/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060601.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 1, 2006, Vol. 9, No. 108 Headlines A U S T R A L I A & N E W Z E A L A N D A&H DEVELOPMENTS: Liquidation Petition Hearing Set on June 12 AM PM CALLING: Court to Hear CIR's Liquidation Bid on June 19 BNU PTY: Enters Voluntary Liquidation CAREECE SERVICES: Court to Hear Liquidation Application June 12 COCONUT OASIS: Members Opt to Wind Up Firm DAVID KIRKLAND: Members Receive Wind-up Report DAVO HOMES: Supreme Court Orders Wind-up DELSTEV DEVELOPMENTS: Appoints Official Liquidators EGGSPECKTATIONS PTY: Decides to Halt Operations F.B.L. CORP: Winds Up Business GEELONG TECHNOLOGY: Liquidator to Present Wind-up Report HIRINI BULK: Faces Liquidation Proceedings JC QUALITY: Receivers and Managers Named JESS LA INVESTMENTS: Faces Liquidation Proceedings MELANDAS HOME: To Declare Dividend on June 13 MORGAN LEVON: Members Agree on Liquidation NATIONAL STAFFING: To Distribute Dividend on June 8 QANTAS AIRWAYS: ACCC Okays Price-Fixing Deal with Jetstar Asia RTV AUSTRALIA: To Hold Final Meeting on June 2 SILVERCO PTY: Creditors Decide to Wind Up Firm SPEEDY STEELFIXING: Placed Under Voluntary Liquidation STONE GROUP: Receiver Ceases to Act for Company SYDNEY SUNRISE: Final Meeting Set on June 2 SYNERGY GROUP: Inability to Pay Debts Prompts Wind-up TABERNERS HOLDINGS: Shareholders Decide to Close Firm VILLAGE ROADSHOW: To Exit Cinema Operations Abroad VILLAGE ROADSHOW: Plans to Move to Asia WOODQUEST.COM.AU PTY: Creditors' Claims Due on June 5 C H I N A & H O N G K O N G ASSOCIATE MARBLE: Members and Creditors Meeting Set on July 3 AUCMA LIMITED: Liquidator Ceases to Act for the Company BASIC BREAD: Creditors Meeting Set on June 9 CASTLE MERIT: Creditors' Proofs of Debt Due on June 30 CHANGJIANG POWER: Annual Meetings Slated for June 14 CHEUNG YAU: Members Final Meeting Fixed on June 28 COMPANION MARBLE: Liquidator to Present Wind-up Report on June 3 DASHIN SECURITIES: Members to Meet on June 21 GRIFIT LIMITED: Official Liquidator Named IDT INTERNATIONAL: Unable to Pay Dividends Due to Full-year Loss INTER BUYING: Creditors Must Prove Debts by June 30 K & FUNG: Creditors' Proofs of Claim Due on June 30 REFCO FOREX: Receiving Proofs of Debt Until June 9 TAI HE: Liquidator Steps Aside UNIQUE BUSINESS: Liquidators to Present Wind-up Report WAH SUN: Members Opt for Voluntary Liquidation I N D I A HINDUSTAN CABLES: Government Junks Revival Plans HINDUSTAN PETROLEUM: Buys 40,000-tonne Fuel for June and July LML LIMITED: Incurs INR26-Crore Net Loss in March 31 Quarter MYSORE CEMENTS: Fixes Book Closure in September I N D O N E S I A PERUSAHAAN LISTRIK: Faces Upcoming Competition with SOFs J A P A N CHUOAOYAMA PwC: Loses Over 70 Clients in Accounting Scandal LIVEDOOR COMPANY: 110 Shareholders Seek JPY940 Million Damages MITSUBISHI MATERIALS: S&P Lifts Unsecured Debt Rating to BB+ MITSUBISHI MOTORS: To Recoup Losses Via New Marketing Strategy M A L A Y S I A CONSOLIDATED FARMS: Given Chance to Avert Delisting FURQAN BUSINESS: 6th AGM Slated for June 20 KIG GLASS: Cessation of Operations Trims Revenues MALAYSIA AIRLINES: Posts MYR309.118-Mln Pre-tax Loss in 1Q/FY06 METROPLEX BERHAD: Court Limits Provisional Liquidator's Role NOVA MSC: Releases Fourth Quarter Results PILECON ENGINEERING: Suffers MYR3.5-Mln Loss in First Quarter POLYMATE HOLDINGS: Malayan Banking Slaps MYR10-Million Claim SUGAR BUN: Disposes of GYNA Stake to Curb Losses TENAGA NASIONAL: Lists and Quotes ESOS Shares TRU-TECH HOLDINGS: Faces Trading Suspension WEMBLEY INDUSTRIES: Books MYR18.43-Million Loss in First Quarter P H I L I P P I N E S ATLAS CONSOLIDATED: Turns Around With PHP85 Million Net Income BENGUET CORPORATION: Forex Drives Down Net Loss By Almost 60% MANILA ELECTRIC: Seeks to Return to Power Generation PHILCOMSAT HOLDINGS: Clarifies "Trick-SEC" Reports PHILIPPINE NATIONAL BANK: Releases ASM Results PHILIPPINE TELEGRAPH: Forex Drives Net Loss Up to PHP696.14 Mln UNITED PARAGON: PHP68.54 Net Loss for 1Q 2006 S I N G A P O R E ACCORD CUSTOMER: Kim Eng and CIMB-GK Underwrite Rights Issue INFORMATICS HOLDINGS: Net Losses Cut by 68% for the Full Year SYSTEM MANAGEMENT: Creditors Must Prove Debts by June 26 KAY-ASIA SERVICES: Creditors' Proofs of Claim Due on June 16 YUMEI ENGINEERING: Court Releases Bankruptcy Order T H A I L A N D BANK OF AYUDHYA: Moody's Puts E+ Fin'l Strength Rating on Review KRUNG THAI: Moody's Upgrades Financial Strength Rating to D- PRASIT PATANA: First Quarter NR Cuts 55% Off Current Liabilities - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ A&H DEVELOPMENTS: Liquidation Petition Hearing Set on June 12 ------------------------------------------------------------- The Commissioner of Inland Revenue, on April 21, 2006, filed a petition to liquidate A&H Developments Ltd before the High Court of Rotorua. The Court will hear the petition on June 12, 2006, at 10:45 a.m. Contact: G. N. Jansen Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0432 AM PM CALLING: Court to Hear CIR's Liquidation Bid on June 19 ------------------------------------------------------------- An application to put AM PM Calling Ltd into liquidation will be heard before the High Court of Wellington on June 19, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the application before the High Court on April 19, 2006. Contact: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Center Ground Floor Reception, 518 Colombo Street, Christchurch New Zealand Telephone: (03) 968 0809 Facsimile: (03) 977 9853 BNU PTY: Enters Voluntary Liquidation ------------------------------------- At a general meeting on April 10, 2006, the members of BNU Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets disposal. Subsequently, Bruce Sainsbury was appointed as liquidator. Contact: Bruce Sainsbury Liquidator c/o WHK Greenwoods Level 32, 80 Collins Street Melbourne, Victoria 3000 Australia CAREECE SERVICES: Court to Hear Liquidation Application June 12 --------------------------------------------------------------- The Commissioner of Inland Revenue, on April 21, 2006, filed a petition to liquidate Careece Services Ltd before the High Court of Christchurch. The Court will hear the said petition on June 12, 2006, at 10:00 a.m. Contact: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Center Ground Floor Reception, 518 Colombo Street, Christchurch New Zealand Telephone: (03) 968 0809 Facsimile: (03) 977 9853 COCONUT OASIS: Members Opt to Wind Up Firm ------------------------------------------ The members of Coconut Oasis Maryborough Pty Limited convened on April 11, 2006, and decided that a voluntary wind-up of the Company's operations is appropriate and necessary. Robert Eugene Murphy and David James Hambleton were appointed as joint and several liquidators. Contact: David J. Hambleton Robert E. Murphy Joint & Several Liquidators R. E. Murphy Company Chartered Accountants Level 9, 46 Edward Street Brisbane, Queensland 4000 Australia DAVID KIRKLAND: Members Receive Wind-up Report ---------------------------------------------- A final meeting of members of David Kirkland (Ormonde) Pty Limited will be held today, June 1, 2006. During the meeting, Liquidator Peter Debus will give an account on the manner in which the Company was wound up and its property was disposed of. Contact: Peter Debus Liquidator Bridgeway Accountants & Advisers 105 Dubbo Street, Warren New South Wales 2824, Australia DAVO HOMES: Supreme Court Orders Wind-up ---------------------------------------- The Supreme Court of New South Wales had on April 20, 2006, issued a winding up order against Davo Homes Pty Limited. The Court also appointed Steven Nicols as liquidator. Contact: Steven Nicols Liquidator Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia DELSTEV DEVELOPMENTS: Appoints Official Liquidators --------------------------------------------------- At Delstev Developments Pty Limited's general meeting on April 13, 2006, members appointed Paul Burness and Matthew Jess as liquidators to wind up the Company's business operations. Contact: Paul Burness Matthew Jess Liquidators Worrells Solvency & Forensic Accountants Level 5, 15 Queen Street Melbourne, Victoria 3000 Australia Telephone: (03) 9613 5524 Fax: (03) 9614 3233 Web site: http://www.worrells.net.au/ EGGSPECKTATIONS PTY: Decides to Halt Operations ----------------------------------------------- The members and creditors of Eggspecktations Pty Limited held a meeting on April 10, 2006, and agreed to commence a wind-up exercise. Ozem Kassem of Bentleys MRI Sydney was named liquidator. Contact: Ozem Kassem Liquidator Bentleys MRI Sydney Business Recovery & Insolvency Partnership Level 8, Carrington House 50 Carrington Street, Sydney New South Wales, Australia F.B.L. CORP: Winds Up Business ------------------------------ At a general meeting on April 10, 2006, the members and creditors of F.B.L. Corp Pty Limited decided to shut down the Company's business voluntarily, and appoint Ozem Kassem of Bentleys MRI Sydney as liquidator. Contact: Ozem Kassem Liquidator Bentleys MRI Sydney Business Recovery & Insolvency Partnership Level 8, Carrington House 50 Carrington Street, Sydney New South Wales, Australia GEELONG TECHNOLOGY: Liquidator to Present Wind-up Report -------------------------------------------------------- The members and creditors of Geelong Technology Center Pty Limited will hold a final meeting on June 2, 2006, to receive Liquidator Robert M. H. Cole's account of the Company's wind-up and property disposal. Contact: Robert M. H. Cole Liquidator Cole Downey & Co. Chartered Accountants 6 Moorabool Street, Geelong Victoria 3220, Australia HIRINI BULK: Faces Liquidation Proceedings ------------------------------------------ An application to put Hirini Bulk Transport Ltd into liquidation will be heard before the High Court of Auckland on June 8, 2006, at 10:00 a.m. Teamtalk Ltd filed the application before the High Court on March 23, 2006. Contact: Dianne Lester Credit Consultants Debt Services Ltd Level 3, 3-9 Church Street Wellington, New Zealand Telephone: (04) 470 5972 JC QUALITY: Receivers and Managers Named ---------------------------------------- Gregory Winfield Hall and Philip Patrick Carter of PricewaterhouseCoopers were appointed as receivers and managers of the property of JC Quality Seafood Pty Limited on April 3, 2006. Contact: Philip P. Carter Gregory W. Hall Receivers PricewaterhouseCoopers 201 Sussex Street, Sydney New South Wales, Australia JESS LA INVESTMENTS: Faces Liquidation Proceedings -------------------------------------------------- An application to put Jess La Investments Ltd into liquidation will be heard before the High Court of Auckland on July 13, 2006, at 10:00 a.m. Bantry Services Ltd filed the application before the High Court on April 21, 2006. Contact: Malcolm Whitlock Debt Recovery Group NZ Ltd 149 Ti Rakau Drive, Pakuranga Auckland, New Zealand MELANDAS HOME: To Declare Dividend on June 13 --------------------------------------------- Melandas Home Concepts (ASPLEY) Pty Ltd will declare a first and final dividend on June 13, 2006. Creditors who were unable to prove their claims are excluded from sharing in the dividend distribution. Contact: Jonathan Paul McLeod Liquidator c/o McLeod & Partners Level 3, 380 Queen Street Brisbane, Queensland 4000 Australia Telephone: 07 3004 0800 MORGAN LEVON: Members Agree on Liquidation ------------------------------------------ Members of Morgan Levon Pty Limited convened on April 7, 2006, and decided to liquidate the Company's business operations. Anthony Robert Cant was subsequently appointed liquidator. Contact: Anthony R. Cant Liquidator Romanis Cant Chartered Accountants 106 Hardware Street, Melbourne Australia NATIONAL STAFFING: To Distribute Dividend on June 8 --------------------------------------------------- National Staffing Group Pty Ltd will distribute its first and final dividend on June 8, 2006. Creditors who were unable to prove their claims are excluded from sharing in any distribution the Company will make. Contact: Robert Elliott Liquidator Hall Chadwick 29th Floor, 31 Market Street Sydney, New South Wales Australia QANTAS AIRWAYS: ACCC Okays Price-Fixing Deal with Jetstar Asia -------------------------------------------------------------- The Australian Competition and Consumer Commission has authorized Qantas Airways and its budget carrier, Jetstar, to fix airfares with Singaporean airline Jetstar Asia, in which Qantas holds a 44.5% stake, the Sydney Morning Herald reports. According to the report, the "interim authorization" that the ACCC granted for a co-operation agreement between Qantas, Jetstar and Jetstar Asia would result in the airlines being allowed to collaborate on airfares, schedules and network routing. Qantas hopes that the closer co-operation between the two budget airlines will not only cut costs but also get more Australian tourists on Jetstar Asia-Valuair seats and turn around the Singapore airline's losses. As reported in the Troubled Company Reporter - Asia Pacific on April 6, 2006, Jetstar Asia is in need of a fresh AU$31.2 million capital injection and is planning to scale back its fleet of nine Airbus A320s to rein in its losses. The Sydney Herald notes that, according to some analysts, the cooperation agreement may be the only chance for Jetstar Asia to survive. Qantas, in its application to the ACCC, hinted it might allow its frequent flyers to burn points on Jetstar Asia and also package its holidays into Asia with a Jetstar Asia flight. The authorization will allow Jetstar, which plans to start flights to Thailand, Vietnam, Bali, Japan and Hawaii this November, to link its operations and schedules with Qantas' 44.5% owned Orangestar Holdings, formed when Jetstar Asia and the Singapore airline Valuair merged in 2005. The airlines have already started sharing some of their administrative functions and hope to pool their services into airports they both fly to, the Sydney Herald adds. Jetstar Asia's key rival, Tiger Airways, has opposed the cooperation agreement, asserting that the tie-up would be "detrimental to consumer interests." However, the ACCC clarified that the decision was not final and that it could withdraw its authorization at any stage. In addition, the regulator has barred Qantas and Orangestar from colluding on routes into Australia and routes they overlap on. RTV AUSTRALIA: To Hold Final Meeting on June 2 ---------------------------------------------- The members and creditors of RTV Australia Pty Limited will convene in a final meeting on June 2, 2006, at 9:00 a.m. During the meeting, Liquidator Robert M. H. Cole will report on the manner of the Company's wind-up and property disposal. Contact: Robert M. H. Cole Liquidator Cole Downey & Co. Chartered Accountants 6 Moorabool Street, Geelong Victoria 3220, Australia SILVERCO PTY: Creditors Decide to Wind Up Firm ---------------------------------------------- At a meeting of Silverco Pty Limited held on April 12, 2006, creditors decided to wind up the Company's operations voluntarily. Subsequently, Henry Kazar of Sims Partners was appointed liquidator. Contact: Henry Kazar Liquidator SimsPartners Chartered Accountants PO Box 211, Deakin West Australian Capital Territory 2600 Australia Telephone: 02 6285 1310 SPEEDY STEELFIXING: Placed Under Voluntary Liquidation ------------------------------------------------------ At a general meeting on April 11, 2006, the members of Speedy Steelfixing Pty Limited agreed that it is in the Company's best interests to wind up its operations. P. Ngan of Ngan & Company was appointed as liquidator at a creditors' meeting that same day. Contact: P. Ngan Liquidator Ngan & Co. Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia STONE GROUP: Receiver Ceases to Act for Company ----------------------------------------------- Christopher Wykes ceased to act as receiver and manager of the property of The Stone Group Pty Ltd on April 7, 2006. SYDNEY SUNRISE: Final Meeting Set on June 2 ------------------------------------------- Members and creditors of Sydney Sunrise Developments Pty Limited will hold their final meeting on June 2, 2006, at 10:00 a.m., for them to receive Liquidator Peter P. Krecji's account of how the Company was wound up and its property was disposed of. Contact: Peter P. Krecji Liquidator GHK Green Krejci Level 9, 179 Elizabeth Street Sydney, New South Wales 2000 Australia SYNERGY GROUP: Inability to Pay Debts Prompts Wind-up ----------------------------------------------------- At a meeting of the Synergy Group Int. Pty Limited on April 20, 2006, members decided to wind up the Company's operations as it cannot pay its debts when they fall due. In this regard, Daniel Civil was named liquidator. Contact: Daniel Civil Liquidator c/oRodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia TABERNERS HOLDINGS: Shareholders Decide to Close Firm ----------------------------------------------------- At a meeting of Taberners Holdings Pty Limited on April 11, 2006, shareholders concurred that the Company must voluntarily commence a wind-up of its operations. Kenneth W. Dunstan was named liquidator to manage the wind-up activities. Contact: Kenneth W. Dunstan Liquidator PO Box 7118, Brighton Victoria 3186, Australia VILLAGE ROADSHOW: To Exit Cinema Operations Abroad -------------------------------------------------- Village Roadshow Limited plans to sell its overseas cinema businesses to focus on its movie production operations, the Sydney Morning Herald reports. Fiji Times Online relates that the Company is exiting cinema exhibition operations in Fiji, New Zealand, the United Kingdom and Austria. According to the Sydney Herald, the sales are expected to bring about asset write-downs and to cut losses to AU$35 million for the financial year ending June 30, 2006. The Company also said that it would receive net cash proceeds of AU$5 million if all the sales went ahead. On May 30, 2006, Village Roadshow announced that it had concluded a heads of agreement with Sky City Entertainment Group, which will acquire its cinema interests in New Zealand and Fiji for AU$49.5 million on an installment basis. Village Roadshow holds a 33.3% stake in Village Cinemas in Fiji, while Sky City already owns 33.3%. The Fiji Times notes that the parties' new transaction, which is expected to be finalized on or before June 30, 2006, will see Sky City's interest in the Fiji operations rise to 66.7%. "While the New Zealand and Fiji circuits are great businesses, our decision to sell to Sky City is in accord with our policy to only invest in businesses where we have direct management," Village Roadshow's chief executive officer, Graham Burke, said. In addition, the Sydney Herald reveals that the Company's interests in Northern Ireland have been sold for an undisclosed amount, and the other U.K. and Australian businesses are expected to follow soon. Moreover, Village Roadshow indicated that its cinema operations in Italy and Singapore, in which it owns 50%, may also be next to go. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21 million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. VILLAGE ROADSHOW: Plans to Move to Asia --------------------------------------- After a tie-up deal with Warner Brothers Studios, Village Roadshow Limited is eyeing a theme parks business in Asia, The Advertiser says. Independent Online relates that under the deal, Village Roadshow will take 100% ownership of seven Australian theme parks that had been run as joint ventures with the United States-based Warners Bros. The Australian theme parks include Warner Brothers Movie World, Sea World, Wet 'n' Wild Water World and Australian Outback Spectacular. The Australian says that, according to Village Roadshow chairman Robert Kirby, the deal would give both companies the chance to explore theme park opportunities in Asia. Moreover, Independent Online notes that the new theme parks deal includes Village acquiring Warner's share of associated bank debt of AU$64.5 million and will be funded by a drawdown on Village bank facilities from its existing cash reserves. Village said that the transaction would be incrementally cash flow positive after all interest and reinvestment costs. "Due to depreciation changes within the Warner Bros entities to be acquired however, the acquisition will initially be earnings per share negative on the group," Village said. The announcement comes after the Company said in February 2006 that its bottom line had been hurt by a lack of blockbuster movies compared to previous years. On the other hand, Village Roadshow's theme park division locked in a AU$7.9 million operating profit before tax for the half year -- down AU$1.5 million on the previous corresponding period -- after delays to the opening date of the Superman Escape at Movie World and the new water slides at Wet 'n' Wild, The Australian points out. Warner and Village Roadshow have produced 45 films together including the Matrix series and Charlie and the Chocolate Factory, and have an ongoing licensing agreement, The Australian recounts. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21 million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. WOODQUEST.COM.AU PTY: Creditors' Claims Due on June 5 ----------------------------------------------------- Woodquest.com.au Pty Limited will declare its first and final dividend on June 6, 2006. Creditors are required to submit their formal proofs of claim on or before June 5, 2006, in order to participate in the dividend distribution. The Company's final meeting will be held on June 6, 2006, for members and creditors to receive Liquidator Gerry Mier's account of the Company's wind-up and property disposal. Contact: Gerry Mier Liquidator KPMG Level 13, Cairns Corporate Tower 15 Lake Street, Cairns Queensland 4870, Australia ================================ C H I N A & H O N G K O N G ================================ ASSOCIATE MARBLE: Members and Creditors Meeting Set on July 3 ------------------------------------------------------------- Members and creditors of Associate Marble Maintenance and Service Company Ltd will convene for their final meetings on July 3, 2006, at 11:00 a.m. and 11:30 a.m. respectively. During the meetings, Liquidator Ho Wai Ip will present final accounts regarding the Company's wind-up operations. Contact: Ho Wai Ip Room 1903, 19/F., World Wide House 19 Des Voeux Road Central, Hong Kong AUCMA LIMITED: Liquidator Ceases to Act for the Company ------------------------------------------------------- Ha Yue Fuen ceased to act as liquidator for Aucma (H.K.) Limited on May 18, 2006. BASIC BREAD: Creditors Meeting Set on June 9 -------------------------------------------- Creditors of Basic Bread Ltd will convene on June 9, 2006, 11:30 a.m. to discuss wind-up matters. The meeting will be held at: Office B, 4/F., Kiu Fu Commercial Bldg 300 Lockhart Road Wanchai, Hong Kong. CASTLE MERIT: Creditors' Proofs of Debt Due on June 30 ------------------------------------------------------ Joint Liquidators Geoffrey Leslie Cundle and Margaret Lo Kar Wah are receiving proofs of debt from the creditors of Castle Merit Ltd until June 30, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution the Company will make. CHANGJIANG POWER: Annual Meetings Slated for June 14 ---------------------------------------------------- Creditors and contributories of Changjiang Power Development (H.K.) Company Ltd will convene for their annual meetings on June 14, 2006 at 10:00 a.m. and 11:30 a.m. respectively. During the meetings, Liquidators Alan Chung Wah Tang and Alison Wong Lee Fung Ying will present final accounts of the Company's wind-up operations. Contact: Alan Chung Wah Tang Alison Wong Lee Fung Ying Liquidators 13/F., Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong CHEUNG YAU: Members Final Meeting Fixed on June 28 -------------------------------------------------- The final general meeting of members of Cheung Yau Trading Company Ltd will be held at on June 28, 2006, at 10:00 in the morning. During the meeting, Liquidator Tam Shing Yan will present his final accounts regarding the Company's wind-up operations. Contact: Tam Shing Yan Liquidator Flat B, 1/F., Wing Shing House 355-359 Queen's Road West Hong Kong COMPANION MARBLE: Liquidator to Present Wind-up Report on June 3 ---------------------------------------------------------------- Members and creditors of Companion Marble Engineering Ltd will convene for their final meetings on July 3, 2006 at 10:00 a.m. and 10:30 a.m. respectively. During the meeting, Liquidator Ho Wai Ip will present his final accounts regarding the Company's wind-up operations. Contact: Ho Wai Ip Liquidator Room 1903, 19/F., World Wide House 19 Des Voeux Road Central, Hong Kong DASHIN SECURITIES: Members to Meet on June 21 --------------------------------------------- A final general meeting of members of Dashin Securities Ltd will be conducted on June 21, 2006, at 10:00 in the morning at Liquidator Lau Ho Man's office. During the meeting, the Liquidator will present final accounts of the Company's wind-up operations. Contact: Lau Ho Man Liquidator 16B, EIB Centre 40 Bonham Strand, Sheung Wan Hong Kong GRIFIT LIMITED: Official Liquidator Named ----------------------------------------- Members of Grifit Limited on May 17, 2006, appointed Yip Gin Fai as liquidator for the Company. Contact: Yip Gin Fai Flat A, 7/F., Golden Horse Mansion Mansion Street, North Point Hong Kong IDT INTERNATIONAL: Unable to Pay Dividends Due to Full-year Loss ---------------------------------------------------------------- IDT International has dived to a HKD263.4-million loss in the fiscal year ended March 31, 2006, from a HKD129.6-million profit a year ago, Infocast News reports. According to Infocast, the Company's turnover slumped 18% to HKD2.37 billion from HKD2.89 billion a year earlier. Because of this, IDT skipped paying final dividends to shareholders, who received five cents a share in the previous year. IDT said it cut prices to clear inventories in Europe where it has to comply with a new rule. The rule, which takes effect on July 1, 2006, restricts the use of certain hazardous substances in electrical and electronic equipment. Alfred Shao, IDT's financial controller said, "If you see the sales figures, the quantity doesn't change much, but the revenue declines because products are sold at lower prices". The firm had also been clearing inventory of MP3 and digital camera products in other markets, as it aimed to exit from the low-margin and price-competitive digital media products, Infocast relates. The expansion of its sales and market teams in overseas markets also incurred higher costs. "We have also closed some business and restructured some positions and departments that result in cost and expenses," Mr Shao said. "I can't say how good or bad the next financial year will be but we are expecting a recovery," he said, adding that the inventory clearance and restructuring process had ended. Further, rising oil prices and raw material and labor costs would affect earnings, while the rising yuan could put pressure on its gross margin, IDT told Infocast. * * * IDT International Limited -- http://www.idthk.com/eng/-- with a corporate head-office in Hong Kong, is engaged in the design, manufacturing, engineering, marketing and distribution of electronic lifestyle products that can be divided into four categories: LCD consumer electronic products; telecommunications products; digital media products and electronic learning products. The group's products are marketed worldwide to a broad customer base served by the 15 marketing and distribution subsidiaries in Europe (France, Germany, Italy, Spain and the United Kingdom); in the North America (the United States); in the Latin America (Brazil); and Asia Pacific (Australia, Japan, Singapore, Hong Kong and the People's Republic of China). INTER BUYING: Creditors Must Prove Debts by June 30 --------------------------------------------------- Liquidator Kong Chi How is receiving proofs of debt from the creditors of Inter Buying Services Ltd until June 30, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution the Company will make. Contact: Kong Chi How 25/F., Wing On Centre 111 Connaught Road Central, Hong Kong K & FUNG: Creditors' Proofs of Claim Due on June 30 --------------------------------------------------- Liquidator Wong Shing Kay requires the creditors of K & Fung Industry Company Ltd to submit their proofs of claim 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: Wong Shing Kay 17/F., Yam Tze Commercial Bldg 23 Thomson Road, Wanchai Hong Kong REFCO FOREX: Receiving Proofs of Debt Until June 9 -------------------------------------------------- Liquidators Kennic Lai Hang Lui and David Winterbottom of Refco Forex Ltd require the Company's creditors to submit their proofs of claim on or before June 9, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Kennic Lai Hang Lui 5/F., Ho Lee Commercial Bldg 38-44 D'Aguilar Street Central, Hong Kong TAI HE: Liquidator Steps Aside ------------------------------ On May 18, 2006, Ha Yue Fuen ceased to act as liquidator for Tai He Trading (H.K.) Limited. UNIQUE BUSINESS: Liquidators to Present Wind-up Report ------------------------------------------------------ Liquidators Alan Chung Wah Tang and Alison Wong Lee Fung Ying will present final accounts of Unique Business Service (China) Ltd's wind-up operations. The presentation will be made at the annual meetings of creditors and contributories of the Company on June 14, 2006 at 12:00 a.m. and 12:30 a.m. respectively. Contact: Alan Chung Wah Tang Alison Wong Lee Fung Ying Liquidators 13/F., Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong WAH SUN: Members Opt for Voluntary Liquidation ---------------------------------------------- Members of Wah Sun International Enterprise Ltd, at an extra ordinary general meeting held on May 16, 2006, passed a resolution to voluntarily wind up the Company and appoint Young Wai Ching as liquidator. Contact: Young Wai Ching 24/F., Prosperous Commercial Bldg 54-58 Jardine's Bazaar, Causeway Bay Hong Kong ========= I N D I A ========= HINDUSTAN CABLES: Government Junks Revival Plans ------------------------------------------------ The Union Government has formally ruled out revival plans for state telecom cable and wire manufacturer Hindustan Cables Limited, Business Standard relates. The Company may be sold off or closed down, as it is beyond redemption, the report says, citing Union Minister for Heavy Industries Santosh Mohan Dev. Hindustan Cables will be the only public sector undertaking in Kolkota that will be closed or divested this year. According to Hindu Line, the Company was referred to the Board for Industrial and Financial Reconstruction in 1998 when its net worth eroded to -53.22 and its accumulated loss reached INR460.44 crore. Apart from revival plans sanctioned by the BIFR, the Government on its own had formulated a restructuring plan for the Company. Hindustan Cables, established in 1952, has been a regular supplier of telecom cables to the Department of Telecom, Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd as well as to the Defense organizations. It has two units -- at Roopnarayanpur in West Bengal and another in Andhra Pradesh -- with a large township and extensive road network. HINDUSTAN PETROLEUM: Buys 40,000-tonne Fuel for June and July ------------------------------------------------------------- Hindustan Petroleum Corp Ltd, on May 31, 2006, purchased two 20,000-tonne lots of 92-octane gasoline from Vitol for June and July arrival via a tender at a lower premium than its last purchase, The Economic Times reveals. The state oil refiner bought the parcels at a premium of around US$8.00 a barrel to Singapore spot quotes, on a cost-and-freight basis, for delivery to the ports of Kandla and Mumbai, The Times says. Early this month, Hindustan Petroleum bought 20,000 tonnes of gasoline from Vitol at a premium of more than US$9.00 a barrel to Singapore quotes at cost-and-freight basis for end-May or early-June delivery to Kandla and Mumbai. About Hindustan Petroleum Corporation Mumbai-based Hindustan Petroleum Corporation Ltd -- http://www.hindustanpetroleum.com/-- was formed in 1974 on nationalization of ESSO India operations. The operations of Caltex were merged in 1976. With two refineries at Mumbai and Vizag, Hindustan Petroleum is currently is the second largest player in both the Indian oil sector as well as the highly competitive lubricants market. However, the Company has lately been incurring losses due to a government mandate to sell fuel at subsidized prices. The Company is counting on a Government bailout to save it from bankruptcy. LML LIMITED: Incurs INR26-Crore Net Loss in March 31 Quarter ------------------------------------------------------------ LML Limited posted a net loss of INR26 crore for the quarter ended March 31, 2006, as compared to a INR1.19-crore net profit in the corresponding quarter last fiscal year, the Company revealed in a statement to the Bombay Stock Exchange on May 30, 2006. The Company said its total income for the quarter ended March 31, 2006, increased 14.64% to INR65.85 crore from INR57.44 crore in the previous period. No further details were disclosed to the Stock Exchange. As reported by the Troubled Company Reporter - Asia Pacific on May 31, 2006, the Company's board decided to extend the current financial year, from 12 months to 18 months, subject to the requisite approvals. About LML Limited Headquartered in Uttar Pradesh, India, LML Limited manufactures two wheeler vehicles particularly scooters and spares and accessories. The Group's products include geared scooters, gearless scooters, motorcycles and mopeds. The Company has been incurring consecutive losses since 2004. As on March 31, 2005 LML had capacity to manufacture 0.45 million scooters and 0.18 million motorcycles per annum. During the 18 month period ended March 2005, LML reported turnover of INR5.97 billion and a net loss of INR956.06 million. The Company is currently in a restructuring mode -- for the second time in less than a year -- and is struggling to overcome working capital problems. Labor unrest and a lack of working capital have practically stopped production and dispatches at its sole Kanpur plant in the past few weeks. MYSORE CEMENTS: Fixes Book Closure in September ----------------------------------------------- Mysore Cements Limited's Register of Members & Share Transfer Books will be closed from September 16, 2006, to September 30, 2006, for the purpose of the Annual General Meeting of the Company. About Mysore Cements Limited Mysore Cements Limited, an S K Birla group company, was incorporated in technical and financial collaboration with Kaisers of the United States. Mysore Cements mostly manufactures ordinary and pozzolona varieties of portland cement. The company has plants in Karnataka and Madhya Pradesh and a grinding unit in Uttar Pradesh. The Company continues to be a sick industrial firm due to the continued complete erosion of its net worth. ================= I N D O N E S I A ================= PERUSAHAAN LISTRIK: Faces Upcoming Competition with SOFs -------------------------------------------------------- The Indonesian Government will propose to allow other state- owned firms to compete with state electricity company PT Perusahaan Listrik Negara in generating, transmitting and distributing power so as to provide cheaper rate for electricity to household and industrial consumers, the Jakarta Post reveals, citing a senior government official. The Post says that, according to the Energy and Mineral Resources Ministry's director general of electricity and energy, Yogo Pratomo, the proposal is already contained in the new electricity bill, which is set to be deliberated by the House of Representatives. Under the bill, the power industry will continue to be controlled by the state through state firms, Mr. Pratomo explained. Private sector firms will also be allowed to become involved in power generation, transmission and distribution, but will have to work together with designated state firms, he added. The Post relates that the power bill was passed in lieu of a 2002 Electricity Industry Law that was overturned by the Constitutional Court in December 2004 as it had promoted free competition in the power industry, which should be controlled by the state pursuant to the 1945 Constitution. Energy & Mining Commission chairman Agusman Effendi said that free competition should be introduced into the state, as this would attract investors to invest in the power industry and solve Indonesia's power crisis. However, PLN's finance director, Parno Isworo, said that the Government should tread lightly in this area, as free market competition has also thrown up failures. He suggested that if cost efficiencies were the main reason for introducing competition, then it would be better for Indonesia to adopt a centralized policy. * * * 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. A further report on May 5, 2006, stated that PLN president Eddie Widiono was arrested on allegations that he had marked up the funds used to buy a MD2500 generator for an electricity project in Borang regency in South Sumatra in 2004, which made the state suffer a IDR122 billion loss. ========= J A P A N ========= CHUOAOYAMA PwC: Loses Over 70 Clients in Accounting Scandal ----------------------------------------------------------- Over 70 listed firms have announced their plans to drop ChuoAoyama PricewaterhouseCoopers as their auditor in the aftermath of an accounting scandal involving the Company, Crisscross News says. The Troubled Company Reporter - Asia Pacific reported that on May 10, 2006, Japan's Financial Services Agency ordered the Company to suspend its operations and refrain from entertaining new clients in July and August 2006, as three of the Company's accountants admitted in March 2006 to falsifying the financial accounts of cosmetics firm Kanebo Limited, which had to restate its profits up to March 2004 as losses. According to the Japan Times, many of the firms that decided to stop availing of ChuoAoyama's services said that they would either take on the auditors of their parent firms, or not renew contracts that are due to expire. The firms said that they would employ Deloitte Touche Tohmatsu, Ernst & Young ShinNihon, or KPMG Azsa & Co. as their auditor. The reports indicate that it is highly likely that more of ChuoAoyama's clients, which total 2,300, would cancel existing contracts or refuse to renew them if the Company will not administer reforms. Major firms such as Nippon Steel Corp., Nippon Telegraph & Telephone Corp., Sanyo Electric Co. and Taisho Pharmaceutical Co., however, have decided to retain ChuoAoyama as their auditor, believing that the Company would implement the proper reforms to prevent a repeat incident of the accounting scandal. LIVEDOOR COMPANY: 110 Shareholders Seek JPY940 Million Damages -------------------------------------------------------------- Some 110 shareholders of Livedoor Company Limited filed a lawsuit against the Internet firm and its former president and director, Takafumi Horie, seeking JPY940 million in damages for losses caused when the firm's share prices plunged in the wake of an accounting scandal in January this year, Crisscross News reports. The shareholders claimed that they would not have bought the shares if Livedoor's financial report had been accurate to begin with. The Troubled Company Reporter - Asia Pacific reported that in January 2006, Mr. Horie, who is also the founder of Livedoor, and the other 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 instead show an inflated pre-tax profit of JPY5.03 billion. Moreover, Mr. Horie and the Company executives allegedly relayed false information on a merger, with the intent to boost the stock price of Livedoor's subsidiary, Livedoor Marketing Co. The TCR-AP further recounts that following the accounting scandal in January, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share, and was delisted from the Tokyo Stock Exchange on April 14, 2006. On April 26, 2006, the first batch of shareholders filed a suit against the Company to seek JPY2 billion in compensation for their investment losses. Kyodo News relates that another group of 100 shareholders plan to file a damages suit against the Company next month, as well as a group of 1,000 shareholders. The Securities and Exchange Law allows shareholders to file damages suits against a firm if they trade shares based on false information provided by the firm. The TCR-AP later reported that four ex-directors, two external accountants, and both Livedoor and Livedoor Marketing pled guilty to charges of accounting fraud and violating the Securities Exchange Law at their trial's first hearing on May 26, 2006. This while Mr. Horie denied the charges against him. 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. MITSUBISHI MATERIALS: S&P Lifts Unsecured Debt Rating to BB+ ------------------------------------------------------------ Standard & Poor's Ratings Services had on May 31, 2006, raised its long-term corporate credit rating on Mitsubishi Materials Corp. to 'BB' from 'BB-' and its senior unsecured debt rating on the company to 'BB+' from 'BB', on the Company's improved revenue base and stronger cash flow generation. Mitsubishi's improved revenue and stronger cash flow come from management's focus on its core cement, copper, and powder metallurgy products and tools businesses, as well as the streamlining of its weak businesses. The rating upgrade also indicates the Company's stronger financial profile due to its debt reduction. Standard & Poor's credit analyst Makiko Yoshimura said that Mitsubishi Materials' businesses are sensitive to external factors such as record copper prices and strong demand, as indicated by the solid performance of its copper smelting business in fiscal 2005 -- ended March 31, 2006, whereas earnings from aluminum cans in the same period deteriorated due to higher aluminum prices and fierce competition. In response, Mitsubishi Materials enhanced its business structure to balance lower profits in some segments with earnings from stronger areas. The Company plans to increase production capacity in its competitive core businesses by expanding its overseas operating base in businesses including cement and copper smelting. Mitsubishi Materials' profitability and free cash flow have improved, although still weak compared with its peers. Standard & Poor's expects Mitsubishi's debt-to-capital structure to improve in fiscal 2006, on the Company's continuing debt reduction efforts. Its ratio of funds from operations to total debt improved to 15.4% as of March 2006 from 11.6% a year earlier. Mitsubishi's recent active investments are not expected to increase its debt, and the ratio of FFO to total debt is expected to remain solid for the foreseeable future, given its stable cash flow generation. Mitsubishi's rating could improve if it continues to absorb the impact of businesses sensitive to market conditions, strengthen profitability, or improve its cash flow-related indicators and debt-to-capital structure via debt reduction. The Company's long-term senior unsecured debt rating is higher than its long- term issuer rating, since Standard & Poor's believes to a certain extent that any default by the Company would be a loan waiver instead of bankruptcy, as well as the lower likelihood of a default of long-term debt than that of bank borrowing. The debt rating also reflects Mitsubishi's business profile, low reliance on bank borrowings, and close relationship with its creditor banks. Headquartered in Tokyo, Mitsubishi Materials Corp. -- http://www.mmc.co.jp/english/-- was formed on Dec. 21, 1990, from the merger of two firms, Mitsubishi Metal Mining Company Limited and Mitsubishi Cement Limited. The Company's principal activity is the manufacture of metals and ceramics. MITSUBISHI MOTORS: To Recoup Losses Via New Marketing Strategy -------------------------------------------------------------- Mitsubishi Motors Corp. plans to return to profit in its Japanese operations within two years through a new marketing strategy, AFX News says. In the fiscal year 2005 ended March 31, 2006, the Company posted an operating profit of JPY6.8 billion against a JPY128.5 billion operating loss for the same period in 2004, on increased domestic sales and weaker local currency. Mitsubishi Motors sold 257,000 vehicles in Japan alone last year from 227,000 vehicles in 2004, but still fell short of its 2000 sales, which reached almost 450,000 vehicles. XFN-Asia relates that the Company will put up a domestic sales network capable of selling up to 300,000 vehicles, in order to meet its target to sell 302,000 vehicles in 2006. According to Mitsubishi Motors president Osamu Masuko, they will focus on promoting sales of existing cars, since they will not release new models in the first half of this year. The Company, which is currently under rehabilitation, is expecting to post a net profit of JPY8 billion for its global operations, on revenues of JPY2.23 trillion. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The Company also operates consumer-financing services and provides this to its customer base. Mitsubishi's problems stem, in part, from the scandal surrounding years of systematically covering up auto defects and ill-advised auto lending policies in the United States. Mitsubishi Motors appeared to be turning around for a few years under an alliance with DaimlerChrysler AG, but the German automaker withdrew additional financing in 2004. Since then, Mitsubishi Motors has received massive cash infusions from the Mitsubishi group of companies, including a bank, machinery maker and trading company, to support revival efforts. Mitsubishi adopted the 'Mitsubishi Motors Revitalization Plan' on January 28, 2005, as its 3-year business plan covering fiscal 2005 through 2007. The main objectives of the plan are 'Regaining Trust' and 'Business Revitalization.' * * * According to an April 28, 2006 report by the Troubled Company Reporter - Asia Pacific, Mitsubishi Motors reported an 81% drop in its net loss for the fiscal year 2005 ended March 31, 2006, to JPY92.2 billion, from a JPY474.8 billion loss the previous year. The report states that according to Mitsubishi, the loss was attributed to special restructuring costs, including a re evaluation of its property. Sales also fell slightly to JPY2.12 trillion last year, from JPY2.122 trillion in 2004. However, the Company expects to return to profit this year on an increase in worldwide shipments, with sales expected to reach JPY2.23 trillion. =============== M A L A Y S I A =============== CONSOLIDATED FARMS: Given Chance to Avert Delisting --------------------------------------------------- Bursa Malaysia Securities Berhad is giving Consolidated Farms Board five days from May 26, 2006, to explain why the Company's securities should not be delisted from the Bourse's Official List. As reported by the Troubled Company Reporter - Asia Pacific on May 31, 2006, the Bourse has decided to suspend Consolidated Farms' securities effective June 5, 2006, until further notice as the Company has failed to regularize its financial condition within the prescribed timeframe stipulated by Bursa Malaysia Securities Berhad pursuant to the Listing Requirements. The Bourse may commence delisting procedures against the Company if it fails to meet the requirement. About Consolidated Farms Berhad Headquartered in Kuala Lumpur, Malaysia, Consolidated Farms Bhd -- http://www.confarm.com/-- is engaged in poultry farming which includes operating of breeder farm, production and processing of organic fertilizer, feed milling and manufacturing and sale of egg trays. Other activities include manufacturing and processing of eggs into pasteurized eggs and de-shelled hard-boiled eggs. The Company is a Practice Note 4 concern currently undergoing a restructuring exercise to address its debt problem. The company had appointed Deloitte KassimChan Business Services Sdn Bhd as advisor for the restructuring exercise. Consolidated Farms was mired with MYR122-million debt on account of its expansion plan, which included the purchase of equipment and facilities. As of March 31, 2006, Confarm said that it will not be able to settle all its debts in full when they fall due within the next 12 months and hence, the Company is unable to provide a solvency declaration. FURQAN BUSINESS: 6th AGM Slated for June 20 ------------------------------------------- Furqan Business Organization Berhad will hold its Sixth Annual General Meeting at Hibiscus Function Room, Swiss Garden Hotel, in 117 Jalan Pudu, Kuala Lumpur, on June 20, 2006, at 9:00 a.m. During the meeting, members will be asked to: -- receive and adopt the Company's audited financial statements for the year ended December 31, 2005, together with the Directors' and Auditors' reports; -- re-elect Lim Hong Sang, Lim Teik Wee and Chin Yok Koon as directors; -- approve the payment of Directors' fees of MYR48,000 for the year ended December 31, 2005; -- consider, and if thought fit, approve the re-appointment of Deloitte KassimChan as the Company's auditors to hold office until the conclusion of the next annual general meeting; -- authorize the directors to issue shares in the Company, subject always to the approval of all the relevant regulatory bodies being obtained for such allotment and issue; and -- transact any other business for which due notice will have been given. About Furqan Business Organization Berhad Headquartered in Kuala Lumpur, Malaysia, Furqan Business Organization Berhad formerly known as Austral Amalgamated Berhad is engaged in property development and investment, tour and travel services, and financial services. Other activities include contractor, leasing and hire purchase financing facilities. The Group's operations are substantially carried out in Malaysia. The Company's weak business prospects have taken their toll on Furqan Business' financial position as its operating cash flow has persistently remained in negative since December 31, 2002. Rating Agency Malaysia has downgraded the rating of the Company's MYR37.66 million Redeemable Convertible Loan Stocks, from BB3 to B1, with a negative outlook. At the same time, the rating agency is maintaining the Rating Watch on the Company, pending further clarification on its recent corporate exercise to acquire a 7%-stake in the Cepatwawasan Group. The downgrade is premised on the deterioration in Furqan's business profile, especially in its leasing business, which is currently the main revenue contributor to the Group. KIG GLASS: Cessation of Operations Trims Revenues ------------------------------------------------- KIG Glass Industrial Berhad has, on May 29, 2006, filed with the Bursa Malaysia Securities Berhad its financial report for the first quarter ended March 31, 2006. The Group recorded lower revenues of MYR2.95 million for the current quarter ended March 31, 2006, as compared to MYR16.7 million in the same quarter last year. The decrease was due to the fact that the Company and its subsidiary, Zibo Jiali Glass Industry Co. Ltd had both ceased production operations. However, the Group recorded a lower loss before taxation of MYR1.71 million for the quarter under review as compared to MYR7.10 million in the same period last year. The lower loss was mainly attributable to: -- the deconsolidation of the Company's loss making subsidiary, Zibo Jiali Glass Industry Co.; and -- lower depreciation charge due to recognition of impairment losses on property, plant and equipment in the last financial year ended December 31, 2005. The Group's turnover decreased to MYR2.95 million for the current quarter as compared to the MYR9.18 million in the preceding quarter. Loss before taxation decreased to MYR1.71 million as compared to MYR62.45 million in the preceding quarter. The decrease is largely due to the significant expenses incurred, which consist of: -- the write-down of inventories of the Group amounting to MYR6.9 million; and -- the impairment loss on plant and equipment including buildings of the Group amounting to MYR47.1 million. As of March 31, 2006, the Company's balance sheet showed strained liquidity with MYR139,222,000 in total current liabilities exceeding MYR13,987,000 in total current assets, resulting in a net current deficit of MYR94,699,000. No dividend has been paid or declared since the end of the previous financial year. The scale of losses incurred by the Company over the years had significantly eroded its share capital base. Moreover, its current net liability position has demonstrated the Company's lack of working capital to support its existing operations. In view of these, the Company's directors are compelled to protect the long-term interests of the shareholders and creditors, to prevent delisting of the Company. Due to insolvency, the company has recently been classified under Practice Note 17. Accordingly, the directors are of the opinion that the prospects for the rest of the year are not expected to improve. 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 2,948 16,678 2,948 16,678 * Profit/(loss) before tax -1,706 -7,101 -1,706 -7,101 * Profit/(loss) after tax and minority interest -1,706 -7,101 -1,706 -7,101 * Net profit/(loss) for the period -1,706 -6,318 -1,706 -6,318 * Basic earnings/(loss) per shares (sen) -1.05 -3.88 -1.05 -3.88 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End -0.5809 -0.5705 The Company's First Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_kigglass053106.xls http://bankrupt.com/misc/tcrap_kigglassnotes053106.pdf About KIG Glass Industrial Berhad Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due its inability to pay its debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders' funds of the KIG Group was in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. To this end, KIG Glass announced its status as an affected listed issuer pursuant to Practice Note 1/2001 and Practice Note 17/2005 of the Listing Requirements. MALAYSIA AIRLINES: Posts MYR309.118-Mln Pre-tax Loss in 1Q/FY06 --------------------------------------------------------------- Malaysia Airlines posted a pre-tax loss of MYR309.118 million for the first quarter ended March 31, 2006, as against a pre-tax profit of MYR112.017 million in the same quarter of 2005, a Company filing at the Bursa Malaysia Securities Berhad showed. The Company's revenue, however, rose to MYR2.970 billion in the current quarter to MYR2.964 billion in the previous corresponding quarter. Malaysia Airlines said its passenger revenue, including fuel surcharge and administration fee and excess baggage charge, increased to MYR2,151 million in the first quarter of this year from MYR2,096 million in the same quarter last year. This was due to 14% yield improvement from 19.8 sen/revenue per kilometre in last year's first quarter to 22.6 sen/RPK this year. The Company has also improved its cargo yield by 12% sen/load tonne kilometre and load factor increased by one percentage point to 60.2%. Cargo revenue, including fuel surcharge, rose by 4.0%. However, capacity dropped by 9.0% as two freighters were removed from its fleet between the first quarter of fiscal 2005 and 2006. For the second quarter, Malaysia Airlines said that it is taking delivery of two new 747 400S Boeing freighters, which the airline said are the right aircraft for cargo operations and should improve profitability in term of fuel efficiency and load. The national carrier said its cost reduction efforts have also been showing encouraging results. By stopping advertising and sponsorship, it has reduced cost by MYR74 million. Staff cost also reduced by MYR80 million due to various measures in flight cost, including catering, was reduced by MYR11 million through wastage card and renegotiations of contracts. Maintenance cost was also reduced by MYR54 million, the airline said. Month-on-month expenditure showed a reduction with MYR1.2 billion in January, MYR1.1 billion in February and MYR1 billion in March. On a monthly basis in the first quarter, the losses were MYR184 million in January and MYR143 million in February, but a profit of MYR7.0 million was delivered in March. The Company's balance sheet as of March 31, 2006, however showed strained liquidity with MYR4,913,488,000 in total current liabilities exceeding total current assets of MYR3,328,129,000, resulting in a net current deficit of MYR1,585,359,000. The Company's First Quarter Report is available for free at: http://bankrupt.com/misc/tcrap_malaysiaairlines053106.pdf About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, and MYR616 million for the nine-month ended Dec. 31, 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion in order to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. METROPLEX BERHAD: Court Limits Provisional Liquidator's Role ------------------------------------------------------------ A wind-up petition had been served on Metroplex Berhad on April 26, 2005, by the solicitors of Morgan Stanley Emerging Markets Incorporated, the Troubled Company Reporter - Asia Pacific recounts. Morgan Stanley is claiming payment of US$7,126,960 for the credit facilities granted by a syndicate of lenders to Legend International Resorts Limited, whose obligations were guaranteed by Metroplex Berhad. In relation to the petition, Morgan Stanley had also filed summons for the appointment of a provisional liquidator for Metroplex. On May 11, 2006, the Kuala Lumpur High Court made an order appointing a provisional liquidator over Metroplex Holdings and had adjourned the matter to May 16, 2006, to finalize the terms of the order, the TCR-AP reported. In an update, the Court, on May 23, 2006, decided not to grant any order pertaining to the appointment of a provisional liquidator for Metroplex Holdings. Instead, the Court issued an order to appoint Kuan Mei Ling of RSM Nelson Wheeler Teo Corporate4 Advisory Services Sdn Bhd as Metroplex Berhad's provisional liquidator. The appointment, however, is limited to the extent of Mertoplex Berhad's 100% equity interest in Metroplex Holdings and the sale of the Putra Place property to Lembaga Kumpulan Wang Simpanan Pekerja for the purposes of ascertaining the disposal alternatives of the Property. The Provisional Liquidator has been directed by the Court to: -- preserve and protect Metroplex Berhad's shareholdings in Metroplex Holdings and the Putra Place Property; -- commission any valuation reports as to the value of any of the Putra Place Property and that the costs of such valuation report be paid by Metroplex Berhad; -- solicit bids from interested parties for the purchase by such parties of the Putra Place Property on the most favorable terms possible in all of the circumstances and prevailing market conditions. Moreover, the Court has issued an injunction restraining Metroplex Berhad and Metroplex Holdings from completing the sale of the Putra Place Property or any part thereof without the prior approval of the Court on June 27, 2006, provided the two companies shall be at liberty to take all steps preparatory to the completion of the sale of the Putra Place Property. The appointment of Provisional Liquidator will not have immediate financial and operational impact on Metroplex Group. However, it may affect Metroplex Holdings' Proposed Disposal of Putra Place, which in turn may hinder Metroplex Berhad's Proposed Restructuring Scheme as the Proposed Disposal of Putra Place Property forms part of the Proposed Scheme. 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. NOVA MSC: Releases Fourth Quarter Results ----------------------------------------- Bursa Malaysia Securities Berhad had, on May 28, 2006, received NOVA MSC Berhad's audited financial results for the fourth quarter ended March 31, 2006. The Group recorded revenue of MYR3 million and loss before taxation of MYR7.4 million for the quarter under review compared to revenue of MYR1.4 million and loss before taxation of MYR11.1 million for same quarter last year. The higher revenue achieved was due to higher contribution from the Group's existing order book. In line with the higher revenue recognized, the loss before taxation for the current quarter under review improved by 33% mainly due to lower operating loss arising from the higher revenue recognition from its existing order books and lower amortization charge, though partly offset by the higher allowance for foreseeable loss of MYR3.8 million and allowance for impairment of intangible assets of MYR2.4 million. The revenue of MYR3 million achieved in the current quarter under review was comparable to that achieved in the preceding quarter ended December 31, 2005. The Group recorded a loss before taxation of MYR7.4 million as compared to a loss before taxation of US$2.7 million in the preceding quarter mainly due to additional allowance for foreseeable loss of MYR3.8 million and allowance for impairment of intangible assets of MYR2.4million. The Group ended the current fourth quarter with an order book of MYR12.8 million as compared to MYR13.7 million as at the end of immediate preceding quarter. The majority of the order book consists of e-government contracts. As of March 31, 2006, the Company's balance sheet showed strained liquidity with MYR11,810,000 in total current assets available to pay MYR21,129,000 in total current liabilities coming due within the next 12 months. The Company's net current deficit is MYR9,319,000. No dividend has been 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 3,039 1,424 14,679 10,171 * Profit/(loss) before tax -7,379 -11,103 -9,824 -19,668 * Profit/(loss) after tax and minority interest -7,386 -9,932 -9,831 -18,504 * Net profit/(loss) for the period -7,386 -9,932 -9,831 -18,504 * Basic earnings/(loss) per shares (sen) -2.63 -3.88 -3.67 -7.23 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End 0.0500 0.0900 The Company's Financial Report is available for free at: http://bankrupt.com/misc/tcrap_novamsc053106.pdf About Nova MSC Berhad Headquartered in Kuala Lumpuer, Malaysia, Nova MSC Berhad -- http://www.novamsc.com/-- provides application software and services for both the government and healthcare sectors. The Company also assists clients in selecting the appropriate software and/or hardware technology, which include specific functionalities and features. Each solution comprises a number of modules, which can be implemented separately or integrated to closely support the business processes of its clients. It also provides a range of professional services to complement its application software, such as consultancy, training and customization of the application software to cater to specific requirements. As of March 31, 2006, the Company suffers liquidity crunch as its MYR21.2 current liabilities exceed its current assets of MYR11.8 million. PILECON ENGINEERING: Suffers MYR3.5-Mln Loss in First Quarter ------------------------------------------------------------- Pilecon engineering Berhad, on May 26, 2006, filed with the Bursa Malaysia Securities Berhad its financial report for the first quarter ended March 31, 2006. During the quarter under review, the Group recorded a turnover of MYR3.6 million with operating loss before share of profits from associated companies of MYR5.8 million. The loss is due to lower turnover recorded attributable to delayed property launched and continued high finance cost. The Group's turnover for the quarter ended March 31, 2006, is lower as compared to MYR6.3 million in the fourth quarter ended December 31, 2005. The Group's loss before tax of MYR3.6 million for the quarter under review is also lower as compared to loss before tax of MYR40.8 million in the fourth quarter of 2005. The lower loss is due to provisions made in fourth quarter of 2005 for bad debts and allowance for write down of inventories. Net loss for the quarter under review is MYR3.6 million and basic loss per share is 0.89 sen. There was no dividend recommended for the quarter under review. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR575,611,000 and total liabilities of MYR559,710,000. The Company's March 31 balance sheet also showed strained liquidity with MYR252,609,000 in total current assets available to pay MYR558,523,000 in total current liabilities coming due within the next 12 months. The Company's directors are of the opinion that the performance of the Group for the current financial year remains challenging. 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 3,595 14,924 3,595 14,924 * Profit/(loss) before tax -3,601 -2,427 -3,601 -2,427 * Profit/(loss) after tax and minority interest -3,554 -2,384 -3,554 -2,384 * Net profit/(loss) for the period -3,554 -2,384 -3,554 -2,384 * Basic earnings/(loss) per shares (sen) -0.89 -0.60 -0.89 -0.60 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End 0.0400 0.0500 The Company's First Quarter Report is available for free at: http://bankrupt.com/misc/tcrap_pileconengineering053106.xls About Pilecon Engineering Berhad Headquartered in Selangor Darul Ehsan, Pilecon Engineering Berhad is engaged in building construction and civil engineering works. The Company is also involved in trading and hiring of plant and equipment for foundation engineering and civil engineering works. It also undertakes resort operation and complex management services. The Group operates in Malaysia, Hong Kong and Singapore. The Company is currently undergoing a MYR354-million debt-restructuring exercise. The scheme, however, was placed in jeopardy following the Securities Commission's rejection of an inter-conditional proposal to acquire a piece of land in Johor at a cost of MYR75 million. The Commission also rejected the Company's scheme of arrangement with certain secured creditors. POLYMATE HOLDINGS: Malayan Banking Slaps MYR10-Million Claim ------------------------------------------------------------ Polymate Holdings Berhad and its wholly owned subsidiary, ABI Malaysia Sdn Bhd, were served with a Writ of Summons and Statement of Claim dated May 18, 2006, by Malayan Banking Berhad. Malayan Banking is asserting a MYR10,014,145 claim as of December 31, 2005, and an annual default interest of 10% from January 1, 2006, to the date of the full settlement of the claim. In addition, Malayan Banking is also asking payment for solicitor and client costs, and other relief that the Kuala Lumpur High court deems fit. About Polymate Holdings Berhad Headquartered in Selangor Malaysia, Polymate Holdings Berhad -- http://www.polymate.com.my/Hprofile_html.htm-- is engaged in the manufacturing and marketing of lead acid batteries for the automotive and related industries. It is also engaged in the manufacturing and dealing of plastic articles and products, corrugated carton boxes and related products, manufacturing and trading of door closers and trading of building materials, investment holding and provision of corporate and financial support services. The Group operates in Malaysia, Australia, New Zealand and Europe. Polymate Holdings is in the process of working out possible plans to regularize its condition. Operations in its subsidiaries will be revived when a workable restructuring scheme is formalized with its lenders and when fresh working capital can be injected into the operations. On April 28, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a total fine of MYR84,000 on Polymate Holdings Berhad for breach of the Bourse's Listing Requirements. This was followed by another public reprimanded on May 26, 2006. Meanwhile, Polymate says that it is still negotiating with its lenders to restructure the Group's credit facilities and is working on various schemes to regulate its financial position. SUGAR BUN: Disposes of GYNA Stake to Curb Losses ------------------------------------------------ Sugar Bun Corporation Berhad together with MultiRev Sdn Bhd have, on May 26, 2006, entered into a Sale of Share Agreement with Gloharta (M) Sdn Bhd for the disposal of their entire shareholdings in GYNA of 1,590,000 ordinary shares. The GYNA Shares will be disposed of at MYR1 each for a net consideration of MYR3.738 million. Out of this amount, MYR1.857 million is the net consideration attributable to Sugar Bun's 790,000 ordinary shares. GYNA has a fully paid up share capital of MYR1,590,000 made up of 1,590,000 ordinary shares of MYR1 each. It is principally engaged in the business of operating and managing an island resort which it owns in Pulau Gaya , Sabah. MultiRev has a 50.3% interest in GYNA, while Sugar Bun has 49.5%. Based on the audited accounts of GYNA as of Dec. 31, 2005, the net consideration for the Sale Shares MYRM3.74 million. The sale consideration was arrived at based on a willing buyer willing seller basis and after taking into consideration the weak financial position of GYNA as reflected in its Dec. 31, which shows a deficit shareholder's fund of MYR9.3 million, continuing losses and a cash flow deficit. The disposal enables Sugar Bun to reorganize its Group structure and assets. The continued holding of such investment will only contribute further losses to the Group. Inability on the parts of the shareholders to advance or inject further fund to GYNA for expansion, its required refurbishment and the necessary working capital will only deteriorate further the state and condition of the resorts and thus the resultant losses to the Group. About Sugar Bun Corporation Bhd Sugar Bun Corporation Bhd -- http://www.sugarbun.com/-- is engaged in the operation and franchising of restaurants, bakeries and confectioneries. Its other activities include general trading of machinery, spare parts and phone cards, investment holding and provision of administrative, management and marketing services. Operations of the Group are carried out mainly in Malaysia. The Company is currently reorganizing the Group's overall structure in a bid to curb losses it accumulated in the past. The Company is employing various policies formulated to streamline the Group's operations including cost cutting measures. With the corporate exercises in place, Sugar Bun Corporation is expected to recover this year. TENAGA NASIONAL: Lists and Quotes ESOS Shares --------------------------------------------- Tenaga Nasional Berhad's additional 2,733,375 new ordinary shares were granted listing and quotation on May 30, 2006. The shares were issued at MYR1 each pursuant to the Company's Employees' Share Option Scheme. About Tenaga Nasional Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad -- http://www.tnb.com.my/-- is engaged in the generation, transmission, distribution and sale of electricity. The Company also manufactures, sells and repairs transformers and switchgears. It is also involved in provision of project management, consultancy, engineering works, contracting, trading, risk management, risk surveys, insurance, research and development, property management, energy project development and investment holding services. It also undertakes repairs and maintenance of motor vehicles. The Group operates in Malaysia and Mauritius. The Company is currently undertaking liability management exercises, which are expected to extend the Company's debt maturity profile and reduce refinancing risk. Moody's gave the Company a 'Ba' rating due to the Company's relatively high financial leverage and significant PPA obligations, accounting for approximately 42% of total operating costs in FY2004. TRU-TECH HOLDINGS: Faces Trading Suspension ------------------------------------------- Bursa Malaysia Securities Berhad, on May 26, 2006, decided to suspend trading in the securities of Tru-Tech Holdings Berhad from June 5, 2006, as the Company has failed to regularize its financial condition pursuant to the Bourse's Listing Requirements. The Company has been given five days from May 26 to explain why its securities should not be removed fro the Official List of Companies. About Tru-Tech Holdings Berhad Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings Berhad's principal activity is the manufacturing of electronic components and products. Its other activities include development and distribution of switch-mode power supplies and investment holding. The Group operates in Malaysia, Singapore, United States and United Kingdom. On May 27, 2004, Tru-Tech announced a series of proposed corporate exercises to address its losses. These include the incorporation of a new entity as Tru-Tech's holding company, and the disposal of its existing contract-assembly business to a third party. Much of Tru-Tech's future performance will hinge on its ability to restructure its debts and resolve its poor liquidity. WEMBLEY INDUSTRIES: Books MYR18.43-Million Loss in First Quarter ---------------------------------------------------------------- Wembley Industries Berhad, on May 29, 2006, filed with the Bursa Malaysia Securities Berhad its financial report for the first quarter ended March 31, 2006. For the quarter under review, the Group reported losses of MYR18.43 million compared with a loss of MYR43.86 million for the preceding quarter ended December 31, 2005. The losses were mainly due to a provision for impairment of development properties amounting to MYR27.54 million, otherwise there are no other major incurrence of losses with reference to last quarter's results. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR422,729,000 and total liabilities of MYR1,214,178,000, resulting in a MYR791,749,000 stockholders' equity deficit. The Company's March 31 balance sheet also showed strained liquidity with MYR415,545,000 in total current assets available to pay MYR1,214,178,000 in total current liabilities coming due within the next 12 months. The Company's accumulated losses as of March 31, 2006, have reached MYR1,063,555,000. There was no dividend payment and no dividends are recommended or have been declared during the financial quarter and year to-date ended March 31, 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 0 0 0 0 * Profit/(loss) before tax -18,426 -14,564 -18,426 -14,564 * Profit/(loss) after tax and minority interest -18,426 -14,564 -18,426 -14,564 * Net profit/(loss) for the period -18,426 -14,564 -18,426 -14,564 * Basic earnings/(loss) per shares (sen) -12.75 -10.08 -12.75 -10.08 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * As at end of As at Preceding Current Quarter Financial Year End -5.4800 -5.3500 The Company's First Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_wembleyindustries053106.pdf http://bankrupt.com/misc/tcrap_wembleyindustriesnotes053106.pdf About Wembley Industries Holdings Berhad Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a developer of commercial properties and investment holding. Its other activities are the development of the inter- state bus and taxi terminal, the retail podium and the budget hotel. The Company has been placed under the Practice Note 4 category due to its tight cash flow position. On January 7, 2003, Malaysia's Foreign Investment Committee approved the Company's regularization plan. Subsequently, on April 7, 2003, the FIC revised its approval to include the possible participation of Daewoo Corporation, the former turnkey contractor of Plaza Rakyat Project in the Company's Proposed Debt Restructuring. The Company's ability to go on as a going concern hinges on the successful implmentation of the Scheme. ===================== P H I L I P P I N E S ===================== ATLAS CONSOLIDATED: Turns Around With PHP85 Million Net Income -------------------------------------------------------------- Atlas Consolidated Mining and Development Corporation posted a turnaround for the year ending December 31, 2005, with a consolidated net income of PHP85.45 million, against a net loss of PHP322.89 million recorded for the financial year 2004, the Troubled Company Reporter - Asia Pacific has found out from the Company's latest annual report submitted to the Philippine Stock Exchange. The Company attributes this net income to a gain booked on the disposal of its construction subsidiary, amounting to PHP499.96 million, as compared to a loss of PHP52.23 million in 2004. Consolidated revenues for the period was down 61.16% to PHP43.88 million from the PHP112.97 million earned in 2004. Atlas Consolidated Mining and Development Corporation Consolidated Financial Highlights (in PHP millions) For the year ending 12/31/2005 12/31/2004 ---------- ---------- Current Assets 50.91 15.69 Current Liabilities 4,668.12 3,645.60 Total Assets 1,783.12 1,849.95 Total Liabilities 4,818.01 3,849.85 Capital Deficiency 3,034.89 1,999.90 Net Income 85.45 (322.89) Revenues 43.88 112.97 Expense 454.40 423.33 Atlas Consolidated's financial report for the year ending December 31, 2005, is available for free at: http://bankrupt.com/misc/AT_17A_Dec2005.pdf Auditor Raises Doubt on Parent Company's Going Concern Jaime F. Del Rosario, of Sycip Gorres Velayo, the Company's independent auditor, has expressed a significant doubt on the Company's ability to continue as a going concern. Mr. Del Rosario cited these factors: * Atlas Consolidated's parent company incurred significant cumulative losses amounting to PHP10.699 billion in 2005 and PHP10.324 billion in 2004; * As of December 31, 2005, and 2004, the total current liabilities exceeded the total current assets by PHP4.458 billion and PHP3.117 billion; and * The total liabilities exceeded the total assets, resulting to a capital deficiency of PHP2.996 billion and PHP1.660 billion as of December 31, 2005, and 2004. Atlas Consolidated Mining and Development Corporation Financial Highlights for Parent company (in PHP millions) For the year ending 12/31/2005 12/31/2004 ---------- ---------- Current Assets 19.26 9.66 Total Assets 1,630.30 1,593.60 Current Liabilities 4,476.63 3,126.44 Total Liabilities 4,626.52 3,253.95 Capital Deficiency 2,996.22 1,660.35 Net Loss 377.50 266.55 Revenues 37.81 113.64 Expense 411.32 419.90 About Atlas Consolidated Headquartered in Mandaluyong City, Philippines, Atlas Consolidated Mining and Development Corporation was established through the merger of assets and equities of three pre-war mines, the Masbate Consolidated Mining Company, IXL Mining Company and the Antamok Goldfields Mining Company. The Company is engaged in mineral and metallic mining and exploration that primarily produces copper concentrates and gold with silver and pyrites as major by-products. The Company's copper mining operations are centered in Toledo City, Cebu, where two open pit mines, two underground mines and milling complexes are located. The Cebu copper mine ceased operations in 1994 after a typhoon hit the province in 1993 and caused flooding and a muck rush of the underground facilities. Activities after the shutdown were limited to safeguarding and maintaining the property, plant and equipment at the minesite. The closure has brought huge losses to the mining firm. The Company's revenues are currently derived mainly from rental of some of its idle assets and from proceeds from sale of scrap and excess materials. In January 2004, Atlas decided to rehabilitate the company and its assets at the earliest possible time since copper and nickel prices have recovered. Recently, a feasibility study to reopen the Cebu mine was completed and the Company is presently in negotiations to raise the necessary finance to commence rehabilitation. The study concluded that the reopening of the Toledo mines was viable. On February 23, 2006, the TCR-AP reported that Atlas signed an agreement with Crescent Asian Special Opportunities Portfolio, which would buy part of the Company's debts convertible into stock, and would invest PHP1.69 billion into Carmen Copper Corporation in exchange for a 34% stake. For now, the Company said that it will continue, through its debts-for-equity swap agreement with Alakor Corporation, to reduce its liabilities and debts to manageable levels. It also intends to rationalize its asset portfolio, including a possible sale of obsolete and unproductive assets. Moreover, a re- evaluation of the feasibility of re-opening the Toledo Copper mine will continue, and negotiation to raise project funding for the re-opening will be progressed. BENGUET CORPORATION: Forex Drives Down Net Loss By Almost 60% ------------------------------------------------------------- Benguet Corporation's consolidated net loss for the three months ended March 31, 2006, amounted to PHP19.93 million, 58.79% lower than the PHP48.36 million net loss for the same quarter in 2005, the Troubled Company Reporter - Asia Pacific learns from the Company's financials submitted to the Philippines Stock Exchange. According to the Company, the lower net loss for the first quarter was mainly due to foreign exchange gain of PHP78 million, 168.97% higher than the PHP29.38 million forex gain in the first quarter last year. The higher forex gain is attributable to the appreciation of the Philippine peso against the United States dollar. The Company's operating results also showed that consolidated revenue fell to PHP65.27 million for first quarter of 2006 from the PHP95.21 million operating revenue for 2005, due mainly to lower sales of chromite to 1,611 DMT this quarter from 5,866 DMT for the same period last year. Cash-Tight Situation For the first three months of 2006, Benguet Corporation says that it continued to be in a cash-tight situation. The Company intends to continue to dispose of its non-performance assets, improve its production volume of gold and chromite products to generate adequate cash to meet its operating cash requirement. The Company foresees improvement in its cash flow for the second quarter this year, as the price of metals continued to rise and the Masinloc Chromite Operation continued to get order of chrome ore from Canada and Mexico. The Company's asset disposal activities this quarter generated revenues of PHP2.30 million from the sale of non-performing assets in the form of equipment, materials and supplies, and scrap. The Company's consolidated financial report for the first quarter reflects these key figures: Benguet Corporation Consolidated Financial Highlights (in PHP millions) As of As of 03/31/2006 12/31/2005 ---------- ---------- Current Assets 310.66 329.08 Total Assets 3,213.53 3,212.58 Current Liabilities 3,865.10 3,808.01 Total Liabilities 4,909.26 4,663.20 Capital Deficiency 1,695.73 1,650.63 Quarter Ending 03/31/2006 03/31/2005 ---------- ---------- Operating Revenue 65.270 95.207 Net Loss 19.93 48.36 Benguet Corp's financial report for the three months ended March 31, 2006, is available for free at: http://bankrupt.com/misc/BCB_17Q_Mar2006.pdf About Benguet Corporation Benguet Corporation -- http://www.benguetcorp.com/-- was organized to primarily engage in gold mining. It expanded into chromite and copper production, and then into the fields of general engineering and industrial construction, agriculture, shipping, banking and finance, real estate and forestry-based ventures. Today, after restructuring its diversified operations and consolidating its resources following the turbulent financial climate of the 90s, the Company has transformed itself into a total natural resource development and services Company. Alongside its core business of mining and mineral exploration, the Company and its subsidiaries are actively engaged in water projects, real estate development, forest management and eco- tourism, while maintaining interests in allied industries such as steel casting, trucking and warehousing, trading, engineering and construction services. Debt Repayment Plan On June 11, 1999, Benguet Corporation reached an agreement with its creditor-banks on the repayment of its outstanding loans. A Term Sheet was signed extending the maturity of your Company's loan up to June 30, 2000, with automatic renewal every anniversary up to the year 2002, upon payment of annual interest. The Company was able to settle major portions of the interest due on June 30, 2000, through a combination of cash and Tax Credit Certificates. For June 30, 2001, and June 30, 2002, the Company wrote the banks and offered to settle the annual interest due on 2001 and 2002. In its letter to the banks dated October 3, 2002, the Company requested for additional time to settle its obligations pending its formal entry into the Baguio Bulk Water Project. As of March 31, 2006, loans subject to the repayment plan are equal to PHP1.7 billion. MANILA ELECTRIC: Seeks to Return to Power Generation ---------------------------------------------------- Utility firm Manila Electric Company is interested in going back to power generation after it sold off most of its electricity generation businesses over 30 years ago, and is looking to acquire certain plants of state power firm National Power Corp., the Philippine Star relates. Meralco Chief Executive Officer Manuel Lopez said that the Company's board decided to return to the power generation business and is considering undertaking Greenfield projects or acquiring National Power's geothermal assets that are up for sale. Specifically, the Company is interested in Napocor's 660- megawatt geothermal plant in the Tiwi-Makban area in Manila, as well as a 112-megawatt hydropower plant in northern Pantabangan- Masiway area, the Philippine Inquirer says. Mr. Lopez added Manila Electric is conducting due diligence separately from its affiliates First Gas Corp. and First Gen Corp., which are bidding for Napocor assets, as well, according to the Star. Meralco president Jesus Francisco said that the Company plans to use its unit Meralco Energy Inc. as an investment vehicle to bid for Napocor's assets, although there is no specific date for the Company's reentry in to the power generation business, adding that it would depend on the Government's approval of retail power competition and open access, which lets industrial power consumers choose their suppliers. The Philippine Star reports that Meralco Energy sold its electric facilities management business to focus on energy services last year, and was tasked with reviewing the possible purchase of Napocor power generation assets handled by the Power Sector Assets and Liabilities Management Corp. Meralco Energy has submitted and bought bidding documents from PSALM in order to bid for Napocor's power plants, and is slated to complete the bidding process by the end of 2006. Manila Electric posted a PHP300 million income last month, after a PHP748-million net loss for the first quarter from January to March this year, signaling a possible turnaround, according to Mr. Lopez. The Company expects sales volume to rise by 2.8% from 0.6% last year with the opening of new shopping malls, the Inquirer writes. As of Dec. 31, 2005, Manila Electric's assets totaled PHP164.34 billion. The Company, whose total outstanding loans amount to PHP15 billion payable within seven years, needs to set aside around PHP2 billion per year to settle its debts the Philippine Star reveals. Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. * * * A March 31, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the Company posted a 79.7% decrease in its 2005 net losses to PHP411 million from PHP2.03 billion in 2004, due to provisions for probable losses while awaiting a Supreme Court final decision on a pending unbundling rate case, and the adoption of new accounting standards. The TCR-AP further stated on April 27, 2006, that the Company filed a report with the Philippine Stock Exchange, indicating a 66.1% decline in its net loss from January to March 2006 to PHP748 million, against a PHP2.2 billion loss for the same period last year. According to a TCR-AP report on April 24, 2006, Manila Electric cannot seek a loan to expand its facilities unless it repays outstanding short-term debts amounting to around PHP4.7 billion. PHILCOMSAT HOLDINGS: Clarifies "Trick-SEC" Reports -------------------------------------------------- On May 24, 2006, the Philippine Stock Exchange asked Philcomsat Holdings Corporation to clarify reports that it duped the Philippine Supreme Court and the Sandiganbayan on the status of actual government control in the Company, and that it has "foisted a disclosure trick" over the PSE. Philcomsat Assistant Corporate Secretary Delfin Angcao clarifies that Philcomsat is not a party to any case pending before the Supreme Court and the Sandiganbayan, and has not submitted any pleading regarding government control in the Company. Therefore, there is no truth to the statement saying that the Company has duped both the Supreme Court and the Sandiganbayan. Moreover, the May 24, 2006 edition of Cocktales, a regular business column appearing in the Philippine Daily Inquirer, reported in part that: "Instead of a mere slap on the wrist, the SEC imposed a PHP274,000 fine on the Malacanang-led board of Philcomsat Holdings. The SEC belatedly discovered that Philcomsat Holdings had failed to disclose in its 2004 annual report that its chairman at the time, Benito 'Bomboy' Araneta, is a nephew of its current president, the ailing 90-year-old Manuel Nieto. The acting chairman, the Malacanang- nominated Enrique Locsion, who has allied himself with Araneta, is appealing the SEC fine." Mr. Angcao also clarified that it was Philcomsat Vice President Philip Brodett -- not Mr. Locsin -- who requested a reconsideration of the PHP274,000 fine. * * * Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc., -- was incorporated on May 10, 1956. During the 70s and early 80s when the country experienced a boom in geophysical and drilling activities both offshore and onshore, Philcomsat Holdings was one of the active participants in search of oil. The Company has since withdrawn from oil exploration because there was no commercial discovery of oil. On January 10, 1997, the Company approved amendments to its Articles of Incorporation, changing its primary purpose from embarking in the discovery, exploitation, development and exploration of mineral oils, petroleum in its natural state, rock or carbon oils, natural oils and other volatile mineral substances to a holding company. According to a Troubled Company Reporter - Asia Pacific report on May 18, 2006, Philcomsat Holdings has not declared dividends for the past two fiscal years. For the year ended Dec. 31, 2005, Philcomsat Holdings generated PHP62.3 million gross income, against PHP67.31 million in 2004, whereas its 2005 interest from money market placements amounted to PHP60.10 million, compared to PHP64.30 million in 2004. According to the Company, falling interest rates and its investment in Telecommunications Center, Inc., contributed to the decrease in interest income. It also incurred realized foreign exchange loss of PHP4.08 million in 2005, against a PHP0.89 million gain the previous year. The Company did not pay management fees and amortization of deferred creditors for the years 2003 to 2005. Philcomsat Holdings Corp. has not held an annual stockholders' meeting since 2004, when Manuel Nieto Jr. and his nephew, Benito Araneta, were elected to the board of directors. Mr. Nieto is president of Philcomsat, while Mr. Araneta is chairman of the board. Company shareholder Victor Africa had accused the Nieto group of using company funds and corporate manipulations to retain their positions in Philcomsat. A report by the Philippine Star relates that Mr. Nieto did not recognize the proxy presented by Mr. Africa at the Company's 2004 meeting, and prevented him from voting 81% Philcomsat shares in the election. Mr. Nieto and Mr. Araneta reportedly refused to hold an annual stockholders' meeting in May last year, prompting stockholders to seek intervention by the SEC. The SEC ordered Philcomsat to hold a stockholders' meeting on April 17, 2006, to enable shareholders to decide whether to let the Nieto group stay on to manage the Company. The Nieto group countered with a proposal to hold the meeting on April 18, 2006, which excluded the election of the Board and extended their term as board members. The SEC rejected the counterproposal and ordered the Company to hold a shareholders' meeting on May 4, 2006. Shareholders had voted to extend Philcomsat Holdings' corporate life by another 50 years under current management, winning over minority shareholders who had wanted Mr. Nieto out of the Company. A later TCR-AP report on May 17, 2006, stated that the SEC has opted to delay its decision on when Philcomsat should hold its annual stockholders' meeting, as it has been ordered to submit a report of the Supreme Court decision on the Company's confiscated shares. PHILIPPINE NATIONAL BANK: Releases ASM Results ---------------------------------------------- Philippine National Bank has elected a new set of directors at its Annual Stockholders' Meeting on May 30, 2006, the Troubled Company Reporter - Asia Pacific learns from a Company disclosure to the Philippine Stock Exchange. The new directors, to serve for a period of one year, are: 1. Virgilio R. Angelo 2. Florido P. Casuela 3. Domingo T. Chua 4. Omar Byron T. Mier 5. Feliciano L. Miranda, Jr. 6. Eric O. Recto 7. Washington Z. SyCip 8. Lucio C. Tan 9. Ricardo M. Tan 10. Florencia G. Tarriela 11. Macario U. Te Ms. Tarriela, Mr. Miranda, Mr. Casuela, Mr. SyCip and Mr. L. Tan are independent directors. PNB also announced the appointment of Sycip Gorres Velayo and Company as its external auditor. The Shareholders also amended the Bank's by-laws. At the organizational meeting of the Board of Directors immediately following the Annual Shareholders' Meeting, Ms. Tarriela was elected as Chairman of the Board, while Mr. Mier was elected Vice Chairman and President. Other officers and their new posts are: * Sylvia Chan-Lim - Treasurer * Renato J. Fernandez - Corporate Secretary * Alvin C. Go - Chief Legal Counsel * Cris S. Cabalatungan - Internal Auditor * * * 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. 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. 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 by 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. 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 TELEGRAPH: Forex Drives Net Loss Up to PHP696.14 Mln --------------------------------------------------------------- In a financial report submitted to the Philippine Stock Exchange, Philippine Telegraph & Telephone Corporation posted net operating revenues of PHP312.52 million for the quarter ending March 31, 2006. The result was a PHP55.843 million or 15% decrease from the PHP368.37 million recorded for the corresponding period in 2005, attributed to the decrease in traditional revenues. The Company's cost reduction programs pushed down costs and expenses for the 2006 quarter to PHP309.15 million, which is a PHP55.26 million decrease from 2005's PHP364.42 million. Consequently, the loss from operations also decreased by 6% or PHP34.51 million. Net loss, however, increased by PHP2.21 million, to PHP696.14 in the first quarter 2006 from the PHP693.92 million in the first quarter in 2005, due to a foreign exchange loss recorded within the period. PT&T's financial report for the quarter ended March 31, 2006, reflects these key figures: Philippine Telegraph & Telephone Corporation Financial Highlights (in PHP millions) As of As of 03/31/2006 06/30/2005 ---------- ---------- Current Assets 670.11 651.80 Total Assets 8,885.28 9,386.59 Current Liabilities 1,693.34 1,575.58 Total Liabilities 1,841.75 1,724.53 Total Equity 7,043.53 7,662.05 03/31/2006 06/30/2005 ---------- ---------- Financial Ratios: Debt to Equity Ratio 0.26 0.23 Current Ratio 0.40 0.41 Quarter Ending 03/31/2006 03/31/2005 ---------- ---------- Net Loss 696.14 693.92 Revenues 312.52 368.37 Expense 309.15 364.42 About PT&T The Company's first quarter report is available for free at: http://bankrupt.com/misc/PTT_17Q_Mar2006.pdf Philippine Telegraph & Telephone Corporation -- http://www.ptt.com.ph/-- has grown through the years to become the Philippines' dominant record carrier and leading provider of leased voice and data channels. It offers a comprehensive package of telecom services ranging from telephony to high-speed voice, data and sophisticated video technologies. The Company operates a nationwide telecommunication network, which includes more than 400 retail outlets throughout the country for telegraphy and long distance telephony. Although telegraphy, like telex services which the Company dominated in the 70s and 80s, is perceived as a "sunset" product, variations are continuously being developed and introduced, such as gift- accompanied social telegrams; money transfers; and very recently, e-business derivatives like "e-Sulat" and "e-Store" in the new Click & Call stations. Trading Suspension PT&T is listed with PSE for the trading of the common shares but requested voluntary suspension of trading effective December 13, 2004. Tax Liabilities The Company had applied for compromise settlement of its tax liabilities of about PHP434 million. In a letter dated March 30, 2005, the company had offered a payment plan to the Bureau of Internal Revenue. PT&T's management believes that the Company's liquidity position will be improved if the proposed compromise settlement for tax liabilities, which is a significant portion of the current liabilities, is accepted by the BIR. The Company's management has likewise made certain recommendations to its lender- shareholders, who now comprise the majority ownership interest in the Company due to the concluded debt restructuring program, for the strengthening of the Company's stockholders equity. Debt Restructuring The Company's management has been authorized by its Board of Directors to entertain potential funders/investors, including those recommended by the creditors, for the Company's major project, which also involves strengthening of its financial condition. Preliminary data and information are being supplied to those who have executed confidentiality agreements so that they can conduct their initial evaluation. The Company has likewise been informed be certain creditors that they have been approached by interested parties. However, the Company is not privy to matters being discussed among them although further developments which may be relevant to all creditors are being awaited. The holding of the regular annual stockholders' meeting is still held in abeyance pending submission to the Securities and Exchange Commission and the Philippine Stock Exchange of the Company's audited financial statements for the fiscal years ending June 30, 2004 and 2005. As explained to the SEC under the Company's request for temporary exemptive relief, certain matters have yet to be resolved in order to satisfy the requirements of its external auditor, SGV & Co. UNITED PARAGON: PHP68.54 Net Loss for 1Q 2006 --------------------------------------------- United Paragon Mining Corporation posted a net loss of PHP68.54 million for the first quarter ended March 31, 2006, as compared to the PHP63.83 million net loss in the same quarter in 2005. The Company states that the PHP4.716 million or 7.4% increase in net loss was substantially due to the increase in interest and financing charges, slightly reduced by foreign exchange gain and lower general and administrative expenses and depreciation. More Debt While total assets decreased by PHP2.084 million -- from PHP1.125 billion as of December 31, 2005, to PHP1.123 billion as of March 31, 2006 -- total current liabilities increased from PHP2.214 billion as of December 31, 2005, to PHP2.280 billion as of March 31, 2006, mainly due to additional loans and advances amounting to PHP2.643 million from related companies and accruals of interests and financing charges amounting to PHP65.815 million. Of the increase in loans and advances from related companies, PHP2 million was used to pay the Company's loan from Rizal Commercial Banking Corporation while the balance of PHP0.643 million was used for care taking expenses and partial payment of creditors accounts. Capital Deficiency and Illiquidity Due to the suspension of mining and milling operations and limited sources of funds, the Company failed to meet payments within the stated terms to majority of its suppliers, contractors and creditors. However, the Company has reduced significantly the balance of its outstanding accounts with suppliers, contractors and other creditors from PHP248.30 million in 1999 to PHP163.70 million as of March 31, 2006. Capital deficiency increased from PHP1.14 billion as of Dec. 31, 2005, to PHP1.21 billion as of March 31, 2006, due to the net loss of PHP68.542 million for the period. The Company is in the process of finding a strategic partner/investor to help finance the amount required for its planned rehabilitation and further development of its Longos Mine. The Company is contemplating on securing US$17 million to US$20 million financing and US$5 million to US$8 million in equity to fund the planned rehabilitation and reopening of the Longos Mine. The Company's financial report for the quarter ended March 31, 2006, reflects these key figures: United Paragon Mining Corporation Financial Highlights (in PHP millions) As of As of 03/31/2006 12/31/2005 ---------- ---------- Current Assets 51.65 52.64 Total Assets 1,123.03 1,125.12 Current Liabilities 2,280.44 2,213.98 Capital Deficiency 1,210.91 1,142.36 Quarter Ending 03/31/2006 03/31/2005 ---------- ---------- Net Loss 68.54 63.83 United Paragon's financial report for the period ended 2006, is available for free at: http://bankrupt.com/misc/UPM_17Q_Mar2006.pdf About United Paragon Mining United Paragon Mining Corporation is engaged in the exploration, development, exploitation, production and sale of gold. It came into existence in 1990 as a result of the merger between United Asia and Geothermal Resources and Abcar Paragon Mining Corporation, a privately owned company whose principal assets are the Longos Gold Mine and other gold exploration claims and agreements. Substantial Doubt on Going Concern Ricardo G. Manabat of Laya Mananghaya & Co. expressed substantial doubt about United Paragon's ability to continue as a going concern after auditing the Company's 2005 Annual Report. Mr. Manabat cited that: * The Company has been continuously incurring net losses and has accumulated deficit of PHP2.029 billion as of December 31, 2005, resulting to a capital deficiency of PHP1.089 billion and working capital deficiency of PHP2.161 billion as of December 31, 2005; * The Company's Board of Directors authorized the suspension of its Main Shaft's rehabilitation and development in the last quarter of 1998 until appropriate financing for its further development becomes available. Likewise, the underground Shaft 4 mining operations were discontinued to avoid further losses and to preserve the remaining reserves for future extraction from the Main Shaft at a profitable level and a retrenchment program for its employees was commenced; and * The Company's prospects are also currently affected by the general slowdown in the economy characterized by volatile foreign currency exchange rates, and declining stock prices. Mr. Manabat believes that these factors, among other matters, cause significant uncertainties that affect the Company's ability to resume and achieve a profitable level of operations, enhance recoverability of its assets such as, but not limited to, the deferred mine exploration and development costs, the capitalized underground development and exploration costs, the capitalized mine and mining properties and the plant and equipment, and its ability to raise the required finances and pay its debts as they mature. The Plan of Operations 1. The Company will implement the Capital Restructuring program this year subject to the approval of creditor-related companies, the Securities and Exchange Commission and Philippine Stock Exchange, Inc. The Board of Directors and stockholders at their meetings held on April 12, 2004, and July 30, 2004, respectively, approved the Company's capital restructuring, to improve its current ratio, debt ratio, debt-to-equity ratio and capital deficit. The Company has delayed the implementation of this restructuring due to the proposal to change the par value of its common shares from PHP0.50 (as decreased) to PHP0.01 per share, which will be incorporated in the applications to be filed to the SEC and the PSE. On April 20, 2006, the Board of Directors of the Company approved a resolution to change the par value of its common shares from PHP0.50 (as decreased) to PHP0.01 per share with the corresponding increase in number of shares. This will be presented to the stockholders for approval on July 28, 2006. 2. The Company will continue to dispose of scrap, obsolete and excess assets to raise additional funds to help in financing the cash requirements for the year. 3. The Board of Directors has approved a resolution to secure additional loans and advances from related companies to fund the cash requirements for the year. 4. The Company will continue with its exploration and drilling activities to increase the ore reserves upon receipt of mineral production sharing agreement from the government on the target areas. 5. The Company will continue the care taking and maintenance of the mine property until such time that financing for the rehabilitation and further development of its mineral properties and upgrade of the mill becomes available. Loan Restructuring On March 1, 2000, RCBC, the creditor bank of the US dollar- denominated loan, approved the take-out of the loan by a major stockholder under certain conditions. Under the terms of the Company's agreement with RCBC, the US dollar-denominated loan was converted to a Philippine Peso loan in the amount of PHP31 million payable in three annual installments up to December 27, 2002. The related interest on this loan which is payable monthly starting April 28, 2000, is computed at 15% for the first year subject to review and negotiation for the succeeding years. The agreement was amended in 2003 and 2004 and further amended in 2005 principally with respect to the repayment terms of the loan. The 2005 agreement provides for the extension of the loan repayment up to June 30, 2006, with interest subject to monthly repricing. Average interest rate during the year is 17% (2004 - 16.67%). Loan payable as of December 31, 2005 and 2004 amounted to PHP3.3 million and PHP8.1 million, respectively. Interest for this loan during the year amounted to PHP882,777 (2004 - PHP2,349,224). ================= S I N G A P O R E ================= ACCORD CUSTOMER: Kim Eng and CIMB-GK Underwrite Rights Issue ------------------------------------------------------------ Accord Customer Care Solutions Limited, on May 30, 2006, inked an agreement for Kim Eng Securities Pte Limited and CIMB-GK Securities Pte Limited to underwrite the Company's rights issue. Pursuant to the underwriting agreement, Kim Eng and CIMB-GK have agreed to subscribe and procure subscribers for the Rights Shares which are not validly subscribed and applied for at the close of the Rights Issue. This amounts to an aggregate of between 364,356,547 Rights Shares and 370,671,047 Rights Shares. The Underwriting Agreement is conditional, inter alia, upon: * the approval of the Shareholders for the Rights Issue being obtained at the extraordinary general meeting of the Company to be held on May 31, 2006; * none of the representations, warranties or undertakings contained in the Underwriting Agreement being untrue, incorrect or breached, such as to significantly and adversely affect the completion of the Rights Issue; and * the lodgment of the Offer Information Statement with the Authority in accordance with the provisions of the Act on or before June 21, 2006. The Underwriting Agreement is subject to termination at any time before the Shares trade ex-rights upon the occurrence of certain force major events. Proceeds from the Rights Issue Meanwhile, the use of proceeds from the Rights Issue will be amended, as disclosed here: The estimated net proceeds of the Rights Issue are expected to be between approximately SGD19.83 million and approximately SGD20.08 million. Up to SGD15.08 million, representing approximately 75.1% of the maximum net proceeds of the Rights Issue, will be used for the Group's current working capital purposes, of which approximately SGD8.00 million and approximately SGD7.08 million will be allocated to the Group's distribution and retail services and after-market services business segments, respectively. The balance of up to SGD5.00 million, representing approximately 24.9% of the maximum net proceeds of the Rights Issue, will be allocated for capital expenditure for the Group's AMS business segment in the region, including, inter alia, the setting up of additional service centers, entering into strategic investments, alliances, joint ventures, acquisitions and other capital expenditure. The Company is currently in negotiations with its lenders to restructure its financial obligations. As part of the negotiations with the lenders, these obligations are intended to be repaid out of the proceeds from the Company's recovery of its investments in non-operational assets. As the timing of receipt of proceeds from the recovery is dependent on, inter alia, stock market conditions and conclusion of negotiations, the Company may be required to use up to SGD5 million, representing approximately 24.9% of the maximum net proceeds from the Rights Issue to repay its lenders, if necessary. The Company is also currently in negotiations with Nokia Pte Ltd for the settlement of in-warranty claims and intends to repay such settlement with proceeds from the recovery of its investments in non-operational assets. In the event the Company reaches a settlement with Nokia and proceeds from the recovery of the Company's investments in non-operational assets are not received in time to be utilized for payment of the settlement amount, up to SGD2.50 million, representing approximately 12.5% of the maximum net proceeds from the Rights Issue will be used to pay the settlement amount to Nokia. About Accord Customer Care Solutions Accord Customer Care Solutions -- http://www.accordccs.com/-- is the leading provider of after market services for consumer mobile communication and digital electronic devices in Asia Pacific. ACCS is a spin-off from supply network solutions provider Accord Express Holdings Pte Limited. ACCS provides a wide spectrum of after market services to both its trade partners and end consumers. ACCS provides professional, efficient and convenient services to its end consumers by establishing one-stop single brand or multi-brand proximity centers that are conveniently and strategically located. ACCS has been posting consecutive losses since the first quarter of 2005 due to bad investments, when it incurred a net loss of SGD3.79 million. Meanwhile, 12 of its former executives are facing an ongoing case over a cheating scam involving mobile phone giant Nokia. The executives were accused of falsifying phone repair claims to cheat Nokia out of SGD4.3 million. They were also charged with falsifying financial documents and overstating profits. The Company is currently in negotiations with its lenders to restructure its financial obligations. As part of the negotiations with the lenders, repayment of these obligations is intended to be repaid out of the proceeds from the Company's recovery of its investments in non-operational assets. The timing of receipt of proceeds from the recovery is dependent on stock market conditions and conclusion of negotiations. INFORMATICS HOLDINGS: Net Losses Cut by 68% for the Full Year ------------------------------------------------------------- Informatics Holdings Ltd slashed its net losses by 68% or SGD48.4 million from SGD71.2 million in fiscal year ended March 31, 2005, to SGD22.8 million in fiscal year ended March 31, 2006, as it made great strides in restructuring its operations. The decisive measures taken by the Group to restructure, rationalize and consolidate its operations has led to a SGD11.4 million or 27% saving in staff cost and a SGD37.8 million or 45% reduction in other operating expenses in fiscal year 2005. The huge cost savings derived from the restructuring measures have more than covered the impact from the decrease in Group revenue from SGD74.7 million to SGD57.0 million. The revenue drop was due mainly to the deconsolidation of Cornerstone, a subsidiary disposed on March 22, 2005, which recorded SGD14.7 million in revenue last year. A revenue decline of SGD3.9 million was recorded in Malaysian operations due to consolidation of operations and tightening of revenue recognition practice. However, some decreases were offset by the revenue growths shown in the school operations in Singapore and Hong Kong and the validating and awarding operations in the United Kingdom. Informatics has also made great strides in improving its accounting practices. During the year, its course fee revenue recognition practice was further tightened up. As a result, fees received in advance increased by SGD6 million or 49% to SGD18.2 million. The Group's balance sheet reflected an increase in the net liability position of SGD14.8 million as of March 31, 2006, against a net liability of SGD11.1 million as of March 31, 2005. However, excluding the deferred course fee revenue, the Group's balance sheet would have shown a net asset position with an improvement of SGD2.4 million from SGD1.1 million as of March 31, 2005, to SGD3.5 million as of March 31, 2006. Such improvement was mainly due to the increase in issued and paid up capital via a rights issue which raised SGD19.6 million gross proceeds during the year. Overall, the Group's operations in Singapore and Malaysia have stabilized and are continuing to improve. Its operations in Hong Kong and the United Kingdom recorded the best results in terms of both revenue and profit for the last five years. The Group has successfully maintained its strong fundamentals across-the-board, even though the educational sector remains challenging. Going forward, the Group will continue to focus its effort on revenue growth through product development, new market penetration and strategic partnerships. These initiatives will be complemented with improvements in financial and operational management control systems. Underpinning these efforts will be the Group's strict adherence to best practices in corporate and academic governance. To pursue these strategies and strengthen its financial position, the Group may consider raising fresh capital at an appropriate time. The Company's Financial Report is available for free at: http://bankrupt.com/misc/tcrap_informaticsholdings053106.pdf About Informatics Holdings Limited Informatics Holdings Ltd -- http://www.informatics.edu.sg/-- was established in 1983, in response to Asia's economic growth fostering tremendous demands for skilled Information Technology manpower and knowledge-based workers to build and sustain the rapid economic development in the region. Informatics' core business activities are training and education, IT-related services and franchise operations. Informatics was at the center of a scandal that began in mid- April 2004 when it admitted that it has overstated profits and understated costs for the nine months ended December 2003 in its quarterly financial statement. The scandal started a string of losses for the education services provider. Informatics Holdings, however, managed to cut its losses for the fourth successive quarter in its third-quarter financial results for the fiscal year 2006. Due to continued financial support from majority shareholder Berjaya and efforts to sell non-core assets, Informatics holdings hopes to get back to black by continuing to increase revenue and control costs. The Company is currently looking into agreements with underwriters on an earlier proposed rights issue, in order to raise working capital. SYSTEM MANAGEMENT: Creditors Must Prove Debts by June 26 -------------------------------------------------------- Creditors of System Management Arts (Singapore) Pte Limited are required to file their proofs of debt to Liquidator Lim Lee Meng on or before June 26, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. System Management is in members voluntary liquidation. Contact: CHEE YOH CHUANG LIM LEE MENG Liquidators 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 KAY-ASIA SERVICES: Creditors' Proofs of Claim Due on June 16 ------------------------------------------------------------ Kay-Asia Services Pte Limited, which is in voluntary liquidation, requires its creditors to submit their proofs of claim to Liquidator Zalinah Samade on or before June 16, 2006. Failure on the creditors part to comply with the requirement will exclude them from sharing in any distribution the Company will make. Contact: Zalinah Samade Liquidator c/o IP Consultants Pte Ltd 50 Robinson Road #15-00 MNB Building Singapore 068882 YUMEI ENGINEERING: Court Releases Bankruptcy Order -------------------------------------------------- The Supreme Court of Singapore had, on May 5, 2006, issued a bankruptcy order against Yumei Engineering Services. Contact: Audrey Lim Senior Assistant Registrar Supreme Court, Singapore =============== T H A I L A N D =============== BANK OF AYUDHYA: Moody's Puts E+ Fin'l Strength Rating on Review ---------------------------------------------------------------- Moody's Investors Service has placed the E+ bank financial strength rating of Bank of Ayudhya Public Co Ltd on review for possible upgrade while its Baa3/Prime-3 deposit ratings are unaffected, and their stable outlook is maintained. Leo Wah, Moody's lead analyst said the review would consider Bank of Ayudhya's: -- recovery to positive economic solvency; -- its continued ability to internally generate capital through sustained core earnings and; -- the bank's pre-provision profits, underpinned by net interest income, which have been picking up over the past few years. According to Moody's, the Bank's outstanding warrants, which are currently deep in the money and will expire in August 2008, are likely to be exercised, further strengthening the bank's capital base. Higher capital levels would allow Bank of Ayudhya to increase provisions against non-performing loans and write off bad debts more aggressively, leading to a healthier balance sheet. Moody's added that the bank's balance sheet is now among the weakest in Thailand, with its 14% NPL ratio and 33% loan loss reserve both significantly worse than the average of 10% and 74% respectively for rated commercial banks in Thailand. Mr. Wah relates that on balance, the bank's improved creditworthiness from its previously weakened state puts upward pressure on the bank financial strength rating but in the longer-term due to the slow pace of these positive developments. Recently, Bank of Ayudhya signaled its intent to seek an investor. The impact of any such transaction on the bank's credit standing and thus, ratings will be examined should it emerge, where a material capital injection would be strong ratings positive, Mr. Wah adds. Moody's also says that it is maintaining its stable outlook for Bank of Ayudhya's deposit ratings, and which already incorporate the support, if needed, most likely from the Thai government. KRUNG THAI: Moody's Upgrades Financial Strength Rating to D- ------------------------------------------------------------ Moody's Investors Service on May 30, 2006, has upgraded Krung Thai Bank's bank financial strength rating to D- from E+ while the bank's debt and deposit ratings, which were not on review, are unaffected. Moody's says that the outlooks on all ratings are now stable. This rating action concludes the review announced on March 28, 2006. Leo Wah, Moody's Assistant Vice President/Analyst, relates that the upgrade reflects: -- the bank's progress in restoring its balance sheet, in particular its economic solvency and; -- the vast improvement the bank has achieved in risk management Moody's further explained that despite the tightening of non- performing loans classifications over the past few years, KTB has managed to maintain positive economic solvency and meet all regulatory capital adequacy standards. Having improved its risk management over the last several years thanks to the efforts by bank management, KTB in Moody's opinion should be able to secure steady earnings without making substantial provisions for new NPLs in the future. Further, Moody's expects KTB's regulatory capital and economic solvency to continue to improve as a result, although the pace may be slow and Moody's estimate of economic solvency may stay at low single-digit percentages of risk-weighted assets for a couple of years. "Without a significant injection of capital, KTB will continue to rely on internal resources to reduce NPLs and increase its loan loss reserves," says Mr. Wah, adding, "It needs to quickly remedy these areas to secure ratings similar to other large Thai banks." KTB's loan loss reserve amounted to 41% of NPLs, significantly lower than the 77% average for other large Thai banks. Its pace of NPL reduction -- 11% versus 10% -- over the long term may lag behind its counterparts given the bank's slow accumulation of capital, partly attributable to its relatively high dividend payout of 40%. As such, KTB lies at the low end of its "D-" peers. For future rating actions, Moody's will focus on the following developments: 1. how quickly KTB can build up its economic solvency to a relatively more comfortable solvency level, like 4% to 6%; 2. whether NPL reductions and loan loss reserve accumulation achieve levels comparable to other large Thai banks; 3. if KTB's risk management can continue to improve; and 4. how far it can free itself from any policy role. At the same time, the rating agency does not expect these developments to change KTB's risk profile substantially over the next couple of years; hence the stable outlook. These ratings were unaffected: Krung Thai Bank -- Foreign currency deposit ratings of Baa1 and Prime-2. The rating outlook is stable. Krung Thai Bank, Singapore branch -- Foreign currency deposit note and subordinated debt of Baa1 and Baa2 respectively. The rating outlook is stable. PRASIT PATANA: First Quarter NR Cuts 55% Off Current Liabilities --------------------------------------------------------------- Prasit Patana Public Company Ltd on May 15, 2006, submitted to the Stock Exchange of Thailand its first quarter financial report ending March 31, 2006. The Company and its subsidiaries, based on the financial statement audited by Vairoj Jindamaneepitak of KPMG Phoomchai Audit Ltd, generated THB963.83 million in net operational revenue for the three-month period ended March 31, 2006, as compared with the THB834.75 million operational revenue for the three-month period ended March 31, 2005, an increase of THB129.08 million. Because of this the Company pulled down its total current liabilities posted at THB10,228 on December 31, 2005, to THB4,525 as of March 31, 2006. However, the consolidated financial report of the Company and its subsidiaries showed an increase in total current liabilities coming due with in the next 12 months to THB798,620 on March 31, 2006, from THB763,566 on December 31, 2005. The Company and its subsidiaries attributed this to the increase of cost of services for each of the three-month period ended March 31, 2006, and 2005 were THB687.80 million and THB600.12 million, respectively -- an increase of THB87.68 million. Further, general and administrative expenses of the company and its subsidiaries for each of the three-month period ended March 31, 2006 and 2005 were THB193.15 million and THB139.03, an increase of THB54.12 million. * * * Prasit Patana Public Company Limited -- http://www.phyathai.com/ -- operates Phaya Thai I II and III Hospitals, Phaya Thai Sriracha Hospital, Phaya Thai Phuket Hospital, Phaya Thai Ubon Hospital and Ake Udon Hospital. The Company also operates three Universities, one of which as a joint venture with the Dulwich College of the United Kingdom. The Company also has diversified its business into hotel operations. The Company has first entered into the REHABCO, or Companies Under Rehabilitation Sector in 2001. That year, the Company had a THB676.02 million net loss and a THB10.02 billion capital deficit, which steadily declined to reach THB1.13 billion in 2004. On September 29, 2003, Thailand's Central Bankruptcy Court ordered that the rehabilitation plans of the Company and certain subsidiaries that had entered into the rehabilitation process in 2001 be terminated. However, the termination of the rehabilitation plans was contested with an appeal filed with the Supreme Court. The Supreme Court subsequently decided on July 29, 2005, that the Bankruptcy Court's order for the termination of the rehabilitation plans be revoked, on the ground that the Order had not been deliberated on all points of contention. The Supreme Court also directed the Bankruptcy Court to conduct further enquiry to arrive at a new decision. Subsequently, the Company and the subsidiaries re-entered the rehabilitation process under its previous plan administrator. The management believes that Prasit Patana's re-entry into the rehabilitation process and the subsequent retrial to deliberate on the points of contention will not affect the Company's and its subsidiaries' on-going operations. It is currently under the REHABCO Sector of the Thailand Stock Exchange. ********* 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***