/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060407.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, April 07, 2006, Vol. 9, No. 070 Headlines A U S T R A L I A & N E W Z E A L A N D ACCLAIM PHOTOGRAPHY: To Hold Final Meeting Today AIR NEW ZEALAND: Plans Fare Increase and More Job Cuts AVILIND PTY: Liquidator to Distribute Assets AWB LIMITED: Set to Challenge Cole Over Apology Letter Ruling BAYER CROPSCIENCE: Winds Up Business CARTER HOLT: Moody's Withdraws Ba1 Senior Unsecured Rating CELEBRATING PTY: Court Appoints Liquidator D&D ASH: Members and Creditors Convene in Final Meeting DEALERNET PTY: Receivers and Managers Appointed ESQUIRE IRON: Members Agree on Wind-up FATBOY HOLDINGS: Court to Hear Liquidation Petition on April 13 GADSEN PTY: Prepares to Pay Dividend INTERNATIONAL FREIGHT: Decides to Close Operations K.D.K. CONSTRUCTIONS: Members Opt for Liquidation LABSONICS SYDNEY: Members to Receive Wind-up Report LAVENDOU ENTERPRISES: Placed Under Voluntary Liquidation MACDOR INVESTMENTS: Begins Wind-up Proceedings MTM DESIGNS: Supreme Court Issues Wind-up Order NATIONAL AUSTRALIA: Ex-Forex Trader Gets 16 Months Jail Term NATIONAL AUSTRALIA: Fitch Affirms Ratings with Stable Outlook NZ FARMING: Prepares to Exit Register of Companies OWNITT HOMES: Begins Liquidation of Assets PITTORINI FISHERIES: Distributes Final Dividend Today PRATT INDUSTRIES: Liquidator Seeks Firm's Removal from Registrar QANTAS AIRWAYS: Denies Possible Sale of Catering Business QANTAS AIRWAYS: Opens New Sydney Distribution Center QUADRIVIUM PTY: Liquidator to Discuss Wind-up with Members SEAMART PROPERTIES: Taps BDO Spicers Receivers and Managers SEAMART RESTAURANT: Receivers and Managers Named SOUTHSIDE PERMANENT: Names Boris Van Delden as Liquidator SOUTH WEST PACIFIC: Members Opt for Voluntary Liquidation SUPREME CONCRETE: Members to Shut Down Operations WATERJET DESIGNS PTY: To Declare Dividend Today WEB EXCELLENCE: Telecom New Zealand Files Liquidation Petition WIDGIEWA PTY: Enters Voluntary Liquidation C H I N A & H O N G K O N G AGEAN CONSULTANTS: Creditors Must Prove Debts by April 24 AGRICULTURAL BANK: Rural Bank Giants to Get Reform Push BIGTRADE LIMITED: To Hold Final Meeting on April 24 BROWNHILL TRADING: Names Official Liquidator CARILLON SHIPPING: Members Convene to Discuss Winding Up CENTURY JEWELRY: Approves Special and Ordinary Resolution CHUNG WIN: Members Convene to Discuss Winding Up CLASSIC DRAGON: Members' Final Meeting Scheduled on April 24 CTS TELECOMMUNICATIONS: Liquidator to Present Wind-up Report FIRST RATE INDUSTRIES: Final Meeting Slated on April 28 GUANGDONG KELON: Agree to Extend Sales Agreement HOTEL WENSHA: Final Meeting Fixed on May 3 HUTCHISON CHINA: Appoints Joint Liquidators JAMSUN DEVELOPMENT: Members' Final Meeting Scheduled on April 25 MEESPIERSON IPB ASIA: Appoints Official Liquidator NEW CHINA HONG KONG TRADING: To Hold Final Meeting on April 21 NEW CHINA HONG KONG INDUSTRIAL: Final Meeting Fixed on April 21 NEW CHINA HONG KONG ENTERPRISES: Final Meeting Set April 21 NEW CHINA HONG KONG ESTATE: AGM Slated for April 21 NINGBO BIRD: Xinhua Far East Downgrades Rating to BB- PIFCO OVERSEAS: Names Official Liquidator ROCKY LIMITED: Pui Chiu Wing Named Liquidator STEADINVEST COMPANY: Agrees To Wind Up Operations STEADINVEST COMPANY: Creditors' Proofs of Debt Due on April 21 STOCKWELL ONLINE: Members Resolve to Wind Up Firm TAIKOO NAVIGATION: Enters Wind Up Process THAI-ASIA FUND: Placed Under Liquidation WINDSOR HOTELS: Schedules Final Meeting on May 3 WINNA LIMITED: Names Official Liquidator WINNA LIMITED: Receiving Creditors' Proofs of Debt by April 25 WOA HOLDINGS: Final Meeting Set for May 3 WONG & OUYANG: Members to Meet Liquidator on May 3 YOUNG RESTAURANT: Member's Final Meeting Set on April 28 I N D I A FERTILISERS AND CHEMICALS: Clocks 21% Production Boost INDIA CEMENTS: Grantham Mayo Continues Stake Disposal TRAVANCORE COCHIN: KIRFB Offers to Restructure Loan I N D O N E S I A GARUDA INDONESIA: Resumes Plane Services to Seoul NEWMONT MINING: To Sell Unprofitable Sumatra Gold Mine J A P A N JAPAN AIRLINES: Broken Plane Flap Causes Landing Mishap JAPAN AIRLINES: President Asked to Testify on Maintenance Errors K O R E A HYUNDAI MOTOR: March Sales Reach 246,126 Units HYUNDAI MOTOR: Prosecutors Urge Chairman to Return Home LG CARD: Woori May Not Enter Bid QUALCOMM INCORPORATED: FTC Investigates Korean Unit SSANGYONG MOTOR: March Sales Up 7.5% M A L A Y S I A APEX EQUITY: Repurchases 130,400 Shares for MYR59,173 AVANGARDE RESOURCES: Court Grants Restraining Order COMSA FARMS: Bourse Defers Delisting Pending Appeal JOHAN HOLDINGS: Books Losses on Lower Sales and FRS Adoption KL INFRASTRUCTURE: Disposes of MTrans Shares KRAMAT TIN: Securities Commission Grants Proposed Waiver KYM HOLDINGS: Post Profits in 4Q/FY2005-06 KYM HOLDINGS: Shareholders OK Land Sale to Ascotsun MBF HOLDINGS: Bids for 2.41% Carpenter Shares OLYMPIA INDUSTRIES: Faces Possible Delisting OMEGA HOLDINGS: Sees No Developments to Regularization Plan PAN MALAYSIA: Proposes to Amend Memorandum of Association SOUTHERN BANK: Lists and Quotes Additional Shares TEXCHEM RESOURCES: Enters Chinese Market VTI VINTAGE: Unit Accepts Option to Purchase Property P H I L I P P I N E S FIRST OCCIDENTAL: Court to OK Assets Distribution LAFAYETTE MINING: Probe Group Seeks to Extend Deadline RB JAGNA: To Conclude Wind-up Proceedings RB LIBONA: Court to Approve Distribution of Assets RB SAGAY: To Complete Wind-Up RB STA. CRUZ: Seeks Court Approval on Assets Distribution S I N G A P O R E ACCORD CUSTOMER: SGX-ST Lays Out Conditions on Listing of Shares CITIRAYA SINGAPORE: Proofs of Debt or Claim Due on April 19 CTC CONTRACTORS: Contributories to Meet on April 18 EMTEC MAGNETICS: Prepares to Pay Dividend SINPON PRIVATE: Creditors Should Prove Debt by April 17 VANGUARD REALTY: Accepting Proofs of Debt Until April 17 T H A I L A N D PRASIT PATANA: Records 67.35% Increase in 2005 Net Profit SIAM AGRO-INDUSTRY: 2005 Net Profit Soars by 3,000% THAI-GERMAN PRODUCTS: Incurs THB29.47 Million Net Loss in 2005 * Large Companies With Insolvent Balance Sheets - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ACCLAIM PHOTOGRAPHY: To Hold Final Meeting Today ------------------------------------------------ A final meeting of Acclaim Photography (New South Wales) Pty Limited will be conducted today, April 7, 2006. At the meeting, Liquidator Richard Albarran will present his final account regarding the Company's wind-up operations. Contact: Richard Albarran Liquidator c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia AIR NEW ZEALAND: Plans Fare Increase and More Job Cuts ------------------------------------------------------ Air New Zealand may implement fare increases and deeper job cuts due to a rise in fuel prices and the expiration of its hedging contracts, Bloomberg News relates. Air New Zealand Chief Executive Officer Rob Fyfe said that jet fuel prices in Singapore rose to more than US$79 a barrel this week, nearing a six-month high. He said that if jet fuel prices stay at current levels, then the benefits of the airline's jet fuel hedging will start to run out this financial year, and plane fares could go up. Air New Zealand expected its fuel bill to have risen by about NZ$550 million in the three years to June 30, 2006, while pre- tax earnings are forecast to be NZ$140 million, compared with NZ$235 million in the previous corresponding fiscal year. The Age recounts that the carrier has raised fares four times since May 2004 as fuel prices have surged. Moreover, the airline said that it would slash 8% of its 10,800 workforce to reduce costs. About Air New Zealand Headquartered in Christchurch, New Zealand, Air New Zealand -- http://www.airnz.co.nz/-- is an international and domestic airline group which provides air passenger and cargo transport services within New Zealand, as well as to and from Australia, the South West Pacific, Asia, North America and the United Kingdom. Air New Zealand also encompasses business units providing engineering and ground handling services. Subsidiaries extend to booking systems, travel wholesaling and retailing services. In 2002, Air New Zealand restructured to a no-frills domestic service in order to curb losses from unprofitable routes. It is presently working on cutting costs on its services to and from Australia, and is upgrading its long-haul fleet as part of a recovery program from near-collapse in 2001. AVILIND PTY: Liquidator to Distribute Assets -------------------------------------------- At a general meeting on February 22, 2006, the members of Avilind Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets. J. W. Cunningham was named as liquidator to manage the Company's wind-up activities. AWB LIMITED: Set to Challenge Cole Over Apology Letter Ruling ------------------------------------------------------------- AWB Limited is planning to launch a legal action with the Federal Court next week to challenge Commissioner Terence Cole's decision lifting a non-publication order on a draft apology written in the name of former AWB managing director Andrew Lindberg, The Advertiser reports. The Troubled Company Reporter - Asia Pacific reported on March 28, 2006, that after a scandal on AWB's payment of almost AU$300 million in kickbacks to then Iraqi president Saddam Hussein's regime erupted last year, the wheat exporter hired a United States-based corporate crisis expert Peter Sandman to draw up an apology. However, Mr. Lindberg and the AWB Board of Directors junked the apology plan, and decided to go to the Cole Commission instead and profess ignorance and innocence. The Cole Inquiry, headed by Commissioner Cole, found out that in the draft apology, which drawn up in December 2005, AWB owned up to its shady dealings in Iraq. The draft apology was shown to the Cole Inquiry only last month. AWB never released the document and also wanted the inquiry to keep it secret, claiming that it had been handed over by mistake and should be covered by legal professional privilege because it contained confidential information, The Herald Sun relates. On April 5, 2006, Commissioner Cole lifted his suppression order on the apology document after Foreign Minister Alexander Downer and Deputy Prime Minister Mark Vaile handed in sworn statements about the AWB kickbacks scandal to the Inquiry. Commissioner Cole gave AWB until 10:00 a.m. on April 6 to challenge his ruling in court. According to The Herald Sun, AWB's directors subsequently held an emergency board meeting and decided to commence a legal action in the Federal Court in Melbourne in a last-ditch attempt to stop the profuse written apology from being released to the public. AWB spokesman Peter McBride told ABC News Online that the board feels that the document, and others to do with AWB's internal investigation into the scandal, should be protected by legal professional privilege. Yet, Commissioner Cole ruled that the document was not prepared for the purpose of legal advice and so could be published. The Advertiser cited AWB's barrister James Judd, QC, as telling the Cole inquiry that the wheat exporter had already filed an application with the Court and a directions hearing would be held next Wednesday, April 12, 2006. Mr. Judd believes that the issue will not take long to resolve and that it is something that can be done expeditiously. About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to $5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. Previously a low profile organization, AWB made headlines in late 2005 when it was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. BAYER CROPSCIENCE: Winds Up Business ------------------------------------ At a general meeting on February 24, 2006, members of Bayer Cropscience Superannuation Pty Limited agreed that the Company must voluntarily commence a wind-up of its operations. Neil P. Wickenden was then appointed as liquidator. Contact: Neil P. Wickenden Liquidator Level 19, 207 Kent Street Sydney, New South Wales 2000 Australia CARTER HOLT: Moody's Withdraws Ba1 Senior Unsecured Rating ---------------------------------------------------------- Moody's Investors Service today withdrew the Ba1 senior unsecured ratings of Carter Holt Harvey Limited. The ratings have been withdrawn due to Moody's expectation that adequate information will not be available to maintain the ratings. The ratings withdrawn are: * Carter Holt Harvey Limited US$150 million 9.50% senior debentures, due 2024 -- Ba1 * Carter Holt Harvey Limited US$150 million 8.375% senior debentures, due 2015 -- Ba1 The withdrawal is in response to the recent announcement that the Rank Group had acquired over 90% of the issued shares in CHH, allowing for the compulsory acquisition of the remaining 10% of issued shares. As a consequence, Moody's expects that CHH will cease to be listed on the New Zealand Stock Exchange and will become a private company. Accordingly, Moody's expects information available to maintain the current ratings will be insufficient. CHH is a large integrated forest products company based in Auckland, New Zealand. It has production facilities for pulp, paper, wood and packaging products in Australia, New Zealand and China. CELEBRATING PTY: Court Appoints Liquidator ------------------------------------------ On February 24, 2006, the Federal Court of Australia appointed Christopher J. Palmer as liquidator in the winding up of Celebrating Pty Limited. Contact: Christopher J. Palmer Liquidator O'Brien Palmer Level 4, 23-25 Hunter Street Sydney, New South Wales 2000 Australia D&D ASH: Members and Creditors Convene in Final Meeting ------------------------------------------------------- Members and creditors of D&D Ash Pty Limited will hold a final meeting today, April 7, 2006, to get an account of the manner of the Company's wind-up and property disposal from Liquidators Paul Desmond Sweeney and Terry Grant Van der Velde. Contact: Paul D. Sweeney Terry G. Van der Velde c/o SV Partners Pty Limited Level 16, 12o Edward Street Brisbane, Queensland Australia Web site: http://www.svpartners.com.au/ DEALERNET PTY: Receivers and Managers Appointed ----------------------------------------------- On February 10, 2006, Andrew John Love, Mark Maxwell Taylor and Peter Damien McCluskey were appointed as receivers and managers of all assets and undertakings of Dealernet Pty Limited. Contact: Andrew J. Love Mark M. Taylor Receivers Level 17, 2 Market Street Sydney, New South Wales 2000 Peter D. McCluskey Receiver Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia ESQUIRE IRON: Members Agree on Wind-up -------------------------------------- At an extraordinary general meeting on March 1, 2006, the members of Esquire Iron & Timber Fabrications Pty Limited decided to voluntarily wind up the Company's operations. Subsequently, Victor Raymond Dye and Nicholas Giasoumi were appointed as joint and several liquidators at a creditors' meeting held on the same day. Contact: Victor R. Dye Nicholas Giasoumi Joint Liquidators Dye & Rennie Chartered Accountants Suite 8, 260 Auburn Road Hawthorn 3122, Australia FATBOY HOLDINGS: Court to Hear Liquidation Petition on April 13 --------------------------------------------------------------- On February 1, 2006, the High Court of Auckland received an application to liquidate Fatboy Holdings Limited. The Application will be heard before the High Court on April 13, 2006. Contact: Commissioner of Inland Revenue Simon John Eisdell Moore Crown Solicitor Meredith Connell Level Seventeen, Forsyth Barr Tower 55-65 Shortland Street P.O. Box 2213 or D.X. C.P. 24-063 Auckland New Zealand Telephone (09) 336 7556 GADSEN PTY: Prepares to Pay Dividend ------------------------------------ Gadsen Pty Limited will declare its first and final dividend today, April 7, 2006. Creditors who were not able to prove their claims will be excluded from the benefit of the dividend. Contact: Martin J. Green Liquidator GHK Green Krejci Level 9, 179 Elizabeth Street Sydney, New South Wales 2000 Australia INTERNATIONAL FREIGHT: Decides to Close Operations -------------------------------------------------- The members of International Freight Systems Australia Pty Limited held a meeting on March 6, 2006, and agreed to shut down the Company's operations. John Kenneth Thompson was named as liquidator to oversee the wind-up process. Contact: John K. Thompson Liquidator Level 13, 210 George Street Sydney, New South Wales 2000 Australia K.D.K. CONSTRUCTIONS: Members Opt for Liquidation ------------------------------------------------- At K.D.K. Constructions Pty Limited's general meeting on February 28, 2006, members concurred that it is in the Company's best interests to liquidate its operations. Liquidator Richard Herbert Judson was appointed to oversee the wind-up. Contact: Richard H. Judson Liquidator Members Voluntarys Pty Limited PO Box 819, Moorabbin Victoria 3189, Australia LABSONICS SYDNEY: Members to Receive Wind-up Report --------------------------------------------------- The members of Labsonics Sydney Pty Limited will convene today, April 7, 2006, to receive Liquidator Richard Judson's account regarding the Company's completed wind-up and disposal of the Company's property. Contact: Richard Judson Liquidator Judson & Co. Chartered Accountants 1st Floor, 10 Park Road Cheltenham 3192, Australia Telephone: 9585 5227 LAVENDOU ENTERPRISES: Placed Under Voluntary Liquidation -------------------------------------------------------- At a meeting of Lavendou Enterprises Pty Limited on March 1, 2006, creditors agreed that it is in the Company's best interests to wind up its operations. Contact: R. E. Murphy Liquidator Level 9, 46 Edward Street Brisbane, Queensland 4000 Australia MACDOR INVESTMENTS: Begins Wind-up Proceedings ---------------------------------------------- At an extraordinary general meeting on February 28, 2006, the members of Macdor Investments Pty Limited resolved to cease the Company's business operations. Contact: Dean G. Scott Liquidator D. G. Scott & Co. Chartered Accountants 2nd Floor, Dowie House 83-89 Currie Street, Adelaide South Australia 5000 Australia MTM DESIGNS: Supreme Court Issues Wind-up Order ----------------------------------------------- On March 2, 2006, the Supreme Court of Australia ordered the winding up of MTM Designs Pty Limited, and appointed Steven Nicols as liquidator. Contact: Steven Nicols Liquidator Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia NATIONAL AUSTRALIA: Ex-Forex Trader Gets 16 Months Jail Term ------------------------------------------------------------ National Australia Bank Ltd.'s former foreign exchange options trader, Gianni Gray, was sentenced to 16 months in prison after pleading guilty to three counts of dishonestly using his position as a NAB employee for personal gain. According to a statement from the Australian Securities and Investments Commission, Judge Chettle of the Country Court of Victoria ordered Mr. Gray to serve a minimum of eight months before he can be released on account of good behavior. As reported by the Troubled Company Reporter - Asia Pacific on March 24, 2006, Mr. Gray, as well as two other traders -- Vincent Ficarra and David Bullen -- were charged by the ASIC after investigations into an unauthorized foreign exchange trading that cost NAB AU$326 million. Messrs. Ficarra and Bullen, however, pleaded not guilty to allegations that they placed false information into NAB's accounting systems to falsely inflate the profit results of the forex options desk between September 2003 and January 2004. Bloomberg News recounts that, specifically, Mr. Gray helped enter three "fictitious" foreign exchange trades worth AU$117 million, the court was told. These helped the trading desk meet its profit target of AU$37 million in fiscal 2004, when in fact it lost AU$5 million. He also helped enter a fictitious options trade resulting in a false profit of US$111.5 million. Judge Chettle told Mr. Gray that he committed a calculated and sophisticated fraud, but because he had shown genuine remorse, pleaded guilty and promised to cooperate in solving the case by giving evidence in the Ficarra and Bullen trial, Judge Chettle reduced the sentence, which otherwise would have been 26 months in prison and with a 15 month minimum, the Australian Associated Press relates. Moreover, Mr. Gray had already repaid the AU$195,000 performance bonus that he improperly received for the 2003/2004 financial year. The former head of the forex options desk, Luke Duffy, on the other hand, is also serving a minimum 16 months in jail after admitting, in June 2005, that he had a role in the trading scandal, the AAP says. According to the ASIC Statement, the matter was prosecuted by the Commonwealth Director of Public Prosecutions. * * * National Australia Bank is undertaking a three-year revival program after its 2004 foreign exchange trading scandal and several profit downgrades in 2005 that hammered its share price. The Bank is working to recover from a tumultuous two years marked by a boardroom upheaval and disintegration, executive departures and huge job cuts. As of February 2006, NAB said that it was moving ahead and that its crises were over. NAB further stated that planning for its post-recovery phase was under way. As reported in TCR Europe on Jan. 12, NAB is cutting the number of Clydesdale banks from 217 to 153 as people abandon traditional banking to Internet and telephone method of transacting business. It is closing 30 branches in Scotland, and 17 in England. NATIONAL AUSTRALIA: Fitch Affirms Ratings with Stable Outlook ------------------------------------------------------------- Fitch Ratings has affirmed National Australia Bank's ratings at Long-term Issuer Default Rating 'AA', Short-term 'F1+', Individual 'A/B', and Support '2' following a review of the bank. The Outlook for the rating is Stable. The Long-term IDR, Short-term and Individual ratings for NAB reflect the prominence and diversity of its banking and wealth management business, the bank's generally robust credit risk management framework, satisfactory asset quality and adequate capitalization. NAB's Support rating reflects its relative importance to the Australian banking system and economy. Fitch notes that NAB's restructuring program, which involved aligning business units along geographic lines rather than by product, is progressing well, although cultural reform is likely to require several more years to fully implement. However, the agency notes that the program should provide NAB with a platform for growth in the medium term. NAB's net profit increased by 35% to AUD4,606 million in FY05; this figure includes a number of significant items including the sale of two Irish banks and restructuring expenses, as well as a revaluation profit relating to the group's wealth management subsidiaries. On an ongoing basis, operating profit grew by a more modest 7% during FY05, driven by an increased return from the bank's life insurance and fund management subsidiaries, highlighting the benefit of earnings diversity provided by these businesses. NAB's asset quality remains sound; at FYE05, gross impaired assets were 0.39% of gross loans, whilst net of specific provisions they equated to 3.1% of Tier 1 capital. The majority of NAB's funding requirements are met by retail deposits, with the remainder sourced from domestic and offshore wholesale markets. At FYE05 the bank reported a Tier 1 capital ratio of 7.9%, while pure common equity to risk-weighted assets was 5.5%; Fitch views these ratios as adequate. NZ FARMING: Prepares to Exit Register of Companies -------------------------------------------------- NZ Farming Services Limited will be removed from the New Zealand Register following the completion of the Liquidator's report on the Company's liquidation. Any objection to the removal should be filed with the Registrar of Companies not later than May 5, 2006. OWNITT HOMES: Begins Liquidation of Assets ------------------------------------------ Ownitt Homes (2000) Limited have commenced the liquidation of its assets on March 24, 2006. Liquidator Robert Foster gives creditors until May 3, 2006, to prove their debt or claims. Failure to comply will exclude creditors from the benefit of any distribution the Company will make. Contact: Robert Foster Liquidator BDO Spicers Chartered Accountants 29 Northcroft Street Takapuna, Auckland New Zealand Telephone: (09) 486 2125 Facsimile: (09) 486 4026 PITTORINI FISHERIES: Distributes Final Dividend Today ----------------------------------------------------- Pittorini Fisheries Pty Limited will declare a first and final dividend today, April 7, 2006. Creditors who were not able to prove their claims will not benefit from the dividend distribution. PRATT INDUSTRIES: Liquidator Seeks Firm's Removal from Registrar ---------------------------------------------------------------- The liquidator of Pratt Industries Limited has applied for the removal of the Company from the New Zealand Register on grounds that the Company has: -- ceased to carry on business; -- discharged in full its liabilities to all its known creditors; and -- distributed its surplus assets in accordance with its constitution and the Act The company has no surplus assets after paying its debts in full. An objection to the removal must be sent to the Registrar of Companies not later than April 28, 2006. Contact: Desmond Clinton Benson Liquidator Horwarth Barlow Lendrum Limited Chartered Accountants P.O. Box 282, Wanganui New Zealand Telephone: (06) 345 4172 Facsimile: (06) 345 4201 QANTAS AIRWAYS: Denies Possible Sale of Catering Business --------------------------------------------------------- Qantas Airways has denied claims by workers that the sale of Qantas Flight Catering Limited, the airline's catering business at the Adelaide airport, is imminent, ABC News Online relates. According to the report, some of Adelaide's 140 workers with Qantas Flight Catering say that they have been told the operation will be sold within a fortnight and jobs could be lost. Qantas admitted, though, that it is talking with various players in the industry and that selling its catering business is an option. The airline has not made any decision on the possible sale of the catering divisions in capital cities around Australia. About Qantas Headquartered in Sydney, Australia, Qantas Airways -- http://www.qantas.com.au/-- is the world's second oldest airline and is also recognized as one of the leading long- distance airlines, having pioneered services from Australia to North America and Europe. The Qantas Group employs approximately 38,000 staff across a network that spans 145 destinations in Australia, Asia-Pacific, Americas, Europe and Africa. The Qantas Group also operates a diverse portfolio of airline-related businesses, including Engineering Technical Operations and Maintenance Services, Airports and Catering, Qantas Freight, Qantas Holidays, Qantas Defence Services and Qantas Consulting. Qantas started having problems in 2003 with the ill effects of the Iraq War and the SARS outbreak, on top of the already difficult period following the events of the 9/11 terrorist attacks, the Afghanistan war and the terror threats, which lead to a downturn in bookings to other Asian countries, and affecting most of European routes as well. The adverse effects also affected other areas of the business including Qantas Flight Catering, Qantas Holidays and Australian Airlines. Qantas started reviewing, and widened, the range of initiatives it had put in place following the triggering events. These initiatives included the reduction of staffing numbers through the use of accumulated leave to the equivalent of 2,500 full- time employees by June 2003 and by the equivalent of 1,000 employees between July and September 2003; a restructuring program involving 1,000 redundancies, 400 permanent positions eliminated through attrition and 300 permanent positions converted from full time to part time; a freeze on capital and discretionary expenditure; expansion of the leave without pay program; increased use of part time workers; significant restructuring of work practices and activities; and reduction of capital expenditure, including retirement of some aircraft and deferral of delivery of new aircraft. In December 2003, Qantas unveiled its new low cost-carrier airline, Jetstar Asia, which later proved to be a headache after failing to gain access to crucial markets such as Indonesia and China. In June 2005, Qantas admitted it is still struggling to recover its investment in Jetstar, despite having managed to lease out four of its unused Airbus 320s. By early 2004, Qantas posted a AU$357.8 million net profit for the period ended December 31, 2003, owing to a strong domestic performance, effective cost-cutting measures, improvement in the international segment of the business and other subsidiaries. However, the airline also posted a lower revenue figure. The road to recovery proved rocky as Qantas had to deal with escalating fuel prices, increased competition and skirmishes with its labor unions. Qantas has also seen a lot of fruitless merger talks. Qantas went into another round of job cuts in late June 2005, a move that was punctuated with more than 600 jobs slashed in the first half of its financial year. The latest round of job cuts announced in February 2006 came amidst uncertainty of outsourcing the airline's heavy maintenance works overseas. QANTAS AIRWAYS: Opens New Sydney Distribution Center ---------------------------------------------------- Qantas Airways has opened a new AU$55 million material and logistics distribution center at Mascot in Sydney. The 17,500- square meter facility houses components required to service Qantas' mainline fleet. The Executive General Manager of Qantas Engineering, David Cox, said that the "world class" Sydney Distribution Center is a significant investment by Qantas in its Australian engineering and maintenance operations. The Facility will provide the operational and workplace efficiencies the airline has to pursue across its business, which will, in turn, allow Qantas to increase its competitiveness and better meet the needs of its external customers. The centerpiece of the new facility is a high-rise Miniload Automated Storage and Retrieval System. The Miniload system comprises four stacker cranes that travel at speeds of up to 24 meters per second to retrieve around 260,000 components from storage trays in over 30,000 locations within the facility. Mr. Cox said that building the new facility has allowed Qantas to take advantage of leading edge technology that includes one of the most advanced automated order processing and handling systems in Australia. Mr. Cox relates that in addition to the new distribution center, Qantas has also invested AU$85 million in the establishment of its new Brisbane maintenance facility and AU$20 million on an upgraded Roll-Royce Engine Maintenance Center of Excellence. About Qantas Headquartered in Sydney, Australia, Qantas Airways -- http://www.qantas.com.au/-- is the world's second oldest airline and is also recognized as one of the leading long- distance airlines, having pioneered services from Australia to North America and Europe. The Qantas Group employs approximately 38,000 staff across a network that spans 145 destinations in Australia, Asia-Pacific, Americas, Europe and Africa. The Qantas Group also operates a diverse portfolio of airline-related businesses, including Engineering Technical Operations and Maintenance Services, Airports and Catering, Qantas Freight, Qantas Holidays, Qantas Defence Services and Qantas Consulting. Qantas started having problems in 2003 with the ill effects of the Iraq War and the SARS outbreak, on top of the already difficult period following the events of the 9/11 terrorist attacks, the Afghanistan war and the terror threats, which lead to a downturn in bookings to other Asian countries, and affecting most of European routes as well. The adverse effects also affected other areas of the business including Qantas Flight Catering, Qantas Holidays and Australian Airlines. Qantas started reviewing, and widened, the range of initiatives it had put in place following the triggering events. These initiatives included the reduction of staffing numbers through the use of accumulated leave to the equivalent of 2,500 full- time employees by June 2003 and by the equivalent of 1,000 employees between July and September 2003; a restructuring program involving 1,000 redundancies, 400 permanent positions eliminated through attrition and 300 permanent positions converted from full time to part time; a freeze on capital and discretionary expenditure; expansion of the leave without pay program; increased use of part time workers; significant restructuring of work practices and activities; and reduction of capital expenditure, including retirement of some aircraft and deferral of delivery of new aircraft. In December 2003, Qantas unveiled its new low cost-carrier airline, Jetstar Asia, which later proved to be a headache after failing to gain access to crucial markets such as Indonesia and China. In June 2005, Qantas admitted it is still struggling to recover its investment in Jetstar, despite having managed to lease out four of its unused Airbus 320s. By early 2004, Qantas posted a AU$357.8 million net profit for the period ended December 31, 2003, owing to a strong domestic performance, effective cost-cutting measures, improvement in the international segment of the business and other subsidiaries. However, the airline also posted a lower revenue figure. The road to recovery proved rocky as Qantas had to deal with escalating fuel prices, increased competition and skirmishes with its labor unions. Qantas has also seen a lot of fruitless merger talks. Qantas went into another round of job cuts in late June 2005, a move that was punctuated with more than 600 jobs slashed in the first half of its financial year. The latest round of job cuts announced in February 2006 came amidst uncertainty of outsourcing the airline's heavy maintenance works overseas. QUADRIVIUM PTY: Liquidator to Discuss Wind-up with Members ---------------------------------------------------------- A final meeting of the members of Quadrivium Pty Limited will be held for the parties to receive Liquidator David Clement Pratt's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held today, April 7, 2006. Contact: David C. Pratt Liquidator PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia SEAMART PROPERTIES: Taps BDO Spicers Receivers and Managers ----------------------------------------------------------- On March 21, 2006, Brian Mayo-Smith and Robert John Knox of BDO Spicers were appointed as joint and several receivers and managers for Seamart Properties Limited. The appointment was under the terms of general security agreements giving the secured party a secured interest over the Company's entire property. Contact: Brian Mayo-Smith Robert John Knox Joint and Several Receivers and Managers BDO Spicers Level Eight, 120 Albert Street Auckland P.O. Box 2219, Auckland New Zealand SEAMART RESTAURANT: Receivers and Managers Named ------------------------------------------------ On March 21, 2006, receivers and managers have been appointed for the entire property of Seamart Restaurant Limited. Contact: Brian Mayo-Smith Robert John Knox Joint and Several Receivers and Managers BDO Spicers Level Eight, 120 Albert Street Auckland P.O. Box 2219, Auckland New Zealand SOUTHSIDE PERMANENT: Names Boris Van Delden as Liquidator --------------------------------------------------------- Boris van Delden and Peri Micaela Finnigan will facilitate the liquidation of Southside Permanent Holdings Limited's assets. Subsequently, creditors are given until April 27, 2006, to prove their debt or claims to benefit from any distribution the Company will make. Contact: Boris Van Delden Liquidator McDonald Vague Chartered Accountants P.O. Box 6092, Wellesley Street Post Office, Auckland New Zealand Telephone: (09) 303 0506 Facsimile: (09) 303 0508 SOUTH WEST PACIFIC: Members Opt for Voluntary Liquidation --------------------------------------------------------- Members of South West Pacific Exports Pty Limited held a general meeting on February 28, 2006, and agreed to: -- voluntarily wind up the Company's operations; and -- appoint David Sieff as liquidator for the wind-up. Contact: David Sieff Liquidator Horne Merrell Sieff Pty Limited 702/10 Help Street, Chatswood New South Wales 2067 Australia SUPREME CONCRETE: Members to Shut Down Operations ------------------------------------------------- At a general meeting of Supreme Concrete Pumping & Machinery Co. Pty Limited on February 28, 2006, members agreed that it is in the Company's best interests to wind up its operations. Ian Carson and Warren White were appointed as joint and several liquidators. Contact: Ian Carson Warren White Joint Liquidators PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia WATERJET DESIGNS PTY: To Declare Dividend Today ----------------------------------------------- Waterjet Designs Pty Limited will declare a final dividend today, April 7, 2006, to the exclusion of creditors who were not able to prove their claims. Contact: Warren White Liquidator c/o PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia WEB EXCELLENCE: Telecom New Zealand Files Liquidation Petition -------------------------------------------------------------- Telecom New Zealand Limited has filed with the High Court of Auckland an application to liquidate Web Excellence NZ Limited. The application will be heard before the High Court on April 20, 2006, at 10:00 a.m. Any person wishing to appear on the hearing of the application must file an appearance not later than April 18, 2006. Contact: Craig Griffin & Lord Solicitors for the Plaintiff 187 Mt Eden Road Mt Eden, Auckland P.O. Box 9049 or D.X. C.P. 31-003 Newmarket, Auckland New Zealand WIDGIEWA PTY: Enters Voluntary Liquidation ------------------------------------------ The members of Widgiewa Pty Limited resolved on March 3, 2006, to wind up the Company's operations. They then named Frank Lo Pilato as liquidator. Contact: Frank Lo Pilato Liquidator RSM Bird Cameron Partners Level 1, 103-105 Northbourne Avenue Turner, Australian Capital Territory 2612 Australia Telephone: (02) 6247 5988 ================================ C H I N A & H O N G K O N G ================================ AGEAN CONSULTANTS: Creditors Must Prove Debts by April 24 --------------------------------------------------------- Agean Consultants (Asia Pacific) Limited will be receiving creditors' proofs of debts or claims on or before April 24, 2006. Creditors are requested to send in their particulars to the solicitor and liquidator of the Company. Failure to comply with the requirement will exclude any creditor from the benefit the Company will make. Contact: Andrew Morrison Paul Unit 16, 19F., Shun Tak Centre China Merchants Tower 168-200 Connaught Road, Central Hong Kong AGRICULTURAL BANK: Rural Bank Giants to Get Reform Push ------------------------------------------------------- The China Banking Regulatory Commission will speed up the restructuring of Agricultural Bank of China and Agricultural Development Bank as the government aims to boost the nation's economy, The Standard relates. The two state-owned banks and the nation's rural cooperatives had extended CNY4 trillion or US$499 billion loans to farmers and agricultural business, the banking regulator said in a statement on its website. The Financial Express relates that new loans to farmers grew at an average annual pace of 11.7% in the past five years. According to The Standard, China is shifting resources to the countryside, home to two-thirds of its 1.3 billion people, after two decades of growth averaging more than 9% a year mostly benefited towns and cities. Chinese Premier Wen Jiabao has proposed to lift spending on education, health care and road building in rural areas. Disposable incomes in rural areas were CNY3,255 in 2005 -- less than a third of those in towns and cities. The gap, which doubled in the past 25 years, is continuing to widen. Headquartered in Beijing China, Agricultural Bank of China -- http://www.abchina.com/-- is the one of the "big four" banks in the People's Republic of China. It was founded in 1949, and has its headquarters in Beijing and has branches throughout mainland China, and also in Hong Kong and Singapore. It employs over 300,000 people. As of 2004, it had an annual turnover of US$13.3 billion. By the end of 2005, the Agricultural Bank of China became the second largest bank in China in terms of total assets, which had hit CNY4.88 trillion or US$605 billion, second only to the Industrial and Commercial Bank of China. Agricultural Bank of China is the remaining of the Big Four state-owned banks that as not yet received a state bailout. The other three members of the Big Four State-owned banks -- the Bank of China, China Construction Bank, and Industrial and Commercial Bank of China -- have already received a combined US$60 billion in capital injections from the Chinese government in the past two years. Agricultural Bank anticipates completing its financial restructuring in 2006. However, it still awaits the Chinese central government's decision on bailout funds. BIGTRADE LIMITED: To Hold Final Meeting on April 24 --------------------------------------------------- The members of Bigtrade Limited will hold a final meeting on April 24, 2006, at Rooms 2004-6, 20th Floor, Eastern Commercial Centre, 397 Hennessy Road, Wanchai, Hong Kong. At the meeting, the members will get an account of the manner of the Company's wind-up and property disposal from Liquidator Lit Kam Leung. BROWNHILL TRADING: Names Official Liquidator -------------------------------------------- Brownhill Trading Company Ltd has appointed an official liquidator through special resolution passed by the members of the Company on March 15, 2006. Contact: David J. Lawrence Liquidator 7/F Alexandra House 18 Chater Road, Central Hong Kong CARILLON SHIPPING: Members Convene to Discuss Winding Up -------------------------------------------------------- The members of Carillon Shipping Limited will hold a meeting on May 8, 2006, 10:00 a.m. at Room 1010, 10th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong. At the meeting, Liquidator Ha Yue Fuen will present an account on how the winding up was conducted and the property of the Company disposed of, and to give any explanations as required. CENTURY JEWELRY: Approves Special and Ordinary Resolution --------------------------------------------------------- Members of Century Jewelry Manufacturer Ltd signed and passed a resolution to voluntarily wind up and appoint Madam Yau Sui Han as the Company's official liquidator on March 18, 2006. An ordinary resolution was also passed stating that no audit will be conducted on the account of Liquidator's account and purchases. CHUNG WIN: Members Convene to Discuss Winding Up ------------------------------------------------ The members Chung Win International are scheduled to attend a meeting on May 3, 2006, 11:00 a.m. at 13/F., Shum Tower, 268 Dex Voeux Road, in Central, Hong Kong. At the meeting, Liquidator Zeng Xianggao will present an account on how the winding up was conducted and the property of the Company disposed of, and to give any explanations as required. CLASSIC DRAGON: Members' Final Meeting Scheduled on April 24 ------------------------------------------------------------ Members of the Classic Dragon Investments Limited will convene for a final general meeting on April 24, 2006. At the meeting, Liquidator Andrew Morrison Paul will present an account of the Company's liquidation process. The members will also decide whether the books, accounts, and documents of the Company will be retained by the liquidator and be disposed of after the Company is dissolved. Contact: Andrew Morrison Paul Unit 16, 19F., Shun Tak Centre China Merchants Tower 168-200 Connaught Road, Central Hong Kong CTS TELECOMMUNICATIONS: Liquidator to Present Wind-up Report ------------------------------------------------------------ The final meeting of the members of CTS Telecommunications Limited will be held for the parties to receive the liquidator Zeng Xianggao's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held on May 3, 2006, at 13/F., Shum Tower, 268 Dex Voeux Road Central, Hong Kong. FIRST RATE INDUSTRIES: Final Meeting Slated on April 28 ------------------------------------------------------- A final meeting of the members of the First Rate Industries Limited will be held for the parties to receive Liquidator Lim Wai Hay's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held on April 26, 2006, at 3:00 pm., at Room 906, 9/F Arion Commercial Centre Queen's Road West, Hong Kong. GUANGDONG KELON: Agree to Extend Sales Agreement ------------------------------------------------ Guangdong Kelon Electrical Holdings and Qingdao Hisense Marketing Company Limited have agreed to amend certain terms of connected transactions to extend the term of the sales agency agreement, Infocast News reports. Both parties agreed that the purchases of products during the period from September 16, 2005, to May 10, 2006, would not exceed CNY2.8 billion. The companies agreed earlier that the total amount of purchases of products by Hisense Agent from Kelon during the period from September 16, 2005 to March 31, 2006, would not exceed CNY1.4 billion. Kelon and Hisense Agent agreed that the maximum aggregate value of purchases of products during the period from Sept. 16, 2005 to December 31, 2005, and during the period from January 1, 2006 to May 10, 2006 would not exceed CNY800 million and CNY2 billion respectively. The maximum value of agency fees payable by Kelon to Hisense Agent during the period from September 16, 2005 to December 31, 2005, and during the period from January 1, 2006 to May 10, 2006 will not exceed CNY8 million and CNY20 million respectively. Kelon's production has been interrupted from May to August 2005 and the directors of the Company considered that it was not easy for the Company to raise funds from bank loans. The Company therefore had to seek additional means of obtaining extra funding so as to resume operation as soon as possible. Kelon considered that the prepayments received from Hisense Agent improved its cash flow position considerably and allowed it to normalize production, and confirms that such prepayments amounted to approximately RMB301 million. Pursuant to the provisions of the transfer agreement entered into in September 2005, Greencool Enterprise Development Co. Ltd. intends to transfer 262.212 million domestic legal person shares in Kelon to Hisense, representing 26.43% of Kelon's total issued share capital. The aforesaid transfer is expected to complete after the relevant regulatory approvals have been obtained. Both Qingdao Hisense Air-Conditioner Co Ltd (Hisense) and Hisense Agent are subsidiaries controlled by Hisense Group, which through Hisense Electric indirectly holds 93% and 70% equity interest in Hisense and Hisense Agent respectively. About Guangdong Kelon Electrical Headquartered in Wanchai, Hong Kong, Guangdong Kelon Elecrical Holdings Company Limited -- http://www.kelon.com/-- is one of the largest cooling domestic appliance manufacturers in China, mainly engaging in the development and manufacture, as well as domestic and overseas sales of refrigerators and air- conditioners. Before the latest scandal involving it's former Chairman, the refrigerator maker was saddled with staggering 2004 net losses, after seeing a CNY197.3 million net profit in 2003 and a similar substantial profit in 2002. With the outbreak of the scandal, it suspended trading of some of its shares and had its assets frozen. The Company was taken over by China's Hisense Group in a CNY900 million acquisition in September 2005. HOTEL WENSHA: Final Meeting Fixed on May 3 ------------------------------------------ A final meeting of the members of Hotel Wensha Limited will be held for the parties to receive Liquidator Zeng Xianggao's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held on May 3, 2006, 3:00 p.m. at Room 207, Duke of Windsor Social Service Bulding, No. 15 Hennessy Road, in Wanchai, Hong Kong. HUTCHISON CHINA: Appoints Joint Liquidators ------------------------------------------- Ying Hing Chiu and Chung Miu Yin were appointed as joint and several liquidators of Hutchison China Infrastructure Management Company Limited on March 23, 2006. Contact: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong JAMSUN DEVELOPMENT: Members' Final Meeting Scheduled on April 25 ---------------------------------------------------------------- A final meeting of the members of the Jamsun Development Limited will be held for the parties to receive Liquidator Chan Chui Yin's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held on April 25 2006, at 3:00 pm., at Room 2006, 20/F Billion Plaza, 8 Cheung Yue Street, Cheung Sha Wan, Kowloon Hong Kong. MEESPIERSON IPB ASIA: Appoints Official Liquidator -------------------------------------------------- Chiu Soo Ching and Cho Che Kwong were appointed as official liquidators of Meespierson IPB Asia Limited after a resolution was passed on March 17, 2006. Contact: Chiu Soo Ching Cho Che Kwong 2001, Central Plaza 18 Harbour Road, Wanchai Hong Kong NEW CHINA HONG KONG TRADING: To Hold Final Meeting on April 21 -------------------------------------------------------------- A final meeting of the members and creditors of New China Hong Kong Trading Limited will be held for the parties to receive Liquidator James Wardell's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held on April 21, 2006, at 1:30 a.m. and 2:00 p.m. respectively, at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong. Forms of proxies for the meeting must be lodged not later than April 23, 2006, at the meeting location. NEW CHINA HONG KONG INDUSTRIAL: Final Meeting Fixed on April 21 --------------------------------------------------------------- Members and creditors of The New China Hong Kong Industrial Limited will meet on April 21, 2006, at 2:30 p.m., for the parties to receive Liquidator Mark Pearce's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong. Forms of proxies for the meeting must be lodged not later than April 23, 2006, at the meeting location. NEW CHINA HONG KONG ENTERPRISES: Final Meeting Set April 21 ----------------------------------------------------------- Members and creditors of The New China Hong Kong Enterprises Limited will convene in a final meeting at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong, on April 21, 2006, at 4:30 p.m. and 5:00 a.m., respectively. At the meeting, they will get an account of the manner of the Company's wind-up and property disposal from Joint and Several Liquidator James Wardell. NEW CHINA HONG KONG ESTATE: AGM Slated for April 21 --------------------------------------------------- The annual general meeting of the members and creditors of The New China Hong Kong Estate Limited will be held at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong, on April 21, 2006, at 3:00 p.m. and 3:05 p.m., respectively. At the meeting, the members and creditors will receive Liquidator James Wardell's accounts on how the winding up was conducted and the property of the Company disposed of. Forms of proxies for the meeting must be lodged not later than April 23, 2006, at the meeting location. NINGBO BIRD: Xinhua Far East Downgrades Rating to BB- ----------------------------------------------------- Xinhua Far East China Ratings (Xinhua Far East) has downgraded the issuer credit rating of Ningbo Bird Co., Ltd. from BB+ to BB-. Its rating outlook remains negative. The downgrade was prompted by Bird's poor performance in 2005 and its limited financial flexibility in what is an increasingly challenging operating environment. Xinhua Far East anticipates it will be difficult for Bird to improve its performance and enjoy upside potential in the medium term given the tough market environment. The conditions in China's handset sector worsened in 2005, with intensifying competition as a result of stagnant growth in domestic sales, heavy inventories, the release of new brands, and the inflow of Original Design Manufacture (ODM) products in the sector. Heavy price-cutting is the main tool used to promote sales, while manufacturing costs are rising as a result of consumer demand for more sophisticated mobile handsets functions. R&D and promotional costs have also risen as a result of reduced fashion cycle for cellular phones. The operating conditions are even more challenging for domestic cellular phone makers. International brands continue to take market share in China and, in 2005, they held 59.4% of the market, according to Ministry of Information Industry figures. As a result of localized product designs, competitive pricing, and stronger technology, international brands have not only consolidated their share of the high-end segment, but have also broken into the mass/medium-end market. The downgrade action also reflects Bird's poor operating results and its limited ability to withstand a market downturn. Although Bird remains in a leading position, when compared to its domestic peers, its turnover fell 5.3% yoy in 1-3Q05, while its EBIT margin declined to negative 4.0% for 1-3Q05 from 2.7% in 2004. Meanwhile, the Company also announced huge loss estimation for full-year 2005. The downgrade for Bird also reflected deteriorated financial flexibility. Although Bird reduced its inventory in 2005, the effect has had little overall effect given its mounting inventory, which has accumulated over the years. Moreover, with handset fashion changing quickly, the market value of the remaining inventory is questionable. When excluding inventory (which accounted for 41.4% of current assets by September 2005), Bird's current asset to current liability ratio was just 0.78 at that time. In addition, Xinhua Far East expects the upside potential for Bird is limited in the foreseeable future. While exports increased to 43.9% of Bird's turnover in 1H05, the generally lower profit margin in overseas markets will only reduce the Company's overall profitability. The Company is facing stronger international brands, which have superior distribution channels internationally. The approaching 3G era is unlikely to bring Bird much benefit, given its limited investment exposure, low market demand in the initial stages, and the fact there are different distribution channels for 3G handsets. About Ningbo Bird Co. Ltd. Ningbo Bird Co., Ltd. is principally engaged in cellular phone manufacturing. Its largest shareholder is Ningbo Electronic Information Group Co., Ltd. which holds a 28.125% stake in the Company. In 2004, Bird's turnover was RMB10.246 billion, while shipments were reported as 13.657 million, of which 3.377 million were exported. PIFCO OVERSEAS: Names Official Liquidator ----------------------------------------- Pifco Overseas Limited has commenced liquidation on March 17, 2006. Christopher Harvey Hall was then appointed to facilitate the liquidation of the Company's assets. Contact: Christopher Harvey Hall 31F., The Centre 99, The Queen's Road Hong Kong ROCKY LIMITED: Pui Chiu Wing Named Liquidator --------------------------------------------- A special resolution to dissolve Rocky Limited has been passed by shareholders on March 22, 2006. Subsequently, Pui Chiu Wing was appointed to facilitate liquidation of the Company's assets. Contact: Pui Chiu Wing Liquidator 805 Capitol Centre 5-19 Jardine's Bazaar Causeway Bay Hong Kong STEADINVEST COMPANY: Agrees To Wind Up Operations ------------------------------------------------- A special and ordinary resolution was signed and passed by the members of Steadinvest Company Ltd during a general meeting on March 24, 2006. Members of the Company agreed to voluntarily wind up and appoint Tsang Wai Ming as its official liquidator for the purpose of winding up. An ordinary resolution was passed that the Liquidator's statement of accounts need not be audited. Contact: Tsang Wai Ming 1001 Unicorn Trade Centre 127-131 Des Voeux Road, Central Hong Kong STEADINVEST COMPANY: Creditors' Proofs of Debt Due on April 21 -------------------------------------------------------------- Steadinvest Company Limited will be receiving proofs of debts or claims on or before April 21, 2006. Creditors are hereby required to send in their particulars to the solicitor and liquidator of the Company. Failure to comply with the requirements will exclude any creditor from the benefit the Company will make. Contact: Tsung Wai Ming 1001 Unicorn Trade Center 127-131 Des Voeux Road, Central Hong Kong STOCKWELL ONLINE: Members Resolve to Wind Up Firm ------------------------------------------------- Members of Stockwell Online (Securities) Limited held a meeting on March 24, 2006, and agreed that: -- the Company be wound up voluntarily; -- Lui Man Sang be appointed as liquidator for the purpose of such winding up; -- the assets of the Company be distributed among the members in cash or in kind; and -- the audit of the Liquidator's accounts of receipts and payments will not be required. TAIKOO NAVIGATION: Enters Wind Up Process ----------------------------------------- At an Extraordinary General Meeting of Taikoo Navigation Company Limited on March 24, 2006, a special resolution to wind up the Company was passed. Subsequently, Geoffrey Cundle and Margaret Lo were appointed as joint liquidators and were authorized to distribute the assets of the Company. At the meeting, it was also resolved that the audit of the Liquidator's accounts of receipts and payments will not be required. Contact: Geoffrey Cundle Margaret Lo Joint and Several Liquidators 35th Floor, Two Pacific Place 88 Queensway, Hong Kong THAI-ASIA FUND: Placed Under Liquidation ---------------------------------------- On March 10, 2006, Thai-Asia Fund Limited decided wind up and appointed Darak Haughey and Lai Kar as joint and several liquidators. Subsequently, the Liquidators will be receiving proofs of debts or claims on or before April 21, 2006. Creditors are required to send in their particulars to the solicitor and liquidator of the Company. Failure to comply with the requirement will exclude any creditor from the benefit of any distribution the Company will make. Contact: Mr. Darak Haughey Mr. Lai Kar Yan 26th Floor, Wing on Centre 111 Connaught Road Central Hong Kong WINDSOR HOTELS: Schedules Final Meeting on May 3 ------------------------------------------------ A final meeting of Windsor Hotels International Company Limited will be conducted on May 3, 2006, 2:30 p.m. at 13/F., Shum Tower, 268 Dex Voeux Road Central, Hong Kong. Liquidator Zeng Xianggao will present their final accounts regarding the Company's wind-up operations at that meeting. WINNA LIMITED: Names Official Liquidator ---------------------------------------- The sole member of Winna Limited signed a special resolution to wind up the Company and appoint Julie Shan Edwards as official liquidator. Contact: Julie Shan Edwards Suite C, 16F., On Hing Building 1-9 On Hing Terrace, Central Hong Kong WINNA LIMITED: Receiving Creditors' Proofs of Debt by April 25 -------------------------------------------------------------- Winna Limited will be receiving proofs of debts or claims on or before April 25, 2006. Creditors are required to send in their particulars to the solicitor and liquidator of the Company. Failure to comply with the requirement will exclude any creditor from the benefit the Company will make. Contact: Julie Shan Edwards Suite C, 16F., On Hing Building 1-9 On Hing Terrace, Central Hong Kong WOA HOLDINGS: Final Meeting Set for May 3 ----------------------------------------- A final meeting of the members of Woa Holdings Limited will be held at 43-59 Queen's Road East, Hong Kong on May 3, 2006, at 10:00 a.m. At the meeting, Liquidator Poon Wong Yuen Shan will report the activities that took place during the wind-up period as well as the manner by which the Company's property was disposed of. The members will also decide whether the books, accounts and documents of the Company will be retained by the Liquidator and be destroyed three months after the Company is dissolved. WONG & OUYANG: Members to Meet Liquidator on May 3 -------------------------------------------------- Members of Wong & Ouyang (Design) Limited will hold a final meeting for them to receive Liquidator Poon Wong Yuen Shan's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held on May 3, 2006, at 10:a.m., at Room 601, Dominion Centre, 43-59 Queen's Road East, Hong Kong. The members will also decide whether the books, accounts and documents of the Company will be retained by the Liquidator and be destroyed three months after the Company is dissolved. YOUNG RESTAURANT: Member's Final Meeting Set on April 28 -------------------------------------------------------- Members of the Young Restaurant Employees Association Ltd will convene for a final general meeting on April 28, 2006. At the meeting, Liquidator Lee Wing will present an account of the Company's liquidation process. The members will also decide whether the books, accounts, and documents of the Company will be retained by the liquidator and be disposed off after the Company is dissolved. ========= I N D I A ========= FERTILISERS AND CHEMICALS: Clocks 21% Production Boost ------------------------------------------------------ Fertilisers and Chemicals Travancore Ltd has made a substantial increase in production last fiscal year, Business Line relates. In fiscal 2005-06, FACT managed to produce a total output of 9,18,888 tonnes against 7,61,352 tonnes the previous year, registering an increase of 21%. According to an official release, total production of Factamfos during the previous fiscal year stood at 7,45,902 tonnes against 5,60,788 tonnes in the preceding year. The Cochin division of FACT created a record annual production of sulphuric acid, with a total output of 3,80,000 tonnes against the previous best of 3,31,960 tonnes. Production of phosphoric acid also touched a new peak in the division, with total production touching 87,000 tonnes compared to the existing record of 69,600 tonnes. As reported by Troubled Company Reporter - Asia Pacific on April 6, 2006, FACT is on its way to recovery after the Cabinet Committee on Economic Affairs reportedly approved FACT's revamp program. Headquartered in Kochi, Kerala, India, Fertilisers & Chemicals Travancore Limited is principally engaged in the manufacturing and distribution of fertilizers and chemicals. Its products include ammonium sulphate, factomfos, urea and caprolactam. The Company operates solely in the domestic market. The Company, which had been making profits for over a decade, started reporting losses from 1998-99 onwards due to the high cost of raw materials and intermediaries and the lower selling price of its products. In 2004, the Company was referred to the Board for Industrial and Financial Reconstruction as a potentially sick unit. INDIA CEMENTS: Grantham Mayo Continues Stake Disposal ----------------------------------------------------- Global fund house Grantham Mayo Otterloo & Co continued to shed its stake in India Cements Limited, Business Line says. After selling 13.5 lakh India Cement shares at INR170.19 per share on Monday, the fund sold another 13.5 lakh on Tuesday for INR169.72 per share. Early last month, it had sold 25 lakh India Cement shares for around INR153. Another global fund CLSA had sold 11.05 lakh shares of India Cements at INR161 per share early last week while ABN AMRO Bank sold 10 lakh shares last month. Troubled Company Reporter - Asia Pacific reported that on March 10, 2006, The Stargate Investments Limited -- formerly known as Sanmar International Ltd, constituent of The Sanmar Group -- has sold 40,00,000 shares aggregating to 2.10% of the total paid up capital of India Cements. Headquartered in Chennai, India, India Cements Limited -- http://www.indiacements.co.in/-- manufactures and markets cement under the brand name Coromandel cement. The Company was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949. Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh. In 2002, he Company fell into a deep financial crisis, which prompted it to undertake debt restructuring plans in 2003. Faced with the huge challenges, the company addressed its problems proactively. It reduced interest costs, improved the capacity utilization, implemented voluntary retirement schemes and raised equity. All these initiatives helped the firm bring down its debt under corporate debt restructuring program from a hefty INR1,700 crore to INR400 crore. TRAVANCORE COCHIN: KIRFB Offers to Restructure Loan --------------------------------------------------- The Kerala Industrial Revitalisation Fund Board has offered to restructure Travancore Cochin Chemicals Limited's loans, in a bid to help the Company recover, Business Line reports. Aside from stretching the loan repayment period for 10 years, KIRFB has offered to reduce the interest rate on Travacore Cochin's INR47-crore loan from the original 12% to 6%. KIRFB's recommendation has already been sent to the Cabinet for approval, Business Line says. Two years ago, Travancore Cochin submitted a restructuring proposal to the Government two to remove itself from the red. Under its proposal, the Company's management had argued, that if the loan is converted into equity or a soft loan is provided to liquidate the high cost loan, then the Company could make a turnaround. With the KIRFB's recommendation in place, there is big hope for Travancore Cochin to return to profit. The Travancore Cochin Chemicals Limited -- http://www.tcckerala.com/-- is a distinguished member of the Udyogamandal Industrial complex in Kerala, India. It is a heavy chemical company engaged in the manufacture and marketing of caustic soda, chlorine and allied chemicals. The company had been making loss continuously from 1997-98. However, the company has started making cash profits from increased sales turnover in 2003. The major problem faced by the Company at present is the high cost of the raw material, salt, which is being brought from Gujarat involving high transportation cost, resulting in an increase of raw material cost. The unseasonal rains in the Tuticorin area from where the Company used to procure its salt requirement has affected its raw material supply. In fact, following disruption due to the tsunami, it has been procuring salt from Gujarat. The Company's restructuring proposal submitted to the Government two years ago, aimed at extricating the unit from the red, is still under consideration of the authorities. ================= I N D O N E S I A ================= GARUDA INDONESIA: Resumes Plane Services to Seoul ------------------------------------------------- Effective as of April 2, 2006, Garuda Indonesia resumed flights to Seoul after services were stopped in September 2004. Flying direct to the South Korean capital on the Denpasar-Seoul route three times a week, Garuda uses A-330 aircraft with a seating capacity of 293 passengers -- 42 in business class and 251 in economy class. In a press statement, the Company said that the move is prompted by the significant growth and great potential offered by both the Korean and Indonesian markets. So far, passenger flow between the two countries shows positive development. In 2005, passenger traffic reached 285.000 passengers. In 2006, the number is expected to rise to around 300,000 and 400,000 passengers in the following year. Re-establishing the route to Seoul opens up opportunities for Garuda to develop the South Korean and South West Pacific (Australia and New Zealand) markets, in which Denpasar will become point of distribution for the region. Garuda already flies 19 times a week to various destinations in Australia and New Zealand from Denpasar, such as Perth, Brisbane, Melbourne, Adelaide, Sydney, Darwin and Auckland. Furthermore, resuming services to South Korea will also have a positive effect on Garuda efforts as it develops its network in the United States. With these additional flights to Seoul, the Denpasar - Seoul route is served a total of seven times a week in which Garuda flies three times a week, while the other four is served by Korea Airlines through a code-sharing arrangement with Garuda Indonesia using A-330 aircraft or B-747-400 from Korean Airlines. Garuda's Denpasar - Seoul service (GA-780) is scheduled every Tuesday, Thursday and Sunday, departing from Denpasar at 00.45 local time and arriving in Seoul at 08.30 local time. On the return route, Seoul - Denpasar, Garuda (GA-871) flies every Tuesday, Thursday and Saturday, leaving Seoul at 11.00 local time and arriving in Denpasar at 16.50 local time. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service tosome 27 domestic and 33 international destinations. Under its Citilink brand, it serves another 10 domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The carrier has been hard-hit by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. At present, Garuda is concentrating its efforts on repaying its debts with foreign creditors under the European Credit Agency, which were due last December 31, 2005. Garuda management hopes to receive IDR520.4 billion in funds, promised by the Indonesian government, by March 2006. In March 2006, The Indonesian Government proposed to infuse US$250 million for PT Garuda Indonesia's debt restructuring, or set up a "special-purpose vehicle" in a bid to pay the airline's debts totaling US$644 million. Sugiharto, the state-owned enterprises minister, said that if the second option was agreed, the special-purpose vehicle would repay debt principal and interest of US$80 million annually within a 10- year period. Mr. Sugiharto added that the financial sources would be from the airline's leasing revenues of US$30 million a year and Government's fund of US$50 million a year. The carrier posted a SGD46.5 billion net loss in January, versus a net loss of IDR56.1 billion in the same period last year. As of the end of 2005, Garuda's debt totaled US$795 million. NEWMONT MINING: To Sell Unprofitable Sumatra Gold Mine ------------------------------------------------------ Newmont Mining Corporation is selling a majority stake in a gold mine located in North Sumatra Indonesia, as the Company deemed the reserve not "economical enough," Dow Jones relates. The United States mining giant bought the majority stake in the Martabe mine in 2002 from Normandy Mining, which signed a mining contract with the government in 1997. Indonesian mining firm PT Aneka Tambang has expressed interest in the Martabe mine as it aims to improve its gold output. About Newmont Mining Headquartered in Denver, Colorado, U.S.A., Newmont Mining Corporation -- http://www.newmont.com/-- is the leading gold producer with operations on five continents. Newmont is also engaged in the exploration for and acquisition of gold properties in some of the world's best gold districts. Employing approximately 28,000 employees and contractors worldwide, Newmont operates core assets in North America, South America, Asia, Australia, and Indonesia, with new mine projects currently being developed. Newmont spent 10 years exploring the volcanic islands of Indonesia before opening its first mine, Minahasa, at the northeastern tip of Sulawesi in 1996. Batu Hijau, a large copper-gold deposit on the island of Sumbawa, shipped its first concentrate at the end of 1999. The Company's problems in Indonesia started when the Indonesian Government filed a civil suit against the Company for allegedly polluting the area near its operation. ========= J A P A N ========= JAPAN AIRLINES: Broken Plane Flap Causes Landing Mishap ------------------------------------------------------- A Japan Airlines MD90 plane figured in a slight accident at Osaka airport when an undercarriage flap failed to close during landing, Kyodo News reports. No one on board the plane, however, was injured, According to an unnamed JAL official, the MD90's hydraulic unit that controls the flap lost pressure after its piston broke, causing the flap to stay open during landing. But since the undercarriage flap cannot easily be destroyed, there were no safety risks, he added. The JALMD90 plane landed at Osaka airport with 174 people on board, dragging the open flap along the runway. Japan Airlines states that this is not the first time pistons have broken in flights; pistons on other aircraft had broken four times since 2000, and in 2003 the Company decided to replace the pistons with other improved parts, on the advice of U.S. aircraft manufacturer Boeing Company. So far, the Company has replaced parts on 10 aircraft, but the accident occurred on on an airplane that had yet to be repaired. Japan Airlines has been delayed in repairing its aircraft due to supply system problems. 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. JAL's international passenger operations incurred losses in recent years due to negative factors such as the severe acute respiratory distress syndrome epidemic and terrorism fears. Due to a series of Safety-related incidents, the JAL Group was subjected to a business improvement order and administrative warnings relating to assurances on air transportation safety issued by the Ministry of Land, Infrastructure and Transport in March 2005. In the fiscal year 2005-2007, the Company's Medium Term Business Plan stated that in order to implement the reform of the corporate structure and the cost structure swiftly, the holding Company and operating companies are to be integrated. Specifically, in fiscal 2005, the corporate planning and marketing functions will be integrated and further steps to eliminate overlapping jobs and streamline the organization will be taken with a view to achieving substantial integration to merge the holding company and the operating company. In addition, the number of full-time officers was cut by 30%, and this reform was completed on April 1, 2005. JAPAN AIRLINES: President Asked to Testify on Maintenance Errors ---------------------------------------------------------------- Japan's House of Representatives transport committee asked president Toshiyuki Shinmachi to testify on recent maintenance errors at a hearing on April 11, 2006, Crisscross News relates. The head of Japan Airlines' maintenance department will also be summoned to testify at the hearing, along with the president of another airline, Skymark Airlnes Company, where maintenance blunders were also discovered. The Ministry of Land, Infrastructure and Transport had earlier reprimanded Japan Airlines for flying a passenger airplane for 10 days without conducting the necessary inspections, according to a report by Troubled Company Reporter on March 24, 2006, citing Kyodo News. 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. JAL's international passenger operations incurred losses in recent years due to negative factors such as the severe acute respiratory distress syndrome epidemic and terrorism fears. Due to a series of Safety-related incidents, the JAL Group was subjected to a business improvement order and administrative warnings relating to assurances on air transportation safety issued by the Ministry of Land, Infrastructure and Transport in March 2005. In the fiscal year 2005-2007, the Company's Medium Term Business Plan stated that in order to implement the reform of the corporate structure and the cost structure swiftly, the holding Company and operating companies are to be integrated. Specifically, in fiscal 2005, the corporate planning and marketing functions will be integrated and further steps to eliminate overlapping jobs and streamline the organization will be taken with a view to achieving substantial integration to merge the holding company and the operating company. In addition, the number of full-time officers was cut by 30%, and this reform was completed on April 1, 2005. ========= K O R E A ========= HYUNDAI MOTOR: March Sales Reach 246,126 Units ---------------------------------------------- Hyundai Motor Company disclosed that March sales at home and abroad reached a total of 246,126 units, equivalent to a 21.2% improvement over the same period last year. This brings the first quarter sales total to 655,642 units, up 13.9% year-over- year. Meanwhile, domestic sales of passenger cars, SUVs and commercial vehicles were up 13.1% year-over-year to 51,462 units. Exports sales, including sales by overseas manufacturing subsidiaries and shipments abroad from Korean factories, were up 23.5% to 194,664 units. Domestic Passenger Cars, Minivans & SUVs The Sonata retained its crown as Korea's best selling car for the second straight month, accounting for nearly a third of Hyundai's Korean passenger car sales for the month as 9,249 units of the mid-sized family sedan were sold. Total domestic passenger car sales reached 28,684 units, with the Grandeur /Azera and Elantra claiming second and third sales spots. Sales of sports utility vehicles were brisk thanks to the newly launched Santa Fe. A total of 8,148 SUVs and minivans were sold in March, up 8.5% over March '05. Total passenger car, SUV and minivan sales touched 36,832 units, up 14.4 percent over the comparable 2005 period. Domestic Commercial Vehicles Korean sales of commercial vehicles were up 10% year-over-year to 14,630 units. Bus sales rose 13.8% to 5,282 units and was matched by equally strong truck sales which were up 8% year- over-year to 9,348 units. Overseas Sales Export shipments from Hyundai's three Korean plants reached 115,939 units in March, 16.6% higher than March 2005 while output at overseas units in USA, Turkey, India and China continued to gather momentum. Hyundai's four overseas manufacturing subsidiaries turned out 78,725 units in March, up 35.2% year-over-year. Total overseas sales (including CKD shipments), reached 194,664 units, up 23.5% year-over-year. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. South Korea's number 1 carmaker, Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company reestablished itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 45%). Hyundai's exports include the Accent and Sonata, while its Korean models include the Atos subcompact. The Company also manufactures machine tools for factory automation and material- handling equipment. In September 2005, Standard & Poor's Rating Services maintained its long-term BB+ ratings on Hyundai Motor Co. and Kia Motors Corp. on CreditWatch with positive implications following recent reports that the Hyundai Group may buy Mando Corp. a Korean auto parts maker. Mando has been put up for sale for KRW2 trillion by JP Morgan Partners and Affinity Capital, which together own over 70% of the company. Despite Hyundai and Kia's continued improvement of their global market positions, the group continues to make overly aggressive expansion and acquisition plans. These include a recently announced Kia factory in the U.S. and, of more concern, the W5 trillion-W7 trillion blast furnaces planned by group company INI Steel Co. The CreditWatch listings will be reassessed within the following two months. If purchase terms for Mando are solidified during that time, the CreditWatch placement will be resolved. However if the negotiations are prolonged, Standard & Poor's will affirm the current 'BB+' ratings until further information is available. HYUNDAI MOTOR: Prosecutors Urge Chairman to Return Home ------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported earlier that Hyundai Motor's chairman Chung Mong-koo has left for the United States on April 2, 2006, to visit several manufacturing and sales facilities in the country, The Korea Times reports. Mr. Chung is expected to be back on April 9, 2006. In an update on April 5, 2006, The Korea Times said that prosecutors have urged Mr. Chung to return to Korea from his visit to the United States as soon as possible to help them speed up the investigation into the slush fund scandal. According to the Korea Times, the prosecutors believe that Mr. Chung will return home soon as the investigation is underway over Hyundai's scandal. Prosecutor Chae Dong-wook at the Supreme Prosecutor's Office has warned that if Mr. Chung delays his return and the investigation prolongs, he might face more charges. The Korea Times disclosed that investigators have found solid evidence that part of Hyundai's slush funds have been channeled into a number of politicians and bureaucrats in the form of political donations, through the financial records it secured during their search of Glovis' Seoul office. The TCR-AP recounts that the prosecutors have raided the headquarters of Hyundai Motor Co., and three of its subsidiaries -- Glovis Co., Kia Motors Corporation and Hyundai Autonet Co. -- on March 26, 2006, as part of their investigation into the Hyundai Motor Group's alleged involvement in a slush fund scandal and in illegal political lobbying. The TCR-AP reported earlier that the Supreme Public Prosecutors Office interrogated Chae Yang-ki, president of Hyundai Motor Group's Corporate Planning Division, on March 29, 2006, and also arrested Glovis chief executive officer Lee Ju-eun over allegations that the automaker raised billions of won in slush funds to bribe politicians and government officials through lobbyist Kim Jae-rok. Mr. Lee was charged with embezzlement of KRW6.98 billion of Company money to create slush funds. Prosecutor Chae said that they are also questioning officials from the Ministry of Construction and Transportation and the Seoul Metropolitan Government, over allegations that Hyundai Automotive lobbied them to acquire permit to build a research and development center in Southern Seoul, The Korea Times says. Prosecutors said they are also considering summoning Chung Eui- sun, the son of Chairman Chung as early as this week, as they are expanding their probe into allegations that the Company's wealth was unlawfully transferred to the founding family. The younger Chung, president of Kia Motors, an affiliate of Hyundai Automotive, was prohibited to leave Korea on Tuesday. Moreover, investigators are questioning officials of a number of corporate finance companies, including Win & Win 21 and Q Capital Holdings, suspected of involvement in raising and managing slush funds for Hyundai Automotive. According to some accusations, Kia Motors' Chung used these companies to raise about KRW10 billion in slush funds and managed them through money laundering in foreign markets. The corporate finance companies allegedly assisted this process by setting up paper companies in overseas locations and faking contracts between them and Hyundai Automotive affiliates. Prosecutors are seeking arrest warrants for about four officials from the corporate finance companies. There are also suspicions that Mr. Chung Eui-sun pocketed about KRW9.5 billion by purchasing the stocks of a Hyundai Automotive contractor below market prices and reselling them. The Supreme Prosecutors' Office's Chae said that he could not confirm the accusations. Hyundai Automotive controls about 70% of the domestic car market through its affiliates Hyundai Motor and Kia Motors. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. South Korea's number 1 carmaker, Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company reestablished itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 45%). Hyundai's exports include the Accent and Sonata, while its Korean models include the Atos subcompact. The Company also manufactures machine tools for factory automation and material- handling equipment. In September 2005, Standard & Poor's Rating Services maintained its long-term BB+ ratings on Hyundai Motor Co. and Kia Motors Corp. on CreditWatch with positive implications following recent reports that the Hyundai Group may buy Mando Corp. a Korean auto parts maker. Mando has been put up for sale for KRW2 trillion by JP Morgan Partners and Affinity Capital, which together own over 70% of the Company. Despite Hyundai and Kia's continued improvement of their global market positions, the group continues to make overly aggressive expansion and acquisition plans. These include a recently announced Kia factory in the U.S. and, of more concern, the W5 trillion-W7 trillion blast furnaces planned by group Company INI Steel Co. The CreditWatch listings will be reassessed within the following two months. If purchase terms for Mando are solidified during that time, the CreditWatch placement will be resolved. However if the negotiations are prolonged, Standard & Poor's will affirm the current 'BB+' ratings until further information is available. LG CARD: Woori May Not Enter Bid -------------------------------- The Troubled Company Reporter - Asia Pacific reported on January 23, 2006, that Woori Financial Group plans to withdraw its planned purchase of LG Card Company because of the latter's ballooning sale price. Woori is concerned the price hike would become a financial burden to the Company. The Korea Times reported on April 1, 2006, that Woori Finance Holdings may decide not to bid for LG Card after state shareholders opposed the purchase. The Korea Deposit Insurance Corporation, which holds a 70% stake in Woori, has told the Company to carefully reassess its bid as the acquisition could disrupt the scheduled privatization of the state-owned financial group. The KDIC relates that the acquisition of LG Card will increase the size of Woori, making it difficult to sell the financial services provider. The KDIC also stated that the bidding price for LG Card should be set at a reasonable level considering that Woori is not a private firm but a state-owned financial entity. The TCR-AP said on March 16, 2006, that through the sale, LG Card creditors hope to recover around KRW5 trillion, or US$5.1 billion, spent in bailing out LG Card in 2004. As reported by the Troubled Company Reporter - Asia Pacific on March 29, 2006, interested bidders for LG Card Co. Ltd. have been requested to submit their preliminary proposals within April 12-19, 2006, citing lead managers JPMorgan Chase & Co. and Korea Development Bank. About LG Card Co. Headquartered in Seoul Korea, LG Card Co. -- http://www.lgcard.com/-- provides installment finance services and credit card, as well as leasing services to credit worthy companies while acquiring valuable assets from merchant banks and leasing firms. LG Card also finances families wishing to purchase big ticket items such as automobiles, appliances and computers. At the end of October 2003, LG Card had KRW3.24 trillion more debt than assets and had faced threats of liquidity crisis and court receivership. LG Card has been in the hands of creditors since it was rescued from bankruptcy through a KRW5 trillion (US$4.78 billion) debt- for-equity swap and a further KRW1 trillion bailout in late 2004. QUALCOMM INCORPORATED: FTC Investigates Korean Unit --------------------------------------------------- In a press release, Qualcomm Incorporated stated that the Korean offices of Qualcomm Korea, Samsung Electronics, LGE Electronics and Pantech Curitel were visited on April 4, 2006, by officials of the Korean Fair Trade Commission seeking information about the business dealings between Qualcomm and the three other companies. The KFTC advised that the inquiry was not an official investigation but declined to provide an explanation of the reason for the inquiry or its focus. However, it is believed that the inquiry may be related to communications to the KFTC from a small Korean Company with respect to Qualcomm's distribution of mobile video software solutions that can be used in connection with Qualcomm's chipsets for wireless phones. The KFTC has not said that the inquiry is related in any way to complaints lodged with the European Commission last year by six companies based outside of Korea. "Qualcomm's business practices are lawful and pro-competitive," said Steve Altman, president of Qualcomm. "We have earned our commercial success through innovation, technological leadership, years of hard work and sustained R&D investment, and by consistently offering the best, most advanced chipsets and software at competitive prices." About Qualcomm Incorporated Based in San Diego, California, U.S.A., Qualcomm Inc. pioneered the commercialization of the code-division multiple access (CDMA) technology used in wireless communications equipment and satellite ground stations mainly in North America. It licenses CDMA semiconductor technology and system software to more than 100 equipment and cell phone makers. Qualcomm's OmniTRACS satellite vehicle tracking system is used by the trucking industry to manage vehicle fleets. The Company markets its products through direct sales force, partnerships, and distributors in the United States, Europe, the Middle East, Argentina, Brazil, Canada, China, Japan, South Korea, and Mexico. SSANGYONG MOTOR: March Sales Up 7.5% ------------------------------------ The Troubled Company Reporter - Asia Pacific reported on March 9, 2006, that Ssangyong Motor Corporation said its vehicle sales declined 3.4% from a year ago in February, due to falling domestic sales. In an update, The Automotive News relates that Ssangyong Motor Co. saw its car sales grow 7.5% growth in March 2006 at 11,654 vehicles, as healthy exports and new models helped offset the impact of a firmer won currency. The TCR-AP added that Ssangyong aims to strive for the sale of 170,000 vehicles worth KRW4.2 trillion for 2005. But it only sold a total of 141,306 vehicles in 2005, way below its 170,000 target. About Ssangyong Motor Company Headquartered in Kyonggi, South Korea, Ssangyong Motor Company Ltd. -- http://www.smotor.com/-- manufactures and assembles motor vehicle bodies on purchased basis such as jeep style cars under the brand names of 'Korando' and 'Musso', minibuses under the brand name of 'Istana', special purpose cars including cement mixers, trailers, fire-trucks as well as auto parts. The Company implemented a five-year debt workout program in 1999 after Ssangyong was separated from Daewoo Group, which was dissolved under huge debt. =============== M A L A Y S I A =============== APEX EQUITY: Repurchases 130,400 Shares for MYR59,173 ----------------------------------------------------- On April 5, 2006, Apex Equity Holdings Berhad bought back 130,400 ordinary shares for a total cash consideration of MYR59,173.24. The minimum price paid for each share purchased was MYR0.450 and the maximum was MYR0.450. After the purchase, the cumulative outstanding treasury shares have reached 3,069,200. On March 31, 2006, the Company bought back 2,000 ordinary shares for a total cash consideration of MYR913.36, according to an earlier report by the Troubled Company Reporter - Asia Pacific. Apex Equity Holdings Bhd -- http://www.apexequity.com.my/-- is principally engaged in stock and share broking, securities dealing, property holding, provision of portfolio management, investment advisory and nominee services, establishment and management of unit trust and property and investment holding. Operations of the Group are principally carried out in Malaysia. The Company has suffered five consecutive years of losses beginning 2001. It has incurred a net loss of MYR32,932,000 in the fourth quarter of the fiscal year ending December 31, 2005, which is an improvement from the fourth quarter 2004 net loss of MYR76,596,000. AVANGARDE RESOURCES: Court Grants Restraining Order --------------------------------------------------- The High Court of Shah Alam approved an application made by Avangarde Resources Berhad and its subsidiary P.C. Building Systems Sdn Bhd for a Restraining Order. The Court has granted the Restraining Order for a period of six months from April 5, 2006. The procurement of the RO was necessitated by several factors including but not limited to legal proceedings being instituted by creditors, and others. The Company is now preparing the proposed scheme of arrangement pursuant to the Section 176 of the Act and will work together with the Merchant Bank. The Company will forward to Bursa Securities Malaysia Berhad the full detail of the scheme once being finalized by the Merchant Banker. Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources Berhad is involved in the construction and development of housing projects. The Group has incurred huge losses due to provision of doubtful debts and writing off of bad debts. It is also facing the possibility of being delisted for failing to meet with the requirements of Bursa Malaysia. COMSA FARMS: Bourse Defers Delisting Pending Decision on Appeal --------------------------------------------------------------- On March 28, 2006, Bursa Malaysia Securities Berhad disclosed that it will the securities of Comsa Farms Berhad from the Official List today, April 7, 2006, due to the Company's failure to comply with the Bourse's listing requirements. Comsa Farms, however, immediately lodged an appeal to prevent its securities from being delisted. In view of the Appeal, the Bourse has deferred the removal of the Company's securities of from the Official List pending the decision on the Appeal by the Appeals Committee. Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in the wholesale and retail of fresh and frozen chicken products, meat and foodstuff. Its other activities include livestock, aqua feedmilling, poultry feeding, hatchery operations, and layer farming. The Company is currently plunged in crisis due to its inability to meet its sinking fund payment, weak operational cash flow vis-a-vis its debt level and poor showing in terms of returns on investment since the commencement of the modernization and expansion of its farms in 2000. Furthermore, the poultry industry is presently confronted by the outbreak of the avian influenza and rising raw material prices, which could hurt Comsa's earnings and cash flow in the immediate term. JOHAN HOLDINGS: Books Losses on Lower Sales and FRS Adoption ------------------------------------------------------------ For the fourth quarter of the year ending January 31, 2006, Johan Holdings Berhad registered lower revenue from continuing operations of MYR126.373 million compared to the previous corresponding quarter's MYR146.054 million revenue, a decrease of 13%. The lower revenue was mainly attributable to lower sales recorded by the card and travel businesses in Singapore. The loss for the quarter from continuing operations after taxation was MYR110.573 million compared to loss in last year's corresponding quarter of MYR7.920 million. The loss was mainly due to impairment amounting to MYR106.253 million to the carrying value of Group assets arising from the early adoption by the Group of Financial Reporting Standards during the fourth quarter. The impairment losses were attributable to goodwill of MYR45.766 million, property, land and development expenditure of MYR25.718 million and accounts receivables of MYR34.769 million. Included in the current quarter's loss is a gain of MYR17.694 million arising from disposal of the motor group in the United Kingdom completed on January 30, 2006. Total revenue for the current financial quarter was MYR126.373 million a decrease of 9% when compared to preceding quarter's MYR138.785 million. The decrease was attributed to lower revenue from tiles and travel businesses. Loss for the quarter was MYR110.573 million compared to preceding quarter's loss of MYR7.166 million. The loss was mainly due to impairment losses arising from adoption of FRS. With the divestment of the loss making motor business in the United Kingdom and the ongoing measures being taken to improve the performance of our operating companies, the Company's board is optimistic about the Group's prospects for the current year. Summary of Key Financial Information Individual Period Cumulative Period Current Year Preceding Year Current Year Preceding Year Quarter Corresponding to Date Corresponding Quarter Period 31-01-2006 31-01-2005 31-01-2006 31-01-2005 MYR'000 MYR'000 MYR'000 MYR'000 * Revenue 126,373 146,054 540,063 541,966 * Profit/(loss) before tax -109,891 -9,273 -110,149 -13,983 * Profit/(loss) after tax and minority interest -118,735 -9,344 -122,485 -12,649 * Net profit/(loss) for the period -118,735 -9,344 -122,485 -12,649 * Basic earnings/(loss) per shares (sen) -23.33 -1.84 -24.07 -2.49 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * Net assets per share (MYR) As at end of As at Preceding Current Quarter Financial Year End 0.2748 0.5134 Headquartered in Petaling Jaya Selangor, Malaysia, Johan Holdings Berhad is principally involved in trading of health foods and supplements, technical and electrical products and motor cars. Its other activities include provision of travel and resort related business, marine and leisure club operations, secretarial and management services and marketing and trading of engineering, building, technical and electrical products, production and distribution of ceramic tiles, provision of charge card and credit card services, merchandising, car rental, contract hire, property development, motor car servicing, investment holding and management and property holding and investment. The Group operates in Malaysia, Singapore, Hong Kong, Australia, the United Kingdom, the Netherlands, Bahamas, British Virgin Islands Brunei, Liberia and New Zealand. The Corporate Debt Restructuring Committee in May 2001 successfully assisted Johan Holdings Berhad and two of its subsidiary companies, Prestige Ceramics Sdn Bhd and Johan Equities Sdn Bhd, to finalize a debt restructuring agreement with their lenders to restructure their outstanding debt of MYR318.3 million. The Scheme is anticipated to alleviate the Johan Holdings' financial predicament and restore the Company to its original viability. KL INFRASTRUCTURE: Disposes of MTrans Shares -------------------------------------------- KL Infrastructure Group Berhad on April 3, 2006, disposed o two ordinary shares of MYR1 each in the capital of MTrans Transportation Systems Sdn Bhd -- formerly known as KLInfra Bus Services Sdn Bhd -- for a total consideration of MYR2 only. The shares represent 100% of KL Infra's total equity interest in MTrans. The disposal of does not have any material effect on the earnings per share and net assets per share of KLInfra and the Board is of the opinion that the move is in the Company's best interest. MTrans Technology and KLInfra are sister companies. KL Infrastructure Group is principally engaged in the concession and operation of an intra-city public transit system called the KL Monorail. Its other activities include provision of advertising space on columns and stations along KL Monorail project route, property development and investment holding. The Group's activities are carried out principally in Malaysia. The Group has been incurring consecutive losses in the past years due to its high operating expenses and loan-interest payments. KRAMAT TIN: Securities Commission Grants Proposed Waiver -------------------------------------------------------- Commerce International Merchant Bankers Berhad, on behalf of Kramat Tin Dredging, sought the approval of the Securities Commission for a waiver from the need to subject the shareholdings of Putrajaya Holdings Sdn Bhd to a moratorium. The approval for the waiver was sought for the shareholders of PJH comprising KLCC (Holdings) Sdn Bhd, Bumiputra-Commerce Nominees (Tempatan) Sdn Bhd -- for and on behalf of Kumpulan Wang Amanah Negara and Khazanah Nasional Berhad, as well as the ultimate shareholders of PJH comprising Petroliam Nasional Berhad and the Minister of Finance Incorporated. On April 3, 2006, the Securities Commission granted its approval for the Proposed Waiver. The Troubled Company Reporter - Asia Pacific reported that on June 9, 2005, the Securities Commission had approved the proposals subject to certain conditions. However, the SC did not approve the Company's application for a waiver for PJH from complying with the requirement of Paragraph 12.09 of the Policies and Guidelines on Issue/Offer of Securities of the SC relating to the waiver from the requirement to subject 50% of the securities to be received by PJH under the proposals to a moratorium. Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging Berhad is currently in the process of identifying suitable business opportunities. In July 2001, the Company wound down its tin dredging operations. KYM HOLDINGS: Post Profits in 4Q/FY2005-06 ------------------------------------------ KYM Holdings Berhad has booked a net profit of MYR35.6 million and earnings per share of 43.90 sen in the fourth quarter of the year ended January 31, 2006. The Group turnover was MYR17.90 million as compared to MYR20.97 million in the preceding quarter due to the decrease in sales in the Carton and Industrial Bags Divisions. The Group profit before taxation for the current quarter was MYR34.791 million compared to a loss of MYR1.446 million for the preceding quarter. The increase in profit was mainly due to the gain from the cessation of Eco Ribuan Sdn Bhd as subsidiary. On January 28, 2006, KYM Holdings Bhd has reduced its 100% shareholdings in Eco Ribuan Sdn. Bhd to 18% after the completion of the increase of issued and paid-up capital of Eco Ribuan. As such, Eco Ribuan and its wholly owned subsidiary, Merit Wisdom Sdn Bhd, ceased as subsidiaries of KYM Holdings Bhd. Meanwhile, KYM Holdings' Packaging Division is continuing its efforts to reduce costs and increase productivity to meet the challenges of a highly competitive industry. These remedial measures are already bearing fruit and the Company is optimistic that the performance of its core Carton business will continue to improve. The development of Phase 1 of the Tasik Suria project at Teluk Rubiah, a 228 unit mixed residential development has been officially launched on June 4, 2005, and the construction works are on going. Also, the Company is finalizing the sale of certain parcels of land to potential buyers for other developments. Summary of Key Financial Information Individual Period Cumulative Period Current Year Preceding Year Current Year Preceding Year Quarter Corresponding to Date Corresponding Quarter Period 31-01-2006 31-01-2005 31-01-2006 31-01-2005 MYR'000 MYR'000 MYR'000 MYR'000 * Revenue 17,904 18,867 73,031 78,553 * Profit/(loss) before tax 34,791 -1,193 28,286 -6,035 * Profit/(loss) after tax and minority interest 35,618 -530 29,373 -6,217 * Net profit/(loss) for the period 35,618 -530 29,373 -6,217 * Basic earnings/(loss) per shares (sen) 43.90 -0.65 36.20 -7.66 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * Net assets per share (MYR) As at end of As at Preceding Current Quarter Financial Year End 0.7400 0.3900 A full-text copy of the Company's Financial Report is available for free at: http://bankrupt.com/misc/tcrap_kymholdingsreport040606.pdf http://bankrupt.com/misc/tcrap_kymholdings040606.doc Headquartered in Kuala Lumpur, Malaysia, KYM Holdings Berhad is engaged in the manufacture and sale of corrugated fibre boards and boxes. Its other activities include the manufacture and sale of industrial woven bags and multi-wall industrial paper bags, property development, management and investment, provision of recreational and sport facilities including golf course, resort operation, general construction and investment holding. KYM Holdings started making losses in 2000 due to poor performance of its subsidiaries. The Company has taken remedial measures through cost reductions and property disposals to address its predicament. Recently the Group's packaging and property divisions started to show signs of recovery. Going forward, KYM Holdings expects the two divisions to contribute positively to the Group's performance. KYM HOLDINGS: Shareholders OK Land Sale to Ascotsun --------------------------------------------------- At an extraordinary general meeting on April 3, 2006, the shareholders of KYM Holdings Berhad approved: -- the proposed disposal of land measuring approximately 424,776 square feet by Harta Makmur Sdn. Bhd, a 54% owned subsidiary company of KYM Holdings, to Ascotsun Sdn Bhd for a total cash consideration of MYR3,574,182; and -- the proposed grant of option to Ascotsun Sdn Bhd to purchase a parcel of vacant land measuring approximately 134,108 square feet for MYR804,648. The land disposal is part of the Company's remedial program. Headquartered in Kuala Lumpur, Malaysia, KYM Holdings Berhad is engaged in the manufacture and sale of corrugated fibre boards and boxes. Its other activities include the manufacture and sale of industrial woven bags and multi-wall industrial paper bags, property development, management and investment, provision of recreational and sport facilities including golf course, resort operation, general construction and investment holding. KYM Holdings started making losses in 2000 due to poor performance of its subsidiaries. The Company has taken remedial measures through cost reductions and property disposals to address its predicament. Recently the Group's packaging and property divisions started to show signs of recovery. Going forward, KYM Holdings expects the two divisions to contribute positively to the Group's performance. MBF HOLDINGS: Bids for 2.41% Carpenter Shares --------------------------------------------- MBf Holdings Bhd has offered to acquire the remaining 2.41% or 2.4 million shares in Australia-listed MBf Carpenters Ltd at AU$0.85 cash per share for a total of AU$2.04 million or MYR5.38 million. MBf Holdings and its subsidiary, MBf International Ltd, hold 97.63 million Carpenters shares representing 97.59% of its paid- up capital. The Carpenters group has operations in Papua New Guinea and Fiji where the principal activities are merchandise retailing and warehousing, automotive and machinery sales and servicing, transport and shipping agents, financial services, ship repairs and owners of property and investments, agriculture and manufacturing. MBfH said it intended to take and delist Carpenters privately as it did not fulfill the public spread and had not been actively traded since its listing as it controlled 97.59% of the Company. It also said the maintenance of the listing status of about AU$500,000 per annum was costly. In a statement on April 3, 2006, MBf Holdings said it had served a notice on Carpenters of an offer to all the other shareholders to purchase the remaining ordinary shares. It said the offer was subject to a minimum acceptance of 5,000 shares before the closing date on June 5, 2006, unless the offer is extended. Headquartered in Selangor Darul Ehsan, Malaysia, MBf Holdings Berhad is involved in retailing and wholesaling of merchandise, shipping, automotive and heavy earthmoving equipment and printing of packaging boxes. Its other activities include copra, cocoa, coffee and tea production, issuing of credit cards, acquiring merchants and other related services, provision of financial services, provision of property management, investment in properties, property development including dealing in land and estate management, club management, development and sale of membership of a recreational club, education and investment holding. The Group's operations are carried out in Malaysia, other Asean countries including Singapore, Thailand and Philippines, Hong Kong, South Pacific Islands, Australia and United States of America. Over the years of 1997 and 1998, the ravages of the Asian economic crisis adversely affected the operations of the MBf Group. Given the substantial debt and accumulated losses suffered, MBf Holdings sought protection under Section 176(1) of the Companies Act 1965. MBf Holdings obtained court orders to propose a scheme of arrangement to restructure its borrowings with its lenders and selected creditors and to restrain its creditors from commencing recovery action. The Scheme was completed on June 30, 2003. Included in the Scheme was a debt- restructuring scheme, which excluded the lease, hire-purchase liabilities, general unsecured liabilities and amounts owing to subsidiary and associated companies. The lease, hire-purchase and general liabilities were to be addressed in the ordinary course of business. However, the Scheme made no provision for the settlement of the Inter-company Loans, which the Group is now having problems with. OLYMPIA INDUSTRIES: Faces Possible Delisting -------------------------------------------- Olympia Industries Berhad had on March 14, 2006, received a letter from Bursa Malaysia Securities Berhad on the Company's failure to comply with the obligations set out in Practice Note 4/2001 and in this regard may be suspended from trading. After having considered the facts and circumstances via the explanations given by the Company to Bursa Securities, Bursa Securities has allowed Olympia to re-submit the Company's application for an extension of time to implement the regularization plan to the Securities Commission for approval by April 15, 2006. The Bourse said it will await the outcome of Olympia's appeal in the event: -- the Company submits the Application to the SC for approval by the April 15; -- if Olympia fails to obtain the SC's approval on the Application; -- if Olympia appeals against the decision of the SC. If the Application is allowed by the SC, Olympia must proceed to implement the regularization plan expeditiously within the timeframes or extended timeframes granted by the SC. Bursa Securities' decision is without prejudice to its right to proceed to suspend the trading of the securities of Olympia and commence delisting procedures against Olympia in the event: -- the Company fails to submit the Application to the SC for approval by the due date; -- Olympia fails to obtain the approval from the SC in respect of the Application and does not appeal to the relevant authorities within the timeframe (or extended timeframes, as the case may be) prescribed to lodge an appeal; -- Olympia does not succeed in its appeal against the decision of the SC in respect of the Application; or -- the Application is allowed by the SC and Olympia thereafter fails to implement the regularization plan within the time frame or extended time frames as granted by the SC. Failure to meet the requirements will force the Bourse to suspend the Company's securities upon the expiry of five market days from the date Olympia is notified by the Bourse. 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. The Company has unveiled a proposed restructuring scheme in July 2001, which include capital reductions, disposals, debt novation and debt restructuring. OMEGA HOLDINGS: Sees No Developments to Regularization Plan ----------------------------------------------------------- Omega Holdings Berhad disclosed there has been no material development in respect of its plan to regularize its financial condition. The Company's Board said it will deliberate on the next course of action the Company will take and an announcement will be made in due course. As reported by the Troubled Company Reporter - Asia Pacific, the Securities Commission on March 23, 2006, rejected Omega Holdings' proposed restructuring scheme after considering the level of corporate governance of Omega's substantial shareholders, who directly or indirectly own the Omega shares. Subsequent to the implementation of the Proposed Rectification of Register, Omega proposes to undertake a New Restructuring Scheme, which entails: -- the Proposed Scheme of Arrangement with the Previous Omega Shareholders; -- the Proposed Scheme of Arrangement with the Previous Omega Creditors; -- the Proposed Acquisition of the Melati Group; -- the Proposed Exemption; -- the Proposed Offer for Sale; -- the Proposed Transfer of Listing Status; and -- the Proposed Disposal of Omega. Headquartered in Selangor Darul Ehsan, Malaysia, Omega Holdings Berhad is engaged in investment holding and provision of management services. Omega has been classified as an affected listed issuer pursuant to Practice Note 4/2001 of the Listing Requirements of Bursa Securities since 26 February 2001. On December 31, 2002, Omega undertook the previous Omega scheme to regularize its financial condition, which was approved by the Securities Commission on August 28, 2003, and was at an advanced stage of implementation when it was aborted due to the revocation of SC's approval on August 2, 2004. In view of this, Omega intends to undertake the Proposed New Restructuring Scheme to regularize its financial condition in order to ensure the interests of its shareholders are protected. PAN MALAYSIA: Proposes to Amend Memorandum of Association --------------------------------------------------------- Consequent to the Proposed Capital Reconstruction unveiled by Pan Malaysia Holdings Berhad on March 2, 2006, the Company proposes to amend its Memorandum of Association. The Company proposed that the Clause 5 of the Company's Memorandum of Association, which states that: "The capital of the Company is MYR3,000,000,000 divided into 3,000,000,000 ordinary shares of MYR1.00 each with power for the Company to increase, subdivide, consolidate or reduce such capital (original, increased or reduced) into several classes and to attached thereto respectively preferential, deferred, special or qualified rights, privileges or conditions as regards dividends, payment of capital, voting or otherwise." be substituted in its entirety as: "The capital of the Company is MYR3,000,000,000 divided into 30,000,000,000 ordinary shares of MYR0.10 each with power for the Company to increase, subdivide, consolidate or reduce such capital (original, increased or reduced) into several classes and to attach thereto respectively preferential, deferred, special or qualified rights, privileges or conditions as regards dividends, payment of capital, voting or otherwise." Consequent to the Proposed Par Value Reduction, the Memorandum of Association of the Company is to be amended to facilitate the change in the par value of the Company's ordinary shares, which leads to the increase in the number of authorized shares of the Company. The Proposed Amendment is not expected to have any effects on the Share Capital, Net Asset, Gearing, Earnings, Dividends and the shareholdings of major shareholders of the Company. The Proposed Amendment is conditional upon approval being obtained from the shareholders of the Company and is inter- conditional upon approvals being obtained for the Proposed Capital Reconstruction. As reported by Troubled Company Reporter - Asia Pacific on March 14, 2006, Pan Malaysia Holdings has drafted a capital reorganization plan following its admission to Bursa Malaysia's Practice Note 17. Pan Malaysia Holdings has become an affected issuer due to its insignificant level of business or operations for the financial year ended December 31, 2005. The Company's 2005 revenue, computed on the basis stated in PN17, represented not more than 5% of its issued share capital. In a bid to step out of PN17, Pan Malaysia Holdings proposed to cancel 90 sen of the par value of each existing share of MYR1.00 each. On completion of the capital reconstruction, it is expected that the Company's accumulated losses of MYR872.5 million at end-2005 would be reduced to MYR1.8 million. Pan Malaysia Holdings' directors are confident that with the improving market sentiment on Bursa, the Company will be able to achieve the requisite revenue in the second half this year which, upon completion of the proposed capital reconstruction, will enable it to regularize its level of operations, and to cease to be an affected issuer under PN17. Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia Holdings Berhad engaged in the provision of financial services, property and leisure, investment holding and dealing and manufacturing and selling of self-adhesive sticker labels. The Group also manufactures carton boxes and general packaging products. Other activities relating to financial services are stockbroking, options and financial futures broker, research fund management services and money lending. In 2001, the Group has disposed Focusprint Sdn Bhd, Labels Specialist Industries Sdn Bhd and Pengkalen Concrete Sdn Bhd wherein the manufacturing and trading activities were discontinued. The Company has proposed to reduce capital to erase its accumulated losses after discovering that its revenue is not more than 5% of its paid-up share capital. SOUTHERN BANK: Lists and Quotes Additional Shares ------------------------------------------------- Southern Bank Berhad's additional 1,715,814 new ordinary shares of MYR1.00 will be granted lisiting and quotation today, April 7, 2006. The new shares were issued pursuant to: -- the exercise of 1,315,814 warrants 1996/2006 into 1,315,814 new local "A" shares; and -- the exercise of 400,000 warrants 1996/2006 into 400,000 new foreign "A" shares. As the said ordinary shares arising from the Exercises shall not be entitled to dividends or any other distributions declared, made or paid to shareholders in respect of the financial year ended December 31, 2005, they will be quoted as "SBANK-OA" and "SBANK-02". Headquartered in Kuala Lumpur, Malaysia, Southern Bank Berhad -- http://www.southernbank.com.my/-- is engaged in the provision of commercial banking business and other related financial services, which include Islamic banking services. Other activities are accepting deposits and advancing loans, property ownership and management, provision of risk capital, stockbroking, sale and management of unit trusts, building construction, property investment and investment holding. On March 16, 2006, Bumiputra-Commerce Holdings Berhad took over the Company's business for MYR6.7 billion after five months of negotiation. Under the final deal, Bumiputra-Commerce would buy all the assets and liabilities of Southern Bank. It would undertake a voluntary general offer at MYR4.30 cash per Southern Bank share or a combination of cash and redeemable convertible unsecured loan stocks equivalent to MYR4.30 per SBB share and MYR2.56 cash per Southern Bank warrant. The VGO is expected to be completed by May or June, followed by Southern Bank's delisting. The entire integration process may extend to next year. Moody's Investors Service has confirmed Southern Bank Berhad's D- bank financial strength rating with a positive outlook. At the same time, the rating agency placed the bank's Baa2/P-3 long-term/short-term ratings, Baa3 subordinated debt rating and Ba2 preference share rating on review for possible upgrade. TEXCHEM RESOURCES: Enters Chinese Market ---------------------------------------- Texchem Resources Berhad's wholly owned subsidiary, Texchem Materials Sdn Bhd, recently received a Certificate of Approval for the proposed incorporation of a wholly owned subsidiary in Wuxi, the People's republic of China to be known as Texchem Trading (Wuxi) Company Limited, or such other name as may be approved by the relevant authorities in the People's Republic of China. A business license for the purposes of the incorporation of TTW will be applied for in due course. Upon obtaining the business license, TTW will be duly incorporated. Texmat intends to finance the Proposed Investment through internally generated funds and borrowings. Texchem Resources does not assume any other liabilities arising from the Proposed Investment. It is expected that the Proposed Investment will be completed by the third quarter of 2006. The setting up of a company in the People's Republic of China for the marketing, sales and distribution of industrial raw materials will enable Texmat to expand its business and further have a presence in the People's Republic of China to tap further on the market in the People's Republic of China. In view of the expertise, know-how and wide business networks that the Texmat Group has acquired for more than 30 years in the industrial chemical trading business with its operations in Malaysia, Singapore, Thailand and Vietnam, the Texmat Group would be able to capitalize on this expertise, know-how and wide business networks to develop the market in the People's Republic of China as well as to tap on the suitable sources of supply in the People's Republic of China for the markets that the Texmat Group operates in. This is in line with TRB Group's continued expansion in the Asian region. The Proposed Investment is expected to have a positive impact on the Texchem Resources Group in the long run. However, as TTW will be in the industrial chemical trading industry, it will always be subject to risks inherent in such industry such as dependence on key personnel, change in the general economic conditions, market competition, foreign exchange fluctuations and various other risks. Headquartered in Penang Malaysia, Texchem Resources Berhad -- http://www.texchemgroup.com/-- is principally engaged in trading in industrial chemicals and other products. Other activities include manufacturing of family care products and household insecticides and distribution and marketing of a wide range of consumer and family care products; manufacturing and marketing of raw surimi, fishmeal, feedmeal and seafood products; manufacturing and selling of packaging products forthe electronics, electrical, semiconductor and disk drive industries and investment holding. The Group's operations are located in Malaysia,Thailand, Singapore, Indonesia, China, Vietnam, Myanmar and Italy. Texchem is currently undergoing an internal restructuring, which involves the disposal of a number of dormant subsidiaries. VTI VINTAGE: Unit Accepts Option to Purchase Property ----------------------------------------------------- VTI Vintage Berhad's 80% owned subsidiary, Newsteel Building Systems Sdn Bhd, had on April 5, 2006, accepted an option granted by Win Nam Realty Sdn Bhd to purchase its factory at 48300 Rawang, Selangor Darul Ehsan. Win Nam Realty, had in its Supplemental Letter dated March 9 2006, offered to sell the Property to Newsteel at MYR1,600,000.00 plus MYR5,000.00 for every lapsed month from March 2006 until the date Newsteel exercises its option. The option is valid for 18 months from March 2006. Newsteel had earlier entered into a three -year tenancy agreement with Win Nam, commencing from March 1, 2006, to February 28, 2009, at a monthly rental of MYR12,000.00. The tenancy between the two parties shall cease to take effect upon the exercise of the option by Newsteel. Headquartered in Kuala Lumpur, Malaysia, VTI Vintage Berhad is involved in the manufacturing, trading, supplying and laying of roof tiles. The Company has been incurring losses since 2004 due to high operating expenses. ===================== P H I L I P P I N E S ===================== FIRST OCCIDENTAL: Court to OK Assets Distribution ------------------------------------------------- The Bacolod City liquidation court is slated to approve the final assets distribution of First Occidental SLA (Negros Occidental), Incorporated, on April 28, 2006, at 8:30 a.m. Contact: RTC-6th Judicial Region Branch 48, Bacolod City Philippines LAFAYETTE MINING: Probe Group Seeks to Extend Deadline ------------------------------------------------------ The fact-finding body ordered by President Gloria Macapagal Arroyo to investigate the recent mining spills at Lafayette Mining Philippines Incorporated will ask to extend the April 10, 2006, deadline to complete the study by another month, Malaya News relates. According to the group's head, Sorsogon Bishop Arturo Bastes, they cannot complete their investigation into the alleged harmful effects of LPI operations on the environment and health of residents in Rapu-Rapu, Albay, where the mine is located, within the time frame given. As reported by the Troubled Company Reporter on March 17, 2006, Philippine president Gloria Macapagal Arroyo signed an administrative order to create the Rapu-Rapu Fact-Finding Commission to investigate the recent spills of Lafayette Mining. The commission started its investigation on March 10, 2006, and is slated to complete its probe by April 10, 2006. Bishop Bastes added he would also seek a one-month extension on the cease-and-desist order on Lafayette's operations, so that the Company cannot resume operations even as it complies with environmental standards set by the Environmental Management Bureau, the Mines and Geosciences Bureau and the Pollution Adjudication Board. He said that he hopes the results of the probe would influence the Government's decision on Lafayette's operations. About Lafayette Headquartered in Melbourne, Australia, Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- has been listed on the Australian Stock Exchange since August 1997. It focuses on developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu-Rapu in the Philippines, through Lafayette Mining Philippines, Inc. The Department of Environment and Natural Resources' former secretary, Mike Defensor, closed Lafayette Philippines in 2005 when the Company's mine tailings were accidentally spilled into the Albay Gulf last October, killing thousands of fish and destroying the livelihood of fishermen in the area. The Company was also fined PHP10.7 million for violating the Clean Water Act and its environmental compliance certificate. Troubled Company Reporter reported on March 24, 2006, that Lafayette Philippines, Incorporated, a local unit of Lafayette Mining, has secured PHP1.51 billion from investors to resume normal operations, as well as a new management team and base metal commissioning at its mine in Rapu-Rapu, Albay, citing a Dow Jones report. RB JAGNA: To Conclude Wind-up Proceedings ----------------------------------------- Rural Bank of Jagna (Bohol) will submit its final project for the distribution of the assets and winding up to the Bohol liquidation court, RTC 7th Judicial Region, Branch 3, Tagbilaran City, Bohol, on May 5, 2006, at 8:30 a.m. RB LIBONA: Court to Approve Distribution of Assets -------------------------------------------------- The Makati City liquidation court is slated to approve the final assets distribution project of Rural Bank of Libona (Bukidnon), Incorporated, on April 21, 2006, at 9:00 a.m. Contact: RTC Branch 134 Makati City Philippines RB SAGAY: To Complete Wind-Up Process ------------------------------------- Rural Bank of Sagay (Camiguin), Incorporated will submit its final project for the Company's winding up and distribution of assets to the Camiguin Regional Trial Court, 10th Judicial Region, Branch 28 of Mambajao on May 19, 2006, at 9:00 a.m. RB STA. CRUZ: Seeks Court Approval on Assets Distribution --------------------------------------------------------- The Mindoro Occidental liquidation court will decide on the approval of the completion of the winding up and distribution of assets of Rural Bank of Sta. Cruz (Occidental Mindoro) Incorporated, on May 19, 2006, at 8:30 a.m. Contact: RTC Branch 44 Mamburao, Occidental Mindoro Philippines ================= S I N G A P O R E ================= ACCORD CUSTOMER: SGX-ST Lays Out Conditions on Listing of Shares ---------------------------------------------------------------- Accord Customer Care Solutions Limited unveiled the conditions set by the Singapore Exchange Securities Trading Limited prior to the listing and quotation of the Rights Shares on the Official List of the SGX-ST. The conditions are: -- compliance with continuing listing requirements; and -- specific approval being obtained from Shareholders for the Rights Issue. The Company has previously disclosed that the purpose of the Rights Issue is to raise funds to strengthen the Company's capital base and grow its after-market and distribution and retail business segments. The Company has undertaken to the SGX-ST that it will: -- make periodic announcements on the utilization of the proceeds of the Rights Issue as and when the funds from the Rights Issue are materially disbursed; and -- provide a status report on the use of the proceeds of the Rights Issue in the annual report of the Company. The SGX-ST's in-principle approval is not to be taken as an indication of the merits of the Company, its securities or the Rights Issue. Information on the details of the Rights Issue will be provided in the Circular to be dispatched to Shareholders in due course. CITIRAYA SINGAPORE: Proofs of Debt or Claim Due on April 19 ----------------------------------------------------------- Creditors of Citiraya (Singapore) Private Limited are required to prove their debt or claims not later than April 19, 2006, at 5:00 p.m. at: Contact: Seshadri Rajagopalan Judicial Manager c/o Ernst & Young 10 Collyer Quay #21-01 Ocean Building Singapore 049315 CTC CONTRACTORS: Contributories to Meet on April 18 --------------------------------------------------- A meeting of contributories of CTC Contractors Private Limited will be held at 18 Cross Street #08-01, Marsh & McLennan Centre, Singapore 048423 on April 18, 2006, at 2:30 p.m. to update the Company's status of liquidation. Contact: Chee Yoh Chuang Lim Lee Meng Liquidators c/o RSM Chio Lim 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 EMTEC MAGNETICS: Prepares to Pay Dividend ----------------------------------------- Emtec Magnetics Singapore Private Limited is set to distribute an intended dividend. To benefit from the dividend, creditors are required to prove their debt or claims not later than April 17, 2006, at the liquidator's place of business. Contact: Ong Yew Huat Seshadri Rajagopalan c/o 10 Collyer Quay #21-01 Ocean Building Singapore 049315 SINPON PRIVATE: Creditors Should Prove Debt by April 17 ------------------------------------------------------- Liquidators of Sinpon Private Limited will be receiving proofs of debt or claims from creditors not later than April 17, 2006, in order to benefit from the intended dividend the Company will soon distribute. Contact: Lo Wei Min Lo Wei Shih Liquidators c/o Lo Hock Ling & Co 101-A Upper Cross Street #11-22 People's Park Centre Singapore 058358 VANGUARD REALTY: Accepting Proofs of Debt Until April 17 -------------------------------------------------------- An intended dividend will be distributed for Vanguard Realty & Development (Private) Limited. Proofs of debt or claim will be accepted until April 17, 2006. Contact: Peter Chay Fook Yuen Bob Yap Cheng Ghee Liquidators c/o KPMG 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 =============== T H A I L A N D =============== PRASIT PATANA: Records 67.35% Increase in 2005 Net Profit --------------------------------------------------------- Prasit Patana Public Company Limited posted a THB587.04-million net profit for the year ending December 31, 2005, the Troubled Company Reporter - Asia Pacific finds out from the Company's financials. The December 2005 figure is a 67.35% increase from the THB350.79-million net profit posted by the Company in 2004. Revenues for the year is pegged at THB4.02 billion, a 17.24% rise from the THB3.43 billion in 2004. Prasit Patana Public Company Limited Financial Highlights, For the Year Ending Dec. 31, 2005 In Millions of THB 2005 2004 Assets 5,349.76 4,086.14 Liabilities 5,121.40 5,212.77 Equity 172.01 -1,126.63 Paid-up Capital 1,732.05 4,330.12 Revenue 4,016.78 3,426.20 Net Profit 587.04 350.79 EPS(Baht) 0.34 0.81 * * * Prasit Patana Public Company Limited -- http://www.phyathai.com/-- operates Phaya Thai I II and III Hospitals, Phaya Thai Sriracha Hospital, Phaya Thai Phuket Hospital, Phaya Thai Ubon Hospital and Ake Udon Hospital. The Company also operates three Universities, one of which as a joint venture with the Dulwich College of the United Kingdom. The Company also has diversified its business into hotel operations. The Company has first entered into the REHABCO, or Companies Under Rehabilitation Sector in 2001. That year, the Company had a THB676.02 million net loss and a THB10.02 billion capital deficit, which steadily declined to reach THB1.13 billion in 2004. On September 29, 2003, Thailand's Central Bankruptcy Court ordered that the rehabilitation plans of the Company and certain subsidiaries that had entered into the rehabilitation process in 2001 be terminated. However, the termination of the rehabilitation plans was contested with an appeal filed with the Supreme Court. The Supreme Court subsequently decided on July 29, 2005, that the Bankruptcy Court's order for the termination of the rehabilitation plans be revoked, on the ground that the Order had not been deliberated on all points of contention. The Supreme Court also directed the Bankruptcy Court to conduct further enquiry to arrive at a new decision. The Company and the subsidiaries re-entered the rehabilitation process under its previous plan administrator. The management believes that Prasit Patana's re-entry into the rehabilitation process and the subsequent retrial to deliberate on the points of contention will not affect the Company's and its subsidiaries' on-going operations. The company did not disclose its future business plan. SIAM AGRO-INDUSTRY: 2005 Net Profit Soars by 3,000% --------------------------------------------------- According to its financial report, Siam Agro-Industry Pineapple and Others Public Company Limited posted an astounding 3,446.43% increase in its net profit, to THB568.32 million, for the year ending December 31, 2005, compared with the THB16.03 million the year before. This result includes one-off gains that included financial creditors' debt obligations being reduced and accrued interest forgiven up to the date of the repayment of the first installment of restructured loans, resulting in an extraordinary gain of THB508.20 million. Revenues for the year was slightly higher at THB1.08 billion in 2005, compared with the THB1.05 billion in 2004. Siam Agro-Industry Pineapple and Others Public Company Limited Financial Highlights, For the Year Ending Dec. 31, 2005 In Millions of THB 2005 2004 Assets 768.83 520.40 Liabilities 592.61 1,092.49 Equity 176.23 -572.09 Paid-up Capital 200.00 300.00 Revenue 1,076.30 1,053.87 Net Profit 568.32 16.03 EPS(Baht) 1.90 0.53 * * * Headquartered in Bangkok, Thailand, Siam Agro-Industry Pineapple and Others Public Company Limited -- http://www.saico.co.th/-- manufactures and distributes processed tropical fruits. Its core products are derived from processing fresh pineapple and consist of canned pineapple, aseptic pineapple juice concentrate, aseptic pineapple single strength juice and aseptic pineapple crush. The Company also produces other kinds of tropical fruit products such as canned mixed fruit, pink guava puree, passion puree and tomato ketchup. Its main brands are SAICO and Del Monte. Siam Agro-Industry is currently in rehabilitation under the Bankruptcy Act. Its securities are placed under the Rehabco Sector of the Stock Exchange of Thailand. The Company has been working with a capital deficit from 2001 to 2004, with 2001 having the biggest deficit of THB622.44 million, and a steady decline to THB572.09 million in 2004. Going Concern and the Business Reorganization Plan The refusal of Siam Agro's major financial creditor to renew the Company's working capital facilities and the buy-back option, which expired on December 31, 2004, resulted in the Company defaulting on the repayment of promissory notes of THB90 million and long-term loan from another financial creditor amounting to THB2.84 million. On January 11, 2005, the Company and its major financial creditor jointly filed a rehabilitation application with Thailand's Central Bankruptcy Court. The Company's board of directors believed that a formal rehabilitation program under the direction of the Central Bankruptcy Court will enable the Company to continue its operations and achieve a practical and sustainable debt restructuring solution with all the Company's creditors. On February 21, 2005, the Central Bankruptcy Court ordered the Company to undergo a business reorganization process and appointed Praful Shah, Mark Christopher Chewter and Wacharin Piyarat to be the Plan Preparers of the Company and to submit the plan in accordance with the Bankruptcy Act B.E. 2542. Showing support to the rehabilitation program, the Company's major financial creditor agreed to initially allow the Company, for a period of six months ending on June 30, 2005, to continue to use the working capital facilities that were later increased, and also extended the buy-back option for the factory and ancillary facilities for the same period. Upon expiration, the increased working capital and the buy-back were again renewed for another six-month period, ending on December 31, 2005. The business reorganization plan was then approved by the Company's creditors and subsequently received the Court's stamp of approval in November 2005. The Court appointed Praful Shah and Asian International Planners Limited to be the Plan Administrators of the Company. There are two options provided under Siam-Agro's business reorganization plan: 1. The First Option: where the Plan Administrators can find a strategic partner by December 8, 2005, unless extended with the approval of the majority creditors; and 2. The Second Option: where the Plan Administrators cannot find a strategic partner by due date. Under the First Option, the significant group of creditors are: Group One -- Financial Creditors * The Company's debts, aggregating THB43.00 million, will be repaid within 10 days after date of cash received from subscription of newly issued share capital. * The balance of debts of THB150.00 million will be paid within four years by annual repayment of THB37.50 million. * Remaining debts including accrued interest, default interest and other charges to be written off. Group Two -- Trade Accounts Payable * The outstanding debts will be paid within 10 years after the Court approval of the rehabilitation plan. In case the Company purchases goods from this creditor, it will settle the outstanding debts at least 12% based on certain amounts of purchase invoice. The Plan Administrators proceeded to implement the First Option and announced on November 28, 2005, that the Company, together with its major financial creditor, had entered into a conditional restructuring and investment agreement with a strategic partner, Thai Pineapple Canning Industry Corporation Limited, and expected this transaction to be completed by December 31, 2005. Consequently, the Company reorganized its capital structure in the fourth quarter of 2005 in compliance with the business reorganization plan by decreasing its registered capital from THB566.46 million to THB300.00 million in respect of the cancellation of the warrants to purchase ordinary shares in the Company and changing par value from THB10.00 to THB1.00. Furthermore, it decreased the registered capital and paid-up capital from THB300.00 million to THB20.00 million by reducing number of shares according to the shareholding proportion of each shareholder. On December 29, 2005, the Company increased the registered and paid-up capital by THB180.00 million by means of issuing 180.00 million new ordinary shares subscribed at par value by Thai Pineapple Canning. As a result, its registered capital and paid-up capital was increased to THB200.00 million, divided into 200 million shares at par value of THB1.00. In addition, Thai Pineapple Canning provided the Company with a subordinated loan in the amount of THB60.00 million and would provide additional amount of THB60.00 million in compliance with the conditions set forth of the business reorganization plan. With proceeds from the issuance of new shares and drawing under the subordinated loan, the Company bought back the land and buildings, with respect to factory and ancillary facilities, from the major financial creditor at the price of THB190.00 million on December 29, 2005 and also repaid principal amount of THB43.00 million to the financial creditors on December 30, 2005. As a result, the outstanding principal amount of THB363.23 million to the financial creditors together with all accrued interest and other related expenses written off. In meantime, the Company is arranging to place its machinery and equipment as collateral with the financial creditors by February 28, 2006, to support the working capital facilities granted for a minimum period of one year from November 18, 2005 and the long-term loans. Upon completion of all the conditions, the Company would then be considered as having fully complied with the business reorganization plan and will subsequently ask for the Court's order to terminate this plan. The positive outcome of the current business reorganization program mentioned above has significantly strengthened the Company's balance sheet and it's ability to continue as a going concern. THAI-GERMAN PRODUCTS: Incurs THB29.47 Million Net Loss in 2005 -------------------------------------------------------------- Thai-German Products Public Company Limited posted a net loss of THB29.47 million for the year ended December 31, 2005, way down from the THB6.06 billion net profit it posted in the previous corresponding period, the Troubled Company Reporter - Asia Pacific learns from the Company's financials. In a company release to the Stock Exchange of Thailand, Thai- German blamed the loss on the inability to purchase raw materials directly from suppliers because of limited working capital which in turn hikes up the purchase price of these materials. The Company also suffered from a decrease in selling price of finished goods due to global over supply of raw materials which affected third quarter sales figures. Revenues, however, rose 8.69% -- from 2004's THB1.51 billion to THB1.64 billion in 2005. Thai-German Products Public Company Limited Financial Highlights, For the Year Ending Dec. 31, 2005 In Millions of THB 2005 2004 Assets 2,058.48 1,886.13 Liabilities 1,967.37 1,765.54 Equity 91.11 120.58 Paid-up Capital 324.58 324.58 Revenue 1,636.91 1,506.10 Net Profit -29.47 6,063.88 EPS(Baht) -0.09 62.10 * * * Thai-German Products Public Company Limited -- http://www.tgpro.co.th/-- manufactures stainless pipes including stainless tubes, stainless sheets, wire rods, round bars, under TGPRO brandname. Its products are used in a broad range of industries, including sugar, pulp and paper, petrochemicals, oil, automotive, construction, as well as food industries. The Company has suffered a series of capital deficits ending in 2003 which also posted it's widest deficit at THB5.31 billion. That and a series of net loses and the fact that it was operating below full production capacity, ushered the Company into the REHABCO, or Thailand's Companies under Rehabilitation sector. At the end of 2004, the Company has implemented most parts of the rehabilitation plan and is currently in the process of implementing the rest of the plan, though it notes that uncertainty exists in this respect. The Rehabilitation Plan On September 7, 1999, Thailand's Central Bankruptcy Court ordered the Company to rehabilitate its business and in May 2000, the Court approved the Company's rehabilitation plan and appointed PLV and Associate Company Limited as rehabilitation administrator. The Plan, which was amended a number of times, provides for: a. Debt Restructuring 1. Debt type A is to be repaid from the cash received from the disposal of the secondary assets of the Company, or their transfer mortgages, within 10 years from the date the court accepted the plan. No interest is charged on this debt. 2. Debt type B includes conversion of debt to equity of THB1.6 billion and the new principal of THB800 million to be repaid on an installment basis within 10 years from 2006 to 2014. Accrued interest expenses deferred for future settlement interest is to be charged at minimum loan rate calculated by the average rate of three major financial institution creditors. Interest incurred during the year 2004 and 2005 will be paid at the rate of 2% and 3% per annum. The variance between interest rates of the minimum loan rate and 2% to 3% will be deferred to the 10th year starting from the date the Court approved the third amendment proposal. 3. Debt type C will be forgiven. 4. Debt to group of trade creditors, financial advisors, legal consultants, creditors under commitments, and restructuring creditors is to be repaid under the Company's operating budget. No interest is charged on this debt. b. Capital Restructuring The plan administrator will proceed to decrease the Company's shares from 15,833,333 to 34,166,667 shares to facilitate common the conversion of convertible debenture #2 Then the plan administrator will proceed to increase registered shares to be applicable for these events: 1. Conversion of Debt type B of THB1.58 billion by issuing common shares not less than 157,500,000 shares of THB10 each. 2. Conversion of remaining convertible debenture #1 into 128,987,931 common shares of THB10 each. 3. Conversion of convertible debenture #2 into 17,083,333 common shares of THB10 each. The plan administrator will then proceed to decrease the registered capital of THB3.42 billion to THB342 million by reducing its par value from THB10 to THB1 per share. The Company will subsequently increase its share capital by not less than THB41 million by issuing 41,463,276 common shares of THB1 par value for the exercise of warrant issued to the Company's management and staff under ESOP of 17,083,333 units and for the exercise of warrants issued to minority shareholders of 24,379,943 units. On June 22, 2005, the Central Bankruptcy Court, at the request of the administrator, ordered a year's extension for the company to complete the warrant issuance process for minority shareholders and the Company's management and staff under ESOP. Progress with the rehabilitation plan In 2005, the Company has already: * repaid the interest amounting to THB23.90 million and a THB87.71 million deferred accrued interest expenses; * accomplished the capital restructure, except for the last step; * converted Debt type B of THB1.58 billion by issuing 157,500,000 common shares at THB10 par value; * repaid the interest amounting to THB51.95 million and accrued interest expenses defered for future settlement amounting to THB64.41 million; * forgiven debt type C; and * recognized the gain from rehabilitation amounting to THB6,064.62 million. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker ($MM) ($MM) ------ ------ ------------ ------ CHINA & HONG KONG ----------------- Guangdong Meiya Group Co. Ltd. 000529 27.43 178.19 Guangdong Sunrise Group Co. Ltd-A 000030 (-182.94) 35.98 Guangdong Sunrise Group Co. Ltd-B 200030 (-182.94) 35.98 Hainan Dadong-A 000613 (-6.63) 17.81 Hainan Dadong-B 200613 (-6.63) 17.81 Heilongjiang Black Dragon Co. Ltd. 600187 (-29.45) 153.92 Shenz China Bi-A 000017 (-206.90) 50.08 Shenz China Bi-B 200017 (-206.90) 50.08 Xinjiang Tunhe Investment Co. Ltd. 600737 47.57 476.47 JAPAN ----- Sakurada Co. Ltd. 005917 44.10 215.62 Yakinikuya Sakai Co. Ltd 007622 21.24 135.44 MALAYSIA -------- Kemayan Corp Bhd KOP (-428.54) 62.72 Metroplex Bhd MEX 32.17 372.87 Mycom Bhd MYC (-114.64) 227.68 Lityan Holdings Bhd IT (-8.43) 28.86 Olympia Industries Bhd OLYM (-227.85) 255.84 Panglobal Bhd PGL (-50.36) 189.92 Park May Bhd PMY (-12.26) 14.45 Polymate Holdings Bhd PYMT 34.75 102.11 PSC Industries Bhd PSC 51.63 639.35 SINGAPORE --------- China Aviation Oil (Singapore) Corporation AO -406.29 190.24 Informatics Holdings Ltd INFO (-6.73) 27.59 Lindeteves-Jacoberg Limited LG 39.61 332.07 Pacific Century Regional PAC (-145.53) 1289.71 THAILAND -------- Asia Hotel PCL ASIA (-30.12) 101.17 Asia Hotel PCL ASIA/F (-30.12) 101.17 Bangkok Rubber PCL BRC (-57.11) 78.78 Bangkok Rubber PCL BRC/F (-57.11) 78.78 Central Paper Industry PCL CPICO (-37.02) 40.41 Central Paper Industry PCL CPICO/F (-37.02) 40.41 Circuit Elect PCL CIRKIT (-25.89) 61.30 Circuit Elect PCL CIRKIT/F (-25.89) 61.30 Datamat PCL DTM (-1.72) 17.55 Datamat PCL DTM/F (-1.72) 17.55 National Fertilizer PCL NFC 70.66 142.61 National Fertilizer PCL NFC/F 70.66 142.61 Siam Agro-Industry Pineapple And Others PCL SAICO (-14.71) 13.38 Siam Agro-Industry Pineapple And Others PCL SAIC0/F (-14.71) 13.38 Thai Wah Public Company Limited-F TWC (-47.01) 158.87 Thai Wah Public Company Limited-F TWC/F (-47.01) 158.87 ********* 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., Trenton, NJ USA, and Beard Group, Inc., Frederick, Maryland USA. Ma. Cristina Pernites-Lao, Faith Marie Bacatan, Reiza Dejito, Erica Fernando, Freya Natasha Fernandez, and Peter A. Chapman, Editors. Copyright 2006. 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 $575 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 $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***