/raid1/www/Hosts/bankrupt/TCRAP_Public/060426.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
Wednesday, April 26, 2006, Vol. 9, No. 082
Headlines
A U S T R A L I A & N E W Z E A L A N D
A.C.N. 088 262 168: Decides to Close Operations
A.C.N. 101 981 140: To Hold Final Meeting Today
AWB LIMITED: Prime Minister Howard Faces Contempt Charge Threat
AWB LIMITED: Key Witness' Appearance At Cole Inquiry Delayed
BS & L PTY: Prepares to Pay Dividend
CANBERRA NEUROLOGICAL: Winds Up Business
CHINATOWEN ENTERTAINMENT: Supreme Court Orders Wind-up
DAVID STEPHEN: Members Resolve to Wind up Firm
ELEVENTH LANDING: Receiver and Manager Steps Aside
GARAQUIP SALES: Creditors to Review Liquidators' Report
GREENWAY HOLDINGS: Appoints Official Receivers
HI-LITE SECURITY: Distributes Final Dividend Today
KOALA PAINTING: Members and Creditors to Meet Liquidator Today
MOTORACN 005 188 054: Set to Declare Dividend Today
NEAUVEMBER PTY: Members Agree to Liquidate Business
PENONG INVESTMENTS: Inability to Pay Debts Leads to Wind-up
PINNACLE SHEETMETAL: Members Agree to Cease Operations
SOUVAS PTY: Court Orders Winding Up
STARK-HOLDINGS PTY: Placed Under Voluntary Liquidation
TONITA REALTY: Shuts Down Business Operations
WORLD POWER & LIGHTING: Schedules Final Meeting Today
C H I N A & H O N G K O N G
ABSA BANK: Creditors' Proof of Debts Due on May 19
BRILLIANCE CHINA: To Construct Production Plants in Guangdong
EFORCE HOLDINGS: 2005 Net Loss Widens to HK$27 Mln
GRADUATE CENTRE: Creditors Must Prove Debts by May 30
GUANGDONG KELON: Hisense to Take 26.43% Stake for CNY680 Mln
HAIER ELECTRONICS: Sells Handset Operations to Parent
HOI SING: Winds Up Business
KEGO TECHNOLOGY: Annual Creditors Meeting Set on May 9
KEPO TIME: Liquidator to Present Wind-up Report on May 9
KENSLAND REALTY: Members and Creditors Meeting Fixed on March 24
NEW PACIFIC: Prepares to Declare Dividend
PANVA GAS: Moody's Reviews Ba1 Ratings for Possible Downgrade
PANVA GAS: S&P Places Rating on CreditWatch Negative
SHARP SUCCESS: Creditors' Proofs of Debts Due on May 8
SUN GROWTH: SFC Reprimands Firm
WIN VICTORY: Company Director Admits HK$49-Mln Fraud
I N D I A
COAL INDIA: 166,000 Tons of Coal Exported in 2004-05
INDIA CEMENTS: Stock Jumps on Sale Rumors
SILVERLINE TECHNOLOGIES: Members Welcome Restructuring Plan
I N D O N E S I A
PERTAMINA: To Sell Biodiesel Fuel in May
PERTAMINA: Seeking Arab Investors For Several Projects
PERUSAHAAN LISTRIK: 2005 Net Loss Widens by 144%
PUTRA SUMBER: Pefindo Affirms idBB+ Rating
J A P A N
LIVEDOOR COMPANY: To Sell Unit's Shares for JPY300 Million
MITSUBISHI MOTORS: Ends Joint Venture with German Auto Firm
NEC ELECTRONICS: Reports JPY98-Billion Loss on Asset Write-off
VODAFONE K.K.: Softbank Completes Acquisition Bid
K O R E A
HYUNDAI MOTOR: Suspends Major Business Plans Pending Legal Cases
HYUNDAI MOTOR: Group to Pay Cash to Suppliers
M A L A Y S I A
APEX EQUITY: Buys Back 27,000 Shares for MYR 27,000
COMSA FARMS: Averts Bourse Delisting
GULA PERAK: Unable to Meet MYR34.7-Mln Sinking Fund Obligation
LANKHORST BERHAD: Falls Under PN 17 Category
MALAYSIA AIRLINES: Urged to Train More Pilots
OMEGA HOLDINGS: White Knights Withdraw Restructuring Support
PAN MALAYSIA: Pays MYR56,435 for 140,000 Shares
TELEKOM MALAYSIA: MCAT Appeals Against Court's Decision
TELEKOM MALAYSIA: Singapore's DBS Tapped to Arrange Spice Loan
WEMBLEY INDUSTRIES: SC Extends Time to Finalize Joint Venture
P H I L I P P I N E S
EXPORT AND INDUSTRY BANK: SEC OKs Capital Increase
LIGHT RAIL: IFC OKS Loan to Expand LRT 1
PHILIPPINE NATIONAL BANK: Secures Approval for Debt Issue
SAN MIGUEL: S&P Affirms BB Foreign Currency Rating
S I N G A P O R E
CONTINENTAL CHEMICAL: Moody's Downgrades Outlook on B1 Rating
CREATIVE RENO: Abwin Initiates Bankruptcy Action
LINDETEVES-JACOBERG: Updates Mandatory Cash Offer
RUDIANA CATERING: Faces Bankruptcy Proceedings
SAPPHIRE CORPORATION: Details Debt Conversion Exercise
SINPON PTE: Set to Pay Creditors' Dividend Today
SPEEDHELM PTE: Intends to Pay Dividend on April 28
T H A I L A N D
NATION MULTIMEDIA: Will Reduce Operating Cost to Stop Net Loss
NEW PLUS KNITTING: Securities Excluded from Index Calculation
THAI AIRWAYS: High Fuel Prices Increase Fuel Surcharge
- - - - - - - -
============================================
A U S T R A L I A & N E W Z E A L A N D
============================================
A.C.N. 088 262 168: Decides to Close Operations
-----------------------------------------------
Members of A.C.N. 088 262 168 Pty Limited held a meeting on March 10, 2006,
and agreed to wind up the Company's business.
Richard Herbert Judson was consequently appointed as liquidator to oversee
the wind-up operations.
Contact: Richard H. Judson
Liquidator
Members Voluntarys Pty Limited
P.O. Box 819, Moorabbin
Victoria 3189, Australia
A.C.N. 101 981 140: To Hold Final Meeting Today
-----------------------------------------------
A final meeting of A.C.N. 101 981 140 Pty Limited will be conducted today,
April 26, 2006.
At the meeting, Liquidator D. J. F. Lombe will present a final account
regarding the Company's wind-up operations.
Contact: D. J. F. Lombe
Liquidator
Deloitte Touce Tohmatsu
Level 3, 225 George Street
Sydney, New South Wales 2000
Australia
AWB LIMITED: Prime Minister Howard Faces Contempt Charge Threat
---------------------------------------------------------------
Prime Minister John Howard is likely to face contempt charges over his
"pre-judgment" of the outcome of the Iraqi kickbacks inquiry involving AWB
Limited, The Australian reports. Minister Howard had said that the wheat
exporter misled the United Nations and the Government, implying that AWB
could be guilty of corruption.
The Australian relates that lawyers for AWB executives are expected to
assert that Prime Minister Howard's comments at a news conference, which he
held right after appearing before the Cole Inquiry and answering questions
on April 13, 2006, were in contempt of the Inquiry. Barristers believe that
the Prime Minister used the news conference to defend his Government's
conduct in the affair, saying that he was confident that senior ministers --
including Deputy Prime Minister Mark Vaile and Foreign Minister Alexander
Downer -- and their departments would be exonerated.
The Troubled Company Reporter - Asia Pacific reported in March 2006 that the
Cole Commission had found out that cables were sent to the ministers several
years ago warning them that every contract under the UN's oil-for-food
program contained bribes. Yet, despite the warning, the Prime Minister and
the Department of Foreign Affairs and Trade did not carry out any rigorous
review. The TCR-AP then reported on April 3, 2006, that the Cole Inquiry
had directed Ministers Downer and Vaile to provide evidence and written
statements of their knowledge regarding the AU$300 million kickback payments
made by AWB to Iraq. Ministers Howard, Downer and Vaile all denied any
prior knowledge of AWB's involvement in the scandal.
The Age explains that, in accordance with federal legislation, any person
who "intentionally insults or disturbs" a royal commission is open to
criminal charge and could be fined or even imprisoned by the commissioner.
Although not officially a royal commission, experts say that the Cole
Commission comes under the act.
However, according to The Age, constitutional law experts suggested it was
unlikely that Minister Howard had breached contempt laws, suggesting that
his comments were ill-advised and against convention but would not be seen
as illegal.
The Australian says that lawyers could call on Commissioner Terence Cole to
refer the matter to Attorney-General Philip Ruddock.
The maximum penalty for contempt under the Royal Commissions Act is a fine
of AU$200 or three months in jail.
The Cole Inquiry will resume public hearings on Thursday,
April 27, 2006.
About AWB
AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness
and one of the world's largest wheat marketing companies. It is also one of
Australia's top 100 publicly listed companies. The Company is the exclusive
manager and marketer of all Australian bulk wheat exports through what is
known as the Single Desk. The Company markets wheat, and a range of other
grains, into more than 50 countries, with Australian wheat exports worth up
to $5 billion per year. AWB's footprint includes more than 430 outlets
through its subsidiary landmark and has offices across the world. The
company employs more than 2,700 staff reaching over 100,000 customers. AWB
is also one of the nation's largest suppliers of rural merchandise,
distributors of fertilizer, marketers of livestock, brokers of rural real
estate and handlers of wool.
Previously a low profile organization, AWB made headlines in late 2005 when
it was accused of knowingly paying AU$290 million in kickbacks to the
Government of Iraq, under Saddam Hussein's administration, through the
United Nation's oil-for-food program. A UN report then found out that AWB
paid the kickbacks to a Jordanian trucking company linked to Hussein's
deposed regime. The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the Company's role
in and the Government's alleged "knowledge" of the scandal. The "Cole
Inquiry" is currently underway. The scandal is anticipated to create great
political repercussions to the Australian Government, given the country's
contribution to military action against President Hussein in the 2003
invasion of Iraq.
AWB LIMITED: Key Witness' Appearance At Cole Inquiry Delayed
------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
April 19, 2006, that one key witness is expected to appear before the Cole
Inquiry Commission, which is examining AWB Limited's role in the Iraqi
Kickback Scandal. Senior counsel assisting John Agius informed Commissioner
Terence Cole that he would require former United Nations chief Felicity
Johnston to sit for several days to give evidence on the AWB kickback issue.
In an update, the WA Business News relates that Ms. Johnston, who alerted
Australian officials to the AU$300 million kickback payments made by AWB to
Iraq through the UN's oil-for-food program, has been delayed by the British
Government from appearing before the Cole Inquiry. Mr. Johnston is expected
to fly to Sydney from her London base this month.
According to The Age, the British Government has so far failed to answer a
request by the Cole Inquiry's legal team for her to appear as a witness.
Ms. Johnston currently works for the British Customs Service and needs
permission from the Foreign Office before she can do so.
The Business News recounts that the Cole Inquiry's lawyers want to question
Ms. Johnston about how she alerted the Australian Government six years ago
about claims that AWB was paying kickbacks to then Iraqi dictator Saddam
Hussein's regime. At the time, Ms. Johnston was on secondment from the
British Government to the UN's headquarters in New York, where companies
such as AWB had their contracts to export goods to Iraq under the
oil-for-food program processed.
The UN's secretary-general, Kofi Annan, already gave Ms. Johnston permission
to provide a sworn statement and oral evidence to the Cole inquiry.
The inquiry will resume on Thursday, April 27, wherein AWB executives Darryl
Borlase, Nigel Officer and Mark Emons are due to return and be
cross-examined.
About AWB
AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness
and one of the world's largest wheat marketing companies. It is also one of
Australia's top 100 publicly listed companies. The Company is the exclusive
manager and marketer of all Australian bulk wheat exports through what is
known as the Single Desk. The Company markets wheat, and a range of other
grains, into more than 50 countries, with Australian wheat exports worth up
to $5 billion per year. AWB's footprint includes more than 430 outlets
through its subsidiary landmark and has offices across the world. The
company employs more than 2,700 staff reaching over 100,000 customers. AWB
is also one of the nation's largest suppliers of rural merchandise,
distributors of fertilizer, marketers of livestock, brokers of rural real
estate and handlers of wool.
Previously a low profile organization, AWB made headlines in late 2005 when
it was accused of knowingly paying AU$290 million in kickbacks to the
Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food program. A UN
report then found out that AWB paid the kickbacks to a Jordanian trucking
company linked to Hussein's deposed regime. The Australian Government then
appointed a commission, headed by retired judge Terence Cole, to investigate
into the Company's role in and the Government's alleged "knowledge" of the
scandal. The "Cole Inquiry" is currently underway. The scandal is
anticipated to create great political repercussions to the Australian
Government, given the country's contribution to military action against
President Hussein in the 2003 invasion of Iraq.
BS & L PTY: Prepares to Pay Dividend
------------------------------------
BS & L Pty Limited will declare a first and final dividend today, April 26,
2006.
Creditors who were not able to prove their claims are excluded from sharing
in the dividend distribution.
Contact: G. M. Rambaldi
Liquidator
Pitcher Partners
Level 19, 15 William Street
Melbourne, Victoria 3000
Australia
CANBERRA NEUROLOGICAL: Winds Up Business
----------------------------------------
The members of Canberra Neurological Center Pty Limited agreed at a general
meeting on March 14, 2006, that the Company must voluntarily commence a
wind-up of its operations.
Raymond Allan Dawson was subsequently appointed as liquidator.
Contact: Raymond A. Dawson
Liquidator
R. A. Dawson & Associates Chartered Accountants
GPO Box 443, Canberra
Australian Capital Territory 2601
Australia
Telephone: (02) 6239 6022
CHINATOWEN ENTERTAINMENT: Supreme Court Orders Wind-up
------------------------------------------------------
The Supreme Court of New South Wales issued a winding up order against
Chinatowen Entertainment (Australia) Pty Limited on March 9, 2006, and
appointed Antony de Vries as liquidator.
Contact: Antony de Vries
Liquidator
de Vries Tayeh
Level 3, 95 Macquarie Street
Parramatta, New South Wales 2125
Australia
DAVID STEPHEN: Members Resolve to Wind up Firm
----------------------------------------------
At a general meeting on March 14, 2006, members of David Stephen Pty Limited
resolved to close the Company's business operations.
Peter Lawson Kellaway was appointed as liquidator for the winding up.
ELEVENTH LANDING: Receiver and Manager Steps Aside
--------------------------------------------------
Michael Brendan Williams, on March 15, 2006, gave notice that he had ceased
to act as the receiver and manager of the property of Eleventh Landing Pty
Limited.
GARAQUIP SALES: Creditors to Review Liquidators' Report
-------------------------------------------------------
A final meeting of the creditors of Garaquip Sales and Service Pty Limited
will be held today, April 26, 2006, for them to receive Liquidators Peter G.
Burton and Brian H. Allen's final account showing how the Company was wound
up and how its property was disposed of.
Contact: Brian H. Allen
Peter G. Burton
Liquidators
c/o Burton Glenn Allen Chartered Accountants
Level 2, 57 Grosvenor Street
Neutral Bay, New South Wales 2089
Australia
Telephone: (02) 9904 4644
Fax: (02) 9904 9644
GREENWAY HOLDINGS: Appoints Official Receivers
----------------------------------------------
John Frederick Lord and Atle Crowe-Maxwell were appointed as the receivers
and managers of all assets, property and undertakings of Greenway Holdings
Australia Pty Limited on February 20, 2006,
Contact: Atle Crowe-Maxwell
John F. Lord
Receivers and Managers
PKF Chartered Accountants
Level 10, 1 Margaret Street
Sydney, New South Wales
Australia
HI-LITE SECURITY: Distributes Final Dividend Today
--------------------------------------------------
Hi-Lite Security (New South Wales) Pty Limited will distribute its first and
final dividend today, April 26, 2006, to the exclusion of its creditors who
were unable to prove their claims.
Contact: Nicholas Crouch
Liquidator
Crouch Insolvency Chartered Accountants
Level 28, 31 Market Street
Sydney, New South Wales 2000
Australia
KOALA PAINTING: Members and Creditors to Meet Liquidator Today
--------------------------------------------------------------
The members and creditors of Koala Painting Services Pty Limited will
convene today, April 26, 2006, to receive Liquidator M. J. M. Smith's
account regarding the Company's completed wind-up and disposal of the
Company's property.
Contact: M. J. M. Smith
Liquidator
Smith Hancock Chartered Accountants
Level 4, 88 Phillip Street
Parramatta, New South Wales 2150
Australia
MOTORACN 005 188 054: Set to Declare Dividend Today
---------------------------------------------------
Motoracn 005 188 054 Pty Limited will declare its first and final dividend
today, April 26, 2006.
Creditors who were unable to prove their claims cannot participate in the
benefit of the dividend.
Contact: Robyn Erskine
Peter Goodin
Joint & Several Liquidators
Brooke Bird & Co. Insolvency Practitioners
471 Riversdale Road, Hawthorn East
Victoria 3123, Australia
Telephone: (03) 9882 6666
Fax: (03) 9882 8855
NEAUVEMBER PTY: Members Agree to Liquidate Business
---------------------------------------------------
At a general meeting of Neauvember Pty Limited held on March 13, 2006,
members agreed that it is in the Company's best interests to liquidate its
operations.
Susan Carter and Jason Bettles were then appointed as liquidators for the
wind-up.
Contact: Jason Bettles
Susan Carter
Liquidators
Worrell Solvency & Forensic Accountants
Level 6, 50 Cavill Avenue
Surfers Paradise, Queensland
Australia
PENONG INVESTMENTS: Inability to Pay Debts Leads to Wind-up
-----------------------------------------------------------
The members of Penong Investments Pty Limited agreed to seek voluntary
liquidation for the Company on March 14, 2006, due to its inability to pay
its debts as and when they mature.
Timothy James Clifton and Mark Christopher Hall were appointed as joint and
several liquidators of the Company.
Contact: Timothy J. Clifton
Mark C. Hall
Joint and Several Liquidators
Level 10, 26 Flinders Street
Adelaide, South Australia
Australia
PINNACLE SHEETMETAL: Members Agree to Cease Operations
------------------------------------------------------
At an extraordinary general meeting of Pinnacle Sheetmetal Pty Limited,
members resolved to wind up the Company's operations voluntarily.
Daniel I. Cvitanovic was appointed as liquidator at a creditors' meeting
held later that day.
Contact: Daniel I. Cvitanovic
Liquidator
Level 1, 121-123 Crown Street
Wollongong, New South Wales 2500
Australia
SOUVAS PTY: Court Orders Winding Up
-----------------------------------
On March 10, 2006, the Federal Court of Australia ordered the winding up of
Souvas Pty Limited, and named Stephen James Parbery as the Company
liquidator.
Contact: Stephen J. Parbery
Liquidator
PPB Chartered Accountants and Business Reconstruction
Specialists
15th Floor, 25 Bligh Street
Sydney, New South Wales 2000
Australia
Telephone: (02) 9233 4955
Fax: (02) 9221 1310
STARK-HOLDINGS PTY: Placed Under Voluntary Liquidation
------------------------------------------------------
At a general meeting of the members of Star-Holdings Pty Limited on March 2,
2006, members concurred that a wind-up of the Company's operations is
appropriate and necessary.
Frederick George Thomas was appointed as liquidator of the Company.
TONITA REALTY: Shuts Down Business Operations
---------------------------------------------
Members of Tonita Realty Pty Limited held a meeting on Feb. 21, 2006, and
agreed on the Company's need to liquidate. P. Ngan and G. Parker were
subsequently appointed as joint and several liquidators.
Creditors confirmed the liquidators' appointment at a creditors' meeting
held that same day.
Contact: P. Ngan
G. Parker
Liquidators
Ngan & Co. Chartered Accountants
Level 5, 49 Market Street
Sydney, New South Wales 2000
Australia
WORLD POWER & LIGHTING: Schedules Final Meeting Today
-----------------------------------------------------
The members and creditors of World Power & Lighting Pty Limited will convene
in a final meeting today, April 26, 2006, to receive Liquidator Paul
Burness' final account showing how the Company was wound up and how its
property was disposed of.
The meeting will be held today, April 26, 2006.
Contact: Paul Burness
Liquidator
Worrells Solvency & Forensic Accountants
Level 5, 15 Queen Street
Melbourne, Victoria 3000
Australia
Telephone: (03) 9613 5500
Fax: (03) 9614 3233
================================
C H I N A & H O N G K O N G
================================
ABSA BANK: Creditors' Proof of Debts Due on May 19
--------------------------------------------------
Absa Bank (Asia) Ltd will be receiving proofs of debts from the Company's
creditors on or before May 19, 2006.
Failure of the creditors to show proofs on the specified date will exclude
them from sharing in any distribution the Company will make.
Contact: Thomas Andrew Corkhill
Iain Ferguson Bruce
Liquidators
8th Floor, Gloucester Tower
The Landmark
11 Pedder Street, Central
Hong Kong
BRILLIANCE CHINA: To Construct Production Plants in Guangdong
-------------------------------------------------------------
Brilliance China Auto Holdings plans to build two production plants in
Guangdong this year to boost up sales, The South China Morning Post relates.
Company Chairman Qi Yumin said that in order to increase market share, the
carmaker needed to have strong presence in both Beijing and Guangzhou.
The carmaker booked a net loss of CNY649.9 million in 2005, versus a profit
of CNY48.56 million a year earlier. The loss included a CNY300 million
impairment loss on the intangible asset so its Zhonghua sedan operation
whose sales declined 10% last year to 9,000 units.
Minibus sales fell 2.6% to 60,000 units while BMW sales through a joint
venture soared 10.1% to 17,501 units. Adding pressure on the Company's
finances is a US$200 million bond that is due for refinancing.
Capital expenditure for the next three years is expected to be CNY1.24
billion. The group did not indicate any plans for fund raising in the near
future.
Mr. Qi stated that a quality control manager from Europe had been hired to
improve overall quality control.
"Chinese-brand cars are much cheaper than cars made in Europe and the United
States but hopes that Chinese cars can attain the same quality level as cars
made in Europe and the United States, which would give them the power to
raise prices."
* * *
Headquartered in Central, Hong Kong, Brilliance China Automotive Holdings
Ltd's -- http://www.brillianceauto.com-- principal activities are the
manufacturing and distribution of minibuses for passenger and commercial
use, automobile window molding, stripping, other automotive components and
passenger sedan. It also manufactures gasoline engines for use in passenger
vehicles and light duty trucks. Major brands include Toyota and
Zhonghua.
As of December 31, 2005, the company stated that it had RMB843.4 million in
cash and cash equivalents, RMB1,053.8 million in short-term deposits and
RMB1,932.6 million in pledged short-term bank deposits. The Group had bank
notes payable of RMB3,101.0 million and outstanding short-term bank
borrowings of RMB496.5 million, but had no long-term bank borrowings
outstanding as of December 31, 2005. On November 28, 2003, the Company,
through its wholly owned subsidiary, Brilliance China Automotive Finance
Ltd, issued zero coupon subsidiary, Brilliance China Automotive Finance
Ltd., issued Zero Coupon Guaranteed Convertible Bonds due 2008 (the
Convertible Bonds) with principal amount of US$200 million (equivalent to
approximately RMB1,654.3 million at the time of issue). Up to December 31,
2005, none of the Convertible Bonds had been converted into ordinary shares
of the Company.
In a press statement, the Group recorded a net loss of Rmb671.3 million
(US$82.1 million) in 2005 as compared with a net income of Rmb1.2 million
(US$0.1 million) in 2004. Basic loss per ADS amounted to Rmb18.3 (US$2.2)
in 2005 as compared to basic earnings per ADS of Rmb0.03 (US$0.004) in 2004.
EFORCE HOLDINGS: 2005 Net Loss Widens to HK$27 Mln
--------------------------------------------------
As reported by the Troubled Company Reporter on
September 20, 2005, eForce Holdings Limited incurred a net loss of HK$9.241
million in the first half of 2005, versus a net loss of HK$14.643 million in
the same period a year earlier.
In an updated on April 25, 2006, Infocast News reports that the Company
booked a net loss of HK$27.223 million for 2005, compared with a net loss of
HK$21.415 million a year ago. No final dividend was declared.
* * *
Headquartered in Central, Hong Kong, Eforce Holdings Limited
-- http://www.eforce.com.hk/-- is engaged in the design, development,
manufacture & sale of a wide range of electric personal care products,
electric health care products & bathroom products, household products and
office equipments. According to Chong Hing Securities, the outlook for 2005
is challenging. The high costs of oil and commodity materials and the
increasing labor costs in the Guangdong provinces remain to be the biggest
concern. The Company reported a net loss HK$21.42 million in the year ended
December 31, 2004, versus a net loss of HK$89.20 million a year earlier.
GRADUATE CENTRE: Creditors Must Prove Debts by May 30
-----------------------------------------------------
Creditors of The Graduate Centre Ltd are required to send in their proofs of
debts on or before May 30, 2006.
Failure to do so will exclude any creditor from sharing in any distribution
the Company will make.
Contact: Cheung Kam Sing
Room 2202, Tung Wai Commercial Bldg
111 Gloucester Road, Wanchai
Hong Kong
GUANGDONG KELON: Hisense to Take 26.43% Stake for CNY680 Mln
------------------------------------------------------------
The Hisense Group has agreed to pay CNY680 million (US$85 million) to
acquire a 26.43% stake in Guangdong Kelon Electrical Holdings, Xinhua News
relates.
As reported by the Troubled Company Reporter - Asia Pacific on April 7,
2006, Guangdong Kelon Electrical Holdings and Qingdao Hisense Marketing
Company Limited have agreed to amend certain terms of connected transactions
to extend the term of the sales agency agreement. Both parties agreed that
the purchases of products during the period from September 16, 2005, to May
10, 2006, would not exceed CNY2.8 billion.
In a press statement, Kelon Guangdong stated that the deal has been reached
between Hisense and the Guangdong Greencool Enterprise Development Co., the
flagship company of Guangdong Kelon's former chairman Gu Chujun that holds a
controlling 26.4% stake.
According to the agreement, within seven working days after the deal takes
effect, Hisense will pay a down payment of CNY500 million or US$62.5 million
to a bank account designated by the Intermediate People's Court in Foshan.
Upon its receipt of the remittance, the court will freeze the account until
the shares are transferred to Hisense, and Hisense will remit the remaining
CNY180 million or US$22.5 million within another seven days.
According to the South China Morning Post, the validity of the Greencool's
agreement with Hisense is still subject to the approval of the industry
watchdogs including the China Securities Regulatory Commission (CSRC).
Hisense has been acting as Kelon's exclusive sales agent in China since
September 2005.
About Guangdong Kelon Electrical
Headquartered in Wanchai, Hong Kong, Guangdong Kelon Elecrical
Holdings Company Limited -- http://www.kelon.com/-- is one of the largest
cooling domestic appliance manufacturers in China, mainly engaging in the
development and manufacture, as well as domestic and overseas sales of
refrigerators and air-conditioners.
As earlier reported by the Troubled Company Reporter - Asia Pacific, KPMG
disclosed that CNY592 million was channeled out of the company by Mr. Gu
through Guangdong Greencool Enterprise Development, a company which he
controlled, and Kelon's other affiliates. Mr. Gu and six other executives
were arrested in Guangdong in September 2005, just a month after he was
ousted for suspected economic crimes. Kelon said in a legal notice that
KPMG, which it had hired to investigate its cash flow, found substantial
movement of money between Kelon and companies associated with Greencool
Companies over nearly four years. Before the latest scandal involving it's
former Chairman, the refrigerator maker was saddled with staggering 2004 net
losses, after seeing a CNY197.3 million net profit in 2003 and a similar
substantial profit in 2002. With the outbreak of the scandal, it suspended
trading of some of its shares and had its assets frozen.
HAIER ELECTRONICS: Sells Handset Operations to Parent
-----------------------------------------------------
Haier Electronics Group will sell its mobile handset production operations
to its parent Haier Group for HK$420 million to focus investment on its
white-goods business, The South China Morning Post reports.
Haier Electronics is discussing with its parent on the possible asset
injection as part of the plan to transform Haier Electronics into the
group's listed flagship of the white-goods business.
Other asset injections under negotiation with its parent include the group's
front-loading washing machine business, water heater business, mould
business and steel plate business.
Haier Electronics incurred a net loss of HK$433 million in 2005 because of
its poor performance in the mobile-handset business.
Following the sale, Haier Electronics will focus its business on the
production, sale and distribution of washing machines under the Haier brand.
* * *
Headquartered in Queen's Road Central, Hong Kong, the group is Haier
Electronic Group Co. Limited is engaged in the business of the sourcing of
raw materials, the distribution and manufacture of mobile phones and the
provision of technical and management services in connection therewith.
HOI SING: Winds Up Business
---------------------------
The members and creditors of Hoi Sing Construction Company Limited held a
meeting at 5/F, Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong
Kong, on April 24, 2006.
At the meeting, they discussed whether to accept the resignation of Alan
Rennie as Joint and Several Liquidator, and appoint Stephen Briscoe in his
place.
KEGO TECHNOLOGY: Annual Creditors Meeting Set on May 9
------------------------------------------------------
Creditors of Kego Technology Ltd will meet at the 27th Floor Alexandra
House, 18 Chater Road, Central, Hong Kong on May 9, 2006 at 10:30 a.m.
At the meeting, the Company's liquidator will lay the accounts of his
dealings and the conduct of the winding up of the Company.
Creditors may either vote in person or by proxy, forms of proxy must be
lodged not later than not later than 4:00 p.m. on May 8, 2006.
KEPO TIME: Liquidator to Present Wind-up Report on May 9
--------------------------------------------------------
Creditors of Kepo Time Limited will meet at 27th Floor Alexandra House, 18
Chater Road, Central, Hong Kong on May 9, 2006 at 11:30 a.m.
At the meeting, the Company's liquidator will lay the accounts of his
dealings and the conduct of the winding up of the Company.
Creditors may either vote in person or by proxy, forms of proxy must be
lodged not later than not later than 4:00 p.m. on May 8, 2006.
KENSLAND REALTY: Members and Creditors Meeting Fixed on March 24
----------------------------------------------------------------
The members and creditors of Kensland Realty Limited scheduled a meeting on
April 24, 2006.
At the meeting, they will be asked to consider the resignation of Fan Wai
Kuen as liquidator, and appoint Stephen Briscoe in his place.
NEW PACIFIC: Prepares to Declare Dividend
-----------------------------------------
New Pacific Properties Limited notifies parties-in-interest of an intended
dividend to be declared at the High Court of Hong
Kong.
Creditors are required to submit their proofs of claim by
May 6, 2006, to:
ET O'Connell
The Official Receiver & Trustee
10th Floor, Government Offices
66 Queensway, Hong Kong
Phone: (852) 2867 2448
Fax: (852) 3105 1814
e-mail: oroadmin@oro.gov.hk
PANVA GAS: Moody's Reviews Ba1 Ratings for Possible Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed the Ba1 senior unsecured bond rating
and corporate family rating of Panva Gas (Panva) under review for possible
downgrade. This review follows the company's announcement that it incurred
HKD208 million in marked-to-market losses in FY2005 arising from two
interest-rate swaps (IRS), which has weakened the company's financial
profile.
"Moody's is concerned that these IRS, entered in relation to Panva's bond
issuance in 2004, are not hedging instruments but expose the company to the
risk of rising interest rates," says Jennifer Wong, Moody's lead analyst,
adding, "in addition to the mark-to-market loss, Panva is currently paying
an effective interest cost of over 15% for its bonds due to interest rate
hikes until at least September 2006 when interest rates is reset again.
Furthermore, it is our understanding that Panva would need to increase its
cash collateral if there is a rating downgrade. This will continue to put
pressure on the company's financial metrics."
"Moody's also remains cautious with respect to the company's risk appetite
and financial discipline in entering into such financial instruments," says
Wong.
Furthermore, the original Ba1 rating has incorporated Moody's expectation
that Panva will actively pursue growth in the high-margin and stable
piped-gas business through acquisitions, but progress has been slower than
expected. Moody's remains cautious regarding Panva's evolving business
model and, as a result, its operating and business risk profiles. Partly
mitigating such risk is the fact that the company has closely adhered to its
acquisition criteria in executing its growth strategy.
Moody's says its review will focus on evaluating Panva's risk appetite and
discipline in maintaining financial prudence while pursuing its growth
strategy. The rating agency will also evaluate the financial impact from
the losses in the IRS and the effective higher interest cost. Furthermore,
Moody's will assess changes in the company's operating and business risk
profiles as a result of the slower-than-expected expansion in the piped-gas
business.
* * *
Panva Gas, listed on the Hong Kong Stock Exchange, is primarily engaged in
the downstream selling and distribution of LPG and natural gas in Mainland
China. Its main operations include the sale of LPG in bulk and cylinders,
the provision of piped natural gas, the construction of gas pipelines and to
a lesser extent the sale of LPG household appliances.
PANVA GAS: S&P Places Rating on CreditWatch Negative
----------------------------------------------------
Standard & Poor's Ratings Services has placed its "BB+" long-term corporate
credit rating on Panva Gas Holdings Ltd. on CreditWatch with negative
implications. At the same time, Standard & Poor's placed its "BB+" issue
ratings on Panva's US$50 million convertible bonds due 2008 and US$200
million senior unsecured notes due 2011 on CreditWatch with negative
implications.
"The rating actions reflect Panva's weakened financial profile as a result
of two interest rate swap transactions that have significantly increased its
financial costs this year," said Standard & Poor's credit analyst Raymond
Woo.
The company reported a swap loss of Hong Kong dollar 208 million for the
year ended Dec. 31, 2005 after its derivative instruments were marked to
market in line with new accounting practices. Financial costs have also
risen. For most of 2005, its effective interest rates were much lower than
the 8.25% coupon rate on its US$200 million senior unsecured notes. On
March 23, 2006, however, effective interest rates increased to about 15%.
Depending on interest rate movements, the company's finance costs could
become highly volatile over the next few years. Unwinding these swap
transactions, at present, would be costly -- as indicated by the
mark-to-market loss. In addition, Panva would need to post more collateral
under the terms of the swap transactions if the rating on the company were
lowered by two notches to "BB-", and this would further weaken the company's
liquidity and financial flexibility.
Standard & Poor's will shortly meet the company's management to discuss its
strategy for swap transactions and assess the swaps' potential impact on the
company's future financial position.
* * *
Panva Gas, listed on the Hong Kong Stock Exchange, is primarily engaged in
the downstream selling and distribution of LPG and natural gas in Mainland
China. Its main operations include the sale of LPG in bulk and cylinders,
the provision of piped natural gas, the construction of gas pipelines and to
a lesser extent the sale of LPG household appliances.
SHARP SUCCESS: Creditors' Proofs of Debts Due on May 8
------------------------------------------------------
Creditors of Sharp Success Investments Ltd are required to send in their
proofs of debts on or before May 8, 2006.
Failure to do so will exclude any creditor from sharing in any distribution
of assets the Company will make.
Contact: Desmond Chung Seng Chiong
Joint and Several Liquidator
c/o Ferrier Hodgson Limited
14/F., Hong Kong Club Building
Central, Hong Kong
SUN GROWTH: SFC Reprimands Firm
-------------------------------
The Securities and Futures Commission has reprimanded Sun Growth Securities
Limited and its responsible officers Ng Kei Choy Stephen and Kao Wing Lun
for breaching the Code of Conduct. They were fined HK$120,000, HK$221,000
and HK$64,000, respectively
The reprimands and fines are the result of a settlement between Sun Growth,
Ng and Kao and the SFC.
The SFC received a complaint in July 2003 relating to the alleged
misappropriation of client funds by an ex-account executive of Sun Growth.
After investigation, the SFC found that Sun Growth's internal controls were
deficient because of:
-- lack of a well defined and segregated function for each
department;
-- insufficient guidelines to and supervision of staff in
dealing procedures;
-- insufficient cross checking of account opening
documentation for new clients and subsequent change of
client details;
-- failure to provide a copy of the Client Agreement to
clients and failure to keep track of and update records
and documentation of clients; and
-- no formal procedure to handle clients' complaints.
In deciding the penalty, the SFC has taken into account the Disciplinary
Fining Guidelines that the:
-- clients suffered losses as a result of misconduct of the
former account executive of Sun Growth;
-- Sun Growth has undergone various rounds of internal
control review by external auditors and has adopted the
recommendations given; and
-- Sun Growth, Ng and Kao co-operated with the SFC in
settling the disciplinary action.
The SFC considers the settlement to be in the interest of the investing
public and in the public interest.
Alan Linning, SFC's Executive Director of Enforcement, said: "We take all
cases of misappropriation or alleged misappropriation of client monies
extremely seriously. Such activities undermine the strength and confidence
the investing public places in our system of licensed corporations and
brokers. Sun Growth's internal controls were severely lacking and the
ultimate responsibility lay with the responsible officers to put in place
the very best possible checks and balances. Those who fail to do so will be
held accountable to us and will face disciplinary sanction. All licensed
corporations must be vigilant at all times to misappropriation and other
fraudulent acts."
WIN VICTORY: Company Director Admits HK$49-Mln Fraud
----------------------------------------------------
Win Victory Holdings Limited director and shareholder
Mo Yuk-ping admitted defrauding five banks of HK$49 million (US$6.33
million) worth of letters of credit facilities with bogus documents on
business transactions.
According to the International Anti-corruption Web site, she pleaded guilty
to 12 counts of conspiracy to defraud at the District Court on April 24,
2006. Deputy Judge Colin Mackintosh adjourned the case to April 26, 2006,
for mitigation.
The court heard that between June 2001 and March 2003, Mo conspired with
other persons to defraud five banks by dishonestly causing Hong Kong Nam Hoi
Enterprise Limited (Nam Hoi) to apply to those banks for a total of 12
letters of credit in favor of Win Victory.
In order to support the letters of credit applications, they had submitted
false documents to the banks, purportedly evidencing genuine underlying
business trading of plastic raw materials between Nam Hoi and Win Victory.
As a result, the banks released a total of over HK$49 million to Win Victory
under the letters of credits. The prosecution was represented by Robert
Andrews, counsel on fiat, assisted by ICAC officer Lam Cheung-ching.
As reported by the Troubled Company Reporter - Asia Pacific on March 16,
2004, Shanghai Merchants Holdings Limited filed a petition to wind up Win
Victory Holdings Limited on
September 23, 2003.
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COAL INDIA: 166,000 Tons of Coal Exported in 2004-05
----------------------------------------------------
State-owned Coal India Limited exported 166,000 tons of coal during fiscal
year 2004-05 to neighboring countries.
During the first three quarters of the 2005-06 fiscal year, Coal India
exported 24,580 tons of coal, an official release said.
Meanwhile, India imported 14.57 million tons of coking coal, 11.56 million
tons of non-coking coal and 2.51 million tons of coke during the 2004-05
period, it said.
Coal is under an Open General License list. India exports coal to Nepal,
Bangladesh and Bhutan to meet their domestic demand.
Coking coal is imported by the Steel Authority of India and other steel
manufacturing units to bridge the gap between requirement and local
availability.
About Coal India Limited
Headquartered in Kolkota India, Coal India Limited
-- http://www.coalindia.nic.in/-- is engaged in the mining of coal, coal
based products and mining consultancy. The Group was incorporated under the
Companies Act, 1956 and is wholly owned by the Government of India. It
recently turned around from substantial losses in the past due to its
e-auction revenues. However, labor problems involving its senior staff
continue to hinder the Company's complete recovery.
INDIA CEMENTS: Stock Jumps on Sale Rumors
-----------------------------------------
India Cements Limited stock price climbed up to INR210.70 this week amid
rumors of Grasim Industries' interest in the Chennai-based cement firm, The
Financial Express reveals.
Gasim, however, declined to comment on the speculations, The Indian Express
says. Indian Cements, on the other hand, denied that it was in talks with
Grasim. It also dismissed reports that it was currently looking at
investment from private equity.
India Cements said that it is raising INR337.5 crore for brown-field
projects either through foreign currency convertible bonds or global
depository receipts. The funds will be used for upgrading and increasing
capacities by two million tonnes, The Financial Express relates.
An unnamed Mumbai-based analyst backed India Cements' claim, saying that it
does not make sense for the Company to sell as it has just made a
turnaround.
"India Cements will want to cash in on the infrastructure activities in
south India, where it is based," the analyst said.
About India Cements
Headquartered in Chennai, India, India Cements Limited
-- http://www.indiacements.co.in/-- manufactures and markets cement under
the brand name Coromandel cement. The Company was established in 1946 and
the first plant was setup at Sankarnagar in Tamilnadu in 1949. Since then
it has grown in stature to seven plants spread over Tamilnadu and Andhra
Pradesh. In 2002, the Company fell into a deep financial crisis, which
prompted it to undertake debt restructuring plans in 2003. Faced with the
huge challenges, the company addressed its problems proactively. It reduced
interest costs, improved the capacity utilization, implemented voluntary
retirement schemes and raised equity. All these initiatives helped the firm
bring down its debt under corporate debt restructuring program from a hefty
INR1,700 crore to INR400 crore.
SILVERLINE TECHNOLOGIES: Members Welcome Restructuring Plan
-----------------------------------------------------------
Silverline Technologies Ltd held its 13th Annual General Meeting on April
21, 2006.
At the meeting, members;
-- considered the adoption of the accounts for the
financial year 2004-05 along with the adoption of all
resolutions;
-- welcomed the Restructuring Plan undertaken by M/s. First
call India Equity Advisors Pvt Ltd;
-- appreciated the various options being evaluated by the
Company in the form of Strategic Alliances and
re-establishment of client relationships;
-- received a report on the debt-restructuring plan which
the Company has undertaken;
-- accepted the Company's proposal to focus in software
development and consultancy services and in addition
will be going forward in the areas of ITES, Technology
Help Desk Practices and IT Outsourcing Opportunities as
it has been presented in the AGM; and
-- received guidance for the Company's turnaround during
the current Financial Year 2006-07.
About Silverline Technologies Limited
Mumbai-based Silverline Technologies Limited provides a comprehensive set of
eBusiness consulting and IT services including strategic consulting,
creative design, technology integration and implementation, as well as
management and maintenance of Internet and Legacy applications. The Company
focuses its market on telecommunication, financial services, banking and
other related industries which uses IBM mainframes, client servers, ORACLE,
SYBASE, , intranet and web technologies. Operations of the Group are carried
out in India. The Company's problems began in 2001 when it suffered decline
in profitability and increase in collection period resulting from cash flow
mismatches. Subsequently, the Company closed redundant facilities and
trimmed payrolls as a result of the slowing economy. Aimed at leveraging
its underutilized assets, Silverline Technologies taken up a restructuring
exercise that involves a proposal to hive off one or more of its
undertakings located in India. The company planned to sell, transfer,
lease or otherwise dispose of its Indian undertakings. It also proposed to
raise additional resources either through debt or equity and increase its
authorized capital, accordingly.
=================
I N D O N E S I A
=================
PERTAMINA: To Sell Biodiesel Fuel in May
----------------------------------------
PT Pertamina intends to sell two types of biodiesel fuel starting May 2006
to minimize the use of fossil fuel in the country, People's Daily relates.
The Jakarta Post relates that B10, containing 10% biodiesel, and 90%
ordinary diesel, and B5 containing 5% biodiesel and 95% ordinary diesel,
will be sold at between IDR4,800 (US$54 cents) and IDR5,000 (US$56 cents)
per liter.
The state-owned oil and gas firm will get the biodiesel supply from the
Agency for the Assessment and Application of Technology, which at present
operates a biodiesel plant with a capacity of 1.5 tons a day. The agency
uses crude palm oil as the raw material for the production of its biodiesel
fuel.
About PT Pertamina
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly
state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in
November 2001 and Government Regulation No.
31/2003 has changed its legal status from a special state-owned enterprise
into a Limited Liability Company. In carrying out its activities, PT
Pertamina implements an integrated system from upstream to downstream.
Pertamina operates seven oil refineries with a total output capacity of
around 1 million barrels per day. However, these refineries only cover
about three-quarters of domestic oil demand, with the rest being met by
imports.
In 2003, PT Pertamina director of finance Alfred Rohimone disclosed that the
state-owned oil company's financial condition was in critical condition
because its expenditure was surpassing its income due to its obligation to
meet domestic demand with fuel oil bought at higher prices on he
international market. Mr. Rohimo stated that with a liquidity position
below IDR2 trillion, the Company was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first six months
of 2005, Pertamina's failure to service its financial obligations was pegged
as one of the contributors to Indonesia's decreased income for the year.
In August 2005, a debt owed by Pertamina to United States firm Karaha Bodas
Company has risen from IDR2.54 trillion to IDR2.99 trillion. The debt
increased when, in 2003, a U.S. court ordered the Company to pay
compensation to KBC, relating to an international arbitration decision, when
the Indonesian Government halted a geothermal project in Karaha Bodas, East
Java. Since that time, the debt has steadily risen due to the Company's
failure to pay the compensation immediately.
PERTAMINA: Seeking Arab Investors For Several Projects
------------------------------------------------------
PT Pertamina is offering several geothermal and oil and gas projects to Arab
investors, AFX News reports, citing PT Pertamina director for upstream
operations Sukusen Soemarinda.
Mr. Soemarinda said that the geothermal projects include the Kamojang, Lumut
Balai, Lahendong and Ulu Belu fields while the upstream oil and gas projects
involve the Cepu and Pondok Tengah blocks. He added that for the upstream
oil project, the Company might only look for funding.
The Troubled Company Reporter - Asia Pacific reported on
April 24, 2006, that Pertamina hopes to sign a memorandum of understanding
with Saudi Aramco to build a new refinery plant in Indonesia as the Company'
s current seven refineries cannot match the rise in domestic fuel demand.
Pertamina's vice-president Iin Arifin Takhyan had said that the location,
capacity and investment cost of the refinery will depend on Saudi Aramco.
AFX News relates that Saudi Aramco has agreed in principle to cooperate with
Pertamina for the Tuban oil refinery, though any deal will depend on the
project's economic viability of the project. Mr. Takhyan stated that if a
joint venture plan does not materialize, Pertamina will propose to continue
importing crude from Saudi Aramco. According to the AFX report, Pertamina
currently needs to import around 400,000 barrels of crude per day.
AFX cites Pertamina President Ari Soemarno as saying that Pertamina hopes to
sign memoranda of understanding this month with the United Arab Emirates and
Saudi Aramco. He said that the MOUs are expected to be signed during
President Susilo Bambang Yudhoyono's planned visit to the Middle East at the
end of this month.
About PT Pertamina
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly
state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in
November 2001 and Government Regulation No.
31/2003 has changed its legal status from a special state-owned enterprise
into a Limited Liability Company. In carrying out its activities, PT
Pertamina implements an integrated system from upstream to downstream.
Pertamina operates seven oil refineries with a total output capacity of
around 1 million barrels per day. However, these refineries only cover
about three-quarters of domestic oil demand, with the rest being met by
imports.
In 2003, PT Pertamina director of finance Alfred Rohimone disclosed that the
state-owned oil company's financial condition was in critical condition
because its expenditure was surpassing its income due to its obligation to
meet domestic demand with fuel oil bought at higher prices on he
international market. Mr. Rohimo stated that with a liquidity position
below IDR2 trillion, the Company was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first six months
of 2005, Pertamina's failure to service its financial obligations was pegged
as one of the contributors to Indonesia's decreased income for the year.
In August 2005, a debt owed by Pertamina to United States firm Karaha Bodas
Company has risen from IDR2.54 trillion to IDR2.99 trillion. The debt
increased when, in 2003, a U.S. court ordered the Company to pay
compensation to KBC, relating to an international arbitration decision, when
the Indonesian Government halted a geothermal project in Karaha Bodas, East
Java. Since that time, the debt has steadily risen due to the Company's
failure to pay the compensation immediately.
PERUSAHAAN LISTRIK: 2005 Net Loss Widens by 144%
------------------------------------------------
State-owned electricity company PT Perusahaan Listrik Negara incurred a net
loss of IDR4.92 trillion in 2005, versus a net loss of IDR2.02 trillion a
year earlier, Dow Jones reports.
According to Dow Jones, the Company's net miscellaneous costs widened to
IDR2.69 trillion from IDR1.12 trillion in 2004. Its net miscellaneous costs
are interest gains minus interest costs and foreign exchange losses.
Its operating profit plunged to IDR519.72 billion from IDR2.56 trillion as
fuel costs jumped 53% to IDR37.36 trillion from IDR24.49 trillion. PLN's
electricity sales rose just 8.6% to IDR63.25 trillion from IDR58.23
trillion.
The Company received IDR12.51 trillion in subsidies from the Government last
year, almost four times the IDR3.47 trillion in 2004.
The Government earlier this year dropped the plan to increase electricity
prices on concerns of street protests and rising inflation. PT Perusahaan
has been trying to boost the use of natural gas to reduce fuel costs.
* * *
Headquartered in Jakarta, Indonesia, PT Perusahaan Listrik
Negara -- http://www.pln.co.id/-- is Indonesia's state-owned
utility company. The Company transmits and distributes
electricity to approximately 30 million customers, or about 60% of
Indonesia's population. The Indonesian Government decided to end PLN's
power supply monopoly to spark interest for independents to build more
capacity for sale directly to
consumers, as many areas of the country are experiencing power
shortages.
After suffering heavy losses since 2004, PLN posted a IDR4.92 trillion net
loss in 2005, compared with the IDR23-trillion net loss it had expected.
The Troubled Company Reporter - Asia Pacific reported that as part of its
cost-cutting efforts, PT Perusahaan Listrik Negara is planning to substitute
the use of high-speed diesel in some of its power plants with fuel oil, the
Jakarta Post says. PLN primary energy director Tonny Agus Mulyantono said
that the Company has identified 45 diesel-power plants that could be
converted to use the cheaper fuel oil. The Company expects some
IDR1.34-trillion savings if the conversion pushes through since fuel oil
only costs IDR3,600 per liter, which is much cheaper that the IDR5,043 per
liter diesel fuel. PLN would need six to eight months to install new
equipment to handle fuel oil, which is thicker than high-speed diesel fuel.
PUTRA SUMBER: Pefindo Affirms idBB+ Rating
------------------------------------------
Pefindo has affirmed its ratings of "idBB+" for PT Putra Sumber Utama Timber
and the Company's Bond I/2003 of IDR200 billion.
The ratings strongly reflect the Group commitment to repay the Company's
Bond I/B of IDR100 billion due May 2006. As agreed on April 11, 2006, the
Group is scheduled to transfer US$10 million into trustee account on May 1,
2006, at the latest to repay the maturing debt.
The ratings also reflect lack of raw material availability and the Company's
decreased profitability and limited cash flow protections.
* * *
Putra Sumber Utama Timber is one of the leading manufacturing company in
plywood and Laminated Veneer Lumber in Indonesia. It is a subsidiary of the
HASKO Group, a group of companies focusing on timber related products.
In December 2005, Pefindo downgraded its ratings for PT
Putra Sumber Utama Timber and the Company's Bond I/2003 of IDR200 billion to
"idBB+" from "idBBB-". The Company's Bond I/B totaling IDR100 billion will
be due in May 2006, while the remaining Bond I/A will be due in May 2008.
The rating downgrades are mainly driven by the scarcity of raw material
(logs), the Company's marginal cash flow protection and limited liquidity,
as well as increasing flood risk exposure due to rainy season. The ratings,
however, are still supported by relatively stable product demand from the
export market.
=========
J A P A N
=========
LIVEDOOR COMPANY: To Sell Unit's Shares for JPY300 Million
----------------------------------------------------------
Livedoor Company Limited is planning to sell all its shares in its
subsidiary, Network and Security Research Institute Company, to software
firm Cybozu Corporation, Crisscross News reports.
According to Crisscross, Livedoor holds a 92.8% stake in the contents
planning company, but decided to sell off the unit since it is not
consistent with the Company's core business, TMC News relates.
The Company will sell its entire stake to Cybozu Corporation for JPY300
million.
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.
MITSUBISHI MOTORS: Ends Joint Venture with German Auto Firm
-----------------------------------------------------------
Mitsubishi Motors Corporation will dissolve its joint engine-production
venture with DaimlerChrysler AG by selling its entire stake in the unit to
the German firm, TMCnet reveals.
Kyodo News said that, according to officials, Mitsubishi Motors has not yet
agreed on a sale price for its joint venture shares.
Mitsubishi originally tied up with DaimlerChrysler in order to produce
engines for its auto assembly plant in the Netherlands, Mainichi Daily News
recounts. DaimlerChrysler had decided to cease production of its Smart
compact cars, which Mitsubishi had been manufacturing for them.
The Company severed its capital ties with DaimlerChrysler in November last
year.
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.
* * *
According to a March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific, 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.
NEC ELECTRONICS: Reports JPY98-Billion Loss on Asset Write-off
--------------------------------------------------------------
NEC Electronics Corporation posted a JPY98.2 billion loss for the business
year ending March 31, 2006, due to falling prices and an asset write-off,
Reuters News relates.
The Troubled Company Reporter - Asia Pacific reported on
April 24, 2006, that the Company had already expected the loss, instead of a
previous forecast of JPY20 billion, on weak sales and possible claims from a
United States lawsuit, as well as added asset-valuation costs.
About NEC Electronics
Headquartered in Kanagawa, Japan, NEC Electronics Corporation --
http://www.necel.com/-- specializes in semiconductor products encompassing
advanced technology solutions for the high-end computing and broadband
networking markets, system solutions for mobile handsets, PC peripherals,
automotive and digital consumer markets, and multiple market solutions for a
wide range of customer applications. NEC Electronics Corporation has 26
subsidiaries worldwide, including NEC Electronics America, Inc. and NEC
Electronics (Europe) GmbH.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 27, 2005, that NEC president Kaoru Tosaka, decided to resign after
reporting a net loss of JPY1.55 billion in the second quarter of 2005 and
forecasting a deficit for that fiscal year because of slumping chip sales.
Executive Vice President Toshio Nakajima was appointed to replace Mr.
Tosaka.
NEC has been strengthening cost-cutting measures to improve its finances.
VODAFONE K.K.: Softbank Completes Acquisition Bid
-------------------------------------------------
Softbank Corporation completed a tender offer for the shares in Vodafone
K.K., a Japanese unit of British firm Vodafone Group PLC, and will hold a
97.7% stake in the Company, Reuters News relates.
Softbank is slated to pay JPY1.66 trillion for the Vodafone shares beginning
April 27, 2006, when Vodafone K.K. will officially become a Softbank unit.
AFX News Limited relates that Softbank will try to get hold of the remaining
2% share in Vodafone.
An April 5, 2006 report by the Troubled Company Reporter - Asia Pacific
stated that Softbank would borrow up to JPY1.3 trillion from local and
foreign banks for the acquisition.
According to a Troubled Company Reporter on March 22, 2006, Standard &
Poor's Ratings Services had lowered its long-term corporate credit and debt
ratings on Vodafone K.K. to 'BB+' from 'A+', following the decision of
parent Vodafone Group PLC to sell the unit to Softbank Corporation.
Vodafone K.K.'s ratings remain on CreditWatch with negative implications,
where they were placed on March 3, 2006.
The downgrade reflects the radical weakening of Vodafone K.K.'s credit
profile due to the removal of the support from the stronger Vodafone Group,
the leveraged structure of the takeover, and the weaker credit quality of
its new owner, Softbank. The resolution of the CreditWatch placement will
be undertaken in tandem with that on Softbank after progress in the
acquisition and details of the LBO funding scheme are confirmed.
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K O R E A
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HYUNDAI MOTOR: Suspends Major Business Plans Pending Legal Cases
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Hyundai Automotive Group has suspended all major business plans indefinitely
while judicial proceedings against its chairman, Chung Mong-koo, and his
son, Chung Eui-sun, are in progress, The Korea Herald relates.
The Korea Times states that Hyundai Motor has postponed the groundbreaking
ceremony of its manufacturing facility in the Czech Republic, which had been
initially set for May 17, 2006. Hyundai Motor and Hyundai Czech Republic
have both canceled all of their scheduled investors' relations sessions
planned for April and May.
The Hyundai Group said in a handout to reporters that the absence of
Chairman Chung would severely damage its overseas business.
The Troubled Company Reporter - Asia Pacific reported on
April 25, 2006, that Mr. Chung faced prosecutors and answered questions
regarding his involvement in a slush fund case wherein the motor group
allegedly embezzled millions of dollars from to bribe Government officials.
On April 20, 2006, Mr. Cheung's son, Kia Motors President Eui-sun, appeared
before prosecutors and went under 18 hours of questioning.
The TCR-AP stated on April 17, 2006, that prosecutors are also looking into
accusations that Chairman Chung and his son made hundreds of billions of won
in profit from selling Bontec, formerly owned by Hyundai-affiliated Glovis
Co. to Hyundai Autonet, because the share prices were over-inflated in
appraisals. The Chungs held a controlling stake in Bontec prior to the
sale.
According to reports, Mr. Chung and others at Hyundai could
face indictment later this month or early in May on tax evasion,
embezzlement, bribery and related graft charges. Mr. Chung has
publicly denied any wrongdoing.
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. 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 Troubled Company Reporter - Asia Pacific reported 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,
including having 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.
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.
HYUNDAI MOTOR: Group to Pay Cash to Suppliers
---------------------------------------------
Hyundai Motor Group -- which includes Hyundai Motor Co., Kia Motors
Corporation and Hyundai Mobis Co. -- intends to pay suppliers KRW2.6
trillion by 2010 for their research and development activities, Yonhap News
reports.
According to Yonhap News, the announcement came hours after Hyundai Motor
Co.'s chairman, Chung Mong-koo, was released following 15 hours of
questioning relating to the Group's alleged creation of slush funds used for
illegal political lobbying.
The Troubled Company Reporter - Asia Pacific reported on
April 21, 2006, that Chairman Chung and his son, Kia Motors President Chung
Eui-sun, had pledged to donate personal assets
-- specifically their entire 60% stake in Hyundai affiliate Glovis Co. -- to
society. The donation, valued at KRW1 trillion, is believed to be a
desperate countermeasure against increasing pressure brought about by the
slush fund scandal.
Yonhap News adds that Glovis stock fell following the disclosure of the
charitable donation.
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. 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 Troubled Company Reporter - Asia Pacific reported 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,
including having 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.
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.
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M A L A Y S I A
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APEX EQUITY: Buys Back 27,000 Shares for MYR 27,000
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On April 24, 2006, Apex Equity Holdings Berhad bought back 27,400 ordinary
shares of MYR1.00 each for a total cash consideration of MYR13,836.94.
The minimum price paid for each share purchased was MYR0.505 and the maximum
was MYR0.510.
After the purchase, the cumulative outstanding treasury shares have reached
3,069,200.
On April 5, 2006, the Company bought back 130,400 ordinary shares for a
total cash consideration of MYR59,173.24, according to an earlier report by
the Troubled Company Reporter - Asia Pacific.
About Apex Equity Holdings Berhad
Apex Equity Holdings Bhd -- http://www.apexequity.com.my/-- is principally
engaged in stock and share broking, securities dealing, property holding,
provision of portfolio management, investment advisory and nominee services,
establishment and management of unit trust and property and investment
holding. Operations of the Group are principally carried out in Malaysia.
The Company has suffered five consecutive years of losses beginning 2001.
It has incurred a net loss of MYR32,932,000 in the fourth quarter of the
fiscal year ending December 31, 2005, which is an improvement from the
fourth quarter 2004 net loss of MYR76,596,000.
COMSA FARMS: Averts Bourse Delisting
------------------------------------
Bursa Malaysia Securities Berhad has, on April 21, 2006, decided that it
will not proceed with the delisting procedures commenced against Comsa Farms
Berhad on March 28, 2006.
The Bourse's decision came after the Company had on April 5, 2006, and April
18, 2006, respectively submitted and issued its annual audited accounts and
annual report for the financial year ended March 31, 2005.
As reported by the Troubled Company Reporter - Asia Pacific, Bursa Malaysia,
on March 28, 2006, decided to delist Comsa Farms' securities from its
official list due to the Company's failure to submit its annual reports and
audited annual accounts on time. Comsa Farms, however, immediately lodged
an appeal to prevent its securities from being delisted. In view of the
Appeal, the Bourse had deferred the removal of the Company's securities from
the Official List.
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 in
shareholders equity totaling MYR89,412,000. As an affected listed issuer,
Comsa Farms is required to submit a plan to regularize its financial
condition.
GULA PERAK: Unable to Meet MYR34.7-Mln Sinking Fund Obligation
--------------------------------------------------------------
Gula Perak Berhad is unable to produce around MYR34,718,000 that must be
paid into the sinking fund account of the RCSNs by
April 23, 2006.
The RCSNs refers to a trust deed constituting redeemable convertible secured
notes 2003/2008 with an aggregate nominal value of MYR288,820,655.
As of March 31, 2006, the amount available in the sinking fund account
including interest earned is only MYR4,351,848.61.
Rating Agency Malaysia disclosed in November 2005 that the Company planed to
meet the obligation via the sale of its assets pledged under the RCSNs.
Rating Agency opined that the Company would find it challenging to dispose
of these assets in time and at the right price to meet its imminent
financial obligations.
Currently, Gula Perak is in active negotiations with the RCSN holders
regarding the Sinking Fund Account.
About Gula Perak Berhad
Headquartered in Kuala Lumpur, Malaysia, Gula Perak Berhad is principally
involved in the management and operation of hotels. Its other activities
include cultivation of palm oil, construction works, trading in construction
materials, property development and service apartment operations and
management. Since its inception, Gula Perak has been suffering from
stretched finances, characterized by its high debt level relative to its
weak operating cash flow. Its business and financial profiles remained
unhealthy, as the Company suffered consecutive losses. In 2000, Gula Perak
embarked on a debt-restructuring exercise in order to improve its earnings
and cashflow position. The restructuring exercise, which was expected to be
concluded in 2001, faced delays. Given the sluggish property market and the
delay in the completion of the Group's debt restructuring exercise, its
property division has been almost at a standstill in the past two years.
Upon completion of the debt restructuring, management plans to launch its
industrial and mixed developments in Batang Berjuntai, Kampung Jawa, Setapak
and Cheras over the next few years. The Company's Board does not expect to
see any significant improvement in Gula Perak's financial profile upon the
completion of its debt restructuring exercise. Based on analysis of its
cash flow, external funds will be required to ensure the timely repayment of
Gula Perak's future interest and principal repayments should the Group fail
to secure sufficient sales from its property development activities. In
light of the lackluster property market, the Group may not generate
sufficient demand for its properties to adequately cover the infrastructure
cost in the initial years. As expected, the Group had encountered
difficulties in meeting its financial obligations during the past years.
Some of these obligations have subsequently been restructured with more
favorable terms.
LANKHORST BERHAD: Falls Under PN 17 Category
--------------------------------------------
Bursa Malaysia Securities Berhad on April 24, 2006, noted that the auditors
have expressed a disclaimer opinion in respect on Lankhorst Berhad's going
concern in its Annual Audited Accounts for the financial year ended December
31, 2004. As such, Lankhorst is classified as an affected listed issuer and
is required to comply with the provisions of Practice Note 17/2005.
As an affected issuer, Lankhorst is required:
-- to make the First Announcement within seven market days
after falling under one of the prescribed criteria;
-- to submit a plan to regularize its condition to the
relevant authorities for approval or where the relevant
authorities approvals are not required, obtain all other
approvals necessary for the implementation of the
Regularization Plan within eight months from the date of
the First Announcement;
-- to implement the Regularization Plan within the timeframe
stipulated by the relevant authorities or where no
timeframe has been stipulated or allowed by the relevant
authorities, within the timeframe as imposed by Bursa
Securities;
-- to announce the status of its Regularization Plan on a
monthly basis on the first market day of each month
beginning with the month following the date of the First
Announcement until further notice from Bursa Securities;
and
-- to announce its compliance or non-compliance with a
particular obligation imposed pursuant to PN17/2005 on
an immediate basis.
In the event Lankhorst fails to comply with all the provisions of PN
17/2005, Bursa Securities may take any action against the Company including
but not limited to delisting proceedings against Lankhorst.
Meanwhile, the Lankhorst's Board is currently in the process of preparing
the Regularization Plan. Once completed, the requisite announcement
outlining the Regularization Plan shall be made to Bursa Securities
accordingly.
The Board of Directors will also consider appealing against Bursa Securities
decision to classify Lankhorst under PN 17/2005 and the appropriate
announcements will be made in due course.
About Lankhorst Berhad
Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in civil and
geotechnical engineering services, building construction, trading and
application of geosynthetic materials. Other activities include property
development and investment, water and wastewater treatment, oil and gas
contracting and supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement services and
trading of construction supply. The Company has been incurring a string of
losses due to high operating costs and its units are facing winding up
actions. It also deafulted on several loan facilities. On April 18, 2006,
Bursa Malaysia Securities Berhad decided that it will not proceed with the
delisting procedures commenced against Lankhorst Berhad on January 3, 2006.
MALAYSIA AIRLINES: Urged to Train More Pilots
---------------------------------------------
Prime Minister Datuk Seri Abdullah Ahmad Badawi urged ailing Malaysia
Airlines to train more pilots so it can maintain its flight capacity and
compete with its Asian counterparts, The Daily Express reveals.
The Prime Minister made the comment during the launch of flying academy, HM
Aerospace Sdn Bhd, in Malaysia on April 23, 2006.
At the ceremony, HM Aerospace also signed an agreement with Malaysia
Airlines to train the airlines' pilots.
The academy, which began operations two years ago, now has 207 cadets,
including three women, undergoing training at various levels. The first
batch of 16 cadets, all of whom were from Malaysia Airlines, had completed
their 14-month training, and received their wings from the Prime Minister at
the function.
Mr. Badawi commended the agreement between HM and MAS, saying the extremely
strong demand for efficient pilots needed good training schools to churn out
the trained manpower.
In addition, Mr. Badawi stressed that MAS should churn out more pilots to
replace those who transfer to other airlines that offer higher salary and
attractive benefits.
But while, the airline is in desperate need of more pilots, the carrier is
still keen on laying off 6,500 of its 6,500 employees as it cuts its fleet
in half to 21 aircraft, the Troubled Company Reporter - Asia Pacific
reported on March 29, 2006. The move is part of the airline's three-year
restructuring plan.
About Malaysia Airlines
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.
OMEGA HOLDINGS: White Knights Withdraw Restructuring Support
------------------------------------------------------------
The Securities Commission has, on March 23, 2006, rejected Omega Holdings
Berhad's Proposed Restructuring Scheme after considering the level of
corporate governance of substantial shareholders who directly or indirectly
hold shares in Omega.
In view of the rejection, Omega's "white knights" resolved not to proceed
with the Scheme and terminate the Restructuring Agreement. The "white
knights" include:
* Melati Ehsan Holdings Sdn Bhd;
* Alpine Equity (M) Sdn Bhd; and
* Dato' Yap Suan Chee.
Moreover, the Omega's Board has resolved not to appeal to the Securities
Commission's decision. The Board will deliberate on the next course of
action to be taken and announcement will be made in due course.
Omega Holdings Berhad
Headquartered in Selangor Darul Ehsan, Malaysia, Omega Holdings Berhad is
engaged in investment holding and provision of management services. Omega
has been classified as an affected listed issuer pursuant to Practice Note
4/2001 of the Listing Requirements of Bursa Securities since 26 February
2001. On December 31, 2002, Omega undertook the previous Omega scheme to
regularize its financial condition, which was approved by the Securities
Commission on August 28, 2003, and was at an advanced stage of
implementation when it was aborted due to the revocation of SC's approval on
August 2, 2004. In view of this, Omega intends to undertake the Proposed
New Restructuring Scheme to regularize its financial condition in order to
ensure the interests of its shareholders are protected.
PAN MALAYSIA: Pays MYR56,435 for 140,000 Shares
-----------------------------------------------
On April 21, 2006, Pan Malaysia Corporation Berhad bought back 75,000
ordinary shares of MYR0.50 each for a total cash consideration of
MYR31,002.71.
The minimum price paid for each share purchased was MYR0.410 and the maximum
was MYR0.415.
After the purchase, the cumulative outstanding treasury shares have reached
58,296,400.
Pan Malaysia Corporation Berhad on April 20, 2006, bought back 140,000
ordinary shares of MYR0.50 each for a total cash consideration of
MYR56,435.13, 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 due to skyrocketing operating expenses. The
group has been selling assets to plug holes in its balance sheet. In the
fourth quarter of the fiscal year ending December 31, 2005, the Company
booked a net loss of MYR6.8 million.
TELEKOM MALAYSIA: MCAT Appeals Against Court's Decision
-------------------------------------------------------
Justice Dato' Adbul Wahab bin Patail, on March 20, 2006, dismissed with
costs MCAT GEN Sdn Bhd's application for interim injunction to restrain
Telekom Malaysia's wholly owned subsidiary, Celcom (Malaysia) Berhad from:
-- entering into, continuing and completing any reseller's
agreement with any third party or acting in a manner
which contravenes, contradicts and causes detriment to
the Plaintiff's alleged rights under its alleged
appointment of a reseller of Celcom's services; and
-- disclosing MCAT GEN's confidential information and
trade secrets to any third parties pending the disposal
of this suit.
In an update on April 24, 2006, Celcom disclosed that it has been served
with a Notice of Appeal filed by MCAT with the Court of Appeal against Judge
Patail's decision. No hearing date has yet been fixed for the Appeal.
The Troubled Company Reporter - Asia Pacific reported that on November 24,
2005, Celcom was served with a sealed copy of a Writ of Summons and
Statement of Claim for a suit filed by MCAT-Gen in the Kuala Lumpur High
Court.
In its Statement of Claim, MCAT has pleaded a cause of action for libel
against Celcom based on certain alleged press releases which appeared in the
New Straits Times, Utusan Malaysia, Harian Metro and Berita Harian. MCAT is
seeking, amongst others, damages for libel in the sum of MYR1.0 billion,
aggravated and exemplary damages, an injunction restraining Celcom from
further publishing any similar defamatory words, a public apology and costs.
About Telekom Malaysia
Headquartered in Kuala Lumpur, Malaysia, Telekom Malaysia
-- http://www.telekom.com.my/-- which once owned Malaysia's
telecommunications landscape, now faces growing competition. Telekom
Malaysia provides voice and data services through three primary operating
units: TelCo, its core telecom business; Telekom Multimedia, which develops
new media businesses; and ServiceCo, which oversees operational activities
such as fleet and property management. The company is also a leading
Internet Service Provider. Among Telekom Malaysia's subsidiaries are units
that publish phone directories and operate fiber optic networks. It sold
its cellular unit in 2002 but gained control of Celcom (Malaysia) in 2003.
The company also owns stakes in businesses in nine countries in Asia and
Africa. The Company had been locked up in disputes with different companies
in the past, which brought heavy losses to the firm. Some of its units are
also facing the possibility of being wound up by creditors.
TELEKOM MALAYSIA: Singapore's DBS Tapped to Arrange Spice Loan
--------------------------------------------------------------
Telekom Malaysia will back a US$265-million loan for Indian mobile-phone
operator Spice Communications, Dow Jones reports.
According to the report, the bulk of the loan will be used to fully settle
Spice Com's debts.
The Malaysia telco, which has acquired a 49% stake in Spice Com for US$178.8
million, will help Spice make loan payments trough its subsidiaries TM
International Sdn and BK Modi Group, The Financial Express says.
The loan, which will be arranged by Singapore's DBS Bank, consists of a
US$215 million portion denominated in Indian rupees, and a U.S. dollar
component of $50 million.
Dow Jones says that the foreign currency component has been priced at 100
basis points above the London Interbank Offered Rate for a term of one year.
The deal is likely to be signed late Thursday or early Friday.
About Telekom Malaysia
Headquartered in Kuala Lumpur, Malaysia, Telekom Malaysia
-- http://www.telekom.com.my/-- which once owned Malaysia's
telecommunications landscape, now faces growing competition. Telekom
Malaysia provides voice and data services through three primary operating
units: TelCo, its core telecom business; Telekom Multimedia, which develops
new media businesses; and ServiceCo, which oversees operational activities
such as fleet and property management. The company is also a leading
Internet Service Provider. Among Telekom Malaysia's subsidiaries are units
that publish phone directories and operate fiber optic networks. It sold
its cellular unit in 2002 but gained control of Celcom (Malaysia) in 2003.
The company also owns stakes in businesses in nine countries in Asia and
Africa. The Company had been locked up in disputes with different companies
in the past, which brought heavy losses to the firm. Some of its units are
also facing the possibility of being wound up by creditors.
WEMBLEY INDUSTRIES: SC Extends Time to Finalize Joint Venture
-------------------------------------------------------------
On April 24, 2006, the Securities Commission extended the time by which
Wembley Industries Holdings Berhad's subsidiary, Plaza Rakyat Sdn Bhd, must
sign a supplemental agreement with Dewan Bandaraya Kuala Lumpur in relation
to a joint venture agreement between the two parties. The extension is
until July 31, 2006.
The SC's approval is, however, subject to Wembley making an application for
the extension of time to complete the implementation of the Company's
restructuring scheme within 14 days from the date of the signing of the
joint venture agreement.
The Company's restructuring plan involves:
* a proposed capital reduction and consolidation;
* a proposed debt-restructuring; and
* a proposed rights issue.
About Wembley Industries Holdings Berhad
Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a
developer of commercial properties and investment holding. Its other
activities are the development of the inter-state bus and taxi terminal, the
retail podium and the budget hotel. The Company has been placed under the
Practice Note 4 category due to its tight cash flow position. On January 7,
2003, Malaysia's Foreign Investment Committee approved the Company's
regularization plan. Subsequently, on April 7, 2003, the FIC revised its
approval to include the possible participation of Daewoo Corporation, the
former turnkey contractor of Plaza Rakyat Project in the Company's Proposed
Debt Restructuring.
=====================
P H I L I P P I N E S
=====================
EXPORT AND INDUSTRY BANK: SEC OKs Capital Increase
--------------------------------------------------
The Securities and Exchange Commission had approved Export and Industry
Bank, Inc.'s application to increase its capital stock to PHP7.5 billion
from PHP2.2 billion, after a capital injection from its shareholders,
BusinessWorld Online reported on
April 24, 2006.
BusinessWorld said that the Commission also approved a reclassification of
the Bank's shares to boost capital.
Export and Industry Bank sent a letter to the Philippine Stock Exchange on
April 24, 2006, confirming the BusinessWorld Report. The letter states that
the Commission approved the Bank's application to divide its capital stock
worth PHP7.5 billion into 24 billion common shares at PHP0.25 par value,
totaling PHP6 billion, and 1.5 billion preferred shares at PHP1.00 per
share, totaling PHP1.5 billion. The Commission also approved the Bank's
reclassification of its common shares into common 'A' and common 'B' shares.
A full-text copy of Export and Industry Bank's disclosure statement is
available for free at:
http://bankrupt.com/misc/tcrap_exportbank042506.pdf
About ExportBank
Headquartered in Makati City, Manila, Export and Industry Bank --
http://exportbank.com.ph/-- has 50 branches and has revived former Urban
Bank unit under new names. Its principal activity is the provision of
commercial banking services such as deposit taking, loans and trade finance,
domestic and foreign fund transfers, treasury, foreign exchange and trust
services. The Bank is saddled with the PHP10 billion non-performing assets
it inherited from Urban Bank when the two banks merged in 2002. Under an
agreement dated December 29, 2005, the Philippine Deposit Insurance Corp.
will extend a yearly financial aid of PHP600 million to ExportBank.
LIGHT RAIL: IFC OKS Loan to Expand LRT 1
----------------------------------------
World Bank's International Finance Corporation gave its conditional
in-principle approval on an investment in the PHP19.27 billion expansion
project of Light Rail Transit Authority, ABS-CBN News reports.
According to Light Rail project manager Danilo S. Tolentino, they received
the approval from Christian Delvoie, IFC director for infrastructure
projects in Asia and the Pacific, last month, on the condition that the
project be included in the Philippines' Medium-Term Public Investment Plan
from 2004 to 2010, and in the annual General Appropriation Act. If the
project is not included in the public investment plan, it may be suspended.
The Manila Times says Light Rail may seek budget aid from the Department of
Transportation and Communications for its civil works needs. At present,
private funding is supporting the construction of the extension, as well as
maintenance operations and the electromechanical system, which is slated to
cost up to PHP22.94 billion alone. The LRT 1 expansion project is slated to
be offered for bidding in July, Mr. Tolentino added.
Light Rail administrator Melquiades Robles said that the project is expected
to start operations three years after construction.
The Light Rail Transit Authority -- http://www.lrta.gov.ph/-- is a wholly
owned government corporation created on July 12, 1980, under Executive Order
No. 603, as amended by EO No. 830 dated September 1982, and EO No. 210 dated
July 7, 1987. Light Rail is primarily responsible for the construction,
operation, maintenance or lease of light rail transit systems in the
Philippines. The LRTA is recognized as the premiere rail transit in the
country providing reliable, efficient, dependable, and environment-friendly
mass rail services to all residents of Metro Manila. However, the Company
has had difficulty in repaying its debts, which amounted to over PHP1
billion as of 2004.
PHILIPPINE NATIONAL BANK: Secures Approval for Debt Issue
---------------------------------------------------------
BusinessWorld Online published an article on April 24, 2006, saying monetary
authorities had approved the debt issue of Development Bank of the
Philippines and Philippine National Bank in a fresh wave of capital buildup
for the banking sector.
National Bank furnished the Philippine Stock Exchange with a statement that
same day, stating it has secured approval for a proposed issuance of PHP5.19
billion in U.S.-dollar denominated unsecured notes, which qualifies as Lower
Tier 2 capital, from the Monetary Board.
About Philippine National Bank
Headquartered in Pasay City, Philippines, Philippine National Bank --
http://www.pnb.com.ph/-- is the country's first universal bank established
on July 22, 1916. Its primary mandate was to provide financial services to
the agricultural and industrial sector, and support the government's
economic development efforts. The privatization of PNB began when it
offered 30% of its stocks to the public on June 21, 1989. The Lucio Tan
Group is the single biggest stockholder of the Bank. The Bank's core
business consists of lending and deposit-taking activities from corporate,
middle market and retail customers, as well as various government units. It
also engages in bill discounting, fund transfers, remittance servicing,
foreign exchange dealings, retail banking, trust services, treasury
operations and trade finance.
The Bank is undergoing a five-year rehabilitation exercise until 2007. In
line with a restructuring agreement executed in 2002, the government and
Lucio Tan agreed to jointly sell at least 67% of the bank's equity. Mr. Tan
acquired some of the Government's shares in PNB, in exchange for emergency
aid to PNB after the Bank suffered huge losses. PNB is considered to be
well ahead of its rehabilitation as it booked net profits for four straight
years, due to its strong overseas remittance business and the sale of
non-performing assets. In 2005, the Bank's net profit rose to PHP610
million, about 73% more than the PHP353.2 million profit it reported for
2004.
SAN MIGUEL: S&P Affirms BB Foreign Currency Rating
--------------------------------------------------
On April 24, 2006, Standard & Poor's Ratings Services revised the outlook on
San Miguel Corporation to stable from negative. Standard & Poor's also
affirmed its 'BB' foreign currency corporate credit rating on the company.
The rating agency also assigned its 'B' rating to the proposed five-year
benchmark non-callable, non-cumulative, non-voting, perpetual preferred
shares to be issued by San Miguel subsidiary San Miguel Capital Funding
Limited. San Miguel Corporation will not guarantee the dividends or any
other payments relating to the proposed preferred shares.
According to Standard & Poor's credit analyst Greg Pau, the outlook revision
reflects their opinion that the Company would be less aggressive in future
takeovers, and reducing the possibility of further deterioration in its
financial risk profile.
San Miguel's rating is supported by its dominant position in the domestic
food and beverage industry, increased diversity through overseas operations,
and favorable cost structure. These advantages are, however, offset by the
Company's aggressive financial profile, although its capital spending is
expected to moderate. Its high operating risks, weaker overseas market
positions, and earnings
exposure to volatile raw material costs and supply tempered the rating.
San Miguel Corporation will use the proceeds from the preferred shares issue
to purchase a subordinated debt to be issued by the Company, in order to pay
an outstanding PHP billion debt.
The Company's liquidity is weak, as its cash on hand of PHP20.9 billion was
not enough to pay around PHP41 billion of debt due in 12 months. Liquidity
concerns, however, are expected to lessen upon completion
of the perpetual preferred shares issue.
Mr. Pau adds that San Miguel's stabke outlook indicates that Standard &
Poors thinks the Company can maintain its dominant position in the alcoholic
beverage market, while benefiting from increased foreign currency earnings
from its premium Australian brands.
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
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CONTINENTAL CHEMICAL: Moody's Downgrades Outlook on B1 Rating
-------------------------------------------------------------
Moody's Investors Service has changed the outlook for Continental Chemical
Holdings Ltd's B1 corporate family rating from stable to negative. The
change in rating outlook reflects Moody's concern over the company's
relatively weak liquidity profile.
"Continental's ability to manage liquidity in 2006-2007 will be crucial to
its rating. Although we expect its earnings and cashflows to exhibit some
stability this year, funding for its plant expansion project in China is not
yet in place, which gives rise to a certain level of financing risk, given
the company's commitment to proceed with the project" says Helen Li, Moody's
lead analyst for the Company.
"In addition, the company's heavy reliance on short-term bank facilities --
mainly for its working capital requirements -- creates additional concern
about its liquidity management," Moody's Mr. Li comments.
"This, coupled with its constrained financial flexibility and limited
alternative liquidity arrangements, may impose downward pressure on its
existing rating."
On the other hand, Moody's understands that Continental is in the process of
establishing a US$75 million syndication loan and US$30 million equity
injection to finance the expansion project in China. When this is
completed, it will help improve to some extent the company's financial and
liquidity position.
Moody's says that the rating continues to reflect the Continental group's
sound market position in the phthalic anhydride and plasticiser markets, the
degree of vertical integration evident in its production process,
management's experience in implementing capacity expansions and the stable
outlook -- over the next 12 months -- for the petrochemical sector's
fundamentals.
At the same time, the rating considers the cyclical and competitive nature
of Continental's markets, as well as its relatively small operating scale,
high financial leverage, acquisitive strategy, financing and execution risks
related to its planned PA/plasticiser plant in China, high working capital
requirements and relatively weak liquidity profile.
Moody's says the rating could be affirmed if Continental finalizes its
financing plan over the coming months. In addition, terming out the bank
credit facilities would also be positive for Continental's credit profile.
Upward rating movement could occur if Continental:
-- demonstrated an ability to commission the China
expansion project as planned;
-- strengthened its liquidity profile; or
-- was successful in delivering its business plan and
presenting solid cashflows that resulted in its RCF/Debt
ratio improving to 20%-30% and EBITDA/Interest ratio to
5.0x-6.0x on a sustainable basis.
On the other hand, the rating may experience a downward trend if the
Company:
-- experienced significant deterioration in industry
conditions over the next two years;
-- faced major disappointments in implementing its
expansion project in China; or
-- undertook material debt-funded acquisitions that led to
a decline in its RCF/Debt ratio to below 10% and
EBITDA/interest to below 2.5x over the next 2-3 years.
In addition, failure to finalize the financing plan over
the coming months will pressure the rating.
Continental Chemical Holdings Ltd, headquartered in Singapore, is a chemical
company specializing in intermediate chemicals and specialty resin products.
It has an annual production capacity of 290,000 tons, which comprises
plasticizers, phthalic anhydrides, specialty resins and solvents.
CREATIVE RENO: Abwin Initiates Bankruptcy Action
------------------------------------------------
Abwin Private Limited, through Sankar Ow & Partners, filed an application
for bankruptcy order against Creative Reno House Pte Limited.
The Application was lodged on April 13, 2006, before Assistant Registrar
David Lee in Registrar Chamber 4 at the High Court of the Republic of
Singapore.
Contact: Hoh Juat Jong
Registrar
Supreme Court, Singapore
LINDETEVES-JACOBERG: Updates Mandatory Cash Offer
-------------------------------------------------
On March 15, 2006, CIMB-GK Securities Pte Limited launched a mandatory
conditional cash offer for and on behalf of ATB Austia Antriebstechnik AG
for all the remaining ordinary shares in the capital of Lindeteves-Jacoberg
Limited in issue not already owned, controlled or agreed to be acquired by
ATB and parties acting in concert with it, the Troubled Company Reporter -
Asia Pacific reported.
Pursuant to Rule 12.1 of the Singapore Code on Takeovers and Mergers,
CIMB-GK disclosed the dealings in the Shares made on April 24, 2006, on
behalf of ATB.
Total number of Shares acquired by ATB 187,000
Approximate percentage of the enlarged
issued and paid up share capital of
the Company 0.04%
Price paid per Share (excluding brokerage
commission, clearing fees and GST) SG$0.165
Taking into account the acquisition and the valid acceptances received by
ATB up to April 10, 2006, of 34,000 Shares, ATB and the parties acting or
deemed to be acting in concert with ATB owned, controlled or had agreed to
acquire an aggregate of 230,417,831 Shares, representing approximately
46.44% of the enlarged issued and paid-up share capital of the Company.
About Lindeteves-Jacoberg Limited
Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was incorporated
in Singapore on December 11, 1947 as part of a Dutch international trading
group. Its principal activities consist of investment holding, provision of
warehousing and rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The Company is undergoing a debt restructuring exercise by way of a Scheme
of Arrangement with its creditors.
RUDIANA CATERING: Faces Bankruptcy Proceedings
----------------------------------------------
Abwin Private Limited has on, April 13, 2006, filed an application for
bankruptcy order against Rudiana Catering Services Pte Limited.
The Application was lodged before the Assistant Registrar David Lee in
Registrar Chamber 4 at the High Court of the Republic of Singapore through
Mark Han Advocates & Solicitors.
Contact: Hoh Juat Jong
Registrar
Supreme Court, Singapore
SAPPHIRE CORPORATION: Details Debt Conversion Exercise
------------------------------------------------------
On April 24, 2006, Sapphire Corporation successfully negotiated with
Caravelle Construction & Development Pte Limited and certain trade creditors
relating to debt conversion.
The Company had entered into bilateral debt conversion agreements with the
parties for the conversion of an aggregate of SG$595,613.74 and SG$85,500 of
liabilities owed to them by Company and Caravelle, respectively, into an
aggregate of 59,561,374 amd 8,550,000 new shares at a conversion price of
SG$0.01 per share. The conversion price is equivalent to the weighted
average trading price of the Shares on the Singapore Stock Exchange -
Dealing and Automated Quotation System, or SGX-SESDAQ, prior to the
execution of the relevant debt conversion agreements with such creditors.
The approval-in-principle has been granted by the Singapore Exchange
Securities Trading Limited for the issue of, admission to and the listing
and quotation of the Best efforts Conversion Shares on the SGX-SESDAQ. The
approval granted and the listing and quotation of the Best Efforts
conversion Shares are in no way reflective of the merits of the Company and
its subsidiaries, the Best Efforts Debt Conversion Exercise, the Best
Efforts Debt Conversion Shares or the shares of the Company.
An aggregate of 68,111,374 new Shares were allotted and issued pursuant to
the bilateral debt conversion agreements entered into out of the share issue
mandate approved by shareholders in the Company's Annual General Meeting
held on April 18, 2005.
About Sapphire Corporation Limited
Incorporated in Singapore on November 26, 1985, Sapphire Corporation
Limited, formerly IRE Corporation Limited
-- http://www.ire.com.sg/-- is engaged in building maintenance and
upgrading; the supply and application of architectural finishing products
and related services; and building construction and formwork design
engineering. Sapphire has engaged in various debt and equity restructuring
exercises in order to improve its cash flow and repay its loans.
SINPON PTE: Set to Pay Creditors' Dividend Today
------------------------------------------------
The unsecured creditors of Sinpon Pte Limited will receive a first and final
dividend of 87.252% today, April 26, 2006, from Liquidators Lo Wei Min and
Lo Wei Shih.
As reported by Troubled Company Reporter - Asia pacific on
April 7, 2006, the Company's creditors were required to lodge proofs of
their claims by April 17 in order to benefit from the dividend payment.
Contact: Lo Wei Min
Lo Wei Shih
c/o Lo Hock Ling & Co
101-A Upper Cross Street
#11-22 People's Park Centre
Singapore 258358
SPEEDHELM PTE: Intends to Pay Dividend on April 28
--------------------------------------------------
Speedhelm Pte Limited, a company in compulsory liquidation, will distribute
its first and final divided to creditors on April 28, 2006, at the
liquidators' address.
As reported by the Troubled Company Reporter - Asia Pacific on December 28,
2005, Speedhelm fixed January 6, 2006, as the last day for creditors to
prove their claims to share in the Company's dividend distribution.
Contact: Gui Kim Young
Lim Siong Sheng
Liquidators
c/o Gui Kim Young & Company
415B Jalan Besar
Singapore 209016
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T H A I L A N D
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NATION MULTIMEDIA: Will Reduce Operating Cost to Stop Net Loss
--------------------------------------------------------------
Nation Multimedia Group Plc will resort to reducing its operating costs and
selling unprofitable assets if only to return to profitability.
The publisher of both The Nation, an English language daily and Krungtep
Turakij, a business daily, is planning lay-offs as part of the program to
cut its operating costs after suffering a net loss of THB332 million in
2005, compared to a net profit that registered only THB113 million, The
Bangkok Post reports.
Adisak Limprungpatanakij, president of NMG subsidiary Nation Broadcasting
Corporation, acknowledged that the unit would face retrenchments through an
early retirement program to help reduce expenses by 35% to 40%, The Bangkok
Post adds.
Aside from workers lay-offs, mostly from the broadcasting department, the
Company is considering sales of its non-core assets, like lands.
NMG Chairman Thanachai Theerapatvong stressed that the management's main
target this year is to return to profitability and pay dividends to its
shareholders.
Unmet revenues the past several years, delays in regulatory reforms and a
capital intensive television format are the main reasons sighted that hurt
the growth potential of the Nation Channel, launched in 2004 as a 24-hour
news channel.
Suthichai Yoon, a director of the company who supervises the broadcasting
business, said that the 24-hour television news service required high
investment in terms of equipment. As a result, the business has incurred
losses. But, he said that to cut losses, Nation Channel would shuffle its
programming to focus more on news programs rather than on around-the-clock
news reporting.
NMG's television operations lost THB87 million in 2005, up from losses of
THB17 million in 2004. The group's core print and advertising operations
lost THB317 million in 2005, compared with THB108 million in profits the
previous year.
About Nation Multimedia
Headquartered in Bangna Trad Road, Bangkok, Nation Multimedia Group Public
Company Limited's -- http://www.nationgroup.com/-- principal activities
are the publication and distribution of magazines and newspapers,
importation and production of children's books for education, television and
radio program producer and the provision of advertising services and on-line
information and news services. Printing materials and advertising accounted
for 95% of 2002 revenues; advertising media through television, 4% and
others, 1%.
NEW PLUS KNITTING: Securities Excluded from Index Calculation
-------------------------------------------------------------
The Stock Exchange Commission of Thailand posted Suspension -- SP -- signs
on the securities of New Plus Knitting Public Company Ltd effective from the
first trading session of March 2, 2006, due to the Company's failure to
submit its financial statements for the period ending December 31, 2005, by
the deadline specified by SET.
The SET will exclude the stocks of New Plus Knitting from the Index
Calculation starting May 9, 2006, until the Company's stock resume trading.
About the Company
New Plus Knitting Public Company Limited's principal activity is the
manufacturing and distribution of textiles and clothing for domestic and
export sale. Products include stockings, socks, ladies underwear, ladies
pajamas, shorts, pants, skirt, shirts and dolls. The Group markets its
products in Thailand and other countries in Asia, as well as in Europe, such
as Ireland, England and Germany. It operates solely in the domestic market.
The Company has been saddled by a series of net losses since 2002, the
highest of which is a THB79.25 million net loss in 2004. In the same year,
the Company fell into a capital deficit. The Company is currently
classified under the REHABCO, or Companies Under Rehabilitation, Sector.
THAI AIRWAYS: High Fuel Prices Increase Fuel Surcharge
------------------------------------------------------
As jet fuel prices soar to US$90 a barrel, international flights of the Thai
Airways International may soon see an increase in its fuel surcharge
sometime in mid-May or early in June, Bangkok Post says.
The flag carrier is planning to increase its standard fuel surcharge
currently priced at US$25 for its short-haul flights and US$50 for its
intercontinental services. The increase will be the first since August
2005.
However, Bangkok Post reveals, the airline has yet to decide on the new
rates. Thai Airway's executive vice-president for commercial affairs,
Vasing Kittikul assured that it would be consistent with those of competing
carriers including regional rivals such as Singapore Airlines and Cathay
Pacific.
The Post relates that the US$35 fuel surcharge increase on flights to Japan
had already been resolved and will be effective on May 1, 2006. The new
rate is at par with what is imposed by Japan Airlines and All Nippon
Airlines.
Mr. Kittikul said that Thai Airways will indicate a new fuel surcharge
within the range of US$57 to US$60 on its main European routes. Flights to
Frankfurt, London and Paris would soon implement the increase to the levels
adopted by the national carriers of those countries.
Mr. Kittikul assures passengers that the airlines will not pass the entire
rising fuel-cost burden to them, stating that 50% of the incremental fuel
cost burden will be passed to the tickets.
The flag carrier however intends to maintain its THB600 per domestic flight
in keeping with the guidelines from the Transport Ministry. No significant
impact on Thai Airways' balance sheet is expected since the revenue from
domestic services represents only 10% of the airline's total receipts.
About the Company
Headquartered in Bangkok, Thailand, Thai Airways International Public
Company Limited -- http://www.thaiairways.com/-- is engaged in the
operation of domestic and international air transportation service. This
includes support services such as freight forwarding, warehousing, on-line
ticketing, hotel and restaurant operations, fuel storage and filling for
aircraft at the airport Air catering and fuel pipeline transportation. The
Group also provides services in other type of transportation in connection
with the information technology services, distributes computer services,
flight reservation and other travel-related services. The company underwent
a major business restructuring last year after it plunged to a loss of
THB4.78 billion in the April-June period, canceling or reducing flights to
unprofitable routes, and adding more high-yield routes. It also implemented
a more proactive marketing strategy with a focus on corporate customers, in
a bid to improve its passenger yield
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Francis Chicano, Ma. Cristina Pernites-Lao,
Erica Fernando, Reiza Dejito, Freya Natasha Fernandez, and Peter
A. Chapman, Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9482.
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*** End of Transmission ***