
citing Mr. Figueira.

Petroleo Brasileiro has no plans to acquire offshore Gulf
reserves or assets.  It will instead increase production from
the prospects it already has in the area, Mr. Figueira told Dow
Jones.

                   About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/-- was founded in  
1953.  The company explores, produces, refines, transports,
markets, and distributes oil and natural gas and power to
various wholesale customers and retail distributors in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's Investors Service.

Fitch Ratings assigned BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB from BB- on June 29, 2006.


SEA CONTAINERS: Court Approves PWC Legal as U.K. Counsel
--------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates obtained authority
from the U.S. Bankruptcy Court for the District of Delaware to
employ PricewaterhouseCoopers Legal LLP as their United Kingdom
pension and labor counsel, nunc pro tunc to Feb. 23, 2007.

As reported in the Troubled Company Reporter on Apr. 16, 2007,
SCL related that the UK pension laws underwent significant
reform from April 2005.  Given the prior decision of management
to engage Kirkland & Ellis LLP as its lead bankruptcy counsel,
the Debtors require the assistance of experienced outside
pension counsel, who can provide advice regarding the new
pension laws, during the pendency of the Chapter 11 cases.

SCL told the Court that PwC Legal's assistance is also required
in respect of UK labor law, predominantly on daily labor law
advice arising in the course of or in relation to the Debtors'
business and the Chapter 11 process, including verification and
endorsement that actions taken by the Debtors to comply with the
Bankruptcy Code do not conflict with the requirements of United
Kingdom labor law.  The Debtors also need assistance on matters
where joint pension and labor law assistance is required.

PwC Legal is expected to:

   (1) as to issues arising from their or their subsidiaries'
       participation in defined benefit pension schemes
       established under U.K. law, including advice in relation
       to regulatory issues and ceasing to participate;

   (2) on daily issues that arise, including verification and
       endorsement that the Debtors' actions comply with the
       Bankruptcy Code and do not conflict with the requirements
       of the U.K.; and

   (3) on contentious matters, including claims brought against
       the Debtors in any court or employment tribunal.

PwC Legal's services will be paid based on the firm's customary
hourly rates:

      Designation                             Hourly Rate
      -----------                           ---------------
      Partners & Heads of Practice Areas    GBP450 - GBP500
      Assistant Solicitors                  GBP275 - GBP350
      Trainee Solicitors                    GBP150 - GBP170

Darryl Evans, Esq., a member of PwC Legal, assures the Court
that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.

Sea Containers Ltd. also discloses that PwC Legal is a member of
PricewaterhouseCoopers LLP's network of firms and is the
associated law firm of PwC in the U.K.  It is a separate legal
entity from PwC.

                       About Sea Containers


Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA,
SCRB)-- http://www.seacontainers.com/-- provides passenger and  
freight transport and marine container leasing.  Registered in
Bermuda, the company has regional operating offices in London,
Genoa, New York, Rio de Janeiro, Sydney, and Singapore.  The
company is owned almost entirely by United States shareholders
and its primary listing is on the New York Stock Exchange (SCRA
and SCRB) since 1974.  On October 3, the company's common shares
and senior notes were suspended from trading on the NYSE and
NYSE Arca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.

The Debtors' exclusive period to file a plan expires on June 12,
2007.  Their exclusive period to solicit acceptances expires on
Aug. 11, 2007.  (Sea Containers Bankruptcy News, Issue No. 14
and 13; Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


STATS CHIPPAC: Earns US$17 Million in First Quarter 2007
--------------------------------------------------------
STATS ChipPAC Ltd. revealed results for the first quarter 2007.

Tan Lay Koon, President and Chief Executive Officer of STATS
ChipPAC said, "Despite the seasonal weakness and lingering
inventory correction by our customers, we were able to achieve
the high end of our guidance for both revenue and profitability.
Our customer diversification, more balanced end markets
exposure, improved operational efficiency and better material
management helped us mitigate much of the seasonal revenue and
gross margin pressure."

Revenue for the first quarter of 2007 increased 1.2% to
US$390.5 million, compared to US$385.7 million in the first
quarter of 2006.  This represents a sequential decline of 6.1%
compared to the fourth quarter of 2006.  On a US GAAP basis, net
income for the first quarter of 2007 was US$17.0 million or
US$0.08 per diluted ADS, compared to net income of US$12.0
million or $0.06 per diluted ADS in the first quarter of 2006.  
Net income for the first quarter of 2007 included US$2.9 million
in share-based compensation expense as required under SFAS
123(R), and also approximately US$6.8 million in expenses
related to the ongoing tender offer from Singapore Technologies
Semiconductors Pte Ltd, a wholly-owned subsidiary of Temasek
Holdings (Private) Limited.

Michael G. Potter, Chief Financial Officer of STATS ChipPAC
said, "Our end market leadership and customer diversification
helped us to keep revenue fairly consistent across the quarter.
The combination of ongoing prudent capital expenditure spending
and continued strong cash flow enabled us to pay down an
additional US$60.5 million in net debt in the quarter.  In the
first quarter of 2007, we incurred approximately US$56.8 million
in capital expenditures which were 14.5% of revenue compared to
21.6% of revenue in year 2006."



================
S R I  L A N K A
================

* Fitch Affirms Sri Lanka's 'BB-' Ratings with Negative Outlook
---------------------------------------------------------------
Fitch Ratings has affirmed the Democratic Socialist Republic of
Sri Lanka's foreign and local currency Issuer Default Ratings of
'BB-' with a Negative Outlook.  The Country Ceiling is affirmed
at 'BB-' and the Short-term foreign currency rating at 'B'.

The Outlook on Sri Lanka's sovereign rating was revised to
Negative in April 2006 in response to concerns that the
deterioration in the security situation threatened to adversely
affect economic performance and sovereign creditworthiness.  
"The affirmation of Sri Lanka's 'BB-' ratings acknowledges that
the feared adverse impact on the economy and sovereign
creditworthiness has yet to materialise" says Paul Rawkins,
Senior Director in Fitch's sovereign team, "but Fitch still
judges that the domestic security situation continues to pose
risks to economic stability and growth and hence the Negative
Outlook remains warranted".

The economy is expanding at its fastest rate for more than two
decades, underpinned by rising domestic and foreign investment,
as well as record inflows of remittances in recent years that
exceeded USD2bn in 2006 (approx. 7% of GDP).  The foreign
exchange reserves of the Central Bank of Sri Lanka have also
increased, to USD2.5bn, providing more than four months import
cover and compared to USD550m of public foreign debt repayments
due in 2007.  Gross and net external debt relative to GDP and
current account receipts modestly declined despite the current
account deficit widening to almost 5% of GDP, in part due to the
higher cost of oil imports.  In addition, donor and other
capital inflows continue to be robust.

The elimination of fuel subsidies helped the government to
outperform its fiscal targets in 2006, although the deficit
remained high at 8.4% of GDP (excluding grants).  Public debt
declined slightly in 2006 but, even taking account of the low
cost of much of the debt owed to foreign creditors, it remains
high by the standards of rating peers at 93% of GDP and interest
payments on the debt absorb almost 30% of government revenues.
Inflation has risen sharply, partly but not wholly as a result
of higher fuel and administered prices.  Running at close to
17%, its' highest level for almost 10 years, it is prompting a
tightening of monetary policy.  Ensuring that inflation is
brought back towards single digit levels is essential in Fitch's
opinion for sustaining strong economic growth and reducing the
government's debt servicing costs.

Over the medium term, concerted fiscal consolidation is required
to reduce the vulnerability of the economy and public finances
to adverse shocks and to smooth the transition to less
concessional sources of fiscal and external funding.  However,
the government's target of reducing public debt to 76% of GDP by
2010 is potentially at risk if the security situation were to
adversely affect economic growth and delay planned reductions in
the budget deficit from last year's level of 8.4% of GDP.
Consequently, Sri Lanka's sovereign ratings remain under
downward pressure given the uncertain outlook for the security
situation.

"A further deterioration in the security situation to the point
where it adversely affects Sri Lanka's credit fundamentals would
lead to a downgrade of the sovereign ratings" says Rawkins.
"Conversely, the Outlook could revert to Stable given clear
signs of fiscal consolidation, a reduction in inflation and, in
Fitch's judgement, a material diminution in the risk to
sovereign creditworthiness from the conflict".


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

DAIMLERCHRYSLER AG: Unions Remain Opposed to Chrysler Sale
----------------------------------------------------------
Representatives from the United Auto Workers, the Canadian Auto
Workers and IG Metall unions reiterated their opposition to
DaimlerChrysler AG's plan to sell Chrysler Group, especially if
private equity groups take over, Gina Chon reports for The Wall
Street Journal.

The union leaders said "it made absolute sense to hold on to
Chrysler" in the wake of a restructuring plan and new product
launches as they made their case during a meeting in Germany
with DaimlerChrysler Chief Executive Dieter Zetsche, the WSJ
states.

However, Ms. Chon notes that the labor representatives learned
nothing new about the looming sale as Dr. Zetsche repeated what
he has said publicly: The company is talking to potential
partners and all options were on the table.

The TCR-Europe reported on April 24 that UAW members, who have
proposed a 70% employee-stock-ownership plan for Chrysler, met
with representatives of billionaire investor Kirk Kerkorian's
Tracinda Corp., which has submitted a US$4.5 billion bid for the
U.S. unit.

The company is presently negotiating with all Chrysler bidders,
including Cerberus Capital Management LP; joint bidders
Blackstone Group and Centerbridge Capital Partners LP; and the
tandem of Magna International Inc. and Onex Corp., but has
ignored Tracinda Corp.

                      About DaimlerChrysler

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

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

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.

=============
V I E T N A M
=============

* S&P Raises Vietnam's Banking Industry Country Risk Assessment
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its
Banking Industry Country Risk Assessment on Vietnam to Group 9
from Group 10.  This action primarily reflects improved economic
risk environment due to the country's favorable economic growth
prospects, underpinned by investments and productivity gains and
improving (although still inadequate) infrastructure.

This improvement in the banking industry country risk is a
positive element that underpins all bank credit ratings in
Vietnam.  This type of action alone will not automatically lead
to upgrades of the financial institutions in a specific country,
but it could contribute to a change in a bank's ratings. Other
countries included in Group 9 are: Russia, Costa Rica and
Guatemala.

"Vietnam's transition to a market economy remains cautious and
gradual, but favorable endowments, high saving and investment
ratios and strong export potential provide a solid basis for
medium-term growth prospects," said Standard & Poor's credit
analyst Ritesh Maheshwari.

There is little near-term risk to Vietnam's model of
development.  The country's main challenge is to rectify the
prevailing structural, institutional and legal deficiencies. In
addition, political constraints stemming from a highly opaque
and centralized decision-making process are slowing its
transition to a market economy.

Vietnam's banking system is at a nascent stage of development
given its short history of commercialization initiative and
prolonged control by inefficient state-owned lenders and
borrowers.  The much-needed infusion of best practices and
expertise is slow and available to a small segment of
institutions with foreign ownership. State-owned commercial
banks continue to dominate the banking industry, accounting for
about 70% of the banking system's credit.  Asset quality remains
weak by regional and global standards.  Risk management
capabilities are largely rudimentary.  Regulatory supervision is
improving but the regulatory loan classification is below global
best practices.  Financial disclosure levels also do not compare
favorably with its regional peers.

The BICRA reflects the strengths and weaknesses of a country's
banking system relative to those in other countries.  BICRAs
classify countries into 10 groups ranging from the strongest
banking system (Group 1) to the weakest (Group 10) from the
perspective of country risk.  Standard & Poor's analyzes the
credit standing of financial institutions in the context of
broad economic, regulatory, legal and competitive environment in
which they operate.  This sectoral analysis is integral to
estimating the probability of a banking crisis, the potential
severity of fallout in the event of a crisis, and the
fundamental strength and creditworthiness of individual
financial institutions operating in a country.


* Fitch Says Global Banking Positive Rating Bias Hits New High
--------------------------------------------------------------
Fitch Ratings says in a quarterly report that at the end of
Q107, 16.3% of global bank ratings were assigned Positive
Outlooks, the highest level recorded since the report began.  
This increase was driven by emerging markets where a number of
banks benefited from changes to their sovereign Outlooks.

The emerging markets' Positive Outlooks increased to almost 23%
overall from around 16% in Q406.  The majority of global
Positive Outlooks are in emerging markets even though fewer
emerging market banks are rated.  Within each region -- emerging
Asia, emerging Americas, Middle East and Africa -- around a
quarter of the banks' rating Outlooks are Positive.  In emerging
Asia, the Positive Outlooks are dominated by Indonesia following
a similar change to the Indonesian sovereign.

By contrast, the number of Positive Outlooks remained stable in
the developed markets at 11.5%.  In the developed Americas and
Europe, several banks with Positive Outlook at end-Q406 were
upgraded.  Several of these upgrades were high-profile US
institutions, which Fitch believes will benefit from their
diversified franchises.  In Japan, Positive Outlooks - some of
them maintained despite negative events - continued to reflect
the improved robustness of major domestic banks.

Unlike the last two quarters of 2006, in Q107, a stronger
positive bias in rating Outlooks was matched by a stronger
positive bias in rating actions.  The ratio of positive actions
to negative actions -- at 12.14:1 -- was the second highest
since the commencement of the series due to a large number of
Positive Outlook changes.  In addition, upgrades were, in
contrast to the larger number of Positive Outlooks in emerging
markets historically, mainly in developed markets.  Fitch
believes that this could be explained by the greater dependence
of emerging market bank ratings on sovereign ratings.  The total
number of rating actions in Q107 was 92, split equally between
developed and emerging markets and upgrades included
institutions in Japan, as well as the US.

The report, "Global Bank Rating Trends Q107", is available on
Fitch's public Web site at http://www.fitchratings.com



* S&P Says Asian Banking Systems' Financial Stability Improved
--------------------------------------------------------------
The financial stability of the Asian banking system has further
improved on the back of strong economic growth and structural
reforms, Standard & Poor's Ratings Services said in a series of
recently released banking reports.  In the reports, Standard &
Poor's has also for the first time revealed the number of
notches up it gives to the credit ratings on systemically
important banks operating in countries which it classifies as
"interventionist," where the government or regulator is highly
likely to intervene directly and rescue a failing bank.

These views were revealed in the Asia Banking Outlook 2007-2008
Series, which contains three articles titled "Banking Industry
Risk Analysis: Asian Banking Systems," "Asian Banking Systems
Powering Ahead, Risks Still On The Horizon," and "Asia-Pacific
Bank Ratings And The Role Of External Support."

In the article titled "Asian Banking Systems Powering Ahead,
Risks Still On The Horizon," Standard & Poor's points out that
reforms undertaken across the region have improved the economies
in general and the individual banking systems in particular.
"Fundamental improvements in the creditworthiness of the banking
industries have been noted across Asia," said Standard & Poor's
credit analyst Ritesh Maheshwari. "Asian banks are now in a
position to face impending challenges from a position of
strength."

"The world has been enjoying an unusual period of growth that
boosted the effects of those measures," said Standard & Poor's
credit analyst Ping Chew, managing director for Corporate and
Government Services group in Greater China, Southeast Asia, and
India.

"Asia has enjoyed good corporate earnings, relative monetary
stability, healthy economic growth, and restructurings that have
boosted the region's bank performance and lifted assets quality.
Even so, the possibility of economic and industry risks,
unexpected shocks, and the inevitable cyclical slowdown could be
just around the corner," Mr. Chew said.

However, medium-term risks are still worth monitoring. With the
credit cycle nearing its peak, however, Asia's banking systems
could face risks from a weakening U.S. consumer demand, medium
to high economic and industry risks, and unexpected shocks.
Additionally, factors like rising interest rates, higher
inflation, runaway asset prices, and the ever-present threat of
avian flu pose immediate threats.  Although risk management
practices and regulatory environments have generally
strengthened since the Asia financial crisis, an economic
slowdown would be the litmus test for the systems' structure and
institutional strengths, even as most of them are highly likely
to pass it.

In its review of the banking system in Asia, Standard & Poor's
also categorizes the Asia-Pacific governments as
"Interventionist," "Supportive," or "Support Uncertain," based
on the likelihood, form, and extent of support expected to be
available from the respective governments.  Standard & Poor's
bank credit ratings are based on fundamental analysis that
encompasses both institution-specific and system-wide factors,
including external support.

"We first determine the bank's stand-alone credit profile,
represented by Standard & Poor's Bank Fundamental Strength
Rating (BFSR)," said Standard & Poor's regional criteria
officer, Terry Chan.  "On top of this, we add one notch or more
for expected system support for systemically important banks in
the 'Interventionist' systems."

Banking systems in Australia, Hong Kong, Singapore, and
Pakistan, are categorized as "Supportive." New Zealand is
categorized as "Support Uncertain," where the government may
support banks but policy is less predictable because of reliance
on market solutions.  Hence, in these two types of systems, the
ratings of systemically important banks do not include any
uplift.

In its report on external support, Standard & Poor's has also
announced for the first time the number of notches of external
support incorporated in the rating of each systemically
important bank in some interventionist countries, namely, China,
Japan, South Korea, Taiwan, Thailand, and Vietnam









                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Azela Jane Taladua, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Tara Eliza Tecarro,
Freya Natasha Fernandez, Frauline Abangan, and Peter A. Chapman,
Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.
   
                 *** End of Transmission ***