/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060524.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, May 24, 2006, Vol. 9, No. 102 Headlines A U S T R A L I A & N E W Z E A L A N D AIR NEW ZEALAND: NZ Tourism Groups Oppose Qantas Code-Share Deal AUCTOR PTY: Enters Voluntary Wind-Up Proceedings AUR MARKETING: Proofs of Claim Due on April 19 BLACKBIRD'S NEST: Clarke Appointed as Liquidator B R SCHRADER: Members Decide to Close Down Business BUTTANA PTY: Final Meeting Slated for May 24 CLASSIC RENDERING: Members Agree to Wind Up Business CONFERENCE FOCUS: Members Pass Resolution to Close Down Business DAM CONTROL: Hearing of CIR's Liquidation Bid Set on June 29 DUANGKAEW PTY: Distributes Dividend Today ENVISION PROPERTY: Court to Hear Liquidation Petition on June 15 FISH OUT OF WATER: Members and Creditors to Get Wind-up Report GLENN-CLAIRE CARPENTRY: Wind-up Process Commenced HOWARD ROBERTS: Prepares to Shut Down Business INVERARY PTY: Members to Discuss Wind-up Today JADE INVESTMENTS: Members Opt for Voluntary Liquidation MAINE HOLDINGS: Enters Voluntary Liquidation MAINLAND DEMOLITION: Shareholders Resolve to Liquidate Company M.I.L.A.H. PTY: Manager and Receiver Steps Aside MULTIPLEX GROUP: Creates AU$650-Million Property Trust NSW DEVELOPMENT: Appoints Official Liquidator N.Z. PROPERTY: Court to Hear Liquidation Application on June 1 OUTLINE DEVELOPMENTS: Creditors' Proofs of Claim Due on June 9 PHARMACY SHOP: Members Resolve to Liquidate Business QANTAS AIRWAYS: NZ Tourism Groups Oppose Air NZ Code-Share Deal RAMROD CONSTRUCTION: Prepares to Wind Up Operations RAS INTERNATIONAL: Faces Liquidation Proceedings RUBBER WORKS: To Hold Final Meeting Today STATEWIDE DISMANTLERS: Enters Voluntary Liquidation URBANE WEARHOUSE: Official Liquidator Named VERTECH (NZ) LIMITED: Liquidation Bid Hearing Set on June 1 XTREME LIMOUSINES: NAB Appoints Joint and Several Receivers C H I N A & H O N G K O N G AUTOFIT LIMITED: Creditors' Proofs of Claim Due on June 9 CARFORD TRANSPORTATION: Creditors' Meeting Fixed on June 3 CENTURY STEP: Final Members Meeting Slated for June 21 CHE TONG: Creditors' Proofs of Claim Due on June 20 EIMO (H.K.) LIMITED: Liquidator to Present Wind-up Report EZCOM HOLDINGS: Court Moves Wind-up Hearing to November 20 GLOBAL NET: Shareholders Resolve to Wind Up Operations HONDELA FINANCE: Joint Liquidators to Present Wind-up Report MAGNUS MANAGEMENT: Appoints Official Liquidator PENTA-CONTINENTAL: Liquidator Cease to Act for Company QUEST INTERNATIONAL: Appoints Joint Liquidators SAMLEX DEVELOPMENT: First Creditors Meeting Fixed on June 30 SHIOZUMI ASSET: Joint Liquidators Cease to Act for Company STARTEC GLOBAL: Creditors Must Prove Debts by June 9 VISION CARD: Creditors' Proofs of Claim Due on June 23 YUE CHEONG: Appoints Official Liquidator I N D I A DUNLOP INDIA: Holds Tripartite Meeting to Address Labor Woes SILVERLINE TECHNOLOGIES: Chair Unveils Turnaround Strategy I N D O N E S I A BANK BUANA: Fitch Affirms Long-Term Currency Ratings at BB- BANK CENTRAL ASIA: Fitch Affirms 'BB-' Long-Term Currency IDR BANK DANAMON: Fitch Affirms BB- Long-Term Foreign Currency IDR BANK INTERNASIONAL: Fitch Affirms BB- Long-Term Currency IDR BANK MANDIRI: Fitch Affirms Long-Term Currency IDRs at BB- BANK NEGARA: Fitch Affirms BB- Foreign and Local Currency IDR BANK NISP: Fitch Affirms Long-Term Issuer Default Ratings at BB- BANK RAKYAT: Fitch Affirms Long-Term Foreign Currency IDR at BB- PERUSAHAAN LISTRIK: To Put Up 24 Power Plants in Three Years PERUSAHAAN LISTRIK: Gas Supply Problem Increases Fuel Expenses J A P A N BANK OF YOKOHAMA: Moody's Ups Financial Strength Rating to D+ CHIBA BANK: Moody's Lifts Financial Strength Rating to D+ LIVEDOOR COMPANY: Accountants to Plead Not Guilty to Charges * Economic Prospects Help Outlook on S&P's Ratings Turn Positive K O R E A LG CARD: Shinhan and NACF May Emerge Best Bidders M A L A Y S I A AYER HITAM: Books Lower Net Loss in Third Quarter AYER HITAM: Unit Inks Pembinaan Partnership Deal for Land Dev't BIMB HOLDINGS: To Hold EGM on June 14 DENKO INDUSTRIAL: Wins Temporary Reprieve from BISB's Claims DENKO INDUSTRIAL: Proposed Tae-Pee Shares Purchase Aborted FARLIM GROUP: Chinese Operations Drive First Quarter Losses MALAYSIA AIRLINES: Unveils Separation Scheme to Trim Workforce MBF CORPORATION: Units Placed Under Creditors' Voluntary Wind-up MBF HOLDINGS: Aussie Unit Completes Acquisitions METROPLEX BERHAD: Sub-subsidiary Faces Dissolution TANAH EMAS: Books MYR309,000 Net Loss in Third Quarter of FY06 P H I L I P P I N E S LAFAYETTE MINING: DENR to Review RRFFC Findings Report MARIWASA MANUFACTURING: 1Q Net Income at PHP1.35 Million NEGROS NAVIGATION: Cuts Losses on Reduced Operations PHILIPPINE NATIONAL BANK: Cashes In On Strong Profitability * Philippine Stock Exchange to Suspend Trading for 17 Companies S I N G A P O R E ALA PTE: Creditors' Proofs of Claims Due on June 30 APBT MYANMAR: Intends to Pay Dividend to Creditors SEE HUP SENG: Creditor Subscribes for 4,347,000 New Shares SEE HUP SENG: Auditors Release Report on 2005 Financial Results STARTECH ELECTRONICS: Incorporates New Wholly Owned Unit STORTEBOOM INTERNATIONAL: Members Opt for Voluntary Wind-up T H A I L A N D PAE THAILAND: First Quarter NG Significantly Lower than 1Q 2005 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ AIR NEW ZEALAND: NZ Tourism Groups Oppose Qantas Code-Share Deal ---------------------------------------------------------------- New Zealand tourism groups have showed their opposition to Air New Zealand's code-share agreement with the Australian carrier Qantas Airways, ABC News Online says. As reported in the Troubled Company Reporter - Asia Pacific on April 13, 2006, Air NZ and Qantas have signed a code-share agreement that will allow both airlines to reduce cost by removing some surplus or duplicated capacity and utilizing aircraft more efficiently, while increasing the number of flights available to their customers for the trans-Tasman routes. ABC News relates that the NZ groups believe that any reduction in flights on the trans-Tasman route will threaten passenger numbers and growth in one of New Zealand's most important industries. According to ABC News' NZ correspondent, Peter Lewis, the majority shareholder of Wellington Airport, Infratil, had said that if approved, the code-share deal between the two dominant players in the market would reduce the number of seats by 12% from the capital and by 14% from the nation's busiest airport in Auckland. The TCR-AP had earlier stated that Wellington Airport has been very critical of the Air NZ-Qantas Deal, expressing fear of a lack of competition in the trans-Tasman route, higher prices and reduced access to Australia. An April 19, 2006 report by the TCR-AP stated that Wellington Airport had called on the competition watchdog to check the proposed code-share agreement. Wellington Airport, which is owned by Wellington City Council and Wellington investment firm Infratil, has issued a series of papers outlining the anti- competitive nature of the proposal and calling for it to be dealt with by the Commerce Commission, rather than the Government, which owns 80.4% of Air New Zealand. The code-share deal awaits the approval of the New Zealand Minister of Transport and the Australian Competition and Consumer Commission. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on September 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1,071 million held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. Moody's had expressed concern regarding the airline's limited track-record since the collapse of Ansett Australia in 2001. However, FY2004 and FY2005 results have been in line with expectations. Air NZ has signaled that the recent increases in fuel price will adversely affect profitability in 2006, with the potential to decrease profit by 40% from 2005. Moody's believes that this drop, which would result in EBITDAR/(Interest +Rent) between 2.0x and 2.4x, and Adjusted Debt/EBITDAR of just under 5x, would not adversely affect the rating of the airline. Moody's expected Air NZ to have significant capital expenditure requirements over the next three years -- which will be funded from a combination of operating cash flow, debt and operating leases -- as it acquires additional aircraft. However, Moody's considered the increased debt load to be manageable within Air NZ's rating. The company is expected to be free cash flow positive from 2007. Moody's said that if fuel prices continued high for the medium to long term and no rationalization in trans-Tasman routes were forthcoming, then Air NZ's credit metrics could be negatively affected. Operating margin less than 3%, EBITDAR/(Interest+Rent) less than 2x and Adjusted Debt/EBITDAR greater than 5.5x would be a trigger for Moody's to review the rating. AUCTOR PTY: Enters Voluntary Wind-Up Proceedings ------------------------------------------------ At an extraordinary general meeting of the members of Auctor (Vic) Pty Ltd on April 4, 2006, it was resolved that the Company be wound up voluntarily. Stan Traianedes of Hall Chadwick, Chartered Accountants & Business Advisers was subsequently appointed as liquidator at a creditors' meeting held later that day. Contact: Stan Traianedes Liquidator Hall Chadwick Chartered Accountants Level 12, 459 Collins Street, Melbourne, Victoria, Australia 3000 AUR MARKETING: Proofs of Claim Due on April 19 ---------------------------------------------- Creditors of AUR Marketing Pty Limited were required to prove their debts on or before April 19, 2006. Creditors who were unable to file their proofs of debt on or before the deadline will be excluded from sharing in the Company's dividend distribution. Contact: Mark Pearce Liquidator c/- Pearce & Heers Insolvency Accountants Level 8, 410 Queen Street, Brisbane, Queensland Australia 4000 Telephone: 07 3221 0055 BLACKBIRD'S NEST: Clarke Appointed as Liquidator ------------------------------------------------- Michael Andrew Clarke was appointed liquidator of Blackbird's Nest Ltd on May 10, 2006. Contact: Michael A. Clarke 170 Parnell Road PO Box 38-411 Auckland, New Zealand Telephone: (09) 358 3666 Fax: (09) 358 3947 B R SCHRADER: Members Decide to Close Down Business --------------------------------------------------- Members of B R Schrader Pty Limited convened at a meeting on April 3, 2006, and decided to voluntarily wind up the Company's operations. Subsequently, Gerry Farlanga of Arnold Stevens Finlay Chartered Accountants was appointed as liquidator to oversee the wind-up process. Contact: Gerry Farlanga Voluntary Liquidator B R Schrader Pty Limited (In Liquidation) Arnold Stevens Finlay Chartered Accountants Level 6 410 Church Street, North Parramatta, Australia 2151 Telephone: (02) 9890 2555 BUTTANA PTY: Final Meeting Slated for May 24 -------------------------------------------- Members and creditors of Buttana Pty Limited will hold a meeting on May 24, 2006, at 3:00 p.m. During the meeting, Liquidator J. Sleiman will give an account on the wind-up process and disposal of the Company's property. Contact: J. Sleiman Liquidator Sleiman & Co, Certified Practising Accountants Level 8, 65 York Street Sydney, Australia 2000 CLASSIC RENDERING: Members Agree to Wind Up Business ---------------------------------------------------- At a final meeting on April 3, 2006, the members Classic Rendering Limited had decided to wind up the Company's operations. During the meeting, Stewart William of Lawler Partners Chartered Accountants was appointed as liquidator. Contact: Stewart William Free Liquidator Lawler Partners Chartered Accountants 763 Hunter Street, Newcastle West, Australia, 2302 CONFERENCE FOCUS: Members Pass Resolution to Close Down Business ---------------------------------------------------------------- During a general meeting on April 3, 2006, members of Conference Focus Limited passed a special resolution to shut down the Company's operations. In this regard, P. Ngan was appointed as liquidator pursuant to Section 497(1) of the Corporations Act 2001. Contact: P. Ngan Liquidator Ngan & Co Chartered Accountants Level 5, 49 Market Street, Sydney, Australia 2000 DAM CONTROL: Hearing of CIR's Liquidation Bid Set on June 29 ------------------------------------------------------------ An application to put Dam Control Ltd into liquidation will be heard before the High Court of Auckland on June 29, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the application before the High Court on April 19, 2006. Contact: P.L. Windsor-Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0432 DUANGKAEW PTY: Distributes Dividend Today ----------------------------------------- Unsecured creditors will receive dividends from Dungkaew Pty Limited today, May 24, 2006. Creditors who were unable to prove their claims will be excluded from sharing in the dividend distribution. Contact: Murray Godfrey Official Liquidator RMG Partners Level 12, 88 Pitt Street Sydney, Australia 2000 Telephone: (02) 9231 0889 ENVISION PROPERTY: Court to Hear Liquidation Petition on June 15 ---------------------------------------------------------------- An application to put Envision Property Solutions Ltd into liquidation will be heard before the High Court of Auckland on June 15, 2006, at 10:00 a.m. The High Court received the application from Windows 2000 Ltd on March 21, 2006. Contact: C.N. Lord Corporate Collections Ltd 187 Mt Eden, Auckland New Zealand FISH OUT OF WATER: Members and Creditors to Get Wind-up Report -------------------------------------------------------------- A final meeting of members and creditors of Fish Out Water Holdings Limited will take place today, May 24, 2006, at 4.00 p.m. During the meeting, the parties will receive Liquidator Hugh Martin's report on the Company's wind-up and property disposal. They will also discuss whether to destroy the Company's books and records six months after the Company's dissolution. Contact: Hugh Martin Liquidator Bernardi Martin Level 1, 195 Victoria Square Adelaide, Australia GLENN-CLAIRE CARPENTRY: Wind-up Process Commenced ------------------------------------------------- At a meeting on April 4, 2006, members of Glenn-Claire Carpentry Limited decided that it is in the Company's best interests to wind up its operations. Subsequently, Sule Arnautovic of Jirsch Sutherland Chartered Accountants was appointed as liquidator by the Company's creditors. Contact: Sule Arnautovic Liquidator Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, Australia 2001 Telephone: (02) 9233 2111 Facsimile: (02) 9233 2144 HOWARD ROBERTS: Prepares to Shut Down Business ---------------------------------------------- Members of Howard Roberts Marine Limited Company, on April 3, 2006, decided to wind up the Company's operations. Subsequently, D. R. Vasuden was appointed as liquidator to oversee the wind-up process. Contact: D. R. Vasuden Liquidator Pitcher Partners Level 19, 15 William Street, Melbourne Victoria, Australia 3000 INVERARY PTY: Members to Discuss Wind-up Today ---------------------------------------------- Members of Inverary Pty Ltd will convene at a final meeting today, May 24, 2006, to discuss about the Company's winding up. Contact: Richard John Wright Davies Thompson & Wright 60 Brook Street, Muswellbrook, Australia JADE INVESTMENTS: Members Opt for Voluntary Liquidation ------------------------------------------------------- At a general meeting on April 5, 2006, members of Jade Investments Limited agree to put the Company into voluntary liquidation. Paul Burness and Matthew Jess of Messrs Worrells Solvency & Forensic Accountants were subsequently appointed as liquidators. Contact: Paul Burness and Matthew Jess Liquidators Worrells Solvency & Forensic Accountants Level 5 15 Queen Street Melbourne Victoria, Australia 3000 Telephone: (03) 9613 5510 Facsimile: (03) 9614 3233 Web site: http://www.worrells.net.au/ MAINE HOLDINGS: Enters Voluntary Liquidation -------------------------------------------- At a meeting on May 8, 2006, the members of Maine Holdings Ltd decided to place the Company into liquidation. Barry White was subsequently appointed as liquidator. Contact: Barry White PO Box 342, Thames New Zealand Telephone: (07) 868 4572 Fax: (07) 868 4730 MAINLAND DEMOLITION: Shareholders Resolve to Liquidate Company -------------------------------------------------------------- Shareholders of Mainland Demolition Ltd on May 2, 2006, passed a special resolution to liquidate the Company and appoint Trevor Edwin Laing as liquidator. Creditors are required to file their proofs of claim by June 9, 2006. Contact: Trevor Laing & Assoc PO Box 2468, Dunedin New Zealand Telephone: (03) 454 4559 M.I.L.A.H. PTY: Manager and Receiver Steps Aside ------------------------------------------------ Peter James Lanthois has ceased to act as manager and receiver of M.I.L.A.H Pty Limited pursuant to an Order of the Supreme Court of South Australia on June 4, 2003. Contact: Peter J. Lanthois KordaMentha Level 4, 70 Pirie Street, Adelaide South Australia, Australia 5000 Telephone: (08) 8212 6322 Facsimile: (08) 8212 2215 MULTIPLEX GROUP: Creates AU$650-Million Property Trust ------------------------------------------------------ Multiplex Group has created a AU$650 million property trust as a new strategy to build its third-party funds management business, the Sydney Morning Herald reports. The new vehicle will be known as the Multiplex Acumen Prime Property Fund. The Sydney Herald explains that Multiplex acquired a retail fund manager in Acumen and has had good success in building funds under management strongly since incorporating the Acumen management into its group. Multiplex Acumen, which is expected to be listed in August 2006, will comprise predominantly of office assets either currently held by the Trust or under construction by Multiplex, egoli.com relates. According to the Sydney Herald, Multiplex will sell its buildings into the trust and retain ownership of up to 40% of the new vehicle. It is the second of recent announcements by Multiplex of asset sales, Egoli says. However, in this case, the sales are seeding a portfolio to be managed and co-invested by Multiplex. The portfolio will ultimately comprise AU$640 of assets, including a AU$63-million portfolio of REIT securities. Multiplex Acumen will eventually own interests in the premium- grade office towers such as half of the Ernst & Young building at World Square in George Street, the new American Express site at King Street Wharf and 25% of the Southern Cross development in Melbourne, the Sydney Herald says. These assets are presently owned by Multiplex Property Trust and will go into the new vehicle, following a capital raising, as the seed assets. According to the reports, Multiplex Acumen will be listed under a call structure with an initial subscription price of AU$0.60cpu and a final call of AU$0.40cpu five years after the listing date. National Australia Bank and ANZ Bank are arranging financing for the new trust, but Multiplex denies that the banks are involved in any of its decision to sell assets, the Sydney Herald reports. The Sydney Herald cites Merrill Lynch as stating that on completion of the proposed capital raising, the net proceeds received by Multiplex Property Trust would allow it to reduce existing borrowings and result in greater balance sheet flexibility. Multiplex Sells $AU260-Million Goldfields Property Moreover, the Sydney Herald adds that Multiplex is also selling its Goldfields House property at 1 Alfred Street, said to be worth about AU$260 million. About Multiplex Headquartered at Miller's Point, in New South Wales, Australia, Multiplex Group -- http://www.multiplex.biz/-- derives its revenue from property funds management, construction, property development, and facilities management. The Group employs over 2,000 people and has established operations and offices throughout Australia, New Zealand, the United Kingdom and the Middle East. In December 2003, Multiplex Limited listed on the Australian Stock Exchange as a part of the Multiplex Group, raising a total of AU$1.2 billion. Multiplex Group was formed by combining the various businesses of Multiplex Limited and the newly established portfolio of investments held by Multiplex Property Trust. Early in 2005, Multiplex began facing cost pressures on its reconstruction project for the Wembley Stadium in London, prompting it to conduct its own internal investigation into the Wembley difficulties. Its auditor, KPMG, later conducted its own thorough review of the problems, leading to an unpredicted write-down. In February 2005, stunned investors sold down Multiplex shares after the Company reversed its stance on two United Kingdom projects, writing off AU$68.3 million from its profits. This started a series of profit downgrades throughout 2005. The Company's troubles continue with plunging share prices, extortion attempts and threats of class action from disgruntled shareholders. The Roberts family, as founder and controlling shareholder of Multiplex, opted to offer AU$50 million indemnity in a bid to appease dissatisfied shareholders. In May 2005, Multiplex admitted its troubled Wembley Stadium construction project may end up with a multimillion loss. As of February 2006, the Company is faced with liquidity crisis after posting a massive AU$474 million loss on Wembley and is currently in talks to bring down possible delay fees, pegged at AU$138,000 per day beyond the scheduled March 31, 2006 completion date. NSW DEVELOPMENT: Appoints Official Liquidator --------------------------------------------- The Supreme Court of New South Wales had, on April 6, 2006, released a wind-up order for NSW Development Group Pty Limited. The Court also appointed Brian Hugh Allen as liquidator. Contact: Burton Glenn Allen Chartered Accountants Level 2, 57 Grosvenor Street Neutral Bay, Australia 2089 Telephone: (02) 9904 4644 Facsimile: (02) 9904 9644 N.Z. PROPERTY: Court to Hear Liquidation Application on June 1 -------------------------------------------------------------- An application to put N.Z. Property Trends Ltd into liquidation will be heard before the High Court of Auckland on June 1, 2006, at 10:00 a.m. Gouping Pou filed the application with the High Court on March 22, 2006. Contact: C.N. Lord Office of Messrs Craig Griffin & Lord 187 Mt Eden Road, Mt Eden Auckland, New Zealand OUTLINE DEVELOPMENTS: Creditors' Proofs of Claim Due on June 9 -------------------------------------------------------------- John Albert Price and Christopher Robert Ross Horton, joint and several liquidators of Outline Developments Ltd, require the creditors of the Company to submit their proofs of claim on or before June 9, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution the Company will make. Contact: J.A. Price Horton Price Ltd PO Box 9125, New Market Auckland, New Zealand Telephone: (09) 366 3700 Fax: (09) 366 7276 PHARMACY SHOP: Members Resolve to Liquidate Business ---------------------------------------------------- Members of the Pharmacy Shop Ltd, on May 9, 2006, resolved to liquidate the Company and appoint Grant Robert Graham and Brendon James Gibson as joint and several liquidators. Creditors are required to lodge their proofs of claim on or before June 2, 2006. Contact: B.J. Gibson C/O Duncan Ross Ferrier Hodgson & Co Level 16, Tower Centre 45 Queen Street, Auckland New Zealand Telephone: (09) 307 7865 Fax: (09) 377 7794 QANTAS AIRWAYS: NZ Tourism Groups Oppose Air NZ Code-Share Deal --------------------------------------------------------------- New Zealand tourism groups have showed their opposition to Qantas Airways Limited's code-share agreement with Air New Zealand, ABC News Online says. As reported in the Troubled Company Reporter - Asia Pacific on April 13, 2006, Air NZ and Qantas have signed a code-share agreement that will allow both airlines to reduce cost by removing some surplus or duplicated capacity and utilizing aircraft more efficiently, while increasing the number of flights available to their customers for the trans-Tasman routes. The TCR-AP had earlier stated that Wellington Airport has been very critical of the Qantas-Air Nz Deal, expressing fear of a lack of competition in the trans-Tasman route, higher prices and reduced access to Australia. ABC News relates that the NZ groups believe that any reduction in flights on the trans-Tasman route will threaten passenger numbers and growth in one of New Zealand's most important industries. According to ABC News' NZ correspondent, Peter Lewis, the majority shareholder of Wellington Airport, Infratil, had said that if approved, the code-share deal between the two dominant players in the market would reduce the number of seats by 12% from the capital and by 14% from the nation's busiest airport in Auckland. An April 19, 2006 report by the TCR-AP stated that Wellington Airport had called on the competition watchdog to check the proposed code-share agreement. Wellington Airport, which is owned by Wellington City Council and Wellington investment firm Infratil, has issued a series of papers outlining the anti- competitive nature of the proposal and calling for it to be dealt with by the Commerce Commission, rather than the Government, which owns 80.4% of Air New Zealand. The code-share deal awaits the approval of the New Zealand Minister of Transport and the Australian Competition and Consumer Commission. 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, and yet another one announced in February 2006 amidst uncertainty of outsourcing the airline's heavy maintenance works overseas. The Troubled Company Reporter - Asia Pacific reported on May 19, 2006, that Qantas 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. RAMROD CONSTRUCTION: Prepares to Wind Up Operations --------------------------------------------------- The members of Ramrod Construction Services Pty Limited have decided to wind up the Company's operations and distribute the proceeds of its assets disposal. Contact: Martin J. Green Liquidator GHK Green Krejci Level 9, 179 Elizabeth Street Sydney Australia 2000 Australia RAS INTERNATIONAL: Faces Liquidation Proceedings ------------------------------------------------- An application to put Ras International Ltd into liquidation will be heard before the High Court of Auckland on June 1, 2006, at 10:00 a.m. The High Court received the application from Motor 1 Ltd on March 29, 2006. Contact: Malcolm Whitlock Debt Recovery Group NZ Ltd 149 Ti Rakau Drive Pakuranga, Auckland New Zealand RUBBER WORKS: To Hold Final Meeting Today ----------------------------------------- A final meeting of the members of The Rubber Works Australia Pty Limited will be held today, May 24, 2006. During the meeting, Liquidators Peter Goodin and Robyn Erskine will present their accounta of the manner of the Company's wind- up and property disposal. Contact: Peter Goodin Robyn Erskine Joint & Several Liquidators Brooke Bird & Co Chartered Accountants 471 Riversdale Road Hawthorn East, Australia 3123 Telephone: (03) 9882 6666 STATEWIDE DISMANTLERS: Enters Voluntary Liquidation --------------------------------------------------- The members of Statewide Dismantlers Hotline Pty Limited convened on April 3, 2006, and opted to liquidate the Company's operations. Subsequently, Antony de Vries and Riad Tayeh were appointed as liquidators. Contact: Antony de Vries Riad Tayeh Joint and Several Liquidators de Vries Tayeh Level 3, 95 Macquarie Street Parramatta , Australia 2125 URBANE WEARHOUSE: Official Liquidator Named ------------------------------------------- Bernardi Martin was named as liquidator of Urbane Wearhouse Pty Limited on March 24, 2006. Contact: Bernardi Martin Liquidator Level 1, 195 Victoria Square, Australia VERTECH (NZ) LIMITED: Liquidation Bid Hearing Set on June 1 ----------------------------------------------------------- An application to liquidate Vertech (NZ) Ltd was filed by Credit Link Factors Ltd before the High Court of Auckland on March 17, 2006. The Court will hear the application on June 1, 2006, at 10:45 a.m. Contact: Ian Oliver Cadis Credit Link Operations Ltd 19 Meachen Street, Seaview Lower Hutt, New Zealand XTREME LIMOUSINES: NAB Appoints Joint and Several Receivers ----------------------------------------------------------- The National Australia Bank Limited had, on March 29, 2006, appointed Gerald T. Collins and Matthew L. Joiner of Horwath BRI Brisbane as joint and several receivers of the assets of Xtreme Limousines Pty Limited. ================================ C H I N A & H O N G K O N G ================================ AUTOFIT LIMITED: Creditors' Proofs of Claim Due on June 9 --------------------------------------------------------- Creditors of Autofit Limited are required to submit their proofs of claim to Joint Liquidators Ying Hing Chiu and Chung Miu Yin, on or before June 9, 2006. Failure to comply with the requirement will exclude any creditor from the benefits of distribution the Company will make. Contact: Ying Hing Chiu Liquidator Level 28, Three Pacific Place 1 Queen's Road East Hong Kong CARFORD TRANSPORTATION: Creditors' Meeting Fixed on June 3 ---------------------------------------------------------- Creditors of Carford Transportation (H.K.) Ltd will convene on June 3, 2006, 12:15 p.m. at: Conference Room Messrs. Gary K.W. Tam & Co. Room 2909B, 29/F. Bank of America Tower No 12 Harcourt Road Central Hong Kong CENTURY STEP: Final Members Meeting Slated for June 21 ------------------------------------------------------ The final general meeting of the members of Century Step Company Ltd will be held on June 21, 2006, 10:00 a.m. At the meeting, members will get an account of the manner of the Company's wind-up and property disposal from Liquidator Fok Wai Shan. Contact: Fok Wai Shan Liquidator Room 1204-5, 12/F, Tai Tung Bldg No 8 Fleming Road Wanchai, Hong Kong CHE TONG: Creditors' Proofs of Claim Due on June 20 --------------------------------------------------- Creditors of Che Tong Wui Tsun Marine Ltd are required to submit their proofs of claim to Liquidator Chan Po Kau not later than 5:30 p.m. on June 20, 2006. Failure to comply with the requirement will exclude any creditor from the benefits of distribution the Company will make. Contact: Chan Po Kau Room D, 11/F., Hart Ave 8-10 Tsim Sha Tsui, Kowloon Hong Kong EIMO (H.K.) LIMITED: Liquidator to Present Wind-up Report --------------------------------------------------------- A final meeting of the members of Eimo (H.K.) Ltd will be conducted on June 21, 2006, at 3:00 o'clock in the afternoon. At the meeting, Liquidator Ng Sun Chi will present his final accounts regarding the Company's wind-up operations. EZCOM HOLDINGS: Court Moves Wind-up Hearing to November 20 ---------------------------------------------------------- The High Court of Hong Kong, on May 22, 2006, ordered to reschedule the hearing of the winding-up petition against Ezcom Holdings, the Company said in a disclosure to the Hong Kong Stock Exchange. The decision was made to enable the provisional liquidators to facilitate the restructuring of the Company. The High Court rescheduled the hearing to November 20, 2006. Further, the Company disclosed that the publication of its annual results for the years ended March 31, 2005, and March 31, 2006, and the interim result announcement for the six months ended September 30, 2005, has been delayed. Currently, the Company does not have sufficient funds to perform an audit on the Company and its group subsidiaries for the 2005 and 2006 financial years. The provisional liquidators were appointed to stabilize the operations of the Company and its subsidiaries, including facilitating the Company's restructuring. Trading in the shares of the Company remains suspended. * * * Headquartered in Central, Hong Kong, Ezcom Holdings Ltd -- http://www.ezcom.com.hk/-- is engaged in the trading of mobile phones, parts and components. The Company is undergoing restructuring with the assistance of its provisional liquidators. GLOBAL NET: Shareholders Resolve to Wind Up Operations ------------------------------------------------------ Members of Global Net Garment Manufacturing at an extraordinary general meeting on April 24, 2006, passed a resolution to voluntarily wind up the Company and appoint Chan Wah Kie as liquidator. Contact: Chan Wah Kei Room 1105, Eastern Commercial Centre 393-407 Hennessy Road, Hong Kong HONDELA FINANCE: Joint Liquidators to Present Wind-up Report ------------------------------------------------------------ A final meeting of the members of Hondela Finance Ltd will be conducted on June 21, 2006, at 3:00 o'clock in the afternoon. During the meeting, Liquidators Darach Haughey and Lo Kin Ching will present their final accounts regarding the Company's wind- up operations. MAGNUS MANAGEMENT: Appoints Official Liquidator ----------------------------------------------- Members of Magnus Management Consultants Ltd appointed Sytske Helena Maria Teppema as official liquidator on May 4, 2006. Contact: Sytske Helena Maria Teppema F1 Discovery Bay Marina, Discovery Bay, Lantau Island Hong Kong PENTA-CONTINENTAL: Liquidator Cease to Act for Company ------------------------------------------------------ Man Kwok Leung ceased to act as liquidator of Penta-Continental Ltd on May 10, 2006. QUEST INTERNATIONAL: Appoints Joint Liquidators ----------------------------------------------- Suen Pui Yee and Iain Ferguson Bruce were appointed as joint and several liquidators for Quest International China Ltd through a special resolution passed by the Company's members on May 5, 2006. Contact: Suen Pui Yee 8/F., Gloucester Tower The Landmark 11 Pedder Street, Central Hong Kong SAMLEX DEVELOPMENT: First Creditors Meeting Fixed on June 30 ------------------------------------------------------------ Creditors of Samlex Development Ltd will convene for its first meeting on June 30, 2006, 3:30 p.m. The meeting will be held at: Rooms 501-503, 5/F., Hang Seng Building 77 Des Voeux Road Central Hong Kong SHIOZUMI ASSET: Joint Liquidators Cease to Act for Company ---------------------------------------------------------- Chan Shu Kin and Chow Chi Tong ceased to act as joint and several liquidators of Shiozumi Asset Management (H.K.) Ltd on May 19, 2006. STARTEC GLOBAL: Creditors Must Prove Debts by June 9 ---------------------------------------------------- Liquidator Kwok Lai Ngor is receiving proofs of debt from the creditors of Startec Global Communications (H.K.) Ltd until June 9, 2006. Failure to comply with the requirement will exclude any creditor from the benefits of distribution the Company will make. Contact: Kwok Lai Ngor 8/F., Richmond Commercial Bldg 109 Argyle Street, Kowloon Hong Kong VISION CARD: Creditors' Proofs of Claim Due on June 23 ------------------------------------------------------ Creditors of Vision Card International Ltd are required to submit their proofs of claim to Liquidator Ha Man Kit on or before June 23, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution the Company will make. Contact: Ha Man Kit Room 2302, Hennessey Road Wan Chai, Hong Kong YUE CHEONG: Appoints Official Liquidator ----------------------------------------- Members of Yue Cheong Hardware Company Ltd appointed Fan King Kit as liquidator on May 15, 2006. Contact: Fan King Kit Flat B, 16F, Kwong on Bank Bldg 728-730 Nathan Road Mongkok, Hong Kong ========= I N D I A ========= DUNLOP INDIA: Holds Tripartite Meeting to Address Labor Woes ------------------------------------------------------------ Dunlop India Limited's Shahgunj factory held a tripartite meeting on May 23, 2006, to settle the early May dispute between workers and the new management, PK Ruia, The Economic Times says. The Troubled Company Reporter - Asia recounts that Dunlop India's troubles at Sahagunj plant started when thousands of workers boycotted the Company's partial payment of previous dues under a one-time settlement scheme. As reported by the TCR-AP on May 2, 2006, 4,378 Dunlop workers were not pleased with the Company's partial payment of INR30,000 arrears at the Company's newly opened Sahagunj plant. The workers were expecting a paycheck of INR5,000. However, they were greeted by a pay-out ranging between INR3,000 and INR4,500 on the basis of the payment being pro-rated to their attendance. The workers claimed that the new management was paying them much less than what was agreed on. Recently, Dunlop workers had protested against the Ruia Management for the 42 employees assigned for maintenance work at the Shahgunj factory, The Times reports. According to The Times, the Ruia Management is seeking to find a fast solution to the issue since the unions have threatened go on indefinite strike if the situation demanded. It has already approached the labor commissioner to sort out the arrear payment crisis, which has already hampered the complete reopening of the Shahgunj factory. About Dunlop India Headquartered in Kolkota, India, Dunlop India Limited is involved principally in manufacturing and distributing automotive tires and tubes. The firm's other activities include manufacturing high-pressure hoses, steelcord belting and vibration isolators. The company had reported profit until March 1997. In January 1998, the Board of Directors decided that the Company had become sick due to the necessity of reversing the earlier decision for sale of some real estate property of the company through a subsidiary, Dunlop Investment Limited. This decision required a reversal of corresponding entry of INR1,700 million and its reflection in the accounts of the financial year 1997-98. After taking this into account, the Board of Directors decided to refer the Company to Board of Industrial and Financial Reconstruction and abruptly announced suspension of Dunlop's operations in both Sahaganj and Ambattur in February 1998. The Ministry for Law, Justice and Company Affairs had also come to the conclusion after inspection of the Books of Accounts of Dunlop India that there were serious irregularities and had moved the Company Law Board for appointment of Government Directors. In January 2006, the Ruia Group took over the Company and voted to re-open its plants in within this year. SILVERLINE TECHNOLOGIES: Chair Unveils Turnaround Strategy ---------------------------------------------------------- Silverline Technologies will focus on the Business Process Outsourcing and Information Technology consulting areas of business through a mix of organic and M&A activities, as a part of its turnaround strategy enunciated by its chairman, Ravi Subramanian, Sify relates. Mr. Subramanian informed the Bombay Stock Exchange that Silverline Technologies will scout for strategic partnership opportunities worldwide while aiming for quality leadership at all levels. A key focus area for the Company will be negotiating strategic relationships in IT software development and maintenance and product lifecycle management solutions as well as on the customer care and service management and education segments. In customer care and service management, the scope of business will cover help desk, network management, security and applications support. Another prime business focus segment will constitute Business Process Outsourcing in the areas of finance and accounting, legal, human resources, engineering and architecture, knowledge management, animation and media and entertainment, the Company informed the BSE. Silverline Technologies will also clear all outstanding issues with its stakeholders, Mr. Subramanian said, while pointing out that the Company will strive to increase both shareholder value as well as transparency in its functioning. Revealing that the Company undertook a series of studies prior to outlining the turnaround strategy, Mr. Subramanian stated that the opinion of some of its previous customers, employees and shareholders were also taken into account while finalizing the strategy. A professional and scientific study to come up with a series of parameters was also undertaken, he added. About Silverline Technologies Limited Mumbai-based Silverline Technologies Limited provides a comprehensive set of eBusiness consulting and IT services including strategic consulting, creative design, technology integration and implementation, as well as management and maintenance of Internet and Legacy applications. The Company focuses its market on telecommunication and financial services, as well as banking and other related industries that use IBM mainframes, client servers, ORACLE, SYBASE, intranet and web technologies. Operations of the Group are carried out in India. The Company's problems began in 2001 when it suffered a decline in profitability and increase in collection period resulting from cash flow mismatches. Subsequently, the Company closed redundant facilities and trimmed payrolls as a result of the slowing economy. Aimed at leveraging its underutilized assets, Silverline Technologies took up a restructuring exercise that involves a proposal to hive off one or more of its undertakings located in India. The Company planned to sell, transfer, lease or otherwise dispose of its Indian undertakings. It also proposed to raise additional resources either through debt or equity and increase its authorized capital, accordingly. ================= I N D O N E S I A ================= BANK BUANA: Fitch Affirms Long-Term Currency Ratings at BB- ----------------------------------------------------------- Fitch Ratings revised Bank Buana's national long-term rating to 'AA+(idn)' from 'A-(idn)', and has upgraded the bank's support rating to '3' from '4.' Fitch affirms Bank Buana's: * long-term foreign and local currency issue default ratings at 'BB-'; * short-term rating at 'B'; and * individual rating at 'C/D'. The outlook for the ratings is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. The upgrade of Bank Buana's Support ratings reflects the bank's majority ownership by Oversea-Chinese Banking Corporation, rated 'AA-', a highly rated Singapore bank. It has also contributed to the significant upgrades of the bank's National ratings. The bank is gradually being integrated into its parent bank's operations. BANK CENTRAL ASIA: Fitch Affirms 'BB-' Long-Term Currency IDR ------------------------------------------------------------- Fitch Ratings revised Bank Central Asia's National Long-term rating to 'AA(idn)' from 'A-(idn)'. These other ratings are affirmed: * Long-term Foreign Currency Issuer Default Rating at 'BB-'; * Short-term at 'B'; * Individual at 'C/D'; and * Support '4'. The outlook is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. BANK DANAMON: Fitch Affirms BB- Long-Term Foreign Currency IDR -------------------------------------------------------------- Fitch Ratings revised Bank Danamon's National Long-term rating to 'AA-(idn)' from 'A-(idn)'. The other ratings are affirmed at: * Long-term Foreign Currency Issuer Default Rating 'BB-'; * Short-term 'B'; * Individual 'C/D'; and * Support '4'. The outlook is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. BANK INTERNASIONAL: Fitch Affirms BB- Long-Term Currency IDR ------------------------------------------------------------ Fitch Ratings revised Bank Internasional Indonesia's National Long-term rating to 'AA-(idn)' from 'BBB+(idn)'. These other ratings are affirmed at: * Long-term Foreign Currency Issuer Default Rating 'BB-'; * Short-term 'B'; * Individual 'C/D'; and * Support '4'. The outlook for ratings is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. BANK MANDIRI: Fitch Affirms Long-Term Currency IDRs at BB- ---------------------------------------------------------- Fitch Ratings revised Bank Mandiri's National Long-term rating to 'AA(idn)' from 'A(idn)'. These other ratings for Bank Mandiri are affirmed: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; * Individual rating at 'D'; and * Support rating at '4'. The outlook for the ratings is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. BANK NEGARA: Fitch Affirms BB- Foreign and Local Currency IDR ------------------------------------------------------------- Fitch Ratings revised Bank Negara Indonesia's National Long-term rating to 'A+(idn)' from 'BBB+(idn)'. These other ratings are affirmed: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; * Individual rating at 'D'; and * Support rating at '4'. The outlook for the ratings is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. BANK NISP: Fitch Affirms Long-Term Issuer Default Ratings at BB- ---------------------------------------------------------------- Fitch Ratings revised Bank NISP's National Long-term rating to 'AA+(idn)' from 'A-(idn)' and upgraded the bank's support rating to '3' from '4.' Fitch affirms these other ratings: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; and * Individual rating at 'C/D'. The outlook for the ratings is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. The upgrade of Bank NISP's Support ratings reflects the bank's majority ownership by United Overseas Bank, rated 'AA-', which is a highly rated Singapore bank. It has also contributed to the significant upgrades of the bank's National ratings. The bank is gradually being integrated into its parent bank's operations. BANK RAKYAT: Fitch Affirms Long-Term Foreign Currency IDR at BB- ---------------------------------------------------------------- Fitch Ratings revised Bank Rakyat Indonesia's National Long-term rating revised to 'AA+(idn)' from 'A+(idn).' The other ratings of the bank are affirmed at: -- Long-term Foreign Currency Issuer Default Rating 'BB-'; -- Short-term 'B'; -- Individual 'C/D'; -- Support '4'. The outlook for the ratings is stable. The revision follows a recalibration of the Indonesian National scale such that it not only allows for greater ratings diversification amongst the country's better quality major banks, but also allows for the proper relative rating of additional entities including second-tier financial institutions and a wide range of corporates. The recalibration, the first since the scale was introduced some years ago, also reflects the improved operating environment in Indonesia today, thanks to greater political and economic stability versus that after the country's 1998 crisis. Another factor behind the recalibration is the generally substantial improvements of the banks, with higher profitability, stronger balance sheets, significant operational development, and better levels of management/corporate governance. PERUSAHAAN LISTRIK: To Put Up 24 Power Plants in Three Years ------------------------------------------------------------ PT Perusahaan Listrik plans to develop 24 coal-fired power plants nationwide totaling 10,000 megawatts within a three-year period, Dow Jones Newswires reports. According to the Company, it is required by the Indonesian Government to speed up energy diversification by putting up coal-fired power plants in order to boost oil utilization efficiency. The Government also encouraged the use of natural gas amid rising global fuel prices. The construction of the power plants is part of a government plan to reduce domestic crude oil consumption from the current 60% level to 30% within 10 years' time. Dow Jones says that the proposed power plants are set to start operations in 2009. Perusahaan Listrik did not point out which power plants would be offered to investors. * * * Headquartered in Jakarta, Indonesia, PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- is Indonesia's state-owned utility company. The Company transmits and distributes electricity to approximately 30 million customers, or about 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to spark interest for independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. PLN posted a IDR4.92 trillion net loss in 2005, versus a net loss of IDR2.02 trillion in 2004. The Company received IDR12.51 trillion in subsidies from the Government in 2005, almost four times the IDR3.47 trillion in 2004. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that Perusahaan Listrik is once again the subject of a corruption investigation by the Indonesian National Police, connected to equipment price mark-ups and irregular contract tendering procedures at a gas-fired power plant in Bekasi. This after being subjected to a probe on an alleged price mark-up of three generators purchased in 2004. PERUSAHAAN LISTRIK: Gas Supply Problem Increases Fuel Expenses -------------------------------------------------------------- A disruption in PT Perusahaan Listrik Negara's gas supply has forced the state power firm to increase its allocations for fuel purchases in order to avoid power blackouts and maintain its diesel-fired power plants, the Jakarta Post writes. The Post explains that British oil giant BP Plc's local unit, BP West Java, had reduced its gas supplies to Perusahaan Listrik's two power plants in North Jakarta due to a leak in its gas transmission line since last week. The leak led BP to supply 130 million metric cubic feet of gas per day, instead of the normal 260 million metric cubic feet of gas, to PLN, which in turn could not operate at full capacity. The leak is slated to be repaired in two weeks. In an interview with reporters on May 22, 2006, PLN Acting President Djuanda Nugraha Ibrahim said that the Company may have to spend IDR8.2 billion daily for the next two weeks, which totals IDR115 billion, to purchase 1,600 kiloliters of diesel fuel per day to keep its power plants running. PLN hopes to be able to buy fuel from state oil firm PT Pertamina, despite its IDR18.8-trillion debt to the firm. Moreover, the Company has issued a power alert to its consumers in Jakarta and Banten to expect power outages due to a 300- megawatt power supply deficit. In order to cope with the lack of gas supplies, Perusahaan Listrik has asked businesses and households to lessen their power consumption from 5:00 p.m. to 10:00 p.m., in order to avoid blackouts. If this is not enough, the Company would need to shut down power in certain areas of Jakarta, West Java, Central Java, East Java and Bali to obtain the needed 300-megawatts. PLN has also asked state steel firm PT Krakatau Steel in Banten, to reduce operations during peak hours in order to avoid blackouts in the area. Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. PLN posted a IDR4.92 trillion net loss in 2005, against a net loss of IDR2.02 trillion in 2004. The Company received IDR12.51 trillion in subsidies from the Government last year, almost four times the IDR3.47 trillion in 2004. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that Perusahaan Listrik is once again under investigation by the Indonesian National Police for corruption, connected to equipment price mark-ups and irregular contract tendering procedures at a gas-fired power plant in Bekasi. This after being subjected to a probe on an alleged price mark-up of three generators purchased in 2004. ========= J A P A N ========= BANK OF YOKOHAMA: Moody's Ups Financial Strength Rating to D+ ------------------------------------------------------------- Moody's Investors Service has upgraded the bank financial strength rating of The Bank of Yokohama, Limited, to D+ from D, which concludes the upward review of the bank's ratings initiated on February 10, 2006. The rating is not expected to change for some time. The upgrade reflects improvement in Bank of Yokohama's asset quality, due in large part to it lowering the concentration risk embedded in its loan portfolio, and the bank's intent to further reduce concentration risks. Moody's believes that under its integrated risk management, overall embedded risks -- which arise from unexpected credit loss components, market risks, ALM mismatches and operational risks -- will be maintained far below Tier I capital. Bank of Yokohama has relatively strong franchise value, backed by its leading market share and presence in Kanagawa Prefecture's reasonably large home banking market. Moody's notes that the bank is reallocating its sales force into profitable areas in the prefecture and neighboring regions such as Metropolitan Tokyo, and that it has maintained fairly high profitability due to its continued low-cost operations. Furthermore, Moody's understands that Bank of Yokohama has made a commitment in starting its middle-risk business. Although this could increase credit costs, Moody's thinks the bank is likely to appropriately manage and limit related risks, and this business could contribute to improving profitability. Moody's thinks that the bank's capitalization will be strengthened by its relatively high profitability in a shorter term than its peers, supported by its low cost structure, the reallocation of its sales force into profitable areas and its middle-risk business. If the bank's capitalization went up to the C BFSR range due to earnings accumulation - backed by maintaining relatively high profitability and efficiency - while its asset quality kept improving, further upward pressure on its ratings could occur. On the other hand, if the bank faced capital deterioration due to credit cost increases, especially in the middle risk business, or the bank's franchise value deteriorated, downward pressure would occur. Headquartered in Yokohama, The Bank of Yokohama Limited -- http://www.boy.co.jp/e/index.htm-- is the largest regional bank in Japan, with total consolidated assets of approximately JPY10 trillion as of September 2005. CHIBA BANK: Moody's Lifts Financial Strength Rating to D+ --------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength rating of The Chiba Bank Limited to D+ from D and its senior subordinated debt rating and junior subordinated debt rating to Baa1 from Baa2, following the upward review of the bank's ratings initiated on February 10, 2006. The upgrade reflects that Chiba Bank's asset quality is improving against recent economic recovery in its region of operation. It further incorporates the likelihood of credit cost management improving at branches, which would limit the possibility of asset quality deterioration, due to the bank deciding to manage credit costs at the branch level by reallocating credit risk experts who used to be in charge of addressing non-performing loan issues. Under Chiba Bank's integrated risk management, overall embedded risks -- which arise from unexpected credit loss components, market risks, ALM mismatches and operational risks -- are maintained far below Tier I capital. Moody's estimates that even in a stress scenario, the bank's overall risk would be well below Tier I capital. Chiba Bank has relatively strong franchise value, backed by its leading market share and presence in Chiba Prefecture's reasonably large home banking market. Moody's notes that the bank is reallocating its sales force into profitable areas in the prefecture and neighboring regions such as Metropolitan Tokyo, and that the branch-level credit cost management mentioned above should quicken decision making and improve profitability. These initiatives could maintain or improve the bank's profitability and thus its capitalization, in Moody's view. If Chiba Bank's capitalization went up to the C BFSR range due to earnings accumulation while its asset quality kept improving, upward pressure on its ratings could occur. On the other hand, if the bank faced capital deterioration due to credit cost increases or if its franchise value deteriorated, downward pressure would occur. Headquartered in Chiba, Japan, the Chiba Bank Limited -- http://ir.chibabank.co.jp/english-- is the largest regional bank in Chiba Prefecture, with total consolidated assets totaling approximately JPY9.0 trillion as of September 2005. LIVEDOOR COMPANY: Accountants to Plead Not Guilty to Charges ------------------------------------------------------------ Two accountants indicted in March 2006 for their alleged conspiracy with Livedoor Company Limited ex-president Takafumi Horie and other Livedoor directors to falsify the Company's financial accounts will plead not guilty to the charges, Kyodo News relates. The Troubled Company Reporter - Asia Pacific reported that in January 2006, Livedoor directors were found to have conspired to cover up the Company's JPY310 million pre-tax loss for the business year ended September 2004, by doctoring financial accounts to show an inflated pre-tax profit of JPY5.03 billion instead. Moreover, Mr. Horie and other Livedoor executives allegedly relayed false information on a merger, with the intent to boost the stock price of a Company subsidiary. Certified public accountants Taishin Hisano and Motoshi Kobayashi, employees of auditing firm Koyo & Co., were indicted by prosecutors on March 31, 2006, for violating the Securities and Exchange Law when they certified Livedoor Company's financial report for the year ended September 30, 2004, with the knowledge that the report had been manipulated to cover up the pre-tax loss. Kyodo News cites sources familiar with the matter that Mr. Hisano will be asserting that he could not resist pressure from the Company, and that he only helped to falsify the account figures, instead of making them up from scratch, in his defense. Former Livedoor director Fumito Kumagai is also slated to contend the charges against him. He was indicted for his alleged role in the fabrication of the financial figures together with former Company president Mr. Horie and three other former directors. Headquartered in Tokyo, Japan, Livedoor Company Limited -- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor", financial business, corporate web solutions, data center and IP telephony business. * Economic Prospects Help Outlook on S&P's Ratings Turn Positive ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on its long-term sovereign ratings on Japan to positive from stable. The long-term and short-term ratings were affirmed at 'AA-/A-1+'. Standard & Poor's credit analyst Takahira Ogawa said: "The outlook revision is based on Japan's improved economic prospects, underpinned by restructuring in the private sector, the turnaround in the banking sector through the resolution of bad loan problems, and the elimination of deflationary pressure. This environment will support the stabilization and eventual reduction of the general government debt burden." Japan has a highly skilled work force and is the global leader in the manufacturing sector, particularly autos and electronics. With the elimination of deflationary pressure, domestic demand has started to recover and the economy is growing faster than the 1.1% in the 10 years up to 2004. This should help reduce the government's fiscal burden. A strong net external asset position and the yen's key international currency position provide the government with ample external liquidity and good access to global capital markets. Japan is the world's largest net external creditor in absolute terms with US$1.8 trillion (217% of current account receipts) net assets estimated at the end of 2005. Its current gold and foreign exchange reserves of US$860 billion are second only to China's. Standard & Poor's expects continued current account surpluses will further enhance Japan's net external asset position. At the same time, although recovery in Japan's financial system has been slow, non-performing loans have been slashed drastically, reflecting corporate restructuring. In aggregate, the top 11 Japanese banks reduced reported NPLs to less than 2.4% of total loans as of end September 2005 down from 7.2% in March 2003. Although the sector is currently enjoying record profits, a substantial part of this is due to the reversal of NPL provisions, which have accumulated over the years. Japan's sovereign ratings remain constrained by its large fiscal deficits and outstanding debt, as well as uncertainty over the impact of possible rising interest rates, and the political succession in the ruling Liberal Democratic Party scheduled for September 2006. The improved economic picture is supporting modest fiscal consolidation, and the general government deficit is expected to fall below 6% of GDP in fiscal 2006 from 8.2% of GDP in 2002. However, Standard & Poor's expects fiscal consolidation will be only gradual to the end of the decade. Net general government debt should crest around 115% of GDP early in the following decade and decline thereafter, thanks to better economic growth prospects. Practical and sustainable implementation of the medium term fiscal consolidation plan, which the government plans to announce in late June 2006, are likely to be keys for controlling the size of government debt. The Bank of Japan's shift from its zero interest rate policy could increase real interest rates for the government, which in turn would make fiscal consolidation more difficult. The positive outlook on the rating is dependant on the Japanese government maintaining its commitment to public sector reform and debt reduction. The ratings could be raised if progress accelerates, although the leadership change in the LDP in September 2006 is creating some uncertainty. New leadership could result in a dilution of the current government's commitment to structural reforms, particularly the pace of fiscal consolidation. If vested interests in the bureaucracy, political parties, and parts of the private sector erode the progress already made or preclude further progress, there could be downward pressure on the ratings. ========= K O R E A ========= LG CARD: Shinhan and NACF May Emerge Best Bidders ------------------------------------------------- Shinhan Financial Group Co. and National Agricultural Cooperative Federation have emerged as the most likely winners in the bid for LG Card Co. Ltd, while Hana Financial Group Inc. is craning for the last minute turnaround, The Korea Herald reports. The deadline for primary due diligence on the card issuer is set for today, May 24, 2006. According to the report, the foreign bidders -- United Kingdom- based HSBC, Standard Chartered First Bank and Barclays -- still remain active but have proven weaker than the Korean bidders. The Troubled Company Reporter - Asia Pacific reported in March 2006 that LG Card's shareholders, including Korea Development Bank who holds 22.9% of LG Card, will be selling between 51% and 72% stake in the credit card issuer. The sale is expected to generate around KRW6 trillion. LG Card creditors, including Kookmin Bank and the Woori Bank unit of Woori Finance Holdings Co., are hoping that the sale will succeed so they could recover around KRW5 trillion spent in bailing out LG Card in 2004. A May 16, 2006 update by the TCR-AP stated that KDB warned that it would not sell its shares in LG Card if the bidding prices fall short of a "fair value." The Korea Herald relates that Shinhan Financial, though discouraged by the consensus that LG Card may be overvalued, remains strongly interested in acquiring the credit card company, saying that purchasing LG Card would have more pros than cons for the group. Shinhan reaffirmed its plan to submit a letter of intention on schedule. According to The Herald, Shinhan can deliver up to KRW4.5 trillion for LG Card, including KRW2.8 trillion of its own, and KRW1.7 trillion from a consortium of investors. NACF has also stressed out its eagerness to acquire LG Card. NACF has also emphasized its ties with Korea's agricultural and distribution sector, stating "the acquisition of LG Card should not only concern the bidding price, but also about its impact on the future of the nation's financial industry." The Herald notes that NACF is capable of generating KRW1.6 trillion internally, and the rest from the nation's pension funds and other public funds like the Military Mutual Aid Association. It is also reported to be considering setting up a special purpose company to issue company bonds to raise capital. KDB plans to pick the preferred bidders by early June 2006 and finalize the deal by August or September. About LG Card Co. Headquartered in Seoul Korea, LG Card Co. -- http://www.lgcard.com/-- provides installment finance services and credit card, as well as leasing services to credit worthy companies while acquiring valuable assets from merchant banks and leasing firms. LG Card also finances families wishing to purchase big ticket items such as automobiles, appliances and computers. At the end of October 2003, LG Card had KRW3.24 trillion more debt than assets and had faced threats of liquidity crisis and court receivership. LG Card has been in the hands of creditors since it was rescued from bankruptcy through a KRW5 trillion (US$4.78 billion) debt-for-equity swap and a further KRW1 trillion bailout in late 2004. Creditors are hoping to recover the bailout amount through a sale of the credit card issuer. =============== M A L A Y S I A =============== AYER HITAM: Books Lower Net Loss in Third Quarter ------------------------------------------------- On May 22, 2006, Ayer Hitam Tin Dredging Malaysia Berhad lodged its financial report for the third quarter ended March 31, 2006, with the Bursa Malaysia Securities Berhad. For the quarter under review, the Group reported a revenue of MYR232,000 and net loss of MYR191,000, compared to a revenue of MYR1,304,000 and net loss of MYR1,220,000 in the same quarter in the preceding fiscal year. The Company says that lower losses for the recent quarter were mainly due to the delay of launching its properties. The intense competition within the property development sector has necessitated changes in marketing strategies and in housing lot sizes for Taman Juara Jaya. This meant inevitable delays in new launches resulting in lower revenue. The Company's board of directors does not recommend any interim dividend for the current quarter ended March 31, 2006. Pending completion of the Proposed Restructuring Scheme, the Group's results are not expected to register any material improvement for the financial year ending June 30, 2006. Summary of Key Financial Information Individual Period Cumulative Period Current Year Preceding Year Current Year Preceding Year Quarter Corresponding to Date Corresponding Quarter Period 31-03-2006 31-03-2005 31-03-2006 31-03-2005 MYR'000 MYR'000 MYR'000 MYR'000 * Revenue 232 1,304 438 8,578 * Profit/(loss) before tax -230 -1,135 -2,866 -8,388 * Profit/(loss) after tax and minority interest -191 -1,220 -2,866 -8,496 * Net profit/(loss) for the period -191 -1,220 -2,866 -8,496 * Basic earnings/(loss) per shares (sen) -0.28 -1.80 -4.23 -12.54 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End -0.3624 -0.3059 The Company's Third Quarter Report and the notes to the financials are available for free at: http://bankrupt.com/misc/tcrap_ayerhitamreport052306.xls http://bankrupt.com/misc/tcrap_ayerhitamnotes052306.pdf About Ayer Hitam Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in property development and the trading of promotional products and services in Malaysia. The Company is also engaged in the trading of uninterrupted power supply equipment and magnetic fuel treatment systems and the provision of investment holding, nominee services, hotel development and management and renovation services. The Company has been incurring huge losses in the past years and has defaulted on several loan facilities. As of January 31, 2006, Ayer Hitam Tin Dredging Malaysia Berhad's payment defaults have reached MYR39,624,453.59. The Company has presented a restructuring proposal, which was rejected by the Securities Commission after determining that the Scheme is not a comprehensive proposal capable of resolving all the financial issues faced by the Company. The Proposed Restructuring Scheme includes provisions on: * capital reduction; * amendments to the company's Memorandum of Association; * rights issue; * private placement; * debt settlement; and * disposal of Motif Harta Sdn Bhd. AYER HITAM: Unit Inks Pembinaan Partnership Deal for Land Dev't --------------------------------------------------------------- On May 22, 2006, Ayer Hitam Tin Dredging Malaysia Berhad's wholly owned subsidiary, Harta AHT Sdn Bhd, entered into a joint venture agreement with Pembinaan Karisma Efektif Sdn Bhd for the proposed appointment of Harta as the developer of two pieces of freehold land measuring approximately 6.47 acres. The Freehold Land is situated in Hyekeat Estate, Penang, and is unencumbered. Pembinaan Karisma has purchased the Land pursuant to a sale and purchase agreement dated May 10, 2006, signed with the registered proprietor of the Land, Top Acres Sdn Bhd. Top Acres has submitted applications to the relevant authorities for obtaining the approval of the relevant authorities to develop the Land as it is currently classified as hill land. Pembinaan Karisma has agreed to enter into the proposed joint venture agreement with Harta to jointly develop the Land pursuant to Top Acre's Development Application or any alternative development plans HASB, in its discretion, thinks fit after taking into consideration the market conditions, for the consideration and upon the terms and conditions as set out in the joint venture agreement. The joint venture agreement is expected to complement the Ayer Hitam group's efforts to continue to focus and expand on its core business activity in property development. The Agreement will allow the Group to participate in property development project, which is expected to contribute to the future earnings of the Group without having to raise funds to acquire land. The Agreement will not have any material effect on the issued and paid up share capital and net assets of the Ayer Hitam Group. However, it is expected to contribute positively to the Group's future earnings. About Ayer Hitam Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in property development and the trading of promotional products and services in Malaysia. The Company is also engaged in the trading of uninterrupted power supply equipment and magnetic fuel treatment systems and the provision of investment holding, nominee services, hotel development and management and renovation services. The Company has been incurring huge losses in the past years and has defaulted on several loan facilities. As of January 31, 2006, Ayer Hitam Tin Dredging Malaysia Berhad's payment defaults have reached MYR39,624,453.59. The Company has presented a restructuring proposal, which was rejected by the Securities Commission after determining that the Scheme is not a comprehensive proposal capable of resolving all the financial issues faced by the Company. The Proposed Restructuring Scheme includes provisions on: * capital reduction; * amendments to the company's Memorandum of Association; * rights issue; * private placement; * debt settlement; and * disposal of Motif Harta Sdn Bhd. BIMB HOLDINGS: To Hold EGM on June 14 ------------------------------------- An Extraordinary General Meeting of BIMB Holdings Berhad will be held at the 11th Floor of Darul Takaful, in Jalan Sultan Ismail, Kuala Lumpur, on June 14, 2006, at 2.30 p.m. During the meeting, members will be asked to consider and, if thought fit, approve: -- the proposed renounceable rights issue of up to 306,938,750 new ordinary shares of MYR1.00 each in BIMB Holdings at an issue price of MYR1.00 per share, on the basis of one rights share for every two existing ordinary shares of MYR1.00 each held in BIMB Holdings at an entitlement date to be determined later; -- the proposed exemption under Practice Note 22.9.1 of the Malaysian Code on Take-overs and Mergers, 1998 to Lembaga Tabung Haji from having to undertake a mandatory offer for the remaining BIMB Holdings shares not already owned by it upon completion of the Proposed Rights Issue; -- the proposed acquisition by BIMB Holdings of 49,000,000 ordinary shares of MYR1.00 each in BIMB Securities Sdn Bhd representing 49% of the issued and paid-up share capital of BIMBSec, for a total purchase consideration of approximately MYR54.45 million; and -- the proposed amendments of the BIMB Holdings' Articles of Association. About BIMB Holdings Berhad Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad -- http://www.bankislam.com.my/-- is an investment holding company, which operates along Islamic principles. The Company was incorporated in Malaysia on March 20, 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange on September 16 in the same year. Core subsidiaries of the Group are involved in various Islamic financial service activities including banking, stock-broking, leasing and other related services. The Bank has incurred substantial losses since 2000 due to huge financing costs and high provisions for loss-making offshore units. For the quarter ended December 31, 2005, the Company posted a net loss of MYR20.78 million due to higher allowance of non-performing financing of MYR102.24 million and higher total operating expenses of MYR101.51 million. DENKO INDUSTRIAL: Wins Temporary Reprieve from BISB's Claims ------------------------------------------------------------ Beau Industries Sdn Bhd's solicitors, Gooi & Azura, served a statutory notice on March 20, 2006, to Denko Industrial Corporation and New Height Marketing Sdn Bhd for a claim asserting MYR991,175 and an 8% annual interest due from the date of the Writ Summons on October 19, 2005, to the date of realization together with MYR365 in costs, the Troubled Company Reporter - Asia Pacific recounts. Denko had notified its own solicitor to apply for a stay of execution on statutory notice, pending an appeal against the decision of the Senior Assistant Registrar. In a recent update, the application came up for decision on May 19, 2006, in respect of the Company's application for stay of execution pending disposal of the appeal. In its decision, the Court ruled that Beau Industries cannot execute the judgment against the Company until the appeal is heard and disposed of. About Denko Industrial Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, Denko Industrial Corporation Berhad is involved in the manufacture and sale of plastic raw materials, semi-finished products and chemicals, plastic pipes and plastic injection molding products, foundation garments made of cotton, polyester and other types of fabrics, consumer and industrial products. Its other activities include the provision of maintenance services for sewerage systems and waste water treatment plants, production of packing material and vacuum foams, property rental, wholesaling and retailing of foodstuff and investment holding. The Company was released from its Practice Note 4 status in March 2004 following the implementation of the Company's debt-restructuring scheme. Bursa Malaysia, however, still monitors the Company's operations, as it continues to book losses even after its current financial condition was regularized. DENKO INDUSTRIAL: Proposed Tae-Pee Shares Purchase Aborted ---------------------------------------------------------- Denko Industrial Corporation Berhad had, on March 23, 2006, given its consent to its subsidiary, Lean Teik Soon Sdn Bhd, to enter into a negotiation with Tae-Pee Seri Trading Sdn Bhd in relation to the purchase of shared for a cash consideration of MYR1 million. In an update, Denko's board of directors disclosed that the proposed negotiation to acquire Tae-Pee in relation to the purchase of shares has been aborted. Reasons for the move were not immediately disclosed to Bursa Malaysia Securities Berhad. About Denko Industrial Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, Denko Industrial Corporation Berhad is involved in the manufacture and sale of plastic raw materials, semi-finished products and chemicals, plastic pipes and plastic injection molding products, foundation garments made of cotton, polyester and other types of fabrics, consumer and industrial products. Its other activities include the provision of maintenance services for sewerage systems and waste water treatment plants, production of packing material and vacuum foams, property rental, wholesaling and retailing of foodstuff and investment holding. The Company was released from its Practice Note 4 status in March 2004 following the implementation of the Company's debt-restructuring scheme. Bursa Malaysia, however, still monitors the Company's operations, as it continues to book losses even after its current financial condition was regularized. FARLIM GROUP: Chinese Operations Drive First Quarter Losses ----------------------------------------------------------- On May 22, 2006, Farlim Group (Malaysia) Berhad filed its financial report for the quarter ended March 31, 2006, with the Bursa Malaysia Securities Berhad. The Group registered a turnover of MYR42.973 million and loss before tax of MYR4.597 million for the first quarter, compared to the MYR54.455 million turnover and MYR6.755 million pre-tax loss for the preceding year's corresponding period. The Group says that losses for the first quarter were mainly attributable to the operational losses of the foreign operations in the People's Republic of China. The Company said that it is actively pursuing the disposal of its investments in China due to the continuing losses recorded by the China operations. The disposal of the China Investments is a key factor in the turnaround of the Group's performance. Barring any unforeseen circumstances, the Group is confident it will continue to make every effort to improve efficiency and productivity with a view to achieving better performance. There was no dividend recommended for the financial period under review. Summary of Key Financial Information Individual Period Cumulative Period Current Year Preceding Year Current Year Preceding Year Quarter Corresponding to Date Corresponding Quarter Period 31-03-2006 31-03-2005 31-03-2006 31-03-2005 MYR'000 MYR'000 MYR'000 MYR'000 * Revenue 42,973 54,455 42,973 54,455 * Profit/(loss) before tax -4,597 -6,755 -4,597 -6,755 * Profit/(loss) after tax and minority interest -5,480 -7,550 -5,480 -7,550 * Net profit/(loss) for the period -5,480 -7,550 -5,480 -7,550 * Basic earnings/(loss) per shares (sen) -2.33 -4.33 -2.33 -4.33 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End 0.7000 0.7300 The Company's First Quarter Report and the relevant notes are available for free at: http://bankrupt.com/misc/tcrap_farlimgroupnotes052306.pdf http://bankrupt.com/misc/tcrap_farlimgroup052306.pdf About Farlim Group (Malaysia) Berhad Headquartered in Penang, Malaysia, Farlim Group (Malaysia) Bhd -- http://www.farlim.com.my/-- is principally engaged in property development. Due to the poor performance of its Chinese arm, the Company's business operations are dependent on the Malaysian economy and general market confidence. The Group has registered continuous losses and has not declared any dividend since fiscal 2000. MALAYSIA AIRLINES: Unveils Separation Scheme to Trim Workforce -------------------------------------------------------------- Malaysia Airlines, on May 22, 2005, launched its Mutual Separation Scheme which fast tracks its intention to right size its workforce a year ahead of the schedule outlined in its publicly announced three-year business turnaround plan, the Company said is a press release. The national carrier will receive compensation from Penerbangan Malaysia Berhad for the termination of an agreement for domestic business unbundling. Under the terms of the contract, Malaysia Airlines is required to be given 12 months' notice, or be given compensation in the event of a termination. The cost of the MSS will be funded by the compensation. Since the MSS is a voluntary exercise, Malaysia Airlines expects the take-up rate from staff to be between 3,000 to 5,000. Over the past few weeks, Malaysia Airlines has had numerous discussions with employee unions and associations on the terms and conditions of the MSS. The MSS will be extended to all permanent and confirmed employees in Malaysia and locally recruited Malaysian staff posted overseas. Some 18,027 invitations were sent to eligible employees who have until June 7, 2006, to make a decision. "We are committed to conducting this rightsizing exercise in the most compassionate way possible by working out terms and conditions which are attractive to our employees. We have also tasked key executives with ensuring that there are no service disruptions nor compromising safety and service quality. Throughout the exercise, we want to ensure that our customers' needs are being taken care of," Idris Jala, Managing Director of Malaysia Airlines, said. Employees whose MSS applications have been approved, will receive payment based on their current monthly salary, ranging from one month to three months, for every year of service in the Company, a one-off medical benefit payment of MYR2,000 per staff and annual leave buy-back on all unutilized staff leave. In addition, hospitalization benefits for the staff, spouse and dependants will be provided for 12 months from the date of separation and one complimentary privilege travel air ticket for use by December 31, 2006. This is a Mutual Separation Scheme, where both the employee and employer have to agree, the Company said in the release. Once the employee has accepted, the respective divisional heads will then recommend if the staff can be released or otherwise. These recommendations will then be reviewed and decided by a panel comprising key leaders in Malaysia Airlines. The panel's decision is final and will be communicated to staff within two weeks from the date of the decision. The Company targets to complete the MSS by July 31, 2006. Throughout the MSS exercise, Malaysia Airlines will activate help desks in KL International Airport and Subang, including a 24-hour toll-free helpline to assist staff. To help employees who decide to accept the MSS, the Company is in talks with various airlines on outplacement opportunities and the Ministry of Human Resources and external parties on advisory and counseling services. Concurrently, Malaysia Airlines is continuing its meetings with AirAsia to finalize the handing over of the non-trunk domestic routes as well as the Rural Air Services' operations in time for the August 1, 2006, handover date. From August 1, Malaysia Airlines' domestic services will take to the skies serving the trunk routes with a leaner outfit. The airlines will have 16 stations, 58% reduction in flight frequencies, 50% reduction in aircraft fleet and 28% reduction in seat capacity. 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. MBF CORPORATION: Units Placed Under Creditors' Voluntary Wind-up ---------------------------------------------------------------- Creditors of MBf Corporation Berhad, on May 22, 2006, resolved to wind up two company subsidiaries: 1. MBf Northern Nominees (Asing) Sdn Bhd; and 2. MBf Personal Care Sdn Bhd. The companies will be placed under voluntary liquidation since they cannot anymore continue business by reason of their liabilities. Subsequently, a provisional liquidator was appointed for the purposes of the wind-up: Tam Kok Meng Messrs Tam & Associates Corporate Services Sdn Bhd Liquidator D-8-3 Level 10 Block D, Menara Uncang Emas 85 Jalan Loke Yew, Kuala Lumpur, Malaysia MBf Northern Nominees was incorporated on July 1, 1993, and the principal activity was the provision of nominee services for foreigners before it ceased operations and became dormant. Its authorized share capital is MYR100 comprising 100 ordinary shares of MYR1.00 each of which two ordinary shares have been issued and fully paid-up. MBf Personal Care, on the other hand, was incorporated on November 5, 1987, and the principal activity was provision of rubber gloves. Its authorized share capital is MYR6,200,000 comprising 6,200,000 ordinary shares of MYR1.00 each of which 6,157,000 ordinary shares have been issued and fully paid-up. It ceased its operations in 1997 and has been dormant since. The wind-up of MBf Northern Nominees is appropriate since its holding company, MBfNSB is already in liquidation. Both the winding-up of MBf Northern Nominees and MBf Personal Care are part of the internal reorganization of the MBf Corp Group's restructuring scheme undertaken in 2001. About MBf Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, MBF Corporation Berhad is principally involved in promoting and selling property, club and timeshare memberships; leasing factoring facilities, credit cards, consumer financing and related products and property development. Other activity include investment holding. The Group operates in three main areas, namely, Malaysia, Indonesia and Hong Kong and Taiwan collectively. The Group's principal activities are mainly operated in Malaysia except for the credit card business, which is carried out in Indonesia. The Group has no significant operations in Hong Kong and Taiwan other than certain residual assets from a subsidiary that has since been liquidated in Taiwan. The Company is classified under Bursa Malaysia Securities Berhad's Practice Note 17 category and is required to formulate a plan to regularize its financial condition. MBF HOLDINGS: Aussie Unit Completes Acquisitions ------------------------------------------------ MBf Holdings Berhad's Australian subsidiary, Carpenter Products Pty Limited, has completed the acquisition of Millaa Millaa Property and the purchase of 100% equity in Morecambe Pastoral Company Ltd on May 12, 2006, and May 19, 2006. Carpenter Products, which became a wholly owned subsidiary of MBf Holdings on April 6, 2006, entered into two separate agreements with respective vendors to acquire Australian properties for a total purchase consideration of AUD8.35 million. On April 13, 2006, Carpenter Products inked an agreement to purchase Millaa Millaa Property in Queensland, Ausdtralia, from Michael John Toohey, Marilyn Anne Toohey and Michael John Toohey. Then, on April 11, Carpenter Products entered into an acquisition deal for a 100% equity in Morecambe Pastoral Company Ltd with Neal Graham Rockley & Patrice Kristin Rockley as trustees for the Rockley Investment Trust and Ross Thomas Johnson & Jennifer Maree Johnson as trustees for the Johnson Investment Trust. The deposit of 10% of the purchase consideration amounting to AUD835,000 was funded by Corali Securities Limited, a party related to MBf Holding's chief executive officer, Datuk Dr Ninian Mogan Lourdenadin. The balance was funded by debt financing from an Australian bank. The Acquisitions were undertaken with an aim to diversify the MBf Group's business activities across the region. With the added synergies from the Group's agricultural and farming expertise, it is expected that the business has potential to realize further significant growth in future. About MBf Holdings Headquartered in Selangor Darul Ehsan, Malaysia, MBf Holdings Berhad is involved in retailing and wholesaling of merchandise, shipping, automotive and heavy earthmoving equipment and printing of packaging boxes. Its other activities include copra, cocoa, coffee and tea production, issuing of credit cards, acquiring merchants and other related services, provision of financial services, provision of property management, investment in properties, property development including dealing in land and estate management, club management, development and sale of membership of a recreational club, education and investment holding. The Group's operations are carried out in Malaysia, other Asean countries including Singapore, Thailand and Philippines, Hong Kong, South Pacific Islands, Australia and United States of America. Over the years of 1997 and 1998, the ravages of the Asian economic crisis adversely affected the operations of the MBf Group. Given the substantial debt and accumulated losses suffered, MBf Holdings sought protection under Section 176(1) of the Companies Act 1965. MBf Holdings obtained court orders to propose a scheme of arrangement to restructure its borrowings with its lenders and selected creditors and to restrain its creditors from commencing recovery action. The Scheme was completed on June 30, 2003. Included in the Scheme was a debt- restructuring scheme, which excluded the lease, hire-purchase liabilities, general unsecured liabilities and amounts owing to subsidiary and associated companies. The lease, hire-purchase and general liabilities were to be addressed in the ordinary course of business. However, the Scheme made no provision for the settlement of the Inter-company Loans, which the Group is now having problems with. METROPLEX BERHAD: Sub-subsidiary Faces Dissolution -------------------------------------------------- The Companies Commission of Malaysia, on May 15, 2006, notified that Metroplex Berhad's sub-subsidiary, Juamantan Quarries (Sabah) Sdn Bhd, will be struck off the register and dissolved within three months, from May 15, 2006. JQS has been dormant since its incorporation on August 20, 1996. The striking off of JQS does not have any material effect on the earnings or net tangible assets of Metroplex Group for the financial year ending January 31, 2007. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong and Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a winding-up petition on the Company to the Kuala Lumpur High Court. Morgan Stanley also filed for a summons to appoint a provisional liquidator for the wind up. Until and unless a provisional liquidator is appointed pursuant to the application to the Court by the Petitioner to appoint provisional liquidator for Metroplex, the winding-up petition will not have significant impact on the Group's operations as MB is currently working out a debt-restructuring scheme. In the event the wind-up petition succeeds, the Company will be put into liquidation. TANAH EMAS: Books MYR309,000 Net Loss in Third Quarter of FY06 -------------------------------------------------------------- Tanah Emas Berhad lodged its financial report for the third quarter ended March 31, 2006, to the Bursa Malaysia Securities Berhad on May 22, 2006. For the quarter under review, the Group recorded a revenue of MYR21.8 million, as compared to the MYR23.2 million in the corresponding quarter in 2005. The growth in revenue was due to the increase in the production of crude palm oil and palm kernel despite of the lower average crude palm oil price. But despite the higher revenue generated from the plantation business, the Group registered a loss before tax of MYR309,000, as compared to a pre-tax profit of MYR4.3 million in the same quarter last year. After providing for the impairment of the discontinued timber business-related assets and the Group's investment, the Group reported a net loss of MYR309,000 with a loss per share of 0.15 sen. There was no interim or final dividend declared or recommended for the quarter under review. Summary of Key Financial Information Individual Period Cumulative Period Current Year Preceding Year Current Year Preceding Year Quarter Corresponding to Date Corresponding Quarter Period 31-03-2006 31-03-2005 31-03-2006 31-03-2005 MYR'000 MYR'000 MYR'000 MYR'000 * Revenue 21,767 23,200 70,781 86,125 * Profit/(loss) before tax -64 4,307 2,411 3,887 * Profit/(loss) after tax and minority interest -309 -4,271 1,502 -4,880 * Net profit/(loss) for the period -309 -4,271 1,502 -4,880 * Basic earnings/(loss) per shares (sen) -0.15 -0.54 0.72 -0.31 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End 0.7000 0.6900 About Tanah Emas Corporation Berhad Headquartered in Sandakan, Sabah, Malaysia, Tanah Emas Corporation Berhad -- http://www.tanamascorp.com/-- is engaged in cultivation and processing of crude palm oil and palm kernel. The Company is also engaged in the production of sawn timber, plywood and veneer, manufacture, import, export and distribution of organic fertilizers, provisioning of technology license and investment holding. As of June 30, 2005, the Company's balance sheet showed a strained liquidity, as its current assets of MYR25 million is insufficient to pay current liabilities of MYR41 million. The Group has a deficit of MYR16 million. ===================== P H I L I P P I N E S ===================== LAFAYETTE MINING: DENR to Review RRFFC Findings Report ------------------------------------------------------ The Department of Environment & Natural Resources will review a report by the Rapu-Rapu Fact Finding Commission regarding its study of two cyanide spills in Lafayette Philippines, Inc's Rapu-Rapu mine, before the report would be passed on to President Gloria Macapagal Arroyo, Manila Standard Today reveals. In an interview with the Standard, Presidential Chief of Staff Michael Defensor said that the RRFFC Report should not scare away investors as it does not necessarily mean that the President would heed the recommendations right away. Mr. Defensor added that the approval or revocation of mining permits was not under the jurisdiction of the Office of the President, but was delegated to the DENR. The RRFFC was created by President Arroyo to investigate the spill incidents and was tasked to submit a report before Lafayette will be given the go signal to reopen its Rapu-Rapu mine, which allegedly caused damage to the surrounding environment and posed health risks to the island residents. The RRFFC has already submitted a 169-page report on its findings, and recommended that: -- the Rapu-Rapu mine be closed permanently; -- the environmental compliance certificate issued to the Australian firm be revoked; -- an immediate compensation of the victims be ordered; and -- charges against some DENR officials in Albay be filed. A report by the Troubled Company Reporter - Asia Pacific on May 23, 2006, states that in contrast to the RRFFC report, an independent study commissioned by the Chamber of Mines found that Lafayette had met the conditions set by the Government to prevent another spill, and recommended that the Company's operating permit be restored for a trial period. Moreover, according to the Center for Environmental Concerns, the presence of toxic metals such as cadmium, lead and mercury, was found in 34 sediment samples obtained from the nearby waters of Rapu-Rapu Island. But Lafayette denied using mercury in its plant operations. The Philippine Inquirer recounts that the DENR still has to consider the independent reports made by other firms on the spill incidents, before it can decide on the matter. * * * Lafayette Mining Philippines, Incorporated, is a subsidiary of Australian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. The Department of Environment and Natural Resources' former secretary, Mike Defensor, ordered the closing of Lafayette Philippines in 2005 when the Company's mine tailings were accidentally spilled into the Albay Gulf last October, killing thousands of fish and destroying the livelihood of fishermen in the area. The Company was also fined PHP10.7 million for violating the Clean Water Act and its environmental compliance certificate. MARIWASA MANUFACTURING: 1Q Net Income at PHP1.35 Million -------------------------------------------------------- Mariwasa Manufacturing Corp. continues to pick up as its first quarter sales for 2006 shows a 4% growth to PHP431.68 million as compared to the result for the first quarter in 2005, the Troubled Company Reporter - Asia Pacific discovers from the Company's financial statements. The slight growth was due to the introduction of new ceramic tiles with Microban protection being offset by stiffer Chinese competition and a shortfall of export sales. The tiles-maker also posted a net income of PHP1.35 million in the first quarter. This after posting a 2005 full-year net profit of PHP17.92 million, which ended a series of net losses. Mariwasa Manufacturing Corporation Key Accounts (in PHP millions) 03/31/2006 12/31/2005 ---------- ---------- Total Current Assets 801.91 753.54 Total Assets 3,708.07 3,687.63 Total Current Liabilities 3,249.27 3,230.04 Total Liabilities 3,538.22 3,519.12 Deficit 1,847.99 1,849.34 Net Income 1.35 Net Sales 431.68 Mariwasa's financial report for the first quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/MMI_17Q_Mar2006.pdf Incorporated on November 5, 1963, Mariwasa Manufacturing Corporation -- http://www.mariwasa.com/-- manufactures and sells of glazed ceramic floor tiles in various sizes, colors and designs. Its distribution network remains to be the largest in the industry, spanning the whole archipelago. The Company has 76 distributors, as well as a significant number of exclusive distributors all through out the country. Aside from the local market, Mariwasa tiles also enjoy wide acceptance in foreign markets such as United States and Hong Kong, among others. Going Concern Doubt In the Company's 2005 Annual Report, Aileen Saringan of Sycip Gorres Velayo and Co., the Company's independent auditor, raised substantial doubt on the Company's ability to continue as a going concern. According to Ms. Saringan, "the Parent Company and its subsidiaries have incurred recurring net losses and have a working capital deficiency. In addition, the Parent Company and its major subsidiary have not complied with certain loan covenants with creditor banks." The Company has deferred payments pending the approval of a proposed restructuring scheme. The Company further outlined its plan of operations to remedy the going concern doubt, foremost of which are steps to improve business operations: * Increasing revenues through the introduction of special ceramic tiles which utilize new technologies and new premium products oriented towards the medium and higher residential segments; * Increasing the Group's presence and its activities in emerging markets outside the National Capital Region; and * Implementing additional programs designed to reduce other production costs, which programs include: -- Joint programs with suppliers to reduce raw materials costs. This also involves sourcing out alternative low- cost raw materials; -- Energy conservation/reduction programs. This program, which started middle of 2004, has reduced the Group's energy consumption by an average of 12%. Energy cost accounts for 39% of the Group's total manufacturing cost; and Relative to this, the Group generates its own power in which cost is 8% lower than Meralco rates. The Group is also exploring the possibility of using charcoal-run steam turbine generators to further reduce power costs. -- Line efficiency programs designed to reduce wastages and reduce materials consumption. Loan restructuring has been initiated and it is expected that this will be concluded by the end of the second quarter of 2006. With the completion of the loan restructuring, the Group expects to reduce its interest expense and would have more flexibility in its cash management. Aside from these, the Group has also implemented these measures: * Tightening credit control to avert potential bad debts; and * Continuously improving production efficiencies and cutting down overall costs by optimizing capacities and reducing downtime. Legal Proceedings As of December 31, 2005, legal actions have been taken against certain distributors with accounts that are doubtful of collection. Total estimated losses at stake pertaining to these receivables amount to PHP39 million. NEGROS NAVIGATION: Cuts Losses on Reduced Operations ---------------------------------------------------- Negros Navigation Co. reported a drop in its losses for the first quarter of 2006 to PHP29 million, against a restated PHP82 million net loss for the same period last year, on reduced operations, the Manila Times says. The Company operated five to six vessels this year, against nine vessels in 2005, leading to a 4% drop in revenues to PHP475 million. Increased competition from the airline industry, a 29% drop in passenger volume and a 10% drop in cargo volume, as well as the government-sponsored nautical highway, adversely affected Nenaco's performance. With fewer vessels to operate, operating expenses fell to PHP114 million, versus PHP544 million in 2005. Vessel maintenance and maintenance also dropped by PHP30 million, whereas depreciation and dry-docking amortization was reduced by PHP13 million on the layover of two vessels up for sale. Nenaco's financing costs increased, however, according to the Times, by 26% or PHP10 million on accrued interest on current advances by its parent firm Metro Pacific Corp. and other accruals totaling PHP1.5 million. About Negros Navigation Negros Navigation Company, Incorporated -- http://www.negrosnavigation.ph/-- is the shipping unit of Metro Pacific Incorporated. It owns, maintains, services and operates vessels and engages in domestic shipping operations. Presently, the Company operates seven passenger and cargo shipping vessels and two cargo-container shipping vessels which service 14 ports. Nenaco also provides trucking and forwarding services, and operates shuttle buses and vans within Negros Island and offers domestic tour and other land transport services, as well as ticketing services. * * * In December 2003, the Philippine Securities and Exchange Commission ordered Negros Navigation to explain five accounting discrepancies in its 2002 audited financial statement, which may have bloated its earnings. Moreover, in March 2004, Negros Navigation entered talks with Tsuneishi Heavy Industries to settle the Company's PHP100 million debt. The Troubled Company Reporter - Asia Pacific reported on March 27, 2006, that Negros Navigation's total debt is projected at PHP2.4 billion, including PHP1 billion in bank loans to creditors Bank of Commerce, Equitable-PCI Bank, Export-Import Bank, Metropolitan Bank and Trust Company, and Prudential Bank and Trust Company. It also owes PHP1 billion to its equipment and property lessors and trade suppliers, and needs to settle PHP400 million in unpaid taxes to the Bureau of Internal Revenue. Due to its financial condition, Negros Navigation could not pay its debts as they matured, hence they filed for rehabilitation before the Manila Regional Trial Court on Oct. 6, 2004. Subsequently, the court approved the Company's 10-year restructuring plan recommended by its receiver, Monico Jacob, a year later. Under the court-approved rehabilitation plan, Negros Navigation proposed to settle its financial obligations through cash settlement, dacion en pago of passage tickets and cargo space, debt conversion into convertible shares at par value, and the restructuring of balance into long-term notes or preferred shares. The Court allowed the Company to restructure its total secured debt for 10 years, with a one-year grace period on interest payments and a three-year grace period on the principal. The TCR-AP reported on February 23, 2006, that Negros Navigation posted a PHP17 million net profit for 2005 compared to a PHP480 million loss in 2004, due to an 18% rise in passenger volume and a 12% increase in cargo volume. The Company plans to increase its trips to strategic ports in Mindanao in order to increase its 6% share of the 1.2 million-passenger market to 30%. PHILIPPINE NATIONAL BANK: Cashes In On Strong Profitability ----------------------------------------------------------- Philippine National Bank reported a 75% rise in its net income to PHP628 million in the year ended December 31, 2005, from 2004's PHP251 million, the Troubled Company Reporter - Asia Pacific learns from the Company's financial report. Non-performing loans were reduced by 26%, or PHP9.8 billion, from PHP37.7 billion in 2004 to PHP27.9 billion in 2005. Consequently, the Bank's NPL coverage ratio also improved at 69.5% from 41% in 2004. Consolidated resources were PHP3.4 billion higher at PHP223.1 billion. However, consolidated liabilities as of year-end 2005 stood at PHP200.2 billion, higher by PHP6.0 billion than its liabilities of PHP194.2 billion as of year-end 2004. Philippine National Bank -- http://www.pnb.com.ph/-- is the Philippine's first universal bank established on July 22, 1916. The Bank's core business consists of lending and deposit-taking activities from corporate, middle market and retail customers, as well as various government units. Its other principal activities include bill discounting, fund transfers, remittance servicing, foreign exchange dealings, retail banking, trust services, treasury operations and trade finance. Through its subsidiaries, PNB engages in a number of diversified financial and related businesses such as international merchant banking, investment banking, life/non-life insurance, leasing, financing of small-and-medium-sized industries, and financial advisory services. It introduced innovations such as the bank on wheels, computerized banking, ATM banking, mobile money changing and domestic travelers' checks. The Company has not declared any cash dividends on its common equity for the fiscal years 2004 and 2005. PNB is on the fourth year of its five-year rehabilitation plan approved by the Bangko Sentral ng Pilipinas. The rehabilitation plan, which was signed in May 2002, stipulated these financial components/conditions: * PHP7.8 billion of the PHP25 billion assistance extended by the BSP and Philippine Deposit Insurance Corp. would be converted into equity; * PNB will partially settle PHP10 billion of its obligation by way of dacion en pago through the assignment of government and government-related receivables; and * PNB will maintain PHP6.1 billion as a 10-year loan at an interest rate equivalent to the 91-day T-Bill rate plus 1 percentage point to be re-priced quarterly. Subsequently, PNB secured the approval of the Securities and Exchange Commission in July 2002 to undergo quasi- reorganization, which reduced the par value of its shares from PHP60 per share to PHP40 per share. This was done in order to accommodate the PHP7.8 billion debt-to-equity conversion of the PDIC through the issuance of 195,175,444 preferred shares. The debt-to-equity conversion allowed the Government to have a direct hand in the governance and management of the Bank until full divestment of its equity holdings. The move resulted in the Government controlling 44.98% of the Bank, while the Lucio Tan Group holds a 44.98% stake. The Parent Company's deficit before and after the quasi- reorganization: (in PHP thousands) Deficit before the quasi-reorganization (balance at December 31, 2001) 8,877,094 Reduction in par value during the year (7,561,409) Application of translation adjustment to deficit on quasi-reorganization (1,626,430) Deficit after the quasi-reorganization (310,745) Transfer to capital paid in excess of par value 310,745 Debt-to-Equity Conversion In 2002, convertible preferred shares were issued to the PDIC as payment for the PHP7.8 billion borrowed by the Parent Company from the PDIC. This increased: (i) the authorized capital stock of the Parent Company to PHP50.0 billion consisting of 1,054,824,557 common shares with a par value of PHP40 each and 195,175,444 convertible preferred shares with a par value of PHP40 each and; (ii) the issued capital stock of the Parent Company to PHP22.9 billion consisting of 378,070,472 common shares with a par value of PHP40 each and 195,175,444 convertible preferred shares with a par value of PHP40 each. Assignment of Certain Government Accounts to the PDIC On July 30, 2002, the Parent Company and the PDIC signed an agreement wherein the Parent Company transferred and conveyed by way of "dacion en pago", or payment in kind, its rights and interests to the loans of and certain debt securities issued bu various government agencies to the PDIC. The "dacion en pago" arrangement reduced the Parent Company's outstanding obligations arising from the financial assistance given to the Parent Company by the BSP and the PDIC. The accrual of interest incurred by the Parent Company on the government accounts and PHP10.0 billion payable to the PDIC ended on October 1, 2001. After the completion of these corporate actions and rehabilitation, the balance of the Parent Company's outstanding obligations to the PDIC was PHP6.1 billion. This balance was restructured into a 10-year term loan, with interest payable at 91-day treasury bills (T-bills) rate plus 1.00% In line with the rehabilitation program of the Parent Company as approved under Monetary Board Resolution No. 626 dated April 30, 2003, the Parent Company and the BSP entered into a Memorandum of Understanding on September 16, 2003. Pursuant to the MOU, the Parent Company will comply with these directives under MB Resolution No. 649, among others: * maintain a strong management team supported by competent staff; * improve the Parent Company's past due ratio; * sell the PNB Financial Center; and * dispose real and other properties owned or acquired. In the third quarter of 2005, the Philippine Government and the Lucio Tan Group completed the joint sale of their 67% stake in PNB. The Lucio Tan Group exercised its right to match the share bid offered by the Union Bank consortium and purchased the shares owned by the government. The Lucio Tan Group thus gained about 77% ownership of PNB. * Philippine Stock Exchange to Suspend Trading for 17 Companies --------------------------------------------------------------- The Philippine Stock Exchange has put on hold its plan to suspend the trading of stocks of 17 listed companies, which failed to beat the May 2, 2006 deadline to submit their structured annual reports, known as SEC Form 17-A. PSE President and CEO Francis Lim said that the Exchange is giving the affected companies until the end of the month to comply with the PSE's reporting requirements. But stiffer penalties, like suspending stock trading, will be meted if they still fail to comply after the grace period. The PSE at first prepared to suspend the trading of the affected stocks effective May 19, 2006, but it decided to grant the grace period in consideration of the difficulties that companies have encountered in preparing financial statements in compliance with International Accounting Standards/Philippine Accounting Standards. IAS/PAS took effect on December 31, 2005, and before that date, Philippine companies had used Generally Accepted Accounting Principles. "The newly prescribed accounting standards are very stringent and radically different from the set of standards that our listed companies are used to. I also understand that even experts in the field disagree on their interpretation," Mr. Lim said. "Fairness therefore demands that companies must be accorded one last chance to comply." The grace period will not be extended and does not affect the PSE's earlier decision to impose fines on the affected companies. "The daily fine shall continue to be applied during the non-extendible grace period," Mr. Lim added. Under the PSE's disclosure rules, listed companies are required to submit their financial reports, using SEC Form 17-A of the Securities and Exchange Commission, within 105 days after the end of the company's fiscal year or within any valid extension thereof. As of 4:00 p.m. on May 19, 2006, these 17 listed companies have yet to comply with the PSE disclosure requirement: 1. Apex Mining Company, Inc. 2. Atlas Consolidated Mining and Development Corporation 3. Benguet Corporation 4. Cosmos Bottling Corporation 5. Cyber Bay Corporation 6. DMCI Holdings, Inc. 7. Federal Chemicals Incorporated 8. Metro Alliance Holdings & Equities Corp. 9. MRC Allied Industries, Inc. 10. Pacifica, Inc. 11. Pancake House, Inc. 12. Philippine National Construction Corporation 13. Philippine Realty and Holdings Corporation 14. RFM Corporation 15. Swift Foods, Inc. 16. Unioil Resources & Holdings Company, Inc. 17. Uniwide Holdings, Inc. ================= S I N G A P O R E ================= ALA PTE: Creditors' Proofs of Claims Due on June 30 --------------------------------------------------- The creditors of ALA Pte Limited are required to submit their proofs of claim to the Company's liquidator on or before June 30, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Heng Lee Seng Liquidator 300 Beach Road #38-05, The Concourse Singapore 199555 APBT MYANMAR: Intends to Pay Dividend to Creditors -------------------------------------------------- APBT Myanmar Pte Limited, which is under compulsory liquidation, notifies creditors of its intention to pay dividend as ordered by the High Court of Singapore. Creditors are requested to lodge their proofs of claim by June 2, 2006, in order to share in the dividend distribution. Contact: Ramasamy Subramaniam Iye Goh Thien Phong Chan Kheng Tek c/o PricewaterhouseCoopers 8 Cross Street #17-00 PWC Building Singapore 048424 SEE HUP SENG: Creditor Subscribes for 4,347,000 New Shares ---------------------------------------------------------- See Hup Seng Limited, on January 11, 2006, entered into a loan agreement with Messrs Aw Yong Wee, Beh Suan Tiong, Cheng Kiang Huat, Koh Kok Leong, Pek Choon Heng, Soh Eng Tai and Yap Sew. In relation to this, Mr. Yap Sew notified the Company of his intention to exercise his option to subscribe for his full entitlement of 4,347,000 new company shares at an option exercise price of SGD0.115 per new share. Listing and quotation of the 4,347,000 new shares on the Singapore Stock Exchange-Sesdaq is expected to take place on May 26, 2006. About See Hup Seng Limited See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The Group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. The Group's balance sheet as of December 31, 2005, revealed strained liquidity, with SGD12.8 million in current assets available to pay SGD28.5 million of current liabilities coming due within the next 12 months. As of December 31, 2005, the Group incurred accumulated losses of SGD28 million. SEE HUP SENG: Auditors Release Report on 2005 Financial Results --------------------------------------------------------------- See Hup Seng Limited's auditors, Messrs Moore Stephens, had issued their report on the Company's financial statements for the year ended December 31, 2005, highlighting a going concern issue, but without qualifying their opinion. Without qualifying their opinion, the Auditors have considered the adequacy of the disclosures made to the financial statements concerning the financial positions of the Company and the Group. The Group made a loss for the year of SGD1,594,000, as compared to 2004's SGD6,279,000. As of December 31, 2005, the Group and the Company were in Net Liability Positions of SGD144,000 (2004 : Net Asset Position - SGD1,996,000) and SGD622,000 (2004 : Net Asset Position - SGD1,203,000), respectively. Furthermore the Group and the Company were in net current liability positions of SGD15,694,000 (2004 : SGD12,955,000) and SGD14,679,000 (2004 : SGD11,922,000), respectively. The ability of the Group and the Company to continue as going concerns is dependent on these factors: * successful completion of the proposed debt restructuring exercise; * reduction of discretionary operating costs and disposal of non-core assets; and * the generation of significant positive cash flows. Subsequent to the year end, the Company entered into a convertible loan agreement with several parties who advanced a loan of SGD2,200,000 to the Company. Furthermore, subsequent to the year end, the Company reached agreement with its bankers to settle part of an outstanding sum of SGD2,429,454 through the issue of new shares with the balance settled in cash. The balance of the term loan was restructured to be repayable over five years commencing April 2006. The financial statements have been prepared on the assumption that the Group and the Company will continue as going concerns with their liabilities paid as and when they fall due and their business will continue to operate as planned. This assumption is premised on future events, the outcome of which is inherently uncertain. In the event the Group and the Company are unable to continue in operational existence for the foreseeable future, the Group and the Company may be unable to discharge their liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realized other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the balance sheets. In addition, the Group and the Company may have to reclassify non- current assets and liabilities as current assets and current liabilities. The financial statements for the financial year ended Dec. 31, 2004, were audited by Ernst & Young, which issued an unqualified opinion on May 7, 2005. In forming their opinion Ernst & Young similarly made reference to the ability of the Group and the Company to continue as going concerns, in particular in the light of the failure of the Group to adhere to certain loan covenants in relation to bank borrowings. About See Hup Seng Limited See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The Group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. The Group's balance sheet as of December 31, 2005, revealed strained liquidity, with SGD12.8 million in current assets available to pay SGD28.5 million of current liabilities coming due within the next 12 months. As of December 31, 2005, the Group incurred accumulated losses of SGD28 million. STARTECH ELECTRONICS: Incorporates New Wholly Owned Unit -------------------------------------------------------- Startech Electronics Limited has incorporated a wholly owned investment holdings subsidiary -- One 36 Venture Pte Limited -- with two fully paid share capital. The incorporation of One 36 Venture Pte Limited is not expected to have ay material impact on the consolidated earnings per share and net tangible assets per share of the Group for the year ending December 31, 2006. About Startech Electronics Limited Startech Electronics Limited -- http://www.startechgrp.com/-- was incorporated as a private company limited by shares on October 12, 1999, under the name PV Startech Holdings Pte Limited. It changed its name to Startech Electronics Limited on February 5, 2001, when it became a public limited company. Startech Electronics provides electronics manufacturing services, supplemented by the distribution business and switchgear design and assembly business which diversifies the Group's earnings base. After posting a SGD17-million net loss in 2003, the Company began restructuring its outstanding loans through a scheme of arrangement with creditors, who had written off part of its debt, as well as transforming its core business and a restructuring of its various operations outside Singapore. STORTEBOOM INTERNATIONAL: Members Opt for Voluntary Wind-up ----------------------------------------------------------- The members of Storteboom International Asia Pte Limited held an Extraordinary General Meeting at Pottebakkersrijge 15 9718 Ag Groningen on May 15, 2006, at 10.00 a.m. During the meeting, members resolved that: -- the Company be wound up voluntarily and that Rohan Kamis and Tan Tuan Hock be appointed as liquidators to oversee the Company's wind-up; -- the Liquidators be authorized to exercise any of the powers given by Section 272 (1) (b), (c), (d) and (e) of the Companies Act, Cap. 50; and -- any part or all surplus assets whatsoever remaining in the Company after satisfaction of all debts and liabilities will be distributed in cash or in specie to the members of the Company. Contact: Rohan Kamis Tan Tuan Hock Liquidators c/o 78 Shenton Way #26-02 Singapore 079120 =============== T H A I L A N D =============== ASIA HOTEL: First Quarter Profit Increases by 38% ------------------------------------------------- Asia Hotel Public Company Ltd submitted to the Stock Exchange of Thailand its financial report for the three months ended March 31, 2006. The Company reported net income of THB34,980,936 on THB294,169,442 of total revenues. This indicates that the first quarter's net profit was up by THB9.64 million, or 38%, compared with the profit for first quarter in 2005. Asia Hotels explains that the total revenues went up 16.2% from the first quarter of last year. Asia Hotel's balance sheet reflected total assets amounting THB4,260,053,791 and total liabilities equal to THB3,383,149,996. Moreover, the Company's balance showed strained liquidity, with THB198,754,775 in total current assets available to pay THB301,482,223 in total current liabilities coming due within the next 12 months. Atipong AtipongSakul raised substantial uncertainty on Asia Hotel's ability to continue as a going concern after auditing its first quarter result. The Company's consolidated financials reflect a THB1.168 billion deficit. Moreover, Asia Hotels' individual financial statement showed a deficit equal to THB1.17 billion. A full-text copy of the Company's financial statement for the quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/ASIA_HOTEL_FS_1Q_2006.xls. * * * Headquartered in Bangkok, Thailand, Asia Hotel Public Company Limited was incorporated on March 24, 1964, and has been publicly listed since 1989. The Company and its two subsidiaries, Asia Pattaya Hotel Company Limited and Asia Airport Hotel Company Limited are involved in the hotel business, with its principal activities consisting of room service and operating restaurants. Another subsidiary, Zeer Property Company Limited is primarily involved in the construction and the building of shopping complexes. During 2004, the Company has invested in Zeer Property Company Limited thru a subsidiary, B.K. Ratchathevi Enterprise Company Limited a holding company. This holding structure was changed on December 22, 2005. The Troubled Company Reporter - Asia Pacific reported on March 28, 2006, that Asia Hotel is operating under a capital deficit in the amount of THB1.21 billion, and the total current liabilities exceeded its total current assets in the amount of THB311 million. As a result, the Company declared no dividends, a subsequent filing to the Thai Stock Exchange on March 14, 2006, indicated. The Company is undergoing a debt and shareholding restructuring and is under Thailand's REHABCO -- or Companies Under Rehabilitation -- Sector. PAE THAILAND: First Quarter NG Significantly Lower than 1Q 2005 --------------------------------------------------------------- PAE (Thailand) Public Company Limited on May 15, 2006, submitted to the Stock Exchange of Thailand its first quarter financial report for the fiscal year 2006. The financial statement reflected the Company's net gain for the first quarter amounting THB5.12 million, significantly lower than the 2005 first quarter net gain of THB11.08 million. The Company's revenue from sales and services in the first quarter of 2006 is THB158.80 million, which has increased by 131.72% compared to the figure in the same period last year. In the first quarter of 2006, cost of sales and services was THB145.83 million, which represents 91.83% of revenue from sales and services. Cost of sales and services in the first quarter of 2005 was recorded at THB61.12 million. The selling and administration expenses of the Company in the first quarter of 2006 are THB11.70 million or an increase of 37.05% over last year. PAE Thailand's balance sheet for the quarter ending March 31, 2006 reflects these figures: Total Current Assets: THB314.39 million Total Assets: THB560.90 million Total Current Liabilities: THB308.02 million Total Liabilities: THB315.27 million The auditor pointed out in his report "that there are still uncertainties which could give rise to doubt as to the Company's ability to continue as a going concern and whether the realization of assets and settlement of liabilities will occur in the ordinary course of business." * * * Headquartered in Bangkok, Thailand, PAE (Thailand) Public Company Limited -- http://www.pae.co.th/-- provides construction services including building and drilling site constructions; industrial services including lasting and technical inspections, as well as communication and manpower supply services. The Company also distributes construction and agricultural equipment. The Company has been operation with a capital deficit for years, culminating in a THB3.05 billion deficit in 2003. That and a series of net losses set the stage for the Company's entry into Thailand's REHABCO, or Companies Under Rehabilitation sector. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie Udtuhan, 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. 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