/raid1/www/Hosts/bankrupt/TCRAP_Public/060420.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
Thursday, April 20, 2006, Vol. 9, No. 078
Headlines
A U S T R A L I A & N E W Z E A L A N D
ABATH HOLDINGS: Court Issues Wind-up Order
AMALFI PTY: Liquidator to Present Wind-up Report
AUSTFISH PTY: Appoints Official Receivers
BT TECH PTY: Decides to Wind Up Business
CHAP 1 PTY: Prepares to Pay Dividend
CHUAH DESIGN: Court to Hear Liquidation Proceedings on May 4
CRAIG BALL BRICKLAYING: Shuts Down Operations
EFFECTIVE ACCOUNTING SERVICES: Members Agree to Wind Up
ELAN TECHNOLOGY: To Distribute Final Dividend
ELEVENTH LANDING: Receiver Steps Aside
ESIBUILT PTY: Supreme Court Winds Up Firm
EXODUS ENGINEERING: Court to Hear Liquidation Bid on April 24
FORTESCUE METALS: Completes Pilbara Iron Ore Mine Study
GEORGES CLEANING: Members and Creditors to Hear Wind-up Report
GILLAWARRINA PTY: Set to Distribute Assets
HUTT ELECTRICAL: Faces Liquidation Proceedings
ITMS LIMITED: Court to Hear Winding-up Proceedings on May 11
JACKSON TEECE: Enters Voluntary Liquidation
JAMES HARDIE: Downplays Roofing Business Closure
LOGOS CONSULTING: Faces Liquidation Proceedings
MALUA BAY: Creditors OK Liquidator's Appointment
MARJIM PTY: Holds Final Meeting Today
SCIFLEET QUEENSLAND: Winds Up Operations
SOUTH PACIFIC CONSTRUCTIONS: To Declare Dividend Today
TABLELAND PASTURES: Placed Under Voluntary Liquidation
TELSTRA CORPORATION: Optus Sues Telstra Over Line Rental Dispute
TFC LIMITED: Liquidation Proceedings Set on May 1
THE BLIND CO-ORDINATORS: Opts to Shut Down Business
VOTRAINT NO. 1261 PTY: Liquidator Explains Wind-up
* Property Group Wary of More Westpoint-style Downfalls
C H I N A & H O N G K O N G
ASUN ENTERPRISES: Members Appoint Liquidators
BRIGHTFUL LIMITED: Members Final Meeting Set on May 8
BILL YEE INTERNATIONAL: Names Official Liquidator
CASING TRADERS: Placed in Voluntary Liquidation
CASON DEVELOPMENT: Names Ho Sun Fung as Liquidator
CATEC INDUSTRIAL: Liquidators Cease to Act for the Company
DEUTSCHE FUTURES: Names Official Liquidators
FIS CHINA: Company Pass Winding-up Resolution
FOCUS HOLDINGS: Shareholders' Final Meeting Fixed on May 15
G.E. BOWDEN: Members and Creditors Discuss Winding Up
GRACEFUL SHIPPING: Members and Creditors Opt for Liquidation
GOODMARK HOLDINGS: Joint Liquidators Step Aside
ICM CORPORATE: Ng Kit Ying Ceases to Act as Liquidator
J.H. FAURE: Joint Liquidators Step Down
JOLRAN INVESTMENTS: Members Pass Wind-up Resolution
MIRAGE LIMITED: Enters Winding Up Proceedings
NATIONWIDE TREASURE: Court Issues Wind-up Order
NEW WORLD HOTELS: Liquidator Ceases to Act for the Company
NIPPON KANKO: Liquidator Presents Wind-up Report
NORMAN INSURANCE: Appoints Official Liquidators
PRICE WATERHOUSE MANAGEMENT: Creditors' Claims Due April 28
SPLENDOR LIGHTS: Creditors to Confirm Liquidator's Appointment
THAI ASSET: Creditors' to Prove Debts by April 28
TOYOTA TSUSHO: Joint and Several Liquidators Appointed
WING FUNG GOLD: Final Members Meeting Slated for May 10
W.S. CHOY: Members Hear Liquidator's Wind-up Report
I N D I A
CEMENT CORPORATION: Gov't to Set Up INR90-crore Cement Plant
DUNLOP INDIA: To Sue BSE Over Trade Ban
INDIAN OIL: Incurs US$17.7-Mln Daily Losses on Subsidy
I N D O N E S I A
GARUDA INDONESIA: Eyes Partnership With Air Zimbabwe
J A P A N
HEKITENSHA: Writers Angered by Bankruptcy Filing
LIVEDOOR COMPANY: U.S. Investment Firm Increases Stake
MITSUBISHI MOTORS: To Pay JPY5-Mln in Damages for Accident
SONY CORPORATION: To Sell Assets in Restructuring Plan
K O R E A
HYUNDAI MOTOR: Vice Chairman Quizzed by Prosecutors
HYUNDAI MOTOR: Prosecutors Release Executives
HYUNDAI MOTOR: Breaks Ground for Second Plant in China
LG CARD: Hana Joins Bidding Race
M A L A Y S I A
COMSA FARMS: Bourse to Act on Failure to Submit Annual Reports
DATUK KERAMAT: Faces Delisting Over Listing Requirement Breach
DATUK KERAMAT: High Court Grants 10-Month Stay of Execution
MALAYSIA AIRLINES: Says In-flight Meal Prices are Reasonable
MBF HOLDINGS: Offers Cash Bid for Carpenters Shares
PANGLOBAL BERHAD: Regulator OKs Proposed Restructuring Scheme
PAN MALAYSIA: Repurchases 120,000 Shares for MYR48,537
POHMAY HOLDINGS: Court to Decide on RO Application on May 2
POLYMATE HOLDINGS: Bumiputra Claims MYR14 Mln Plus Interest
POLYMATE HOLDINGS: Malayan Banking Withdraws Suit
POLYMATE HOLDINGS: Citibank Demands Payment of Unsettled Loan
TRU-TECH HOLDINGS: Fails to Address Default Issue
P H I L I P P I N E S
PHILIPPINE AIRLINES: May Buy More Aircraft to Cover More Routes
SAN MIGUEL CORP.: Moody's Assigns Ba1 Senior Unsecured Rating
S I N G A P O R E
CHINA AVIATION: KPMG Likely to Take Ernst & Young's Place
CITIRAYA INDUSTRIES: Creditors Back New Investment Plan
EASYCALL INTERNATIONAL: Warns of Another Full-year Loss
TRITECH MICROELECTRONICS: Distributes Fourth and Final Dividend
T H A I L A N D
THAI DURABLE: SET Lists Securities After Capital Increase
THAI DURABLE: Directors Approve Increase and Decrease of Capital
TMB BANK: Moody's Gives Hybrid Tier-1 Securities (P)Ba2 Rating
- - - - - - - -
============================================
A U S T R A L I A & N E W Z E A L A N D
============================================
ABATH HOLDINGS: Court Issues Wind-up Order
------------------------------------------
On February 24, 2006, the Federal Court of Australia ordered the
winding up of Abath Holdings Pty Limited, and appointed Stuart
Ariff as liquidator.
Contact: Stuart Ariff
Liquidator
Stuart Ariff Insolvency Administrators
Level 2, 21 Bolton Street
Newcastle, New South Wales 2300
Australia
Telephone: (02) 4929 7880
Fax: (02) 4929 7882
e-mail: office@sariff.com.au
Web site: http://www.sariff.com.au/
AMALFI PTY: Liquidator to Present Wind-up Report
------------------------------------------------
A final meeting of the members of Amalfi Pty Limited will be
held today, April 20, 2006, for the parties to receive
Liquidator J. F. Taylor's final account showing how the Company
was wound up and how its property was disposed of.
Amalfi Pty Limited was on July 7, 2005, placed under voluntary
liquidation, as reported by the Troubled Company Reporter - Asia
Pacific on August 17, 2005.
Contact: J. F. Taylor
Liquidator
c/o WHK Greenwoods
Level 15, 309 Kent Street
Sydney, New South Wales
Australia
AUSTFISH PTY: Appoints Official Receivers
-----------------------------------------
On February 15, 2006, Derrick Vickers and Geoffrey Frank
Totterdell were appointed as receivers and managers of the
property and undertakings of Austfish Pty Limited.
Contact: Geoffrey F. Totterdell
Derrick Vickers
Receivers
Level 19, QVI Building
250 St. Georges Terrace
Perth, Western Australia 6000
Australia
BT TECH PTY: Decides to Wind Up Business
----------------------------------------
Members of BT Tech Pty Limited held an extraordinary general
meeting on March 9, 2006, and agreed to:
-- voluntarily wind up the Company's business operations; and
-- appoint Richard Herbert Judson as liquidator for the
wind-up.
Contact: Richard H. Judson
Liquidator
Judson & Company Chartered Accountants
Suite 4, Level 1, 10 Park Road
Cheltenham, Victoria 3192
Australia
Telephone: 8585 4155
CHAP 1 PTY: Prepares to Pay Dividend
------------------------------------
Chap 1 Pty Limited will declare its first and final dividend to
priority creditors on April 21, 2006.
Creditors who were not able to prove their claims will be
excluded from sharing the dividend.
Contact: P. G. Biazos
I. A. Currie
Liquidators
c/o Currie Biazos Insolvency Accountants
Level 3, 320 Adelaide Street
Brisbane, Queensland 4000
Australia
Telephone: 07 3220 0994
CHUAH DESIGN: Court to Hear Liquidation Proceedings on May 4
------------------------------------------------------------
On March 14, 2006, the High Court of Auckland received an
application to liquidate Chuah Design Ltd.
The application will be heard before the Court on May 4, 2006 at
10:45 a.m.
Parties wishing to appear at the hearing are required to file
an appearance not later than May 2, 2006.
Contact: Simon John Eisdell Moore
Solicitor for the Plaintiff
Meredith Connel, Level 17
Forsyth Barr Tower,
55-65 Shortland Street
Auckland, New Zealand
CRAIG BALL BRICKLAYING: Shuts Down Operations
---------------------------------------------
At a general meeting on March 6, 2006, the members and creditors
of Craig Ball Bricklaying Pty Limited agreed that the Company
must voluntarily commence a wind-up of its operations.
David Patrick Watson was nominated to act as liquidator to
manage the wind-up activities.
Contact: David P. Watson
Liquidator
Bentleys MRI Sydney Business Recovery & Insolvency
Partnership
Level 8, 50 Carrington Street
Sydney, New South Wales
Australia
Telephone: (02) 8221 8449
e-mail: dwatson@sydbri.bentleys.com.au
EFFECTIVE ACCOUNTING SERVICES: Members Agree to Wind Up
-------------------------------------------------------
The members of Effective Accounting Services Pty Limited
resolved on March 10, 2006, to wind up the Company's operations.
At the meeting, Schon G. Condon and Bruce Gleeson were named
joint liquidators.
Contact: Schon G. Condon RFD
Bruce Gleeson
Joint Liquidators
c/o Jones Condon Chartered Accountants
Level 1, 34 Charles Street
Parramatta, New South Wales
Australia
Telephone: (02) 9893 9499
ELAN TECHNOLOGY: To Distribute Final Dividend
---------------------------------------------
Elan Technology Pty Limited will distribute its first and final
dividend to creditors on April 26, 2006.
Creditors who were not able to prove their claims will be
excluded from the benefit of the dividend.
Contact: Dean R. McVeigh
Liquidator
Foremans Business Advisors (Southern) Pty Limited
Suite 8, 56-60 Bay Road
Sandringham, Victoria 3191
Australia
ELEVENTH LANDING: Receiver Steps Aside
--------------------------------------
On March 15, 2006, Michael Brendan Williams ceased to act as the
receiver and manager of the property of Eleventh Landing Pty
Limited.
ESIBUILT PTY: Supreme Court Winds Up Firm
-----------------------------------------
The Supreme Court of New South Wales issued a wind-up order
against Esibuilt Pty Limited on March 10, 2006, and appointed
David Lewis Clout to act as liquidator of the Company.
Contact: David L. Clout
Liquidator
Woodgate & Company
Telephone: (02) 9233 6088
Fax: (02) 9233 1616
EXODUS ENGINEERING: Court to Hear Liquidation Bid on April 24
-------------------------------------------------------------
The High Court of Wellington has received an application to
liquidate Exodus Engineering Ltd on March 16, 2006.
The Application will be heard before the Court on April 24,
2006, at 10:00 a.m.
Parties wishing to appear at the hearing are required to file
an appearance not later than April 22, 2006.
Contact: Kate Elizabeth Harder
Technical and Legal Support Group
Wellington Service Centre
1/F., New Zealand Post House
7-27 Waterloo Quay, Wellington
New Zealand
FORTESCUE METALS: Completes Pilbara Iron Ore Mine Study
-------------------------------------------------------
On April 11, 2006, Fortescue Metals Group Ltd. completed its
feasibility study for the first stage of its AU$2 billion iron
ore mine project in the Pilbara region, in Western Australia,
the Australian Associated Press reports.
The Sydney Morning Herald recounts that Snowden Mining Industry
Consultants carried out the study, which covers the Cloud Break
and Christmas Creek deposits at Fortescue's Pilbara Project.
The Project is expected to make the Company one of the world's
lowest cost iron producers.
According to Fortescue, the study confirms an operation of 45
million tonnes a year for more than 20 years with a low
operating cost. The study gives the total cash cost of
production as AU$16.11 per tonne after allowing for leasing
costs of mining and processing equipment and contractors' profit
margins.
Fortescue indicated that the Company targets to generate a gross
margin of about AU$30 per tonne -- before tax, interest,
depreciation and amortization -- based on 2005/06 benchmark
prices.
Moreover, the study had found that Fortescue would be able to
reach a production rate of 45 M/ta within 15 months of launching
production and associated infrastructure would be ready to
handle that much ore by March 2008. At current prices, this
production rate would give Fortescue annual earnings of about
AU$1.3 billion.
According to The Age, the study sets out a schedule for the
development of Fortescue's first flagship deposits and features
the development of a number of open-cut mining pits at Cloud
Break and then Christmas Creek.
About Fortescue
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
Fortescue's troubles began when its Chief Executive Officer,
Andrew Forrest, admitted to a AU$500-million blowout on the cost
of port and rail infrastructure in the Pilbara Project because
of price hikes for steel, fuel, construction materials and
contract labor. The Company also disclosed that the hampered
progress brings in the possibility that the Company may not meet
its ore delivery schedule and pushes up costs at resource
developments across Western Australia. In May 2005, the
Australian Stock Exchange pressured Fortescue to explain matters
about the troubled project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products. The ASX referred the Fortescue matter to the
Australian Securities and Investments Commission, which recently
commenced a legal action against the Company.
ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on Aug. 23 and November 5, 2004. In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters. ASIC
is seeking civil penalties of up to AU$3 million against
Fortescue.
GEORGES CLEANING: Members and Creditors to Hear Wind-up Report
--------------------------------------------------------------
The members and creditors of Georges Cleaning Services
(Australia) Pty Limited will hold a final meeting on
April 20, 2006, to get an account of the manner of the Company's
wind-up and property disposal from Liquidator Murray Godfrey.
Contact: Murray Godfrey
Liquidator
RMG Partners
Level 12, 88 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone: (02) 9231 0889
GILLAWARRINA PTY: Set to Distribute Assets
------------------------------------------
At a general meeting on March 8, 2006, the members of
Gillawarrina Pty Limited resolved to close the Company's
business operations and distribute the proceeds of its assets.
John Curley was named as liquidator for the wind-up.
Contact: John Curley
Liquidator
GFB Peacocke & Co. Public Accountants
173 Darling Street, Dubbo
New South Wales 2830, Australia
Telephone: (02) 6882 3933
HUTT ELECTRICAL: Faces Liquidation Proceedings
----------------------------------------------
On March 1, 2006, the High Court of Wellington received an
application to liquidate Hutt Electrical Service Company Ltd.
The Application will be heard before the Court on April 24, 2006
at 10:00 a.m.
Parties wishing to appear at the hearing are required to file
an appearance not later than April 22, 2006.
Contact: Philip Hugh Brian Latimer
Technical and Legal Support Group
Wellington Service Centre
1/F., New Zealand Post House
7-27 Waterloo Quay, Wellington
New Zealand
ITMS LIMITED: Court to Hear Winding-up Proceedings on May 11
-------------------------------------------------------------
The High Court of Auckland has received an application to
liquidate Evodrive Limited on February 14,2006.
The Application will be heard before the Court on May 11, 2006,
at 10:00 a.m.
Parties wishing to appear at the hearing are required to file
an appearance not later than May 9, 2006.
Contact: Simon John Eisdell Moore
Solicitor for the Plaintiff
Meredith Connel, Level 17
Forsyth Barr Tower,
55-65 Shortland Street
Auckland, New Zealand
JACKSON TEECE: Enters Voluntary Liquidation
-------------------------------------------
At Jackson Teece Chesterman Willis Consultants Pty Limited's
general meeting on March 9, 2006, members concurred that it is
in the Company's best interests to liquidate its operations.
Brian Patrick Woodward was appointed to oversee the wind-up.
Contact: Brian P. Woodward
Liquidator
B. P. Woodward & Associates
Suite 501, 83 York Street
Sydney, New South Wales 2000
Australia
JAMES HARDIE: Downplays Roofing Business Closure
------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
April 19, 2006, that James Hardie Industries Limited will shut
down its Artisan roofing business and will close its roofing
pilot factory in Fontana, California, in the United States.
James Hardie will book an AU$18.3 million impairment charge in
its 2005/06 accounts after deciding that its three-year-old
Artisan roofing business was no longer worthwhile.
In an update, the Sydney Morning Herald relates that Hardie
downplayed the plant closure, noting the "low-cost, low-risk"
approach of its attempts to convince Americans to buy fiber-
cement roof shingles instead of traditional wooden ones.
The Company also noted the relatively small size of its plant,
which has 24 workers, the Sydney Herald says.
The Sydney Herald cites ABN Amro analyst Simon Thackray as
saying that the plant closure was a positive move and showed
that Hardie was now focusing on its more successful core
business and on the development of new products in tune with
existing consumer demand.
News of the plant closure comes just weeks after the Company
said it could be forced to pay a AU$412 million tax bill related
to the capital gains it made from a corporate restructure in
1999, and four months after the Company's head of research and
development, Don Merkley, announced his sudden resignation.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/-
- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives. After beginning Australian
operations in 1888, it reincorporated into a Netherlands-based
company in 2001 to focus on its American growth businesses.
Nearly 80% of its sales are in North America. The Company's
troubles began with its "under-funded" allocation for asbestos
claims, which were brought in by people who suffer or may have
diseases caused by exposure to the asbestos-related products
produced by James Hardie. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established. By 2004, James
Hardie's former asbestos manufacturing subsidiaries, Amaca and
Amaba, are two of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
liabilities in Australia. Although James Hardie stopped making
asbestos products in 1987, the average 35-year latency of
mesothelioma, an asbestos-related disease, means asbestos
compensation funds will be needed until mid-century. In a 2005
report by a Company-hired actuary from KPMG, it was predicted
that 4,915 Australians would contract mesothelioma from exposure
to Hardie products in the coming decades. When less serious
forms of asbestos-related disease are included, James Hardie
should expect to compensate 8,725 victims.
LOGOS CONSULTING: Faces Liquidation Proceedings
------------------------------------------------
An application to liquidate Logos Consulting Ltd was received by
the High Court of Auckland on February 15, 2006.
The Petition will be heard before the Court on May 4, 2006 at
10:00 a.m.
Parties wishing to appear at the hearing are required to file
an appearance not later than May 2, 2006.
Contact: Simon John Eisdell Moore
Solicitor for the Plaintiff
Meredith Connel, Level 17
Forsyth Barr Tower,
55-65 Shortland Street
Auckland, New Zealand
MALUA BAY: Creditors OK Liquidator's Appointment
------------------------------------------------
Members of Malua Bay Matilda's Pty Limited convened on March 10,
2006, and resolved to wind up the Company's operations.
Danny Vrkic was appointed as liquidator of the Company at a
creditors' meeting held later that day.
Contact: Danny Vrkic
Liquidator
Jirsch Sutherland & Co. - Wollongong Chartered
Accountants
Level 3, 6-8 Regent Street
Wollongong, New South Wales 2500
Australia
Telephone: 02 4225 2545
Fax: 02 4225 2546
MARJIM PTY: Holds Final Meeting Today
-------------------------------------
The members and creditors of Marjim Pty Limited will convene
today, April 20, 2006, to receive Liquidator David H. Scott's
account regarding the Company's completed wind-up and disposal
of the Company's property.
Contact: David H. Scott
Liquidator
Jones Condon Chartered Accountants
77 Station Street, Malvern
Victoria 3144, Australia
Telephone: (03) 9500 0511
SCIFLEET QUEENSLAND: Winds Up Operations
----------------------------------------
At a general meeting of Scifleet Queensland Pty Limited on
March 1, 2006, members agreed that it is in the Company's best
interests to wind up its operations.
Alan J. Ranck was then named as liquidator of the Company.
Contact: Alan J. Ranck
Liquidator
109 Jessie Street, Armidale
New South Wales, Australia
SOUTH PACIFIC CONSTRUCTIONS: To Declare Dividend Today
------------------------------------------------------
South Pacific Constructions Pty Limited will declare a first and
final dividend today, April 20, 2006, to the exclusion of its
creditors who were not able to prove their claims.
Contact: Christopher J. Palmer
Liquidator
O'Brien Palmer
Level 4, Currency House
23 Hunter Street, Sydney
New South Wales 2000, Australia
TABLELAND PASTURES: Placed Under Voluntary Liquidation
------------------------------------------------------
At a general meeting on February 28, 2006, members of Tableland
Pastures Pty Limited agreed that the Company must voluntarily
commence a wind-up of its operations.
Rowan Fergus Bell was subsequently appointed as liquidator.
Contact: Rowan F. Bell
Liquidator
48 Grevillea Street, Biloela
Queensland 4715, Australia
TELSTRA CORPORATION: Optus Sues Telstra Over Line Rental Dispute
----------------------------------------------------------------
Optus launched a legal action against Telstra Corporation on
April 18, 2006, challenging Telstra's December 2005 increase in
wholesale line rental prices.
According to Optus, its legal action comes after the Australian
Competition and Consumer Commission issued a competition notice
against Telstra on April 12, 2006 -- an official finding by the
regulator stating that the line rental price increase is anti-
competitive.
The Troubled Company Reporter - Asia Pacific reported on
April 17, 2006, that the Competition Notice allows third parties
to take action to seek to recover loss or damage for certain
anti-competitive conduct that occurs while the notice is in
force. It also provides various options for the resolution of
the ACCC's competition concerns.
Through its legal action, Optus may seek more than AU$20 million
in damages from Telstra over the telco's contentious move to
make its rivals pay more for line rental than its residential
customers do, The Age relates. Optus' claim will include the
excess amounts it has been forced to pay to Telstra to date, as
well as a request that Telstra reverse the price increase in the
future.
Paul Fletcher, Optus' Director of Corporate and Regulatory
Affairs, said that Telstra was trying to erode a key principle
of telecommunications competition -- the rule that a competitor
like Optus can combine its own long distance services with
resold Telstra line rental to deliver a complete package to
customers.
"In December last year, Telstra increased its wholesale line
rental prices from AU$26.95 (GST inclusive) to AU$30.36 (GST
inclusive), but no changes were made to its most popular retail
line rental plans. The monthly line rental under Telstra's
HomeLine Complete package remains at AU$26.95," Mr. Fletcher
said.
Mr. Fletcher noted that "[t]his produces the absurd result that
Optus is forced to pay Telstra a wholesale price which is
AU$3.41 more than the price at which Telstra sells the very same
product in the retail market."
Optus is suing Telstra for breaches of Section 46 and Part XIB
of the Trade Practices Act. These Sections prohibit a company
with a substantial degree of market power from taking advantage
of that market power to lessen competition, eliminate or
substantially damage a competitor, or deter a competitor from
engaging in competitive conduct.
The case will be heard by the Federal Court over the coming
months.
About Telstra
Headquartered at Melbourne, in Victoria, Australia, Telstra
Corporation -- http://www.telstra.com.au/-- is an Australian
telecommunications and information services company. Telstra
offers a full range of services and compete in all
telecommunications markets throughout Australia, providing more
than 10.3 million Australian fixed line and more than 6.5
million mobile services. In September 2005, Telstra suffered an
earnings downgrade and share price fall. The Company announced
that its earnings before interest and tax in 2005/06 are
expected to decline by 7-10% compared to that of 2004/05 as a
result of accelerating declines in public switched telephone
network revenues and softening growth in the mobiles market due
to aggressive pricing. Also, the political furor surrounding
Telstra has strengthened the Government's resolve to dispose of
its remaining 51% majority interest in the Company. The
Australian Securities and Investment Commission then commenced
an investigation into Telstra in connection with the Company's
compliance with its disclosure obligations following the
earnings downgrade. This led to a number of Telstra
shareholders and class action claimants showing anger and dismay
over the telco's behavior. In November 2005, after a four-month
review, Telstra Chief Executive Officer Sol Trujillo announced a
major restructure of the Company, one which involves the loss of
thousands of jobs over the next five years and a massive
investment in new networks which will help deliver bigger profit
margins.
TFC LIMITED: Liquidation Proceedings Set on May 1
--------------------------------------------------
Ross Trendell and Marian Joyce Trendell filed an application to
liquidate T.F.C. Limited before the High Court of Hamilton on
February 9, 2006.
The application will be heard before the Court on May 1, 2006 at
10:45 a.m.
Parties wishing to appear at the hearing are required to file
an appearance not later than April 28, 2006.
Contact: T.F. Wrigley
Wrigley Law Office
35 Stro0me Road, R.D. 3
Napier, New Zealand
THE BLIND CO-ORDINATORS: Opts to Shut Down Business
---------------------------------------------------
At a general meeting on February 16, 2006, members of The Blind
Co-ordinators Pty Limited resolved to close the Company's
business operations.
Robyn Erskine and Peter Goodin were named as liquidators for the
winding up.
Contact: Robyn Erskine
Peter Goodin
Liquidators
Brooke Bird & Company Chartered Accountants
471 Riversdale Road, Hawthorn East 3123
Australia
Telephone: (03) 9882 6666
VOTRAINT NO. 1261 PTY: Liquidator Explains Wind-up
--------------------------------------------------
A final meeting of Votraint No. 1261 Pty Limited will be
conducted today, April 20, 2006.
Liquidator R. B. McKern will present the final account regarding
the Company's wind-up operations at that meeting.
Contact: R. B. McKern
Liquidator
McGrathNicol+Partners
Level 1, 161 Collins Street
Melbourne, Victoria 3000
Australia
Telephone: (03) 9038 3100
Web site: http://www.mcgrathnicol.com.au/
* Property Group Wary of More Westpoint-style Downfalls
-------------------------------------------------------
The Australian Property Institute has warned regulators that
more Westpoint-style property collapses are possible and has
called on them to initiate more preventive measures, ABC News
Online reports.
The Troubled Company Reporter - Asia Pacific recounts that in
January 2006, Westpoint Corporation went into administration and
receivership, having raised an estimated AU$300 million from
retail investors to pour into its failed property development
projects.
According to the TCR-AP, in 2005, the Westpoint projects began
suffering from significant shortfall of assets over liabilities
so that hundreds of investors are at serious risk of not
receiving repayment of their investments. The investigations
done by the Australian Securities and Investments Commission
resulted to a series of legal actions and to the winding up of a
number of Westpoint's mezzanine companies.
The API has published a regular six-monthly survey of property
markets. API said that 70% of the valuers, fund managers,
analysts and financiers being questioned thought that mortgage-
backed funds were a moderate to major concern for the property
industry.
The ASIC needs to ensure that better information is provided in
the prospectuses of mortgage-backed funds, API president Tom
Webster said.
Mr. Webster further noted that the Westpoint structure and the
circumstances surrounding the Company are not unique, so it
"would be conceivable that there would be other Westpoint-type
disasters later down the track."
The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.
================================
C H I N A & H O N G K O N G
================================
ASUN ENTERPRISES: Members Appoint Liquidators
----------------------------------------------
By the virtue of a Special Resolution passed on March 28, 2006,
by the Asun Enterprises Limited, Ng Tze Kin and Tsui Yip Kin
were appointed as the Company's Joint and Several Liquidators.
The Liquidators are also authorized to distribute the assets
of the Company to the members as they may think fit. They will
be receiving creditors' proof of debts on or before May 8, 2006.
Failure to comply with the requirements will exclude any
creditor from the benefit of any distribution of the Company
will make.
Contact: Ng Tze Kin
Tsui Yip Kin
3/F., Malaysia Building
50 Gloucester Road
Wanchai, Hong Kong
BRIGHTFUL LIMITED: Members Final Meeting Set on May 8
-----------------------------------------------------
Members of the Brightful (H.K) Ltd will convene for a final
meeting at Room 810, Argyle Centre, 688 Nathan Road, Kowloon on
May 8, 2006, at 10:00 am.
The Company's Liquidator of the Company will give the accounts
showing the manner in which the winding up has been conducted.
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.
All members to attend and to vote at the meeting are entitled to
appoint a proxy in his behalf; proxies need not be members of
the Company.
BILL YEE INTERNATIONAL: Names Official Liquidator
-------------------------------------------------
At a March 28, 2006, meeting, the members of Billy Yee
International passed a special resolution to wind up the company
and appoint Ho Tak Kwong as official liquidator.
At the meeting, members decided that an audit of the
Liquidator's statement of accounts is not required by virtue of
an ordinary resolution.
Furthermore, the Liquidator will be receiving creditors' proof
of debts or claims on or before May 18, 2006. Failure to comply
with the requirements will exclude any creditor from the benefit
of any distribution of the Company will make.
Contact: Ho Tak Kwong
Rooms 801-03
China Merchants Building
Nos. 303-07 Des Voeux Road Central
Hong Kong
CASING TRADERS: Placed in Voluntary Liquidation
-----------------------------------------------
On March 29, 2006, members of the Casing Traders Ltd passed a
resolution to voluntarily wind up the Company and appoint Cheng
Chung Por and Ngan Lin Chun as Joint and Several Liquidators.
The Liquidators are requesting the Company's creditors to prove
their debts on o before April 28, 2006, to benefit from any
distribution the Company will make.
Contact: Cheng Chung Por
Ngan Lin Chun
1902 Mass Mutual Tower
38 Gloucester Road
Wanchai, Hong Kong
CASON DEVELOPMENT: Names Ho Sun Fung as Liquidator
--------------------------------------------------
After a meeting on January 14, 2006, the members of Cason
Development Limited decided to voluntarily wind up the Company's
operations.
Subsequently, Ho Sun Fung, Allan was appointed as liquidator.
Contact: Ho Sun Fung, Allan
Liquidator
Suite 1204, C.C. Wu Building
302-8 Hennessy Road
Wanchai, Hong Kong
CATEC INDUSTRIAL: Liquidators Cease to Act for the Company
----------------------------------------------------------
Chan Shu Kin and Chow Chi Tong former Liquidators of Catec
Industrial Limited had on April 7, 2006, ceased to act as the
Company's Joint and Several Liquidators.
DEUTSCHE FUTURES: Names Official Liquidators
--------------------------------------------
Lai Kar Yan and Darach E. Haughey were appointed a liquidators
to act jointly and severally for the Deutsche Futures H.K.
Limited pursuant to Section 253 of the Companies Ordinance.
Contact: Darach Haughey
Lai Kar Yan
26/F, Wing on Centre
111 Connaught Road Central
Hong Kong
FIS CHINA: Company Pass Winding-up Resolution
---------------------------------------------
On March 29, 2006, members of the FIS China Ltd passed a
resolution to voluntarily wind up the Company and appoint David
John Lawrence as official liquidator.
The members also passed a resolution to distribute the assets of
the Company to the members.
They also authorized the Liquidator to dispose of the Company's
books, accounts and documents after the Company has been
dissolved.
FOCUS HOLDINGS: Shareholders' Final Meeting Fixed on May 15
-----------------------------------------------------------
Shareholders of Focus Holdings Asia Ltd will convene for their
final meeting on May 15, 2006, at Room 1708, Dominion Centre,
43-59 Queens Road East, Wanchai, Hong Kong at 10:00 a.m.
At the meeting, Liquidator Wong Man Hung will present an account
showing how the Company was wound up and its property disposed
of.
As reported by Troubled Company Reporter - Asia Pacific, members
of Focus Holdings on January 27, 2006, agreed to voluntarily
wind up the Company.
G.E. BOWDEN: Members and Creditors Discuss Winding Up
-----------------------------------------------------
The members and creditors of G.E. Bowden (Hong Kong) Limited met
on February 28, 2006, and discussed the activities that took
place during the wind-up period as well as the manner by which
the Company's property was disposed of.
Contact: Cheung Ki Kai Edwin
Liquidator
Room 1204, 12/F
48-62 Hennessy Road
Hong Kong
GRACEFUL SHIPPING: Members and Creditors Opt for Liquidation
------------------------------------------------------------
On March 29, 2006, members of the Graceful Shipping Ltd passed a
special and ordinary resolution at an Extraordinary General
Meeting held at Flat 1501, West Tower, Shun Tak Centre, 168-200
Connaught Road Central, Hong Kong.
The members, through a special resolution, decided to
voluntarily wind up the Company and appoint Cheng Chuen Hon as
official Liquidator.
By the virtue of an ordinary resolution, audit of the
Liquidator's statement of accounts is not required.
GOODMARK HOLDINGS: Joint Liquidators Step Aside
-----------------------------------------------
Chan Shu Kin and Chow Chi Tong ceased to act as the joint and
several liquidators of Goodmark Holdings Limited on January 16,
2006.
Contact: Chan Shu Kin
Chow Chi Tong
9th Floor, Tung Ning Building
249-253 Des Voeux Road Central
Hong Kong
ICM CORPORATE: Ng Kit Ying Ceases to Act as Liquidator
------------------------------------------------------
On January 20, 2006, Ng Kit Ying, Zelinda ceased to act as
liquidator of ICM Corporate Management (HK) Limited.
Contact: Ng Kit Ying, Zelinda
31st Floor, The Center
99 Queen's Road Central
Hong Kong
J.H. FAURE: Joint Liquidators Step Down
---------------------------------------
Lai Kar Yan, Derek and Darach E. Haughey ceased to act as Joint
and Several Liquidators of J.H. Faure Brokerage H.K. Limited on
January 11, 2006.
Contact: Lai Kar Yan, Derek
Darach E. Haughey
Former Joint and Several Liquidators
26th Floor, Wing On Centre
111 Connaught Road Central
Hong Kong
JOLRAN INVESTMENTS: Members Pass Wind-up Resolution
---------------------------------------------------
On March 28, 2006, members of Jolran Investments Ltd passed a
special resolution to voluntarily wind up the Company and
appoint Shing Fai Wing as liquidator.
Contact: Shing Fai Wing
1/F., Joyce Building
38 Wong Chuk Hang Road
Hong Kong
MIRAGE LIMITED: Enters Winding Up Proceedings
---------------------------------------------
A special resolution to dissolve Mirage Limited was passed by
the Company on January 20, 2006.
Subsequently, Hui Chun Chun, Olivia, was appointed to facilitate
the liquidation of the Company's assets.
Contact: Hui Chun Chun, Olivia
Liquidator
19/F., Tien Chu Commercial Building
173-174 Gloucester Road
Wanchai, Hong Kong
NATIONWIDE TREASURE: Court Issues Wind-up Order
-----------------------------------------------
Nationwide Treasure (HK) Limited has received a wind-up order
from the High Court of the Hong Kong Special Administrative
Region Court of First Instance on March 24, 2006.
Contact: Edward Thomas O'Connell
Official Receiver
HKSAR-Official Receiver's Office
10th Floor, Queensway Government Offices,
66 Queensway, Hong Kong
Telephone: 2867 2426
Fax: 3105 1814
e-mail: eamonn@oro.gov.hk
NEW WORLD HOTELS: Liquidator Ceases to Act for the Company
--------------------------------------------------------
Mark J. Bradley, former liquidator of New World Hotels
International (Macau) Ltd, ceased to act as such on March 28,
2006.
NIPPON KANKO: Liquidator Presents Wind-up Report
------------------------------------------------
The members of Nippon Kanko Tours Limited on February 20, 2006,
held a final meeting to receive the accounts of the liquidator
showing the manner in which the winding-up of the Company has
been conducted and its property disposed of.
Contact: Ip Yin Wah
Liquidator
Room 1603, 16/F
Nam Wo Hong Building
148 Wing Lok Street
Sheung Wan
Hong Kong
NORMAN INSURANCE: Appoints Official Liquidators
-----------------------------------------------
By virtue of a Special Resolution passed by the Norman (H.K.)
Insurance Company Ltd on March 29, 2006, Ying Hing Chiu and
Chung Miu Yin were appointed Joint and Several Liquidators for
the Company.
Contact: Ying Hing Chiu
Chung Miu Yin
28/F Three Pacific Place
1 Queens Road East
Hong Kong
PRICE WATERHOUSE MANAGEMENT: Creditors' Claims Due April 28
-----------------------------------------------------------
Price Waterhouse Management Consultants Ltd will be receiving
creditors' proof of debts or claims on or before April 28, 2006.
Creditors are requested to send in their particulars to the
solicitors and liquidators of the Company.
Failure to comply with the requirements will exclude any
creditor from the benefit of any distribution of the Company
will make.
Contact: Ying Hing Chiu
Chung Miu Yin
Level 28, Three Pacific Place
1 Queens Road East
Hong Kong
SPLENDOR LIGHTS: Creditors to Confirm Liquidator's Appointment
--------------------------------------------------------------
Creditors of Splendor Lights & Crafts Ltd will meet on April 29,
2006 at Room 704 Tung Wai Commercial Building, 109-111
Gloucester Road, Wanchai, Hong Kong at 9:30 a.m to confirm the
appointment of the Company's liquidator.
Forms of general and special proxies may be obtained and lodged
at the above address the day before the scheduled meeting.
THAI ASSET: Creditors' to Prove Debts by April 28
-------------------------------------------------
Members of the Thai Asset Fund Ltd passed a Special Resolution
on March 10, 2006, putting the Company into a voluntary
liquidation.
The Special Resolution also appoints Darach Haughey and Lai Kar
Yan as Joint and Several Liquidators.
All creditors to the Company are requested to settle the amounts
concerned and send a detailed account of their claims directly
with the Liquidators on or before April 28, 2006.
Contact: Darach Haughey
Lai Kar Yan
26/F, Wing on Centre
111 Connaught Road Central
Hong Kong
TOYOTA TSUSHO: Joint and Several Liquidators Appointed
------------------------------------------------------
On March 31, 2006, members of the Toyota Tsusho (H.K.) Ltd
passed a Special Resolution to voluntarily wind-up the Company
and appoint Yoshiro Murakami and Tsunenaga Moriyama as Joint and
Several Liquidators.
WING FUNG GOLD: Final Members Meeting Slated for May 10
-------------------------------------------------------
Members of the Wing Fung Gold Electroforming Company Ltd will
meet for its final meeting at Unit 601-604 Hilder Centre, 2 Sung
Ping Street, Hunghom Kowloon, Hong Kong on May 10, 2006, at
11:00 am.
At the meeting, the Company's liquidator will give the accounts
showing the manner in which the winding up has been conducted.
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.
W.S. CHOY: Members Hear Liquidator's Wind-up Report
---------------------------------------------------
The final general meeting of W.S. Choy & Company Limited was
held on February 21, 2006.
At the meeting, members received Joint Liquidators Natalia Seng
Sze Ka Mee and Cynthia Wong Tak Yee's final account showing how
the Company was wound up and how its property was disposed of.
Contact: Natalia Seng Sze Ka Mee
Cynthia Wong Tak Yee
Joint and Several Liquidators
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
=========
I N D I A
=========
CEMENT CORPORATION: Gov't to Set Up INR90-crore Cement Plant
------------------------------------------------------------
The Union Heavy Industry Ministry's plan to set up an INR90-core
cement manufacturing facility to be operated by state-owned
Cement Corporation of India has obtained the Union Cabinet's
approval, The Telegraph relates.
The plant, which is to be the second largest in South Assam's
Cachar District, would be set up at Baikanthapur village.
Cement Corporation of India's Bokajan unit will run the
facility, which is expected to yield nearly 100 tonnes of cement
a day.
About Cement Corporation of India
Cement Corporation of India Limited --
http://www.cementcorporation.com/-- was incorporated in the
year 1965 as a wholly owned undertaking of the Government of
India. The Corporation started incurring losses since 1984-85
and its net worth was eroded completely in the year 1994-95. In
March 2006, the Government has cleared a revival package for the
ailing public state utility.
The Company's revival package includes:
* the closure and sale of assets of seven ailing units;
* the expansion of three units at an investment of INR141.11
crore;
* the waiver of interests on government loans, worth
INR886.22 crore; and
* the conversion of loans worth INR355.43 crore into
redeemable preference capital.
The closure of the seven non-operational units is expected to
reduce the outgo on payment of idle wages and enable the
Government to sell the assets to meet liabilities and infuse
fresh funds for the expansion and modernization of three units
to make them self-sufficient and profit generating. Pursuant to
the revival plan, Cement Corporation will also get a plan
assistance amounting INR30.67 crore and a non-plan assistance of
INR153.62 crore. The Company will have to repay loans worth
INR304.52 crore to the Government.
DUNLOP INDIA: To Sue BSE Over Trade Ban
---------------------------------------
Dunlop India Limited is considering taking legal action against
the Bombay Stock Exchange for refusing to let its shares trade
on the bourse, The Telegraph reveals. Trading on Dunlop shares
were suspended since February 2006 due to non-payment of listing
fees.
Dunlop's new promoter, the Ruia Group, has already initiated the
process of lifting the suspension and had submitted all
necessary documents to the Bourse. The Group, likewise, cleared
the arrears on account of non-payment of listing fees.
However, the BSE refused to allow trading on Dunlop shares,
saying the Company has been referred to the Appellate Authority
of Industrial and Financial Reconstruction. The listing
committee of the Exchange unanimously decided to wait till the
AAIFR issued its final order before taking any decision in this
regard.
Ruia argued that there was no reason for the BSE to wait for
AAIFR's decision since it did not discuss the Dunlop case with
the AAIFR when it decided to bar the Company from trading.
Dunlop's stock could not even trade in the Calcutta, Delhi,
Chennai and Ahmedabad bourses, which decided to follow BSE's
decision.
Depository participants, like National Securities Depository Ltd
and Central Depository Services (India) Ltd, have also turned
down the plea to dematerialize Dunlop stocks, arguing that the
BSE must lift suspension on trading before they take any
decision in this regard.
Dunlop India has 35,000 retail investors. Originally in the B-1
category, the Company's scrip is now in the Z-group, denoting
lack of regulatory compliance by firms.
About Dunlop India
Headquartered in Kolkota, India, Dunlop India Limited is
involved principally in manufacturing and distributing
automotive tires and tubes. The firm's other activities include
manufacturing high-pressure hoses, steelcord belting and
vibration isolators. The company had reported profit until
March 1997. In January 1998, the Board of Directors decided
that the Company had become sick due to the necessity of
reversing the earlier decision for sale of some real estate
property of the company through a subsidiary, Dunlop Investment
Limited. This decision required a reversal of corresponding
entry of INR1,700 million and its reflection in the accounts of
the financial year 1997-98. After taking this into account, the
Board of Directors decided to refer the Company to Board of
Industrial and Financial Reconstruction and abruptly announced
suspension of Dunlop's operations in both Sahaganj and Ambattur
in February 1998. The Ministry for Law, Justice and Company
Affairs had also come to the conclusion after inspection of the
Books of Accounts of Dunlop India that there were serious
irregularities and had moved the Company Law Board for
appointment of Government Directors. In January 2006, the Ruia
Group took over the Company and voted to re-open its plants in
within this year.
INDIAN OIL: Incurs US$17.7-Mln Daily Losses on Subsidy
------------------------------------------------------
Indian Oil Corporation is losing US$17.7 million or INR800
million everyday due to the Government's control on fuel prices,
Reuters reports.
Indian Oil Charman Sarthak Behuria estimates the Company's
losses to hit INR300 in the fiscal year ending March 31, 2007,
if current global crude prices prevail.
The Troubled Company Reporter - Asia Pacific reported on
September 7, 2005, that Indian Oil was losing INR520 million or
US11.8 million everyday because it was selling petrol, diesel,
liquefied petroleum gas and kerosene below the cost price.
The oil firm revealed last year its accumulated losses had
already reached INR73.50 billion, the TCR-AP stated.
Meanwhile, The Hindu reports that Indian Oil is asking the
Government to allow it to increase petrol and diesel prices to
INR5.6 per liter and INR7.6 per liter, respectively, in a bid to
offset the huge losses it incurs daily for selling fuel at
subsidized prices.
The Company was selling petrol at INR5.67 per liter lower than
the imported cost while diesel was being sold at INR7.60 a liter
discount to the imported cost. Kerosene, on the other hand, was
being sold at a loss of INR13 per liter and the company was
losing INR191 on sale of every cylinder of domestic cooking gas,
The Hindu says.
About Indian Oil Corporation
Indian Oil was established as Indian Oil Company Limited in
1959. Indian Oil Corporation was formed in 1964 with the merger
of Indian Refineries Limited with the Indian Oil Company Ltd.
Indian Oil's countrywide network of over 22,000 sales points is
backed for supplies by its extensive, well spread out marketing
infrastructure comprising 167 bulk storage terminals,
installations and depots, 94 aviation fuelling stations and 87
LPG bottling plants. Its subsidiary, IBP Co. Ltd, is a stand-
alone marketing company with a nationwide network of over 3,000
retail sales points.
In spite of its large production capacity and smooth operations,
Indian Oil incurred huge losses as a result of a Government
mandate, which prohibits public sector oil marketing firms from
raising fuel prices despite skyrocketing global prices. For
years, Indian Oil has been selling fuel at subsidized prices,
which is way below the costs it pays for importing fuel from
overseas markets. The Company has not been able to pass on the
high prices leading to large under-recoveries and losses.
Early this year, the Government has offered a bailout package to
help rescue oil companies, including Indian Oil, from going
bankrupt. Under the package, the Government issued Indian Oil,
Bharat Petroleum, Hindustan Petroleum and IBP oil bonds worth
INR10,000 crore to INR12,000 crore to compensate them for not
raising LPG and kerosene prices. The move was expected to
improve their balance sheets.
=================
I N D O N E S I A
=================
GARUDA INDONESIA: Eyes Partnership With Air Zimbabwe
----------------------------------------------------
Air Zimbabwe and PT Garuda Indonesia are expected to sign a
code-sharing agreement to launch direct air services between
Harare and Jakarta, Allafrica.com relates.
As part of the code-share agreement, Air Zimbabwe flights that
connect to Beijing, Singapore and Indonesia would accommodate
Garuda Indonesia passengers and vice-versa.
Zimbabwe Tourism Authority's chief executive officer, Karikoga
Kaseke, said that the move would ensure that visitors from
Zimbabwe and Indonesia would have no difficulties traveling to
the two countries.
Mr. Kaseke added that there was a need for Zimbabwe to conclude
a bilateral air services agreement with Indonesia to pave way
for the code-sharing agreement soon.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves another 10 domestic routes. Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The 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.
=========
J A P A N
=========
HEKITENSHA: Writers Angered by Bankruptcy Filing
------------------------------------------------
Around 250 writers express anger over major publisher
Hekitensha's bankruptcy filing with the Tokyo Bankruptcy Court
on March 31, 2006, as they had already paid as much as JPY1
million to have their books published, the Yomiuri Shimbun
reports.
Hakitensha listed its total debts at about JPY860 million.
At a creditors' meeting held on April 6, 2006, the writers said
that they are angry because they feel ripped off and the Company
has not expressed any intention to refund the payments they
made.
Hekitensha's president apologized to the writers, saying he
invested his own personal assets and tried to raise funds, but
it was not enough to revive the firm. The Company's bankruptcy
lawyer said it is not easy to refund the writers, since
Hekitensha employees have to be paid first. Hekitensha does not
have any significant assets, the Yomiuri Shimbun says, citing
unnamed sources.
Japanese self-publishing book company Hekitensha was established
in 1979, and released 401 publications in 2004, making it the
20th largest number of books issued by a vanity publisher. The
Company started experiencing trouble in recent years due to
aggressive competition from other publishers.
LIVEDOOR COMPANY: U.S. Investment Firm Increases Stake
------------------------------------------------------
United States-based investment firm Baupost Group L.L.C. has
increased its 6.72% stake in struggling Japanese Internet firm
Livedoor Company Limited to 8.19%, Crisscross News reveals.
Baupost bought shares in the Company two days before it was
delisted from the Tokyo Stock Exchange, saying it was for
investment reasons, a TMC News report stated.
About Livedoor
Headquartered in Tokyo, Japan, Livedoor Company Limited --
http://corp.livedoor.com/en/-- is engaged in Internet-related
business. It is involved in many sectors, including out portal
site "livedoor", financial business, corporate web solutions,
data center and IP telephony business. In 2005, prosecutors
raided Livedoor's office on suspicions of accounting fraud.
Company executives were alleged to have relayed false
information on a merger, with the intent to boost the stock
price of a Company subsidiary. Livedoor's stock price plunged
on allegations that the Company concealed a huge JPY1 billion
loss for the financial year ended September 2004.
The Troubled Company Reporter - Asia Pacific reported on
April 18, 2006 that Livedoor's shares were delisted from the
Tokyo Stock Exchange on April 14, 2006.
MITSUBISHI MOTORS: To Pay JPY5-Mln in Damages for Accident
----------------------------------------------------------
Japan's Yokohama District Court ordered Mitsubishi Motors
Corporation to pay JPY5.5 million worth in damages for a vehicle
defect that caused the accidental death of a woman and injuries
to her two sons, Kyodo News says.
The 29-year old Shiho Okamoto was killed when she was struck by
a wheel that flew off a Company truck in Yokohama on January 10,
2002. Her two sons, who were with her at the time, were hurt.
Yoko Masuda, mother of the deceased, sought a total of JPY165
million in damages -- JPY65 million in compensation and JPY100
million in punitive damages -- from Mitsubishi Motors and the
state, on grounds that it would fully compensate the family for
the suffering caused by the Company's negligence, and to prevent
future similar incidents.
But the court ruled that Mitsubishi Motors pay only JPY5.5
million to the family, and the Government was not ordered to pay
damages, according to the Japan Times. Judge Hiroyuki Shibata
read the decision in behalf of presiding Judge Hiroshi Yamamoto,
who had been transferred, saying that imposing punitive damages
is not consistent with Japan's legal system.
Mrs. Masuda filed an appeal with the Tokyo High Court.
Mitsubishi Motors, fearing a tainted corporate image and loss of
sales if it recalled its vehicles, apologized for failing to do
so, but argued against paying punitive damages, whereas the
government said it could not determine if the Company truck had
defects before the 2002 incident, the Times reports.
Mitsubishi spun off its truck division into Mitsubishi Fuso
Truck & Bus Corporation in 2003, and recalled the defective
trucks a year later.
About Mitsubishi Motors
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation--
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.
The Company also operates consumer financing services and
provides this to its customer base.
Mitsubishi's problems stem, in part, from the scandal
surrounding years of systematically covering up defects and ill-
advised auto lending policies in the United States.
* * *
The TCR-AP reported on March 31, 2006, that Moody's Investors
Service changed the outlook of Mitsubishi's Ba3 long-term debt
rating to stable from negative, which reflects Moody's
expectation that the Company's credit profile may continue
improving profitability recovering due to improved cost
structures and an increased market position due to global
introductions of new models.
SONY CORPORATION: To Sell Assets in Restructuring Plan
------------------------------------------------------
Sony Corporation plans to sell two United States-based business
jets as part of its restructuring efforts, IDG News relates.
The Company currently has five business jets -- three are based
in the United States, while one is in Japan and the other in
Europe. Sony spokeswoman Mami Imada said that they plan to move
the Japan-based and Europe-based jets to the United States to
replace the ones that are to be sold, in order to avail of
commercial flights for its top officials.
A September 28, 2005 report by the Troubled Company Reporter -
Asia Pacific states that on September 22, Sony announced its
group corporate strategy for FY2005-FY2007, with a focus on
strengthening group performance through revitalization of its
electronics division. According to the plan, Sony aims to
achieve consolidated sales of over JPY8 trillion and an
operating profit margin (before restructuring and one time
charges) of 5% (electronics 4%) by the end of fiscal year ending
March 31, 2008. The Company says that the restructuring is
going smoothly, and is slated to post its full-year financial
results for 2005 on April 27, 2006.
* * *
Headquartered in Tokyo, Japan, Sony Corporation's --
http://www.world.sony.com/-- principal activities are to
develop, design, manufacture and sell electronic equipment,
instruments and devices for consumer and industrial markets.
The Group also manufactures and markets home-use game consoles
and software. The Group operates through six segments:
electronics; game; music; pictures; financial services and other
segment.
The TCR-AP reported on March 30, 2006, that the Company still
has a long way to go in terms of restructuring, citing Sony
president Ryoji Chubachi, although the Company has improved its
earnings with the success of a new liquid crystal display TV
brand, and has regained customer confidence.
=========
K O R E A
=========
HYUNDAI MOTOR: Vice Chairman Quizzed by Prosecutors
---------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
March 31, 2006, that prosecutors 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.
In an update on April 19, 2006, The Korea Times relates that the
prosecution has questioned Kim Dong-jin, vice-chairman of
Hyundai Automotive Group, regarding his part in the slush fund
issue. According to the report, the prosecutor did not
elaborate on the details of its inquiry into Mr. Kim.
The prosecutors are also set to subpoena Hyundai Motor Chairman
Chung Mong-koo and his son, Eui-sun, president of Kia Motors
Corporation, possibly early next week. Mr. Chung was scheduled
to return in South Korea yesterday, after attending the
groundbreaking ceremony for Hyundai's second plant in China. He
left for Beijing on Sunday.
The conglomerate also faces a charge of attempting to bribe
officials in financial circles during 2001 to have the bad debts
of its affiliates written off.
Meanwhile, The Korea Herald states that Kim Dong-hoon, a
certified public accountant, has been arrested and has admitted
to receiving KRW4.16 billion from the group. The money was
delivered to high-ranking officials of the government and
financial institutions to cancel KRW55 billion worth of
Hyundai's bad debts.
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 one 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%. The Company also manufactures machine tools for factory
automation and material- handling equipment.
The Chosun Ilbo reported on April 17, 2006, that the Hyundai
Automotive Group is facing its deepest crisis since chairman
Chung Mong-koo took over in 1999, with problems like the falling
United States dollar, high oil prices and union demands
aggravated by a sweeping criminal investigation regarding the
carmaker's alleged creation of slush funds that were used by at
least two lobbyists to bribe government officials for business
favors, specifically to have KRW55 billion worth of Hyundai's
bad debts written off.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning. The automaker has to delay the
launching of its new Santa Fe SUV, which was scheduled to start
production in the United States this month.
Kia Motor President Chung Eui-sun, the group chairman's son, is
currently under a travel ban. Other affiliates are also feeling
the pinch. Amid all this, Hyundai Motor's labor union is
demanding a wage increase of 9.1% or KRW125,524 (US $125),
significantly more than 2005's 6.9% or KRW89,000. The union is
expected to capitalize on the slush fund allegations in support
of its case and make matters worse for management.
The United States dollar's falling value against the won is
dealing a severe blow to the group's exports. The greenback
plunged from KRW1,013 on January 2, 2006, to KRW954.1 on April
12, down KRW58.9 in just 100 days. Hyundai and Kia say that for
every KRW100 drop in the United States dollar, operating profits
fall some KRW1.05 trillion. Song Sang-hun, an analyst with
Hyundai Securities, says a 10% rise in domestic oil prices from
KRW1,500 to KRW1,650 per liter has caused auto sales here to
decline by 110,000 units.
HYUNDAI MOTOR: Prosecutors Release Executives
---------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
April 19, 2006, that prosecutors detained two top executives of
Hyundai Motor Co. and a former executive of Korea Development
Bank, for allegedly taking part in a slush fund scandal
involving the carmaker.
Hyundai's vice-president in charge of procurement, Kim Seung-
nyun; Hyundai Chief Financial Officer Lee Jung-dae; and Korea
Development Bank's former deputy governor Park Sang-bae, are
charged for their involvement in the scandal, wherein Hyundai is
suspected of embezzling money from affiliates and creating a
slush fund that was used by at least two lobbyists to bribe
government officials for business favors.
In an update, NDTVprofit.com reports that the prosecutors had
already released Mr. Lee and Mr. Kim Seung-nyun. The news media
did not reveal the result of the questioning.
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 one 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%. The Company also manufactures machine tools for factory
automation and material- handling equipment.
The Chosun Ilbo reported on April 17, 2006, that the Hyundai
Automotive Group is facing its deepest crisis since chairman
Chung Mong-koo took over in 1999, with problems like the falling
United States dollar, high oil prices and union demands
aggravated by a sweeping criminal investigation regarding the
carmaker's alleged creation of slush funds that were used by at
least two lobbyists to bribe government officials for business
favors, specifically to have KRW55 billion worth of Hyundai's
bad debts written off.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning. The automaker has to delay the
launching of its new Santa Fe SUV, which was scheduled to start
production in the United States this month.
Kia Motor President Chung Eui-sun, the group chairman's son, is
currently under a travel ban. Other affiliates are also feeling
the pinch. Amid all this, Hyundai Motor's labor union is
demanding a wage increase of 9.1% or KRW125,524 (US $125),
significantly more than 2005's 6.9% or KRW89,000. The union is
expected to capitalize on the slush fund allegations in support
of its case and make matters worse for management.
The United States dollar's falling value against the won is
dealing a severe blow to the group's exports. The greenback
plunged from KRW1,013 on January 2, 2006, to KRW954.1 on April
12, down KRW58.9 in just 100 days. Hyundai and Kia say that for
every KRW100 drop in the United States dollar, operating profits
fall some KRW1.05 trillion. Song Sang-hun, an analyst with
Hyundai Securities, says a 10% rise in domestic oil prices from
KRW1,500 to KRW1,650 per liter has caused auto sales here to
decline by 110,000 units.
HYUNDAI MOTOR: Breaks Ground for Second Plant in China
------------------------------------------------------
As reported by the Troubled Company Reporter - Asia Pacific,
Hyundai Motor Chairman Chung Mong-koo left for China on
April 17, 2006, to attend a groundbreaking ceremony for the
second factory in the mainland.
According to the TCR-AP, the new plant is expected to double the
automaker's production capacity in the mainland to 600,000
vehicles a year.
In a press statement, Hyundai Motor said a total of US$1 billion
would be invested in the new plant.
Anticipating a surge in China's economic growth precipitated by
the 2008 Beijing Olympics and 2010 Shanghai Expo, the new plant
will include a research and development center and will position
Hyundai to challenge China's automotive leaders.
Mr. Chung was joined in the groundbreaking ceremony by high-
ranking Chinese government officials including Beijing Vice
Mayor Lu Hao; Li Ping, the head of the Shunyi District, which is
home to Beijing Hyundai Motor Co.; and Cheng Lian Yuan, director
of the Beijing Municipal Bureau of Industrial Development.
Mr. Chung said that Beijing Hyundai has achieved great success
in a short time because of the Chinese government's and
customers' help. He added that the Company will move ahead
aggressively, not only with manufacturing but also with
developing its R&D capability in China, and re-energizing its
sales and service operations, all of which will make Beijing
Hyundai a self-sustaining operation.
This year, Beijing Hyundai passed the 500,000 cumulative sales
mark, just 40 months after launching the Sonata, its first model
in the Chinese market.
Beijing Hyundai started producing Sonata in December 2002 and in
2003, its first full year of sales reached 52,129 units making
Beijing Hyundai China's 13th largest automaker. Sales soared to
144,088 units in 2004 and by 2005, sales had catapulted to
233,668 units making Beijing Hyundai China's 4th best selling
brand. This year, Beijing Hyundai is targeting sales of
300,000.
Beijing Hyundai's second plant is located in the Shunyi District
near the Beijing International Airport and is just two
kilometers from the first plant. The US$1 billion second plant
will also include an R&D complex, which will be completed
simultaneously with the plant.
Beijing Hyundai now builds four models: Sonata, Elantra, Tucson
and Accent. Elantra has won numerous accolades in China and is
Beijing Hyundai's bestseller with 176,589 units sold in 2005.
The EF Sonata is one of China's best-known, most prestigious
brands being the preferred car China's burgeoning middle class.
The Sonata and Elantra were designated by Beijing municipal
authorities as the official standard taxi models. The capital's
taxi fleet is formidable with 67,000 licensed taxis operating in
Beijing. Last month, 15,000 Hyundai taxis were sold accounting
for 80 percent of new taxi registrations during the month.
With the second plant Beijing Hyundai will emerge as the leader
of the Chinese industry. By 2008, Hyundai and its affiliate Kia
Motors Corporation (Dongfeng Yueda, Kia's joint venture in
China, will account for 430,000 capacity by 2008) will have a
combined capacity of 1.03 million units in China to achieve a
20% share of the Chinese market.
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 one 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%. The Company also manufactures machine tools for factory
automation and material- handling equipment.
The Chosun Ilbo reported on April 17, 2006, that the Hyundai
Automotive Group is facing its deepest crisis since chairman
Chung Mong-koo took over in 1999, with problems like the falling
United States dollar, high oil prices and union demands
aggravated by a sweeping criminal investigation regarding the
carmaker's alleged creation of slush funds that were used by at
least two lobbyists to bribe government officials for business
favors, specifically to have KRW55 billion worth of Hyundai's
bad debts written off.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning. The automaker has to delay the
launching of its new Santa Fe SUV, which was scheduled to start
production in the United States this month.
Kia Motor President Chung Eui-sun, the group chairman's son, is
currently under a travel ban. Other affiliates are also feeling
the pinch. Amid all this, Hyundai Motor's labor union is
demanding a wage increase of 9.1% or KRW125,524 (US $125),
significantly more than 2005's 6.9% or KRW89,000. The union is
expected to capitalize on the slush fund allegations in support
of its case and make matters worse for management.
The United States dollar's falling value against the won is
dealing a severe blow to the group's exports. The greenback
plunged from KRW1,013 on January 2, 2006, to KRW954.1 on April
12, down KRW58.9 in just 100 days. Hyundai and Kia say that for
every KRW100 drop in the United States dollar, operating profits
fall some KRW1.05 trillion. Song Sang-hun, an analyst with
Hyundai Securities, says a 10% rise in domestic oil prices from
KRW1,500 to KRW1,650 per liter has caused auto sales here to
decline by 110,000 units.
LG CARD: Hana Joins Bidding Race
--------------------------------
As reported by the Troubled Company Reporter - Asia Pacific on
March 28, 2006, Hana Financial Group is now eyeing a stake in LG
Card Co. Ltd. after its attempt to acquire Korea Exchange Bank
failed.
Hana Financial said that it is in desperate need to merge with
other institutions to survive in the financial market.
Analysts expect that the lender itself will be a merger target
for foreign rivals.
In an update on March 17, 2006, the Korea Times relates that
Hana Financial Group is set to submit a preliminary bid for LG
Card and is considering forming a consortium for the bidding.
Hana said a final decision would come after it has completed its
due diligence on the card firm.
Hana is likely to compete with Shinhan Financial Group and the
National Agricultural Cooperative Federation.
The TCR-AP recounts that LG Card creditors are hoping that the
sale will succeed so they could recover around KRW5 trillion
spent in bailing out LG Card in 2004. The sale is expected to
generate between KRW5.4 trillion and 6.23 trillion.
In addition, LG Card posted a net profit of KRW1.36 trillion in
2005, a turnaround from a loss of KRW81.6 a year earlier.
Decreased bad debt expenses and improved profitability boosted
their bottom line, the Company said.
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.
===============
M A L A Y S I A
===============
COMSA FARMS: Bourse to Act on Failure to Submit Annual Reports
--------------------------------------------------------------
As reported by the Troubled Company Reporter - Asia Pacific on
April 10, 2006, Comsa Farms Berhad said that it has submitted
its Annual Audited Account 2005 to Bursa Malaysia Securities
Berhad on April 5, and that it intended to submit its Annual
Report 2005 by April 18.
The Company, however, failed to submit the outstanding financial
statements on the promised date.
Bursa Malaysia warned that it may suspend trading and eventually
delist the securities of Comsa Farms after the Company failed to
submit its Annual Report for the financial year ended March 31,
2005, for public release. The financial statement was initially
due on September 2005.
The TCR-AP also reported that the Company's securities had been
suspended from trading since November 2, 2005. The Company had
received a Notice of Delisting from Bursa Securities on
March 28, 2006.
About Comsa Farms Berhad
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 embroiled 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. On
April 10, 2006, the Company was declared a Practice Note 17
company by Bursa Malaysia due to its deficits inf shareholders
equity totaling MYR89,412,000. As an affected listed issuer,
Comsa Farms is required to submit a plan to regularize its
financial condition.
DATUK KERAMAT: Faces Delisting Over Listing Requirement Breach
--------------------------------------------------------------
Datuk Keramat Holdings Berhad has failed to submit its Annual
Report for the 15 months ended December 31, 2004, to Bursa
Malaysia Securities Berhad for public release within the
stipulated timeframe pursuant to Bursa Malaysia Securities
Berhad's Listing Requirements. The submission deadline was on
June 30, 2005.
Under the Listing Requirements, if a listed issuer fails to
issue the outstanding financial statements within three months
from its due date, the Bourse will suspend trading in the
Company's securities in addition to any enforcement action that
the Bourse may take.
Furthermore, if a listed issuer fails to issue the outstanding
Financial Statements within six months from the expiry of the
Relevant Timeframes, delisting procedures will be commenced
against the affected issuer.
As reported by the Troubled Company Reporter - Asia Pacific on
April 4, 2006, Datuk Keramat explained that the delay in the
issuance of its Financial Statements was due to the fact that
the Company was still working on a proposed restructuring
scheme.
The expected date of the Financial Statements submission will
depend on the outcome of the restructuring plan.
The consequences of non-compliance of the requirement may result
in the Company being suspended and delisted by Bursa Malaysia
Securities Berhad.
The TCR-AP stated on March 16, 2006, that Bursa Securities has
decided to delist Datuk Keramat's securities from the Official
List of Bursa Securities on March 22 as the Company does not
have an adequate level of financial condition to warrant
continued listing on the Bourse.
According to the report, the Company had immediately lodged an
appeal against the Bourse's decision with the Bourse's Appeals
Committee. Thus, Bursa Securities had postponed the delisting
until a ruling on the appeal is entered.
About Datuk Keramat Holdings
Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings
Berhad is engaged in investment and property holding. The
Company is also involved in management services; property
investment services; project management services and
development; credit and financing activities; distribution and
publication of magazines; media design and advertising;
management of supermarket and departmental store; trading and
distribution of pharmaceutical, management of car park, garment
manufacturing and financial services. On January 24, 2005, the
Company was been served with a winding-up petition by Affin Bank
Bhd, who claimed a sum of MYR15.66 million as of May 31, 2002,
in respect of revolving credit facilities granted to the
Company. The Company has been suffering tight liquidity and is
facing delisting due to its failure to submit its financial
reports to Bursa Malaysia. The Company explained that the
issuance of its financial statements was delayed because it is
still working on the proposed restructuring scheme.
DATUK KERAMAT: High Court Grants 10-Month Stay of Execution
-----------------------------------------------------------
On April 17, 2006, the High Court of Malaya in Kuala Lumpur
issued an order staying the execution of a Summary Judgment
against Datuk Keramat Holdings Berhad by Danaharta Urus Sdn Bhd.
The Stay pf Execution will last for 10 months from April 17,
2006, with both parties being given liberty to apply.
As reported by the Troubled Company Reporter - Asia Pacific,
Datuk Keramat, on March 13, 2006, obtained an interim stay of
judgment, lasting until the final disposal of the Company's
application for stay, which was heard on April 17, 2006.
According to the TCR-AP, Danaharta has received an order on
January 13, 2005, to collect a judgment sum of MYR88,384,865
from Datuk Keramat for breaching a restructuring facility
agreement between the two parties.
Background
Datuk Keramat had entered into a restructured facility agreement
with Danaharta in 2003. However, the Company planned to enter
into a proposed Debt Restructuring Scheme with the creditors of
the Company and sought the views of Danaharta. After various
meetings with Danaharta and based upon the agreement of
Danaharta to support the proposed Debt Restructuring Scheme, the
Company had appointed Merchant Bankers and circulated the
proposed Debt Restructuring Scheme to Datuk's creditors of the
Company including Danaharta. Under the agreed scheme, the Datuk
will issue Irredeemable Convertible Unsecured Loan Stocks to its
creditors including Danaharta.
The Company agreed with Danaharta that it would pay the sum of
MYR150,000 per month for the initial letter of offer of the
restructured facility to be suspended. The Company had complied
with its part of the agreement and Danaharta had accepted the
payments without any pre-conditions prior to the suit being
commenced. In breach of the agreement, Danaharta had commenced
a suit against the Company.
The Company contends that the suit filed by Danaharta is without
any merits or basis and the Company is therefore defending the
unfounded claims.
Meanwhile, the TCR-AP stated on March 13, 2006, that Bursa
Malaysia has reprimanded Datuk Keramat for not updating the
Bourse on the status of the demand received from Danaharta Urus
Sdn Bhd since September 16, 2003. Datuk also failed to make an
immediate announcement on the writ of summons and the receipt of
a letter of demand, with regard to the MYR88.38-million claim by
Danaharta Urus.
About Datuk Keramat Holdings
Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings
Berhad is engaged in investment and property holding. The
Company is also involved in management services; property
investment services; project management services and
development; credit and financing activities; distribution and
publication of magazines; media design and advertising;
management of supermarket and departmental store; trading and
distribution of pharmaceutical, management of car park, garment
manufacturing and financial services. On January 24, 2005, the
Company was been served with a winding-up petition by Affin Bank
Bhd, who claimed a sum of MYR15.66 million as of May 31, 2002,
in respect of revolving credit facilities granted to the
Company. The Company has been suffering tight liquidity and is
facing delisting due to its failure to submit its financial
reports to Bursa Malaysia. The Company explained that the
issuance of its financial statements was delayed because it is
still working on the proposed restructuring scheme.
MALAYSIA AIRLINES: Says In-flight Meal Prices are Reasonable
------------------------------------------------------------
For the first time, Malaysia Airlines clarified speculations
that it was serving costly meals to its passengers, The Edge
Daily says.
A local news report on April 17, 2006, stated that the nasi
lemak served on Malaysia Airlines in-flight meal costs the
national carrier between MYR5.85 and MYR36.78 per passenger,
while the cost of premium tea is between 11 sen and 60 sen per
serving and that each coffee-bag was between MYR1.36 and
MYR3.20.
Malaysia Airlines, however, insisted that it is serving in-
flight meals at reasonable costs, adding that it is keeping meal
costs low compared to top hotels and restaurants.
The airline told The Edge that it is able to secure products
from suppliers at subsidized prices in return for the brand
recognition they get by associating with a five-star carrier
like Malaysia Airlines.
The carrier said that in its new service delivery and trolley
services, the cost of nasi lemak per passenger is between
MYR15.97 and MYR36.78 for its first class and business class.
It said NSD is a new service where food is prepared in the
galley by cabin crew and served directly to first and business
class passengers, with emphasis on meal presentation.
Meanwhile, the nasi lemak served in a casserole to business and
economy class passengers cost between MYR5.85 and MYR7.13 per
passenger. Malaysia Airlines also added that the need for
gourmet coffee and tea was necessary for its customer service
and to sustain its competitive standards.
Nevertheless, the airline reassured its customers that while it
is prudent in its expenditure for frontline service, it does not
compromise on the quality of its products and services, both in-
flight and on ground.
About Malaysia Airlines
Headquartered in Selangor, Malaysia, Malaysia Airlines
-- http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with our airline
partners. The carrier is currently facing financial
difficulties. It made a loss after tax of MYR1.3 billion for
MYR2005 and MYR616 million for the nine-month to December 31,
2005, due to high fuel and operating costs, and unprofitable
routes. In late February 2006, it unveiled a radical rescue
plan to raise MYR4 billion in order to stay afloat and return to
profitability by next year. Under the restructuring plan, the
airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
Whistle-blowing and stop corporate sponsorship.
MBF HOLDINGS: Offers Cash Bid for Carpenters Shares
---------------------------------------------------
MBf Holdings, on April 11, 2006, unveiled an off-market AU$0.85-
a-share cash bid for minority shareholders in MBf Carpenters,
leading to the delisting of the company on the Australian Stock
Exchange, The National reports.
Analysts said that the deal was likely to succeed because MBf
Holdings already held 97.59% interest in MBf Carpenters, which
has a major corporate presence in Papua New Guinea and Fiji.
MBf directors said the offer price compared with a last traded
price of AU$0.50 and was the highest price in more than 10
years. They also noted that the stock has been illiquid over
the past five years and has not paid any dividends in the past.
To finalize the takeover, MBf Holdings has set a target of only
acquiring an additional 5,000 shares by June 5, 2006, the
closing date of the offer.
The stock does not have the shareholder spread required on the
ASX.
Directors advised shareholders that the company's key operations
were in countries facing a higher political risk than Australia.
MBf Carpenters last year had revenues totaling AU$415 million
with after-tax profit falling marginally to AU$6.09 million.
According to the company directors, profits in Papua New Guinea
were disappointing but group operations in Fiji had enjoyed an
"excellent year."
MBf Carpenters' operations in Fiji last year saw revenues rise
by 16% to AU$259 million with pre-tax profit more than doubling
to AU$10.1 million.
The Sydney-listed MBf Carpenters has accumulated losses totaling
AU$8.58 million, down from AU$14.68 million in 2004.
Following the likely delisting of the stock few details of the
group's operating performance are likely to be divulged in
future as these figures have been disclosed in the past through
announcements to the ASX.
About MBf Holdings
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.
PANGLOBAL BERHAD: Regulator OKs Proposed Restructuring Scheme
-------------------------------------------------------------
On April 6, 2006, the Securities Commission approved PanGlobal
Berhad's proposed restructuring scheme.
The approval, however, is subject to several conditions, which
include:
-- PanGlobal and its merchant bank, Avenue Securities,
undertaking of all necessary due diligence in relation to
the Proposed Scheme;
-- Avenue informing all relevant parties including
PanGlobal, the trustee and the holders of the redeemable
convertible secured loan stocks issued by the Company
and redeemable convertible unsecured loan stocks issued
by the Company of the Proposed Scheme and where
applicable to obtain their consents in accordance with
relevant statutory requirements;
-- Avenue submitting a certified true copy of the executed
supplemental trust deed for the RCSLS and RCULS and a hard
copy of the, revised term sheets of the RCSLS and RCULS,
prior to the implementation of the Proposed Scheme;
-- Avenue and PanGlobal obtaining all other regulatory
approvals for the Proposed Restructuring Scheme;
-- Avenue ensuring that the implementation of the Proposed
Scheme is not contrary to the provision in the trust
deed of the RCSLS and RCULS, and relevant statutory
requirements; and
-- Avenue submitting a written confirmation to the SC on
compliance with the "conditions" upon implementation of
the Proposed Scheme.
About PanGlobal Berhad
Headquartered in Kuala Lumpur, Malaysia, Panglobal Berhad
-- http://home.panglobal.com.my/-- is engaged in underwriting
all classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management. PanGlobal is a Practice
Note 4/2001 company. The Bursa Malaysia Securities has required
the Company to regularize its financial condition, curb huge
losses and settle debts in order to continue operating. The
Company has already submitted a Proposed Restructuring Scheme to
the Securities Commission on September 9, 2005. It is now
awaiting required approvals to implement the corporate
rehabilitation program.
PAN MALAYSIA: Repurchases 120,000 Shares for MYR48,537
------------------------------------------------------
On April 17, 2006, Pan Malaysia Corporation Berhad bought back
120,000 ordinary shares of MYR0.50 each for a total cash
consideration of MYR48,537.36.
The minimum price paid for each share purchased was MYR0.395 and
the maximum was MYR0.410.
After the purchase, the cumulative outstanding treasury shares
have reached 57,901,400.
Pan Malaysia Corporation on April 14, 2006, bought back 90,000
ordinary shares of MYR0.50 each for a total cash consideration
of MYR37,416, the Troubled Company Reporter - Asia Pacific
reported.
About Pan Malaysia Corporation
Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia
Corporation Berhad provides management services and the
manufacturing, marketing and distribution of confectionery and
cocoa-based and other food products. The Company also operates
departmental and specialty stores, construction and property
investment and investment holding. The Group operates in
Malaysia, Australia and the rest of Asia-Pacific. Pan Malaysia
has suffered consecutive losses in the past. In the fourth
quarter of the fiscal year ending December 31, 2005, the Company
booked a net loss of MYR6.8 million.
POHMAY HOLDINGS: Court to Decide on RO Application on May 2
-----------------------------------------------------------
Pohmay Holdings Berhad's application for a restraining order was
heard in the Kuala Lumpur High Court on April 18, 2006. Bursa
Malaysia Securities Berhad was added as a respondent and the
hearing proceeded on an inter-parties basis.
The Court said it will hand down it decision of the application
on May 2, 2006.
The Court also gave an ad interim order on the terms of the
application that status quo be maintained until the Application
is disposed of and the order includes the de-listing of Pohmay.
Pohmay applied for a Restraining Order following the Bourse's
decision to delist and remove Pohmay's securities from the
Official List today, April 20, 2006.
According to the Troubled Company reporter - Asia Pacific, Bursa
Securities disclosed on March 10, 2006, its decision to delist
the Company's securities. On March 15, 2006, the Bourse
deferred the delisting after Pohmay submitted its appeal against
the move.
However, after having considered all the facts and circumstances
of the matter, the Bourse has decided to delist Pohmay's
securities as the Company does not have an adequate level of
operations to warrant continued listing.
About Pohmay Holdings Berhad
Headquartered in Kuala Lumpur, Malaysia, Pohmay Holdings Berhad
manufactures furniture. Products include laminated bendwood
furniture and furniture components, wood and metal furniture and
general products made of metal and wood. Its other activities
are cultivation and harvesting of rattan and investment holding.
Pohmay, a Practice Note 17 company, is a defendant of a wind-up
petition filed by AmBank (M) Berhad. The legal action is
expected to have a significant financial and operational impact
on the Company. The Company is negotiating with its lenders to
restructure the Group's loans and is actively working on various
schemes to alleviate the Group from its current financial
predicament.
POLYMATE HOLDINGS: Bumiputra Claims MYR14 Mln Plus Interest
-----------------------------------------------------------
On April 17, 2006, Bumiputra Commerce Bank Berhad serviced an
amended Writ of Summons and Statement of Claim dated March 31,
2006, to Polymate Holdings Berhad and its wholly owned
subsidiary, Polymate Industries (M) Sdn Bhd.
Under the Statement of Claim, Bumiputra is demanding:
-- MYR14,041,907.24 as of December 31, 2005;
-- a MYR5,827,090.59 interest of the basic claim amount, at
Base Lending Rate, which is currently at 6.5% per annum,
plus 2.0% per annum on monthly rests basis from Jan. 1,
2006, until the date of full settlement;
-- additional interest of 1.0% per annum on monthly rests
accrues on the sum of MYR1,329,674.24 being the overdue
principal from January 1, 2006, until the date of full
settlement;
-- interest at the rate of 1.0%, plus Base Lending Rate and
2.0% per annum on monthly rests accrues on the sum of
MYR428,056.24 being the overdue interest from January 1,
2006, until the date of full settlement;
-- interest on the sum MYR1,500,000 at Base Lending Rate,
which is currently at 6.5% per annum, plus 2.0% per annum
daily rests basis from January 1, 2006, until the date
of full settlement;
-- additional interest at BLR, which is currently at 6.5%
per annum, plus 3.5% per annum on the amount of MYR77,405,
which is the amount in excess of the approved limit of
MYR1,500,000 from January 1, 2006, to the date of full
settlement;
-- interest on the outstanding Second Revised MOL Facility
at Base Lending Rate, which is currently at 6.5% per
annum, plus 2.25% from due dates of Bankers' Acceptance
until the date of full repayment; and
-- legal and other relevant costs.
About Polymate Holdings Berhad
Headquartered in Selangor Malaysia, Polymate Holdings Berhad
-- http://www.polymate.com.my/Hprofile_html.htm-- is engaged in
the manufacturing and marketing of lead acid batteries for the
automotive and related industries. It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding and provision of corporate and financial
support services. The Group operates in Malaysia, Australia,
New Zealand and Europe. Polymate Holdings is in the process of
working out possible plans to regularize its condition.
Operations in its ailing subsidiaries will be revived when a
workable restructuring scheme is formalized with its lenders and
when fresh working capital can be injected into the operations.
POLYMATE HOLDINGS: Malayan Banking Withdraws Suit
-------------------------------------------------
Malayan Banking Berhad has decided to discontinue a legal action
against Polymate Holdings Berhand and its wholly owned
subsidiary, Polymate Industries (M) Sdn Bhd.
The Troubled Company Reporter - Asia Pacific recounts that on
March 31, 2006, Polymate Holdings and Polymate Industries were
served with a Writ of Summons and Statement of Claim dated March
14, 2006, by Malayan Banking Berhad. Malayan Banking was
demanding payment of MYR3,311,506.48, due as of December 31,
2005, and penalty at Base Lending Rate of 6.5% per annum, plus
3.5% per annum on the outstanding sum. Malayan Banking was also
demanding payment for solicitors' costs.
Polymate Holdings received the Notice of Discontinuance of the
action on April 17, 2006, from Malayan Banking's solicitor,
Adnan Sundra & Low.
Malayan Banking, however, is entitled to file a fresh suit
against the Company.
About Polymate Holdings Berhad
Headquartered in Selangor Malaysia, Polymate Holdings Berhad
-- http://www.polymate.com.my/-- is engaged in the
manufacturing and marketing of lead acid batteries for the
automotive and related industries. It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding and provision of corporate and financial
support services. The Group operates in Malaysia, Australia,
New Zealand and Europe. Polymate Holdings is in the process of
working out possible plans to regularize its condition.
Operations in its ailing subsidiaries will be revived when a
workable restructuring scheme is formalized with its lenders and
when fresh working capital can be injected into the operations.
POLYMATE HOLDINGS: Citibank Demands Payment of Unsettled Loan
-------------------------------------------------------------
Citibank Berhad is demanding payment of unsettled loans by
Polymate Holdings Berhad and its wholly owned subsidiary, ABI
Malaysia Sdn Bhd.
Under the Writ of Summons and Statement of Claim served on
March 22, 2006, Citibank is claiming:
-- an outstanding sum of MYR15,869,523.24 as of November 30,
2005;
-- interest accrued on the outstanding sum from December 1,
2005, at an annual interest of 6.4%; and
-- solicitors' costs.
About Polymate Holdings Berhad
Headquartered in Selangor Malaysia, Polymate Holdings Berhad
-- http://www.polymate.com.my/-- is engaged in the
manufacturing and marketing of lead acid batteries for the
automotive and related industries. It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding and provision of corporate and financial
support services. The Group operates in Malaysia, Australia,
New Zealand and Europe. Polymate Holdings is in the process of
working out possible plans to regularize its condition.
Operations in its ailing subsidiaries will be revived when a
workable restructuring scheme is formalized with its lenders and
when fresh working capital can be injected into the operations.
TRU-TECH HOLDINGS: Fails to Address Default Issue
-------------------------------------------------
Due to tight cash flow, Tru-Tech Holdings will not be able to
make the monthly deposit of MYR1,500,000 due on April 17, 2006,
into the sinking fund account maintained for the purposes of
redemption of its MYR55,000,000 Redeemable Unsecured Loan Stock.
Tru-Tech says that there has been no material development in the
Company's default status pursuant to Practice Note 1/2001 of the
Bursa Malaysia Securities Berhad.
The principal outstanding of all other credit facilities granted
to Tru-Tech and its subsidiaries as of March 31, 2006 are set
out in:
http://bankrupt.com/misc/tcrap_trutechholdings041906.xls
Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings
Berhad's principal activity is the manufacturing of electronic
components and products. Its other activities include
development and distribution of switch-mode power supplies and
investment holding. The Group operates in Malaysia, Singapore,
United States and United Kingdom. On May 27, 2004, Tru-Tech
announced a series of proposed corporate exercises to address
poor financial performance. These include the incorporation of
a new entity as Tru-Tech's holding company, and the disposal of
its existing contract-assembly business to a third party. Much
of Tru-Tech's future performance will hinge on its ability to
restructure its debts and resolve its financial woes.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: May Buy More Aircraft to Cover More Routes
---------------------------------------------------------------
Philippine Airlines is negotiating with French airplane maker
Airbus S.A.S. for the possible purchase of additional A330 and
A340 aircraft to expand its routes, Manila Standard Today
reports.
Last year, the Company ordered nine Airbus A320 aircraft and put
an option to purchase five additional aircraft for PHP43.08
billion, as part of its ongoing re-fleeting plan. PAL also
plans to charter two A320 and two A319 planes from GE Capital
Aviation Services.
The Standard says that Philippine Airlines is in talks with
export credit firms from England, France, and Germany to come up
with the finances for its re-fleeting program.
About Philippine Airlines
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. As of 2005, it claims
to serve 21 domestic airports and 31 foreign cities. Its main
hub is the Ninoy Aquino International Airport in the capital
city of Manila.
Following labor problems and its failure to settle debts, PAL
filed for rehabilitation in June 1998, and is slated to complete
its 10-year debt rehabilitation program in 2009.
A March 21, 2006 report by the Troubled Company Reporter - Asia
Pacific says that the airline company will continue a
government-led rehabilitation program even as creditors neither
approved nor rejected the program to leave the protection of the
Securities and Exchange Commission.
As of 2005, Philippine Airlines has paid PHP50.88 billion of its
total PHP111.94 billion debt. PAL president Jaime J. Bautista
said that they expect to post a profit for the year ended March
31, 2006.
SAN MIGUEL CORP.: Moody's Assigns Ba1 Senior Unsecured Rating
-------------------------------------------------------------
On April 19, 2006, Moody's Investors Service put a (P)Ba3
foreign currency rating on the proposed preferred stock issuance
of San Miguel Corporation subsidiary San Miguel Capital Funding
Limited.
Moody's also placed a Ba1 local currency corporate family and
indicative foreign currency senior unsecured rating to San
Miguel Corporation; the first-time rating is stable. Moody's
has not assigned this rating to any specific debt issuance.
Moody's expects to affirm the provisional preferred stock rating
and remove it from its provisional status upon satisfactory
review of final documentation and completion of the issuance.
According to Moody's senior credit officer Charles Macgregor,
the rating reflects the size, diversity, and profitability of
the Company's operations, which encompass alcoholic beverages
and soft drinks, food and packaging activities in the
Philippines, as well as food and beverage operations in
Australia. Due to its strong brand equity and a strong position
in markets, San Miguel has a healthy platform to generate cash
flow.
Moody's regards the proposed preferred stock instrument as
having part debt and part equity-like features, and has
provisionally -- subject to satisfactory review of final
documentation -- accorded it basket "C" treatment, i.e. 50% debt
and 50% equity, for its financial statement analysis purposes.
The basket C allocation is based on the following rankings for
the three dimensions of equity:
(i) No Maturity: Moderate -- The instrument is perpetual and
has no stated maturity. However, SMCF has the option to
redeem the stock after five years. SMCF will upstream
the funds to SMC via a 30-year subordinated note that
automatically rolls at maturity. There is replacement
language covering redemption of the preferred shares,
and whereby it is the Company's intention to redeem the
Preferred Shares only with proceeds from the issuance of
securities, during the six-month period before the date
of redemption, which have equal or greater equity
characteristics.
(ii) No Ongoing Payments: Moderate -- The issuer has the
option to defer the payment of a distribution on a non-
cumulative basis. Should the coupon on the preferred
instrument not be paid, then the subordinated note
interest -- paid by San Miguel to San Miguel Capital
Funding -- will be repatriated to SMC through a common
dividend.
(iii) Loss Absorption: Strong -- In the event of the Company's
insolvency, San Miguel Capital Funding Limited will be
dissolved. In effect, the preferred holders claim over
San Miguel Corporation's liquidation have priority over
common shareholders, but rank junior to the claims on
all the Company's senior and subordinated debt.
The indicative foreign currency senior unsecured and preferred
stock rating incorporates all the above and the convertibility
risk, which is the likelihood of the government declaring a debt
moratorium to counter a foreign currency crisis. As such, SMC's
indicative foreign currency debt rating is a function of its own
risk of default, the probability of a Philippine government
default on its foreign currency debt, the likelihood that the
government would declare a moratorium in the event of a default
and, if it did, the chances that it would exempt these
securities from such a moratorium because SMC has a meaningful
asset base domiciled in Australia -- foreign currency rating of
Aaa. Should the company default on foreign currency bonds sold
under foreign law, a court of law could issue orders of
attachment against the Australian assets, reducing the
probability that these securities would be captured in a
moratorium.
The ratings may increase with San Miguel's continued growth
outside the Philippines and improved margins in its beverages
and food businesses; however, they may go down if unexpected
costs due to expansion or additional acquisitions cause delays
in reducing leverage for the Company.
San Miguel Corporation -- http://www.sanmiguel.com.ph/-- is
Southeast Asia's largest publicly listed food, beverage, and
packaging company. Founded in 1890 as a brewery, the company
has over 100 facilities in the Philippines, Southeast Asia,
China, and Australia.
=================
S I N G A P O R E
=================
CHINA AVIATION: KPMG Likely to Take Ernst & Young's Place
---------------------------------------------------------
China Aviation Oil (Singapore) Corporation Limited might hire
KPMG to replace Ernst & Young as the Company's Auditors.
Wu Xueqin, a shareholder of China Aviation Oil, on April 17,
2006, presented a Notice of Nomination, nominating KPMG as
auditors of the Company in place of Ernst & Young at the
forthcoming 12th Annual General Meeting on April 28, 2006.
Ernst & Young have also stated that they are not seeking re-
appointment as auditors of the Company at the forthcoming Annual
General Meeting.
About China Aviation
Incorporated in 1983, China Aviation Oil (Singapore) Corp.
Limited -- http://www.caosco.com/-- deals primarily in jet fuel
procurement, although it is also active in international oil
trading and oil-related investment. The firm commands a near-
100% market share of the procurement of imported jet fuel for
China's civil aviation industry, and has expanded its market to
include ASEAN countries, the Far East and the United States.
Singapore's Commercial Affairs Department investigated China
Aviation in December 2004 after it was discovered that the
Company had lost up to SGD896.07 million in fuel derivatives
trading, which was not immediately reported to the Singapore
Exchange. China Aviation avoided bankruptcy when creditors
agreed to write down some of its debt in June 2005, and BP Plc,
Europe's biggest oil company, agreed to take a stake in the
company.
In February 2006, Chief Financial Officer Peter Lim was
sentenced to two years imprisonment and fined SGD150,000 for his
involvement in cheating and releasing false financial statement.
A Singapore court also fined three other China Aviation
executives for concealing losses at the group, which is subject
to a $130 million restructuring plan. On March 21, 2006, the
former chief executive officer of China Aviation, Chen Jiulin,
was sentenced to more than four years in jail and made to pay
SGD350,000 in fines.
Shareholders of the Company have subsequently approved a new
restructuring plan for China Aviation. According to a TCR-AP
report on March 7, 2006, the approved restructuring plan allows
creditors an option to have an upfront cash payment of 45 cents
on every dollar owed, or a higher repayment rate of 58 cents a
dollar spread over five years.
The Company completed its Restructuring Plan on March 28, 2006.
CITIRAYA INDUSTRIES: Creditors Back New Investment Plan
-------------------------------------------------------
Citiraya Industries' proposal to allow new investors to buy more
than 75% stake in the Company has won the support of its
creditors, Channel News Asia reports.
Under the plan, Heshe Holdings and Chip Lian Investments will
pay SG$16.1 million in cash for a 75% stake in Citiraya.
Ernst & Young, the judicial manager appointed to oversee the
latest rescue plan, told Channel NewsAsia that Citiraya would be
sold to Heshe and Chip Lian without certain assets.
These assets are mainly inventory and will be sold to benefit
creditors, who stand to get SG$29.7 million instead of the SG$20
million prescribed under a previous proposal.
Channel News Asia says that creditors gave their support on the
plan since their in-principle approval will enable troubled
Citiraya to proceed with its corporate restructuring.
The plan is still subject to final approval from all of the
Company's creditors and shareholders.
About Citiraya Industries
Headquartered in Tech Park Crescent, Singapore, Citiraya
Industries -- http://www.citiraya.com/-- is in the business of
providing a one-stop recycling and processing service for the
electronics industry. It has also commenced the provision of
treatment processing services for toxic chemical waste, which
contain precious metals. Citiraya was placed under judicial
management in November 25, 2005. Since then, the Company has
been plagued with problems including a bribery scandal, which
sent former employees to jail. Citiraya Industries has also
received claims from suppliers Infineon Technologies (Malaysia)
Sdn Bhd and Infineon Technologies Asia Pacific Pte Ltd for
alleged wrongful dealings with quantities of non-compliant
integrated circuits. Last month, four more Ctiraya workers were
charged by the Commercial Affairs Department in Singapore's
Subordinate Court for allowing their securities accounts to
trade Citiraya Industries Limited shares to benefit former chief
executive Ng Teck Lee. About 15 people have been charged over
the Citiraya allegations, and nine of them have been sentenced
to jail. These individuals allegedly received million in bribes
from ex-chief Ng Teck. In return, they helped the Company
clinch multinational contracts, divert electronic chips meant
for destruction to overseas resale markets, and falsely declared
the content of precious metal extracted from electronic waste.
Citiraya's creditors stand to get SG$29.7 million from the
Company through a sale of assets.
EASYCALL INTERNATIONAL: Warns of Another Full-year Loss
-------------------------------------------------------
In anticipation of a financial results announcement in May 2006
for EasyCall International Limited and its subsidiaries for the
full year ended March 31, 2006, the Group deems it appropriate
to issue a profit warning.
The Group expects to report a loss for the period due mainly to
the impact of the liquidation of its subsidiary, Computer Power
Group Pty Ltd. Net provisions and write-offs attributable to
CPG are expected to be in the region of AU$8 million,
comprising:
-- AU$7.3 million in loans advance to CPG;
-- AU$0.4 million in indemnity provided by the Company in
connection with bank guarantees given to various
landlords of premises occupied by CPG; and
-- AU$0.5 million of capitalized legal and professional
fees in connection with the litigation with the vendors
of CPG;
after deducting AU$0.2 million net recovery of acquisition costs
to date from the vendors of CPG -- Spherion Limited and its
American company.
EasyCall, under the direction of the Federal Court of New South
Wales, is currently mediating with the vendors of CPG to recover
additional amounts.
The Company, since its announcement in May 2004 of its
acquisition of CPG, had made several subsequent announcements
related to CPG such as:
-- having instituted legal proceedings against the vendors
of CPG for misrepresentation;
-- the decision on January 1, 2006, to cease financial
support to CPG;
-- the decision of the directors of CPG on January 1, 2006,
to place the company under administration;
-- the decision of CPG's creditors on January 30, 2006, to
liquidate the company; and
-- the sale by the liquidators to The Didasko Group Pty Ltd
of the assets of CPG including the shares held in
Computer Power NZ Limited.
Notwithstanding the closure of the education business of CPG and
the write-offs arising therefrom, EasyCall stressed that this
does not affect the education business in Tianjin.
Further details of the Group's performance and strategies for
growth will be disclosed when the Company announces its
financial results for the year ended March 31, 2006.
About EasyCall International Limited
Headquartered in Singapore, EasyCall International Limited
-- http://www.easycall.com.sg/-- is a higher-learning education
group that is listed on the Australian Stock Exchange and
Singapore Exchange. EasyCall is dedicated to the advancement,
establishment and provision of internationally recognized
higher-level education services and skills training programs.
EasyCall owns and operates the Tianjin University of Commerce
Boustead College.
The EasyCall Group was incorporated in Bermuda as Voicecall
Limited on February 27, 1985. It commenced its operations in
Australia and engaged in the provision of a radio broadcast
network for the transmission of data and messages. Voicecall
Communications and the Group's other Australian operations were
eventually sold off to Bell South Australia in September 1988.
With an increasingly large presence outside of Australia, the
Group decided to shift its corporate headquarters to Singapore
in 1995. In addition, the headquarters was registered as
EasyCall International Limited in order to capitalize on the
strong brand equity established by the EasyCall trade name for
paging operations in Asia. In September 1999, the Group reached
a major landmark when it was listed on the Australian Stock
Exchange.
By early 2000, it was apparent that the client base for call
center and paging services in Asia was on the decline. Since
then the Group's results was in and out of the red. Given the
decreasing demand for its services, the Group began a
reorganization effort to simplify its structure, chart a new
strategic direction and facilitate its secondary listing on the
Singapore Exchange. In April 2001, the decision was made to
transform the Group's core business by discontinuing business
activities that were previously successful but irrelevant in the
current business climate. The Singapore IDC of the Group was
wound up in August 2001 as part of a restructuring exercise to
reduce operating losses in the Group. Its Philippine arm
undertook a capital restructuring in 2003 to address its capital
deficiency. In January 2006, EasyCall withdrew its financial
support for its wholly owned subsidiary, Computer Power Group
Ltd, and appointed Ferrier Hodgson as administrator after
discovering that CPG's chance of turning around is bleak.
EasyCall expects its results to again plunge into the red with
the negative impact of Computer Power's liquidation.
TRITECH MICROELECTRONICS: Distributes Fourth and Final Dividend
---------------------------------------------------------------
Tritech Microelectronics Limited, as company under compulsory
liquidation, distributed its fourth and final dividend of 1.0406
cents per centum on April 17, 2006, pursuant to the High Court
of Singapore's order.
As reported by the Troubled Company Reporter - Asia Pacific on
February 21, 2006, Tritech Microelectronics Limited had
requested its creditors to submit their formal proofs of claim
to Liquidator Tam Chee Chong by March 3, 2006, or risk being
excluded from sharing the dividend.
Contact: Tam Chee Chong
Liquidator
c/o Deloitte & Touche
6 Shenton Way
#32-00 DBS Building Tower 2
Singapore 068809
===============
T H A I L A N D
===============
THAI DURABLE: SET Lists Securities After Capital Increase
---------------------------------------------------------
The Stock Exchange of Thailand allowed the securities of Thai
Durable Group Public Company Limited to be listed effective
March 17, 2006, after the Company finished capital increase
procedures.
However, the SET clarifies that as Thai Durable is a listed
company under the REHABCO Sector and is in the rehabilitation
process, trading of all Thai Durable securities is still
suspended until all causes of delisting are eliminated.
Details of Thai Durable's capital are:
Paid up Capital
Old : THB3,293,370,500
New : THB3,753,095,500
Par Value : THB7.10/share
Allocate to : Private Placement 64,750,000 common
shares, one investor (totaling 130
million shares, including the first
allotment to this investor)
Price Per Share : THB0.89
Payment date : January 27, 2006, and February 8,
2006
* * *
The Thai Durable Group Public Company Limited --
http://www.tdt.co.th/-- manufactures woven fabrics and yarns
from natural and synthetic fibers. The majority of its
production is sold to industrial factories for further
processing.
The Company is under the REHABCO, or Companies under
rehabilitation sector, of Thailand's Stock Exchange.
The Troubled Company Reporter - Asia Pacific stated on April 12,
2006, that the Company's Board of Directors passed a resolution
not to allocate net profit as legal reserve in the amount of 5%
of the net profit of the Company and not pay the dividend from
its 2005 operating income.
Going Concern of the Company
The Company had sustained significant accumulated losses and has
suffered recurring loss from operations. As at December 31,
2005, Thai Durable has an equity deficit amounting to THB2.0
billion. The Company incurred negative cash flows from
operating activities for the year ended December 31, 2005,
amounting to THB73.3 million. The Company's current liabilities
exceeded its current assets as of December 31, 2005, by THB644.4
million. Moreover, the Company could not repay short-term loans
and long-term loans from two local banks which were due and on
January 27, 2006, the Company was sued by a local bank to repay
all short-term loans and long-term loans totaling THB273.8
million, including principal and accrued interest. In addition,
the management is in the process of negotiating for the
postponement of loans from another local bank. The ultimate
outcome of these matters cannot be determined yet. Presently,
the Company is performing a feasibility study to change its
current business.
The continuing operation of the Company in the future
substantially depends on (i) results of the negotiation with the
financial institution creditors relating to the postponement of
loans, and (ii) the new business plan of the Company and its
ability to operate successfully in the future and has adequate
cash flows from operations. These matters indicate the
existence of a material uncertainty about the Company's ability
to continue its operation as a going concern.
THAI DURABLE: Directors Approve Increase and Decrease of Capital
----------------------------------------------------------------
At a meeting on April 4, 2006, Thai Durable Group Public Company
Limited's Board of Directors unanimously approved:
1. the proposal to the Shareholders Meeting to consider and
approve the cancellation of issuance and offer for sale of
warrants approved by the Extraordinary Shareholders
Meeting held on September 29, 2003;
2. the proposal to the Shareholders Meeting to consider and
approve the decrease of the Company's capital by canceling
165,007,000 unsold ordinary shares of the Company at the
par value of THB7.10 per share, totaling THB1,171,549,700
and the amendment of Clause 4 of the Memorandum of
Association to ensure consistency with the decrease of
capital;
3. the proposal to the Shareholders Meeting to consider and
approve the decrease of the registered and paid-up capital
of the Company from the existing registered and paid-up
capital to THB3,753,095,500, divided into 528,605,000
ordinary shares, with the par value of THB7.10 per share.
For this purpose, the value of the Company's share will be
reduced from the existing par value of THB7.10 to THB1.00
per share and the capital reduction of THB3,224,490,500
will be cleared against the discounted value of the
ordinary shares offered for sale with discount and
discount of book value and to compensate the accumulated
loss of the Company, in accordance with the amendment of
Clause 4 of the Memorandum of Association to ensure
consistency with the decrease of the Company's capital;
4. the proposal to consider and ratify the Sale of machines
for the payment of the Company's debt due to the urgency
to preserve its rights and privileges;
5. the proposal to consider and approve the issuance and
offering of the convertible debentures in name certificate
with the right to convert into ordinary shares of the
Company within the limit not more than THB700,000,000.
All convertible debentures would be offered to domestic
and international institutional investors or specific
investors who are not the connected persons and under the
relevant Notifications of the Securities and Exchange
Commission;
6. the proposal to consider and approve the increase of the
Company's capital by THB805,721,000, from THB528,605,000
to THB1,334,326,000; and
7. the proposal to consider and approve the allocation of
105,721,000 new shares to the existing shareholders who
are named in the share registered as at May 2, 2006,
pursuant to the shareholding ratio of each shareholder at
the rate of 5 existing shares to 1; and 700,000,000 new
shares to accommodate the conversion of the convertible
debentures of the Company.
The 2006 Annual Ordinary Shareholders Meeting will be held on
April 28, 2006, at 9.00 a.m., at Tarnthong I Room, 1st Floor of
The Montien Riverside Hotel, No. 372 Rama III Road, Bangklo
Subdistrict, in Bangcholeam District, Bangkok.
* * *
The Thai Durable Group Public Company Limited --
http://www.tdt.co.th/-- manufactures woven fabrics and yarns
from natural and synthetic fibers. The majority of its
production is sold to industrial factories for further
processing.
The Company is under the REHABCO, or Companies under
rehabilitation sector, of Thailand's Stock Exchange.
The Troubled Company Reporter - Asia Pacific stated on April 12,
2006, that the Company's Board of Directors passed a resolution
not to allocate net profit as legal reserve in the amount of 5%
of the net profit of the Company and not pay the dividend from
its 2005 operating income.
Going Concern of the Company
The Company had sustained significant accumulated losses and has
suffered recurring loss from operations. As at December 31,
2005, Thai Durable has an equity deficit amounting to THB2.0
billion. The Company incurred negative cash flows from
operating activities for the year ended December 31, 2005,
amounting to THB73.3 million. The Company's current liabilities
exceeded its current assets as of December 31, 2005, by THB644.4
million. Moreover, the Company could not repay short-term loans
and long-term loans from two local banks which were due and on
January 27, 2006, the Company was sued by a local bank to repay
all short-term loans and long-term loans totaling THB273.8
million, including principal and accrued interest. In addition,
the management is in the process of negotiating for the
postponement of loans from another local bank. The ultimate
outcome of these matters cannot be determined yet. Presently,
the Company is performing a feasibility study to change its
current business.
The continuing operation of the Company in the future
substantially depends on (i) results of the negotiation with the
financial institution creditors relating to the postponement of
loans, and (ii) the new business plan of the Company and its
ability to operate successfully in the future and has adequate
cash flows from operations. These matters indicate the
existence of a material uncertainty about the Company's ability
to continue its operation as a going concern.
TMB BANK: Moody's Gives Hybrid Tier-1 Securities (P)Ba2 Rating
--------------------------------------------------------------
Moody's has assigned a provisional rating of (P)Ba2 to TMB Bank
Public Company Limited's (TMB, E+ on Review for Possible
Upgrade/Baa2/P-2) proposed perpetual securities via a Cayman
Islands branch. The rating outlook is stable. The proposed
securities will be issued under the new guidelines of Bank of
Thailand governing Hybrid-Tier 1 securities.
The provisional rating of the Hybrid Tier-1 issue is subject to
the receipt of final documentation with terms and conditions
which show no material change from those already reviewed by
Moody's.
The (P)Ba2 rating reflects the structure of the issue, TMB's
moderate financial fundamentals and Thailand's supportive
regulatory regime.
Under the terms of the securities, the issuer can call the
securities after 10 years. Typical of many Tier I capital-
qualifying hybrid security issues, interest on TMB's Hybrid Tier
1 securities is non-cumulative and under certain circumstances
may be deferred at the issuer's option. If implemented, such
provisions, while not legally constituting an event of default,
could result in payment terms appreciably different from senior
securities. This distinction has been reflected in the three
notch rating differential between the institution's senior
obligations and this subordinated debt issue.
The instrument will, in Moody's view, have sufficient equity-
like features to allow it to receive basket "B" treatment, i.e.
25% equity and 75% debt, for financial leverage purposes.
Headquartered in Bangkok, Thailand, TMB Bank had total assets of
about THB717 billion as at December 31, 2005. The Thai
military's aggregate stake in TMB has declined significantly
since the Asian financial crisis of 1997 and currently stands at
about 5%. The Thai Ministry of Finance is the largest
shareholder with 31.2%. Singapore's DBS Bank holds 16.1%.
*********
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