/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060519.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, May 19, 2006, Vol. 9, No. 099 Headlines A U S T R A L I A & N E W Z E A L A N D ABC PLUMBING: Creditors' Proofs of Claim Due on May 29 A&G PROTECTIVE: Final Meeting Fixed for Today ALERTCARE SYSTEMS: Winds Up Business API TRAVEL: Creditors Must Prove Debts by June 6 AUR SERVICES: Intends to Declare First and Final Dividend AWARD TAXIS: Appoints Joint and Several Liquidators BANSON & HEDGES: Faces Liquidation Proceedings CISKO PTY: Court Orders Wind-up COLE BULK: Placed Under Voluntary Liquidation CONSTRUCTION LABOUR: Inability to Pay Debt Prompts Wind-up DALLE-NOGRE INVESTMENTS: Prepares to Distribute Assets DESWOD PTY: Receivers and Managers Step Aside EQUIPMENTNZ.COM: Liquidation Petition Hearing Fixed on May 29 FOTUAIKA FORESTRY: Court to Hear ACC's Liquidation Bid on June 2 GALEWIN PTY: Liquidator Explains Wind-up to Members G&D HUTH: Supreme Court Issues Winding Up Order HOMEZONE GEORGE: Evan Groombridge Appointed as Receiver J R CIVIL: Murray Named as Official Liquidator LOCKSHIRE PTY: Members Agree to Shut Down Business LISTEN 24-7: Enters Winding Up Process LORINDA INVESTMENTS: Court Orders Wind-up MAJESTIC FOUNDATION: Court to Hear Liquidation Petition June 15 NEWTON ABRAHAMS: Liquidator to Present Wind-up Report Today NYLEX LIMITED: Announces Major Business Restructuring NZBT LIMITED: Court to Hear Liquidation Bid on July 13 POWERSERVE MANAGEMENT: To Distribute Dividend on May 26 QANTAS AIRWAYS: To Cut 1,000 Jobs by Year-end to Pay Fuel Costs ROMPINE PTY: Enters Voluntary Liquidation SILVERWATTLE PTY: Decides to Halt Operations STOCKSDALE INVESTMENTS: Liquidators to Explain Wind-up Process VERTEX PTY: Creditors Agree on Wind-up VENTURE 2001: Liquidator Receives Proofs of Debt Until June 10 C H I N A & H O N G K O N G AXM PHARMA: Files Amended Financials for the Fiscal Year of 2005 BASELLAND LIMITED: Moyes and Yeung Tapped as Liquidators BEN KING: Names Joint Liquidators BETAKE MARKETING: Creditors' Proofs of Claim Due on June 12 FAIRVIEW PARK: To Hold Final General Meeting on June 12 FIC GLOBAL: Posts TWD655-Million First Quarter Losses FOCUS CENTURY: Creditors OK Liquidator's Appointment FORMES (CAUSEWAY BAY): Placed Into Liquidation FORMES (HONG KONG): Appoints Chu King Hei as Liquidator HONGKONG TELECOM: Court Names Official Liquidator JOY CAPITAL: Creditors' Proofs of Claim Due June 20 MAGAZINE HEIGHTS: Appoints Liquidators to Wind Up Operations OLD MERCURY: Court Appoints Joint Liquidators PINEROCK LIMITED: Enters Voluntary Liquidation QING MIAO: Given Until June 16 to Prove Debts REGAL SKY: Creditors' Proofs of Claim Due Next Month SHOWER ASSOCIATION: Creditors Must Prove Debt by June 16 SOUTH REGENT: Chan Chi Shing Ceases to Act as Liquidator SOUTHERN TRUST: Liquidator Presents Wind-up Report SUNSWAY LIMITED: Creditors to Prove Debts by June 16 TRENDFORD LIMITED: Members Appoint Liquidators YING YUE: Creditors to Prove Debts on May 27 ZABOL LIMITED: Names Joint and Several Liquidators * Fitch Says IPPs' Rising Leverage to Persist as Margins Decline I N D I A BARODA MERCANTILE: RBI Cancels License Due to Insolvency MONTARI INDUSTRIES: ICRA Reaffirms Default Rating NATIONAL TEXTILE: Revival Scheme Gets Green Light from BIFR PAAM PHARMACEUTICALS: Confirms LD and MD Rating of NCDs I N D O N E S I A PERTAMINA: Migas May Approve Cepu Project by June J A P A N HUSER LIMITED: President Arrested for Selling Defective Units * Corporate Bankruptcy Cases in April Decrease by 14.9% K O R E A NOVELIS INC: Lenders Extend Financial Report Filing to Sept. 29 NOVELIS INC: Moody's Reviews Low-B Ratings and May Downgrade M A L A Y S I A AKTIF LIFESTYLE: Mahiwara & Citatah Withdraw Restructure Support AMSTEEL CORPORATION: Ordered to Regularize Financial Condition AMSTEEL CORPORATION: Subsidiary Undergoes Voluntary Wind-up ANTAH HOLDINGS: Further Adjourns EGM to June 14 LANKHORST BERHAD: Unit Defaults on Banking Facility Repayments LANKHORST BERHAD: Court to Hear Default Case on June 7 MALAYSIA AIRLINES: Adds Vietnam to ASEAN Growth Market METROPLEX BERHAD: Bourse Halts Shares Trading METROPLEX BERHAD: Final Hearing of Appeal Set for June 16 PARK MAY: Net Loss Jumps to MYR1.3 Million in 1Q/FY06 PAXELENT CORPORATION: CIMB Files for Summary Judgment PAXELENT CORPORATION: Originating Summons Converted into Writ P H I L I P P I N E S DIVERSIFIED FINANCIAL: 2005 Net Loss Down by 5% MANILA ELECTRIC: Seeks to Expand and Improve Network NATIONAL POWER: Awaits ERC's Final Say on Settlement Agreement NATIONAL POWER: Can Provide Power to Iloilo Without Power Barge S I N G A P O R E CREATIVE TECHNOLOGY: Shares Gain After Suing Apple LINDETEVES-JACOBERG: To Undertake Renounceable Rights Issue T H A I L A N D CENTRAL PAPER: First Quarter Net Loss Goes Down by 20% PICNIC CORP: Failed Rights Offering may Led to Bankruptcy - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ABC PLUMBING: Creditors' Proofs of Claim Due on May 29 ------------------------------------------------------ The joint and several liquidators of ABC Plumbing Drainage & Gas Ltd, David Stuart Vance and Barry Phillip Jordan, require the Company's creditors to submit their proofs of claim on or before May 29, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: D.S. Vance McCallum Petterson Level 8, The Todd Bldg 95 Custom House Quay, Wellington New Zealand Telephone: (04) 499 7796 Fax: (04) 499 7784 A&G PROTECTIVE: Final Meeting Fixed for Today --------------------------------------------- The members and creditors of A&G Protective Services Pty Limited will hold a final meeting today, May 19, 2006. At the meeting, the parties will receive Liquidator Michael G. Jones' final account showing how the Company was wound up and its property disposed of. Contact: Michael G. Jones Liquidator c/o Jones Condon Chartered Accountants Level 13, 189 Kent Street Sydney, New South Wales Australia Telephone: (02) 9251 5222 ALERTCARE SYSTEMS: Winds Up Business ------------------------------------ The members of Alertcare Systems Pty Limited convened at a general meeting on April 3, 2006, and decided to wind up the Company's operations voluntarily. Contact: Gavin Thomas & Partners Level 9, 31 Market Street Sydney, Australia API TRAVEL: Creditors Must Prove Debts by June 6 ------------------------------------------------ Joint and Several Liquidators Jeffery Philip Meltzer and Rachel Mason are receiving proofs of debt from creditors of API Travel Group Ltd until June 6, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: R.K. Mason Meltzer Mason Heath, Chartered Accountants PO Box 6302, Wellesley Street Auckland, New Zealand Telephone: (09) 357 6150 Fax: (09) 357 6152 AUR SERVICES: Intends to Declare First and Final Dividend --------------------------------------------------------- AUR Services Pty Limited will declare a first and final dividend on May 28, 2006, to the exclusion of creditors who were not able to prove their claims. Contact: Mark Pearce Liquidator c/o Pearce & Heers Insolvency Accountants Level 8, 410 Queen Street Brisbane, Queensland 4000 Australia Telephone: 07 3221 0055 AWARD TAXIS: Appoints Joint and Several Liquidators --------------------------------------------------- David Stuart Vance and Barry Phillip Jordan were appointed joint and several liquidators of Award Taxis (1997) Ltd on April 24, 2006. Contact: Contact: D.S. Vance McCallum Petterson Level 8, The Todd Bldg 95 Custom House Quay, Wellington New Zealand Telephone: (04) 499 7796 Fax: (04) 499 7784 BANSON & HEDGES: Faces Liquidation Proceedings ---------------------------------------------- An application to liquidate Banson & Hedges was filed by Hirepool Limited before the High Court of Auckland on March 17, 2006. The Court will hear the application on June 1, 2006, at 10:00 a.m. Contact: Dianne S. Lester Credit Consultants Debt Services Ltd Level 3, 3-9 Church Street, Wellington New Zealand Telephone: (04) 470 5972 CISKO PTY: Court Orders Wind-up ------------------------------- The Supreme Court of New South Wales, on March 31, 2006, issued a winding up order against Cisko Pty Limited. The Court also ordered the appointment of R. J. Porter to oversee the wind-up process. Contact: R. J. Porter Liquidator Moore Stephens Chartered Accountants Level 6, 460 Church Street Parramatta, New South Wales 2150 Australia COLE BULK: Placed Under Voluntary Liquidation --------------------------------------------- The members of Cole Bulk Handling Pty Limited convened on March 31, 2006, and opted to liquidate the Company's operations. Subsequently, Kim David Holbrook was appointed as liquidator. Contact: Kim D. Holbrook Liquidator Holbrook & Associates Chartered Accountants Level 2, 19 Pier Street Perth 6001, Western Australia Australia CONSTRUCTION LABOUR: Inability to Pay Debt Prompts Wind-up ---------------------------------------------------------- At a meeting of Construction Labour Services (New South Wales) Pty Limited on April 6, 2006, it was determined that a voluntary wind-up is in the Company's best interests since it cannot pay its debts when they fall due. In this regard, Geoffrey Reidy was appointed as liquidator. Contact: Geoffrey Reidy Liquidator c/o Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia DALLE-NOGRE INVESTMENTS: Prepares to Distribute Assets ------------------------------------------------------ The members of Dalle-Nogre Investments Pty Limited resolved on March 24, 2006, to close the Company's business operations and distribute the proceeds of its assets disposal. Contact: Bruce Elliott Rowntree Level 2, 2 Barrack Street Sydney, New South Wales 2000 Australia DESWOD PTY: Receivers and Managers Step Aside --------------------------------------------- Clifford Stuart Rocke and Norman Mel Ashton ceased to act as the receivers and managers of the assets of Deswod Pty Limited on March 23, 2006. EQUIPMENTNZ.COM: Liquidation Petition Hearing Fixed on May 29 ------------------------------------------------------------- Lyttelton Port Company filed an application to liquidate EquipmentNZ.Com Ltd before the High Court of Christchurch on March 20, 2006. The High Court will hear the application on May 29, 2006, at 10:00 a.m. Contact: R.A. Fraser Credit Services (NZ) Ltd Level 6, 138 Victoria Street Christchurch, New Zealand FOTUAIKA FORESTRY: Court to Hear ACC's Liquidation Bid on June 2 ---------------------------------------------------------------- Accident Compensation Corporation, on April 11, 2006, filed before the High Court of Gisborne an application to liquidate Fotuaika Forestry Ltd. The Court will hear the petition on June 2, 2006, at 9:00 a.m. Parties wishing to appear before the hearing are required to lodge an appearance not later than May 30, 2006. Contact: Dianne S. Lester Credit Consultants Debt Services Ltd Level 3, 3-9 Church Street, Wellington New Zealand Telephone: (04) 470 5972 GALEWIN PTY: Liquidator Explains Wind-up to Members --------------------------------------------------- A final meeting of the members of Galewin Pty Limited will be held today, May 19, 2006. During the meeting, Liquidator D. F. Hamill will present an account of the manner of the Company's wind-up and property disposal. Contact: D. F. Hamill Liquidator Woinarski & Co. Chartered Accountants Suite 2601, Level 26, 100 Miller Street North Sydney, New South Wales 2060 Australia G&D HUTH: Supreme Court Issues Winding Up Order ----------------------------------------------- The Supreme Court of New South Wales had on April 6, 2006, ordered the wind-up of G&D Huth Pty Limited and the appointment of Geoffrey McDonald as liquidator. Contact: Geoffrey McDonald Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia Telephone: (02) 9263 2600 Fax: (02) 9263 2800 HOMEZONE GEORGE: Evan Groombridge Appointed as Receiver ------------------------------------------------------- Evan Philip Groombridge was, on March 22, 2006, appointed as receiver and manager of the assets and undertaking of Homezone George Street Pty Limited. Contact: Evan Philip Groombridge Receiver Level 10, South Tower, 1 Railway Street, Chatswood, New South Wales Australia J R CIVIL: Murray Named as Official Liquidator ---------------------------------------------- James Stewart Murray was appointed liquidator of J R Civil Developments Ltd on April 29, 2006. Contact: J.S. Murray PO Box 46, Orewa Auckland, New Zealand Telephone: (09) 426 8488 Fax: (09) 426 8486 LOCKSHIRE PTY: Members Agree to Shut Down Business -------------------------------------------------- At a general meeting of Lockshire Pty Limited on March 23, 2006, members decided to wind up the Company's business operations. Allan Wayne Cosgrove was appointed as liquidator. Contact: Allan Wayne Cosgrove Liquidator Warragul Springs, Sunnymead Road Roma, Queensland 4455 Australia LISTEN 24-7: Enters Winding Up Process -------------------------------------- Members of Listen 24-7 Pty Limited decided to close the Company's operations at a general meeting on March 30, 2006. Samuel Richwol was consequently appointed as liquidator. Contact: Samuel Richwol Liquidator O'Keefe Walton Richwol Chartered Accountants Suite 3, 431 Burke Road Glen Iris 3146, Australia LORINDA INVESTMENTS: Court Orders Wind-up ----------------------------------------- The Federal Court of Australia had on March 31, 2006, ordered the wind-up of Lorinda Investments Pty Limited. Steven Nicols was consequently named as liquidator. Contact: Steven Nicols Liquidator Level 2, 350 Kent Street New South Wales 2000, Australia MAJESTIC FOUNDATION: Court to Hear Liquidation Petition June 15 --------------------------------------------------------------- An application to put Majestic Foundation Co Ltd into liquidation will be heard before the High Court of Auckland on June 15, 2006, at 10:45 a.m. All About Animals Limited filed the application at the High Court on April 7, 2006. Contact: Robert Latton Lowndes Associates Level 5, Lowndes Assoc House 18 Shortland Street, Auckland New Zealand Telephone: (09) 373 3331 Fax: (09) 373 3423 NEWTON ABRAHAMS: Liquidator to Present Wind-up Report Today ----------------------------------------------------------- A final meeting of members of Newton Abrahams Pty Limited will be held today, May 19, 2006. G. A. Marx will present the manner of the Company's wind-up and property disposal at the meeting. Contact: G. A. Marx Liquidator Suite 601, 3 Waverley Street Bondi Junction, New South Wales 2022 Australia NYLEX LIMITED: Announces Major Business Restructuring ----------------------------------------------------- Nylex Limited issued a profit warning on May 17, 2006, and announced a major restructuring of its businesses, The Australian reports. According to the Australian Associated Press, Nylex stated that the underlying earnings of continuing businesses for the current financial year are now expected to be between AU$1.5 million and AU$2 million, which falls short of its previous guidance. The Company also disclosed that it expects to incur or make provisions for restructuring costs, and assets carrying value adjustments of AU$18 million. The AAP notes that the Company blames its earnings shortfall on the rising cost of raw materials, mostly linked to high oil prices. Automotive companies were also producing fewer cars than expected. In addition, Nylex had experienced machine reliability issues at its materials handling business at Seaford in Victoria, and sales of consumer products, water tanks and water conservation products had been lower than planned. As reported by the Troubled Company Reporter - Asia Pacific on March 16, 2006, Nylex had warned that its annual earnings will be halved after it posted a half-year net profit of AU$46.9 million, compared to a loss of AU$30.08 million in the same period in 2004. The half-year result had included the AU$48.3 million profit on the sale of the Company's AH Plant Hire division. Nylex Executive Chairman Peter George said that the performance of Nylex's businesses in the current half-year had been disappointing and the board had therefore approved a big cost- reduction program, which is expected to cost around AU$10 million. The Company has started talks with potential financiers and existing and potential senior debt providers. Moreover, the Company will reorganize its structure of eight separate business units into three divisions, The Australian adds. Nylex said it would not provide any guidance for the forthcoming financial year. However, Nylex expressed confidence that the restructured company would perform significantly better, since the restructure would better align its operations with the requirements of customers and reduce duplication. About Nylex Headquartered in Melbourne, Australia, Nylex Limited -- http://www.nylexlimited.com.au/-- is an Australian marketer, manufacturer and service provider of plant hire services, building products, automotive products, plastic products, and engineered products. Nylex owed its bank lenders more than AU$400 million at the peak and has basically been in a controlled liquidation of the mish-mash of assets built up in the 1990s. Nylex has been in restructuring for 11 years, the past six saw the Company management balance between keeping creditors happy and placating shareholders, who over time lost 90% of their investments. The Company has sold many businesses to reduce its debt, moved some production offshore and now has a strong balance sheet and is looking for acquisitions. It has also launched a major push to build on its strong position in garden water control to become a leader in overall household water conservation. The Troubled Company Reporter - Asia Pacific reported on Nov. 29, 2005, that Nylex's future earnings are uncertain after shareholders sold the Company's profitable asset, Lucrative AH Plant Hire, to a rival controlled by Nylex shareholder and Seven Network Chairman Kerry Stokes. Shareholders agreed to sell AH Plant Hire to the Stokes- controlled National Hire group for AU$111 million, which just scrapped in at the bottom of the valuation range calculated by independent expert Ernst & Young Valuation Services. Nylex directors decided to sell AH Plant Hire after failing to complete the sale of the group's automotive business, which had been expected to bring in AU$40 million. Nylex is operating under the close supervision of a group of banks, which are keen to end the five-year asset sell-off. NZBT LIMITED: Court to Hear Liquidation Bid on July 13 ------------------------------------------------------ An application to put NZBT Limited into liquidation will be heard before the High Court of Auckland on July 13, 2006, at 10:00 a.m. The High Court received the application from the Body Corporate on April 4, 2006. Contact: S.N. McKenzie Glaistor Ennor, Solicitors 1/F., Norfolk House 18 High Street, Auckland New Zealand POWERSERVE MANAGEMENT: To Distribute Dividend on May 26 ------------------------------------------------------- Powerserve Management Pty Ltd will distribute its first and final dividend on May 26, 2006. Creditors who were not able to submit their proofs of claim are excluded from sharing in the dividend distribution. Contact: Robyn Erskine Peter Goodin Joint and Several Liquidators Brooke Bird & Co. Insolvency Practitioners 471 Riversdale Road, Hawthorn Victoria 3123, Australia Telephone: (03) 9882 6666 Fax: (03) 9882 8855 QANTAS AIRWAYS: To Cut 1,000 Jobs by Year-end to Pay Fuel Costs --------------------------------------------------------------- Qantas Airways Ltd. will slash 1,000 management, support and administration jobs by the end of 2006 to counter a looming AU$1 billion surge in its fuel bill, The Age reports. Bloomberg News notes that Qantas' annual fuel bill has increased from AU$2 billion in 2004-2005, to AU$3.8 billion, Bloomberg News notes. As reported in the Troubled Company Reporter - Asia Pacific on May 5, 2006, Qantas Airways had indicated that it would have to revise its five-year program to slash AU$3 billion in annual costs to buffer itself against the recent surge in fuel prices. The airline's so-called five-year Sustainable Future Program, which was kicked off during the height of the SARS crisis in mid-2003, aims to save AU$1.58 billion in annual costs by June 30, 2006. Qantas Chief Executive Officer had said that the carrier cannot make up for the fuel cost increase it is facing by raising fuel surcharges. "Fuel surcharges can only recover part of this increase, otherwise we risk both depressing the market and losing market share," The Age quotes Mr. Dixon as telling his staff. Mr. Dixon said that Qantas will continue to explore every avenue to reduce costs further to ensure its profitability and growth. The airline seeking to cut costs by eliminating jobs, reducing agent commissions, switching to more fuel-efficient planes and using its budget offshoot Jetstar on low-profit holiday routes. Workers' Rage Over Job Cuts Looms According to The Age, Australian Services Union assistant national secretary Linda White said that the Qantas workforce would not take the job cuts lying down. She said that it was unlikely the cuts could be achieved through voluntary redundancies. Ms. White has expressed concern that the new round of cuts was a ploy by the Company to move jobs overseas. However, Mr. Gregg had already said earlier that cuts "should not be seen as an attack on workers. This an attack on a cost base that makes the business inefficient." He said that Qantas has to make it efficient if it were to survive. The May 5 TCR-AP reported stated that Qantas is already pushing in enterprise bargaining talks to slash the overtime provisions of 2,500 maintenance workers, a move unions say will result in a 30% cut in take home pay. About Qantas Airways Headquartered in Sydney, Australia, Qantas Airways -- http://www.qantas.com.au/-- is the world's second oldest airline and is also recognized as one of the leading long- distance airlines, having pioneered services from Australia to North America and Europe. The Qantas Group employs approximately 38,000 staff across a network that spans 145 destinations in Australia, Asia-Pacific, Americas, Europe and Africa. The Qantas Group also operates a diverse portfolio of airline-related businesses, including Engineering Technical Operations and Maintenance Services, Airports and Catering, Qantas Freight, Qantas Holidays, Qantas Defence Services and Qantas Consulting. Qantas started having problems in 2003 with the ill effects of the Iraq War and the SARS outbreak, on top of the already difficult period following the events of the 9/11 terrorist attacks, the Afghanistan war and the terror threats, which lead to a downturn in bookings to other Asian countries, and affecting most of European routes as well. The adverse effects also affected other areas of the business including Qantas Flight Catering, Qantas Holidays and Australian Airlines. Qantas started reviewing, and widened, the range of initiatives it had put in place following the triggering events. These initiatives included the reduction of staffing numbers through the use of accumulated leave to the equivalent of 2,500 full- time employees by June 2003 and by the equivalent of 1,000 employees between July and September 2003; a restructuring program involving 1,000 redundancies, 400 permanent positions eliminated through attrition and 300 permanent positions converted from full time to part time; a freeze on capital and discretionary expenditure; expansion of the leave without pay program; increased use of part time workers; significant restructuring of work practices and activities; and reduction of capital expenditure, including retirement of some aircraft and deferral of delivery of new aircraft. In December 2003, Qantas unveiled its new low cost-carrier airline, Jetstar Asia, which later proved to be a headache after failing to gain access to crucial markets such as Indonesia and China. In June 2005, Qantas admitted it is still struggling to recover its investment in Jetstar, despite having managed to lease out four of its unused Airbus 320s. Qantas went into another round of job cuts in late June 2005, a move that was punctuated with more than 600 jobs slashed in the first half of its financial year. The latest round of job cuts announced in February 2006 came amidst uncertainty of outsourcing the airline's heavy maintenance works overseas. ROMPINE PTY: Enters Voluntary Liquidation ----------------------------------------- At a meeting on March 31, 2006, the members of Rompine Pty Limited decided to place the Company into liquidation. Nick Combis was subsequently appointed as liquidator. Contact: Nick Combis Liquidator Vincents Chartered Accountants Level 27, 239 George Street Brisbane, Australia Telephone: (07) 3854 4555 Fax: (07) 3236 2452 e-mail: ncombis@vincents.com.au SILVERWATTLE PTY: Decides to Halt Operations -------------------------------------------- At a general meeting of Silverwattle Pty Ltd held on April 5, 2006, members agreed to voluntarily wind up the Company's operations. They named Frank Lo Pilato to act as liquidator. Contact: Frank Lo Pilato Liquidator RSM Bird Cameron Partners Chartered Accountants Level 1, 103-105 Northbourne Avenue Canberra 2601, Australia Telephone: (02) 6247 5988 Fax: (02) 6262 8633 STOCKSDALE INVESTMENTS: Liquidators to Explain Wind-up Process -------------------------------------------------------------- Members and creditors of Stocksdale Investments Pty Limited will hold a final meeting today, May 19, 2006, for them to receive Liquidator Richard Albarran's account on the manner in which the Company was wound up and its property was disposed of. Contact: Richard Albarran Liquidator Level 29, 31 Market Street Sydney, New South Wales 2000 Australia VERTEX PTY: Creditors Agree on Wind-up -------------------------------------- The creditors of Vertex (New South Wales) Pty Limited decided that it is appropriate and necessary to wind up the Company's operations at a meeting on February 17, 2006. David Anthony Hurst and Andrew Hugh Jenner Wily were appointed as liquidators. Contact: David A. Hurst Andrew H. J. Wily Liquidators Armstrong Wily Chartered Accountants Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia VENTURE 2001: Liquidator Receives Proofs of Debt Until June 10 -------------------------------------------------------------- Creditors of Venture 2001 Ltd must submit their proofs of claims to Liquidator Thomas Alan Graham, on or before June 10, 2006. Contact: T.A. Graham PO Box 8304 Cherrywood, Tauranga New Zealand Telephone: (07) 576 9040 Fax: (07) 576 9071 ================================ C H I N A & H O N G K O N G ================================ AXM PHARMA: Files Amended Financials for the Fiscal Year of 2005 ---------------------------------------------------------------- AXM Pharma, Inc., filed its amended financial statements on Form 10-KSB for the year ended Dec. 31, 2005, with the Securities and Exchange Commission on May 1, 2006. The Company reported a $11,088,281 net loss on $2,021,728 of revenues for the year ended Dec. 31, 2005. At Dec. 31, 2005, the Company's balance sheet showed $13,729,011 in total assets, $9,639,604 in total liabilities, and $4,089,407 in stockholders' equity. The Company's Dec. 31 balance sheet also showed strained liquidity with $4,060,321 in total current assets available to pay $9,639,604 in total current liabilities coming due within the next 12 months. Loss of Sunkist License In 2004, the Company entered into a Trademark Licensing Agreement with Sunkist Growers Inc. that granted the Company exclusive rights to manufacture, market and sell certain vitamin and vitamin supplements under the Sunkist brand name and trademark until December 2005 in Hong Kong, Taiwan and Macau and until December 2008 in China. Sales under these licenses accounted for approximately 60% of the Company's total sales in 2005. The agreement also granted a right of first refusal for any territory in the rest of Asia where Sunkist does not currently license the product categories covered by the agreement with the Company. Under the terms of the agreement, the Company is required to achieve certain sales targets each year, for each category of product licensed under the agreement. In order to support the Sunkist license agreement, the Company entered into distribution agreements with Zuellig Pharma Ltd. and Zuellig & Woo (Hong Kong) Co., Ltd., in March 2005 for distribution of the Sunkist brand products in China, Hong Kong, Macau and Taiwan. In addition, the Company entered into agreements with Kerryflex Supply Chain Solutions Limited and executed a Memorandum of Understanding with DKSH Taiwan Limited, to distribute the Sunkist brand products in Hong Kong and Taiwan. In October 2005, the Company terminated the distribution agreement with Zuellig Pharma, Inc., and Zuellig & Woo (Hong Kong) Co., Ltd. The Company failed to achieve certain minimum sales targets during 2004 and 2005 for each category of product and failed to pay the minimum royalties stipulated under the license agreement. As a result, Sunkist terminated its agreement with the company for sale of products in China on Feb. 20, 2006. The separate license agreement with Sunkist relating to rights to sell certain products in Hong Kong, Macau and Taiwan expired on its stated termination date in December 2005 and has not been renewed. Sunkist has notified the Company that it is in default with respect to minimum royalties and has demanded payment of $368,000. SEC Investigation The SEC is currently conducting an investigation of the Company's restatement of its June 30, 2005, financial statements. Under prior management, the Company recorded approximately $2.8 million of revenues related to the sale of Sunkist-branded products through its distributor, Zuellig. These revenues constituted substantially all of the Company's revenues for the quarter ended June 30, 2005. In October 2005, under current management, the Company determined that those sales were in substance consignment arrangements. The Company could not determine if it could collect past due accounts since collections were not due until the distributors shipped the products; therefore, the Company should not have recognized any revenues from those sales. The Company reported this matter to the SEC. The SEC decided to conduct an investigation to determine if the Company and others may have violated the reporting, anti-fraud, accounting and other provisions of the federal securities laws. The investigation is in a relatively early stage and the Company cannot predict its outcome. The Company is fully cooperating with the SEC in this investigation. Going Concern Doubt Lopez, Blevins, Bork & Associates, LLP, in Houston, Texas, raised substantial doubt about AXM Pharma, 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 losses and need for additional capital. A full-text copy of the Company's 2005 Annual Report is available for free http://ResearchArchives.com/t/s?969 Headquartered in City of Industry, California, AXM Pharma, Inc. (AMEX: AXJ) -- http://www.axmpharma.com/-- through its wholly owned subsidiary, AXM Pharma Shenyang, Inc., is a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang has an operating history of approximately 10 years. BASELLAND LIMITED: Moyes and Yeung Tapped as Liquidators -------------------------------------------------------- On May 2, 2006, Paul David Stuart Moyes and Yeung Betty Yuen were picked to facilitate the liquidation of Baselland Limited's assets. Contact: Paul David Stuart Moyes Yeung Betty Yuen Joint and Several Liquidators Level 28, Three Pacific Place 1 Queen's Road East Hong Kong hereby BEN KING: Names Joint Liquidators --------------------------------- Chan Siu Cheung and Hadaway Martina Nicholas were appointed joint liquidators of Ben King Limited by a special resolution passed by members on May 2, 2006. Contact: Chan Siu Cheung Liquidator 7A, Royal Garden, 27 Repulse Bay Road Hadaway Martin Nicholas Liquidator House C, 11 Hang Hau Wing Lung Road DD238 Lot 653, Sai Kung New Territories Hong Kong BETAKE MARKETING: Creditors' Proofs of Claim Due on June 12 ----------------------------------------------------------- The creditors of Betake Marketing Limited are required to submit thei proofs of debt by June 12, 2006. Failure to comply with the requirement will exclude creditors from any distribution the Company will make. Contact: Lee Kwok On, Alexander Liquidator Rooms 1901-2 Park-In Commercial Centre 56 Dundas Street Kowloon FAIRVIEW PARK: To Hold Final General Meeting on June 12 ------------------------------------------------------- The final general meeting of the members of Fairview Park International Christian Church Limited will be held on June 12, 2006, at Room 1303, 13/F., Kowloon Building, 555 Nathan Road, in Kowloon, Hong Kong. At the meeting, members will get an account of the manner of the Company's wind-up and property disposal from Liquidator Alfred Yau Hong Ho. FIC GLOBAL: Posts TWD655-Million First Quarter Losses ----------------------------------------------------- Electronics manufacturer FIC Global Incorporated continues to record net losses despite undergoing corporate restructuring in 2004, Bloomberg relates. The Company's financial statement for the first quarter ended March 31, 2006 showed TWD655-million net loss as compared to a net loss of TWD778 million in the same quarter of the previous fiscal year. FIC Global's financial report reflects these figures: 1Q/FY2006 1Q/FY2005 Revenue TWD$9,913,000 TWD$8,176,000 Pretax Profit (TWD$655,835,000) (TWD$776,970,000) Net Profit (TWD$655,776,000) (TWD$778,735,000) Earnings Per Share Basic (1.30) (1.56) Diluted N/A N/A * * * FIC Global Inc. -- www.fic.com.tw -- IS engaged in the manufacture and sale of personal computer, motherboard, notebook and computer circuit. It also provides investment services. Products include mobile and bluetooth solutions, graphic cards and other computer accessories. Operations are carried out in Taiwan, Europe and Asia. FOCUS CENTURY: Creditors OK Liquidator's Appointment ---------------------------------------------------- Creditors of Focus Century Limited convened on April 24, 2006, and resolved to wind up the Company's operations. Tang Lai Sheung was appointed as liquidator of the Company at a creditors' meeting held later that day. Contact: Tang Lai Sheung Liquidator Room 1206, 12/F New Victory House 93 Wing Lok Street Central, Hong Kong FORMES (CAUSEWAY BAY): Placed Into Liquidation ---------------------------------------------- Members of Formes (Causeway Bay) Limited, on April 28, 2006, resolved by a special resolution to have the Company liquidated. The members also decided to appoint Chu King Hei as liquidator. Contact: Chu King Hei, Victor Rooms 905-909 Yu To Sang Building, 37 Queen's Road Central Hong Kong FORMES (HONG KONG): Appoints Chu King Hei as Liquidator ------------------------------------------------------- Members of Formes (Hong Kong) Limited, on April 28, 2006, passed a special resolution to appoint Chu King Hei as liquidator for Formes (Hong Kong) Limited. Contact: Chu King Hei, Victor Rooms 905-909 Yu To Sang Building 37 Queen's Road Central, Hong Kong HONGKONG TELECOM: Court Names Official Liquidator ------------------------------------------------- The High Court of Hong Kong appointed Paul David Stuart Moyes and Yeung Betty Yuen as joint and several liquidators for Hongkong Telecom Fund Management Limited on May 2, 2006. Contact: Paul David Stuart Moyes Yeung Betty Yuen Level 28, Three Pacific Place 1 Queen's Road East Hong Kong JOY CAPITAL: Creditors' Proofs of Claim Due June 20 --------------------------------------------------- The creditors of Joy Capital Trading Limited are required to submit their proofs of claim by June 20, 2006, or risk being excluded from sharing in the Company's assets distribution. Contact: Chan Sek Kwan Rays Liquidator Unit G, 12/F. Seabright Plaza 9-23 Shell Street Hong Kong MAGAZINE HEIGHTS: Appoints Liquidators to Wind Up Operations ------------------------------------------------------------ Paul David Stuart Moyes and Yeung Betty Yuen were appointed as joint and several liquidators of Magazine Heights Limited on May 2, 2006. Contact: Paul David Stuart Moyes Yeung Betty Yuen Joint Liquidators Level 28, Three Pacific Place 1 Queen's Road East Hong Kong OLD MERCURY: Court Appoints Joint Liquidators --------------------------------------------- The High Court of Hong Kong, on May 2, 2006, appointed Paul David Stuart Moyes and Yeung Betty Yuen as liquidators to act jointly and severally for Old Mercury House Limited. Contact: Paul David Stuart Moyes Yeung Betty Yuen Joint and Several Liquidators Level 28, Three Pacific Place 1 Queen's Road East Hong Kong PINEROCK LIMITED: Enters Voluntary Liquidation ---------------------------------------------- On May 2, 2006, members of Pinerock Limited resolved that the Company be wound up voluntarily. Moyes Paul David Stuart and Yuen Betty Yuen were subsequently appointed to liquidate and distribute the Company's assets. Contact: Moyes Paul David Stuart Yuen Betty Joint Liquidators Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong QING MIAO: Given Until June 16 to Prove Debts --------------------------------------------- Liquidators of Qing Miao Poetry Association Limited will require the Company's creditors to submit their proofs of claim on or before June 16, 2006. Failure to establish proofs of debt on the due date will exclude creditors from sharing in any distribution the Company will make. Contact: Lam Chi Wai Liquidator Units C & D, 9/F. Neich Tower 128 Gloucester Road Wanchai, Hong Kong REGAL SKY: Creditors' Proofs of Claim Due Next Month ---------------------------------------------------- Liquidator Chan Chun Chung is asking creditors of Regal Sky Knitters Limited to submit their proofs of claim on or before June 16, 2006. Failure to comply with the requirement will exclude any creditor from the benefit of any distribution of the Company will make. Contact: Chan Chun Chung Liquidator Units C & D, 9/F., Neich Tower 128 Gloucester Road Wanchai, Hong Kong SHOWER ASSOCIATION: Creditors Must Prove Debt by June 16 -------------------------------------------------------- Creditors of Shower Association Limited are requested to submit their proofs of debt on or before June 16, 2006. The Company's creditors who are unable to prove their claims are excluded from the benefit of the dividend distribution. Contact: Ho Kwok Cheong Liquidator Rooms 1609-12, Nan Fung Tower 173 Des Voeux Road Central Hong Kong SOUTH REGENT: Chan Chi Shing Ceases to Act as Liquidator -------------------------------------------------------- Chan Chi Shing ceased to act as liquidator of South Regent Limited on April 30, 2006. Contact: Chan Chi Shing 20th Floor, Greatmany Centre 111 Queen's Road East, Hong Kong SOUTHERN TRUST: Liquidator Presents Wind-up Report -------------------------------------------------- A final meeting of The Southern Trust & Finance Company Limited will be conducted on June 16, 2006, at 3:00 o'clock in the afternoon. At the meeting, Liquidator George Law Kwan Wah will present his final accounts regarding the Company's wind-up operations. Contact: George Law Kwan Wah Liquidator Room 903, 9th Floor General Commercial Building 156-164 Des Voeux Road Central Hong Kong SUNSWAY LIMITED: Creditors to Prove Debts by June 16 ---------------------------------------------------- Sunsway Limited will receive proofs of debt from its creditors until June 16, 2006. Failure of creditors to establish proofs of debt on the due date will exclude them from sharing in any distribution the Company will make. Contact: Tse Wai Hing Liquidator Suites 1403-4, 14/F Nan Fung Tower 173 Des Voeux Road Central, Hong Kong TRENDFORD LIMITED: Members Appoint Liquidators ---------------------------------------------- Yeung Chi Wai was appointed as liquidator of Trendford Limited by virtue of a special resolution passed by the Company's members on May 6, 2006. Contact: Yeung Chi Wai Liquidator Rooms 301-2, Lucky Building 39 Wellington Street Central, Hong Kong YING YUE: Creditors to Prove Debts on May 27 -------------------------------------------- Ying Yue Garment Factory Limited will be receiving creditors' proofs of debt on or before May 27, 2006. Failure to comply with the requirement will exclude any creditor from the benefit of any distribution the Company will make. Contact: Wong Ka Sek Liquidator 2/F, Double Building 22 Stanley Street Central, Hong Kong ZABOL LIMITED: Names Joint and Several Liquidators -------------------------------------------------- Joint and Several Liquidators Paul David Stuart Moyes and Yeung Betty Yuen were appointed for Zabol Limited on May 2, 2006. Contact: Paul David Stuart Moyes Yeung Betty Yuen Joint and Several Liquidators Level 28, Three Pacific Place 1 Queen's Road East Hong Kong * Fitch Says IPPs' Rising Leverage to Persist as Margins Decline ---------------------------------------------------------------- http://www.fitchratings.com/corporate/events/press_releases_deta il.cfm?pr_id=247591 Fitch Ratings on May 17, 2006, said that the trend of declining margins and rising leverage of Chinese Independent Power Producers is likely to continue in light of sustainable high fuel prices due to rising competitive demand and potential supply disruptions. The financial performance of the sector would be adversely affected in the absence of commensurate tariff adjustments, particularly as China's increasingly stringent environmental laws on rising pollution could cause operating issues and further increase operating and capital expenditure. "The IPPs would need to re-examine their capital structure and possibly add new equity as their financial profiles weaken owing to the rapid increase in leverage to fund organic growth and acquisitions," said Shang Ma, associate director in Fitch's Asia-Pacific Energy and Utilities team, in a special report titled "Chinese Independent Power Producers - Rising Leverage". Fitch makes that observation in a study of the five Chinese IPPs listed in Hong Kong, namely: * China Power International Development Limited; * China Resources Power Holdings Company Limited; * Datang International Power Generation Company Ltd; * Huadian Power International Corporation Limited; and * Huaneng Power International, Inc. -- rated Long-term Issuer Default Rating 'BBB+'/Stable. Fitch notes that the IPP sector in China is highly fragmented with the above five IPPs and their parents owning and managing only about 37% of the total power capacity. Although restructuring started in 1997, Fitch notes that China's power industry, and in particular the IPP sector, is still highly regulated with the government involved in key issues such as tariff setting, capacity management and resource allocation. Nevertheless, advances have been made, such as the removal of the cap on the contract thermal coal price for power generation and the nationwide implementation of a "fuel-tariff pass-through mechanism" that provides for a regular review of the on-grid tariff in relation to fuel costs. "The government seems committed to progressive reform that will lead to a more transparent and market-oriented industry structure, but there are some reservations regarding the pace and consistency of execution," commented Mr. Ma. Fitch generally views the transparency and flexibility of the tariff mechanism as a major foundation of a robust power sector. Fitch notes that while insufficient capacity amid strong power demand growth has resulted in power shortages and blackouts in the past, the aggressive capacity construction in recent years may lead to excess supply, especially if actual demand growth were to falter in line with the government's aim of lowering the amount of power consumed per unit of GDP by 20% in 2010. The underdeveloped interconnection between the various regional power grids in China further inhibits the supply and demand balance, and substantial financial resources and time are required for its development. Against the above concerns, Fitch says that a fundamental strength of the sector is the strong domestic electricity demand, which is well-supported by the continuation of China's robust economic expansion. "Strong growth in manufacturing activities and rising affluence would lead to higher power consumption in China, which has one of the lowest levels of per capita installed capacity and electricity consumption in the world," added Mr. Ma. Fitch notes that China has sufficient domestic coal resources, the third-largest in the world, to fuel its predominantly thermal generation. Nevertheless, in view of the pollution of coal generation and increasing environmental awareness, the government is actively promoting renewable energy sources to diversify the country's power generation mix and reduce its reliance on coal. New laws and measures are reportedly being formulated to pave the way for a more balanced generation mix. ========= I N D I A ========= BARODA MERCANTILE: RBI Cancels License Due to Insolvency -------------------------------------------------------- The Reserve Bank of India, on May 16, 2006, ordered the cancellation of Baroda Mercantile Co-operative Bank Ltd's license after examining all options for the bank's revival. Subsequent to the cancellation of license, RBI ordered the Registrar of Co-operative Societies to wind up Baroda Mercantile and appoint a liquidator. RBI's decision came after determining that Baroda Mercantile has ceased to be solvent and has already caused inconvenience to its depositors. According to RBI, Baroda Mercantile's financial statements as of June 30, 2002, revealed that the bank's financial position was unsatisfactory. The Bank's financial accounts as of June 30, 2004, revealed further deterioration in its financial condition. Its deposits were eroded as realizable value of paid-up capital and reserve was in the negative. RBI had issued a notice to the bank on January 13, 2005, asking it to show cause as to why the license granted to it to conduct banking business should not be cancelled. As Baroda Mercantile did not have a viable plan of action for its revival and the chances of its revival were remote, RBI cancelled the Bank's license in the interest of its depositors. With the cancellation of its license and commencement of liquidation proceedings, the process of paying the Baroda Mercantile depositors was set in motion subject to the terms and conditions of the Deposit Insurance Scheme. Contact: Shri S.Rajgopal General Manager - Urban Banks Department Reserve Bank of India La Gajjar Chambers, Ashram Road P. B. No. 1, Ahmedabad 380 009, India Telephone Number: (079) 2658-5184 Fax Number: (079) 26584853 e-mail address: ubdahmedabad@rbi.org.in MONTARI INDUSTRIES: ICRA Reaffirms Default Rating ------------------------------------------------- ICRA Limited has re-affirmed the Partly-Convertible Debenture rating of Montari Industries Limited at LD, indicating default. Montari Industries recorded heavy losses since 1994-95. According to its last balance sheet dated September 30, 1999, it was defaulting on principal and interest payments on all its term loans. The Board for Industrial and Financial Reconstruction has recommended Montari Industries' winding up in February 2003. However, the actual status of the affairs of the Company cannot be determined. Thus, in the absence of any additional information on the Company's operations, ICRA retains default rating for Montari Industries. About ICRA ICRA Limited was incorporated in 1991 as an independent and professional company. ICRA is leading provider of investment information and credit rating services in India. ICRA's major shareholders include Moody's Investors Service and leading Indian financial institutions and banks. With the growth and globalization of the Indian capital markets leading to an exponential surge in demand for professional credit risk analysis, ICRA has been proactive in widening its service offerings, executing assignments including credit ratings, equity tradings, specialized performance gradings and mandated studies spanning diverse industrial sectors. NATIONAL TEXTILE: Revival Scheme Gets Green Light from BIFR ----------------------------------------------------------- The Board for Industrial and Financial Reconstruction has approved the rescue package for National Textile Corporation, Bharat Textile News reports. The scheme will cover all 119 mills owned by National Textile. The Troubled Company Reporter - Asia Pacific recounts that out of the 119 mills, 65 unviable ones have been closed and two located in Pondicherry have been transferred to the State Government of Pondicherry. Thus, National Textile presently has 52 potentially viable mills. While reviewing the implementation of earlier approved Schemes in respect of the remaining 52 mills, the Government decided to modernize 22 mills at an estimated cost of INR530 crores. The modernization exercise is undertaken by National Textile itself through sale of surplus assets, the TCR-AP reported. Some 29 mills are available for revival through joint venture with private partnership. The Government of India told Bharat Textile that National Textile has already started modernization of mills by placing orders for machinery. About National Textile Corporation Headquartered in New Delhi, India, National Textile Corporation Ltd -- http://texmin.nic.in/-- is the single largest textile central public sector enterprise under Ministry of Textiles managing 52 textile mills through its nine subsidiary companies spread all over India. The strength of the group is around 22000 employees. The annual turnover of the Company in the year 2004-05 was approximately INR638 crores. In 2002, the Board for Industrial and Financial Reconstruction approved the revival of 53 viable mills and closure of 66 unviable mills. National Textile is in the process of a major restructuring. A new corporate plan is under formulation for repositioning of the organization by merging all its nine subsidiaries into one holding company. PAAM PHARMACEUTICALS: Confirms LD and MD Rating of NCDs ------------------------------------------------------- ICRA Limited re-affirms the LD and MD rating assigned to the Non Convertible Debenture and the Fixed Deposit programmes of Paam Pharmaceuticals (Delhi) Limited, indicating default. Paam Pharmaceuticals recorded heavy losses in 1997-98 and defaulted on all its interest and principal obligations since 1998-99 including INR294 million NCD rated by ICRA. Subsequently, the Board for Industrial and Financial Reconstruction gave the Company a notice of winding up in February 2004. However, the actual status of the affairs of Paam Pharmaceuticals cannot be determined. Thus, in the absence of any additional information on the Company's operations, ICRA retains default rating for Paam Pharmaceuticals. About ICRA ICRA Limited was incorporated in 1991 as an independent and professional company. ICRA is leading provider of investment information and credit rating services in India. ICRA's major shareholders include Moody's Investors Service and leading Indian financial institutions and banks. With the growth and globalization of the Indian capital markets leading to an exponential surge in demand for professional credit risk analysis, ICRA has been proactive in widening its service offerings, executing assignments including credit ratings, equity tradings, specialized performance gradings and mandated studies spanning diverse industrial sectors. ================= I N D O N E S I A ================= PERTAMINA: Migas May Approve Cepu Project by June ------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on April 10, 2006, that Exxon Mobil Corporation and PT Pertamina have signed a Joint Operating Agreement in March 2006, for the development of the Cepu oil block located in East and Central Java. The TCR-AP report said that PT Pertamina and Exxon Mobil have obtained 25 proposals from unnamed investors to finance the Cepu development project. In an update, XFN-Asia relates that oil-and-gas upstream regulator BP Migas is expected to approve the development of the giant Cepu oil field, citing PT Pertamina EP general manager Estu Bagyo. According to Mr. Bagyo, BP Migas said it would report the outcome of its evaluation by June 2006. The TCR-AP recounts that under the Cepu development plan, contractors will drill 40 wells, comprising 36 development wells and four exploration wells, at the giant oil block. Pertamina is targeting to begin production by end 2008 or early 2009, with peak output seen at 160,000 barrels per day or nearly 16% of Indonesia's current nationwide output. Cepu's five oil fields hold estimated reserves of 600 million barrels of oil and 1.7 trillion cubic feet of gas. About PT Pertamina PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No. 31/2003 has changed its legal status from a special state-owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, with the rest being met by imports. In 2003, PT Pertamina director of finance Alfred Rohimone disclosed that the state-owned oil company's financial condition was in critical condition because its expenditure was surpassing its income due to its obligation to meet domestic demand with fuel oil bought at higher prices on he international market. Mr. Rohimone stated that with a liquidity position below IDR2 trillion, the Company was already bleeding. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, a debt owed by Pertamina to United States firm Karaha Bodas Company has risen from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the company's failure to pay the compensation immediately. ========= J A P A N ========= HUSER LIMITED: President Arrested for Selling Defective Units ------------------------------------------------------------- Police arrested Huser Limited President Susmu Ojima on May 17, 2006, for selling condominiums despite knowing that the units were built with fabricated structural data, Crisscross News reports. The Japan Times says Mr. Ojima was detained along with other individuals believed to be involved in a structural data fabrication scandal, when former architect Hidetsugu Aneha provided falsified earthquake-resistance data for buildings under construction. The Troubled Company Reporter - Asia Pacific stated in a February 20, 2006 report that Mr. Aneha had falsified earthquake resistance data for several buildings. The Times recounts that property developer Huser built 26 condominium complexes around Japan, which were designed using the structural data provided by the now-unlicensed architect. According to the reports, Mr. Ojima has denied the charges against him. Police are expected to file fraud charges against Mr. Ojima. Mainichi Daily News relates that, according to investigators, Mr. Ojima had been informed by a building inspection agency on October 27, 2005, that some Huser condominiums may have been built with falsified structural data. Nonetheless, he sold a condominium unit at the Kanagawa Prefecture to an individual, who was asked to remit JPY50 million to a Huser bank account on October 28, 2005, but was not told that the condo unit was built with substandard earthquake-resistance data. According to TCR-AP, the Tokyo District Court had, on Feb. 16, 2006, initiated bankruptcy proceedings against Huser Limited, after around 300 owners of nine Huser condominium building units with substandard earthquake resistance asked the Court to protect the Company's assets, hoping to get distributions from such assets. The court declared that Huser's liabilities exceed its assets, and named lawyer Hideo Seto as administrator for the bankruptcy procedures. Contact: Hideo Seto Administrator for Huser Limited Telephone: 81 3 5501 4002 * Corporate Bankruptcy Cases in April Decrease by 14.9% ------------------------------------------------------- Japanese corporate bankruptcies fell 14.9% in April 2006 from a year earlier to 1,087 cases, according to credit research firm Tokyo Shoko Research Ltd. Bloomberg News notes that Tokyo Shoko indicated a 13.4% decrease in the April bankruptcy cases compared to last month's 1,255. As of April 2006, the companies undergoing bankruptcies have a collective debt of JPY427,000,000,000. This debt amount is 7.61% less than last year's. In March 2006, total debt under the bankruptcy cases amounted JPY513,000,000,000. ========= K O R E A ========= NOVELIS INC: Lenders Extend Financial Report Filing to Sept. 29 --------------------------------------------------------------- As requested, Novelis Inc.'s lenders have agreed to waive the Company's non-compliance with the provision of its Jan. 7, 2005, Credit Agreement that requires it to furnish timely consolidated financial statements in the 2005 Annual Report on Form 10-K and the Form 10-Qs with the United States Securities and Exchange Commission for the first, second and third quarters of 2006. The waiver extends until Sept. 29, 2006, which is the deadline for filing the Annual Report for 2005. The quarterly filings for the first, second and third quarters of 2006 must be completed by Oct. 31, Nov. 30, and Dec. 29, 2006, respectively. The waiver also extends until June 15, 2006, the deadline for filing the third quarter of 2005, and the re-stated first and second quarters of 2005. On May 5, 2006, the Company applied to the Ontario Superior Court of Justice for an order extending the time for holding the annual meeting date to a date not later than Dec. 31, 2006. Novelis received the order on May 9, 2006, allowing it to extend the date. The Company is currently evaluating the time that will be required to complete, print and mail its 2005 Annual Report. Once the analysis is finalized, the Company will announce the new date for the annual meeting and record date. A full-text copy of the Credit Agreement is available at no charge at http://ResearchArchives.com/t/s?7fc Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL)(TSX: NVL) -- http://www.novelis.com/ -- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis Asia has majority ownership in two separate entities: Novelis Korea Limited and Aluminium Company of Malaysia. Together, they operate three manufacturing facilities in the Asian region and manufacture a broad range of sheet and light gauge products. Since the 1999 inception of its joint venture with Taihan Electric Wire Company, Novelis Korea Limited has doubled its production and sales with its two existing rolling facilities to become the largest rolled products company in Asia. The company provides its product throughout the Asia-Pacific region to construction, industrial and beverage can markets, as well as being a major supplier of reroll for the light gauge foil industry. Novelis Korea also manufactures foundry ingot for the domestic automotive industry and operates a can scrap recycling operation, both from its location in Ulsan, Korea. * * * According to the Troubled Company Reporter on April 11, 2006, Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit and bank loan ratings and 'B' senior unsecured debt rating on Novelis Inc. on CreditWatch with negative implications. NOVELIS INC: Moody's Reviews Low-B Ratings and May Downgrade ------------------------------------------------------------ Moody's Investors Service placed the ratings of Novelis Inc., and its subsidiary, Novelis Corporation, under review for possible downgrade. In a related rating action, Moody's changed Novelis Inc.'s speculative grade liquidity rating to SGL-3 from SGL-2. While Moody's expects the company to file its Form 10Q for the third quarter 2005 and restated second and first quarter 2005 Form 10Q's within the time frame provided by the fourth waiver, the review is prompted by the company's further push-out of the time frame in which the Form 10K for 2005 and the Form 10Q's for each of the first three quarters of 2006 will be provided. Under the company's fourth waiver with the lenders in the revolving credit and the term loan B facilities the deadline for filing the Form 10Q's for the first three quarters of 2005 is extended to June 15, 2006, the 2005 K is extended to Sep. 29, 2006, while the filing dates for the first, second and third quarter 10Q's are extended to October 31, 2006, November 30, 2006, and December 29, 2006, respectively. While Moody's notes the company disclosed that debt has been reduced by approximately $380 million since the spin-off, bringing total debt to approximately $2.5 billion, the lack of timely audited financials and quarterly Form 10Q's continues to result in uncertainty over the company's financial performance. In the event the company is not able to meet the revised filing dates Moody's would consider withdrawing the company's ratings at that time. The change in the speculative grade liquidity rating to SGL-3 is driven principally by concerns over liquidity available from external sources. The continued need to obtain waivers from the bank group to extend the date required for the delivery of financial statements makes Novelis vulnerable to the decisions by the banks on a relatively short time scale. While the banks have been amenable to date in providing waivers, there is no assurance that they would do so going forward. Given the shorter than twelve month time horizon provided by the waivers, Moody's methodology for SGL ratings would consider amounts drawn, either under the revolver or the term loans, to represent a debt maturity over the next several months. In addition, given the continued strengthening in aluminum prices and Moody's expectation that working capital requirements will increase on the significant price run-up since the beginning of 2006, continued availability under the revolver remains a key issue. Downgrades: Issuer: Novelis Inc. * Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-2 On Review for Possible Downgrade: Issuer: Novelis Corporation * Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Ba2 Issuer: Novelis Inc. * Corporate Family Rating, Placed on Review for Possible Downgrade, currently Ba3; * Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Ba2; * Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B1 Outlook Actions: Issuer: Novelis Corporation * Outlook, Changed To Rating Under Review From Stable Issuer: Novelis Inc. * Outlook, Changed To Rating Under Review From Stable Headquartered in Atlanta, Georgia, Novelis Inc. is the worlds leading aluminum rolled products producer. Revenues were $7.8 billion in 2004. Novelis Asia has majority ownership in two separate entities: Novelis Korea Limited and Aluminium Company of Malaysia. Together, they operate three manufacturing facilities in the Asian region and manufacture a broad range of sheet and light gauge products. =============== M A L A Y S I A =============== AKTIF LIFESTYLE: Mahiwara & Citatah Withdraw Restructure Support ---------------------------------------------------------------- Mahawira Sdn Bhd and Citatah AMS Marble Sdn Bhd have mutually decided not to proceed with Aktif Lifestyle Berhad's proposed restructuring scheme, thus the Company has withdrawn its appeal with the Securities Commission seeking reconsideration of the restructuring plan. The Troubled Company Reporter - Asia Pacific recounts that on January 27, 2006, Aktif appealed the SC's decision to reject the Company's Restructuring Scheme. The Proposed Restructuring Scheme, which seeks to regularize the financial condition of Aktif and its subsidiaries, provides for: -- the acquisition of 100% equity interest in Mahawira Sdn Bhd and 54% equity interest in Citatah AMS Marble Sdn Bhd; -- an exemption from undertaking a mandatory offer; -- the scheme of arrangement with the Aktif shareholders; -- a restricted offer for sale; -- a private placement; -- a private debt securities issuance; -- the transfer of listing status; and -- the disposal of the Company. The SC, on December 28, 2005, rejected the Company's Proposed Restructuring Scheme because: * an integral component of the Proposed Restructuring Scheme is the proposed acquisition of Mahiwara Sdn Bhd. When compared against previous proposals involving the acquisition of Mahawira, the SC asserted that the true valuation of Mahawira cannot be determined with certainty; and * of corporate governance issues relating to the previous proposed corporate exercises involving Mahawira and Mahawira's shareholders. About Aktif Lifestyle Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle Corporation Berhad's principal activities is the operation of specialty retail stores. Other activity includes investment holding. The Company has defaulted on several loan facilities and incurred continuous losses. It embarked on various corporate exercises aimed at regularizing its financial condition. Last year, the Company presented a proposed restructuring scheme, which did not win the Securities Commission's favor due to uncertainty in assets valuation and concerns on corporate governance issues. An appeal to SC to review its decision on the Proposed Restructuring Scheme was already submitted. The Proposed Restructuring Scheme, if successfully implemented will have the new listed Group be involved in the business of quarrying, manufacturing, trading of granite products as well as the supply and installation of marble and granite related products. AMSTEEL CORPORATION: Ordered to Regularize Financial Condition -------------------------------------------------------------- Amsteel Corporation Berhad was classified under Bursa Malaysia Securities Berhad's Amended Practice Note 17 category. The Company was identified as an affected listed issuer because: -- the auditors have expressed a modified opinion with emphasis on the Company's going concern in the Company's latest audited financial statement for the financial year ended June 30, 2005; and -- the Company's consolidated shareholders' equity as of June 30, 2005, represented 17.3% of the issued and paid-up capital of the Company. In respect of the unaudited interim results of the Company for the second quarter ended December 31, 2005, Amsteel's consolidated shareholders' equity represented 16.8% of the issued and paid-up capital of the Company. As an affected listed issuer, Amsteel is required: * to submit a substantive plan to regularize its financial condition within eight months from May 9, 2006; * to announce the status of the Plan or its endeavors to formulate a plan on a monthly basis; * to announce its compliance or failure to comply, with any particular obligation imposed by Bursa Securities pursuant to the Amended PN 17; and * to appoint a merchant banker or a participating organization that may act as a principal adviser who will make the announcement on the details of the Plan and the timeline for the complete implementation of the Plan. Failure to comply with the obligations imposed by the Amended PN 17 may lead to the suspension or delisting of Amsteel shares from the Bursa Securities. The Company is looking into formulating a plan to regularize its financial condition. About Amsteel Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation Berhad is involved in the provision of plantation management, property development, management and contractor; hotel operation and food court. The Company is also involved in transportation and logistic services, department stores, nominee services, trading securities, manufacture and sale of tools, dies, tyres, rubber compound, light trucks and buses, financial management; distributes steel products, develops real estate property; cultivation of rubber and oil palm, golf and country club, sale and distribute Suzuki motorcycles, beer brewing and mineral water bottling. The Company's accumulated losses as of December 31, 2005, have hit MYR2.13 billion. As of December 31, 2005, the Company's balance sheet showed MYR1,042,142,000 in total current assets, MYR1,754,384,000 in total current liabilities. The Company has a deficit of MYR712,242,000. AMSTEEL CORPORATION: Subsidiary Undergoes Voluntary Wind-up ----------------------------------------------------------- Infojati Trading Sdn Bhd, a dormant wholly owned subsidiary of Amsteel Corporation Berhad, on February 16, 2006, filed with the Companies Commission of Malaysia the relevant statutory forms together with the Liquidator's Statement of Accounts in relation to the members' voluntary wind-up. In accordance with Section 272(5) of the Companies Act, 1965, Infojati was dissolved on May 16, 2006. According to Amsteel, the dissolution does not have any material impact on the earnings and net assets of the group. About Amsteel Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation Berhad is involved in the provision of plantation management, property development, management and contractor; hotel operation and food court. The Company is also involved in transportation and logistic services, department stores, nominee services, trading securities, manufacture and sale of tools, dies, tyres, rubber compound, light trucks and buses, financial management; distributes steel products, develops real estate property; cultivation of rubber and oil palm, golf and country club, sale and distribute Suzuki motorcycles, beer brewing and mineral water bottling. The Company's accumulated losses as of December 31, 2005, have hit MYR2.13 billion. As of December 31, 2005, the Company's balance sheet showed MYR1,042,142,000 in total current assets, MYR1,754,384,000 in total current liabilities. The Company has a deficit of MYR712,242,000. ANTAH HOLDINGS: Further Adjourns EGM to June 14 ----------------------------------------------- Antah Holdings Berhad's Adjourned Extraodinary General Meeting has been further adjourned to June 14, 2006, at 10:00 a.m., at Balai Tunku Abdul Rahman, Royal Commonwealth Society, No. 4, Jalan Birah, Off Jalan Batai, in Damansara Heights, Kuala Lumpur. During the meeting, members will be asked to: -- receive the Company's Audited Financial Statements for the financial year ended June 30, 2005, together with the Reports of the Directors and the Auditors; -- approve the payment of Directors' Fees for the financial year ended June 30, 2005. The EGM was originally adjourned to May 19, 2006, the Troubled Company Reporter - Asia Pacific recounts. Notwithstanding the change in meeting date, the Company confirmed that all previous forms of proxy, which were deposited at the Registered Office for the EGM held on April 22, 2006, would still be entitled to be present and to vote at the Adjourned EGM on June 14. About Antah Holdings Berhad Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom and Singapore. Aside from reporting consecutive losses, Antah is also unable to meet its debt obligations and is currently awaiting the approval of relevant authorities for the implementation of its restructuring scheme pursuant to a scheme of arrangement under Section 176 of the Companies Act, 1965. According to the Troubled Company Reporter - Asia Pacific on May 11, 2006, financial institutions extended a total loan facility of MYR281,401,000 to the Company. To date, Antah paid MYR48,247,000. As of April 30, 2006, Antah's total loan default plus interest has reached MYR286,442,000. LANKHORST BERHAD: Unit Defaults on Banking Facility Repayments -------------------------------------------------------------- Lankhorst Berhad's subsidiary, Lankhorst M&E Sdn Bhd, had defaulted in its banking facility repayments to its lenders, the Company revealed in a statement to Bursa Malaysia Securities Berhad. Affin-ACF Finance Berhad, one of M&E's lenders, has obtained a hearing date on June 5, 2006, with regard to its MYR136,144 claim, excluding accruing interest. The claim is in respect of a hire purchase facility obtained to acquire one motor vehicle that was subsequently repossessed on September 23, 2005. M&E is experiencing financial difficulties and the cash flow from its operations is only sufficient to meet its working capital requirements. Lankhorst is in the process of formulating a corporate restructuring exercise, which includes M&E's debt restructuring. As reported by the Troubled Company Reporter - Asia Pacific, the Company is in the process of formulating a restructuring scheme and its group of companies have been granted a Restraining Order by the Kuala Lumpur High Court on May 30, 2005, which has been subsequently extended until 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. LANKHORST BERHAD: Court to Hear Default Case on June 7 ------------------------------------------------------ The High Court of Kuala Lumpur will hear Bank Simpanan Nasional's demand suit against Lankhorst Berhad on June 7, 2006, Bank Simpanan is demanding MYR72,160 plus interest from Lankhorst as payment for a hire purchase, which Lankhorst defaulted on. In order to address the issue, Lankhorst is formulating corporate exercises, which includes a debt restructuring scheme. Lankhorst explained that it is unable to settle its debt obligations since its current cash flow is only enough to meet working capital requirements. As reported by the Troubled Company Reporter - Asia Pacific, the Company is in the process of formulating a restructuring scheme and its group of companies have been granted a Restraining Order by the Kuala Lumpur High Court on May 30, 2005, which has been subsequently extended until 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. MALAYSIA AIRLINES: Adds Vietnam to ASEAN Growth Market ------------------------------------------------------ Malaysia Airlines has identified Vietnam as the third ASEAN growth market next to Indonesia and Thailand, Vietnam Net reports. Regional Manager for ASEAN Syed Abdillah Aziz told Vietnam Net that Malaysia Airlines will see a double digit increase in passenger transport and cargo transport in the region. To meet the increasing travel demand, Malaysia Airlines will add two flights between Hanoi and Kuala Lumpur in August, the report says. There are currently 14 weekly flights between Ho Chi Minh City and Kuala Lumpur, and seven between Hanoi and the Malaysian capital. As reported by the Troubled Company Reporter - Asia Pacific on May 2, 2006, Malaysia Airlines is opening new air routes connecting Vietnam's Ho Chi Minh City to Cape Town and Johannesburg in South Africa, Enditem reports. The carrier will operate three flights a week from Ho Chi Minh to the two South African destinations in cooperation with five Vietnamese travel companies. The new route is part of the carrier's plan to expand its global operations, TCR-AP said. TCR-AP also revealed on April 6, 2006, that Malaysia Airlines will start flying to Bahrain in July this year. The route will be served by a 240-seater Airbus A330 aircraft, which will fly from Kuala Lumpur and back every Wednesday and Friday. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, and MYR616 million for the nine-month ended Dec. 31, 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion in order to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. METROPLEX BERHAD: Bourse Halts Shares Trading --------------------------------------------- Bursa Malaysia Securities Berhad has suspended trading in Mertoplex Berhad's shares effective May 16, 2006, until further notice. The trading suspension is related to the appointment of a provisional liquidator for Metroplex's subsidiary, Metroplex Holdings Berhad, by Morgan Stanley Emerging Markets on May 15, 2006. As reported by the Troubled Company Reporter - Asia Pacific, a wind-up petition had been served on Metroplex Berhad on April 26, 2005, by the solicitors of Morgan Stanley Emerging Markets Incorporated. In relation to the petition, Morgan Stanley had also filed summons for the appointment of a provisional liquidator for Metroplex. 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: Final Hearing of Appeal Set for June 16 --------------------------------------------------------- The Kuala Lumpur High Court has adjourned to June 16, 2006, the final hearing of Metroplex Berhad's appeal against a summary judgment handed down by the Court on February 7, 2005. The judgment refers to Kuala Lumpur High Court ordering Metroplex Berhad to pay its MYR59,315,450 debt to OCBC Bank (Malaysia) Berhad. The debt represents Metroplex's default in payment of the revolving credit facility and overdraft facility granted by OCBC to the Company. The Company has appealed against the Judgment and asked its solicitors to file for a stay of execution of the Judgment. The hearing date for the Appeal has already been postponed several times. 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. PARK MAY: Net Loss Jumps to MYR1.3 Million in 1Q/FY06 ----------------------------------------------------- Park May Berhad has, on May 16, 2006, filed its First Quarter Results for the period ended March 31, 2006, with Bursa Malaysia Securities Berhad. For the quarter under review, the Group recorded a revenue of MYR8,000,000. Compared to the previous year's results, the revenue for the quarter was lower by MYR1 million. This is due to lower availability of buses on the road throughout the year because of the Company's ageing fleet. However, the commensurate reduction was not realized due to higher diesel price which led to higher loss for the quarter. Lower finance cost was due to MYR12 million settlement of CP/MTN, made in July 2005. The Company booked a net loss of MYR1.7 million in the current quarter compared to MYR1.3 million in the corresponding quarter last fiscal year. Its accumulated losses of MYR138,475,000 was also higher as of March 31, compared to the previous year's MYR134,944,000. As of March 31, 2006, the Company's balance sheet showed total assets of MYR 38.9 million and total liabilities of MYR92.1 million. Park May's latest balance sheet also showed stained liquidity with MYR13,973,000 of total current assets available to pay total current liabilities of MYR87,038,000 in the next 12 months. The Directors do not recommend dividend on ordinary shares of MYR1.00 each for the current period. The Group's future is significantly dependent on the outcome of the Group's Proposed Restructuring Scheme, as well as continuing support from shareholders, financial institutions and creditors. In the meantime, the Group continues to undertake measures to enhance its revenue generating capacity and to reduce its costs. There has been no significant development in respect of the Scheme to regularize the Park May group of companies' financial position. The Company is awaiting the decision of the Securities Commission on the Company's application, submitted on November 25, 2005, for an extension of time of 11 months from July 27, 2005, until June 26, 2006, for the Company to complete the Scheme. 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 8,141 9,007 8,141 9,007 * Profit/(loss) before tax -1,766 -1,405 -1,766 -1,405 * Profit/(loss) after tax and minority interest -1,779 -1,390 -1,779 -1,390 * Net profit/(loss) for the period -1,788 -1,405 -1,788 -1,405 * Basic earnings/(loss) per shares (sen) -2.40 -1.90 -2.40 -1.90 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End -0.7100 -0.6800 A full-text copy of the Company's First Quarter Report is available for free at: http://bankrupt.com/misc/tcrap_parkmay051806.pdf About Park May Berhad Headquartered in Kuala Lumpur, Malaysia, Park May Berhad -- http://www.parkmayberhad.com/-- provides public bus transportation in Peninsular Malaysia, categorized as stage bus and express bus. Its other activities include operation and construction of light rail transit system, trading and property holding, and investment holding and managing operation. The Company has defaulted in its payment of monthly interest of MYR1.1 million on its MYR135.6 million Combined and Converted Short Term Loan Facility due on April8, 1999. On December 30, 1999, the Corporate Debt Restructuring Committee successfully assisted Park May Berhad to finalize a debt restructuring scheme with its lenders and main suppliers involving debt outstanding as at even date of MYR146 million. On April 17, 2000, the Securities Commission approved Park May's Proposals. On February 28, 2003, Park May registered a deficit in shareholders' equity on a consolidated basis of MYR23.17 million, making it an affected listed issuer under Bursa Malaysia Securities' Practice Note 4 category. As an Affected Listed Issuer, the Company is required to regularize its financial condition. PAXELENT CORPORATION: CIMB Files for Summary Judgment ----------------------------------------------------- Commerce International Merchant Bakers Berhad, on May 16, 2006, applied for summary judgment against Paxelent Corporation Berhad for the sum of MYR511,318.13 plus interest at the rate of 1% per month from June 16, 2005, until the date of judgment, and further interest at 8% per annum from the date of judgment until full settlement of costs. Paxelent has instructed its solicitors to oppose the CIMB's application. The Court has not yet fixed a hearing date on the summary judgment application. A Writ of Summons dated September 16, 2005, and Statement of Claim dated August 24, 2005, had been served on Paxelent on October 20, 2005, by CIMB's solicitors. CIMB said that it had provided advisory or professional services to the Company. CIMB claimed that Pexalent incurred MYR700,000 in total fees in respect of corporate proposals, which include: -- a renounceable two call rights issue in Paxelent on the basis of one new ordinary share of MYR1.00 each for every one existing share held; -- the acquisition of 49.00% equity interest in Xiptech Holdings Pte Ltd to be satisfied by the issuance of Paxelent shares; -- the acquisition of 59.78% equity interest in Mass Media Interactive Sdn Bhd to be satisfied by the issuance of Paxelent shares; and -- an employee share option scheme for eligible Paxelent employees and its subsidiaries. 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 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. PAXELENT CORPORATION: Originating Summons Converted into Writ ------------------------------------------------------------- On June 21, 2004, Paxelent Corporation Berhad was served with an Originating Summons taken out by SP Techvance Corporation Sdn Bhd and Seri Platinum (M) Sdn Bhd in the Kuala Lumpur High Court, with each claiming a sum of MYR1 million, general damages and special damages to be assessed. The Company, together with legal firm Messrs. Cheng Kiat & Lim, do account to the two plaintiffs all profits made from the disposal of the rights under the provisional allotment of the 5,737,400 Rights Issue Shares. However, the Company does not admit liability to the claim and said that it will be vigorously defending itself. In an update on May 9, 2006, the Court has allowed the Originating Summons to be converted into a Writ. In view of the conversion, the Court has struck out the Plaintiff's application to cross-examine Cheng Kiat & Lim's witnesses with costs. The Court has fixed a timeline of 30 days for the Plaintiff to file its Statement of Claim and, subsequently, 30 days for the Defendants to file their defense. The matter has been fixed for mention on July 24, 2006. 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 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. ===================== P H I L I P P I N E S ===================== DIVERSIFIED FINANCIAL: 2005 Net Loss Down by 5% ----------------------------------------------- Diversified Financial Network, Inc.'s net loss for the year ended December 31, 2005, dropped 5% to PHP56.59 million, from a PHP59.62 million in 2004, the Troubled Company Reporter - Asia Pacific learns from the Company's financial accounts submitted to the Philippine Stock Exchange. DFNN's revenue also fell 15% to PHP96.20 million in 2005, from PHP113.15 million in 2004. Amidst a significant decrease in cost, the Company suffered a 23.5% slowdown in service fees due to longer project completion time and a 20% drop in advertising revenues. Diversified Financial Network, Inc. For the year ended December 31, 2005 In PHP Millions (except Loss Per Share) 2005 2004 Current Assets 35.95 53.95 Total Assets 78.08 121.75 Current Liabilities 81.55 77.22 Total Liabilities 130.58 120.84 Capital Deficiency 52.50 0.91 Revenue 96.20 113.15 Net Loss 56.59 59.62 Loss Per Share 0.58 0.67 Diversified Financial Network, Inc. -- http://www.dfnn.com/-- is an I.T. solutions provider and systems integrator. Backed by its domain expertise in financial services, the Company has become a proprietary software technology, wireless and secure solutions partner of leading corporations. The DFNN Group of Companies generates revenue through solutions, custom, tailor- fit I.T. solutions to retail financial institutions, rental revenue and wireless and other I.T. products and services. * * * Adding to the Company's insolvent balance sheet, DFNN might have further liquidity problems. On April 9, 2003, DFNN signed an equipment lease agreement with the Philippine Charity Sweepstakes Office to lease necessary hardware and software for PCSO's wireless and payment solutions. The PCSO accepted the system in the first quarter of 2005, but has yet to launch its Wireless Payment Service. DFNN, meanwhile, incurred significant costs and invested substantial funds in the project, as well as in the development and delivery of work under the PCSO contract. These costs and investments created a tight cash flow situation for the Company. THE PCSO unilaterally suspended the project, despite the fact that the DFNN had already fulfilled all of its deliverables under the contract. The suspension of the PCSO Project, including the significant losses and tight cash flow position in 2004 and in prior years, indicated uncertainty as to the Group's ability to continue operating in the normal course of business. DFNN has started working towards the recovery of the costs and damages against PCSO. A main legal proceeding is filed with the Office of the Ombudsman against the PCSO and some of its officers, as well as the former secretary of Social Welfare. Moreover, DFNN entered into a long-term information technology service agreement with a foreign corporation in January 2006, relating to the systems design and software upgrade of a wireless gaming application. The contract resulted to an initial upfront payment of PHP32.94 million, which DFNN.com received in March 2006. Another PHP32.94 million will be deposited in DFNN.com escrow account in the second quarter of 2006. Risk Factors DFNN has identified risk factors that could materially affect its operations: 1. Project Based Revenue Most of the Company's projects have implementation cycles from six to 24 months. The Company does not experience any seasonality or cyclicality in its interim operations. Revenue comparisons on an annual or quarterly basis may not be comparable. As a result, reliance on historical operating results cannot be used to indicate future performance. Management has been tasked to focus on generating revenue through recurring income models. 2. Risk of Delay for Government Projects In the normal course of business with any Philippine Government entity, approvals from the Office of the Government Corporate Counsel and Commission on Audit are normally required. These approvals may be delayed from time to time. The Company is aware of this risk and is mitigating this risk through diligent application to the necessary approving authorities, prior to engaging with any government entity as a potential client. 3. High Dependence on a Single Customer for Service Revenue A significant portion of the Company's revenue is generated from the foreign entities of a Japanese client. Although these entities behave as separate customers, a Japanese client owns the beneficial ownership of these entities. A loss of or failure by this Japanese client could adversely affect the Group's performance. Management is aware of this potential risk and is currently developing diversification strategies for its client base. 4. Mismatch of Leasing Revenue and Obligations The Company is currently on a long-term lease obligation for approximately 10 years to 2016 for its leased premises at the Bonifacio Technology Center, formerly Hatchasia Globalcity Center. The Company's subtenants have five- year lease terms or less. There is an exposure to releasing risk when some of these subtenant leases expire. The Company is negotiating with a majority of the subtenants to have their leases coterminous with the Company's lease obligations. MANILA ELECTRIC: Seeks to Expand and Improve Network ---------------------------------------------------- The Energy Regulatory Commission granted a long-term Certificate of Public Convenience & Necessity to Manila Electric Co., allowing the Company to improve and widen its distribution network in Metro Manila, Abs-CBN News says. The ERC announced its decision on May 9, 2006, to grant a 25- year certificate to Manila Electric for the construction, installation, operation and maintenance of an electric service in these areas: * Caloocan, * Las Pinas, * Malabon, * Makati, * Mandaluyong, * Manila, * Navotas, * Paranaque, * Pasay, * Quezon, and * San Juan. Aside from Metro Manila, the Company can also distribute power to certain areas in Batangas, Bulacan, Cavite, Laguna, Pampanga, Quezon and Rizal until 2028. The CPCN would also allow Manila Electric to conduct improvements on some substation power transformers worth PHP3.27 billion, since the ERC had noted that a customer of the Company had experienced an average of up to 13 hours of power interruption in 2002. According to the Manila Times, Manila Electric plans to develop these projects: -- a substation in Legaspi Village, Makati, worth PHP595.52 million; -- a substation for Terminal 3 of the Ninoy Aquino International Airport, worth PHP424.86 million; -- a substation for the Central Bank of the Philippines I-A worth PHP490.32 million; and -- two substations in Tutuban, Divisoria, and South Port, totaling PHP327.83 million. The ERC said that with Manila Electric's financial figures from 2001 to 2003, it is capable of developing these projects. 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. NATIONAL POWER: Awaits ERC's Final Say on Settlement Agreement -------------------------------------------------------------- The National Power Corp. and Manila Electric Co. are awaiting a final decision from the Energy Regulatory Commission on a revised PHP14.3-billion settlement agreement relating to a terminated 10-year power supply contract between the two firms, the Manila Bulletin reports. A report by the Troubled Company Reporter - Asia Pacific on April 28, 2006, said that Manila Electric had violated its 10- year supply contract with National Power when it decided to stop buying electricity from the Company in order to source it from Napocor sister firm First Gas Philippine Corp. The two power firms had initially agreed to settle the terminated contract for PHP20 billion, but a later TCR-AP report on May 5, 2006, cited the Energy Regulatory Commission as showing records that both firms had later revised the settlement amount to PHP14.3 billion. According to the Bulletin, ERC chairman Rodolfo B. Albano is concerned about possible legal roadblocks to the revised agreement, as the firms had changed the settlement deal after the public hearings on the issue had already been concluded. The Commission is mulling over a cost adjustment clause in the contract, which read that: "Meralco's actual monthly offtake from NPC shall be reckoned against baseline quantities []. In case of Meralco's inability to source energy from NPC at the baseline quantities other than those set forth in Section 2.2. (i.e. force majeure, strikes, etc.), there will be an upward adjustment to the settlement amount due for that billing period." The ERC 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 Quezon City, Philippines, National Power Corp. -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, National Power sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company started selling off its generation assets to help pay for the utility's estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers, and reported a PHP29.9 billion loss in 2004, after a PHP117-billion net loss in 2003. The Government absorbed National Power's PHP200 billion debt, incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that National Power posted a PHP16 million profit in 2005, the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of an improved fuel mix and better fuel prices. NATIONAL POWER: Can Provide Power to Iloilo Without Power Barge --------------------------------------------------------------- The National Power Corp. said in a press conference that it can provide the necessary power to Iloilo City without transferring the power barge if the city needs only three megawatts, the Manila Times relates. As reported by the Troubled Company Reporter - Asia Pacific on May 17, 2006, National Power would transfer Napocor Power Barge 101 to Iloilo from Cebu by June or July, in order to provide additional power to Iloilo City. In an agreement signed on May 5, 2006, National Power would supply electricity to Panay Electric Company, which distributes power to 180 local communities in Western Visayas. The Times writes that the Company has sufficient capacity to cover the deficit of Mirant Corp. to Iloilo power distributor Panay Electric Co., since it has 22 megawatts of surplus power, according to Panay diesel power plant operations manager Tito Cabunagan. National Power has provided 142 megawatts of electricity for Panay island, excluding Iloilo City, but the island consumes about 120 megawatts, leaving more than enough for Iloilo. Despite this, however, Napocor Visayas chief Eduardo Eroy said they must also look at a possible interconnection between the Company and Panay Electric Company. * * * Headquartered in Quezon City, Philippines, National Power Corp. -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, National Power sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company started selling off its generation assets to help pay for the utility's estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers, and later reported a PHP29.9 billion loss in 2004, after a PHP117-billion net loss in 2003. The Government absorbed National Power's PHP200 billion debt, incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that National Power posted a PHP16 million profit in 2005, the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of an improved fuel mix and better fuel prices. ================= S I N G A P O R E ================= CREATIVE TECHNOLOGY: Shares Gain After Suing Apple -------------------------------------------------- Creative Technology Limited's stock continued to go up on May 18, 2006, following an infringement suit it filed against United States electronics giant Apple Computer Incorporated, Channel News Asia reveals. The Troubled Company Reporter - Asia Pacific reported that on May 15, 2006, Creative filed a complaint with the United States International Trade Commission seeking an investigation on whether Apple Computer has violated Section 337 of the Tariff Act of 1930 through its importation and sale after importation into the United States of iPods and iPod Nanos that infringe U.S. Patent 6,928,433, which Creative refers to as the "Zen Patent." In its complaint, Creative said that the U.S. Patent Office issued the Zen patent to Creative on August 9, 2005. According to the TCR-AP, Creative also filed a lawsuit against Apple Computer with the United States District Court for the Northern District of California that seeks an injunction and increased damages for Apple Computer's willful infringement of the Zen Patent. Creative shares were up 85 cents to SGD10 per share after investors snapped up the stock following news of the legal filings the Company made against its U.S. rival and current market leader, Channel News Asia says. Analysts, however, believe that the share price hike is temporary. Analysts told Channel News Asia that Creative's stock market gains are unlikely to be sustained, as the filings would divert company resources amid sharply falling earnings. Kim Eng Securities believes that the suit may bring short-term relief to the Company, but it will distract management attention and divert company resources when both are needed to turn the business around. On the other hand, brokerage house UOB said that it is uncertain that Creative will win a complicated legal battle such as patent infringement with Apple, particularly in a U.S. court. Channel News recounts that Creative chairman and chief executive officer, Sim Wong Hoo, in 2004, challenged Apple in the portable music market. However, Creative has since found it difficult to compete with the U.S. firm in the global market. The challenge has taken its toll on Creative's earnings. The TCR-AP reported on May 4, 2006, that Creative posted a net loss of US$114.33 million in the third quarter ended March 31, 2006, which reversed a year-ago profit of US$15.91 million. The Company blamed the loss on one-time charges and a drop in flash memory prices, which led to an inventory writedown. About Creative Technology Singapore-based Creative Technology Ltd. makes digital entertainment products, including portable audio players, PC sound cards, graphics accelerator cards, and digital cameras. The Company also makes modems and CD and DVD drives for PCs. Subsidiaries include Cambridge Soundworks, Creative Labs, and E- MU/ENSONIQ. Tough competition in the electronics market has hurt Creative, causing it to incur recurring losses. The Company reported a net loss of US$114.33 million in the three months to March 31, 2006, reversing the year-ago profit of US$15.91 million due to one-time charges and a drop in flash memory prices, which led to an inventory writedown. The Company is also facing ongoing disputes with several companies in the United States. Creative also periodically receives licensing inquiries and threats of potential future patent claims from a variety of entities, including Lucent Technologies, MPEG LA, Dyancore Holdings, Advanced Audio Devices and Nichia Corporation. LINDETEVES-JACOBERG: To Undertake Renounceable Rights Issue ----------------------------------------------------------- Lindeteves-Jacoberg Limited is proposing to undertake a renounceable rights issue of up to 248,056,294 new ordinary shares in the Company's capital at an issue price of SGD0.12 for each rights share. The Proposed Rights Issue is currently not underwritten and the Company in talks with potential underwriters for this purpose. Hong Leong Finance Limited has been appointed to manage the undertaking. Subscription Price The Rights Shares are proposed to be offered to entitled shareholders at the subscription price of SD0.12 for each Rights Share on the basis of one Rights Share for every two shares held by, or standing to the credit of the securities accounts. The subscription price represents a discount of approximately 20% to the closing price of SGD0.15 per Share on the Singapore Stock Exchange on May 17, 2006. Irrevocable Undertaking ATB Austria Antriebstechnik AG, a controlling shareholder of the Company, holding interests in 253,017,421 Shares representing approximately 51% of the issued share capital of the Company, has irrevocably undertaken to subscribe for all its Rights Shares entitlements under the Rights Issue. On March 17 and April 24, 2006, the Company received two loans of EUR400,000 and EUR1.5 million from ATB as interim funding for the Group's working capital. ATB's obligations under the Undertaking are given on the basis and subject to the condition that the Loan Amount will be capitalized or set-off in full, in part-fulfillment of its obligations to pay for the Rights Shares to be subscribed for by it pursuant to the undertaking. Potential Underwriting for the Rights Shares Lindeteves-Jacoberg is currently in negotiations with potential financial institutions to underwrite the Rights Shares, which are not subject to the undertaking. To date, such discussions are still at a preliminary stage and the Company has not reached agreement with any financial institution on the terms of the proposed underwriting arrangement. There is no assurance that the Company will be able to secure underwriting for the Rights Issue on acceptable terms. Purpose of the Rights Issue Based on the audited financial statements of the Company and its subsidiaries for the year ended December 31, 2005, the Group incurred a net loss of approximately SGD156.5 million. Based on the unaudited financial statements of the Group for the three- months ended March 31, 2006, the Group incurred a loss of approximately SGD6.8 million before exceptional income and before tax. Given the Group's current weak capital base, high gearing ratio and negative cashflow position, the Rights Issue has been proposed with a view to addressing the foregoing to a certain extent and to improve the Group's working capital position. The net proceeds of the Rights Issue are expected to be approximately SGD29.5 million. The net proceeds will be utilized by the Group as general working capital. About Lindeteves-Jacoberg Limited Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was incorporated in Singapore on December 11, 1947 as part of a Dutch international trading group. Its principal activities consist of investment holding, provision of warehousing and rental services and acting as specialist mechanical and electrical contractor for environmental engineering projects. The Company is undergoing a debt restructuring exercise by way of a Scheme of Arrangement with its creditors. =============== T H A I L A N D =============== CENTRAL PAPER: First Quarter Net Loss Goes Down by 20% ------------------------------------------------------ In a financial report submitted to the Stock Exchange of Thailand, Central Paper Industry Public Company Ltd indicated that its net loss for the first quarter of 2006 changed by 20%, compared to its net loss for the same period in 2005. The Company reported a decrease in net revenues in the quarter ended March 31, 2006, by THB60.02 million or 29.71% compared to the same period of 2005. The cost of goods sales decreased THB58.04 million or 28.35% compared to the same period last year. Moreover, Central Paper said that its interest expense decreased by THB9.56 million and the selling and administrative expenses decreased by THB1.44 million. Central Paper's first quarter financial report reflects these figures. In thousand THB At 03/31/2006 At 12/31/2005 Total Current Assets 185,986 184,035 Total Assets 665,810 681,159 Total Current Liabilities 3,125,075 3,111,094 Total Liabilities 7,305,927 7,300,573 Capital Deficiency 6,640,117 6,619,414 Total Revenues 142,038 202,062 Net Loss 20,703 29,716 Central Paper's auditors raised substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the quarter ended March 31, 2005. * * * Established in 1973, Central Paper Industry Public Company Limited -- http://www.centralpaper.thailand.com/-- produces and distributes uncoated printing paper including fine printing paper used in high quality printing tasks, newsprint paper used in newspaper printing, and kraft paper used for making paper bags. The Company is currently classified under Thailand's REHABCO -- Companies Under Rehabilitation -- Sector. Before the Company entered into business rehabilitation, it: * was sued by a financial institution for a default on the payment of loan principal and accrued interest totaling THB109.3 million; * has defaulted on the payment of loan principal and accrued interest to a local company totaling THB119.2 million and, in 2003, the Court directed the Company to make the payment of loan principal and accrued interest in full, and; * was sued by a bank for the default on repayment of loan principal and accrued interest totaling THB2.83 billion. After that, the bank transferred the right on the debts to Thai Asset Management Corporation. Subsequently on September 5, 2002, the Civil Court ordered the Company and the guarantor to repay the debt totaling THB2.8 billion to Thai Asset Management Corporation, including the interest charged at the rate 15% per annum of the loan principal of THB1.91 billion until the last settlement date and to mortgage the Company's land, construction, and machinery and confiscated certain assets of the guarantor. The Company did not appeal on the result of the case. On March 16, 2004, the Company submitted a petition for rehabilitation to Thailand's Central Bankruptcy Court. On February 1, 2005, the Bankruptcy Court approved the Company's Business Reorganization Plan and appointed the Company as Plan Administrator. Currently, the Company is in the process of compliance with the Business Reorganization Plan. However, the Company has sustained operating losses for several years and could not make a repayment to Creditor Group 1 totaling THB4.7 million as stated in the Business Reorganization Plan. Hence, the repayment of the debts in accordance with the Reorganization Plan when they become due significantly depends on the Company's abilities to operate successfully in the future and to generate sufficient cash flows from operations. PICNIC CORP: Failed Rights Offering may Led to Bankruptcy ---------------------------------------------------------- Bottled gas manufacturer Picnic Corp Plc sold 136,585 of a total of 1.48 billion newly released shares it offered, indicating that even the Company's major shareholders rejected to fully exercise their right to take up one new share for every two held shares at THB1 per new share, the Nation reports. According to the report, the proceeds of the sale had been intended to lift the Company from its financial difficulties. The Nation relates that the share offering is seen as the last chance for Picnic to raise money to repay its debts. However, with the recent sale results, the Company may face bankruptcy if its creditors would take legal action against it. Picnic's shareholders gave the Company an option to sell the leftover shares through a private placement to specific investors and if there are shares left over, the Company can allot them to creditors under a debt-to-equity swap. The Stock Exchange of Thailand believes that the Company would find it difficult to raise funds through its share offering because the price was far above the market price. The Nation reveals that the SET already took the unusual step of warning investors that Picnic was on the verge of bankruptcy. The Nation says that lawsuits have already been filed against the Company seeking payment of its THB295 million in aggregate debts. Moreover, Picnic still has agreements with other asset management companies, which hold THB283.8-million worth of bills of exchange, to hold off legal action until June 30, 2006, in return for interest payments. The Nation further reveals that Sumitomo Mitsui Banking Corporation's local branch has also filed suit against Picnic, demanding repayment of THB429 million in debt incurred from a letter of guarantee. The Company is said to be negotiating with the Japanese bank for debt repayment based on a debt-to-equity swap. * * * Headquartered in Bangkok, Thailand, Picnic Corporation Public Company Limited -- http://www.picniccorp.com-- is engaged in liquefied petroleum gas trading business under "Picnic Gas" trademark transferred from Union Gas and Chemicals Company Ltd. Picnic's financial troubles began in the middle of last year when its two major shareholders and former executives, Supaporn and Theeratchanon Lapvisuthisin, were charged with accounting fraud and dishonest management. Troubles add up as it it took over B Grimm Engineering Plc, a company that had languished in the Stock Exchange of Thailand's rehabilitation sector since the financial crisis. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Erickson Torrevillas, Francis Chicano, Ma. Cristina Pernites-Lao, Erica Fernando, Reiza Dejito, Freya Natasha Fernandez, and Peter A. Chapman, Editors. Copyright 2006. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***