/raid1/www/Hosts/bankrupt/TCRAP_Public/060518.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 18, 2006, Vol. 9, No. 098
Headlines
A U S T R A L I A & N E W Z E A L A N D
AWB LIMITED: Apology Letter May Be Made Public, Court Rules
BUD-PAK PTY: Members Agree to Wind Up Firm
CHAIRCRAFT PTY: Creditors Opt for Voluntary Liquidation
DJ & GM BRASSELL: Members to Review Wind-up Report
EARSMAN'S TRUCK: Creditors Resolve to Discontinue Operations
EMPLOYMENT NOMINEES: Schedules to Declare Dividend on May 26
FINECREST FURNITURE: Court Orders Wind-up
FUEL HOSPITALITY: Liquidators to Receive Claims Until May 25
HAILTOP PTY: Evan Groombridge Appointed as Receiver
HOWZAT PROPERTY: Wind-up Process Initiated
INTERMISSION INTERACTIVE: Liquidators Present Wind-up Report
JAMES HARDIE: To End Consultancy Contracts with Asbestos Chiefs
LIANNA HOMES: Undertakes Wind-up Process
MILANO HOLDINGS: Decides to Close Operations
MOUNT ATKINSON: Creditors' Proofs of Claim Due on May 31
NATIONAL WORKFORCE: To Distribute Final Dividend on May 26
NELSON BROS: Receiver Cease to Act for Company
PORTERCREST SERVICES: Names Gregory Andrews as Liquidator
P.T. ELECTRICAL: Final Meeting Fixed for Today
REGION HOLDINGS: Members Decide to Wind Up Firm
SAMCOR COMPUTERS: Creditors' Proofs of Claim Due on June 2
SCUSE ME PTY: To Pay Dividend to Creditors
SR & MJ O'NEILL: Liquidator to Discuss Wind-up with Members
TREBBEL PTY: Opts to Shut Down Operations
VAIMUTU RECORDS: Creditors' Proofs of Claim Due on July 28
WATTYL LIMITED: Barloworld Will Divest Bristol Assets
C H I N A & H O N G K O N G
BJ SERVICES: Enters Voluntary Liquidation
CHAMPION CYBERWORK: Court Issues Wind-Up Order
CONIC CARPET: Appoints Official Liquidator
ENITY TECHNOLOGY: High Court Orders Wind-up
ETECH CONTROL: Prepares to Shut Down Business
FAVOUR ART: Releases Dividend Notice
HANG SENG: Names Official Liquidator
HO NAM: Members Name Joint Liquidators
HONG HANG: Set to Wind Up Operations
HONG KONG ASSOCIATION: Final Meeting Fixed on June 19
INCORPORATED OWNERS: Creditors Proofs of Claims Due on May 26
KINGSWAY ENGINEERING: Declares First and Final Dividend
KWG TAX: Members Opt for Voluntary Liquidation
LANAGAN LIMITED: To Hold Shareholders Final Meeting on June 14
MERCURIES-JEANTEX HOLDINGS: To Declare Dividend on May 29
MOULIN GLOBAL: Liquidators Seek Wind-up Over Legal Dispute
NEWKIND INTERNATIONAL: Court Favors Wind-up Petition
NICE HARVEST: Court Orders Winding Up
SPLENDOR LIGHTS: Creditors Agree to Wind Up Operations
TELECOMMUNICATIONS RESEARCH: Names Chan Kin Sang as Liquidator
WELLAGE LIMITED: Set to Close Business
WIDE CHEER: Begins Winding Up Process
YUE FUNG INTERNATIONAL: Former Chairman Found Guilty of Fraud
I N D I A
BHARAT PETROLEUM: Banks on KRL Merger for Recovery
FERTILISERS AND CHEMICALS: Allots INR35 Lakh for Gov't Project
JIK INDUSTRIES: Scheme of Arrangement Awaits Approval
I N D O N E S I A
GARUDA INDONESIA: Gov't Aims to Cut Debt in Restructuring Plan
J A P A N
CHUOAOYAMA PwC: Nippon Telegraph Decides to Retain Auditor
CHUOAOYAMA PwC: Two Firms to Drop Auditing Contracts
* Nine Hotels to Sue Consulting Firm for Data Fabrication
K O R E A
EUGENE SCIENCE: SF Partnership Raises Going Concern Doubt
M A L A Y S I A
APEX EQUITY: Buys Back 24,000 Shares for MYR14,205
BUKIT KATIL: Incurs MYR30-Million Net Loss in 2Q/FY05-06
BUKIT KATIL: Securities Commission Junks Restructuring Scheme
LANKHORST BERHAD: Revenue Drops 26.7% in 4Q/FY05
LANKHORST BERHAD: Court Extends Restraining Order for 120 Days
METROPLEX BERHAD: Provisional Liquidator Named
METROPLEX BERHAD: Acquires New Subsidiary for MYR2.00
PAN MALAYSIA: Shareholders Pass All EGM Resolutions
PAXELENT CORPORATION: Releases Audited Fourth Quarter Results
PROTON HOLDINGS: Finance Sec. Says Car Industry Still Profitable
SUREMAX GROUP: Unit Receives Summons and Statement of Claim
TENCO BERHAD: Triggers Two Criteria of Practice Note 17
TRU-TECH HOLDINGS: Posts Unaudited MYR3-Million Net Loss in 1Q
P H I L I P P I N E S
MANILA ELECTRIC: ERC Considers Legal Barriers to Settlement
PHILCOMSAT HOLDINGS: Has Not Paid Out Dividends for Two Years
PHILCOMSAT HOLDINGS: PCGG Sues Shareholder for Selling Assets
S I N G A P O R E
ACCORD CUSTOMER: Updates on Group Restructuring
MAE ENGINEERING: Creditors Continue to Support Business
OVERSEAS STAR: Court Hears Wind-up Petition
SSA GLOBAL: Inks US$1.3 Billion Merger Deal with Infor
WAH YUEN: Intends to Declare Dividend on May 29
T H A I L A N D
NFC FERTILIZER: Posted THB101 Million Net Loss for 1Q
- - - - - - - -
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A U S T R A L I A & N E W Z E A L A N D
============================================
AWB LIMITED: Apology Letter May Be Made Public, Court Rules
-----------------------------------------------------------
The Federal Court of Australia has rejected AWB Limited's
application to prevent a draft letter of apology pertaining to
the Iraqi kickback scam from being released to the public, The
Australian Associated Press relates.
As reported in the Troubled Company Reporter - Asia Pacific on
March 28, 2006, AWB tapped United States-based public relations
and crisis specialist, Peter Sandman, who drafted the letter of
apology in December 2005 to the Australian people in order to
counter any corporate scandal relating to the kickback payments
that AWB allegedly made to Saddam Hussein's regime through the
United Nations oil-for-food program in Iraq.
However, according to the TCR-AP report, former AWB managing
director Andrew Lindberg and the AWB Board junked the apology
plan and decided to go to the Cole Inquiry instead and profess
ignorance and innocence. Mr. Lindberg, who has since resigned,
had told the Cole Commission that he had no knowledge of the
Iraqi kickbacks or of the sham Jordanian trucking company, Alia,
which was used to funnel the illegal payments.
The AAP recounts that the apology document was given to the
inquiry by AWB on March 24, 2006, but lawyers for the wheat
exporter successfully sought a non-publication order, stopping
the media from reporting the contents. The non-publication
order was then revoked by Commissioner Terrence Cole, who ruled
that the apology was not covered by legal professional
privilege.
AWB challenged the decision in the Federal Court, arguing that
the apology letter was given to the Cole Inquiry in error, was
professionally privileged and should be returned to the Company.
Subsequently, Justice Neil Young upheld Commissioner Cole's
ruling and said that the document can be made public. He added
that he was not satisfied that the letter was brought into
existence for the dominant purpose of obtaining legal advice.
Despite the Court's ruling, the letter cannot be made public
unless Commissioner Cole makes a decision concerning a non-
publication order on the document.
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.
BUD-PAK PTY: Members Agree to Wind Up Firm
------------------------------------------
At a general meeting of Bud-Pak Pty Ltd held on March 30, 2006,
members agreed to wind up the Company's operations voluntarily.
Robyn Erskine and Peter Goodin were subsequently appointed as
liquidators.
Contact: Robyn Erskine
Peter Goodin
Liquidators
Brooke Bird & Co. Chartered Accountants
471 Riversdale Road, Hawthorn East 3123
Australia
Telephone (03) 9882 6666
CHAIRCRAFT PTY: Creditors Opt for Voluntary Liquidation
-------------------------------------------------------
Creditors of Chaircraft Pty Limited converged on March 30, 2006,
and decided to wind up the Company's business operations
voluntarily.
Danny Vrkic was named liquidator to manage the wind-up
activities.
Contact: Danny Vrkic
Liquidator
Jirsch Sutherland & Co. - Wollongong
Chartered Accountants
Level 3, 6-8 Regent Street, Wollongong
New South Wales 2500, Australia
Telephone: (02) 4225 2545
Fax: (02) 4225 2546
DJ & GM BRASSELL: Members to Review Wind-up Report
--------------------------------------------------
A final meeting will of the members of DJ & GM Brassell
Investments Pty Limited will be held today, May 18, 2006.
During the meeting, Liquidators Schon G. Condon and Bruce
Gleeson will present a report on the Company's wind-up and
property disposal.
Contact: Schon G. Condon RFD
Bruce Gleeson
Joint Liquidators
c/o Jones Condon Chartered Accountants
Level 1 34 Charles Street
Parramatta, New South Wales
Australia
Telephone: (02) 9893 9499
EARSMAN'S TRUCK: Creditors Resolve to Discontinue Operations
------------------------------------------------------------
At a meting on March 31, 2006, the creditors of Earsman's Truck
Center Pty Limited decided to liquidate the Company's business
operations, and appoint K. L. Sutherland as liquidator.
Contact: K. L. Sutherland
Liquidator
Bent & Cougle Pty Limited Chartered Accountants
Level 5, 332 St. Kilda Road
Melbourne, Victoria 3004
Australia
EMPLOYMENT NOMINEES: Schedules to Declare Dividend on May 26
------------------------------------------------------------
Employment Nominees Pty Limited will declare its first and final
dividend on May 26, 2006.
Creditors who were unable to submit their proofs of claim are
excluded from benefiting in the dividend distribution.
Contact: Peter P. Krejci
Liquidator
GHK Green Krejci
Level 9, 179 Elizabeth Street,
Sydney, New South Wales 2000
Australia
FINECREST FURNITURE: Court Orders Wind-up
-----------------------------------------
The Federal Court of Australia, on March 30, 2006, issued an
order to wind up the operations of Finecrest Furniture Pty
Limited and appoint Steven Nicols as liquidator.
Contact: Steven Nicols
Liquidator
Level 2, 350 Kent Street
Sydney, New South Wales 2000
Australia
FUEL HOSPITALITY: Liquidators to Receive Claims Until May 25
------------------------------------------------------------
Grant Robert Graham and Brendon James Gibson, joint and several
liquidators of Fuel Hospitality Ltd, require the Company's
creditors to submit their proofs of claim on or before May 25,
2006.
Contact: G.R Graham & B.J. Gibson
Ferrier Hodgson & Co
Level 16, Tower Centre
45 queen Street, Auckland
New Zealand
Telephone: (09) 307 7865
Fax: (09) 377 7794
HAILTOP PTY: Evan Groombridge Appointed as Receiver
---------------------------------------------------
Evan Philip Groombridge was, on March 22, 2006, appointed as
receiver and manager of the assets and undertaking of Hailtop
Pty Limited.
Contact: Evan P. Groombridge
Receiver
Level 10, South Tower, 1 Railway Street
Chatswood, New South Wales
Australia
HOWZAT PROPERTY: Wind-up Process Initiated
------------------------------------------
At a general meeting held on March 31, 2006, the members of
Howzat Property Services Pty Limited agreed to voluntarily wind
up the Company's operations.
M. F. Cooper was appointed as liquidator at a creditors' meeting
held on the same day.
Contact: M. F. Cooper
Liquidator
Frasers Insolvency Advisory
Level 9, 99 Elizabeth Street
Sydney, New South Wales 2000
Australia
INTERMISSION INTERACTIVE: Liquidators Present Wind-up Report
------------------------------------------------------------
The members and creditors of Intermission Interactive Pty
Limited will hold a final meeting today, May 18, 2006, to
receive the liquidators' report on the manner of the Company's
winding up and property disposal.
Contact: Schon G. Condon RFD
Bruce Gleeson
c/o Jones Condon Chartered Accountants
Level 1, 34 Charles Street
Parramatta, New South Wales
Australia
Telephone: (02) 9893 9499
JAMES HARDIE: To End Consultancy Contracts with Asbestos Chiefs
---------------------------------------------------------------
James Hardie Industries Limited disclosed that it will no longer
renew its consultancy contracts with former chief executive
officer Peter Macdonald and former chief financial officer Peter
Shafron when they expire in September, The Australian says.
The Australian says that James Hardie's current CEO, Louis
Gries, announced the move at a briefing in Sydney to discuss the
Company's fourth-quarter results. It came as James Hardie took
other steps to put the asbestos issue behind it, absorbing the
liability for an expected AU$1.4 billion compensation package on
to its books, and hinting that it might move out of its tax
sanctuary in the Netherlands.
According to the report, Mr. Macdonald and Mr. Shafron are the
two James Hardie executives most closely associated with its
asbestos funding scandal. Both of them resigned in 2004 after
the NSW special commission, led by Commissioner David Jackson,
found evidence related to the Company's creation of an
independent trust in 2001 to cover its future asbestos
liabilities with what turned out to be a shortfall of more than
AU$1 billion. Mr. Mcdonald and Mr. Shafron have denied any
wrongdoing.
Commissioner Jackson found out that Mr. Macdonald engaged in
deceptive or misleading conduct, which, if he were charged and
convicted, could lead to an eight-year jail term. The
Australian Securities & Investments Commission is investigating
Mr. Jackson's allegations.
The Australian recounts that Mr. Macdonald and Mr. Shafron
resigned with retainers and consultancy contracts. The former
CEO received a AU$9 million payout and a monthly retainer
starting at AU$12,000.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives. On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring. James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL. Effective as of
November 1998, JHIL contributed its fibre cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.
On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001. In connection with the 2001
Reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV. Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.
The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established. By 2004, James
Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty
Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around
150 defendants in asbestos litigation, and based on the
Foundation's own figures, they account for US$1,000,000,000 of
the predicted US$6,000,000,000 future asbestos liabilities in
Australia. Although James Hardie stopped making asbestos
products in 1987, the average 35-year latency of mesothelioma,
an asbestos-related disease, means asbestos compensation funds
will be needed until mid-century. In a 2005 report by a
Company-hired actuary from KPMG, it was predicted that 4,915
Australians would contract mesothelioma from exposure to Hardie
products in the coming decades. When less serious forms of
asbestos-related disease are included, James Hardie should
expect to compensate 8,725 victims.
On December 1, 2005, the Company announced that the NSW
Government and a wholly owned Australian subsidiary of the
Company -- LGTDD Pty Ltd -- had entered into a conditional
agreement to provide long-term funding to a special purpose fund
that will provide compensation for Australian asbestos-related
personal injury claims against certain former James Hardie
asbestos companies. The amount of the asbestos provision of
AU$1 billion, at March 31, 2006, is the Company's best estimate
of the probable outcome, which estimate includes an actuarial
calculation prepared by KPMG Actuaries Pty Ltd of the projected
future cash outflows, undiscounted and uninflated, and the
anticipated tax deduction arising from Australian legislation
which came into force on April 6, 2006. The Company's ability
to obtain this tax deduction under legislation remains the
subject of an ongoing application to the Australian Tax Office.
* * *
For the first time, and as indicated in the Troubled Company
Reporter - Asia Pacific on May 16, 2006, James Hardie brought
the asbestos compensation liability on to its books. The
AU$926.6 million net provision reflected in the Company's fourth
quarter and full year financial report for the period ended
March 31, 2006, is the current actuarial estimate of the AU$1.4
billion Hardie expects to pay future victims of its asbestos
products over the next 40 years, minus a tax deduction of 30%.
The company said it made the provision because it now appeared
more likely that the Australian Taxation Office would provide it
with the tax deduction legislation passed last month. The
provision for compensation meant that James Hardie reported an
operating loss of US$506.7 million for the year to March 31,
2006, compared with a US$127.9 million profit in 2004-05.
LIANNA HOMES: Undertakes Wind-up Process
----------------------------------------
The members of Lianna Homes Pty Limited decided at a general
meeting on March 30, 2006, that it is appropriate and necessary
for the Company to shut down its business operations.
In this regard, Robyn Erskine and Peter Goodin were appointed as
liquidators.
Contact: Robyn Erskine
Peter Goodin
Liquidators
Brooke Bird & Co. Chartered Accountants
471 Riversdale Road, Hawthorn East 3123
Australia
Telephone (03) 9882 6666
MILANO HOLDINGS: Decides to Close Operations
--------------------------------------------
The members of Milano Holdings Pty Limited resolved on March 31,
2006, to close the Company's business operations and distribute
the proceeds of its assets disposal.
N. W. Curwood was consequently appointed as liquidator.
Contact: N. W. Curwood
Liquidator
Level 5, 456 Lonsdale Street
Melbourne, Australia
MOUNT ATKINSON: Creditors' Proofs of Claim Due on May 31
--------------------------------------------------------
Creditors of Mount Atkinson Pty Limited are required to prove
their claims until May 31, 2006, to take part in the Company's
dividend distribution.
Contact: B. A. Secatore
Liquidator
Bentleys MRI
114 William Street, Melbourne
Victoria 3000, Australia
NATIONAL WORKFORCE: To Distribute Final Dividend on May 26
----------------------------------------------------------
National Workforce Pty Limited will distribute its final
dividend on May 26, 2006, to the exclusion of creditors who were
unable to prove their claims.
Contact: B. A. Secatore
Liquidator
Bentleys MRI
114 William Street, Melbourne
Victoria 3000, Australia
NELSON BROS: Receiver Cease to Act for Company
----------------------------------------------
Austin Robert Meerten Taylor had ceased to act as the receiver
and manager of the property of Nelson Bros Pty Limited on
March 27, 2006.
PORTERCREST SERVICES: Names Gregory Andrews as Liquidator
---------------------------------------------------------
The members and creditors of Portercrest Services Pty Limited
convened on March 30, 2006, and decided to wind up the Company's
operations voluntarily.
Gregory Stuart Andrews was subsequently appointed as liquidator.
Contact: Gregory S. Andrews
Liquidator
G. S. Andrews & Associates
22 Drummond Street, Carlton
Victoria 3053, Australia
Telephone: (03) 9662 2666
Fax: (03) 9662 9544
P.T. ELECTRICAL: Final Meeting Fixed for Today
----------------------------------------------
A final meeting of the members and creditors of P.T. Electrical
Pty Limited will be held today, May 18, 2006.
During the meeting, members and creditors will get an account of
the manner of the Company's wind-up and property disposal from
Liquidator Richard J. Cauchi.
Contact: Richard J. Cauchi
Liquidator
CJL Partners
Level 3, 180 Flinders Lane
Melbourne, Victoria 3000
Australia
Telephone 9639 4779
Fax: 9639 4773
REGION HOLDINGS: Members Decide to Wind Up Firm
-----------------------------------------------
At a general meeting of Region Holdings Pty Limited on April 1,
2006, members agreed that it is in the Company's best interests
to wind up its operations.
Contact: Julian Kovacs
Liquidator
Stanton Partners
1st Floor, 1 Havelock Street
West Perth, Western Australia 6005
Australia
SAMCOR COMPUTERS: Creditors' Proofs of Claim Due on June 2
----------------------------------------------------------
Samcor Computers Ltd requires its creditors to submit their
proofs of claim to Liquidators Stephen Mark Lawrence and Anthony
John McCullagh on or before June 2, 2006.
Contact: S.M. Lawrence
Horwath Corporate Limited
Auckland, New Zealand
Telephone: (09) 306 3440
Fax: (09) 302 0536
SCUSE ME PTY: To Pay Dividend to Creditors
------------------------------------------
Scuse Me Pty Limited will declare a dividend on May 25, 2006.
Creditors who were not able to prove their claims are excluded
from sharing in the dividend distribution.
Contact: Paul Burness
Liquidator
Worrells Solvency & Forensic Accountants
Level 5 15 Queen Street
Melbourne, Victoria 3000
Telephone: (03) 9613 5524
Fax: (03) 9614 3233
Web site: http://www.worrells.net.au/
SR & MJ O'NEILL: Liquidator to Discuss Wind-up with Members
-----------------------------------------------------------
The members of SR & MJ O'Neill Nominees Pty Limited will convene
today, May 18, 2006, to receive Liquidator Mervyn J. Kitay's
account regarding the Company's completed wind-up and disposal
of the Company's property.
Contact: Mervyn J. Kitay
Liquidator
Grant Thornton Western Australian Partnership
Level 6, 256 St. Georges Terrace
Perth, Western Australia 6000
Australia
Telephone: +61 8 9481 1448
TREBBEL PTY: Opts to Shut Down Operations
-----------------------------------------
The members of Trebbel Pty Limited decided on March 30, 2006, to
close the Company's business operations, and name Gregory
Maloney and Will Colwell as joint and several liquidators.
Contact: Will Colwell
Gregory Maloney
Liquidators
c/o Ferrier Hodgson (Queensland)
145 Eagle Street, Brisbane
Queensland 4000, Australia
VAIMUTU RECORDS: Creditors' Proofs of Claim Due on July 28
----------------------------------------------------------
Vaimutu Records Ltd requires its creditors to submit their
proofs of claim to Liquidators Vivian Judith Fatupaito and
Richard Dale Agnew on or before July 28, 2006.
Contact: V.J. Fatupaito
PricewaterhouseCoopers
Level 8, PricewaterhouseCoopers Tower
188 Quay Street, Auckland
New Zealand
Telephone: (09) 355 8000
Fax: (09) 355 8013
WATTYL LIMITED: Barloworld Will Divest Bristol Assets
-----------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on May 1,
2006, that Barloworld Limited has been considering divesting
certain assets to win the Australian Competition and Consumer
Commission's approval of its proposed takeover of Wattyl
Limited.
According to the TCR-AP report, Barloworld had given the ACCC a
list of the assets that it will divest if it took over Wattyl.
The divestment had been speculated to include Barloworld's 80-
store Bristol retail paint chain, which the South African
paintmaker did not confirm.
Barloworld -- the owner of Taubmans and Bristols Paints -- had
offered to acquire Wattyl for AU$321 million, offering a
AU$3.80-per-share price. However, in March 2006, the ACCC had
expressed concerns that a Barloworld takeover of Wattyl, which
would merge the number two and number three paintmakers, would
substantially reduce competition. Yet, Barloworld is firm in
its belief that a merger with Wattyl would be beneficial to the
industry and the consumers. Talks between both parties are
still ongoing.
In an update, the Sydney Morning Herald relates that Barloworld
has indeed offered to sell its Bristol brand in order to win the
regulator's approval of the takeover plan. The Bristol assets
to be sold would include the brand's paints, up to 50 paint and
decorator shops, distribution rights and, if necessary, a
factory in Victoria.
The Sydney Herald cites Barloworld as stating that it would also
allow the buyer to sell Bristol paints at shops owned by the
Johannesburg-based company.
The ACCC had indicated that it would make its decision on
Barloworld's takeover bid by June 15, 2006. Barloworld is the
only bidder left for Wattyl as Allco Equity Partners dropped its
AU$274 million hostile takeover offer last month.
About Wattyl Limited
Headquartered in New South Wales, Australia, Wattyl Limited --
http://www.wattyl.com.au/-- is engaged in the manufacture and
marketing of paints, resins and related products. In June 2005,
Wattyl commenced its business and finance restructuring program,
which includes the re-allocation of its marketing budget, cost
reduction and increased expenditure on strengthening Wattyl's
brands and positioning the business for future growth. In
December 2005, Allco Equity Partners made a AU$285-million
hostile takeover bid for Wattyl. This was later rejected.
South Africa's Baroloworld Limited made a friendly counter-offer
of AU$321 million, which won the support of Wattyl's Board.
================================
C H I N A & H O N G K O N G
================================
BJ SERVICES: Enters Voluntary Liquidation
-----------------------------------------
On May 8, 2006, members of BJ Services Company (Hong Kong)
Limited resolved that the Company be wound up voluntarily.
Philip Brendan Gilligan of 7th Floor, Alexandra House, 18 Chater
Road, in Central, Hong Kong, was subsequently appointed to
liquidate and distribute the Company's assets.
CHAMPION CYBERWORK: Court Issues Wind-Up Order
----------------------------------------------
Champion Cyberwork Limited presented a petition to wind up its
operations.
On February 23, 2006, the High Court of the Hong Kong Special
Administrative Region Court of First Instance entered a wind-up
order pertaining to the Company.
Contact: Yeung Chi Wai
Liquidator
Rooms 301-2
Lucky Building
39 Wellington Street
Central, Hong Kong
CONIC CARPET: Appoints Official Liquidator
------------------------------------------
Yeung Chi Wai was appointed as official liquidator of Conic
Carpet Limited.
The appointment was made official by a resolution passed on
May 6, 2006.
Contact: Yeung Chi Wai
Liquidator
Rooms 301-2
Lucky Building
39 Wellington Street
Central, Hong Kong
ENITY TECHNOLOGY: High Court Orders Wind-up
-------------------------------------------
The High Court of the Hong Kong Special Administrative Region
Court of First Instance, on February 23, 2006, entered a wind-up
order for Enity Technology Limited.
Contact: Pui Chiu Wing
Liquidator
805 Capitol Centre
5-19 Jardine's Bazaar
Causeway Bay
Hong Kong
ETECH CONTROL: Prepares to Shut Down Business
---------------------------------------------
Etech Control Company Limited has received a wind-up order from
the High Court of the Hong Kong Special Administrative Region
Court of First Instance on April 26, 2006.
The Troubled Company Reporter - Asia Pacific has reported on
March 3, 2006, that Chow Kin Man filed a petition to wind up the
company.
FAVOUR ART: Releases Dividend Notice
------------------------------------
Favour Art Development Limited has declared a dividend of 4.6%
and is payable on or after May 12, 2006.
Contact: Victor Chiu
Joint and Several Liquidators
Room 502, Dina House
11 Duddell Street
Central, Hong Kong
HANG SENG: Names Official Liquidator
------------------------------------
The members of Hang Seng Credit Card Limited passed a special
resolution on April 28, 2006, to wind up the company and appoint
Chan Shet Hung, Suzanne and Li Chi Chung as joint liquidators.
At the meeting, members decided that an audit of the
Liquidator's accounts is not required by virtue of an ordinary
resolution.
Contact: Chan Shet Hung, Suzanne
Li Chi Chung
Joint Liquidators
83 Des Voeux Road Central
Hong Kong
HO NAM: Members Name Joint Liquidators
--------------------------------------
Members of Ho Nam Marine Trading Company Limited appointed Wong
Man Chung, Francis, and Wong Wai Man, Cliff, as joint
liquidators through a special resolution passed by members on
May 2, 2006.
Contact: Wong Man Chung, Francis
Wong Wai Man, Cliff
Joint and Several Liquidators
19th Floor, No. 3 Lockhart Road
Wanchai, Hong Kong
HONG HANG: Set to Wind Up Operations
------------------------------------
The High Court of the Hong Kong Special Administrative Region
Court of First Instance, on April 26, 2006, ordered the wind-up
of Hong Hang Holdings Limited.
As reported by the Troubled Company Reporter - Asia Pacific,
Speed Success Investment Limited presented the petition on
February 13, 2006.
Contact: Messrs. M. L. Tam & Co.
Solicitors for the Petitioner
Unit B, 11th Floor
Two Chinachem Plaza
No. 135 dex Voeux Road Central
Central, Hong Kong
Telephone: 2111 0096
Fax: 2111 0053
HONG KONG ASSOCIATION: Final Meeting Fixed on June 19
-----------------------------------------------------
Members of the Hong Kong Association For Environmental
Preservation in China (Foundation) Limited will hold a final
meeting on June 19, 2006, for the parties to receive an account
of the manner of the Company's wind-up and property disposal
from Liquidator Tam Chun Ip.
Contact: Tam Chun Ip
Liquidator
Suite No. A, 11th Floor
Ritz Plaza 122 Austin Road
Tsimshatsui Kowloon
Hong Kong
INCORPORATED OWNERS: Creditors Proofs of Claims Due on May 26
-------------------------------------------------------------
The Incorporated Owners of Foremost Building notifies parties-
in-interest of an intended dividend to be declared at the High
Court of Hong Kong Special Administrative Region.
Creditors are required to submit their proofs of claim by
May 26, 2006, to:
Messrs Bruno Arboit
Simon Blade
Liquidators
1203-1213 China Merchants Tower
Shun Tak Centre
168-200 Connaught
Road Central, Hong Kong
KINGSWAY ENGINEERING: Declares First and Final Dividend
-------------------------------------------------------
Kingsway Engineering Limited has declared a first and final
dividend of 0.036% on May 16, 2006.
Contact: E.T. O'Connell
Official Receiver & Liquidator
HKSAR-Official Receiver's Office
10th Floor, Queensway Government Offices,
66 Queensway, Hong Kong
Telephone: 2867 2426
Fax: 3105 1814
e-mail: eamonn@oro.gov.hks
KWG TAX: Members Opt for Voluntary Liquidation
----------------------------------------------
Members of KWG Tax Services Limited resolved on May 3, 2006,
that the Company's operations be wound up voluntarily.
Subsequently, Heng Poi Cher was appointed as the company's
liquidator.
Contact: Heng Poi Cher
4404 China Resources Building
26 Harbour Road, Wanchai
Hong Kong
LANAGAN LIMITED: To Hold Shareholders Final Meeting on June 14
--------------------------------------------------------------
A final general meeting of the shareholders of Lanagan Limited
will be held on June 14, 2006, at 20/F, Prince's Building,
Central, Hong Kong.
During the meeting, members will receive Liquidator Rainier Hok
Chung Lam's final account showing how the Company was wound up
and how its property was disposed of.
MERCURIES-JEANTEX HOLDINGS: To Declare Dividend on May 29
---------------------------------------------------------
Mercuries-Jeantex Holdings Limited notifies parties-in-interest
of an intended dividend to be declared at the High Court of Hong
Kong Special Administrative Region.
Creditors are required to submit their proofs of claim by
May 29, 2006, to:
John J. Toohey
Anthony Mitchell
Joint Liquidators
20th Floor, Prince's
Building Central
Hong Kong
MOULIN GLOBAL: Liquidators Seek Wind-up Over Legal Dispute
----------------------------------------------------------
Eye wear firm Moulin Global Eyecare Holdings is facing wind-up
action by its provisional liquidators due to a bitter dispute
with the Company's former in-house counsel, South China Morning
Post relates.
Provisional Liquidators Roderick Sutton and Desmond Chiong Chung
Seng of Ferrier Hodgson expect to conclude the wind-up process
next month, South China Post reveals. The Liquidators were
appointed last year following a request from HSBC, which is
claiming over HKD2 billion from Moulin.
According to the report, the legal brawl started when Moulin's
former in-house lawyer, Anthony Dichiara, lodged a USD8.7-
billion suit against the Company and its subsidiaries before a
United Stated District Court. Mr. Dichiara claims that he is
legally entitled to 3% of ECCA as a compensation for his hard
work.
Mr. Sutton, however, insisted that, "any agreement to grant Mr.
DiChiara any ECCA stock was invalid because it was never
approved by Moulin's board and no ECCA shares were ever
transferred to him".
The U.S. Court was scheduled to decide on June 9, 2006 whether
to continue the case or transfer it to Hong Kong.
* * *
Based in Hong Kong, Moulin Global Eyecare Holdings
--http://www.moulin.com.hk-- was once the world's third-largest
maker of eyeglasses until it went into liquidation last year.
The primary activity of the Company was manufacturing and
designing ophthalmic goods, the Company was also engaged in
distribution and retailing of optical frames and sunglasses.
The Company owes creditors in Hong Kong over HKD2.4 billion.
NEWKIND INTERNATIONAL: Court Favors Wind-up Petition
----------------------------------------------------
Newkind International Limited has presented a petition to wind
up its operations.
On February 23, 2006, the High Court of the Hong Kong Special
Administrative Region Court of First Instance released an order
to wind up the Company.
Contact: Pui Chiu Wing
Liquidator
805 Capitol Centre
5-19 Jardine's Bazaar
Causeway Bay
Hong Kong
NICE HARVEST: Court Orders Winding Up
-------------------------------------
On February 23, 2006, the High Court of the Hong Kong Special
Administrative Region Court of First Instance issued a wind-up
order for Nice Harvest Knitters Limited.
Contact: Yeung Chi Wai
Liquidator
Rooms 301-2
Lucky Building
39 Wellington Street
Central, Hong Kong
SPLENDOR LIGHTS: Creditors Agree to Wind Up Operations
------------------------------------------------------
At a meeting held on March 27, 2006, the members of Splendor
Lights and Craft Limited agreed that the Company be wound up
voluntarily.
Fung Kwok Leung was subsequently appointed to oversee the
Company's liquidation.
Contact: Fung Kwok Leung
Liquidator
704 Tung Wai Commercial Building
109-111 Gloucester Road
Wanchai, Hong Kong
TELECOMMUNICATIONS RESEARCH: Names Chan Kin Sang as Liquidator
--------------------------------------------------------------
By the virtue of a Special Resolution passed on May 3, 2006, by
the Telecommunications Research & Consulting Limited, Chan Kin
Sang was appointed as the Company's liquidator.
Mr. Chan is also authorized to distribute the assets of the
Company to the members as they may think fit.
Creditors are required to submit their proofs of claim on or
before May 13, 2006.
Contact: Chan Kin Sang, Kenson
Liquidator
Unit A, 6/F.,
Two Chinachem Plaza
68 Connaught Road Central
Hong Kong
WELLAGE LIMITED: Set to Close Business
--------------------------------------
On February 23, 2006, the High Court of the Hong Kong Special
Administrative Region Court of First Instance entered a wind-up
order pertaining to Wellage Limited.
Contact: Yeung Chi Wai
Liquidator
Rooms 301-2
Lucky Building
39 Wellington Street
Central, Hong Kong
WIDE CHEER: Begins Winding Up Process
-------------------------------------
Wide Cheer Corporation Limited has received a wind-up order from
the High Court of the Hong Kong Special Administrative Region
Court of First Instance on February 23, 2006.
Contact: Yeung Chi Wai
Liquidator
Rooms 301-2
Lucky Building
39 Wellington Street
Central, Hong Kong
YUE FUNG INTERNATIONAL: Former Chairman Found Guilty of Fraud
-------------------------------------------------------------
The former chairman of a delisted company was on May 16, 2006,
convicted at the District Court for his role in a $94.6 million
Letters of Credit fraud based on bogus business transactions,
the Independent Commission Against Corruption reveals in a press
release.
Lee Wing-kan, former chairman of Yue Fung International Group
Holding Limited, was found guilty of three counts of conspiracy
to defraud.
The Court adjourned the case until May 19, 2006 for sentence,
Deputy Judge David Dufton also ordered that the defendant
remains in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC
enquiries revealed the fraud offences.
The court heard that between December 1998 and January 2002, Mr.
Lee conspired with other persons to defraud a number of banks by
dishonestly causing Yue Fung to apply for 37 L/Cs and six import
loans in favor of a number of companies.
In order to support the applications, they submitted false
documents to the banks, purportedly evidencing genuine
underlying transactions in relation to the purchase and resale
of electronic parts between Yue Fung and those companies.
Investigations revealed that some of those companies were either
set up purely for the arrangement of bogus transactions, or had
no business dealings with Yue Fung.
As a result of the fraudulent scam, the banks released a total
of over $94.6 million to those companies under the L/Cs and
import loans.
The court heard that the funds were subsequently reverted to Yue
Fung.
The prosecution was on May 16, 2006, represented by Walter Lau,
counsel on fiat, assisted by ICAC officer Keith Kwok.
* * *
Located at 9 Hoi Shing Road Tsuen Wan, New Territories, Hong
Kong, Yue Fung International Group Holding Ltd's
-- http://www.yue-fung.com-- principal activities are
manufacturing and selling of electronic calculators, personal
digital assistants, digital cameras and other electronic
products. Yue Fung is a delisted Company in the Hong Kong Stock
Exchange.
=========
I N D I A
=========
BHARAT PETROLEUM: Banks on KRL Merger for Recovery
--------------------------------------------------
Bharat Petroleum Corporation Limited expects its forthcoming
tie-up with Kochi Refineries Limited to bring in the needed
financial resources to offset under-recoveries that the oil firm
has been suffering since last year, Business Line reveals.
The proposed merger scheme, which is yet to be cleared by the
Department of Company Affairs, would award Bharat Petroleum with
roughly 3.37 crore shares through a 2.25:1 swap ratio, which if
offloaded in the market would bring home close to INR1,410 crore
at current prices, the report says.
According to Business Times, Bharat Petroleum, which is living
only on short-term borrowings to meet its working capital
requirements, needs a fresh capital infusion.
The worsening situation in relation to under-recoveries of oil
costs has made the Company more vulnerable that its debt-equity
ratio has increased from a relatively healthy 0.6% to over 1.1%
since March 31, 2005, Zee News adds.
Although the Company has headroom to borrow until debt-equity
touches 1.5, company sources admit that the situation is running
the danger of downgrading credit ratings, which would in turn
make borrowings costlier. The impact is relatively higher on
the interest payments as the entire INR2,500-3,000 crore
additional borrowings during the period are short-term in nature
and the average interest cost has gone up by at least one per
cent. Total borrowings now stand between INR6,500 crore and
INR7,000 crore.
Sources told Business Times that the delay in devising a
mechanism to tackle the issue of mounting under-recoveries of
state oil firms may pose financial constraints that can hamper
Bharat Petroleum's growth plans.
About Bharat Petroleum
Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene. During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities. There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country. The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.
Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates. On September 23, 2005, the Company delisted its shares
from the Madras Stock Exchange Ltd, Calcutta Stock Exchange
Association Ltd and Delhi Stock Exchange Association Ltd. In
November 2005, Bharat Petroleum's November 2004 profits
dissipated and the Company registered a INR203-crore (US$45.7
million) net loss. By the end of the third quarter ending
December 31, 2005, the Company posted a US$231 million net loss.
In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted, after an initial merger bid was disapproved in
September 2005. Even with its aggressive expansion moves,
Bharat Petroleum has decided to put aside a US$1.4 million
dollar expansion project due to losses brought about by oil
subsidies, as the Company -- and the entire industry -- suffered
huge losses and has difficulty implementing expansion activities
due to the Government's refusal to allow oil companies to raise
fuel prices despite global crude oil price crossing US$70 a
barrel. On February 20, 2006, the Petroleum Ministry has
proposed an increase of INR3 per liter each in petrol and diesel
prices and INR20 per cylinder increase in liquefied petroleum
gas price to save the oil companies from going bankrupt.
FERTILISERS AND CHEMICALS: Allots INR35 Lakh for Gov't Project
--------------------------------------------------------------
Fertilisers and Chemicals Travancore Limited handed over INR35
lakh to the Kerala Pollution Control Board in compliance with a
Supreme Court directive, Business Line reports.
The amount represents the Company's share for free distribution
of drinking water through pipelines to about 2,000 families in
five wards of Eloor Panchayat.
Although FACT has been supplying free drinking water to a number
of residents around its production units at Udyogmandal, it
readily agreed to the Supreme Court's mandate to show that it is
a socially responsible public sector.
In connection with this, FACT also sold 50 acres of land to the
Kerala Government at a very low rate as suggested by the Supreme
Court monitoring committee, the Troubled Company Reporter - Asia
Pacific reported on May 15, 2006. The land will be used for the
establishment of a common industrial waste treatment and
disposal facility.
Despite having a modern pollution control facility and waste
disposal arrangement, FACT decided to support the venture in
order to avoid "the wrath of the Committee," TCR-AP added.
About Fertilisers & Chemicals Travancore Limited
Headquartered in Kochi, Kerala, India, Fertilisers & Chemicals
Travancore Limited is principally engaged in the manufacturing
and distribution of fertilizers and chemicals. Its products
include ammonium sulphate, factomfos, urea and caprolactam. The
Company operates solely in the domestic market. The Company,
which had been making profits for over a decade, started
reporting losses from 1998-99 onwards due to the steep rise in
cost of raw materials like naphtha, benzene, sulphur and rock
phosphate. There were also uneconomic realization from sales
and the company had to stop production because of a liquidity
crunch. In 2004, the Company was referred to the Board for
Industrial and Financial Reconstruction as a potentially sick
unit. But FACT is on its way to recovery after the Government
approved its revamp program.
JIK INDUSTRIES: Scheme of Arrangement Awaits Approval
-----------------------------------------------------
Pursuant to an order by the High Court of Bombay, separate
meetings of equity shareholders and creditors of JIK Industries
Limited will be held on June 10, 2006.
During the meeting, the creditors and shareholders will
consider, and if thought fit, approve the Scheme of Arrangement
entered into by the Company and several creditors.
As reported by the Troubled Company Reporter - Asia Pacific on
March 9, 2006, the High Court of Bombay has sanctioned the
Scheme of Arrangement between JIK Industries Limited and its
fixed deposit holders, non-convertible debenture holders and
unsecured Creditors.
According to the TCR-AP, the Scheme benefits the Company and all
its concerned stakeholders as it provides a financially
healthier company with a substantially reduced debt burden. It
also aligns the debt structure with that of the operations of
the crystal division. The dual benefit in the form of reduced
debt burden and interest cost will help the financial position
of the Company. This will help in the Company's commitment to
turnaround and restructure the Company.
About JIK Industries
Headquartered in Mumbai, India, JIK Industries Limited
-- http://www.jikindustriesltd.com/-- manufactures handmade
non-lead crystalware segment and is the only organized player in
the country. JIK has had over seven years of experience in
manufacturing and marketing crystal. Its products include
crystal glassware such as, glass tumblers, bowls, stemware,
showpieces, vases, etc, manufactured at Balkum, Thane,
Maharashtra. The company had collapsed following accidents at
its chemical waste recycling plant and at its crystal-making
unit. The Company, which had diversified interests -- crystal
making, money changing and chemical waste recycling -- was
forced to exit the money changing business after its net worth
was eroded. Under the Reserve Bank of India stipulations
companies whose net worth was eroded were not allowed to
continue in the money changing business.
On April 17, 2006, the Corporate Debt Restructuring Committee
has approved JIK's debt-restructuring package. The CDR package
has entitled the Company to a INR105-million debt waiver, in
addition to the reduction in loan interest rate to 9% and FITL
interest rate to 6%. The package allowed the Company to
complete the major part of its debt and business restructuring.
So far, the Company's chemical division is shelved closed and
discontinued as whole. Post restructuring, the Company will
remove and reduce approximately 48% of outstanding debt and
increase Share Capital and Network.
=================
I N D O N E S I A
=================
GARUDA INDONESIA: Gov't Aims to Cut Debt in Restructuring Plan
--------------------------------------------------------------
The Indonesian Government will seek the approval of PT Garuda
Indonesia's creditors to cut the airline's debt in a
restructuring scheme to be discussed this week, AFX News
reports, citing Transport Minister Hatta Rajasa.
Under the plan, creditors will convert up to 30% of their debt
into equity, lessening the carrier's debt from US$794 million to
US$274 million, Mr. Rajasa added.
The debt restructuring talks are scheduled for May 19 in
Singapore and May 21 in London.
The Troubled Company Reporter - Asia Pacific reported on
February 7, 2006, that most of Garuda's debts are owed to its
European Export Agency creditors. Garuda President Emirsyah
Satar had already met with the creditors many times, but has yet
to reach a solution on how to pay the Company's debts.
In December 2005, the carrier defaulted on a US$56 million debt
payment, AFX News relates. Garuda disclosed that ECA creditors
previously gave their blessing to a proposal to reschedule debt
payments but have yet to decide on the terms and conditions.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves another 10 domestic routes. Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The carrier has been hard-hit by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. At present, Garuda is concentrating its efforts on
repaying its debts with foreign creditors under the European
Credit Agency, which were due last December 31, 2005. Garuda
management hopes to receive IDR520.4 billion in funds, promised
by the Indonesian government, by March 2006.
In March 2006, The Indonesian Government proposed to infuse
US$250 million for PT Garuda Indonesia's debt restructuring, or
set up a "special-purpose vehicle" in a bid to pay the airline's
debts totaling US$644 million. Sugiharto, the state-owned
enterprises minister, said that if the second option was agreed,
the special-purpose vehicle would repay debt principal and
interest of US$80 million annually within a 10- year period.
Mr. Sugiharto added that the financial sources would be from the
airline's leasing revenues of US$30 million a year and
Government's fund of US$50 million a year. The carrier posted a
SGD46.5 billion net loss in January, versus a net loss of
IDR56.1 billion in the same period last year. As of the end of
2005, Garuda's debt totaled US$795 million.
=========
J A P A N
=========
CHUOAOYAMA PwC: Nippon Telegraph Decides to Retain Auditor
----------------------------------------------------------
With the recent accounting scandal enveloping ChuoAoyama
PricewaterhouseCoopers, Nippon Telegraph & Telephone Corp. has
decided to stay with the auditing firm, despite other companies
having already decided to end their existing audit contracts
with ChouAoyama, Kyodo News says.
According to Nippon Telegraph, it will seek to renew its audit
contract with ChuoAoyama at an upcoming shareholders' meeting
next month.
The Troubled Company Reporter - Asia Pacific reported that
Japan's Financial Services Agency, on May 10, 2006, ordered
ChuoAoyama PwC to suspend its operations and refrain from
entertaining new clients in July and August 2006, as a result of
three of the Company's accountants pleading guilty of falsifying
the financial statements of a cosmetics firm from 2001 to 2004.
Nippon Telegraph said that it would continue to avail of
ChuoAoyama's auditing services as the auditing company had
properly audited its financial accounts, and, therefore, there
was no need to look for another auditor. The suspension would
not affect the operations of Nippon Telegraph as it has an audit
contract with another firm, KPMG Azsa & Co.
CHUOAOYAMA PwC: Two Firms to Drop Auditing Contracts
----------------------------------------------------
Two more firms plan to end their audit contracts with ChuoAoyama
PricewaterhouseCoopers after a scandal in which the auditing
firm was discovered to have falsified the financial statements
of one of its client firms, the Japan Times reveals.
Toray Industries Inc. will propose to avail of the services of
auditor Ernst & Young ShinNihon at its stockholders' meeting on
June 28, 2006. ChuoAoyama had been its auditor for the past 40
years.
The other firm, Toyo Suisan Kaisha Limited, will let go of
ChuoAoyama in its joint-auditor ties with KPMG Azsa & Co.
As reported by the Troubled Company Reporter - Asia Pacific on
May 11, 2006, the Financial Services Agency ordered ChuoAoyama
to suspend its operations from July to August this year after
three of the Company's accountants admitted in March 2006 to
falsifying the financial accounts of cosmetics firm Kanebo
Limited, which had to restate its profits up to March 2004 as
losses. A report from unnamed sources stated that the FSA also
prohibited the Company from accepting new clients during the
suspension period, as it had not put up an internal system to
prevent illegal practices by its auditors.
Toray Industries and Toyo Suisan deny, however, that the
accounting scandal is the reason for their decision to change
auditors.
* Nine Hotels to Sue Consulting Firm for Data Fabrication
---------------------------------------------------------
Nine hotels were forced to shut down after it was discovered
that former architect Hidetsugu Aneha provided falsified
structural earthquake resistance data, Kyodo News reports.
As a result, the hotels decided to file a damages suit with the
Toko District Court against Tokyo consulting firm General
Management Consultant, which had provided advice to the hotels
before opening. The suit, slated to be filed on May 25, 2006,
seeks damages worth JPY456 million, roughly JPY35 million per
hotel, on account of consultation fees paid to the consultancy
firm, as well as additional damages for losses caused by the
suspension of operations and costs incurred to repair defective
building areas.
The nine hotels forced to suspend operations include the Ace Inn
Matsumoto in Nagano Prefecture, Isesaki Sun Hotel in Gunma
Prefecture and Plaza Inn Hamura in Tokyo.
It is suspected that General Management knew about the
fabricated data beforehand, but the firm denied the allegations
in March 2006, adding that such fabrications by the architect
were unforeseeable, Kyodo News says. Counsel for the hotel
operators Susumu Tsuruta said General Management was responsible
for the defects as it had been involved in the entire process of
the hotels' constructions, from the design to actual
construction.
=========
K O R E A
=========
EUGENE SCIENCE: SF Partnership Raises Going Concern Doubt
---------------------------------------------------------
SF Partnership, LLP, Chartered Accountants, in Toronto, Canada,
raised substantial doubt about Eugene Science, Inc., fka Ezomm
Enterprises, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Dec. 31, 2005. The auditor pointed to the Company's
recurring losses, negative working capital, and operation in a
country whose economy is currently unstable -- South Korea.
The Company reported a $6,343,733 net loss on $886,438 of
revenues for the year ended Dec. 31, 2005.
At Dec. 31, 2005, the Company's balance sheet showed $11,329,962
in total assets and $21,030,630 in total liabilities, resulting
in a $9,700,668 in stockholders' deficit.
The Company's Dec. 31 balance sheet also showed strained
liquidity with $1,330,987 in total current assets available to
pay $19,088,495 in total current liabilities coming due within
the next 12 months.
A full-text copy of the Company's 2005 Annual Report is
available for free at http://ResearchArchives.com/t/s?94f
Based in Kyonggi Do, South Korea, Eugene Science, Inc., formerly
known as Ezomm Enterprises, Inc. (OTCBB: EUSI), is a global
biotechnology company that develops, manufactures and markets
nutraceuticals, or functional foods that offer health-promoting
advantages beyond that of nutrition. Plant sterols are the
Company's primary products, which include CZTM Series of food
additives and CholZeroTM branded beverages and capsules. In
June 2005, the Company received regulatory approval for certain
health claims associated with the Company's products from
government agencies in the Republic of Korea.
===============
M A L A Y S I A
===============
APEX EQUITY: Buys Back 24,000 Shares for MYR14,205
--------------------------------------------------
Apex Equity Holdings Berhad, on May 15, 2006, bought back 24,000
ordinary shares of MYR1.00 each for a total cash consideration
of MYR14,204.84.
The minimum price paid for each share purchased was MYR0.575 and
the maximum was MYR0.595.
After the purchase, the cumulative outstanding treasury shares
have reached 3,203,800.
Apex Equity Holdings Berhad, on May 5, 2006, bought back 17,200
ordinary shares of MYR1.00 each for a total cash consideration
of MYR9,352.87, according to an earlier report by the Troubled
Company Reporter - Asia Pacific.
About Apex Equity Holdings Berhad
Apex Equity Holdings Bhd -- http://www.apexequity.com.my/-- is
principally engaged in stock and share broking, securities
dealing, property holding, provision of portfolio management,
investment advisory and nominee services, establishment and
management of unit trust and property and investment holding.
Operations of the Group are principally carried out in Malaysia.
The Company has suffered five consecutive years of losses
beginning 2001. It has incurred a net loss of MYR32,932,000 in
the fourth quarter of the fiscal year ending December 31, 2005,
which is an improvement from the fourth quarter 2004 net loss of
MYR76,596,000.
BUKIT KATIL: Incurs MYR30-Million Net Loss in 2Q/FY05-06
--------------------------------------------------------
The auditor of Bukit Katil Resources Berhad raised doubt about
the Company's ability to continue as a going concern after
auditing the Company's second quarter result ended December 31,
2005. The Company's fiscal year ends at June 30, 2006.
The auditor said that, at the date the financial statements were
reported, there were uncertainties regarding a successful and
timely completion of the Company's proposed restructuring
scheme, including obtaining the support and approval from the
creditors and source of new funds, which may cast significant
doubt on the Group's and Company's ability to continue as a
going concern. Therefore, the Group and the Company may be
unable to realize their assets and discharge their liabilities
in the normal course of business.
For the second quarter ended December 31, 2005, the Company
registered a net loss of MYR29,922,000, which is higher than the
pre-tax loss of MYR1,113,000 reported in the preceding year's
corresponding quarter, due to provision for liabilities
amounting to MYR28.50 million.
The Company recorded a higher turnover of MYR0.720 million for
the quarter under review, as compared to the turnover of
MYR0.709 million recorded in the preceding year's corresponding
quarter due to an increase in latex output and higher prices.
The Company's balance sheet as of December 31, 2005, also showed
strained liquidity with MYR1,219,000 in total current assets
available to pay MYR131,200,000 in total current liabilities
coming due within the next 12 months. The Company has a deficit
of MYR129,981,000.
In view of the uncertainties in global economic conditions and
the Company's current financial position, the directors expect
the Company to operate under a very challenging environment for
the subsequent financial year.
The Company did not issue any profit forecast nor profit
guarantee during the current financial quarter and no dividends
had been proposed for the current financial quarter.
A full-text copy of the Company's Financial Report is available
for free at:
http://bankrupt.com/misc/tcrap_bukitkatil051706.pdf
About Bukit Katil Berhad
Headquartered in Kuala Lumpur, Malaysia, Bukit Katil Resources
Berhad is engaged in money lending and oil palm and rubber
production. Other activities include investment holding,
software development, property investment and development and
manufacturing of bricks and ceramic products. Operations are
carried out in Malaysia and India. The Company has defaulted on
several loan facilities and admits that it does not have
sufficient cash to pay its debts. As of December 31, 2005, the
Company recorded a deficit of MYR129,981,000. The Company, on
Dec. 16, 2005, presented an application to regularize its
financial condition through debt restructuring, which is
currently pending approval of the Securities Commission.
BUKIT KATIL: Securities Commission Junks Restructuring Scheme
-------------------------------------------------------------
The Securities Commission had, on May 10, 2006, rejected the
proposed restructuring scheme of Bukit Katil resources Berhad as
the SC is of the view that the Scheme does not meet the
requirements of its Policies and Guidelines on the Issue/Offer
of Securities.
Bukit Katil's board of directors will deliberate on its next
course of action and an announcement will be made in due course.
In the meantime, the Company may make an application for a
review of the SC's decision within 30 days from May 10, 2006.
On October 13, 2005, Bukit Katil entered into a conditional
restructuring agreement wherein the Company and Foremost View
Sdn Bhd, Kang Kim Poh, Low Teck Sin, Kang Kim Sin and Heng Lai
Yoong have agreed in principle to undertake the Proposed
Restructuring Scheme with the intention of restoring Bukita
Katil onto stronger financial footing via, inter-alia, the
injection of new viable businesses, a capital restructuring
exercise and a debt restructuring exercise.
The Restructuring Scheme was formulated, as Bukit Katil is an
affected listed issuer of Practice Note 4 of the Bursa Malaysia
Securities Berhad's Listing Requirements. As an affected listed
issuer, the Company is required to comply with certain
obligations, which includes the obligation to undertake a
corporate proposal that will enable the Company to regularize
its financial position and continue trading on Bursa Securities.
About Bukit Katil Berhad
Headquartered in Kuala Lumpur, Malaysia, Bukit Katil Resources
Berhad is engaged in money lending and oil palm and rubber
production. Other activities include investment holding,
software development, property investment and development and
manufacturing of bricks and ceramic products. Operations are
carried out in Malaysia and India. The Company has defaulted on
several loan facilities and admits it does not have sufficient
cash to pay its debts. As of December 31, 2005, the Company
recorded a deficit of MYR129,981,000. The Company, on Dec. 16,
2005, presented an application to regularize its financial
condition through debt restructuring, which is currently pending
approval of the Securities Commission.
LANKHORST BERHAD: Revenue Drops 26.7% in 4Q/FY05
------------------------------------------------
Lankhorst Berhad filed its unaudited consolidated financial
statements for the year ended December 31, 2005, with the Bursa
Malaysia Securities Berhad on March 23, 2006.
As compared to the preceding year, the Group's revenue was
reduced by 26.7%. The Group registered a loss before tax of
MYR0.41 million as compared to a loss before tax of MYR12.01
million in the preceding year. This is attributable to
substantial provisions made in the preceding year for contracts
works in progress and reductions in administrative and other
expenses.
The Group registered a loss before tax of MYR0.88 million
against MYR0.45 Million in the preceding quarter.
As of December 31, 2005, the Company's balance sheet showed
MYR167,439,000 in total current assets, MYR171,454,000 in total
current liabilities, and MYR1,781,000 in total stockholders'
equity. The Company has a deficit of MYR4,015,000.
As of December 31, 2004, the Company's total current assets was
MYR172,279,000, its total current liabilities MYR180,960,000,
and its shareholders' equity MYR513,000. The Company's deficit
was MYR8,681,000.
There was no interim or final dividend has been declared or
recommended for the quarter under review.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2005 31-03-2004 31-03-2005 31-03-2004
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
2,902 22,277 41,695 56,879
* Profit/(loss) before tax
-879 -7,980 -406 -12,009
* Profit/(loss) after tax and minority interest
-885 -4,414 -311 -8,451
* Net profit/(loss) for the period
-885 -4,414 -311 -8,451
* Basic earnings/(loss) per shares (sen)
-2.10 -10.70 -0.80 -20.50
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
0.0400 0.2300
A full-text copy of the Company's 2005 Financial Report is
available for free at:
http://bankrupt.com/misc/tcrap_lankhorstbhd051706.doc
About Lankhorst Berhad
Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in
civil and geotechnical engineering services, building
construction, trading and application of geosynthetic materials.
Other activities include property development and investment,
water and wastewater treatment, oil and gas contracting and
supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement
services and trading of construction supply. The Company has
been incurring a string of losses due to high operating costs
and its units are facing winding up actions. It also defaulted
on several loan facilities. As of December 31, 2005, the
Company's balance sheet showed MYR167,439,000 in total current
assets, MYR171,454,000 in total current liabilities, and
MYR1,781,000 in total stockholders' equity. The Company has a
deficit of MYR4,015,000.
On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category. In the event
Lankhorst fails to comply with all the provisions of PN 17/2005,
Bursa Securities may take any action against the Company
including but not limited to delisting proceedings against
Lankhorst. The Company is currently under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act,
1965 and currently formulating a debt and capital restructuring
scheme to improve the Company's financial position to be
announced in due course.
LANKHORST BERHAD: Court Extends Restraining Order for 120 Days
--------------------------------------------------------------
The Kuala Lumpur High Court, on May 30, 2005, granted a
restraining order in favor of Lankhorst Berhad and its
subsidiaries:
1. Lankhorst Pancabumi Contractors Sdn Bhd;
2. Cardon (M) Sdn Bhd;
3. Lankhorst Hartanah Sdn Bhd;
4. Lankhorst M&E Sdn Bhd;
5. Port Dickson Sepang Quarry Sdn Bhd;
6. Lankhorst Track Construction Sdn Bhd;
7. Rampai Budi-Jaya Sdn Bhd; and
8. Tradepro Sdn Bhd.
On May 11, 2006, the High Court further extended the restraining
order for another 120 days in order for the Company to
facilitate a corporate restructuring exercise, the details of
which will be announced in due course.
The restraining order would, therefore, expire on September 7,
2006.
About Lankhorst Berhad
Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in
civil and geotechnical engineering services, building
construction, trading and application of geosynthetic materials.
Other activities include property development and investment,
water and wastewater treatment, oil and gas contracting and
supply, quarry operations, railway track construction,
mechanical and electrical construction, soil improvement
services and trading of construction supply. The Company has
been incurring a string of losses due to high operating costs
and its units are facing winding up actions. It also defaulted
on several loan facilities. As of December 31, 2005, the
Company's balance sheet showed MYR167,439,000 in total current
assets, MYR171,454,000 in total current liabilities, and
MYR1,781,000 in total stockholders' equity. The Company has a
deficit of MYR4,015,000.
On April 24, 2006, Lankhorst was classified as an affected
listed issuer and is required to comply with the provisions of
the Bourse's Practice Note 17/2005 category. In the event
Lankhorst fails to comply with all the provisions of PN 17/2005,
Bursa Securities may take any action against the Company
including but not limited to delisting proceedings against
Lankhorst. The Company is currently under the protection of a
Restraining Order pursuant to Section 176 of the Companies Act,
1965 and currently formulating a debt and capital restructuring
scheme to improve the Company's financial position to be
announced in due course.
METROPLEX BERHAD: Provisional Liquidator Named
----------------------------------------------
A winding-up petition had been served on Metroplex Berhad on
April 26, 2005, by the solicitors of Morgan Stanley Emerging
Markets Incorporated, the Troubled Company Reporter - Asia
Pacific recounts. In relation to the petition, Morgan Stanley
had also filed summons for the appointment of a provisional
liquidator for Metroplex.
On January 27, 2006, Morgan Stanley's solicitors had served an
injunction application on Metroplex and its wholly owned
subsidiary Metroplex Holdings Sdn Bhd, which is the owner of
Putra Place, restraining the two companies from selling Putra
Place to Lembaga Kumpulan Wang Simpanan Pekerja.
On April 25, 2006, the Kuala Lumpur High Court adjourned the
hearing of Morgan Stanley's application to appoint a provisional
liquidator for Metroplex to May 11, 2006, as well as the
appointment of Commerce International Merchant Bankers Berhad as
intervener to resist Morgan Stanley's application.
In a subsequent update, Metroplex advised that at the May 11,
2006, hearing, the Court made an order appointing a provisional
liquidator over Metroplex Holdings and had adjourned the matter
to May 16, 2006, to finalize the terms of the order.
About Metroplex Berhad
Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations. Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school. Operations are
carried out in Malaysia, Hong Kong and Philippines. On April
28, 2005, Morgan Stanley Emerging Markets Inc. had filed a
winding-up petition on the Company to the Kuala Lumpur High
Court. Morgan Stanley also filed for a summons to appoint a
provisional liquidator for the wind up. Until and unless a
provisional liquidator is appointed pursuant to the application
to the Court by the Petitioner to appoint provisional liquidator
for Metroplex, the winding-up petition will not have significant
impact on the Group's operations as MB is currently working out
a debt-restructuring scheme. In the event the winding-up
petition succeeds, the Company will be put into liquidation.
METROPLEX BERHAD: Acquires New Subsidiary for MYR2.00
-----------------------------------------------------
Metroplex Berhad has, on May 15, 2006, acquired two ordinary
shares of MYR1.00 each representing 100% equity interest in
Ceriamas Property Services Sdn Bhd -- formerly known as Ceriamas
Abadi Sdn Bhd.
Ceriamas was incorporated in Malaysia as a private limited
company on January 25, 2006. The authorized and paid-up share
capital of Ceriamas are MYR100,000 and MYR2.00. The company is
currently dormant and its intended principal activity is to
provide property maintenance services to Metroplex Berhad
Group's various housing estates.
The acquisition will not have a material effect on the net
tangible assets and earnings of the Metroplex Group for the
financial year ending January 31, 2007.
About Metroplex Berhad
Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations. Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school. Operations are
carried out in Malaysia, Hong Kong and Philippines. On April
28, 2005, Morgan Stanley Emerging Markets Inc. had filed a
winding-up petition on the Company to the Kuala Lumpur High
Court. Morgan Stanley also filed for a summons to appoint a
provisional liquidator for the wind up. Until and unless a
provisional liquidator is appointed pursuant to the application
to the Court by the Petitioner to appoint provisional liquidator
for Metroplex, the winding-up petition will not have significant
impact on the Group's operations as MB is currently working out
a debt-restructuring scheme. In the event the winding-up
petition succeeds, the Company will be put into liquidation.
PAN MALAYSIA: Shareholders Pass All EGM Resolutions
---------------------------------------------------
The shareholders of Pan Malaysia Holdings Berhad have approved
all the resolutions at its Extraordinary General Meeting held on
May 15, 2006.
As reported by the Troubled Company Reporter - Asia Pacific on
April 24, 2006, members were asked to consider, and if thought
fit, pass these resolutions:
(1) That, subject to the order of the High Court of Malaya,
approval be given to reduce the Company's issued and
paid-up share capital of MYR928,867,411 comprising
928,867,411 ordinary shares of MYR1.00 each to
MYR92,886,741 comprising 928,867,411 ordinary shares of
MYR0.10 each by way of cancellation of MYR0.90 of the
par value of each existing ordinary share of the
Company in issue; and
(2) That, upon the reduction of the par value taking effect,
the share premium account of the Company be reduced by an
amount of up to MYR34,734,007 and that the credit arising
from there be utilized towards setting off against the
accumulated losses of the Company as of December 31,
2005
About Pan Malaysia Holdings Berhad
Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia Holdings
Berhad engaged in the provision of financial services, property
and leisure, investment holding and dealing and manufacturing
and selling of self-adhesive sticker labels. The Group also
manufactures carton boxes and general packaging products. Other
activities relating to financial services are stockbroking,
options and financial futures broker, research fund management
services and money lending. In 2001, the Group has disposed
Focusprint Sdn Bhd, Labels Specialist Industries Sdn Bhd and
Pengkalen Concrete Sdn Bhd wherein the manufacturing and trading
activities were discontinued. The Company has proposed to
reduce capital to erase its MYR11-million accumulated losses
after it was categorized under Bursa Malaysia Securities
Berhad's Practice Note 17 classification on may 2, 2006 due to
its insignificant business operations. The Company's latest
unaudited accounts for the financial year ended December 31,
2005, showed that its business or operations generated revenue
on a consolidated basis of MYR34.088 million, which represents
less than 5% of the issued and paid-up capital of the Company.
PAXELENT CORPORATION: Releases Audited Fourth Quarter Results
-------------------------------------------------------------
Paxelent Corporation has, on May 6, 2006, filed its Fourth
Quarter Results ended December 31, 2005, with Bursa Malaysia
Securities Berhad.
For the quarter under review, the Group recorded a revenue of
MYR8.7 million as compared to MYR12.2 million in the preceding
year's corresponding period, due to the disposal of its foreign
subsidiaries --Xiptech Holdings Pte Ltd and Xiptech Corporation
Ltd. Both XH and XC have substantial revenue contribution
during the preceding year corresponding period. With the
disposal, the materialization of its consolidation reserve has
resulted in profit before tax of MYR21.8 million as compared to
the loss before tax of MYR20.8 million in the preceding quarter.
The Group recorded profit before taxation of MYR21.8 million as
compared to profit before taxation of MYR2.9 million for the
immediate preceding quarter. The materialization of the
consolidation reserve in relation to the disposal of its foreign
subsidiaries namely Xiptech Holdings Pte Ltd and Xiptech
Corporation Ltd has contributed to the higher profit in the
current quarter.
The Company posted earnings per share of 18.05 sen for the
quarter, as compared to a loss per share of 12.62 sen in the
corresponding quarter last fiscal year.
The Directors have not recommended any dividend for the current
financial quarter ended December 31, 2005.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2005 31-03-2004 31-03-2005 31-03-2004
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
8,677 12,207 44,753 37,861
* Profit/(loss) before tax
21,761 -20,839 20,578 -83,255
* Profit/(loss) after tax and minority interest
21,878 -15,300 19,490 -61,031
* Net profit/(loss) for the period
21,878 -15,300 19,490 -61,031
* Basic earnings/(loss) per shares (sen)
18.05 -12.62 16.08 -60.40
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
0.0800 0.1300
Messrs Lean Chin & Co, the auditors of Paxelent Corporation
Berhad, have qualified the financial statements of the Company
for the financial year ended December 31, 2005.
The Auditors said that the Group recognized in its income
statement for the year ended December 31, 2005, a gain of
MYR29,823,000 arising from the disposal of certain of its
subsidiaries. Included in this gain is an amount of
MYR25,160,000 representing the cumulative amount of exchange
realignment reserve arising on consolidation brought forward
from the previous year which relates to the foreign subsidiaries
disposed of.
As they were not the statutory auditors prior to the financial
year ended December 31, 2005, and due to the past changes in
Group structure and in management and staff within the Group,
Auditors Lean Chin & Co were unable to obtain the necessary
information and the appropriate evidence with respect to this
cumulative amount of exchange realignment reserve arising on
consolidation of MYR25,160,000 that has been recognized in the
Group's income statement.
The auditors' report of the preceding annual financial
statements was qualified on the basis that they were unable to
obtain necessary information and appropriate evidence with
respect to the carrying amount of the exchange realignment
arising on consolidation reserve. The board of directors is in
the process of conducting an investigation to determine the
completeness and accuracy of this reserve. The board would then
review the results of the investigation and decide on the
necessary adjustments to be made to the financial statements.
A full-text copy of the Company's financial report is available
for free at:
http://bankrupt.com/misc/tcrap_paxelentcorp4Q051706.pdf
http://bankrupt.com/misc/tcrap_paxelentcorp051706.pdf
About Paxelent Corporation
Paxelent Corporation is engaged in investment holding. The
principal activities of the subsidiaries are property
investment, provision of information technology solutions,
investment holding, marketing and sale of hard disk drive
components. The Company is a public limited liability company,
incorporated and domiciled in Malaysia, and is listed on the
Second Board of Bursa Malaysia Securities Berhad.
In the fourth quarter of the year ending December 31, 2005, the
Group recorded lower revenue of MYR8.7 million as compared to
MYR12.2 million in the preceding year corresponding period due
to the disposal of its foreign subsidiaries -- Xiptech Holdings
Pte Ltd and Xiptech Corporation Ltd. Both subsidiaries have
substantial revenue contribution during the preceding year
corresponding period. With the said disposal, the
materialization of Paxelent's consolidation reserve has resulted
in profit before tax of MYR21.8 million as compared to the loss
before tax of MYR 20.8 million in the preceding quarter.
However, despite booking in positive earnings, the Company has
not met the scheduled repayment obligations of Settlement
Agreements with several financial institutions arising from the
crystallization of corporate guarantees to the Company's former
subsidiaries, which had been wound up. The Company's Board is
currently actively pursuing various restructuring schemes to
address the default. These schemes would involve, inter alia,
raising funds through partial disposal of assets, potential
debts waivers and rescheduling of the debts. On-going
discussions with the financial institutions have been positive
and the directors are confident that agreements could be reached
on debts waivers and rescheduling of the debts in the near
future.
PROTON HOLDINGS: Finance Sec. Says Car Industry Still Profitable
----------------------------------------------------------------
Parliamentary Secretary of the Finance Ministry Datul Seri Dr
Hilmi Yahaya believes that the national automotive industry is
still "relevant and profitable" despite huge losses incurred by
Proton Holdings in fiscal 2005-06, Bernama reports.
The Troubled Company Reporter - Asia Pacific recounts that
Proton booked a net loss of MYR158 million in FY05-06 due to
cutthroat competition and weak performance of its overseas
operations.
However, Dr. Hilmi Yahaya insisted that it is inaccurate to say
that national automotive industry is no longer relevant just
because Proton was in the red during the financial year
2005/2006. Dr. Hilmi's statement came as a response to a
question from Mohd Puad Zarkashi.
Dr. Mohd Puad asked reasons for Proton's loss and whether the
setback showed that the national automotive industry was no
longer relevant in the global automotive industry.
Dr. Hilmi explained that Proton's loss was largely attributed to
the poor performance of its foreign venture, especially its
investment in MV Agusta Motors SpA.
"Fifty-six per cent of the loss was due to its investment in MV
Agusta Motors SpA and the rest was because of obsolete
components and equipment, warranty claims, import liabilities
and the renewal of exports to Iraq," Dr. Hilmi said.
However, Dr. Hilmi said that based on the unaudited financial
results for the financial year 2005/2006, Proton's net cashflow
was strong with MYR1.257 billion with total liabilities of
MYR1.070 billion.
Proton also planned to strengthen its international business
expansion strategy based on geographical location, that is
Asean, Middle East, United Kingdom and Australia.
Dr. Hilmi said that besides focusing on quality maintenance,
Proton would also produce more affordable models in both local
and export markets.
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 was reported to be among Malaysia's worst-performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss. It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner. The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner by the end of this
year.
SUREMAX GROUP: Unit Receives Summons and Statement of Claim
-----------------------------------------------------------
Suremax Group's subsidiary, Suremax Builders Sdn Bhd, on May 15,
2006, received a Summons and Statement of Claim from Timtruss
Sdn Bhd.
Timtruss is claiming from Suremax Builders MYR48,710.40 plus
interest at the rate of 1.5% per month on the sum of
MYR41,280.00 calculated from April 1, 2006, until the date of
full settlement.
The plaintiff is also asking payment for legal costs and further
relief as the Kuala Lumpur Session Court deems fair and just.
The Summons has been fixed for mention on August 2, 2006.
Suremax said it will seek legal advice from its Solicitors on
the next course of action.
About Suremax Group
Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works. The firm's
other activities include the provision of property management
services and building construction. The Group is also involved
in the manufacture and sale of ready mixed concrete. Suremax
Group has suffered losses since 2004 due to sluggish market
demand. For the second quarter of the financial year ended
August 31, 2006, Suremax booked a pre-tax loss of MYR1.32
million. The Company is also trying to avert a series of
winding up actions against its subsidiaries. On May 9, 2006,
Suremax was identified as a Practice Note 17 company and was
required to regularize its financial cosnition pursuant to the
Bursa Malaysis Securities Berhad's Listing Requirements.
TENCO BERHAD: Triggers Two Criteria of Practice Note 17
-------------------------------------------------------
Tenco Berhad was, on May 9, 2006, identified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Amended Practice Note 17 category.
The Company fell into the PN17 classification because:
-- its current shareholders' equity on a consolidated basis
is less than 25% of its issued and paid up capital; and
-- it defaulted on various loan facilities and is unable to
provide a solvency declaration.
As an affected listed issuer, Tenco Berhad is required to:
* submit a plan to regularize the Company's condition to the
Securities Commission and other relevant authorities for
approval within eight months from May 9, 2006;
* implement the Regularization Plan within the timeframe
stipulated by the SC;
* announce the status of the Plan on a monthly basis until
further notice from Bursa Malaysia Securities Berhad;
* announce the Company's compliance or non-compliance with a
particular obligation impose pursuant to Amended PN17 on an
immediate basis; and
* disclose the details of the Plan to Bursa Malaysia.
If the Company fails to comply with the obligation to regularize
its condition, all of its listed securities will be suspended
from trading and delisting procedures will be taken against the
Company.
About Tenco Berhad
Headquartered in Selangor, Malaysia, Tenco Berhad's principal
activities are manufacturing and selling of polymer, chemicals,
adhesive, decorative coatings and related products, building
materials, equipment and consumer products. Other activities
include investment holding and provision of management services.
The Group operates in Malaysia, Singapore and Canada. Tenco is
classified as a Practice Note 17 company and was ordered by the
Bursa Malaysia Securities Berhad to formulate a plan to
regularize the Company's financial condition.
TRU-TECH HOLDINGS: Posts Unaudited MYR3-Million Net Loss in 1Q
--------------------------------------------------------------
Tru-Tech Holdings Berhad filed its unaudited first quarter
report ended March 3, 2006, with Bursa Malaysia Securities
Berhad on May 12, 2006.
The Company registered a MYR3,022,000 net loss on MYR5,441,000
of total revenues for the quarter under review. The current net
loss is higher compared to a MYR1,652,000 net loss in the
corresponding quarter of fiscal 2005. Total revenue in the same
quarter last year was MYR4,817,000.
Operating expenses for the first quarter was pegged at
MYR7,061,000, compared to last year's MYR6,524,000.
Loss per share in the quarter under review is MYR7.01, which is
higher compared to MYR3.83 in the corresponding quarter of the
previous year.
The Company did not declare any dividend for the first quarter
of fiscal 2006.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2006 31-03-2005 31-03-2006 31-03-2005
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
5,441 4,817 5,441 4,817
* Profit/(loss) before tax
-3,022 -1,723 -3,022 -1,723
* Profit/(loss) after tax and minority interest
-3,022 -1,652 -3,022 -1,848
* Net profit/(loss) for the period
-3,022 -1,652 -3,022 -1,848
* Basic earnings/(loss) per shares (sen)
-7.01 -3.83 -7.01 -4.29
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
-2.0300 -1.9600
About Tru-Tech Holdings Berhad
Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings
Berhad's principal activity is the manufacturing of electronic
components and products. Its other activities include
development and distribution of switch-mode power supplies and
investment holding. The Group operates in Malaysia, Singapore,
United States and United Kingdom. On May 27, 2004, Tru-Tech
announced a series of proposed corporate exercises to address
its losses. These include the incorporation of a new entity as
Tru-Tech's holding company, and the disposal of its existing
contract-assembly business to a third party. Much of Tru-Tech's
future performance will hinge on its ability to restructure its
debts and resolve its poor liquidity.
=====================
P H I L I P P I N E S
=====================
MANILA ELECTRIC: ERC Considers Legal Barriers to Settlement
-----------------------------------------------------------
The Energy Regulatory Commission has yet to decide whether to
approve a revised PHP14.3-billion settlement agreement between
Manila Electric Company and the National Power Corp. or an
original agreement of PHP20 billion, the Manila Bulletin
reveals.
The Troubled Company Reporter - Asia Pacific stated on April 28,
2006, that Manila Electric allegedly violated its 10-year power
supply contract with National Power when it decided to reduce
its power purchases from National Power, so as to source energy
from First Gas Philippines Corporation, a sister firm of
National Power. The TCR-AP report had cited Manila Electric
President Jesus Francisco as saying that they had stopped
efforts to settle with National Power, adding that the ERC would
be the one to decide on the matter.
A subsequent TCR-AP report on May 5, 2006, revealed that the ERC
provided records indicating Manila Electric had later agreed to
settle with National Power for PHP14.3 billion, instead of the
initial PHP20 million agreement. The Bulletin relates that
according to ERC Chairman Rodolfo B. Albano, there are legal
concerns on the revised agreement, as it was filed when the
public hearings were concluded. He added, however, that the
Commission is considering the cost adjustment provision in the
agreement, which stated that Manila Electric's actual monthly
offtake from National Power will be reckoned against baseline
quantities.
If Manila Electric could not meet the prescribed quantity, then
settlement costs would increase. If it would obtain more supply
for the remainder of the contract, then costs would go down.
The Energy Regulator Commission is finalizing a set of new rules
of practice and procedures to hear cases for ERC approval or
disposition, in order to discourage firms with vested interest
to turn opposition cases lodged with the Commission into
profession, as is happening in this case.
* * *
Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers. Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.
A March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the Company posted a 79.7% decrease in its
2005 net losses to PHP411 million from PHP2.03 billion in 2004,
due to provisions for probable losses while awaiting a Supreme
Court final decision on a pending unbundling rate case, and the
adoption of new accounting standards.
The TCR-AP further stated on April 27, 2006, that the Company
filed a report with the Philippine Stock Exchange, indicating a
66.1% decline in its net loss from January to March 2006 to
PHP748 million, against a PHP2.2 billion loss for the same
period last year.
According to a TCR-AP report on April 24, 2006, Manila Electric
cannot seek a loan to expand its facilities unless it repays
outstanding short-term debts amounting to around PHP4.7 billion
PHILCOMSAT HOLDINGS: Has Not Paid Out Dividends for Two Years
-------------------------------------------------------------
Philcomsat Holdings Corp. has not declared dividends for the
past two fiscal years, the Troubled Company Reporter - Asia
Pacific found out from the Company's latest financial report.
For the year ended Dec. 31, 2005, Philcomsat Holdings generated
PHP62.3 million gross income, against PHP67.31 million in 2004,
whereas its 2005 interest from money market placements amounted
to PHP60.10 million, compared to PHP64.30 million in 2004.
According to the Company, falling interest rates and its
investment in Telecommunications Center, Inc., contributed to
the decrease in interest income. It also incurred realized
foreign exchange loss of PHP4.08 million in 2005, against a
PHP0.89 million gain the previous year.
The Company did not pay management fees and amortization of
deferred creditors for the years 2003 to 2005.
Philcomsat Holdings spent PHP51.43 million for the fiscal year
2005 due to an increase in salaries and directors' fees, as well
as regulation from the Bureau of Internal Revenue & Services on
amortization of pre-operation in 2003. Depreciation dropped
from PHP5.35 million in 2004 to PHP2.97 million in 2005. These
expenses led the Company to report an operating loss of PHP49.23
million, as compared to its PHP41.10 million loss in 2004.
Philcomsat Holdings has two pending cases with the Securities &
Exchange Commission. The cases, SEC Case No. 12-03-03 and SEC
Case No. 2-06-113, come from a certain stockholder seeking to
compel the Company convene stockholders annual meeting.
According to a report by the Troubled Company Reporter - Asia
Pacific on May 10, 2006, the Company had not held an annual
stockholders' meeting since 2004, when Manuel Nieto Jr. and his
nephew, Benito Araneta, were elected to the board of directors.
Mr. Nieto is president of Philcomsat, while Mr. Araneta is
chairman of the board. Company shareholder Victor Africa had
accused the Nieto group of using company funds and corporate
manipulations to retain their positions in Philcomsat.
According to The Star, Mr. Nieto did not recognize the proxy
presented by Mr. Africa at the Company's 2004 meeting, and
prevented him from voting 81% Philcomsat shares in the election.
Mr. Nieto and Mr. Araneta reportedly refused to hold an annual
stockholders' meeting in May last year, prompting stockholders
to seek intervention by the SEC.
The SEC ordered Philcomsat to hold a stockholders' meeting on
April 17, 2006, to enable shareholders to decide whether to let
the Nieto group stay on to manage the Company. The Nieto group
countered with a proposal to hold the meeting on April 18, 2006,
which excluded the election of the Board and extended their term
as board members. The SEC rejected the counterproposal and
ordered the Company to hold a shareholders' meeting on May 4,
2006. Shareholders had voted to extend Philcomsat Holdings'
corporate life by another 50 years under current management,
winning over minority shareholders who had wanted Mr. Nieto out
of the Company.
A later TCR-AP report on May 17, 2006, stated that the
Securities and Exchange Commission has opted to delay its
decision on when Philcomsat Holdings Corp. should hold its
annual stockholders' meeting, as it has been ordered to submit a
report of the Supreme Court decision on the Company's
confiscated shares.
* * *
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.,
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, Philcomsat
Holdings was one of the active participants in search of oil.
The Company has since withdrawn from oil exploration because
there was no commercial discovery of oil.
On January 10, 1997, the Company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
PHILCOMSAT HOLDINGS: PCGG Sues Shareholder for Selling Assets
-------------------------------------------------------------
The Philippine Commission on Good Government will file estafa
cases against Philippine Overseas Telecommunications Corp.
President and Philcomsat Holdings Corp. minority shareholder
Victor V. Africa, for supposedly selling POTC assets without the
Commission's consent, TMC News relates.
The Philippine Government holds a 33% stake in POTC, as well as
a 28% interest in Philcomsat Holdings.
According to BusinessWorld, Mr. Africa and his group was charged
with allegedly selling off an airplane, a helicopter and three
townhouses in Metro Manila, which was owned by the POTC.
However, PCGG Commissioner Ricardo M. Abcede declined to
disclose the amount of the assets.
* * *
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.,
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, Philcomsat
Holdings was one of the active participants in search of oil.
The Company has since withdrawn from oil exploration because
there was no commercial discovery of oil.
On January 10, 1997, the Company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
The Troubled Company Reporter - Asia Pacific reported on May 10,
2006, that Philcomsat may be up for liquidation or dissolution
proceedings as its "corporate life" expired on May 9, 2006,
since it had not validated its proxies. This as the SEC
disallowed the use of proxies and instead required the original
owners of Philcomsat to vote.
However, subsequently, the TCR-AP stated, majority shareholders
had voted to prolong the corporate life of Philcomsat Holdings
for 50 years under the current management of Manuel Nieto Jr.,
winning over minority shareholders who had opted to liquidate
the Company while alleging that Mr. Nieto had misappropriated
Company funds leading to losses in recent years.
The TCR-AP reported on May 17, 2006, that Securities and
Exchange Commission has opted to delay its decision on when
Philcomsat should hold its annual stockholders' meeting, as it
has been ordered to submit a report of the Supreme Court
decision on the Company's confiscated shares.
=================
S I N G A P O R E
=================
ACCORD CUSTOMER: Updates on Group Restructuring
-----------------------------------------------
As part of Accord Customer Care Solutions Limited's ongoing
efforts to streamline its group structure and operations, the
Company has liquidated its wholly owned subsidiaries in Japan
and South Korea. Accordingly, the Group has ceased Acquisition
Management Solutions operations in these two countries.
Based on the Group's audited FY2005 Full-Year Financial
Statement, the recent cessation has no material financial impact
on its net tangible asset per share or earnings per share.
Meanwhile, pursuant to its entry into a commercial settlement on
December 16, 2004, Accord Customer has entered into a sale and
purchase agreement with Tan Hor Khim and Dollaporn Ruengdech for
the transfer of 11,000,000 and 11,620,000 shares in the capital
of Distribution Management Solutions Pte Limited to the Company.
On December 16, 2004, the Company had entered into a sale and
purchase agreement with, inter alia, Tan Hor Khim and Dollaporn
Ruengdech, pursuant to which the Company had agreed to sell
550,000 and 581,000 shares in DMS to Tan Hor Khim and Dollaporn
Ruengdech. The 550,000 shares in DMS were sub-divided into
11,000,000 DMS shares while the 581,000 shares in DMS were sub-
divided into 11,620,000 DMS shares pursuant to a share split.
The 2004 S&P Agreement provided, inter alia, that in the event
of DMS not achieving a listing and quotation of its shares on
the Singapore Exchange Securities Trading Limited by June 30,
2005, each of, inter alia, Tan Hor Khim and Dollaporn Ruengdech
would be entitled to the return of their deposits paid under the
2004 S&P Agreement. Consequently, as the listing did not occur
by June 30, 2005, the Company has agreed to enter into a
settlement arrangement with each of the parties in connection
with the return of the deposits to Tan Hor Khim amounting to
SGD1,540,000 and Dollaporn Ruengdechnt amounting to
SGD1,626,800.
Pursuant to the terms of the Settlement, the Company would be
entering into the S&P Agreement in respect of the Transfer of
the DMS Shares. The DMS Shares will be transferred free from
all claims, charges, liens, equities and other encumbrances and
with all rights, dividends, entitlements and advantages now and
hereafter and including completion date of the S&P Agreement.
Based on the Group's audited FY2005 Full-Year Financial
Statement, the Transfer does not have a material impact on its
net tangible asset per share but reduces its loss per share by
approximately 5.9%.
More details on the restructuring updates can be viewed for free
at:
http://bankrupt.com/misc/tcrap_accordcustomer051706.pdf
About Accord Customer Care Solutions
Accord Customer Care Solutions -- http://www.accordccs.com/--
is the leading provider of after market services for consumer
mobile communication and digital electronic devices in Asia
Pacific. ACCS is a spin-off from supply network solutions
provider Accord Express Holdings Pte Limited. ACCS provides a
wide spectrum of after market services to both its trade
partners and end consumers. ACCS provides professional,
efficient and convenient services to its end consumers by
establishing one-stop single brand or multi-brand proximity
centers that are conveniently and strategically located. ACCS
has been posting consecutive losses since the first quarter of
2005 due to bad investments, when it incurred a net loss of
SGD3.79 million. Meanwhile, 12 of its former executives are
facing an ongoing case over a cheating scam involving mobile
phone giant Nokia. The executives were accused of falsifying
phone repair claims to cheat Nokia out of SGD4.3 million. They
were also charged with falsifying financial documents and
overstating profits.
The Company is currently in negotiations with its lenders to
restructure its financial obligations. As part of the
negotiations with the lenders, repayment of these obligations is
intended to be repaid out of the proceeds from the Company's
recovery of its investments in non-operational assets. The
timing of receipt of proceeds from the recovery is dependent on
stock market conditions and conclusion of negotiations.
MAE ENGINEERING: Creditors Continue to Support Business
-------------------------------------------------------
MAE Engineering Limited confirmed before the Singapore Stock
Exchange that its bankers and creditors continue to support the
Company's business.
The statement was released in response to Singapore Exchange
Limited's request to provide monthly updates on the dealings of
MAE Engineering's bankers and creditors with the Company.
About MAE Engineering Limited
Headquartered in Singapore, MAE Engineering Limited is engaged
in the provision of integrated electrical and mechanical
engineering services including designing, planning and
procurement. These services are categorized into electrical
installations, mechanical installations, electrical power supply
installations, instrumentation and building automation as well
as maintaining electrical and mechanical systems. The Group
also offers consulting and specialist services to oceanariums
and aquariums. The Group has disposed off its prawn and fish
farming as well as edutainment businesses, after suffering
accumulated losses of SGD48 million as of September 30, 2005.
The Company also suffered a liquidity crunch as of September 30,
2005, when its total current liabilities of SGD23,695,000
exceeded its total current assets of SGD5,582,000.
OVERSEAS STAR: Court Hears Wind-up Petition
-------------------------------------------
The Hon. Justice Andrew Ang of the Singapore High Court heard
the wind-up application against Overseas Star Enterprises Pte
Limited on April 28, 2006.
As reported by the Troubled Company Reporter - Asia Pacific, the
petition was set for mention in the High Court on April 21,
2006.
The application was filed by JCDECAUX Singapore Private Limited
on March 30, 2006.
Contact: Choo Hin & Partners
Solicitors for the Petitioners
10 Anson Road #13-09
International Plaza
Singapore 079903
SSA GLOBAL: Inks US$1.3 Billion Merger Deal with Infor
------------------------------------------------------
SSA Global Technologies, Inc., and Infor Global Solutions AG
entered into a definitive agreement for Infor to acquire SSA
Global.
Under the terms of the agreement, Infor has agreed to pay $19.50
per share in cash to SSA Global's shareholders. The agreement
was approved by SSA Global's Special Committee of independent
directors, as well as the Board of Directors. The parties
anticipate closing the transaction in the third calendar quarter
of 2006. The closing is subject to certain customary
conditions, including receipt of regulatory approvals and SSA
Global shareholder approval. Certain shareholders representing
approximately 84% of SSA Global's outstanding shares have
entered into voting agreements to support the merger.
"With this acquisition, Infor will become the third largest
enterprise software provider in the industry with approximately
$1.6 billion in revenue," said Jim Schaper, Infor's chairman and
CEO. "Infor has become a significant force in the industry by
assembling and innovating market-specific, best-in-class
enterprise software solutions, which provides customers with a
flexible choice in the market."
According to press reports, the deal is valued at around US$1.3
billion.
"In a rapidly consolidating marketplace we have seen that size
and scale matter," said Mike Greenough, chairman, president and
CEO of SSA Global. "This transaction brings value to all of our
key stakeholders -- our investors, our customers and our
employees."
Infor was advised by Kirkland & Ellis LLP. Financing for the
acquisition will be arranged by J.P. Morgan Securities Inc. and
Credit Suisse (USA) LLC and is expected to include a combination
of senior secured first-lien credit facilities and second-lien
debt denominated in both US dollars and Euros.
The Special committee of independent directors was advised by
Mayer, Brown, Rowe & Maw LLP and received a fairness opinion
from Houlihan, Lokey, Howard & Zukin. SSA Global was advised by
Schulte Roth and Zabel LLP and J.P. Morgan Securities Inc.
The definitive agreement to acquire SSA Global Technologies,
Inc. was signed by Magellan Holdings, Inc., a wholly owned
subsidiary of Infor Global Solutions AG. Infor is a portfolio
company of Golden Gate Capital and Summit Partners.
About Infor
Infor Global Solutions AG -- http://www.infor.com/-- is one of
the largest global software providers focused on delivering
world-class enterprise applications to select verticals in the
manufacturing and distribution industries. Infor delivers
integrated solutions that address the essential challenges its
customers face in areas such as supply chain planning,
enterprise asset management, relationship management, demand
management, ERP, warehouse management, and business
intelligence. With more than 3,100 employees in 50 global
offices, Infor provides enterprise solutions to almost 24,700
customers in over 100 countries.
About SSA Global
Headquartered in Chicago, Illinois, SSA Global Technologies Inc.
(Nasdaq: SSAG) -- http://www.ssaglobal.com/-- is a leading
provider of extended ERP solutions for manufacturing,
distribution, retail, services and public organizations
worldwide. In addition to core ERP applications, SSA Global
offers a full range of integrated extension solutions including
corporate performance management, customer relationship
management, product lifecycle management, supply chain
management and supplier relationship management. SSA Global has
over 50 locations worldwide and its product offerings are used
by approximately 13,000 active customers in over 90 countries.
SSA Global has operations in the Asia-Pacific, with a regional
main office in Singapore. SSA Global(TM) is the corporate brand
for product lines and subsidiaries of SSA Global Technologies,
Inc. SSA Global, SSA Global Technologies and SSA GT are
trademarks of SSA Global Technologies, Inc. Other products
mentioned in this document are registered, trademarked or
service marked by their respective owners.
* * *
Standard & Poor's Ratings Services placed a 'BB-' corporate
credit rating on Chicago, Illinois-based SSA Global Technologies
Inc. in July 2005. At the same time, Standard & Poor's put a
'BB-' rating, with a recovery rating of '3', to SSA Global's
$225 million senior secured bank facility, which will consist of
a $25 million revolving credit facility due 2010 and a $200
million term loan due 2011. S&P said the outlook is negative.
WAH YUEN: Intends to Declare Dividend on May 29
-----------------------------------------------
Wah Yuen Electrical Engineering Pte Limited, a company under
receivership and liquidation, will declare its first and final
dividend of 100% on May 29, 2006, as mandated by the High Court
of Singapore.
Contact: Lim Yeong Seng
Liquidator
111A Telok Ayer Street
Singapore, 068580
===============
T H A I L A N D
===============
NFC FERTILIZER: Posted THB101 Million Net Loss for 1Q
------------------------------------------------------
NFC Fertilizer Public Company Limited's latest financial
statement, submitted to the Stock Exchange of Thailand on
May 15, 2006, reflected a THB101 million net loss from its
operation within the first quarter ended March 31, 2006. The
figure was THB80 million higher than the net loss posted for
same period last year.
The Company cited a decrease of revenues from fertilizer sales
as one reason for incurring the net loss. NFC's sale for the
first quarter amounted to THB420 million, with sale volume of
55,704 tons, compared to last year's sale of THB538 million with
sale volume of 59,199 tons. The decrease of revenues from sales
is attributed to the Company's sale of low nutrient straight
fertilizer.
Cost of goods sold by the Company went up to THB778 million from
the previous year's THB653 million. NFC said that it is because
of the increase of sales volume with its intermediate products.
Selling and administrative expenses of the Company also
increased but this is because NFC has realized its plant
administrative expense and compensation expenses. NFC selling
and administrative expense totaled THB123 million compared to
last year's THB62 million.
The Company's financial report reflects these specific figures:
Total Current Assets: THB790,195,000
Total Current Liabilities: THB787,820,000
Total Revenue: THB831,854,000
Total Expenses: THB937,530,000
Net Loss: THB129,784,000
* * *
Headquartered in Bangkok, NFC Fertilizer Public Company Limited
-- http://www.nfc.co.th-- produces chemical fertilizer
containing nitrogen, phosphate, and potash, under its Nation
Fertilizer brand name. Additionally, it imports and distributes
urea, ammonium sulfate, and potassium chloride fertilizers. The
Company also distributes phosphoric acid and gypsum, which are
by-products of its fertilizer production.
In the third quarter of 2004, the Company had entered into a
debt restructuring in accordance with its business
rehabilitation plan. The Company then reported a gain on debt
restructuring of THB11.29 billion, which was presented as an
extraordinary item in the statement of income for the year ended
December 31, 2004. Subsequently, on August 24, 2004, the Plan
Administrator made a request to Thailand's Central Bankruptcy
Court to cancel its business rehabilitation, which the Court
approved on September 13, 2004.
Currently, management sees the Company as facing high risks both
in business and environmental matters. The Company's fertilizer
factory is greatly deteriorated and suffers from a lack of
maintenance from the past as a result of insufficient working
capital for a long time. Consequently, the Company needs
significant investment funds to repair the factory. This
results in increasing high costs, whereas the sale of fertilizer
is subject to seasonal factors, especially weather. Also,
government policy dictates a decrease in the use of chemical
fertilizers, which directly impacts the Company's revenues and
consequently further investment is not worthwhile. Therefore,
the management proposed to change the Company's business plan
toward providing logistic services including all warehouses and
related services.
The Company is classified under the Stock Exchange of Thailand's
Rehabco sector.
*********
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
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Natasha Fernandez, and Peter A. Chapman, Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9482.
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