/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060504.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, May 4, 2006, Vol. 9, No. 088 Headlines A U S T R A L I A & N E W Z E A L A N D ADVISA HOLDINGS: Faces Liquidation Proceedings ALEPPO QUALITY: Intends to Declare Dividend to Creditors ALL SYSTEMS TECHNOLOGY: Inability to Pay Debts Prompts Wind-up ARTHUR SARROFF: Members Convene to Get Liquidator's Report AUSTRALIAN & NEW ZEALAND HEALTH: Winds Up Business AWB LIMITED: To Investigate Quality Complaints on India Import BEAR ESSENTIALS: Names Official Liquidators CARMICHAEL TRANSPORT: Liquidation Hearing Set on May 9 COMDEK LIMITED: KordaMentha Reports on Firm's Insolvency D&D SECURITY: To Declare Dividend on May 10 D&E TUCKER: Members Decide to Shut Down Business EVANS & TATE: Appoints Chris Malcolm as Exec. General Manager FEDERATION 2000: Supreme Court Issues Wind-up Order JAS SALES: Members Opt for Liquidation KELZAC CONSTRUCTION: Liquidation Petition Hearing Set on May 8 KHL INVESTMENTS: Liquidator to Present Wind-up Report Today LESSEY INVESTMENTS: Placed Under Voluntary Liquidation MDH ROOFONG: Discontinues Business Operations PANEL TECH (AUSTRALIA): Receivers Step Aside PENINSULAR BAY: Members Opt for Voluntary Liquidation P.M.A.G. PTY: Downey to Explain Wind-up to Members and Creditors QANTAS AIRWAYS: Looking at Freight Business, CFO Says QUALITY DECORATING: Court Set to Hear Liquidation on May 15 SHARK'S SCAFFOLDING: Enters Voluntary Liquidation SIMPLY INSURANCE: S&P 'B' Rating Remains On CreditWatch Positive SINGER FIRE SYSTEMS: Court to Hear Liquidation Proceedings SOLIMAN & SONS: Appoints Official Receivers STURNI MOTORS: To Pay Dividend to Creditors on May 7 TRIBUNE HOLDINGS: To Distribute Proceeds of Assets Disposal VACATION CORPORATION: Members Review Wind-up Report C H I N A & H O N G K O N G ALBERTO-CULVER LIMITED: Liquidator to Present Wind-up Report C.B.M. PROPERTIES: To Receive Proofs of Claims Until May 30 CHARTER LANE: Liquidators Cease to Act for the Company CITISTATE DEVELOPMENT: Court Orders Winding Up EAGLE ZONE: To Hold Final General Meeting on May 15 ELRA LIMITED: Appoints Official Liquidator GRAND HIGH: Members' Final Meeting Scheduled on May 15 HOGENT INTERNATIONAL: Final Meetings Slated for June 2 JIANGXI COPPER: Xinhua Revises Rating Outlook to Negative KA NGAI: Creditors Meeting Fixed on May 17 KWONG YENG: Mee and Yee Cease to Act as Joint Liquidators MASTER BRIGHT: Liquidator to Report on Wind-up MOGU INTERNATIONAL: Creditors Must Prove Debts by May 19 MORRISON INVESTMENT: Names Official Liquidator NIPPON ASIA: Delays FY/2005 Results Announcement RAMS CITY: Members' Final Meeting Scheduled for May 30 SOUTH AUSTRALIAN FINANCE: Members Final Meeting Set on May 30 TING FUNG: Members to Receive Liquidator's Wind-up Account TITAN PETROCHEMICALS: S&P Revises Rating Outlook to Negative UNITED FASHION: Liquidator to Present Wind-up Report WINSON KNITTING: Winding Up Hearing Set on May 24 WINSWAY REALTY: Liquidator Ceases to Act for Company WORLDWIDE DREAMS: Members Resolve to Wind Up Firm I N D I A DUNLOP INDIA: Unions Lodge Payment Demands to Ruia Group INDIA CEMENTS: Launches US$75-Million Covertible Bonds I N D O N E S I A GARUDA INDONESIA: Imposes Fuel Surcharge To Cover Oil Costs PERTAMINA: Saudi Aramco Mulls 400,000 Barrels Per Day Refinery J A P A N MITSUBISHI MOTORS: U.S. Unit Sales Rises 17.5% in April NEC ELECTRONICS: To Produce LSI Chips for Nintendo K O R E A HYUNDAI MOTOR: April Sales Slip 12.8% to 215,037 Units HYUNDAI MOTOR: To Build Czech Plant as Planned M A L A Y S I A AVANGARDE RESOURCES: Delays 2005 Financial Report Issue AVANGARDE RESOURCES: To Hold 6th AGM on June 6 CHG INDUSTRIES: To Appeal SC's Rejection of Restructuring Scheme CYGAL BERHAD: SC Grants More Time to Implement Restructuring FORMIS MALAYSIA: Acquisition Plan Awaits SC's Approval KIG GLASS: Has Two Months to Submit Regularization Proposal KRAMAT TIN: Seeks Regulatory Approval of Proposed Waiver LITYAN HOLDINGS: Awaits Restructuring Approvals POLYMATE HOLDINGS: Posts Default Status Update PROTON HOLDINGS: May Unveil Recovery Plan by Year-end PROTON HOLDINGS: Bags Reader's Digest Trusted Brand Award WEMBLEY INDUSTRIES: Updates on Debt Restructuring Progress P H I L I P P I N E S NATIONAL POWER: Saves PHP14 Billion in 2005 on Cost Cuts NATIONAL POWER: To Lessen Use of Oil-Fired Power Plants PHILIPPINE AIRLINES: To Purchase Additional Aircraft RADIO PHILIPPINES: Seeks to Restructure PHP5-Billion Debt * 100,000 Plan Holders May Not Be Able to Enroll This Year S I N G A P O R E ASIA BIO SYSTEMS: Court Issues Wind-up Order CREATIVE TECHNOLOGY: One-time Charges Drive US$114-Mln 3Q Loss FLEXTRONICS INTERNATIONAL: Books Better Results in FY05-06 GREEN LIFE: Court Declares Bankruptcy HNR TECHNOLOGY: Falls Into Bankruptcy WINTEK DISPLAY: Creditors' Proofs of Debts Due on May 29 T H A I L A N D NAKORNTHAI STRIP: Submits Recapitalization Plan to SET THAI AIRWAYS: To Implement Fuel Surcharge Increase on June 1 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ADVISA HOLDINGS: Faces Liquidation Proceedings ---------------------------------------------- The High Court of Dunedin, on February 28, 2006, received an application from James Chapman Eide, Anja Klinkert and Francis Edwin to put Advisa Holdings Ltd into liquidation. The application will be heard before the Court on May 5, 2006, at 10:00 a.m. Contact: Anja Klinkert Anja Klinkert Lawyers Level 2, 83 Murray Place Dunedin, New Zealand ALEPPO QUALITY: Intends to Declare Dividend to Creditors -------------------------------------------------------- Aleppo Quality Pty Limited will declare its first and final dividend on May 10, 2006. The Company's creditors who were unable to prove their claims will be excluded from sharing in the dividend distribution. Contact: C. P. White Liquidator HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000, Australia ALL SYSTEMS TECHNOLOGY: Inability to Pay Debts Prompts Wind-up -------------------------------------------------------------- At a meeting of the members of All Systems Technology Pty Limited on March 21, 2006, it was determined that as the Company is unable to pay its debts as they fall due, a voluntary wind-up of its business operations is appropriate and necessary. Contact: Robert Moodie Liquidator c/o Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia ARTHUR SARROFF: Members Convene to Get Liquidator's Report ---------------------------------------------------------- A final meeting of the members of Arthur Sarroff Pty Limited will be held today, May 4, 2006. At the meeting, members will get an account of the manner of the Company's wind-up and property disposal from Liquidator R. M. Sutherland. Contact: R. M. Sutherland Liquidator Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: (02) 9233 2111 Fax: (02) 9233 2144 AUSTRALIAN & NEW ZEALAND HEALTH: Winds Up Business -------------------------------------------------- The members of Australian & New Zealand Health Management Network Limited held a general meeting on March 17, 2006, and decided to wind up the Company's operations voluntarily. M. C. Smith was consequently appointed as liquidator. Contact: M. C. Smith Liquidator c/o McGrathNicol+Partners Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone: (02) 9338 2666 Web site: http://www.mcgrathnicol.com.au/ AWB LIMITED: To Investigate Quality Complaints on India Import -------------------------------------------------------------- AWB Limited sent a high-level delegation to India after Indian authorities complained that the Company's wheat import did not meet prescribed norms, Reuters reports. According to Reuters, AWB's 50,000-tonne wheat shipment allegedly contained high levels of pesticides. Financial Express recounts that the Indian Government has awarded a 500,000-tonne wheat import contract to AWB in March 2006 to shore up its buffer stocks. The wheat shipment in question is the first delivery under the contract. Financial Express adds that, as of April 1, 2006, the Indian Government's buffer stocks were at two million tonnes as against the four-million-tonne norm. India's agriculture minister, Sharad Pawar, had said last week that the country would not compromise on quality parameters for wheat imports, Financial Express relates. India has also decided to import three million tonnes of wheat in addition to the 500,000 tonnes already contracted. 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. BEAR ESSENTIALS: Names Official Liquidators ------------------------------------------- Jason Bettles and Susan Carter were, on March 21, 2006, appointed as liquidators in the winding up of Bear Essentials Queensland Pty Limited. Contact: Jason Bettles Susan Carter Liquidators Worrells Solvency & Forensic Accountants Level 6, Fifty Cavill Avenue Surfers Paradise, Queensland Australia CARMICHAEL TRANSPORT: Liquidation Hearing Set on May 9 ------------------------------------------------------ The High Court of Wanganui has, on March 23, 2006, received an application to have Carmichael Transport 2000 Ltd liquidated. The application, which was lodged by the Commissioner of Inland Revenue, will be heard before the Court on May 9, 2006, at 10:00 a.m. Parties other than the defendant Company who wishes to appear on the hearing are required to file an appearance on May 5, 2006. Contact: Ellen-Marie Carpenter Solicitor for the Plaintiff Technical and Legal Support Group Napier Service Centre, Level 4 Library Bldg, 22 Station St Napier, New Zealand Telephone: (06) 974 6315 Facsimile: (06) 974 6212 COMDEK LIMITED: KordaMentha Reports on Firm's Insolvency -------------------------------------------------------- In August 2005, the Australian Securities and Investments Commission questioned Comdek Limited's solvency. The ASIC's insolvency investigators -- National Insolvency Co-ordination Unit -- subsequently launched a probe into the Company. ASIC later questioned the Company about negative net assets, a AU$2.5 million working capital deficiency at June 30, 2005, and a build-up of trade creditors. The West Australian recounts that Comdek fell into difficulties in the second quarter of 2005 after striking a deal that saw the backdoor listing of Tasmanian group eSat, which installed satellite dishes in remote properties under a Federal Government-funded program to take broadband Internet into rural Australia. The backers, creditors and investors who bought into the Company before its shares were suspended from trading in July 2005 are facing the loss of most of their investment. The ASIC probe was put on hold in February 2006 when the Comdek board of directors called in insolvency firm KordaMentha after a major secured creditor, Leederville property developer Kim Morrison, appointed a receiver -- Sheridans insolvency accountant Jennifer Low -- for the Company. Fending Off Liquidation The West Australian says that Mr. Morrison was to have been a white knight, rescuing the group from a financial crisis that became public in mid-2005 when Comdek had to fend off attempts by peeved creditors to have it put into liquidation through Supreme Court winding-up procedures. Former deputy premier Hendy Cowan, also Comdek's chairman, and a former National Party leader and deputy premier in Richard Court's coalition, and his fellow directors are believed to have attracted significant support from rural West Australia for the Company's float in 2003. KordaMentha's Creditor Report According to WestBusiness, Comdek administrator Brian McMaster, of KordaMentha, has told creditors that there was strong evidence that the Company traded while insolvent and was under water from at least March 2005. WestBusiness cites Mr. McMaster as stating that his views about the Company's insolvency were based on its financial history, payment arrangements with creditors, e-mails between directors highlighting its financial circumstances and cash flow forecasts. Mr. McMaster's investigations indicated a potential legal claim against Comdek within the range of AU$3 million to AU$4 million. Mr. McMaster sent his report to Comdek creditors last week ahead of a planned creditors meeting on Friday that will vote on whether the Company should be put into liquidation or restructured. Directors Can Escape Further Scrutiny WestBusiness notes that Mr. McMaster's insolvency claims and Comdek's directors might escape further investigation because four separate groups, including Perth-based group Monster Capital and Trident Capital, have tabled restructuring proposals for the shell of the sharemarket-listed company. In his creditors report, Mr. McMaster recommended that creditors back a deed of company arrangement with Trident that would dilute existing shareholders down to less than 5% of the Company and give unsecured creditors a return of just AU$0.02 to AU$0.09 in the dollar. Mr. McMaster had warned creditors that putting Comdek into liquidation was not likely to produce any significant returns because there were no assets available and pursuing recovery actions, which included potential insolvent trading claims against directors, might be costly and risky. The ASIC says that it would await a report from KordaMentha on any potential breaches of the Corporation Act before making a decision on whether it would mount an investigation of Comdek's affair. D&D SECURITY: To Declare Dividend on May 10 ------------------------------------------- D&D Security Pty Limited will declare its first and final priority dividend on May 10, 2006, to the exclusion of creditors who were unable to prove their claims. Contact: John Park Liquidator KordaMentha (Queensland) 22 Market Street, Brisbane Queensland 4000, Australia Telephone: (07) 3225 4000 Fax: (07) 3225 4999 D&E TUCKER: Members Decide to Shut Down Business ------------------------------------------------ At a general meeting on March 17, 2006, the members of D&E Tucker Development Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets divestment. Mark Christopher Hall and Timothy James Clifton were appointed as joint and several liquidators. Contact: Timothy J. Clifton Mark C. Hall Liquidators Level 10, 26 Flinders Street Adelaide, South Australia Australia EVANS & TATE: Appoints Chris Malcolm as Exec. General Manager ------------------------------------------------------------- Evans & Tate Limited has appointed Chris Malcolm as its new Executive General Manager - Operations. Mr. Malcolm was previously the General Manager Supply Chain Planning and Improvement for Southcorp Wines Limited, reportedly Australia's largest premium wine company. In his previous role, Mr. Malcolm was responsible for the annual wine production in Australia, France and New Zealand of over 21 million cases and sales distribution to approximately 9,000 customers in over 100 countries. Mr. Malcolm had also worked in logistics and supply chain management with Southcorp and Mobil Oil. Evans & Tate believes that Mr. Malcolm's "proven track record and experience in wine industry logistics will be of enormous benefit to Evans & Tate as [it] seek[s] to compete successfully in the premium wine market." Mr. Malcolm will report directly to Evans & Tate's chief executive officer, Martin Johnson. About Evans & Tate Headquartered in Wembley, Western Australia, Evans & Tate Limited -- http://www.etw.com.au/-- is an Australian wine company listed on the Australian Stock Exchange. The primary businesses of the Evans & Tate Wine Group are the production, marketing and distribution of a number of branded, exclusive labeled and unbranded wines; contract winemaking; wine trading; viticultural services; and wine tourism through its Visitor Centers. In June 2005, rumors began brewing that the wine maker was carrying total liabilities of AU$127.5 million, of which AU$102.5 million was interest-bearing debt. A few days later, Evans & Tate admitted that it had been coordinating with insolvency firm KordaMentha on the recommendation of its major creditor, ANZ Banking Group Limited. It had appointed KordaMentha's 333 Performance Management "to improve its forecasting, planning and business efficiencies." Evans & Tate also admitted that it was cash flow negative and had sought an AU$8.5-million capital injection from ANZ Bank. The firm further said that it would cut the value of its wine inventories by AU$8 million to AU$10 million, offload stock at a discount, and cut the carrying value of certain wineries. In July 2005, Evans & Tate has secured an additional AU$10 million in short- term working capital from ANZ. In January 2006, Evans & Tate announced that it was selling off its Griffith Winery to boost capital, but not without borrowing another AU$12 million. The Company is still seeking for buyers. In February 2006, Evans & Tate shed 20 jobs as part of a restructure that it said was expected to result in cost savings of about AU$2.5 million a year. FEDERATION 2000: Supreme Court Issues Wind-up Order --------------------------------------------------- The Supreme Court of New South Wales, on March 20, 2006, ordered the wind-up of Federation 2000 Pty Limited, and nominated Steven Nicols as official liquidator. Contact: Steven Nicols Liquidator Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia JAS SALES: Members Opt for Liquidation -------------------------------------- At a general meeting JAS Sales Pty Limited on March 20, 2006, members agreed that it is in the Company's best interests to liquidate its operations. Contact: Christopher John Vincent Liquidator Suites 305-7, The Trust Building 155 King Street, Sydney New South Wales 2000, Australia KELZAC CONSTRUCTION: Liquidation Petition Hearing Set on May 8 --------------------------------------------------------------- The Commissioner of Inland Revenue, on March 31, 2006, filed a petition before the High Court of Wellington to put Kelzac Construction Ltd into liquidation. The Petition will be heard before the Court on May 8, 2006, at 10:00 a.m. Parties other than the defendant Company who wish to appear on the hearing are required to file an appearance on or before May 4, 2006. Contact: Philip Hugh Brian Latimer Solicitor for the Plaintiff Technical and Legal Support Group Wellington Service Centre, 1/F New Zealand Post House 7-27 Waterloo Quay, Wellington New Zealand Telephone: (04) 890 1028 Facsimile: (04) 890 0009 KHL INVESTMENTS: Liquidator to Present Wind-up Report Today ----------------------------------------------------------- Members of KHL Investments Pty Limited will hold a final meeting today, May 4, 2006. At the meeting, members will receive Liquidator P. G. Yates' final account showing how the Company was wound up and its property disposed of. Contact: P. G. Yates Liquidator c/o Deloitte Touche Tohmatsu 225 George Street, Sydney New South Wales 2000, Australia LESSEY INVESTMENTS: Placed Under Voluntary Liquidation ------------------------------------------------------ Members of Lessey Investments Pty Limited held a general meeting on March 17, 2006, and agreed to: -- voluntarily wind up the Company's business operations; and -- appoint Peter Leonard Whiteman as liquidator for the wind- up. Contact: Peter L. Whiteman Liquidator Thomas Davis & Company 68 Pitt Street, Sydney New South Wales 2000, Australia MDH ROOFONG: Discontinues Business Operations --------------------------------------------- Members of MDH Roofing Pty Limited, on March 20, 2006, agreed to voluntarily wind up the Company's operations. In this regard, Hugh C. Thomas was appointed as liquidator at a creditors' meeting held later that day. Contact: Hugh C. Thomas Liquidator BKR Walker Wayland 8th Floor, 55 Hunter Street Sydney, Australia PANEL TECH (AUSTRALIA): Receivers Step Aside -------------------------------------------- Alan Hayes and Neil Geoffrey Singleton ceased to act as receivers and managers of the property, assets and undertakings of Panel Tech Industries (Australia) Pty Limited on March 17, 2006. PENINSULAR BAY: Members Opt for Voluntary Liquidation ----------------------------------------------------- Members of Peninsular Bay Pty Limited held a general meeting on March 20, 2006, and agreed to: -- voluntarily wind up the Company's business operations; and -- appoint Kevin J. Perrin as liquidator for the wind-up. Contact: Kevin J. Perrin Liquidator Prowse, Perrin & Twomey 20 Lydiard Street, South Ballarat Victoria 3350, Australia Telephone: (03) 5331 3711 P.M.A.G. PTY: Downey to Explain Wind-up to Members and Creditors ---------------------------------------------------------------- The members and creditors of P.M.A.G. Pty Limited will convene today, May 4, 2006, to receive Liquidator James Patrick Downey's account regarding the Company's completed wind-up and disposal of the its property. Contact: James P. Downey Liquidator Cole Downey & Company Chartered Accountants Level 1, 22 William Street Melbourne 3000, Australia QANTAS AIRWAYS: Looking at Freight Business, CFO Says ----------------------------------------------------- For the past few weeks, there have been speculations that Qantas Airways Limited is considering an identity change and is looking at expanding into road and rail freight. In an update, the Sydney Morning Herald cites Qantas Chief Financial Officer Peter Gregg as stating that, "in the current environment, many things are being looked at -- including freight." Mr. Gregg explained that Qantas sees freight logistics as a natural area for expansion because it already has significant exposures there. The Sydney Herald says that the airline is currently into time- sensitive parcel delivery. There has been talk that Qantas' first large-scale foray into land freight could be in partnership with Australia Post, with which it owns the parcel delivery company Star Track Express. The Sydney Herald, however, notes that Mr. Gregg and Australia Post have not confirmed any new alliance. According to the Sydney Herald, Qantas' interest in freight has been accelerated by the carrier's desire to reduce its exposure to soaring fuel prices in the aviation industry. About Qantas Airways Headquartered in Sydney, Australia, Qantas Airways -- http://www.qantas.com.au/-- is the world's second oldest airline and is also recognized as one of the leading long- distance airlines, having pioneered services from Australia to North America and Europe. The Qantas Group employs approximately 38,000 staff across a network that spans 145 destinations in Australia, Asia-Pacific, Americas, Europe and Africa. The Qantas Group also operates a diverse portfolio of airline-related businesses, including Engineering Technical Operations and Maintenance Services, Airports and Catering, Qantas Freight, Qantas Holidays, Qantas Defence Services and Qantas Consulting. Qantas started having problems in 2003 with the ill effects of the Iraq War and the SARS outbreak, on top of the already difficult period following the events of the 9/11 terrorist attacks, the Afghanistan war and the terror threats, which lead to a downturn in bookings to other Asian countries, and affecting most of European routes as well. The adverse effects also affected other areas of the business including Qantas Flight Catering, Qantas Holidays and Australian Airlines. Qantas started reviewing, and widened, the range of initiatives it had put in place following the triggering events. These initiatives included the reduction of staffing numbers through the use of accumulated leave to the equivalent of 2,500 full- time employees by June 2003 and by the equivalent of 1,000 employees between July and September 2003; a restructuring program involving 1,000 redundancies, 400 permanent positions eliminated through attrition and 300 permanent positions converted from full time to part time; a freeze on capital and discretionary expenditure; expansion of the leave without pay program; increased use of part time workers; significant restructuring of work practices and activities; and reduction of capital expenditure, including retirement of some aircraft and deferral of delivery of new aircraft. In December 2003, Qantas unveiled its new low cost-carrier airline, Jetstar Asia, which later proved to be a headache after failing to gain access to crucial markets such as Indonesia and China. In June 2005, Qantas admitted it is still struggling to recover its investment in Jetstar, despite having managed to lease out four of its unused Airbus 320s. Qantas went into another round of job cuts in late June 2005, a move that was punctuated with more than 600 jobs slashed in the first half of its financial year. The latest round of job cuts announced in February 2006 came amidst uncertainty of outsourcing the airline's heavy maintenance works overseas. QUALITY DECORATING: Court Set to Hear Liquidation on May 15 ----------------------------------------------------------- On February 20, 2006, the High Court of Invercargill received an application to liquidate Quality Decorating Services Ltd from the Commissioner of Inland Revenue. The Court will hear the application on May 15, 2006, at 10:00 a.m. Parties other than the defendant Company who wish to appear on the hearing must file an appearance on May 11, 2006. Contact: Julia Dykema Solicitor for the Plaintiff Inland Revenue Department Technical and Legal Support Group South Island Service Centre Ground Floor Reception 518 Colombo St, Christchurch New Zealand Telephone: (03) 968 0809 Facsimile: (03) 977 9853 SHARK'S SCAFFOLDING: Enters Voluntary Liquidation ------------------------------------------------- Members of Shark's Scaffolding Pty Limited held a meeting on March 21, 2006, and agreed to close the Company's business. Creditors consequently appointed P. Ngan as liquidator. Contact: P. Ngan Liquidator Ngan & Company Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia SIMPLY INSURANCE: S&P 'B' Rating Remains On CreditWatch Positive ---------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B' insurer financial strength rating on Simply Insurance New Zealand Ltd. remains on CreditWatch with positive implications, where it was placed on Jan. 31, 2006, when global financial institution GE Finance and Insurance, majority owned by General Electric Capital Corp., received requisite regulatory and shareholder approvals for completing its acquisition of Simply Insurance. The CreditWatch with positive implications indicates that the rating on Simply Insurance could increase. The degree of potential uplift in Simply Insurance's rating will depend on Standard & Poor's assessment of management plans, and the degree of integration with, and explicit and implicit support from, the new parent. At this stage, Standard & Poor's believes that Simply Insurance's integration within GEFI is proceeding well, and is focused on operational and financial structure and related growth strategies. Benefits to Simply Insurance stemming from GEFI's stronger business and financial profile are likely, given that the New Zealand insurer's business is complementary to GEFI's presence in the New Zealand finance and insurance markets. Although Standard & Poor's expects Simply Insurance to benefit from a higher rating, the CreditWatch placement will be resolved once all remaining aspects of the integration process are completed to a satisfactory level, and after further discussions between Standard & Poor's and GEFI. SINGER FIRE SYSTEMS: Court to Hear Liquidation Proceedings ---------------------------------------------------------- An application for putting Singer fire Systems Ltd into liquidation was filed by Paramount Trust before the High Court of Auckland on March 15, 2006. The Court will hear the application on May 18, 2006, at 10:45 a.m. Parties other than the defendant Company who wish to appear on the hearing are required to file an appearance on May 16, 2006. Contact: David Mark Grindle Solicitor for the Plaintiff Webb Ross, Lawyers Mansfield House, Mansfield Terrace Whangarei, New Zealand SOLIMAN & SONS: Appoints Official Receivers ------------------------------------------- Justin Denis Walsh and Keiran William Hutchison were appointed as joint and several receivers and managers of a certain property of Soliman & Sons Pty Limited on February 24, 2006. Contact: Keiran W. Hutchison Justin D. Walsh Receivers & Managers Ernst & Young Level 5, 1 Eagle Street Brisbane, Australia STURNI MOTORS: To Pay Dividend to Creditors on May 7 ---------------------------------------------------- Sturni Motors Pty Limited will declare its first and final dividend to creditors on May 7, 2006. Creditors who were not able to prove their claims are excluded from sharing in any distribution the Company will make. Contact: G. M. Rambaldi Liquidator Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia TRIBUNE HOLDINGS: To Distribute Proceeds of Assets Disposal ----------------------------------------------------------- At a general meeting on March 24, 2006, the members of Tribune Holdings Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets. Leslie Ernest Pratt was named as liquidator to manage the Company's wind-up activities. Contact: Leslie E. Pratt Michael Rice & Associates Level 6, 360 Queen Street Brisbane, Australia VACATION CORPORATION: Members Review Wind-up Report --------------------------------------------------- The final meeting of Vacation Corporation (Australia) Pty Limited will be held today, May 4, 2006. At the meeting, Liquidator Wayne Benton will present his accounts of the manner of the Company's wind-up and property disposal. Contact: Wayne Benton Liquidator PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia ================================ C H I N A & H O N G K O N G ================================ ALBERTO-CULVER LIMITED: Liquidator to Present Wind-up Report ------------------------------------------------------------ The final meeting of members and creditors of Alberto-Culver (H.K.) Ltd will be held at the office of Ferrier Hodgson Ltd, 14/F, Hong Kong Club Bldg, 3A Chater Road, Central, Hong Kong on May 30, 2006, at 2:30 a.m. At the meeting, the Company's liquidator will report on how the winding up has been conducted and the property of the Company was disposed of. C.B.M. PROPERTIES: To Receive Proofs of Claims Until May 30 ----------------------------------------------------------- Creditors of C.B.M. Properties Ltd are required to send their proofs of claims to Liquidator Shum Lap Chi on or before May 30, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution of assets the Company will make. Contact: Shum Lap Chi Unit A, 19/F., Chun Wo Commercial Centre 23-29 Wing Wo Street, Central Hong Kong CHARTER LANE: Liquidators Cease to Act for the Company ------------------------------------------------------- Rainier Hok Chung Lam and John James Toohey, former Joint and Several Liquidators of Charter Lane Development Ltd, ceased to act in behalf of the Company on April 19, 2006. CITISTATE DEVELOPMENT: Court Orders Winding Up ------------------------------------------------ Chan Kwai Ping and Wong Kwok Wai were named as liquidators of Citistate Development Limited on April 22, 2006. Contact: Chan Kwai Ping Wong Kwok Wai, Albert Joint and Several Liquidators Suite 2302-7 308 Des Voeux Road Central Hong Kong EAGLE ZONE: To Hold Final General Meeting on May 15 --------------------------------------------------- A final general meeting of the members of Eagle Zone Limited will be held on May 15, 2006, at Room 1005 Allied, Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. At the meeting, members will get an account of the manner of the Company's wind-up and property disposal from Liquidator Lam Ying Sui. ELRA LIMITED: Appoints Official Liquidator ------------------------------------------- Heng Poi Cher has been appointed liquidator of Elra (H.K.) Ltd by a special resolution passed by members on April 21, 2006. Contact: Heng Poi Cher 4404, 4/F., China Resources Bldg 26 Harbour Road, Wanchai Hong Kong GRAND HIGH: Members' Final Meeting Scheduled on May 15 ------------------------------------------------------ Members of the Grand High Limited will convene for a final general meeting on May 15, 2006, at Room 1005 Allied, Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. At the meeting, Liquidator Lam Ying Sui will present an account of the Company's liquidation process. The members will also decide whether the books, accounts, and documents of the Company will be retained by the liquidator and be disposed of after the Company is dissolved. HOGENT INTERNATIONAL: Final Meetings Slated for June 2 ------------------------------------------------------ The final meeting of members and creditors of Hogent International Holding Ltd will be held at the 32/F., One Pacific Place, 88 Queensway, Hong Kong on June 2, 2006 at 10:30 a.m. and 10:45 a.m., respectively. At the meetings, the Company's liquidator will report on how the winding up has been conducted and the property of the Company was disposed of. JIANGXI COPPER: Xinhua Revises Rating Outlook to Negative --------------------------------------------------------- Xinhua Far East China Ratings has commented that the likelihood of downward surprises on the issuer rating for Jiangxi Copper Co., Ltd. was increasing and changed the Company's rating outlook to negative from stable. Its issuer credit rating remains BB+. Xinhua Far East reiterated that its rationale for maintaining a non-investment grade rating for Jiangxi Copper, initiated in 2003, was primarily a concern over the Company's inadequate information disclosure and transparency. As such, it is quite difficult for general investors to timely assess Jiangxi Copper's hedging strategies and maximum exposures in the volatile copper spot and futures market, thereby undermining the predictability of its volatility in commodity trading and hedging. The change in outlook is prompted by Xinhua Far East's intensified concern that JXCC has become increasingly vulnerable to trading surprises amid prevailing strong volatilities in copper spot and futures market. Xinhua Far East has observed from the Company's public information that Jiangxi Copper has maintained and managed open positions in copper futures markets which have resulted in net hedging gains or losses. However, there is inadequate disclosed information about critical aspects in risk management, such as maximum trading exposures and stop loss limits. Thus it is challenging for investors to assess if the company can maintain a stable financial profile in a timely manner, particularly during times of high market volatility. As a result, uncertainty over an abrupt change in the company's credit profile has also increased. Xinhua Far East noted that the gain/loss resulting from the Company's futures trading has been rising considerably in recent years, and the figure is subject to further increases as the market becomes more volatile and the Company expands its production scale. In 2005, the Company incurred a net loss of CNY546 million, or 29.5% of its net profit, from its positions in the futures market, compared with a 10.3% gain, 12.2% loss, and 4.3% gain in 2002, 2003, and 2004, respectively. Xinhua Far East recognizes the Company's leading position in China's copper industry and its ability to generate positive operating results and sound financial profile in 2005. Xinhua Far East will reconsider the rating in the event that the Company provides more timely disclosure of its futures trading strategies and risk management practices to public investors. * * * Jiangxi Copper is China's largest copper producer. In 2005, it produced 422 thousand tons of copper, about 16.8% of the total national output. The Company also realized a turnover growth rate of 25.5% and net profit growth rate of 61.9% in 2005. Jiangxi Copper is a constituent of the Xinhua/ FTSE China 200 Index. As of market close on April 28, 2006, its total market capitalization and investable capitalization were CNY17.5 billion and CNY3.5 billion respectively. KA NGAI: Creditors Meeting Fixed on May 17 ------------------------------------------ The creditors of Ka Ngai Printing & Paper Products Co. Limited will hold a meeting on May 17, 2006, at 10:00 a.m. pursuant to Sections 241, 242, 243, 244, 255A and 283 of the Companies Ordinance. The meeting will be held at: Units 3309-3311 33/F., West Tower, Shun Tak Centre 168-200 Connaught Road Centre Sheung Wan Hong Kong Creditors may vote either in person or by proxy. Forms of proxy must be lodged not later than 4:00 p.m. on the day before the meeting. KWONG YENG: Mee and Yee Cease to Act as Joint Liquidators --------------------------------------------------------- Natalia Seng Sze Ka Mee and Cynthia Wong Tak Yee ceased to act as joint and several liquidators of Kwong Yeng Company Limited on April 11, 2006. Contact: Natalia Seng Sze Ka Mee Cynthia Wong Tak Yee Level 28, Three Pacific Place 1 Queen's Road East Hong Kong MASTER BRIGHT: Liquidator to Report on Wind-up ---------------------------------------------- Liquidator To Fung Wo will report on the winding up of Master Bright Investment Ltd to the Company's shareholders on May 30, 2006, at 10:00 a.m. Members will also be asked: -- to approve and adopt the Liquidator's Accounts; and -- to decide whether the Company's books, accounts and documents be retained by the Liquidator and be destroyed three months after the dissolution of the Company. MOGU INTERNATIONAL: Creditors Must Prove Debts by May 19 -------------------------------------------------------- Mogu International Limited is receiving proofs of debts from its creditors until May 19, 2006. Creditors are required to send in their full particulars of their claims and or debts to the Company's Liquidators. Failure to do so will exclude any creditors from sharing in the distribution of assets the Company will make. Contact: Desmond Chung Seng Chiong Joint and Several Liquidator Ferrier Hodgson Limited 14/F Hong Kong Club Building 3A Chater Road Central, Hong Kong MORRISON INVESTMENT: Names Official Liquidator ---------------------------------------------- Chan Sin Yiu was appointed as liquidator of Morrison Investment Ltd by virtue of a special resolution passed by the Company's members on April 20, 2006. Contact: Chan Sin Yiu Room 1506, 15/F., Takshing House 20 Des Voeux Road Central Hong Kong NIPPON ASIA: Delays FY/2005 Results Announcement ------------------------------------------------ In a disclosure to the Hong Kong Stock Exchange, Nippon Asia Investment Holdings Limited announced that BDO McCabe Lo Ltd. resigned as auditors of the company and its subsidiaries with effect from April 26, 2006, as the company and BDO could not reach an agreement on the audit fees for the additional audit works to be conducted in relation to Xiling Natural Gas Ltd, a subsidiary of the company's jointly-controlled entity in the PRC. By its resignation letter dated April 26, 2006, BDO stated that they still had certain outstanding matters in connection with their audit on receivables and payables and construction materials inventories of Xiling Natural Gas and the audit work necessary for Nippon Asia Investments' disposed subsidiaries. The outstanding matters include: (1) BDO had not yet received sufficient replies to the confirmations requested from the debtors and creditors on the balances of receipts in advance, prepayments, deposits and other receivables, trade receivables and trade payables as at the year end date, and unreconciled discrepancies were noted in certain replies received; (2) BDO had not attended stock take of Xiling Natural Gas; and (3) the Nippon Asia Investments group disposed of its entire interests in Golite International Ltd after the balance sheet date and the management could not arrange access of books and records of Golite for audit after its disposal. Trading in the shares of Nippon Asia Investments remains suspended until announcement of the annual results and the interim results. * * * Nippon Asia Investments Holdings Limited manufactures batteries and silicone rubber products. Other activity includes investment in Internet, Internet-related, mobile phone and mobile phone-related. The Group's operations are carried out in Hong Kong, People's Republic of China, America, Europe and other countries. RAMS CITY: Members' Final Meeting Scheduled for May 30 ------------------------------------------------------ Members of Rams City Trustee Limited will convene for a final general meeting on May 30, 2006. At the meeting, Liquidator Ko Ming Tund Edward will present an account of the Company's liquidation process. Contact: Ko Ming Tung Edward 18th Floor Yue Thai Commercial Building 128 Connaught Road Central Hong Kong SOUTH AUSTRALIAN FINANCE: Members Final Meeting Set on May 30 ------------------------------------------------------------- Members of South Australian Finance (H.K.) Ltd will meet at 3801, Central Plaza, 18 Harbour Road, Wanchai Hong Kong on May 30, 2006, at 10:00 a.m. At the meeting, Liquidator Kenneth Morriso will present an account showing how the winding-up has been conducted. TING FUNG: Members to Receive Liquidator's Wind-up Account ---------------------------------------------------------- Members of Ting Fung Industrial Co Ltd will meet at Room 1004, Harvest Bldg, 29-37 Wing Kut Street, Central, Hong Kong on May 29, 2006, at 10:00 a.m. At the meeting, Liquidator Lau Suet Meng will present an account showing how the winding-up has been conducted. TITAN PETROCHEMICALS: S&P Revises Rating Outlook to Negative ------------------------------------------------------------ Standard & Poor's Ratings Services has revised its outlook on Titan Petrochemicals Group Ltd. to negative from stable. At the same time, it affirmed the "BB-" long-term corporate credit rating on Titan. The "B+" issue rating on the company's senior unsecured notes was also affirmed. "We've revised the outlook to negative because of Titan's weaker-than-expected financial performance in 2005, uncertainty over the outlook for the tanker market, and concerns about the company's financial strength over the next one to two years," said Standard & Poor's credit analyst Jim Ng. Titan's profitability has fallen as a result of lower-than- expected realized very large crude carriers rates, increased operating costs, and higher bunker fuel costs. Its net profit slumped 24.3% year-on-year to HK$303 million in 2005 from HK$400 million in 2004, despite a 200% year-on-year increase in revenue. Accordingly, its ratio of net debt to EBITDA surged to 6.1x in 2005 from 1.5x in 2004, and EBITDA interest coverage plunged to 2.2x in 2005 from 11.9x in 2004. Very large crude carrier rates could remain under pressure in 2006 due to an expected increase in tanker capacity. However, this is dependent on the growth in oil demand, while tanker capacity is expected to rise at a slower rate than in 2005. Globally, 16 new VLCCs are slated for delivery this year, compared with 31 in 2005. Titan expects its financial performance to improve in 2006 as a result of the full-year effect of expanding its fleet capacity in 2005 and its plans to reduce operating costs. While Titan's three greenfield oil storage projects in China carry execution risks, they are all on track for completion in the next few years. As a result, the company's earnings mix should change, making its revenue stream more diversified and less volatile. Titan's liquidity is adequate. As at Dec. 31, 2005, the company had HK$644 million in cash, which should be sufficient to cover its long-term debt due in 2006 amounting to HK$442 million and the majority portion of its planned capital expenditure of about HK$300 million for 2006. Covenants in the company's bond prospectus include limitations on additional indebtedness and capital expenditure. * * * Titan Petrochemicals Group Ltd, which operates out of Hong Kong and Singapore, primary engages in the trading, transportation, and storage of oil and oil products. As of December 2005, it operated a fleet of 28 vessels, including 13 Very Large Crude Carriers and 15 smaller vessels. Titan is listed on the Hong Kong Stock Exchange. UNITED FASHION: Liquidator to Present Wind-up Report ---------------------------------------------------- The final meeting of members and creditors of United Fashion Garment Ltd will be held at Room 2503, 25/F., Wing On Centre, 111 Connaught Road Central, Hong Kong on May 30, 2006, at 3:00 p.m. and 3:30 p.m., respectively. At the meeting, the Company's liquidator report on how the winding up has been conducted and the property of the Company was disposed of. Members will also be asked: -- to approve and adopt the Liquidator's Accounts; and -- to decide whether the Company's books, accounts and documents be retained by the Liquidator and be destroyed three months after the dissolution of the Company. WINSON KNITTING: Winding Up Hearing Set on May 24 ------------------------------------------------- On March 27, 2006, Wu Sing Lung filed an application to wind up Winson Knitting Industrial Company Limited with the High Court of Hong Kong Special Administrative Region. The Application will be heard before the High Court on May 24, 2006. Contact: Betty Chan for Director of Legal Aid 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong WINSWAY REALTY: Liquidator Ceases to Act for Company ---------------------------------------------------- Cheng Shui Tai, former Liquidator of Winsway Realty Company Limited, ceased to act as the Company's liquidator on April 28, 2006. Contact: Cheng Shui Tai Former Liquidator Room 3203, 32/F. COSCO Tower 183 Queen's Road Central Hong Kong WORLDWIDE DREAMS: Members Resolve to Wind Up Firm ------------------------------------------------- Members of Worldwide Dreams Trading Limited held a meeting on April 19, 2006, and agreed that: -- the Company be wound up voluntarily; -- the assets of the Company be distributed among the members in cash or in kind; -- Natalia K.M. Seng and Susan Y.H. Lo be appointed as liquidators; and -- the audit of the Liquidator's accounts of receipts and payments will not be required. Contact: Natalia K.M. Seng Susan Y.H. Lo Liquidators Level 28 Three Pacific Place 1 Queen's, Road East Hong Kong ========= I N D I A ========= DUNLOP INDIA: Unions Lodge Payment Demands to Ruia Group -------------------------------------------------------- Members of Dunlop India Limited's workers unions have submitted their grievances and demands before the Company's new management, the Ruia Group, New Kerala News reveals. The group, headed by Dunlop Workers Union leader Dipankar Ray, lodged their written complaint on May 2, 2006. The demand includes a one-time settlement payment of employees' entitlements. The Troubled Company reporter - Asia Pacific reported on May 2, 2006, that 4,378 Dunlop workers boycott the Company's partial payment of previous dues under a one-time settlement of INR30,000 arrears at the Company's newly opened Sahagunj plant. The workers claimed that the new management was paying them much less than what was agreed upon. They alleged that Ruia had committed a mistake by paying employees on a pro-rata basis. TCR-AP said that the management had calculated the payment on the basis of workers' attendance for the 11 months for which the dues were supposed to be paid. However, the unions insist that the pro-rata formula could be applied only to employees who retired before completing the 11 months for which the arrears was agreed to be paid, New Kerala relates. The Ruia Group earlier told The Statesman that the management is willing to discuss the matter with the unions in order to iron out the issue that led to the boycott. About Dunlop India Headquartered in Kolkota, India, Dunlop India Limited is involved principally in manufacturing and distributing automotive tires and tubes. The firm's other activities include manufacturing high-pressure hoses, steelcord belting and vibration isolators. The company had reported profit until March 1997. In January 1998, the Board of Directors decided that the Company had become sick due to the necessity of reversing the earlier decision for sale of some real estate property of the company through a subsidiary, Dunlop Investment Limited. This decision required a reversal of corresponding entry of INR1,700 million and its reflection in the accounts of the financial year 1997-98. After taking this into account, the Board of Directors decided to refer the Company to Board of Industrial and Financial Reconstruction and abruptly announced suspension of Dunlop's operations in both Sahaganj and Ambattur in February 1998. The Ministry for Law, Justice and Company Affairs had also come to the conclusion after inspection of the Books of Accounts of Dunlop India that there were serious irregularities and had moved the Company Law Board for appointment of Government Directors. In January 2006, the Ruia Group took over the Company and voted to re-open its plants in within this year. INDIA CEMENTS: Launches US$75-Million Covertible Bonds ------------------------------------------------------ India Cements Ltd has entered into a subscription agreement for US$75 million Foreign Currency Convertible Bonds on May 2, 2006. The bonds, which have a maturity of five years and one day, are convertible at a conversion price of INR305.57 per share, which is at a premium of 30% over the closing price of INR235.05 on the National Stock Exchange on May 2, 2006. The bonds are zero coupon bonds with a yield to maturity of 7.95%, calculated on a semi-annual basis. The issue was significantly oversubscribed within a few hours of launch. The bonds are expected to be listed on the Singapore Exchange Securities Trading Ltd. ABN Amro Rothschild and Deutsche Bank AG acted as joint bookrunners to the transaction. 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. In order to address its problems, the Company 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 INR1,700 crore to the current INR400 crore. ================= I N D O N E S I A ================= GARUDA INDONESIA: Imposes Fuel Surcharge To Cover Oil Costs ----------------------------------------------------------- State-owned carrier PT Garuda Indonesia will enforce fuel surcharges between US$5 to US$15 for its international flights this week to cover rising costs due to an increase in global oil prices, The Jakarta Post relates. Garuda spokesman Pudjo Broto said that for domestic flights that are less than two hours, the airline has been imposing surcharges of IDR10,000, and IDR20,000 for domestic flights of more than two hours. Mr. Broto stated that a similar scheme would also be applied to international flights, but Garuda will not require surcharges on flights to Hong Kong and Japan, as the two countries had still not given their approval for this. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves another 10 domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. The carrier has been hard-hit by plunging arrivals on the resort island of Bali, where tourists have been killed in bomb attacks in 2002 and 2005. It has also suffered from soaring global oil prices, a weakening of the Indonesian rupiah and rising interest rates. At present, Garuda is concentrating its efforts on repaying its debts with foreign creditors under the European Credit Agency, which were due last December 31, 2005. Garuda management hopes to receive IDR520.4 billion in funds, promised by the Indonesian government, by March 2006. In March 2006, The Indonesian Government proposed to infuse US$250 million for PT Garuda Indonesia's debt restructuring, or set up a "special-purpose vehicle" in a bid to pay the airline's debts totaling US$644 million. Sugiharto, the state-owned enterprises minister, said that if the second option was agreed, the special-purpose vehicle would repay debt principal and interest of US$80 million annually within a 10- year period. Mr. Sugiharto added that the financial sources would be from the airline's leasing revenues of US$30 million a year and Government's fund of US$50 million a year. The carrier posted a SGD46.5 billion net loss in January, versus a net loss of IDR56.1 billion in the same period last year. As of the end of 2005, Garuda's debt totaled US$795 million. PERTAMINA: Saudi Aramco Mulls 400,000 Barrels Per Day Refinery -------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on April 26, 2006, that PT Pertamina is offering several geothermal and oil and gas projects to Arab investors, citing PT Pertamina director for upstream operations Sukusen Soemarinda. An earlier TCR-AP report stated that Pertamina invited Saudi Aramco Oil Co. to jointly build a crude oil refinery in Indonesia, as the Company's current seven refineries cannot match the rise in domestic fuel demand. In an update on May 2, 2006, Dow Jones Newswires revealed that Saudi Arabian Oil Co. had indicated that it might invest in a crude oil refinery with a capacity of 400,000 barrels per day. According to Dow Jones, state-run Saudi Aramco will decide on the project after the completion of a feasibility study. Pertamina Vice President Iin Arifin Takhyan said that Saudi Aramco would also supply the crude for the proposed refinery. Mr. Takhyan added that the proposed facility would lessen Indonesia's dependence on imported oil products for the domestic market. Meanwhile, a delegation from Iran is expected to arrive in Indonesia in May to discuss possible investment in a 300,000 barrels per day oil refinery in the country. 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. ========= J A P A N ========= MITSUBISHI MOTORS: U.S. Unit Sales Rises 17.5% in April ------------------------------------------------------- The North American unit of Mitsubishi Motors Corporation posted a 17.5% increase in its April 2006 sales to 10,841 units, from 9,230 units in the same period last year, PR Newswire reports. According to Mitsubishi Motors North America President Hiroshi Harunari, this is just the beginning, since they are planning to launch more exciting products later this year, including its Outlander vehicle, aside from its Eclipse Spyder convertible. The total sales of 10,841 units represent the highest monthly total since August 2005, and the second best sales month in the past year. The 17.5% increase is the largest year-over year monthly sales increase in nearly four years, since July 2002, and the largest year-over-year monthly increase in 6 years, since April 2000. Mr. Harunari adds that Mitsubishi Motors is well positioned to face the many challenges of the automobile industry; aside from their new products, the Company also offers competitive and meaningful programs to its clients. Mitsubishi Motors North America, Inc., is responsible for all manufacturing, finance, sales, marketing, research and development operations of the Mitsubishi Motors Corporation in the United States. The company sells coupes, convertibles, sedans, sport utility vehicles, and light trucks through a network of approximately 540 dealers. 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 Motors North America, Incorporated -- http://www.mitsubishicars.com/-- oversees all North American operations of the Mitsubishi Motors Corporation, including sales, manufacturing, finance, and research and development functions. The Company manufactures and sells Mitsubishi brand cars and sport utility vehicles through a network of almost 700 dealers in the United States, Canada, Mexico, and the Caribbean. The Wall Street Journal reported early in 2005 that deeply troubled Mitsubishi Motors was seeking a buyer for its North American operations. Mitsubishi was quick to deny the report. 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 NEC ELECTRONICS: To Produce LSI Chips for Nintendo -------------------------------------------------- NEC Electronics Corporation is set to produce LSI chips for the latest game console of Nintendo Corporation, Electronic Engineering Times reports. NEC Electronics President Toshi Nakajima said that the Company plans to increase capacity at its Yamagata 300 millimeter wafer fabrication plant, from current production of 6,000 wafers per month to 11,000 wafers per month in the first half of the fiscal year. Mr. Nakajima adds that the chips for Nintendo would become one of the main products of its Yamagata plant. Nintendo launched the Wii last May 2005, which featured a CPU named Broadway developed by IBM and a graphics processor code- named Hollywood developed by ATI Technologies Inc. NEC Electronics supplied a graphics LSI chip named Flipper for Nintendo's current-generation console, the GameCube. The LSI was based on the company's embedded DRAM technology and has 24Mbit DRAM and 6 million gates were integrated on it. The Company will apparently produce an embedded DRAM chip that may integrate the graphics processor developed by ATI, or produce the embedded DRAM chip and the graphics processor. 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, Incorporated 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. ========= K O R E A ========= HYUNDAI MOTOR: April Sales Slip 12.8% to 215,037 Units ------------------------------------------------------ In a press statement issued on May 2, 2006, Hyundai Motor Co. discloses that worldwide sales fell 12.8% in April over the previous month to 215,037 units. The carmaker also revealed that its January to April sales has reached 871,248 units, up 10.9% from a year earlier. As reported by the Troubled Company Reporter - Asia Pacific on April 20, 2006, a new plant in China is expected to double the automaker's production capacity in the mainland to 600,000 vehicles a year. Anticipating a surge in China's economic growth precipitated by the 2008 Beijing Olympics and 2010 Shanghai Expo, the new plant will include a research and development center and will position Hyundai to challenge China's automotive leaders, the company said. Domestic Sedans, SUVs and Minivans Sedan sales in the Korean market slowed by 6.1% month on month to 26,929 units ash Sonata retained its crown as the nation's number one selling car with sales of 10,572 units. Sales of SUVs and minivans posted a 25.3% decline to 6,090 units as each model posted negative results, including the all-new Santa Fe. Domestic Commercial Vehicles Hyundai said that the picture was not any brighter in its domestic commercial vehicle sales, where sales fell 24.6% to 11,025 units. * * * 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: To Build Czech Plant as Planned ---------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on April 26, 2006, that 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 TCR-AP recounts that prosecutors suspect Chairman Chung of embezzling about US$106 million since 2002 to create a slush fund, as well as of incurring about US$320 million in damages to the Company. In an update on May 2, 2006, Digital Chosun Ilbo states that the Hyundai Motor Co. will push ahead with the construction of a new plant in the Czech Republic to keep the Company's foreign credibility. The TCR-AP has earlier reported that the groundbreaking ceremony of its manufacturing facility in the Czech Republic has been initially set for May 17, 2006. Digital Chosun Ilbo added that Hyundai would sign a contract with the Czech Government when an official from the European country comes to Korea anytime this month. According to the report, Hyundai will invest EUR0.8 billion to EUR1 billion into the Czech plant, which is to have an annual production capability of 300,000 cars by 2008. 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. =============== M A L A Y S I A =============== AVANGARDE RESOURCES: Delays 2005 Financial Report Issue ------------------------------------------------------- Avangarde Resources Berhad has yet to issue its 2005 Annual Audited Accounts, which is due on April 30, 2006. The Company explained that it is still finalizing the report. As reported by the Troubled Company Reporter - Asia Pacific, Bursa Malaysia Securities Berhad, on March 10, 2006, decided to remove Avangarde's securities from the Official List after failing to submit outstanding financial reports. On March 17, 2006, Bursa Securities deferred the delisting after Avangarde submitted its appeal against the Bourse's decision to delist the Company's securities. After due consideration of all facts and circumstances of the case and given that the Company had submitted its Annual Audited Accounts for the financial years ended December 31, 2003, and December 31, 2004, on March 31, 2006, and the Company's representation in its letter dated March 31, 2006, that the submission of its annual reports for the financial years ended December 31, 2003, and 2004 would follow immediately after Bursa Securities decided to defer the delisting of the Company's securities provided that the annual reports are submitted by April 30, 2006. However, pursuant to Paragraph 8.14C of the Listing Requirements and Practice Note 17, the Bourse determined that the financial condition of Avangarde was not adequate to warrant continued listing on the Official List. Therefore, the Bourse will remove Avangarde's securities from the Official List today, May 4, 2006. About Avangarde Resources Berhad Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources Berhad is involved in the construction and development of housing projects. The Group has incurred huge losses due to provision of doubtful debts and writing off of bad debts. It was delisted from the Official List of Bursa Malaysia Securities Berhad due to its poor financial status and its failure to meet with the requirements of the Bourse. The Company is now preparing the Proposed Scheme of Arrangement pursuant to the Section 176 of the Companies Act to regularize its financial condition. The Company will unveil its Proposed Scheme once it is finalized. AVANGARDE RESOURCES: To Hold 6th AGM on June 6 ---------------------------------------------- Avangarde Resources Berhad will hold its Adjourned Sixth Annual General Meeting on June 6, 2006, at the Langkawi Room, Bukit Jalil Golf & Country Resort, Jalan 3/155B, in Bukit Jalil, Kuala Lumpur. At the meeting, Avangarde members will be asked: -- to receive the Audited Financial Statements for the financial year ending December 31, 2003, together with the Reports of the Directors and Auditors; and -- to receive the Audited Financial Statements for the financial year ended December 31, 2004, together with the Directors' and Auditors' reports. About Avangarde Resources Berhad Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources Berhad is involved in the construction and development of housing projects. The Group has incurred huge losses due to provision of doubtful debts and writing off of bad debts. It was delisted from the Official List of Bursa Malaysia Securities Berhad due to its poor financial status and its failure to meet with the requirements of the Bourse. The Company is now preparing the Proposed Scheme of Arrangement pursuant to the Section 176 of the Companies Act to regularize its financial condition. The Company will unveil its Proposed Scheme once it is finalized. CHG INDUSTRIES: To Appeal SC's Rejection of Restructuring Scheme ---------------------------------------------------------------- CHG Industries Berhad is currently preparing its appeal of the Securities Commission's decision rejecting its proposed debt and corporate restructuring scheme. The Troubled Company Reporter - Asia Pacific reported that on April 6, 2006, the Securities Commission disallowed CHG Industries' application in relation to the proposals under the Company's Restructuring Scheme. While considering the application, the SC noted that: -- the Proposals do not provide the appropriate benefits to the shareholders of CHG; -- the Proposals involve, among others, the acquisition of three companies which are involved in businesses in the competitive and unpredictable timber industry; and -- there are conflicting interests with the businesses of the Sinar Tiasa Group as the promoters are also involved in the upstream and downstream businesses in the timber industry in other companies that are both listed and unlisted on Bursa Malaysia Securities Berhad. According to the TCR-AP, CHG Industries, on June 3, 2004, entered into an agreement with Linmax Group Sdn Bhd to undertake a corporate and debt restructuring exercise, which involves a capital reduction, the injection of fresh assets and a transfer of its listing status. About CHG Industries Berhad Headquartered in Selangor Darul Ehsan, Malaysia, CHG Industries Berhad -- http://www.chg.com.my/-- is an investment holding company listed on the Main Board of the Kuala Lumpur Stock Exchange, Malaysia. It is the parent company of the CHG Industries Group, whose principal activity is in the manufacture, distribution and export of plywood, LVL (Laminated Veneer Lumber) and other veneer products. The Company's woes started when it defaulted on loan facilities in 1999. In 2004, the Company has proposed a restructuring exercise, which involves a capital reduction, the injection of fresh assets and a transfer of its listing status. The plywood and veneer product maker will be transformed into a mechanical and engineering company through the injection of the assets of Linmax Group Sdn Bhd. CHG said the restructuring via Linmax will enable its existing shareholders to participate in Linmax, which has income-generating assets, and keep the company listed on the local bourse. The proposed restructuring scheme had been expected to be completed this year. CYGAL BERHAD: SC Grants More Time to Implement Restructuring ------------------------------------------------------------ The Securities Commission has given Cygal Berhad until August 31, 2006, to start implementing its corporate exercises. The Troubled Company Reporter - Asia Pacific reported on January 13, 2006, that Cygal has obtained the consent of the majority of its financial institution creditors for a further extension of time within which Cygal is to meet the conditions precedent as stipulated in the Settlement Agreement, dated November 19, 2001, between Cygal and its creditors. The deal relates to the settlement of Cygal's MYR229,637,109 debt to its lenders. The deadline was extended until March 31, 2006. The Settlement is a part of the Company's proposed corporate and debt restructuring scheme, which involves: -- the exchange of shares on the basis of three new company, or Newco, shares for every four shares in Cygal and the proposed takeover of Cygal's listed status by Newco; -- a rights issue raising up to MYR31 million, to be used for working capital; -- a debt restructuring scheme, which will involve Redeemable Convertible Secured Loan Stocks and Irredeemable Convertible Unsecured Loan Stocks issued by Newco; -- the proposed acquisition of shares in Laudable Invention Sdn Bhd and Cygal Properties Sdn Bhd to be satisfied by cash and shares in Newco; -- a proposed employee's share option scheme for all eligible employees and Executive Directors of Newco, Cygal and its subsidiaries. About Cygal Berhad Headquartered in Kuala Lumnpur, Malaysia, Cygal Berhad's principal activity is civil and building construction works. Its other activities include housing development; manufacturing and trading in ready mix concrete; trading in building materials; leasing of aircraft parts and equipment; provision of hotel management services; and investment holding. The Group's activities are located in Malaysia and Hong Kong. On November 19, 2001, Cygal Berhad and its subsidiary companies finalized a debt restructuring agreement with their lenders on involving debts outstanding of approximately MYR230 million. FORMIS MALAYSIA: Acquisition Plan Awaits SC's Approval ------------------------------------------------------ Formis (Malaysia) Berhad's application with the Securities Commission for a property acquisition pursuant to its financial regularization plan is still pending decision from the SC. Formis is seeking the SC's approval to acquire: -- units representing 181,544 square feet lettable area in the retail podium of Holiday Plaza, Johor Bahru; -- units representing 96,937 square feet lettable area in the office tower of Holiday Plaza, Johor Bahru; and -- 613 basement car park bays with a total area of 187,516 square feet. The acquisition, which was proposed to the Securities Commission on March 20, 2006, involves a total cash consideration of MYR180,000,000. About Formis (Malaysia) Berhad Formis Malaysia Berhad -- http://www.formis.net/-- was incorporated in Malaysia under the Companies Act, 1965 on March 23, 1992, under the name of Orlando Holdings Berhad. The Company was first listed on the Second Board of Bursa Malaysia Securities Berhad on December 28, 1992, and subsequently, on March 20, 2000, changed to its present name before being transferred to Main Board of Bursa Securities on March 30, 2000. Formis is principally an investment holding company and through its subsidiaries, is involved in the provision of hardware, software, maintenance and consultancy services in information technology business, computer networking solutions and systems integration as well as the wholesale and retail of full range of "Orlando" ready-made menswear and related accessories. Formis was admitted into Bursa Malaysia Securities Berhad's Practice Note 17 category on March 10, 2006, due to a deficit in its adjusted shareholders' equity and the impending cessation of its major business. Formis is in the process of completing the disposal of its IT Business to My-InfoTech (M) Berhad. Furthermore, it had also entered into a conditional sale and purchase agreement dated January 6, 2006, to dispose of Orlando Corporation Sdn Bhd. After the disposal of its IT Business and the proposed disposal of OCSB, Formis will not have any business operations. KIG GLASS: Has Two Months to Submit Regularization Proposal ----------------------------------------------------------- KIG Glass Industrial Berhad has accepted Permintex Holdings Sdn Bhd's proposal to further extend the expiry date of their Agreement to Negotiate to May 13, 2006, the Troubled Company Reporter - Asia Pacific disclosed. In an update on May 2, 2006, the KIG Glass said that it is still finalizing the terms of its regularization plans and the definitive agreement with Permintex. The Company has approximately two months to submit its regularization plan to relevant authorities for approval. About KIG Glass Industrial Berhad Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due to hefty losses and inability to pay its mounting debts, the Company ceased operation in May 2005. KRAMAT TIN: Seeks Regulatory Approval of Proposed Waiver -------------------------------------------------------- The Securities Commission, on April 3, 2006, granted its approval to Kramat Tin Dredging Berhad's proposed waiver from the need to subject the shareholdings of Putrajaya Holdings Sdn Bhd to a moratorium, the Troubled Company Reporter - Asia Pacific revealed on April 7, 2006. Kramat Tin is now seeking the approval of the remaining regulatory authorities for the proposal. The Company is preparing all necessary documents to obtain the necessary approvals. On June 9, 2005, the Securities Commission had approved the proposals subject to certain conditions. However, the SC did not approve the Company's application for a waiver for PJH from complying with the requirement of Paragraph 12.09 of the Policies and Guidelines on Issue/Offer of Securities of the SC relating to the waiver from the requirement to subject 50% of the securities to be received by PJH under the proposals to a moratorium. Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging Berhad is currently in the process of identifying suitable business opportunities. In July 2001, the Company wound down its tin dredging operations. LITYAN HOLDINGS: Awaits Restructuring Approvals ----------------------------------------------- Lityan Holdings Berhad is waiting for the required approvals from authorities before it could commence its restructuring exercise. The Company's Proposed restructuring Scheme, which was submitted on Janaury 20, 2006, are pending approval from the Securities Commission, Foreign Investment Committee and Bank Negara Malaysia. About Lityan Holdings Berhad Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. The Group incurred hefty losses since the 2001, with its liabilities exceeding its assets by MYR76 million. It also started defaulting on loan facilities. In 2005, the Company proposed a restructuring scheme. Lityan Holdings is currently insolvent. However, the Company has submitted its Proposed Restructuring Scheme to the Securities Commission, Foreign Investment Committee and Bank Negara Malaysia for their approval on January 20, 2006. It had also commenced discussion and currently is in negotiations with the lenders on the Creditors Scheme of Arrangement. The Company is looking into other business opportunities within its core activities and also taking steps to dispose of the Group's non-core investments and non-operating assets to address its current financial predicament and to generate cash flow for settlement of defaults and redemption of loans. POLYMATE HOLDINGS: Posts Default Status Update ---------------------------------------------- Polymate Holdings Berhad has updated the status of the various credit facilities defaulted by its three subsidiaries. The Company's three subsidiaries, which defaulted on loans aggregating MYR224 million are: 1. ABI Malysia Sdn Bhd; 2. Polymate Industries (M) Sdn Bhd; and 3. Polymate Packaging & Factoring Sdn Bhd. A full-text list of the various credit facilities in default is available for free at: http://bankrupt.com/misc/tcrap_polymateholdings050306.pdf Meanwhile, Polymate says that it is still negotiating with its lenders to restructure the Group's credit facilities and is working on various schemes to regulate its financial position. About Polymate Holdings Berhad Headquartered in Selangor Malaysia, Polymate Holdings Berhad -- http://www.polymate.com.my/Hprofile_html.htm-- is engaged in the manufacturing and marketing of lead acid batteries for the automotive and related industries. It is also engaged in the manufacturing and dealing of plastic articles and products, corrugated carton boxes and related products, manufacturing and trading of door closers and trading of building materials, investment holding and provision of corporate and financial support services. The Group operates in Malaysia, Australia, New Zealand and Europe. Polymate Holdings is in the process of working out possible plans to regularize its condition. Operations in its subsidiaries will be revived when a workable restructuring scheme is formalized with its lenders and when fresh working capital can be injected into the operations. On April 28, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a total fine of MYR84,000 on Polymate Holdings Berhad for breach of the Bourse's Listing Requirements. PROTON HOLDINGS: May Unveil Recovery Plan by Year-end ----------------------------------------------------- Proton Holdings expects to finalize its recovery plan and secure a strategic alliance late this year, Business Times reveals. The national carmaker is also expected to reveal its new partners from China, India and Europe by December. The tie-ups will complement the Company's business partnerships with Japan's Mitsubishi Motors, Germany's Volkswagen AG and France's Renault. Business Times says that Proton is also targeting MYR8.9 billion revenue with a pre-tax profit margin of 2.5% for the financial year ending 2007. Business tie-ups and some mergers and acquisitions are also expected along the way, anticipating the first real impact of the initiative to be seen in four to five months. Meanwhile, Proton told the Star Online that it hopes to come up with three or four consolidation models within five months under its components vendor program. As reported by the Troubled Company Reporter - Asia Pacific on April 17, 2006, Proton has encouraged its parts vendors to consolidate in order to effectively handle growing competition from other car manufacturers. The Company said that consolidation among vendors could reduce wastage and ensure better utilization of investment. The Company earlier said that it wants to focus on 20 to 30 core vendors under four to five groupings to bring down cost and improve quality and efficiency. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton has recently suffered plunging profits due to dwindling car sales and cutthroat competition. Proton has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. PROTON HOLDINGS: Bags Reader's Digest Trusted Brand Award --------------------------------------------------------- Proton Holdings was named as Malaysia's most trusted and favorite brand in the 2006 Reader's Digest Trusted Brands Awards - Car Category, The Star Online reports. The award was based on a survey conducted by Reader's Digest magazine, which measured a broad spectrum of consumers' brand preferences in 42 different product categories. In a statement, Proton Holdings Bhd said that this was the second consecutive year it received an award from Reader's Digest. Last year, it won the Gold Award in the annual SuperBrands Survey that asked consumers to name the most outstanding brands in Asia. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton has recently suffered plunging profits due to dwindling car sales and cutthroat competition. Proton has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. WEMBLEY INDUSTRIES: Updates on Debt Restructuring Progress ---------------------------------------------------------- Wembley Industries Holdings Berhad said that it is taking steps to secure more time to fulfill the conditions precedent stipulated in its Debt-Restructuring Agreement and to subsequently implement its restructuring. Furthermore, in relation to the status of default in payment pursuant to PN1/2001, the Board of Directors of the Company advised that there is no change to the status of default in payments of interest and principal sums to its lenders. 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 them, the TCR-AP reported. 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 ===================== NATIONAL POWER: Saves PHP14 Billion in 2005 on Cost Cuts -------------------------------------------------------- National Power Corporation incurred savings of PHP14 billion in 2005 after implementing strict cost-cutting measures such as economic load dispatching and prioritizing capital expenses, Power Hotline reports. According to figures released by the Company, economic load dispatching created the biggest savings at PHP9.88 billion. In economic load dispatching, efficient power plants with lower fuel costs are dispatched first in order to lessen the use of the more expensive plants. National Power also saved PHP3.83 billion by focusing on urgent key capex requirements necessary to maintain operational capability and efficiency of the Company's power plants. The rest of the savings generated consists of: * PHP199.22 million from the reduction of operating expenses, including strict limitations on foreign travels and training, and other controllable expenditures; * PHP66 million from the adoption of the electronic bidding system, which enabled the Company to secure competitive tenders for its fuel and materials or supplies requirements; and * PHP44.29 million from the maximized use of local coal by blending it with imported coal. The Company has yet to include savings from its reduced contract obligations with independent power producers and increased operational efficiency of its power plants, which in 2004 garnered savings of PHP8.06 billion and PHP583 million. About National Power Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company has begun selling off its generation assets to help pay for the utility's estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The Company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16 million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of an improved fuel mix and better fuel prices. NATIONAL POWER: To Lessen Use of Oil-Fired Power Plants ------------------------------------------------------- The National Power Corporation plans to cut back on the use of its oil-fired power plants in its Visayas and Mindanao power grids due to rising fuel costs, the Philippine Inquirer relates. The Company had also reduced its dependence on oil-powered plants in its Luzon power grid, comprising 2% of power generation in the region last year. The Inquirer reports that oil-based plants accounted for 14% of total power generation in the Visayas grid in 2005, compared to 19% the previous year. Napocor President Cyril del Callar said this was due to the completion of the Leyte-Cebu transmission line by Napocor unit National Transmission Corporation. He added the Company is relying more on hydropower and geothermal power plants to source electricity. National Power, however, was not able to reduce its dependence on oil-powered plants in Mindanao. In fact, oil-fired plants contributed to 32% of total power generation in 2005, compared to 27% in 2004. Mr. Del Callar attributed the increase to dry season in the southern part of the country last year. National Power expects power generation from oil-powered plants to go down to 28% this year, on increased rainfall from the La Nina phenomenon. In 2007, the operations of a 200-megawatt coal-fired power plant would further reduce the dependence on oil-powered generation plants, the Inquirer said. About National Power Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company has begun selling off its generation assets to help pay for the utility's estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The Company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16 million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of an improved fuel mix and better fuel prices. PHILIPPINE AIRLINES: To Purchase Additional Aircraft ---------------------------------------------------- Philippine Airlines Corporation plans to purchase additional wide-bodied aircraft to service its international flights to the United States and Canada, ABS-CBN News says. PAL President Jaime Bautista said that the Company is finalizing the details on the purchase of four new aircraft within this quarter. A December 9, 2006 report by the Troubled Company Reporter - Asia Pacific stated that Philippine Airlines placed a PHP43.11 billion order for nine A320 planes from aircraft manufacturer Airbus, with an option to purchase five more planes. A later TCR-AP report in March 2006 indicated that the Company reported the highest number of passengers for the business year 2005 to 6.8 million, from 6.56 million passengers in 2004. Mr. Bautista attributed the increase in load factor to additional flights to U.S. destinations during peak season, according to the Manila Times. At present, the Times adds, Philippine Airlines flies to 31 international and 20 domestic destinations using nine A320s on its domestic network, eight A330s on regional services across Asia and four A340-300s on long-range routes to the United States. About Philippine Airlines Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. As of 2005, it claims to serve 21 domestic airports and 31 foreign cities. Its main hub is the Ninoy Aquino International Airport in the capital city of Manila. Following labor problems and its failure to settle debts, PAL filed for rehabilitation in June 1998, and is slated to complete its 10-year debt rehabilitation program in 2009. A March 21, 2006 report by the Troubled Company Reporter - Asia Pacific says that the airline company will continue a government-led rehabilitation program even as creditors neither approved nor rejected the program to leave the protection of the Securities and Exchange Commission. As of April 2006, Philippine Airlines has paid PHP51.63 billion of its total PHP113 billion debt to American and European creditors. PAL president Jaime J. Bautista said that they expect to post a profit for the year ended March 31, 2006. RADIO PHILIPPINES: Seeks to Restructure PHP5-Billion Debt --------------------------------------------------------- State-owned Radio Philippines Network-9 has a total debt of PHP5 billion, which makes it more difficult for the government to privatize the Company, the Philippine Inquirer reports. According to BusinessWorld, Privatization and Management Office chief Jose A. R. Bengzon III said that the Government plans to compromise with the network's creditors on a restructuring of its debts, so as to push through with its privatization. Mr. Bengzon added that they want the proceeds of the network's sale to cover its debts and employee retirement benefits. RPN owes money to the Bureau of Internal Revenue, the National Telecommunications Commission, and company employees who have yet to receive their retirement benefits, as well as trade payables. The privatization office's financial adviser, CLSA Exchange Capital, Inc., submitted its valuation report on RPN-9 on February 10, 2006, the Inquirer adds. However, the financial adviser cannot disclose the sale price, as it is yet to be approved by the privatization council of the Government. The Government had initially sought to complete the sale of RPN in the first quarter this year, but later said that the sale would not be possible within that time period due to the Company's debt problem. CLSA advised to put up RPN for sale once its debts had been settled, so as to attract more investors. The privatization office is asking the Bureau of Internal Revenue to waive penalties on unpaid withholding and franchise taxes. RPN owes PHP110 million in withholding taxes and PHP140 million in franchise taxes to BIR, plus interest. BIR commissioner Jose Mario C. Bunag said that they would have to await the formal waiver request, adding it was too early to talk about RPN's tax liabilities. The Government has yet to seek shareholder approval for the proposed sale of RPN. Radio Philippines Network (RPN 9) -- http://www.rpn9.com/-- is a Philippines flagship VHF television network of the Government Communications Group headed by the Press Secretary. RPN launched in the late 1960s as Kanlaon Broadcasting System, under Roberto S. Benedicto. After the late President Ferdinand Marcos sequestered the rights of CBN-9 of the late Eugenio Lopez, Sr., he awarded the Channel 9 frequency through a Presidential Decree. After the 1986 EDSA People Power Revolution, all of the stocks and assets of RPN-9 were sequestered by the Presidential Commission on Good Government. During the time of Former President Corazon Aquino, RPN-9 assets and equipment were turned over to the Government Communications Group. * 100,000 Plan Holders May Not Be Able to Enroll This Year ---------------------------------------------------------- According to the Securities and Exchange Commission, over 100,000 education plan holders may not be able to enroll for school year 2006-2007, which starts in June, as four pre-need firms halted their payments to open-ended plan holders, ABS-CBN News reveals. SEC chairperson Fe Barin said that College Assurance Plans, Inc.; Pacific Plans, Inc.; Platinum Plans, Inc.; and The Professional Group Corporation filed for rehabilitation and suspension of payments with the local courts. This means that the clients of these firms will not be receiving payments for their tuition fees this June. Ms. Barin stated that most of the plan holders were clients of College Assurance Plans. As reported by the Troubled Company Reporter - Asia Pacific on March 20, 2006, plan holders of CAP Philippines requested the Supreme Court on March 16, 2006, to lift a stay order suspending CAP's payments to plan holders. The stay order was entered by the Makati Regional Court in September 2005, allowing CAP to temporarily suspend payments to its plan holder creditors so that it could initiate a rehabilitation. CAP was also prohibited from paying its outstanding liabilities as of Sept. 8, 2005 -- the date it filed a rehabilitation plan. SEC advised the parents of open-ended plan holders to consider enrolling in other schools, instead of the schools listed in their plans, so that they could ask the pre-need firms to provide smaller payments to allow the children to continue their education. The commission is seeking to file criminal charges of violating SEC rules against CAP's owners. The TCR-AP reported on April 28, 2006, that six Pacific Plans plan holders filed criminal suits against the company's owner, Ambassador Alfonso T. Yuchengco, and 24 directors and officials for syndicated estafa. ================= S I N G A P O R E ================= ASIA BIO SYSTEMS: Court Issues Wind-up Order -------------------------------------------- The High Court of the Republic of Singapore, on April 21, 2006, released an order to wind up Asia Bio Systems Holdings Pte Limited. The wind-up petition was lodged by Solicitors BL Tok and Company, in behalf of an unnamed petitioner, on March 23, 2006, the Troubled Company Reporter - Asia Pacific disclosed on April 10, 2006. Contact: The Official Receiver URA centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 CREATIVE TECHNOLOGY: One-time Charges Drive US$114-Mln 3Q Loss -------------------------------------------------------------- In a statement submitted to the Singapore Stock Exchange on May 3, 2006, Creative Technology Limited disclosed that it has registered losses in the third quarter ended March 31, 2006, due to one-time charges and a drop in flash memory prices, which led to an inventory writedown. The consumer electronics maker reported a net loss of US$114.33 million in the three months to March, reversing the year-ago profit of US$15.91 million. The Company said that it took US$41.60 million in goodwill and restructuring charges for unit 3DLabs during the quarter. Excluding the charges as well as a US$2 million investment gain, net loss for the quarter would have been US$74.7 million, Creative said. For the nine months to March, Creative posted a net loss of US$105.43 million, compared to a profit of US$32.53 million in the same period a year earlier. Analysts are forecasting a bleak outlook for the rest of the year despite Creative's plans to streamline its product line as it targets a return to profitability in the second half of calendar 2006, Dow Jones reveals. Brokerage CIMB-GK noted that the business environment for Creative will remain tough at least for the next two quarters. The agency believes the group will remain in the red. While Creative Labs Inc president Craig McHugh hinted at some operational changes ahead, some analysts say Creative will continue losing money unless there is a fundamental revamp of its business model. Kim Eng Securities, which has a "Sell" rating on the stock, said, "Creative should restructure its products and cut off those that it doesn't have a chance to achieve category leadership." A full-text copy of the Company's Third Quarter report is available for free at: http://bankrupt.com/misc/tcrap_creativetechnology050306.pdf About Creative Technology Singapore-based Creative Technology Ltd. makes digital entertainment products, including portable audio players, PC sound cards, graphics accelerator cards, and digital cameras. The Company also makes modems and CD and DVD drives for PCs. Subsidiaries include Cambridge Soundworks, Creative Labs, and E- MU/ENSONIQ. Tough competition in the electronics market has hurt Creative, causing it to incur recurring losses. Aside from its financial issues, the Company is also facing ongoing disputes with several companies in the United States. Creative also periodically receives licensing inquiries and/or threats of potential future patent claims from a variety of entities, including, Lucent Technologies, MPEG LA, Dyancore Holdings, Advanced Audio Devices and Nichia Corporation. FLEXTRONICS INTERNATIONAL: Books Better Results in FY05-06 ---------------------------------------------------------- Flextronics International, on April 27, 2006, unveiled results for the fourth quarter and fiscal year ended March 31, 2006. As reported by the Troubled Company Reporter - Asia Pacific on April 18, 2006, Flextronics entered into a definitive agreement to sell its software development and solutions business to an affiliate of Kohlberg Kravis Roberts & Co. As such, the software business and the semiconductor division, which was divested by the Company in September 2005, are being treated as discontinued operations in its financial statements. The network services division that was also divested by Flextronics in September 2005 does not meet the criteria for discontinued operations treatment under generally accepted accounting principles and as such its historical results remain in continuing operations. Net sales from continuing operations amounted to US$3.5 billion in the fourth quarters ended March 31, 2006, and 2005. Excluding the net sales from the divested Network Services division of US$207 million in the fourth quarter ended March 31, 2005, net sales from continuing operations grew 6% on a year- over-year basis in the fourth quarter ended March 31, 2006. Net sales from continuing operations amounted to US$15.3 billion in the year ended March 31, 2006, as compared to US$15.7 billion in the year ended March 31, 2005. Excluding the net sales from the divested Network Services division of US$275 million and US$766 million in the years ended March 31, 2006, and 2005, respectively, net sales from continuing operations amounted to US$15.0 billion in the years ended March 31, 2006, and 2005. Excluding intangible amortization, restructuring and other charges, net income for the fourth quarter ended March 31, 2006, increased 3%to US$98 million, or US$0.16 diluted per share, compared with US$95 million, or US$0.16 per diluted share, in the year ago quarter. After-tax amortization, restructuring and other charges amounted to US$55 million in the fourth quarter ended March 31, 2006, compared to US$21 million in the year ago quarter. As a result, GAAP net income amounted to US$43 million, or US$0.07 earnings per diluted share, in the fourth quarter ended March 31, 2006, as compared to US$74 million, or US$0.12 per diluted share, in the year ago quarter. Excluding intangible amortization, restructuring and other charges, net income for the year ended March 31, 2006, increased 7% to US$417 million, or US$0.69 per diluted share, compared with US$388 million, or US$0.66 per diluted share, for the year ended March 31, 2005. After-tax amortization, restructuring and other charges amounted to US$276 million in the year ended March 31, 2006, compared to US$49 million in the year ended march 31, 2005. As a result, GAAP net income amounted to US$141 million, or US$0.24 earnings per diluted share, in the year ended March 31, 2006, as compared to US$340 million, or US$0.58 per diluted share, in the year ended March 31, 2005. During the current fiscal year, the Company increased its cash and certificates of deposit by US$129 million to US$1 billion as of March 31, 2006, and reduced its net debt by US$270 million to US$5596 million. The Company generated cash flow from operations to US$591 million in the year ended March 31, 2006. A full-text copy of Flextronics Fourth Quarter and Full-year Report is available for free at: http://bankrupt.com/misc/tcrap_flextronicsinternational050306.pdf About Flextronics Headquartered in Singapore, Flextronics International Ltd. -- http://www.flextronics.com/-- is a leading Electronics Manufacturing Services provider focused on delivering innovative design and manufacturing services to technology companies. Flextronics is a major global operating company that helps customers design, build, ship, and service electronics products through a network of facilities in 32 countries on five continents. * * * As reported in the Troubled Company Reporter on Oct. 31, 2005, Fitch Ratings revised the Rating Outlook on Flextronics International, Ltd., to negative from stable. Flextronics' 'BBB-' issuer default rating and senior unsecured bank credit facility were affirmed, as well as the 'BB+' senior subordinated debt. GREEN LIFE: Court Declares Bankruptcy ------------------------------------- Green Life Marine has been declared bankrupt by the High Court of Singapore on March 23, 2006. The bankruptcy petition was filed on February 14, 2006. Contact: Audrey Lim Senior Assistant Registrar Supreme Court, Singapore HNR TECHNOLOGY: Falls Into Bankruptcy ------------------------------------- HNR Technology Limited has fallen into bankruptcy following an order by the High Court of Singapore on March 23, 2006. The Petition was lodged on February 16, 2006, on grounds of defaulting statutory demand. Contact: Audrey Lim Senior Assistant Registrar Supreme Court, Singapore WINTEK DISPLAY: Creditors' Proofs of Debts Due on May 29 -------------------------------------------------------- The creditors of Wintek Display (Singapore) Pte Limited are required to prove their debts on or before May 29, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Chee Yoh Chuang Lim Lee Meng Liquidators 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 =============== T H A I L A N D =============== NAKORNTHAI STRIP: Submits Recapitalization Plan to SET ------------------------------------------------------ Nakornthai Strip Mill Public Company Limited has announced a recapitalization plan involving THB4 billion in debt restructuring to ensure a US$50-75 million credit line for working capital, the Bangkok Post reports. The steelmaker issued a statement to the Stock Exchange of Thailand saying that it would offer new shares to all existing shareholders. The statement was endorsed by the Company's creditors committee. Nakornthai Strip will offer its Rights at 10:1 -- 10 existing shares for one new -- to 10:2, for 40 satang per share. Shareholders have no rights to oversubscribe. The offering will take place within 60 days of the Central Bankruptcy Court's approval. Nakornthai Strip's creditors had restricted the Company's ability to use assets as collateral against new loans, forcing it to seek equity instead, the Post explains. The Post quotes Sawasdi Horrungruang, Nakornthai Strip's chief executive officer and restructuring planner, as saying that the Company needed additional funds to maximize benefits from rising steel prices. It has continued to lose business opportunities due to insufficient working capital. Mr. Horrungruang adds that it is better for him to own just 2% of the company that he founded rather than see it run poorly. That explains why he decided for a restructuring of the Company. Creditors will convert 40% of the principal debt at 45 satang per share within six months. Half of the conversion will take place within 45 days, while the remaining principal will be converted on an optional basis within 18 months after court approval. Furthermore, past-accrued interest -- loans accumulated up to the date of the last interest payment and not yet paid -- will be changed into non-cash convertible debt after court approval, the Post added. * * * Nakornthai Strip Mill Public Company Limited is a Thailand based manufacturing company. The Group's principal activities are manufacturing and selling of hot-rolled coil steel. These products can be used in downstream industries such as structural steel industry, container industry, steel pipe industry and gas tank industry. THAI AIRWAYS: To Implement Fuel Surcharge Increase on June 1 ------------------------------------------------------------ Thai Airways International Public Company Limited will raise fuel surcharges on June 1, 2006, for most of its flights by as much as 33% to reflect increases in fuel prices, the Bangkok Post reports. The increase varies from route to route as the national carrier has decided to take the charges of other main carriers into account in order to stay competitive. The Post adds that the surcharge increase also represent about 60% of the actual rise in fuel charges so as not to pass the full burden onto passengers. The Post cites Vasing Kittikul, Thai Airways' executive vice- president for commercial affairs, as saying that the airline's fuel bills jumped 40% from October 2005 to February 2006. He noted that oil prices rose steeply in March and April, which had been a cause for concern for the entire global airline industry. Surcharge on long-haul international flights will rise to US$60 to US$65, up from the current charge of US$50 dollars, The Nation relates. Moreover, the reports indicate that most regional flights will remain unchanged at US$25, while surcharges for Middle Eastern services, flights to China and Taiwan, will go up to US$30 from $25. Similarly, the rate on flights to Japan will increase to $35 from $25. Surcharges for domestic flights, will go up to THB400 from THB100 per sector. * * * 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. Erickson Torrevillas, 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***